Leave encashment entitlement carries interest on delayed payment when no contrary legal rule excludes such compensation.

Entitlement to surrender leave salary after retirement was upheld on the basis of earlier binding precedent recognising employees' right to encash earned leave despite the Corporation's administrative or financial objections. The Court also found no legal rule excluding interest on belated payment, and held that delayed disbursement could carry interest where no contrary basis was shown. Relief was granted for 64 days' leave salary with interest at 6% per annum from retirement until actual payment, to be released in instalments.

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Issues: Whether the petitioner was entitled to surrender leave salary for 64 days after retirement, and whether interest was payable on the delayed disbursement.

Analysis: The claim for surrender leave salary was treated as covered by earlier decisions of the Court upholding employees' entitlement to encash earned leave despite the Corporation's resistance based on its administrative or financial position. On the question of interest, the Court noted that the cited decisions did not lay down any rule denying interest on belated payment, and no legal basis was shown to exclude such interest in the present case.

Conclusion: The petitioner was held entitled to surrender leave salary for 64 days together with interest at 6% per annum from the date of retirement until actual disbursement.

Final Conclusion: Relief was granted directing payment of the leave salary in instalments, and the writ petition succeeded.

Ratio Decidendi: Where entitlement to leave encashment is supported by binding precedent, delayed payment may carry interest in the absence of any contrary legal rule denying such interest.

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