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2024 Supreme(P&H) 681

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SANJAY VASHISTH, J.
Chandigarh Industrial and Tourism Development Corporation Ltd. – Petitioner
Versus
Gorakh Ram & Anr. – Respondent
CWP-5154 of 2024 (O&M)
Decided On : 04-03-2024

Advocates Appeared:
Ms. Madhu Dayal, Advocate; For the Petitioner

Employees are entitled to service benefits, including leave encashment, at the time of superannuation, regardless of subsequent termination or misconduct.

Headnote:(A) Industrial Disputes Act, 1947 - Section 33-C(2) - Writ petition challenging order of Industrial Tribunal regarding leave encashment - Workman entitled to payment for unclaimed leaves accrued by superannuation date - Management's claim of termination post-superannuation rejected as irrelevant to leave entitlement. (Paras 1-4)

(B) Employment Law - Leave encashment rights - Entitlement to leave encashment arises at the time of superannuation, irrespective of subsequent termination claims. (Paras 4-7)

Facts of the case:
The workman was employed as a waiter since 1983 and claimed payment for 300 unclaimed leaves upon superannuation in October 2014, which the Management contested based on alleged termination for fraud.

Findings of Court:
The Tribunal ruled that the workman was entitled to leave encashment as of the superannuation date, dismissing the Management's claims regarding post-superannuation termination.

Issues: The main issues were the entitlement of the workman to leave encashment upon superannuation and the relevance of subsequent termination claims to that entitlement.

Ratio Decidendi: The court held that the workman’s entitlement to leave encashment accrued at the time of superannuation, and the Management's subsequent actions could not negate that right.

Result: Writ petition dismissed.

JUDGMENT

Mr. Sanjay Vashisth, J. (Oral)

Chandigarh Industrial & Tourism Development Corporation Limited (CITCO), has filed present writ petition by challenging the order dated 03.08.2023 (Annexure P-1), passed by the learned Industrial Tribunal & Labour Court, UT, Chandigarh (for brevity, 'learned Tribunal'), whereby, while deciding LCA No.9/2021, application filed by respondent No.1 - Gorakh Ram (workman), under Section 33-C(2) of the Industrial Disputes Act, 1947 (in short, 'ID Act'), has been answered in favour of respondent No.1.

2. By way of said application, workman (respondent No.1 herein) submitted that he was appointed by the Management/CITCO (petitioner herein) as waiter in the year 1983, and he remained in uninterrupted employment up till October, 2014. At the time of superannuation, he claimed that he was drawing Rs. 33,263/- p.m., as wages, and 300 leaves were in credit of the workman. He claimed entitlement to receive a sum of Rs. 3,32,630/- towards payment of unclaimed leaves.

3. On the other hand, Management/CITCO (petitioner herein) opposed the claim of the workman by saying that though the service period of the workman expired in October 2014, on attaining the age of superannuation, but he was granted extension to continue in the service after the period of his superannuation. It has never been disputed by the Management that in October 2014, workman had 300 number of leaves to his credit. However, the Management claimed that during the extension period, he was terminated from the service, and therefore, as per the Punjab Civil Services Rules (Volume-II) Rule 8.21(b) of CPC, the applicant is not entitled to any relief. The reason of termination was that he played fraud on public, which was proved in the Departmental inquiry.

4. While dealing with the contention, learned Tribunal found that there is no substance in the submission of the Management, because, all the service benefits including leave encashment were required to be released to the employee, on the date of superannuation i.e. on 31.10.2014. Once the workman is found to be entitled for the relief claimed under Section 33-C(2) of the ID Act, there is no question to deny that claim, for any act done or proved after the said period.

5. During the course of hearing, learned counsel for the petitioner - Management, relies upon the Rule 7.1 of the Punjab Civil Services (Volume-I), Chapter VII, and submits that as per said Rule, any Government employee, who is dismissed or removed from the service, ceases to have any claim to pay and allowance, from the date of such dismissal or removal.

6. I have heard counsel for the petitioner and perused the material available on record.

7. This Court finds no substance in the submissions made by counsel for the petitioner, because, on 31.10.2014, when the cause of leave encashment had accrued to the workman, the same was required to be paid by the petitioner - Management, to the workman (respondent No.1), from that very time without any delay, and the Rule cited by the petitioner - Management, cannot be made applicable for the period which has no connection with the alleged act done by its workman/employee.

Thus, for the reasons recorded in the order impugned herein, and affirmed by this Court also, present writ petition is dismissed.

Pending misc. application(s), if any, also stands disposed of accordingly.

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