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).
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.
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




