IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR BEFORE HON'BLE SHRI JUSTICE ANAND SINGH BAHRAWAT

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ON THE 26 OF FEBRUARY, 2026 WRIT PETITION No. 1450 of 2017 DINESH KUMAR SHARMA Versus THE STATE OF MADHYA PRADESH AND OTHERS Appearance:

Shri Sartaj Singh - Advocate for the petitioner.

Shri B.M. Patel - Government Advocate for the respondent/State.

ORDER This petition, under Article 226 of the Constitution of India, has been filed seeking the following reliefs:-

"(i) Respondents be directed to finalize the cases in the matter of encashment of earned leave and the arrears of the same may kindly be directed to be paid along with the interest @ 12% p.a.

till the date of disbursement in the interest of justice.

(ii) Issue a writ of mandamus or any other writ, order or direction in the nature of writ under Art. 226 of the constitution of India as this Hon'ble Court may deem fit in facts and circumstances of the case;

(iii) Cost of the petition may also be allowed."

2. In the reply, the respondents have submitted that upon retirement, when the petitioner applied for leave encashment, the details furnished by him did not tally with the official records. Thereafter, the concerned authority verified the claim and calculated 89 days of leave from 18.06.2007, and the corresponding leave encashment amount was paid to the petitioner vide letter dated 05.12.2023 by crediting the same to his account. With regard to the remaining period from 01.05.2008 to 2011, 36 days of leave encashment has been calculated and certified by the concerned authority, and the matter has been forwarded for approval to the competent authority, i.e., the Commissioner, Public Instruction, vide letter dated 16.12.2023.

3. The Division Bench of this Court in the case of Lakhanlal Borasi v.

State of M.P. & Ors., passed in W.A. No.1869/2018 dated 5.4.2019 relying various judgments passed by the Apex Court wherein it has been held that retired employee(s) is entitled to the interest on the unpaid post retirial dues.

Relevant Para of roder dated 5.4.2019 reads as under:

"Hon’ble The Supreme Court in the matter of S.K.Dua Vs. State of Haryana & Another AIR 2008 SC 1077 in this regard has held that a retired employee on account of the delay in payment of retiral dues is entitled to the interest not only under the applicable rules, regulations etc. but even in the absence thereof, he can claim interest under Part III of Constitution relying upon Art.14,19 and 21 as the retiral benefits are not in the nature of bounty.

The division bench of this court also in the matter of State of M.P. and others Vs. Ramji Das Agarwal 2013(1) MPLJ 53 has held that a retired employee is entitled to the interest on the unpaid post retiral dues.

In the matter of Aditya Mishra Vs. State of M.P & Ors. 2014(2) MPLJ 59 also this court in a case where retiral dues was withheld without any justifiable reason has held the employee to be entitled to the interest for the delay in making the payment of retiral dues."

4. There was no justifiable reason for withholding the payment of aforesaid dues to petitioner. Respondents are wholly responsible for belated payment of aforesaid dues. The retired employee should not be made to suffer for his no fault.

5. Considering the aforesaid, the respondents are directed to pay the leave encashment amount for the remaining 36 days to the petitioner within a period of one month from the date of receipt of a certified copy of this order and to pay interest at the rate of 6% per annum on the leave encashment amount from the date of entitlement till the date of actual payment.

6. The respondents are also directed to pay interest at 6% per annum on the already paid amount of 89 days’ leave encashment to the petitioner from 31.05.2011 and similarly on the remaining 36 days from 31.05.2011 till the date of actual payment. The aforesaid interest shall be paid within a period of three months from the date of receipt of a certified copy of this order.

7. However, liberty is granted to the respond