Citation : 2023 Latest Caselaw 12924 Mad
Judgement Date : 21 September, 2023
W.P(MD)No.1164 of 2019
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 21.09.2023
CORAM:
THE HONOURABLE MR.JUSTICE BATTU DEVANAND
W.P.(MD)No.1164 of 2019
D. Usharani. ...Petitioner
Vs.
The Director,
The Gandhigram Institute of Rural Health
and Family welfare Trust,
Soundaram Nagar,
Ambathurai,
Gandhigram Post – 624 302,
Dindigul District. ....Respondent
Prayer: Writ Petition is filed under Article 226 of the Constitution
of India, seeking for the issuance of Writ of Mandamus directing
the respondent I.e., the Director of the Gandhigram Institute of Rural
Health and Family Welfare Trust, Gandhigram, Dindigul District to
take immediate action to disburse the Encashment of Leave Salary to
the petitioner within a specified time frame that may be fixed by this
Court.
1
https://www.mhc.tn.gov.in/judis
W.P(MD)No.1164 of 2019
For Petitioner : Mr.Ram Sundar Vijayaraj
For Respondent : Mr.V.Karthikeyan
for Mr.M.Vijaya Shankar
ORDER
Heard the learned counsel for the petitioner and the learned
counsel appearing for the respondent and perused the record.
2. The learned counsel for the petitioner submits that the
petitioner was allowed to retire on attaining the age of
superannuation on 31.03.2017 while she was serving as the
Superintendent in the respondent Trust.
3. The grievance of the petitioner is that encashment of
leave salary has not been settled on the ground that criminal
proceedings and departmental proceedings are pending. In fact, the
criminal case ended in acquittal by judgment dated 26.10.2018 by
the learned Judicial Magistrate, Dindigul. The departmental
https://www.mhc.tn.gov.in/judis W.P(MD)No.1164 of 2019
proceedings are still pending. After attaining superannuation, the
petitioner received all other benefits except encashment of leave
salary.
4. The learned counsel for the petitioner contends that it is
a settled law that encashment of leave salary is property of an
employee and it cannot be denied by the employer. In the light of the
settled preposition of law, the learned counsel submits that the
petitioner is entitled for payment of encashment of leave salary. The
petitioner made a representation on 08.12.2018 requesting to settle
the same. As there was no action from the respondent, the present
Writ Petition has been filed.
5. The learned counsel for the respondent basing on the
counter affidavit contends that against the order of acquittal of the
Judicial Magistrate, Dindigul, the respondent filed a Criminal
Revision Petition and it is pending. He further contends that till the
https://www.mhc.tn.gov.in/judis W.P(MD)No.1164 of 2019
disposal of the Criminal Revision Petition, the petitioner is not
entitled to seek Earned Leave encashment. Is is also the contention
of the respondent that for the past 10 years, on account of severe
financial crunch, the Board of Trustees of the respondent institute at
its Board meeting resolved to keep in abeyance the payment of
Earned Leave enchashment to its employees. Therefore, for the past
3 years, all employees who retired have not been sanctioned Earned
Leave encashment. It is also contended that a policy decision has
been taken by the governing body of the respondent trust to keep in
abeyance the Earned Leave to its employees. As such, the petitioner
is not entitled to seek Earned Leave encashment and sought to
dismiss the Writ Petition.
6. Having heard the submissions of the respective counsels
and on careful examination of the materials available on record, the
relationship of the petitioner with the respondent trust as its
employee and the date of the superannuation of the petitioner are not
https://www.mhc.tn.gov.in/judis W.P(MD)No.1164 of 2019
in dispute. It is contended by the learned counsel for the petitioner
that all other benefits are settled by the respondent after retirement
of the petitioner except encashment of leave salary.
7. At this juncture, the learned counsel for the petitioner
submits that he has placed an additional typed set of papers
containing Minutes of 62nd meeting of board of trustees held
on10.02.2016 at Chennai and proceedings dated 30.06.2016 of the
respondent Trust.
8. A perusal of the same, it appears that the petitioner is
entitled for Rs.4,86,528/- towards encashment of Earned Leave and
Rs.1,82,448/- towards encashment of unearned leave. It is also
stated in the budget estimate from April 2016 to March 2017 as per
the Ministry's order the said amount has to be met from institute
fund only.
https://www.mhc.tn.gov.in/judis W.P(MD)No.1164 of 2019
9. In view of the above, it appears that there is no
substance in the contention of the respondent that due to non
availability of finance assistance from the Government of India, they
have not settled the claim of the petitioner for encashment of leave
salary.
10. The learned counsel for the petitioner has drawn
attention of this Court to the order dated 05.01.2023 passed in
W.P(MD) No.5099 of 2020, wherein an identical issue has been
dealt by this Court. On perusal of the said order, it appears that the
respondent took the same stand in the said Writ Petition also stating
that there is no financial assistance from the Central Government
and refused to pay the amounts claimed therein to the petitioner.
Considering the audit report dated 26.07.2022 this Court held that
the respondent refused to pay the legitimate amount to the petitioner
therein, which is not sustainable. Accordingly, this Court directed
the first respondent therein to disburse the eligible amount to the
https://www.mhc.tn.gov.in/judis W.P(MD)No.1164 of 2019
petitioner within the period of 12 weeks from the date of receipt of
copy of the said order.
11. In my considered view, the opinion expressed by this
Court in the said order and the finding are squarely applicable to the
facts and circumstances of the present case.
12.Accordingly, this Writ Petition is allowed directing the
respondent to disburse encashment of leave salary, for which the
petitioner is legitimately entitled, within a period of four weeks from
today.
13. No costs.
21.09.2023
Index : Yes / No
NCC : Yes / No
CM
Note: Issue order copy on .09.2023.
https://www.mhc.tn.gov.in/judis
W.P(MD)No.1164 of 2019
To,
The Director,
The Gandhigram Institute of Rural Health and Family welfare Trust, Soundaram Nagar, Ambathurai, Gandhigram Post – 624 302, Dindigul District.
https://www.mhc.tn.gov.in/judis W.P(MD)No.1164 of 2019
BATTU DEVANAND, J.
CM
W.P.(MD)No.1164 of 2019
21.09.2023
https://www.mhc.tn.gov.in/judis
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