Case Note & Summary
The matter involved two writ petitions before the High Court of Karnataka concerning the entitlement of a retired KSRTC workman to leave encashment for the period he remained dismissed from service. The workman was appointed as a conductor in 1977 and dismissed on 14 January 1991. He challenged the dismissal in I.D. No. 34/1991, and the Labour Court, by award dated 7 January 1993, directed reinstatement with continuity of service and consequential benefits but without backwages. The workman was granted leave for 82 days during the dismissal period, with a condition that he could avail the leave but not encash it. He retired on 31 July 2012 and was paid leave encashment for 246 days, calculated as per KSRTC circulars. Seeking the difference, he filed Application No. 3/2014 before the Labour Court, which on 19 June 2017 allowed the claim, directing payment of Rs. 1,09,210 with 12% interest from the date of retirement. KSRTC challenged this order in W.P. No. 16250/2018, contending that under the Mysore State Road Transport Corporation Employees Leave Rules, 1964, earned leave accrues only for periods spent on duty, and since the workman did not work during the dismissal period, he was not entitled to encashment. KSRTC relied on Rules 4, 6, and 35 of the Leave Rules and the decision in Vijaya Bank v. H.C. Jayaprakash. Meanwhile, the workman filed W.P. No. 14466/2021 challenging two endorsements issued by KSRTC rejecting his claim for leave encashment for the dismissal period. The court heard the submissions and reserved orders, but the available text of the judgment does not contain the final order or the court's reasoning, leaving the outcome unknown.
Issue of Consideration
Whether a workman reinstated with continuity of service but without backwages is entitled to encashment of leave for the period of dismissal, under the Mysore State Road Transport Corporation Employees Leave Rules, 1964.
Law Points
- earned leave proportionate to duty
- privilege leave
- continuity of service does not imply earned leave
- reinstatement without backwages
Case Details
2023 LawText (KAR) (04) 18
W.P.No.16250/2018 c/w W.P.No.14466/2021
W.P.No.16250/2018 c/w W.P.No.14466/2021
Smt. Renuka H.R., Sri. Shekar.L., Sri. B.S. Karthikeyan
Karnataka State Road Transport Corporation, Tumkur Division; V. Nagaraju
S. Gangaiah; The Deputy Chief Accounts Officer, K.S.R.T.C.; The Divisional Controller, K.S.R.T.C.
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Nature of Litigation
Writ petitions under Articles 226 and 227 of the Constitution challenging a Labour Court order directing payment of leave encashment and endorsements rejecting such claim.
Remedy Sought
KSRTC seeks quashing of Labour Court order dated 19.06.2017 in Application No.3/2014; workman seeks quashing of endorsements dated 22.03.2019 and 22.05.2019 and mandamus for payment of leave encashment with interest.
Filing Reason
KSRTC contends workman not entitled to leave encashment for dismissal period as earned leave requires actual duty; workman claims entitlement based on reinstatement with continuity of service.
Previous Decisions
Labour Court, Bangalore in Application No.3/2014 allowed workman's claim on 19.06.2017, directing payment of Rs.1,09,210 with 12% interest; earlier ID No.34/1991 directed reinstatement with continuity and consequential benefits, without backwages, and allowed leave for 82 days but without encashment.
Issues
Whether a workman reinstated with continuity of service but without backwages is entitled to encashment of leave for the period of dismissal when the employer allowed only availment of leave but not encashment, under the Mysore State Road Transport Corporation Employees Leave Rules, 1964.
Whether the endorsements issued by KSRTC rejecting the workman's claim for leave encashment are valid.
Submissions/Arguments
KSRTC argued: Earned leave under Rules 4 and 6 means leave earned only during periods spent on duty; workman did not work during dismissal period, so no earned leave accrued; Rule 35 allows counting former service for leave but former service includes only active duty; Labour Court erred in allowing encashment; relied on Vijaya Bank v. H.C. Jayaprakash.
Judgment Excerpts
The earned leave is a privilege which can be earned by a workman only by working. If a workman had not worked, there is no earned leave which will be available to his credit.
An Employee who is dismissed or removed from service but is reinstated on appeal or revision is entitled to count his former service for leave. (Rule 35)
Procedural History
Workman dismissed on 14.01.1991; challenged in I.D.No.34/1991; Labour Court on 07.01.1993 directed reinstatement with continuity, consequential benefits, without backwages; leave for 82 days allowed but no encashment; workman retired on 31.07.2012; paid leave encashment for 246 days; filed Application No.3/2014 before Labour Court claiming difference; Labour Court allowed on 19.06.2017; KSRTC filed W.P.No.16250/2018 challenging it; workman filed W.P.No.14466/2021 challenging endorsements rejecting encashment.
Acts & Sections
- Constitution of India: Articles 226, 227
- Mysore State Road Transport Corporation Employees Leave Rules, 1964: Rules 4, 6, 11, 12, 13, 35
