Case Note & Summary
The dispute arose between the Union of India and a retired Judge of the Punjab and Haryana High Court regarding the entitlement to cash equivalent of leave salary for unutilised earned leave. The respondent, Gurnam Singh, had served as a Judge from February 24, 1972, until his retirement on March 18, 1980. Upon retirement, he claimed cash equivalent for his unutilised earned leave, which was denied by the Government. Subsequently, he approached the High Court under Article 226 of the Constitution, which ruled in his favor on September 5, 1980, directing the Union of India to pay the claimed amount. The Union of India contested this decision, arguing that the High Court Judges’ (Conditions of Service) Act, 1954 constituted a complete code regarding Judges' service conditions, and no further rights could be inferred. The Supreme Court dismissed the petition, affirming the High Court's ruling that the respondent was entitled to the cash equivalent of leave salary based on the provisions of rule 20B of the All India Services (Leave) Rules, 1955, which was applicable to Judges through rule 2 of the High Court Judges Rules, 1956. The court highlighted that the concept of 'earned leave' is integral to the statutory scheme governing Judges' leave entitlements, and thus the claim was valid. The decision reinforced the interpretation that rights accruing on retirement, such as leave salary, are indeed conditions of service.
Headnote
A) Constitutional Law - Right to Leave Salary - Entitlement of Retired Judge to Cash Equivalent of Leave Salary - High Court Judges’ (Conditions of Service) Act, 1954, Section 24 - The Supreme Court upheld the High Court's decision that a retired Judge is entitled to cash equivalent of leave salary for unutilised earned leave, as per rule 20B of the All India Services (Leave) Rules, 1955, which is applicable to Judges under the High Court Judges Rules, 1956. The court reasoned that the provisions of the Act and rules provide for such entitlements, thus affirming the High Court's ruling (Paras 706-707).
Issue of Consideration
Whether a retired Judge is entitled to cash equivalent of leave salary for unutilised earned leave.
Final Decision
The Supreme Court dismissed the Union of India's petition, affirming the High Court's decision that the respondent was entitled to the cash equivalent of leave salary for unutilised earned leave.
Law Points
- High Court Judges’ (Conditions of Service) Act
- 1954
- cash equivalent of leave salary
- All India Services (Leave) Rules
- 1955
- conditions of service
- earned leave



