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2026 Supreme(Online)(Mad) 20153

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.SATHISH KUMAR, M.JOTHIRAMAN, JJ
Vinoth Kumar – Appellant
Versus
The General Manager, Hrmd, Indian Overseas Bank – Respondent
W.A(MD)No. 270 of 2026 | C.M.P.(MD) No.2819 of 2026



Advocates:
For the Appellant: Mr. P. Karthick

Leave encashment claims under statutory rules are contingent on service termination conditions and cannot be asserted after termination.

Headnote:The judgment addresses the interpretation of the Indian Overseas Bank (Officers’) Service Regulations, 1979, particularly regarding leave encashment, which is restricted under specific circumstances. The appellant's claim for encashment was dismissed based on precedent case law indicating the conditional nature of leave benefits. The court found no error in the learned Single Judge's ruling regarding the strict adherence to statutory provisions governing leave encashment eligibility, consistent with the Full Bench ruling in similar cases.

Table of Content
1. writ appeal regarding leave encashment after termination. (Para 1 , 2)
2. interpretation of service regulations prohibiting leave encashment. (Para 3)

(Order of the Court was made by N.SATHISH KUMAR, J.)

Challenge has been made to the order of the learned Single Judge dismissing the writ petition, which has been filed claiming Encashment of Leave, which has not been issued since he was terminated from service.

2. The appellant was a bank employee and he was dismissed from service on 05.06.2024, due to which the request of the petitioner for encashment of leave has been rejected. Hence, he sought for Encashment of Leave.

3. The learned Single Judge, considering the Rule position as well as the judgment of the Full Bench of Punjab and Haryana High court in AIR 2014 Punjab and Haryana 147 in the case of Punjab State Civil Supplies Corporation Ltd., and others vs. Pyare Lal, has clearly held that if the right of withhold leave encashment is part of a statutory rule or law, then the benefit of the leave encashment cannot be claimed as a component earned by the employee and dismissed the writ petition. 4. When the appeal came before us, when a specific query was raised about the legal position, the learned counsel for the appellant was not in a position to substantiate his stand.

5. The relevant provisions of Indian Overseas Bank (Officers’)

Service Regulations, 1979, have been extracted by the learned Single Judge. On perusal of the same, leave encashment is being permitted only in certain circumstances, particularly where the officer dies while in service, a sum equivalent to the emoluments for the period not exceeding 240 days of the privilege leave has to be credited. Similarly, when the officer leaves or discontinues his services by resignation on or after 01.04.2001, after giving due notice under Sub-regulation (2) of the regularization 20, he may be paid a sum equivalent to the emoluments in respect of privilege leave to the extent of half of such leave to his credit on the date of fixation of service, which has to be maximum of 120 days.

6. Above Rules make it clear that when the officer has resigned as per Rules, the leave is restricted only to the extent of half of the total leave payable to the employees on or after 01.04.2001. Therefore, for resignation, only 120 days have been permitted and otherwise, encashment of leave is not permitted in any of the provisional rules. In such view of the matter, we do not find any infirmity in the order of the learned Single Judge.

7. With these observations, this Writ Appeal is dismissed. No costs.

Consequently, connected miscellaneous petition is closed.

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