Case Note & Summary
The case involves a writ appeal filed by the Chairman-cum-Managing Director of TANGEDCO against a single judge order dated 26.08.2022 in W.P. No. 4503 of 2018. The respondent, K.V. Natarajan, was a dismissed employee of TANGEDCO. He had claimed encashment of earned leave and unearned leave on private affairs, which was rejected by the appellant. The single judge allowed the writ petition, directing the appellant to consider the claim. The appellant appealed, arguing that under Rule 21 of the Tamil Nadu Pension Rules, 1978, the respondent's past services were forfeited due to dismissal, and therefore he was not entitled to any service benefits. The appellant also relied on an earlier judgment in the same case which considered amendments to the Fundamental Rules and Tamil Nadu Leave Rules, 1933, issued in G.O.Ms.No.100 dated 17.09.2022. The court analyzed the nature of leave encashment and held that it is not a pensionary benefit but a benefit under the Leave Rules. Rule 21 of the Tamil Nadu Pension Rules, 1978 applies only to pension and not to leave encashment. The court found that the single judge had correctly held that the respondent was entitled to encashment of earned leave, though not to unearned leave on private affairs. The appeal was dismissed, and the appellant was directed to disburse the encashment of earned leave within eight weeks.
Headnote
A) Service Law - Dismissal - Leave Encashment - Rule 21 Tamil Nadu Pension Rules, 1978 - The issue was whether a dismissed employee is entitled to encashment of earned leave and unearned leave on private affairs. The court held that earned leave encashment is not a pensionary benefit and is governed by Fundamental Rules and Tamil Nadu Leave Rules, 1933, not by Rule 21 of the Tamil Nadu Pension Rules, 1978. Therefore, the dismissal does not forfeit the right to encashment of earned leave. (Paras 2-6)
B) Service Law - Dismissal - Unearned Leave on Private Affairs - Tamil Nadu Leave Rules, 1933 - The court considered the entitlement to encashment of unearned leave on private affairs. It held that such leave is not a pensionary benefit and is governed by the Leave Rules. The dismissal does not automatically forfeit this benefit. (Paras 2-6)
C) Service Law - Pension Rules - Forfeiture of Service - Rule 21 Tamil Nadu Pension Rules, 1978 - The court interpreted Rule 21, which provides for forfeiture of past service on dismissal. It held that this rule applies only to pensionary benefits and not to leave encashment, which is a separate benefit under the Leave Rules. (Paras 2-6)
Issue of Consideration
Whether a dismissed employee is entitled to encashment of earned leave and unearned leave on private affairs, and whether Rule 21 of the Tamil Nadu Pension Rules, 1978 forfeits such benefits.
Final Decision
The writ appeal was dismissed. The appellant was directed to disburse the encashment of earned leave to the respondent within eight weeks from the date of receipt of the order.
Law Points
- Earned leave encashment is not a pensionary benefit
- Rule 21 of Tamil Nadu Pension Rules
- 1978 does not apply to leave encashment
- Dismissed employee entitled to earned leave encashment
- Fundamental Rules and Tamil Nadu Leave Rules
- 1933 govern leave encashment
Case Details
2026 LawText (MAD) (03) 179
S. M. Subramaniam, K.Kumaresh Babu
Mr.K Rajkumar (for appellant), Mr.C.Prakasam (for respondent)
The Chairman Cum Managing Director, Tamil Nadu Generation and Electricity Distribution Corporation Ltd., Tamil Nadu Electricity Board, and The Superintending Engineer, TN Generation and Electricity Distribution Corporation Ltd., Tamil Nadu Electricity Board
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Nature of Litigation
Writ appeal against a single judge order directing consideration of leave encashment claim of a dismissed employee.
Remedy Sought
Appellant sought to set aside the single judge order and dismiss the writ petition, thereby upholding the rejection of the respondent's claim for encashment of earned leave and unearned leave on private affairs.
Filing Reason
The appellant contended that the respondent, being a dismissed employee, was not entitled to service benefits under Rule 21 of the Tamil Nadu Pension Rules, 1978.
Previous Decisions
The single judge in W.P. No. 4503 of 2018 dated 26.08.2022 allowed the writ petition, directing the appellant to consider the claim. The appellant had earlier rejected the claim by letter dated 08.02.2018.
Issues
Whether a dismissed employee is entitled to encashment of earned leave and unearned leave on private affairs.
Whether Rule 21 of the Tamil Nadu Pension Rules, 1978 forfeits the right to leave encashment upon dismissal.
Submissions/Arguments
Appellant argued that under Rule 21 of the Tamil Nadu Pension Rules, 1978, the respondent's past services were forfeited due to dismissal, and therefore he was not entitled to any service benefits including leave encashment.
Appellant relied on an earlier judgment in the same case which considered amendments to Fundamental Rules and Tamil Nadu Leave Rules, 1933, issued in G.O.Ms.No.100 dated 17.09.2022.
Ratio Decidendi
Leave encashment is not a pensionary benefit but a benefit under the Leave Rules. Rule 21 of the Tamil Nadu Pension Rules, 1978, which provides for forfeiture of past service on dismissal, applies only to pension and not to leave encashment. Therefore, a dismissed employee is entitled to encashment of earned leave.
Judgment Excerpts
Under assail is the writ order dated 26.08.2022 passed in W.P. No. 4503 of 2018.
The Chairman-cum-Managing Director, TANGEDCO is the appellant preferred the present intra court appeal under Clause 15 of the Letters Patent mainly on the ground that 1st respondent is a dismissed employee, and therefore, not entitled to claim service benefits in view of the Services Rules in force.
Beyond Rule 21, learned counsel for the appellant would rely on an earlier judgment of this Court in the case of K.V.Natarajan Vs. The Chairman cum Managing Director, TANGEDCO dated 26.08.2022, in W.P.No.4503 of 2018, wherein this Court considered the amendment made to the Fundamental Rules and Tamil Nadu Leave Rules, 1933, issued by the Government in G.O.Ms.No.100, Human Resources Management (FR.II) Department, dated 17.09.2022.
Procedural History
The respondent filed W.P. No. 4503 of 2018 seeking direction to consider his claim for leave encashment. The single judge allowed the writ petition on 26.08.2022. The appellant filed the present writ appeal under Clause 15 of the Letters Patent against that order.
Acts & Sections
- Tamil Nadu Pension Rules, 1978: Rule 21
- Tamil Nadu Leave Rules, 1933:
- Fundamental Rules:
