Madras High Court
The Management vs The Authority on 20 February, 2025
Author: R.Subramanian
Bench: R.Subramanian
W.A.No. 304 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 20.02.2025
CORAM:
THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN
AND
THE HONOURABLE MR.JUSTICE G.ARUL MURUGAN
W.A.No. 304 of 2025
and
C.M.P.No. 2386 of 2025
The Management,
Park Town Co-operative Wholesale Stores Ltd.,
Rep. by its Joint Registrar / Administrator,
No.263, MTH Road,
Villivakkam,Chennai - 600049
Now at: Plot No.5102, F2,
H Block, 15th Main Road,
Anna Nagar, Chennai - 600 040. ... Appellant
Vs.
1.The Authority,
Under Payment of Wages Act/
Joint Commissioner of Labour - I,
Chennai - 600006.
2.M.Chinnappan ...Respondents
Prayer: Writ Appeal filed under Clause 15 of the Letters Patent, against the
order dated 07.08.2024 made in W.P.No.27540 of 2021.
For Appellant : Mr.S.Parthasarathy
For Respondent : No Appearance
1/5
https://www.mhc.tn.gov.in/judis
W.A.No. 304 of 2025
JUDGMENT
(Judgment of the Court was made by R.SUBRAMANIAN, J.)
Challenge is to the order of the writ Court, dismissing the writ petition
filed by the Employer / Appellant, challenge in which was to the order of the
Joint Commissionr of Labour - I, Chennai dated 08.10.2021 allowing leave
encashment benefits to the workman.
2. The claim of the workman for leave encashment was primarily
countered by the appellant on the ground that Rule 42 does not permit
encashment of the earned leave. Rule 42 reads as follows:-
"42. ENCASEMENT OF LEAVE:
(1) No leave other than privilege leave shall be
surrendered and encashed. The surrender and encasement of
privilege leave shall be subject to the conditions that such
surrender leave shall be made, without actually going on leave,
for a period not exceeding fifteen days with an interval of not
less than twelve months from the date which earned leave on
was surrendered previously and for a period not exceeding
thirty days with an interval of not less than twenty four months
from the date on which earned leave was surrendered
previously.
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(2) If an employee entitled to privilege leave is retired or
discharged from service or resigns from service before he/she
has been allowed such leave, or if, having applied for and been
refused such leave the appointing authority shall grant him/her
leave which is to his/her credit or pay him/her the amount of
salary equal to such leave to his/her credit."
A reading of the above Rule shows that no other leave, except privilege
leave can be surrendered and encashed.
3. Though the learned counsel for the appellant would attempt to
make a difference between privilege leave and earned leave, the Writ Court
has found that both are the same with a different nomenclature. It is also
seen from the order of the writ Court that the appellant had allowed
encashment of privilege leave earlier. The learned counsel for the appellant,
would urge that since the appellant Society is running under loss, leave
encashment cannot be allowed, this argument is against service
jurisprudence. If the Employee is entitled to certain benefits, the same
cannot be taken away on the ground that the Employer is running under loss.
https://www.mhc.tn.gov.in/judis
4. This Writ Appeal therefore, fails and it is accordingly, dismissed.
No costs. Consequently, connected miscellaneous petition is closed. Time
granted for payment is extended by eight weeks from today.
(R.S.M., J.) (G.A.M., J.)
20.02.2025
kkn
Index: No
Speaking order
Neutral Citation : No
To:
1.The Authority,
Under Payment of Wages Act/
Joint Commissioner of Labour - I,
Chennai - 600006.
R.SUBRAMANIAN, J.
https://www.mhc.tn.gov.in/judis
and
G. ARUL MURUGAN, J.
KKN
and
20.02.2025
https://www.mhc.tn.gov.in/judis
