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2025 Supreme(Ker) 1905

IN THE HIGH COURT OF KERALA AT ERNAKULAM 
ANIL K. NARENDRAN, MURALEE KRISHNA S., JJ.
The Jawaharlal Nehru Tropical Botanical Garden and Research Institute - Appellant
Versus
Padmesh Pandaram Pillai S/o V.P. Pillai - Respondent
W.A. No. 1450 of 2024
Decided On : 02-06-2025

Advocates:
Advocate Appeared:
For the Appellant : C.K. Karunakaran
For the Respondents: V.V. Surendran, P.A. Harish, P.C. Sasidharan, Anusree C.

Resignation does not entitle an employee to terminal leave encashment or gratuity under service rules, which require retirement or termination for such claims.

Headnote:

(A) Kerala High Court Act, 1958 - Section 5(i) - Constitution of India - Article 226 - Writ of mandamus - Claim for unpaid gratuity, earned leave encashment, and pay arrears as per the 7th Central Pay Commission - The petitioner, after serving over 20 years, sought terminal benefits upon leaving for another position - The appellant Institute contended that the petitioner was not entitled to encashment of leave due to service rules - The learned Single Judge ruled in favor of the petitioner, allowing claims for leave and gratuity - The appeal court found that the petitioner was not entitled to the claimed benefits as he had resigned to join another institution, thus not meeting the conditions for encashment under the applicable rules. (Paras 1, 7, 28)

(B) Service Rules - Rule 8.9 - Terminal leave surrender - The court emphasized that resignation does not equate to retirement or termination under the rules, which are prerequisites for claiming leave encashment. (Paras 21, 28)

(C) Appeal - The appellate court set aside the learned Single Judge's judgment, ruling that the petitioner was not entitled to claim terminal surrender of leave. (Paras 7, 28)

Facts of the case:
The petitioner, after over 20 years of service at the appellant Institute, sought terminal benefits upon leaving for a new position. The appellant Institute denied the claims based on service rules.

Findings of Court:
The appellate court found that the petitioner did not meet the necessary conditions for claiming leave encashment and gratuity.

Issues: The main issue was whether the petitioner was entitled to terminal leave surrender and gratuity after resigning to join another institution.

Ratio Decidendi: The court ruled that resignation does not fulfill the conditions for claiming leave encashment under the service rules, which require retirement or termination.

Result: The writ appeal is allowed, setting aside the learned Single Judge's judgment.

JUDGMENT :

Anil K. Narendran, J.

1. The 1st respondent in W.P. (C) No.24841 of 2022 has filed this writ appeal, invoking the provisions under Section 5(i) of the Kerala High Court Act, 1958, challenging the judgment dated 04.03.2024 of the learned Single Judge in that writ petition, which was one filed by the 1st respondent herein-writ petitioner, invoking the writ jurisdiction of this Court under Article 226 of the Constitution of India, seeking a writ of mandamus commanding the appellant Institute to disburse the unpaid balance gratuity amount calculated on the basis of the years of service of the petitioner in the appellant Institute and the pay due him as per the recommendations of the 7th Central Pay Commission; a writ of mandamus commanding the appellant to disburse the money equivalent to 300 days of earned leave to the credit of the petitioner, while serving the appellant Institute; a writ of mandamus commanding the appellant to release the petitioner pay arrear benefits of the 7th Central Pay Commission from 01.01.2016 to 09.06.2016; a writ of mandamus commanding the appellant to forward the petitioner’s service book to his present employer, namely, the Central University of Kerala and writ of mandamus commanding the appellant to pay the petitioner interest for delayed payment of benefits.

2. Going by the averments in the writ petition, the petitioner joined the service of the appellant Institute, i.e. Jawaharlal Nehru Tropical Botanical Garden and Research Institute (formerly Tropical Botanical Garden and Research Institute), Palod, which is a constituent institution of the 2nd respondent Kerala State Council for Science, Technology and Environment, as Scientific Assistant, on 13.11.1995, who was promoted as Scientist E-II. Later, he left the service of the appellant Institute on 09.06.2016 and joined as an Associate Professor in the Department of Genomic Science at the Central University of Kerala. As on 09.06.2016, the date of leaving the service of the appellant Institute, the petitioner had completed more than 20 years of continuous service in the appellant Institute. The petitioner had earlier approached this Court in W.P. (C) No.10618 of 2018, when the appellant Institute refused to consider his claim of lien. That writ petition was disposed of by Ext.P3 judgment dated 19.11.2020, giving liberty to approach the appellant Institute by submitting a representation, within the time limit stipulated in that judgment. Pursuant to the direction contained in Ext.P3 judgment, the petitioner submitted Ext.P4 representation dated 27.11.2020 before the appellant Institute to sanction closure of Contributory Employees Provident Fund, encashment of earned leave equivalent to 300 days in his credit, gratuity amount in par with the years of service in the appellant Institute, closure amount of group insurance, pay arrears as per the recommendation of 7th Central Pay Commission, from 01.01.2016 to 09.06.2016; and transfer of his service book to the Central University of Kerala.

3. On receipt of Ext.P4 representation, the petitioner was paid Rs.48,989/- towards the closure of the group insurance claim and Rs.10 lakhs towards the gratuity amount. The amount towards the closure of the Contributory Employees Provident Fund was transferred through the office of the Employees Provident Fund Organisation. According to the petitioner, he is entitled to better gratuity and hence the balance amount has to be paid. He is also entitled to encashment of 300 days leave on his credit.

4. In the writ petition, the 2nd respondent Kerala State Council for Science, Technology and Environment filed a counter affidavit dated 03.10.2023, wherein it was stated that the petitioner, while working as Scientist-E, was relieved from service to take up employment as Associate Professor in the Department of Genomic Sciences in the Central University of Kerala. Since the said University is not a State-owned institution, there is no provision for transferring the

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