The main legal point established in the judgment is that the entitlement to leave encashment for non-teaching staff is not an enforceable right without legal foundation, while the liability of the college to pay interest on delayed payments is upheld.

RAJIV NARAIN RAINA, J.

1. Mr. Amrit Paul, learned counsel has filed written statement in Court today. Taken on record.

2. Mr. R.D. Anand, learned counsel for the petitioner has insisted on addressing arguments for judgment as he does not wish to file rejoinder.

3. Heard Mr. Anand, Mr. Harkesh Manuja, Addl. AG, Punjab, Mr. Amrit Paul, learned counsel appearing for respondent No. 3/GNDU and Ms. Madhu Dayal, learned counsel appearing for respondents No. 4 and 5 for the College.

4. The brief facts are that the petitioner was borne on the strength of the non-teaching staff of respondent College and has retired in 2011 from service as an Office Superintendent. He was paid the terminal benefits but not all of them as on the date of filing of the petition. However, due to pay revision he became entitled to arrears. The funds for disbursing arrears were received by the College on April 22, 2016 and the amount was released on May 10, 2016. The right to arrears accrued on January 01, 2006. The amounts were paid in instalments by the Punjab Government to the respondent-College after delay. The college is a privately managed aided institution receiving grant-in-aid from the Government of Punjab. The subsisting claim firstly, is for interest on delayed payment of arrears of pay revision. The second claim is for payment of leave encashment dues which has been denied to the petitioner. What has been denied further is the arrears of revised gratuity as a result of pay revision. A statement is made by Ms. Madhu Dayal that the amounts would now be disbursed to the petitioner without any delay.

5. Ms. Madhu Dayal, says that the amount could not be paid in time because the petitioner was not in town when effort was recently made to contact him. Hence the petitioner would be free to collect the money from the college. However, since the amounts were admittedly due and payable from retrospective dates, but have not been paid on time, the amounts would earn interest at the rates equivalent to rates of interest paid by Nationalized Banks on long term deposits at rates current on the date of actual payment for the reason that money was due legally and was withheld without legal justification. The reason for delay may lie either in the college or in the Government of Punjab but would not deprive the right of the petitioner of his right to claim those amounts since either the college or the State Government has earned interest on those amounts lying with them in custody. The other grievance of the petitioner is qua leave encashment. Leave encashment has not been paid and is claimed by the petitioner on the basis that non-teaching staff of the college are entitled to benefit of leave encashment.

6. The specific stand taken by Guru Nanak Dev University which is the affiliating University of the 4th and 5th respondent-College in its written statement is as under:-

"3. GNDU's Provisions Qua Leave Encashment Regarding the superannuated Teaching and Non-teaching staff/employees of its private affiliated Colleges:

(1) That it is submitted that there is no statutory provision available under the Guru Nanak Dev University Act, 1969, by which pecuniary benefits qua Leave Encashment can be extended by the private aided colleges of the respondent No. 3-Guru Nanak Dev University, Amritsar, to their superannuated Teaching and Non-teaching staff/employees who retired prior to 1-1-2012.

(2) That, however, only the Principals and teaching staff of the Colleges affiliated to the respondent No. 3 who retired on or after 1-1-2012 are entitled to leave encashment of unutilised earned leave to a maximum number of days as per the PB. Govt. C.S.R. vide GNDU's amended Ordinance 22(3), GNDU Calendar-2007, Vol.-IV, 31.

(3) That, accordingly, there is no statutory provision available under the Guru Nanak Dev University Act, 1969, by which pecuniary benefits qua Leave Encashment can be extended by the private aided colleges of the respondent No. 3-Guru Nanak Dev University, Amritsar