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2025 Supreme(All) 2248

IN THE HIGH COURT OF ALLAHABAD 
VIKRAM D. CHAUHAN, J.
Smt Kusum Lata Singh – Appellant 
Versus
State Of U.P. And 4 Others – Respondent 
WRIT - A No. - 6048 of 2024 
Decided on : 13-05-2025

Advocates:
Advocate Appeared:
For the Appellant : Vinay Kumar Tiwari
For the Respondent: C.S.C.

Retiral dues are property under Article 300A; unexplained delays in payment warrant interest at 6% per annum, with penal compensation for further delays.

Headnote:(A) Constitution of India - Article 300A - Writ petition for mandamus regarding leave encashment dues post-retirement - Petitioner entitled to leave encashment amount due on 31/03/2018, which was delayed until 25/04/2024 - Court emphasized that unexplained delays in payment of retiral dues are impermissible. (Paras 8, 10)

(B) Interest on delayed payment - Court ruled that employee is entitled to interest at 6% per annum from retirement date till actual payment, with additional penal compensation if unpaid after three months. (Paras 10, 11)

Facts of the case:
The petitioner, an Assistant Teacher, retired on 31/03/2018, with dues for leave encashment not paid until 25/04/2024, prompting the writ petition.

Findings of Court:
The Court found that the delay in releasing the leave encashment dues was unjustified and ruled for the payment of interest.

Issues: The primary issues included the entitlement of the petitioner to interest on delayed payment and the justification for the delay in releasing dues.

Ratio Decidendi: The Court held that retiral dues are property under Article 300A, and delay without justification warrants interest, affirming that employees should receive their dues timely.

Result: Writ petition partly allowed, directing payment of interest.

Table of Content
1. petitioner seeks mandamus for encashment of leave dues. (Para 2 , 3)
2. dues were credited, but interest on delayed payment is contested. (Para 4 , 6)
3. respondents argue no provision for interest on delayed payment. (Para 5 , 7)
4. employee entitled to timely payment of retiral dues. (Para 8 , 9)
5. petitioner entitled to interest due to unexplained payment delay. (Para 10)
6. writ petition disposed with directions for interest payment. (Para 11)

Hon'ble Vikram D. Chauhan,J.

1. Heard learned counsel for the petitioner and learned Standing Counsel for the respondent-State.

2. The present writ petition has been filed with the following prayers :-

"1:- Issue a writ, order or direction in the nature of mandamus commanding the respondents to forthwith sanction and disburse the amount of encashment of Earn Leave, which has been fallen due to petitioner on the date of her superannuation i.e. 31/03/2018, with interest at the rate of 18% from the date of entitlement till date of actual payment.

2:- Issue a writ, order or direction in the nature of mandamus commanding the respondents to decide the representation dated 14/03/2024 (Annexure No. 2 to writ petition) of petitioner, within stipulated time fixed by this Hon'ble Court."

3. On 23.4.2024 this Court has passed the following order :-

"The Director, Directorate of Secondary Education, U.P., Lucknow, the Joint Director of Education, VIIth Region Gorakhpur, Gorakhpur and the District Inspector of Schools, Gorakhpur will show cause by their own affidavits why the petitioner's dues on account of leave encashment have not been paid to her till date. The petitioner was an Assistant Teacher, L.T. Grade in the Government Girls Inter College, Gorakhpur and retired on 31.03.2018 from A.D. Government Girls Inter College, Gorakhpur upon attaining the age of superannuation.

Prima facie, there is no reason why the petitioner's dues on account of earned leave encashment should not have been paid. Cause shall be shown by each of the three respondents bearing that in mind.

Lay as fresh on 02.05.2024.

Let this order be communicated to the Director, Directorate of Secondary Education, U.P., Lucknow through the Civil Judge (Senior Division), Lucknow, the Joint Director of Education, VIIth Region Gorakhpur, Gorakhpur and the District Inspector of Schools, Gorakhpur through the Civil Judge (Senior Division), Gorakhpur by the Registrar (Compliance) within 24 hours."

4. In pursuance thereof, personal affidavit of the Director of Education was filed before this Court and on 2.5.2024 this Court has passed the following order :-

"Personal affidavits on behalf of respondent nos. 2, 3and 4 has been filed by Mr. Dhirendra Pratap Singh, learned Standing Counsel in Court today. Let these affidavit be taken on record and numbered by the Office.

In paragraph no. 6 of the affidavit filed by the Director of Secondary Education, U.P. Prayagraj/Lucknow, it is averred:

"6. That in furtherance of the aforesaid leave encashment sanction order dated 25.04.2024, the Finance ad Account Officer (Secondary Education), Gorakhpur has on 27.04.2024 credited the amount of Rs. 2,01,600/- in the saving Bank account of petitioner vide Token No. 3224332066."

Learned Counsel for the petitioner does not dispute the fact that a sum of Rs. 2,01,600/- has been credited to his account towards leave encashment, but says that it has been paid without interest.

Learned Counsel for the petitioner presses her claim to award of interest on the delayed payment of leave encashment.

Treating the personal affidavits filed today in Court to be counter affidavits, this petition is admitted.

Learned Standing Counsel may file a further counter affidavit on the issue why interest be not awarded. The said affidavit shall be filed, within two weeks.

List for orders on 17.05.2023."

5. In compliance to the order dated 2.5.2024, affidavit has been filed by learned Standing Counsel for the respondent-State on 15.5.2024 stating that there is no provision for providin

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