Case Note & Summary
The case arose from a writ petition filed by ten employees of the Institute of Road Transport (IRT) under Article 226 of the Constitution of India. They sought a writ of certiorarified mandamus to quash the proceedings dated 24.01.2005 issued by the Director of IRT, which had withdrawn encashment of sick leave with retrospective effect from 01.09.1998 and deleted Sub Rule (f) of Rule 4 under Chapter 3 (Leave Rules) of the Service Rules of IRT. The petitioners also sought a direction to the respondents to pay arrears of encashment of sick leave credited in their accounts accumulated till 24.01.2005. During the hearing, the Special Government Pleader for the first respondent and the counsel for the petitioners both submitted that the issue raised was squarely covered by a prior Division Bench order in W.A.Nos.718 and 720 of 2022 and W.P.Nos.6565 of 2023 etc., batch dated 12.06.2024. That order had dealt with similar challenges where the employer had issued proceedings with retrospective effect. The Division Bench had held that employees were entitled to encashment of sick leave from the date of their appointment until 01.09.1998, subject to eligibility criteria. It further directed the employer to pay interest at 4% per annum on amounts settled belatedly, if not already paid. In the present case, the court noted that the petitioners were similarly placed, and therefore disposed of the writ petition in terms of the earlier order. The court explicitly applied the reasoning and directions contained in paragraphs 3, 4 and 5 of the Division Bench order. The core legal question was whether the retrospective withdrawal of sick leave encashment violated the employees' accrued rights, but the court did not re-examine the issue, instead relying on the binding precedent. Arguments were minimal as both sides agreed on the applicability of the precedent. The decision resulted in the disposal of the writ petition with no separate costs, and the connected miscellaneous petitions were closed. The judgment underscores the principle of judicial consistency and the binding nature of coordinate bench decisions on identical facts.
Headnote
A) Service Law - Leave Encashment - Entitlement to sick leave encashment under Service Rules of Institute of Road Transport - Constitution of India, 1950, Article 226 - The petitioners challenged the withdrawal of encashment of sick leave with retrospective effect and deletion of Sub Rule (f) of Rule 4 under Chapter 3 of the Service Rules. Held, following the order of the Division Bench, the petitioners are similarly placed and entitled to relief; the respondents are directed to pay arrears of sick leave encashment from appointment till 01.09.1998, with interest at 4% per annum on belated payments, if not already settled (Paras 2-4).
Issue of Consideration
Whether the writ petition is covered by the earlier Division Bench order and whether the petitioners are entitled to the same relief of encashment of sick leave and interest on delayed payment
Final Decision
The writ petition is disposed of in tune with the observations of the Division Bench order dated 12.06.2024, and consequently the miscellaneous petitions are closed with no costs
Law Points
- Legal points not extracted
- Sick leave encashment eligibility
- retrospective withdrawal of service benefits
- entitlement to interest on belated payment
- binding effect of coordinate bench decisions
