Case Note & Summary
The respondent, Chandrashekar Hebbar, was appointed as a Probationary Officer in the Karnataka Vikas Grameena Bank in 1984 and later promoted. He resigned from service, and upon resignation, he claimed encashment of 221 days of accumulated privilege leave. The Bank, through an order dated 06.10.2008, denied the claim. The respondent filed a writ petition before the learned Single Judge, who allowed the petition and directed the Bank to release the accumulated privilege leave encashment within six weeks, failing which interest at 10% p.a. would accrue. The Bank filed an intra-court appeal under Section 4 of the Karnataka High Court Act, 1961. The Division Bench, after hearing both sides, dismissed the appeal, affirming the Single Judge's order. The court held that the Bank's service regulations do not contain any provision prohibiting encashment of privilege leave upon resignation, and the denial was arbitrary and unjustified. The court also noted that the Bank had not placed any material to show that the respondent was not entitled to the benefit. The appeal was dismissed with no order as to costs.
Headnote
A) Service Law - Privilege Leave Encashment - Resignation - Karnataka Vikas Grameena Bank Service Regulations - Entitlement to encashment of accumulated privilege leave upon resignation - The respondent, who resigned from service, claimed encashment of 221 days of accumulated privilege leave. The Bank denied the claim. The learned Single Judge allowed the writ petition directing payment. The Division Bench upheld the order, holding that the Bank's regulations do not prohibit encashment of privilege leave upon resignation and that the denial was arbitrary. (Paras 1-10)
Issue of Consideration
Whether the respondent-employee is entitled to encashment of accumulated privilege leave upon resignation under the service regulations of the appellant Bank.
Final Decision
The Division Bench dismissed the appeal, upholding the order of the learned Single Judge directing the Bank to pay the accumulated privilege leave encashment to the respondent within six weeks, with interest at 10% p.a. if delayed.
Law Points
- Privilege leave encashment
- resignation
- service regulations
- accumulated leave
- payment of leave salary
Case Details
2021 LawText (KAR) (08) 6
Writ Appeal No.100629/2015 (S-R)
B. Veerappa, M.G.S. Kamal
Shri S.S. Yadrami (for appellants), Shri K.S. Korishettar (for respondent)
The Karnataka Vikas Grameena Bank, H.O. Belgaum Road, Dharwad-8, By its Chairman Shri Ashok Reddy Nukul and The General Manager, Karnataka Vikas Grameena Bank, H.O. Belgaum Road, Dharwad
Chandrashekar S/o. Narasinha Hebbar, Age 56 years, Occ: Retired Servant, R/o.: Ksheerabdi Building, Adarsha Nagar, II Cross, College Road, Sirsi (N.K.)
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Nature of Litigation
Intra-court appeal against order of learned Single Judge directing payment of privilege leave encashment to respondent upon resignation.
Remedy Sought
Appellant Bank sought to set aside the order dated 13.08.2015 in W.P.No.65178/2009 and dismiss the writ petition.
Filing Reason
The Bank denied the respondent's claim for encashment of 221 days of accumulated privilege leave upon resignation.
Previous Decisions
Learned Single Judge allowed the writ petition directing the Bank to release accumulated privilege leave encashment within six weeks, failing which interest at 10% p.a.
Issues
Whether the respondent is entitled to encashment of accumulated privilege leave upon resignation under the Bank's service regulations.
Submissions/Arguments
Appellant Bank argued that the respondent was not entitled to privilege leave encashment as per the service regulations.
Respondent contended that the Bank's regulations do not prohibit encashment and that the denial was arbitrary.
Ratio Decidendi
The Bank's service regulations do not contain any provision prohibiting encashment of privilege leave upon resignation; therefore, the denial of such benefit is arbitrary and unjustified.
Judgment Excerpts
The present Intra Court Appeal is filed by the appellant – Karnataka Vikas Grameena Bank against the order dated 13.08.2015 made in W.P.No.65178/2009 by the learned Single Judge allowing the writ petition directing the appellant Bank to immediately release the accumulated privilege leave standing to the credit of the respondent-petitioner upto the date of his resignation being accepted.
Procedural History
The respondent filed W.P.No.65178/2009 before the learned Single Judge, who allowed it on 13.08.2015. The Bank filed the present Writ Appeal under Section 4 of the Karnataka High Court Act, 1961, which was dismissed on 02.08.2021.
Acts & Sections
- Karnataka High Court Act, 1961: Section 4
