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2019 Supreme(Online)(KER) 74170

HIGH COURT OF KERALA
K VINOD CHANDRAN, V. G. Arun, JJ
EMPLOYEES STATE INSURANCE CORPORATION, – Appellant
Versus
DR. NAVYA PRADEEP, – Respondent


Advocates:
SRI.P.SANKARANKUTTY NAIR, SRI.VARUN C.VIJAY, KUM.A.ARUNA, SMT.MAITREYI SACHIDANANDA HEGDE, SRI.KALEESWARAM RAJ, SRI.M.A.VINOD, CGC, SRI.T.V.AJAYAKUMAR, SRI.M.R.HARIRAJ

Judgement Key Points

Based on the provided legal document, the key points are as follows:

  1. The court examined the application of rules governing study leave under the CCS (Leave) Rules, specifically Rules 7 and 50, and clarified that eligible employees have a legitimate expectation of study leave if they meet the criteria, and this entitlement cannot be arbitrarily denied once established (!) (!) .

  2. The facts of the case involve medical officers who obtained sponsorship certificates and applied for study leave to pursue postgraduate studies. The employees joined their courses based on the belief that they would be granted study leave, which was supported by the sponsorship certificates indicating that their emoluments would be paid by the sponsor during the training period (!) (!) .

  3. The employer, Employees State Insurance Corporation, initially issued a No Objection Certificate (NOC) for the study leave but later refused to grant study leave, directing employees to apply for extraordinary leave instead. The Corporation argued that leave cannot be claimed as a right and that their discretion was limited by policy decisions, including a cap of 4% of medical officers per hospital eligible for study leave (!) (!) .

  4. The court found that the employees' application for study leave was made in good faith, and the sponsorship certificates created a legitimate expectation that they would be granted such leave. The direction to apply for extraordinary leave after their studies had commenced was viewed as an unfair unilateral change, and thus, the authority could not have altered the nature of the leave without the employees' request (!) .

  5. The court emphasized that the policy limiting study leave to a certain percentage of employees was a policy decision, but it was improperly implemented in this case because the employees had already obtained sponsorship certificates and joined their courses based on the understanding that they would be granted study leave. Therefore, the policy could not be used to deny their entitlement in this context (!) .

  6. The court also clarified that the employees had fulfilled the conditions for study leave under Rule 50, including service requirements, and that the nature of the leave—whether study leave or extraordinary leave—does not change the employees' right to such leave once eligibility is established (!) (!) .

  7. The decision highlighted that the employees' undertaking to bear expenses personally did not negate their right to study leave or leave salary, which are separate considerations from the financial responsibilities undertaken by the employees (!) .

  8. The court dismissed the employer’s contention that the employees' applications for extraordinary leave were requests to alter their original application for study leave, affirming that the employees' applications were made under the original entitlement and not as a request for change (!) .

  9. In conclusion, the court upheld the employees' right to study leave, emphasizing that once eligibility is met and the employee has a legitimate expectation based on sponsorship, the employer cannot arbitrarily deny the leave or alter its nature. The order of the tribunal was maintained, and the original petitions were dismissed (!) .

  10. The judgment also notes that the policy decision to limit study leave to a certain percentage was based on sound reasoning but was improperly implemented in this case since the employees had already obtained sponsorship certificates and joined their courses under the belief that they would receive study leave (!) .

These points collectively summarize the court's reasoning, the facts, and the legal principles involved in this case.


JUDGMENT

Arun, J.

These original petitions are filed by the Employees State Insurance Corporation and its officials, aggrieved by the common order issued by the Central Administrative Tribunal, allowing the original applications filed by the respondents herein. By the impugned order, the Tribunal declared the applicants to be entitled for study leave for the period from 1.5.2018 to 30.4.2021 with consequential benefits under Rule 50 of the Central Civil Services (Leave) Rules, 1972 [CCS (Leave) Rules] and set aside the orders by which the ESI Corporation had granted only extraordinary leave to the applicants. The brief facts which led up to the impugned order are narrated hereunder, with the parties and exhibits referred to as in the original applications:

2. O.P(CAT).No.117 of 2019 arises out of O.A.No.533 of 2018, O.P(CAT).No.133 of 2019 is from O.A.No.598 of 2018 and O.P(CAT).No.140 of 2019 is from O.A.No.180 of 2018. All the applicants are working as Insurance Medical Officers in the Hospitals under the ESI Corporation. The applicants in O.P(CAT).No.117 of 2019 are working at the ESIC Model and Super Speciality Hospital, Asramam, Kollam and the applicants in O.A.Nos.598 and 626 of

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