Case Note & Summary
The petitioner, Omprakash Jiwandas Miglani, joined the nationalised coal sector on 3 March 1976 as Assistant Welfare Officer (Trainee) in Western Coalfields Limited. He served in various capacities, including as Director (Personnel) from 1 January 2008. He resigned on 1 May 2011, and his resignation was accepted on 1 July 2011. After resignation, he sought payment of leave encashment for 219 days of earned leave and 293 days of half pay leave. The respondents, Coal India Limited and Western Coalfields Limited, refused to pay, claiming that resignation results in forfeiture of leave. The petitioner filed a writ petition under Article 226 of the Constitution of India. The court examined the Coal India Leave Rules and found no provision that forfeits leave encashment upon resignation. The court held that leave encashment is a vested right that accrues during service and cannot be denied arbitrarily. The court allowed the petition, directing the respondents to pay the leave encashment amount with interest at 6% per annum from the date of resignation until payment, within three months.
Headnote
A) Service Law - Leave Encashment - Vested Right - Coal India Leave Rules - The petitioner, a Director (Personnel) who resigned, claimed encashment of 219 days earned leave and 293 days half pay leave. The respondents refused on the ground that resignation results in forfeiture of leave. The Court held that leave encashment is a vested right accrued during service and cannot be denied merely because of resignation, as the rules do not provide for forfeiture in case of resignation. (Paras 2-10) B) Constitutional Law - Writ Jurisdiction - Article 226 - Maintainability - The Court entertained the writ petition against Coal India Limited, a Government company, as the refusal to pay leave encashment was arbitrary and violative of fundamental rights. The Court directed payment of leave encashment with interest at 6% per annum from the date of resignation till payment. (Paras 11-15)
Issue of Consideration
Whether the petitioner, who resigned from service, is entitled to encashment of earned leave and half pay leave as per the applicable rules.
Final Decision
The court allowed the writ petition and directed the respondents to pay the leave encashment amount with interest at 6% per annum from the date of resignation (01.05.2011) till payment, within three months.
Law Points
- Leave encashment is a vested right
- resignation does not forfeit leave encashment
- Coal India Leave Rules
- Article 226 jurisdiction
- interpretation of service rules
