IMPORTANT POINT
A Railway employee dismissed from service forfeits all leave credits, thus is not entitled to Leave Encashment benefits.

JUDGMENT :

(N. Unni Krishnan Nair. J)

Heard Ms. B. Sarma, learned CGC appearing on behalf of the petitioners. Also heard Dr. G. J. Sharma, learned counsel appearing for the sole respondent.

2. The present proceeding has been instituted by the petitioners, presenting a challenge to the order dated 05.12.2023, passed by the learned Central Administrative Tribunal, Guwahati Bench in Original Application No. 040/0062/2023.

3. The sole respondent, herein, on conclusion of a departmental proceeding initiated against him came to be imposed with a penalty of dismissal from service without any compassionate allowance i.e. Pension and Gratuity both, vide an order dated 27.09.2021, passed by the Disciplinary Authority. The appeal as preferred against the said order dated 27.09.2021 was also dismissed by the Appellate Authority vide an order dated 03.06.2022. The sole respondent had also preferred a revision petition in the matter, before the Revisional Authority, which was also rejected by the competent authority. The sole respondent, thereafter, instituted Original Application No. 62/2023 before the Central Administrative Tribunal, Guwahati Bench, praying for release of his Provident Fund dues along with the dues receivable under Group Insurance Scheme and also the benefits of Leave Encashment. The learned Tribunal, upon consideration of the issues so arising in the said O.A. No. 62/2023 was pleased vide order dated 05.12.2023, to dispose of the O.A., directing the petitioners, herein, to release to the sole respondent, herein, his Leave Encashment benefits after verifying his leave account. Being aggrieved, the petitioners have instituted the present proceeding.

4. The issue arising in the present proceeding is as to whether a Railway employee imposed with the penalty of dismissal or removal from service is entitled to claim encashment of the leave in credit in his leave account.

5. The learned CGC appearing for the petitioners, by referring to the provisions of Rule 504 of the Indian Railway Establishment Code, (Vol-I) has submitted that a Railway servant who is dismissed or removed, or who resigns from railway service is not entitled to claim the leave in credit in his leave account, inasmuch as, the same ceases from the date of such dismissal or removal, or resignation. The learned CGC has further submitted that the learned Tribunal had committed an error in concluding that the provisions of Rule 504 of the said Code would have no relevancy with regard to the claim of Leave Encashment as raised by the sole respondent before it. The learned CGC in the above premises submits that the learned Tribunal having passed the order dated 05.12.2023, basing on an erroneous conclusion; the order dated 05.12.2023 stands vitiated and requires interference from this Court.

6. Per contra, Dr. G. J. Sharma, learned counsel for the respondent by referring to the provisions of Rule 542 (2) (b) of the IREC has contended that the Railway authorities are required to credit Earned Leave at the rate of 2½ days per completed calendar month up to the end of the calendar month preceding the calendar month in which such Railway employee is removed or dismissed from service, or dies in service. It is contended that the stipulations as contained in the provisions of Rule 542 (2) (b), requiring computation of earned leave even in case of a dismissed or removed railway servant, would go to show that even a Railway employee imposed with the penalty of dismissal, would be entitled to claim Leave Encashment to the extent of the leave credited to his leave account. Dr. G. J. Sharma, learned counsel has further in support of his case, placed reliance on the provisions of Rule 550(B)(1)(ii) of the IREC.

7. Dr. Sharma, by referring to the order of the Disciplinary Authority dated 27.09.2021, has contended that the Disciplinary Authority had only withheld the Pension and Gratuity of the sole respondent along with denial of any compassionate allowance while imposing the penalty of