Gujarat High Court Allows Leave Encashment Claim Despite Delay, Rejects Limitation Bar for Continuing Wrong. Petitioner, a retired government servant, entitled to leave encashment for 300 days under Gujarat Civil Services (Leave) Rules, 2002, and delay in filing writ petition condoned as continuing wrong.

High Court: Gujarat High Court In Favour of Accused
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Case Note & Summary

The petitioner, Vijay B. Shah, was appointed by respondent No. 3 on a regular pay scale and rendered services for about 17 years before retiring on 30.04.2006. He filed a writ petition under Article 226 of the Constitution of India seeking a mandamus to direct the respondents to pay leave encashment for 300 days based on his last salary drawn, along with interest at 9% per annum from the date of resignation. The respondents opposed the petition primarily on the ground of delay and laches, arguing that the petition was filed about 6 years after retirement. The court noted that it was not in dispute that the petitioner was appointed on a regular pay scale and served for 17 years. The court held that leave encashment is a right that accrues on retirement and the delay in filing the petition is not fatal because the refusal to pay constitutes a continuing wrong. The court relied on the principle that a writ court can entertain a petition even if there is delay, especially when the claim is for a recurring or continuing right. The court also referred to the Gujarat Civil Services (Leave) Rules, 2002, which provide for encashment of earned leave on retirement. The court allowed the petition and directed the respondents to pay leave encashment for 300 days along with interest at 6% per annum from the date of retirement until payment.

Headnote

A) Service Law - Leave Encashment - Entitlement - Petitioner, a government servant, retired after 17 years of service and claimed leave encashment for 300 days - Held that leave encashment is a right that accrues on retirement and is not barred by delay if the claim is based on a continuing wrong (Paras 3-5).

B) Constitutional Law - Writ Jurisdiction - Delay and Laches - Petition filed 6 years after retirement - Court held that delay is not fatal when the claim is for a recurring or continuing right, and the employer's refusal to pay constitutes a continuing wrong - Held that the petition is maintainable (Paras 4-5).

C) Interpretation of Statutes - Gujarat Civil Services (Leave) Rules, 2002 - Rule 43 - Leave encashment - The rule provides for encashment of earned leave on retirement - Held that the petitioner is entitled to encashment of 300 days leave as per the rules (Para 6).

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Issue of Consideration

Whether the petitioner is entitled to leave encashment for 300 days after retirement, and whether the writ petition is barred by delay and laches.

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Final Decision

The court allowed the petition and directed the respondents to pay leave encashment for 300 days along with interest at 6% per annum from the date of retirement until payment.

Law Points

  • Leave encashment is a right accruing on retirement
  • delay in filing writ petition can be condoned if there is continuing wrong
  • Article 226 of Constitution of India
  • Gujarat Civil Services (Leave) Rules
  • 2002
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Case Details

2026:GUJHC:15903

R/Special Civil Application No. 16751 of 2012

2026-02-27

Maulik J. Shelat

2026:GUJHC:15903

Ms. Shivani J. Barot for Mr. P.A. Jadeja, Mr. Varun K. Patel, Ms. Dhruti Pandya

Vijay B Shah

State of Gujarat through Secretary & Ors.

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Nature of Litigation

Writ petition under Article 226 seeking payment of leave encashment after retirement.

Remedy Sought

Petitioner sought a writ of mandamus directing respondents to pay leave encashment for 300 days with interest.

Filing Reason

Non-payment of leave encashment after retirement.

Issues

Whether the petitioner is entitled to leave encashment for 300 days? Whether the writ petition is barred by delay and laches?

Submissions/Arguments

Petitioner argued that he served for 17 years and is entitled to leave encashment as per rules. Respondents argued that the petition is barred by delay and laches as it was filed 6 years after retirement.

Ratio Decidendi

Leave encashment is a right that accrues on retirement, and delay in filing a writ petition is not fatal when the claim is based on a continuing wrong. The court can exercise its writ jurisdiction under Article 226 even if there is delay, especially when the claim is for a recurring or continuing right.

Judgment Excerpts

It is not in dispute between the parties that the petitioner was appointed by respondent No. 3 on a regular pay scale after due process. Having rendered services for about 17 years, the petitioner retired from service on 30.04.2006. The court held that leave encashment is a right that accrues on retirement and the delay in filing the petition is not fatal because the refusal to pay constitutes a continuing wrong.

Procedural History

The petitioner filed a writ petition in 2012 seeking leave encashment for 300 days after retiring in 2006. The respondents opposed on grounds of delay. The court heard the matter and delivered judgment on 27/02/2026.

Acts & Sections

  • Constitution of India: Article 226
  • Gujarat Civil Services (Leave) Rules, 2002: Rule 43
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