High Court of Madras Adjourns Writ Appeal on Leave Encashment for Government Employee. Employee Claimed Additional Encashment Based on Departmental Letter; Court Grants Time to Respondents for Instructions.

High Court: Madras High Court Bench: Principal
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Case Note & Summary

The appellant, a former Group-D employee of the Export Inspection Agency under the Ministry of Commerce, Government of India, joined service in 1983. He surrendered 158 days of earned leave for encashment during the period 01.01.1986 to 20.01.1994. By the time of his retirement, he had accrued 285 days of eligible leave. The department had already disbursed encashment for the entire 285 days, accounting for both the earlier surrender and the balance leave at retirement. The appellant, however, claimed a fresh encashment benefit for the same 158 days, relying on a letter dated 29.12.1999 written by the Additional Director, which stated that earned leave encashed between 01.01.1986 and 03.01.1994 should be treated as not availed. He contended that this letter entitled him to a double encashment. The writ petition filed by him (WP No.1766 of 2022) was dismissed by the single judge on 27.02.2024, against which he preferred the present intra-court appeal under Clause 15 of the Letters Patent. During the hearing, the Division Bench observed that the letter per se would not confer any right for double encashment. The appellant's counsel further submitted that a government clarification allowed re-credit of such leave, while the respondents' counsel sought time to obtain instructions from the department. In view of the need to ascertain the government's specific stand, the court adjourned the matter by two weeks, granting time for response.

Headnote

A) Service Law - Leave Encashment - Double Benefit - Government of India, Export Inspection Agency Rules - Leave encashment of 158 days during 01.01.1986 to 20.01.1994 already availed; at retirement total 285 days encashment paid; appellant sought additional benefit relying on letter dated 29.12.1999 stating earlier encashment be treated as not availed - Held: The letter per se does not confer any right for double encashment; matter adjourned for two weeks for government instructions (Paras 2-4).

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Issue of Consideration

Whether the appellant is entitled to a fresh encashment of leave days already encashed earlier based on the letter dated 29.12.1999?

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Final Decision

The court adjourned the matter by two weeks to allow the respondents to ascertain the government's stand, while observing that the letter relied on by the appellant per se does not confer a right for double encashment benefit.

Law Points

  • Leave encashment rules for central government employees do not permit double benefit
  • departmental letter cannot override statutory or executive instructions without verification
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Case Details

2026 LawText (MAD) (07) 135

WA No. 2344 of 2024

2026-07-01

S. M. Subramaniam, N. Senthilkumar

2026:MHC:2482

Ms.P.Jayalakshmi (Appellant), Mr.K.Subbu Ranga Bharathi (Respondents)

N.Subramanian

The Secretary, Ministry of Commerce and Industry, The Chairman, Additional Secretary, Export Inspection Council (EIC), The Director (I & Q C), Export Inspection Council, The Joint Director, Export Inspection Agency-Chennai, Department Of Personnel And Training, Ministry of Personnel, P G and Pensions

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Nature of Litigation

Writ appeal under Clause 15 of Letters Patent challenging dismissal of writ petition regarding leave encashment.

Remedy Sought

Appellant sought to set aside the writ order dated 27.02.2024 and grant additional leave encashment benefit based on a departmental letter.

Filing Reason

Writ petition WP No.1766 of 2022 was dismissed by single judge on 27.02.2024; aggrieved by the order, the appellant filed the present writ appeal.

Previous Decisions

Writ petition WP No.1766 of 2022 dismissed by the learned Single Judge on 27.02.2024; the present appeal is against that order.

Issues

Whether the appellant is entitled to fresh encashment of leave days already encashed earlier based on the letter dated 29.12.1999?

Submissions/Arguments

Appellant argued that a letter dated 29.12.1999 from an Additional Director stated that earned leave encashed during 01.01.1986 to 03.01.1994 shall be treated as not availed, implying entitlement to fresh encashment. Appellant's counsel also submitted that there is a government clarification allowing re-credit of such leave. Respondents sought time to get instructions from the department on the matter.

Ratio Decidendi

Observation that the letter dated 29.12.1999 per se would not confer any right for double encashment of leave.

Judgment Excerpts

This Court is of the considered view that the said letter per se would not confer any right for the appellant to get the double encashment benefit. The learned counsel for the respondents would submit that further time may be granted to get instructions from the Department.

Procedural History

Writ petition filed as WP No.1766 of 2022 was dismissed by the learned Single Judge on 27.02.2024; appeal filed under Clause 15 of Letters Patent; on 01.07.2026, the Division Bench granted adjournment for two weeks.

Acts & Sections

  • Letters Patent: Clause 15
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High Court High Court of Madras Adjourns Writ Appeal on Leave Encashment for Government Employee. Employee Claimed Additional Encashment Based on Departmental Letter; Court Grants Time to Respondents for Instructions.
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