A retired government employee is entitled to the encashment of earned leave and 80% of the retirement gratuity even if judicial or departmental proceedings are pending, provided the rules allow for partial release.

Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate Writ, Order or Direction, more particularly one in the nature of Writ of Mandamus, declaring action f the respondents in not releasing the payment of 80percentage Gratuity and Encashment of Earned Leave amounts and half pay leave in so far as the petitioner despite representation dated 10.10.2025, given to the respondent Nos. land 2 as illegal, Arbitrary, discriminatory and violation of Principal of Natural Justice and violation of Article 14 and 21 of the Constitution of India and consequently this Honble to direct the respondents to pay encashment of earned leave amounts and half pay leave and 80percentage gratuity to the petitioner and pass

IA NO: 1 OF 2026

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased please to direct the respondents to forthwith release the 80percentage of the Gratuity amount and Encashment of Earned Leave amounts and half pay leave with interest to the petitioner consequent to his superannuation on 30.06.2025, pending disposal of the above writ petition and to pass

The Court made the following:

ORDER:-

The present Writ Petition is filed questioning the action of the Respondents in not releasing the payment of 80% of Gratuity and Encashment of Earned Leave amounts and half pay leave in so far as the Petitioner despite representation dated 10.10.2025 to the Respondents No.1 and 2 as illegal and arbitrary.

The precise case of the Petitioner is that he joined as an attender in Respondent No.2/ Corporation in the year 1995. He was promoted as Record Assistant in the year 2012 and later promoted as TRACER, Town Planning Section. The Petitioner was retired from service on 30.06.2025.

The grievance of the Petitioner in the present writ petition is that the was involved in ACB case during his service since 2015 and a charge sheet was filed in the year 2018 and the same was pending before Special Judge for SPE & ACB Court, Nellore vide C.C.No.20 of 2018. The Petitioner made a representation to the Respondents dated 21.10.2025 requesting them to sanction of 80% of Gratuity, encashment of Earned Leave and half leave amount as he is facing financial crises. As the same was not considered by the Respondents, the present Writ Petition came to be filed.

Heard learned counsel for the Petitioner and learned Assistant Government Pleader for Services-I and learned Standing Counsel for the Respondents.

Learned counsel for Petitioner by referring to G.O.Rt.No.1097, dated 22.06.2000, contends that Respondents are not entitled to withhold all the amounts on mere pendency of criminal case and that Petitioner is entitled to be paid 80% of retirement gratuity besides releasing encashment of earned leave. Petitioner has also placed reliance on orders passed by the Coordinate Bench of this Court in W.P.No.33884 of 2022, duly following the orders passed by the Division Bench of this Court in W.P.No.2545 of 2000, which has considered the purport of G.O.Rt.No.1097, dated 22.06.2000.

Learned Assistant Government Pleader for Services-I appearing for respondents does not refute the aforesaid contentions.

A Coordinate Bench of this Court in W.P. No.33884 of 2022, while considering the purport of G.O.Rt.No.1097, Finance and Planning (FE.Pen.I) Department, dated 22.06.2000, held as follows:

“…8. On a perusal of the material on record, this Court observed that, the Government vide G.O.Rt.No.1097, Finance and Planning (FE.Pen.I) Department, dated 22.06.2000 issued guidelines about Encashment of Earned Leave and Retirement Gratuity, reads as follows:

“B. Encashment of Earned Leave: As per the orders issued in G.O. 4th read above, the authority competent to grant leave, in the above mentioned cases may withhold whole or part of cash equivalent of