126+128 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of decision: 24.09.2025 Harmesh Kumar ....Petitioner Versus Punjab State Civil Supplies Corporation Ltd. and another ...Respondents

2) CWP-28654-2025 Subhash Johar ....Petitioner Versus Punjab State Civil Supplies Corporation Ltd. and another ...Respondents CORAM: HON'BLE MR. JUSTICE HARPREET SINGH BRAR Present: Mr. Parveen Kumar Garg, Advocate for the petitioner(s).

HARPREET SINGH BRAR, J. (ORAL)

1. This common order shall dispose of the aforementioned civil writ petitions as they arise from a similar factual matrix. However, for the sake of brevity, the facts are taken from CWP-28640-2025.

2. The present civil writ petition(s) has been filed under Articles 226/227 of the Constitution of India for issuance of a writ in the nature of certiorari for quashing the impugned order dated 27.09.2024 (Annexure P-3) as well as the impugned letters dated 19.03.2025 and 28.04.2025 (Annexures P-5 & P-6, respectively).

3. Learned counsel for the petitioner(s) inter alia contends that the petitioner(s) retired on 31.12.2011 as a District Manager. However, his retiral dues were withheld on account of pending show cause notice. After the retirement of the petitioner(s), 21 charge sheets were issued. Eventually, all proceedings were dropped and petitioner(s) earned a clean chit. Thereafter, gratuity was released to the petitioner along with an interest @ 12% as per the order from the Controlling Authority. The leave encashment which is considered as a part of salary has been paid to the petitioner after a delay of 13 years i.e. on 05.12.2024, without any legislative mandate. As such, there was no longer any ‘ingredient or element’ to justify withholding the retiral dues once the petitioner was exonerated. Further, this Court in ‘Dhir Chand Vs. State of Haryana and others’ 2019 (1) SCT 134, has categorically held that leave encashment has to be paid even to a dismissed employee as it is a part of earned salary. The petitioner has moved a representation claiming interest on account of delay in releasing the leave encashment from the date of retirement i.e. 31.12.2011 until the date of payment i.e. 05.12.2024. The respondent- Corporation, being a commercial entity, has utilized the funds of the petitioner(s) for 13 years. He further submits that similarly situated co- employee, namely, Sarwan Singh, who is identically circumstanced retired from the services of the respondents, was also not released his retirement benefits and has approached this Court by way of filing CWP No.15238 of 2013 titled as ‘Sarwan Singh Vs. Punjab State Civil Supplies Corporation Limited and another’ and the same was disposed of and the petitioner therein has been paid interest on account of delayed release of financial benefits after dropping of the charge sheet, from the date it became due as discernible from Annexure P-8. Further, the respondent-Corporation has issued instructions on 04.05.1998 (Annexure P-7) and has taken conscious decision to pay interest on the delayed payment to the employees and their dependents.

4. Having heard the learned counsel for the petitioner and after perusing the record with his able assistance, the present petition is being decided in limine in order to save litigation cost of the respondent and judicial time of the Court.

5. It is evident that the petitioner retired on 31.12.2011 and all the charge sheets were admittedly issued after the retirement of the petitioner and all the charge sheets were consigned to record and no punishment has been awarded to the petitioner. The petitioner has only been censured in one of the charge sheets bearing SCN No.13/3493 issued on 22.04.2013 which creates no impediment in release of retiral dues. As such, the petitioner cannot be denied the interest on the delayed payment. The petitioner has further relied upon the order passed in the case of Sarwan Singh (supra) (Annexure P-8) in which the payment of interest for delay was allowed and the