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2024 Supreme(Online)(ORI) 778

IN THE HIGH COURT OF ORISSA AT CUTTACK

WP(C) No.22599 of 2015

In the matter of an application under Article 226 and 227 of the

Constitution of India

Mohd. Sharif Khan

….

Petitioner

-versus-

1.

CMD, Power Grid

Corporation of India Ltd

2.

Executive Director,

(Human Resources)

Corporate Center, Power

Grid Corporation of

India Ltd, ‘Saudamini’,

Plot No.2, Sector-29,

Gurgaon, Haryana

3.

Director (Personnel),

Power Grid Corporation

of India Ltd,‘Saudamini’,

Plot No.2, Sector-29,

Gurgaon, Haryana

4.

Executive Director,

Power Grid Corporation

of India Ltd, Plot N o.27,

Saheed Nagar, BBSR

5.

Executive Director,

Power Grid Corporation

of India Ltd., Eastern

Region Transmission

System-II, Sector-V,J-1-

15, Salt Lake, Kolkata

….

Opposite Parties

For Petitioner : Mr. L. Pangari, Sr. Advocate

For Opposite Parties : Mr. A.N. Das, Advocate

CORAM: JUSTICE V. NARASINGH

Date of final hearing : 19.10.2023

Date of judgment : 15.04.2024

V. Narasingh, J. Heard learned Senior counsel for the Petitioner Mr. Pangari, and learned counsel for the Opposite Party-Corporation, Mr. A.N. Das.

1. The Petitioner was working as a Senior Assistant under the Opposite Party-Corporation. He retired from service on attaining the age of superannuation with effect from 31st August,2013.

2. He assails the rejection of his representation at Annexure-13 basing upon the letter dated 27.08.2013 of the Opposite Party-

    Corporation(Annexure-6) by which the Opposite Party-Corporation restricted the leave encashment both Earned leave (EL) and the Half Pay Leave (HPL) clubbed together to the overall ceiling limit of 300 days and with the further prayer to direct the Opposite Party-Corporation and its Authorities to encash the Half Pay Leave as accumulated to the tune of 375 days with an interest of 15 % per annum. For convenience of ready reference letter dated 27.08.2013 at Annexure-6 is extracted hereunder:
    xxx xxx xxx Sub: Limit of Leave encashment-Restriction to 300 days.

1.0 In view of clarification issued by the Department of Public Enterprise on the above subject, It is clarified that on retirement/separation on account of death, the encashment of leave will be allowed subject to overall ceiling limit of 300 days(both Earned leave & Hal-Pay leave clubbed together). Further, to make up the shortfall in Earned Leave, no commutation of Half-Pay Leave will be permissible. To illustrate: If an employee has 100 days of Earned Leave and 300 days of HPL then encashment of HPL is restricted to 200 days.

2.0 The same shall come into force with immediate effect. This issues with the approval of Competent Authority. xxx xxx xxx

3. It is urged with vehemence by the learned Senior counsel for the Petitioner, Mr. Pangari that encashment of Half Pay Leave being an accrued right cannot be taken away by an amended provision. It is submitted that Rule 27 of Power Grid Leave rules dealing with procedure and amount of encashment more particularly Rule 27(IV) and Rule 29 thereof which evidently were incorporated pursuant to the corporate HR circular No.3II of 2013 dated 27.08.2013 cannot have any retrospective application, in case of the Petitioner who admittedly was on the rolls of the corporation w.e.f 19.11.1991. For convenience of ready reference Rule 27(IV) and 29 of the Leave Rules are extracted hereunder; <br/>

    xxx xxx xxx “ 27.0 Procedure and amount of Encashment (i) xxx xxx xxx (ii) xxx xxx xxx (iii) xxx xxx xxx (iv) In case of retirement and separation on account of death, encashment of leave will be allowed subject to overall ceiling limit of 300 days (both Earned Leave and Half Pay Leave clubbed together.) Further, to make up the shortfall in Earned Leave, no commutation of Half-
    Pay leave will be permissible. Illustration : If an employee has 100 days of EL and 300 days of HPL then encashment of HPL is restricted to 200 days.
    In case of death, the encashment shall be allowed to the legal heirs/nominee of the employee, as nominated by him for the purpose of CPF.
    In the case of employees who resign their appointment, the total amount of Earned Leave at their credit worked out as on the date of resignation shall be allowed to be encashed.
    xxx xxx xxx xxx xxx xxx 29.0 Encashment of Half Pay Leave The encashment of Half-Pay Leave will be allowed subject to a maximum of 300 days (HPL and El taken together) standing at the credit of the employee in the following events:
    i) Separation from the Company on attaining the age of superannuation or ii) Death while in service or iii) Cessation of service, other than on grounds of disciplinary action, after attaining the age of 50 ye



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