2018 (4) TMI 1862 - HC - Central Excise

Court grants petitioner right to claim leave salary surrender encashment benefit

D. Soundararajan Versus The Tamil Nadu State Transport Corporation (Kumbakonam) Ltd., Kumbakonam, The General Manager, The Tamil Nadu State Transport Corporation (Kumbakonam) Ltd., Pudukottai

The Court allowed the writ petition, granting the petitioner the right to claim leave salary surrender encashment benefit based on eligibility for ... Settlement of petitioner's surrender leave salary for 84.5 days - HELD THAT:- It is not in dispute that there was 12(3) settlement between the parties. According to such settlement, employees would be entitled to surrender earned leave of 15 days in one year or 30 days in two years and the remaining 15 days or 30 days, as the case may be, shall be cumulatively accumulated as terminal earned leave benefit to the maximum of 240 days for the whole service. During petitioner's service, between 2011 and 2014, though he could have surrendered the earned leave of 15 days in a year as per 12(3) settlement, the same was not made possible because the practice was done away by the respondent Corporation, as they have admitted in the answer given to the query under RTI Act - If the present circular dated 09.01.2017 enabling the employees to surrender earned leave of 15 days per year for the original period between 2011 and 2014, certainly, such benefits should be extended to all such employees. Insofar as the present petitioner is concerned, the petitioner also could not surrender his earned leave between 2011 and 2014 and therefore, the petitioner would be entitled to make such a claim by virtue of the Circular. This Court is of the considered view that the petitioner shall also be eligible and entitled to surrender 15 days earned leave from the years 2011-2014, where the petitioner was in service and if such surrender is made, certainly, he will be entitled to claim the encashment for the said earned leave surrender - this Court has no hesitation to hold that the impugned order passed by the respondent Corporation rejecting the said claim made by the petitioner for encashment of earned leave benefit between 2011 -2014 is unsustainable The petitioner shall be entitled to claim the leave salary surrender encashment benefit depending upon his eligibility for the relevant years and since the petitioner has already made such a request on 24.03.2018, the same shall be accepted and the amount equivalent to surrender of earned leave shall be disbursed to the petitioner within a period of eight weeks from the date of receipt of a copy of this order - Petition allowed. Issues:Challenging impugned order for surrender leave salary settlement and interest calculation.Analysis:The petitioner, a former Conductor at the respondent Corporation, filed a writ petition seeking settlement of surrender leave salary for 84.5 days from 2009-2016 with interest at 18% per annum. The petitioner contended that despite a previous order directing consideration of his representation, the respondent rejected his request. The respondent claimed the petitioner did not surrender earned leave during service, making him ineligible post-retirement. The petitioner argued the Corporation discontinued the surrender practice due to financial crisis, supported by an RTI response. Referring to a settlement allowing earned leave surrender, the petitioner's counsel argued the circular issued post-retirement should enable the claim. The respondent contended the circular was not applicable to retired employees for past years' claims. The Court noted the 12(3) settlement allowing surrender of earned leave and the Corporation's discontinuation of the practice. The Court referenced a prior case where similar claims were allowed, emphasizing the financial crisis should not deprive employees of entitled benefits. The Court held the petitioner eligible for surrendering earned leave from 2011-2014, quashing the impugned order and directing the Corporation to disburse the due amount within eight weeks of the order.In conclusion, the Court allowed the writ petition, granting the petitioner the right to claim leave salary surrender encashment benefit based on eligibility for relevant years. The Court directed the Corporation to disburse the amount equivalent to the surrender of earned leave within eight weeks of the order.