Leave encashment can’t be rejected due to pending case: Orissa HC

The Orissa High Court has observed that a government employee’s unutilized leave encashment claim on his retirement cannot be rejected only because a Vigilance case or disciplinary action is pending against him/her.

Single bench of Justice Aditya Kumar Mohapatra made the observation and stated that leave encashment cannot be rejected on the ground of ‘pendency of a vigilance case and disciplinary proceeding against him.’

Court’s Observation:

“On a careful analysis of the factual background of the present case along with close scrutiny of the legal provisions governing the field of sanction and disbursement of retiral benefits including cash equivalent of unutilized leave salary, this court observes that there is no statutory provision either in the shape of an enactment or rules prohibiting the payment of such amount to the employee who is found to be involved in a judicial proceeding by the time he retires from government service.”

Background of the Case:

The ruling was given considering the case of an Odisha Transport Engineering Service (OTES) cadre officer, who retired from service as inspector, motor vehicles.

On retirement, he approached the department authorities to claim his dues in lieu of unutilized leave encashment. But, the authorities rejected his claim on the grounds that Vigilance case and disciplinary proceedings were pending against him.

He then challenged the decision in the Orissa High Court.