Revised leave encashment is payable if pay is refixed retrospectively, even if leave encashment was earlier settled in a lump sum, as the eligibility relates to the date of retirement.

Jiya Lal Bhardwaj, Judge
(Oral)

The petitioner by way of present petition has prayed for the following substantive reliefs:

i “i) That the impugned objection raised by respondent No.5 on the arrears bill of leave encashment (annexure A-4) to the effect that revised leave encashment is not entitled due to increase of pay, it is settled in one time, may be quashed and set aside.

ii) That the respondents may be directed to pay to the applicant the arrears of leave encashment after calculating the same on the basis of enhanced pay on account of grant of benefit of ACP and step up given at par with his juniors.

iii) That the respondents may be directed to pay to the applicant interest @9% per annum on the delayed payment of the amount of leave encashment from the date of retirement till actual date of payment.”

2. The facts as emerge from the pleadings are that the petitioner was appointed as Lecturer (Biology) in Government Senior Secondary School, Sunni on tenure basis on 03.09.1989. Later on, his services were regularized as Lecturer w.e.f. 01.04.1994 and was retired from service on attaining the age of superannuation on 30.09.2012. Since, there was anomaly in the pay fixation of the petitioner vis.-a-vis. his juniors, the petitioner had made a representation dated 11.06.2012 (Annexure A-1) to bring him at par with his juniors. Later on his pay was stepped up as per order dated 01.10.2013 at par with his juniors.

3. After retirement of the petitioner, the respondents did not pay the arrears of revised leave encashment and the petitioner made an application on 04.08.2015 (Annexure A-3). Respondent No.4 had informed the petitioner vide letter dated 21.08.2015 that he has already been paid leave encashment of Rs.4,44,620/- after his retirement. After enhancement in the pay on account of the benefit of 2 increments under the new Assured Career Progression Scheme (for short “ACP”) after completion of 9 years and 14 years regular service, revised leave encashment Bill No.14 dated 27.05.2015 amounting to Rs.34920/- was submitted in the District Treasury Office, Solan. However, the District Treasure Officer, Solan had conveyed that the revised leave encashment is not entitled due to increase of pay. It has been averred that the pay of the petitioner was stepped up to Rs.6600/- instead of Rs.6400/- w.e.f. 01.01.1996. Since, his pay has been stepped up, he cannot be penalized due to delay and negligence on the part of the respondents and his enhanced pay deserves to be taken into consideration while calculating the arrears of leave encashment. The objection raised by respondent No.5 on the arrears bill of leave encashment on the ground that the petitioner is not entitled for revised leave encashment due to negligence of pay is wholly unjust, arbitrary and discriminatory. The petitioner is legally entitled for the benefit of ACP after completing the 4-9-14 years services as per the rules and instructions from the date the scales were revised and the benefit of ACP was extended. The delay in allowing the benefit of ACP to the petitioner was on the part of the respondents and thus prayed for direction to release the amount of revised leave encashment.

4. Respondents No.1 to 4 filed reply to the petition and averred that the petitioner has been paid the amount of leave encashment of Rs.4,44,620/- besides other benefits after his retirement. As per clarification dated 13.08.2013, issued by the State Government of Himachal Pradesh, it has been clarified that the benefit of leave encashment i