Dismissed employees are not entitled to leave encashment as per the relevant rules and case laws.

JUDGMENT

Harsimran Singh Sethi, J. - In the present writ petition, the claim of the petitioners is for grant of leave encashment, though, the services of the petitioners were terminated by the respondent-State after the petitioners were found guilty in FIR No.37 dated 08.06.1996 under the provisions of Prevention of Corruption Act as well as Indian Penal Code.

2. Learned counsel for the respondents states that keeping in view of the law laid down by this Court in CWP No.20751 of 2019 titled as Gurdeep Singh vs. State of Punjab and others decided on 28.08.2019, the employees are only entitled for grant of leave encashment upon retirement and, therefore, the law is against the claim of the petitioners as raised in the present writ petition. Relevant paragraph of the judgement is as under:-

"In order to appreciate the claim of the petitioner, who is a dismissed employee, for grant of leave encashment, the Rules governing the service in this regard are necessary to be noticed. The claim for the benefit of encashing the earned leave can be made by the petitioner only in case the Rules governing the service allow for the same. The relevant rule, which governs the service in respect of leave encashment is Rule 8.21. The same is reproduced herein for the ready reference:

"5.27. (a) Leave at the credit of a Government employee in his leave account shall lapse on the date of his retirement:

Provided that the Government employee, -

(A) retiring on superannuation; or

(B) retiring prematurely, voluntarily or on invalidation; or

(C) retiring compulsorily as a measure of punishment and in whose case cut in the amount of pension has not been ordered by the competent authority; shall, subject to the provisions of sub-rule (c), be entitled to cash payment in lieu of the un-utilised earned leave due as leave preparatory to retirement as under :-

(i) the cash payment shall be equivalent to leave salary limited to a maximum of 300 days " earned leave;

(ii) the cash payment shall become payable on retirement in the above cases in lump sum as a one-time settlement;

(iii) the leave salary for the purpose of this rule shall not include city compensatory allowance or house-rent allowance;

and

(iv) no deduction on account of pension and pensionary benefit equivalent to other retirement benefits shall be made from the cash thus paid.

(aa) Notwithstanding anything contained in sub-rule (a), the authority competent to grant leave may withhold whole or part of cash equivalent of earned leave in the case of Government employee, who retires from service on superannuation while under suspension or while disciplinary or criminal proceedings are pending against him, if in the opinion of such authority, there is a possibility of some money becoming recoverable from him on conclusion of the proceedings against him and on conclusion of the proceedings, he shall become eligible to the amount so withheld after adjustment of Government dues, if any.

(b) In case of a Government employee, who is granted extension in Service, on the completion of his extended period of Service, shall be entitled to draw cash equivalent to un-utilized earned leave at his credit on the date of his superannuation:

Provided that a Government employee, who continues in Service after his superannuation, shall earn leave at the rate applicable to him on the date of his superannuation:

Provided further that if a Government employee, avails earned leave in excess 119 [Chap. VIII] LEAVE [8.21-8.22] of leave earned by him during the period of his extension, in that case the excess leave availed by him, shall be deducted from the un-utilized leave at his credit on the date of his superannuation.

(c) the cash payment for the unutilised leave admissible under the aforesaid sub-rule (a), shall be calculated as follows, namely: -

Pay admissible on the date Number of days of unutilised of retirement plus earned leave at credit on the date Dearness Allowance of retirement subject to a maximum admissible on