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2026 Supreme(P&H) 348

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARPREET SINGH BRAR, J.
Charanjit Singh - Petitioner 
Versus 
State of Punjab and Another – Respondents
CWP-26546 of 2025 (O&M), CWP-36344 of 2025 (O&M)
Decided On : 23-02-2026

Advocates Appeared:
For the Petitioner:Mr. Himanshu Sharma, Advocate.
For the Respondents: Mr. Vikas Arora, DAG, Punjab, Mr. Animesh Sharma, Adv., Mr. Sanjeev Sharma, Adv.

JUDGMENT :

HARPREET SINGH BRAR, J.

1. This common order shall dispose of the aforementioned two writ petitions, as they arise from a similar factual matrix. CWP- 26546-2025 has been filed under Articles 226/227 of the Constitution of India seeking a writ in the nature of mandamus directing the respondents to set aside the speaking order dated 23.04.2025 (Annexure P-7) insofar as it denies the petitioner’s claim for leave encashment, and to direct the respondents to release the petitioner’s retiral benefits, i.e., Leave Encashment, and interest @ 18% per annum on the delayed payment of Gratuity. The petitioner further seeks the release of ex gratia/bonus amount for the year 2022-23 which was due on01.07.2023.

2. The writ petition i.e. CWP-36344-2025 has been filed seeking a writ of certiorari for quashing the charge-sheet dated 10.10.2025 (Annexure P-3 in CWP-36344-2025) issued by respondent-Corporation after the petitioner’s retirement. Further prayer has been made for restraining respondent-Corporation from proceeding further with the impugned charge-sheet dated 10.10.2025 qua the petitioner.

CONTENTIONS

3. Learned counsel for the petitioner inter alia contended that the petitioner retired as Deputy Manager from the respondent- Corporation on 31.01.2024 (Annexure P-1 in CWP-26546-2025) upon attaining the age of superannuation. It is submitted that the petitioner’s service record was unblemished and his conduct was appreciated throughout his career. Despite an office order dated 22.12.2023 (Annexure P-4) directing the release of Gratuity and Leave Encashment on the day of retirement, the respondents failed to disburse these benefits to the petitioner.

4. It is submitted that the respondents issued a show-cause notice dated 10.04.2023 (Annexure P-2) to the petitioner stating that a sum of Rs.76,80,000/- was outstanding against M/s Punjab Wires, Nangal-Bhur, Pathankot as on 30.09.2020. Of this amount, Rs.40,98,579.23 had been recovered, while a further sum of Rs.35,81,420.23, along with interest at the rate of 15%, remained recoverable. It is alleged that the petitioner failed to take timely and appropriate steps to recover the said outstanding amount. The petitioner submitted a detailed reply on 27.04.2023 (Annexure P-3), explaining that the default occurred due to the party’s account becoming a NPA and that the petitioner had actually recovered over Rs.40 lakhs from the same party. The respondents had instituted a recovery suit against M/s Punjab Wires, Pathankot for the outstanding amount, which is presently pending adjudication.

5. Since the retiral benefits were not released, the petitioner issued a legal notice dated 12.11.2024 (Annexure P-5) to the respondents. The notice was duly received but it was neither replied to nor were the retiral benefits released. Consequently, the petitioner approached this Court by filing CWP No.33194 of 2024, which was disposed of on 10.12.2024 (Annexure P-6) with a direction to the respondents to consider and decide the legal notice dated 12.11.2024.

6. In compliance with the directions of this Court, the respondents passed a speaking order dated 23.04.2025 (Annexure P-7). Vide the said order, the respondents ordered to release the gratuity amount in favour of the petitioner. However, no interest on the gratuity amount was paid to the petitioner. Furthermore, the respondents did not release the leave encashment and other amounts due to the petitioner. The speaking order records that a show-cause notice dated 10.04.2023 was served upon the petitioner and is likely to be decided shortly. It further notes that, since the possibility of recovery from the petitioner subsists, the petitioner’s leave encashment has been withheld at this stage in accordance with the Punjab Small Industries & Export Corporation Employees Service Bye-laws, 2016 (hereinafter, “Service Bye-laws”) read with Rule 8.21(aa) of the Punjab Civil Services Rules, Volume I, Part I. Furthermore, it is argued that the petitioner was enti

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