IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA CWPOA No. 4326 of 2020 Decided on: 24.12.2025 __________________________________________________________

Dharm Pal Sharma ....Petitioner Versus State of Himachal Pradesh and another ...Respondents __________________________________________________________

Coram:

Hon’ble Mr. Justice Ranjan Sharma, Judge

1 Whether approved for reporting? Yes.

For the petitioner r: Mr. Amrick Singh, Advocate. For the respondent(s) : Mr. Seema Sharma, Deputy Advocate General.

Ranjan Sharma, Judge Petitioner, Dharm Pal Sharma, having served as Rigman [Class-III] and retired as Driller had filed an Original Application No. 2278 of 2018 before Learned State Administrative Tribunal; and H upon abolition of the Tribunal, the matter came to be transferred to this Court, as CWPOA No. 4326 of 2020, seeking the following reliefs: -

(i) That the impugned action of the respondents by illegally deducting/withholding of leave encashment may be declared as null and void;

(ii) That the respondents may kindly be directed

1 Whether reporters of Local Papers may be allowed to see the judgment? Yes

to release the benefits of leave encashment which has wrongly and illegally been deducted/withheld by the respondent alongwith interest;

FACTUAL MATRIX:

2. Case as set up by Learned .Counsel is that petitioner was appointed as Rigman [Class-III] and upon joining service on 05.05.1981 though permanent headquarter of the petitioner was fixed in Geology Wing of Industries Department at Shimla but trhe Respondents posted/deployed the petitioner at various places for carrying out geological operations and ancillary work from time to time. Petitioner was lastly deployed at Gumma in T ehsil Chopal, District Shimla in August, 2016 and he was promoted as Driller (Class-II) in the year 2015 and he served as such till his superannuation H on 31.08.2016. During his tenure at Gumma his work conduct and performance had been satisfactory throughout. On superannuation, the petitioner was entitled for the release of entire retiral benefits inaccordance with the applicable Services Rules but, surprisingly, the Respondent-Department had withheld and retained an amount of Rs.1,14,125/- [Rs. One Lakh Fourteen Thousand One Hundred and Twenty Five] in the form of FDR [rePferred to at page 12 of paper book] from Leave Encashment of the petitioner without complying with the principles of natural justice and without authority of law. It is in this backdrop, that the grievance of the petitioner is that the action of the State Authorities in withholding an amrount of Rs.1,14,125/- [Rs. One Lakh Fourteen Thousand One Hundred and Twenty Five] in the form of FDR from the retiral benefits {Leave Encashment} of the petitioner in v iolation of the principles of natural justice and by acting contrary to the statutory rules was highly unfair, unjust, illegal, arbitrary and H unconstitutional.

STAND OF STATE AUTHORITIES IN REPLY:

3. Pursuant to the issuance of notice on 03.05.2018, the Respondents have filed the Reply- Affidavit dated 31.05.2018 of Director of Industries, Himachal Pradesh, Shimla.

3(i). Perusal of the Reply-Affidavit indicates that petitioner was appointed as Rigman [Class-III, Non Gazetted] in the year 1981 in Respondent-

Department and permanent headquarter Pof the petitioner was fixed at Geological Wing at Shimla on 05.05.1981 but the petitioner was deployed at various places. Reply Affidavit indicates that while the petitioner was posted at Gumma in Tehsil Chopal, he retired from service on attaining the age of superannuationr on 31.08.2016. Reply indicates that an audit/test check of the accounts of office of the State Geologist, Geology Wing, Department of Industries, Shimla was conducted for the period upto 1 1/2015 by the Audit Party of Accountant General, Himachal Pradesh, Shimla and the said audit party detected overpayment of allowances beyond 180 days H amounting to Rs.23.45 lakh to various incumbents, including the petitioner by treating incumbe