PARAMBIR SINGH DUGGAL Vs. PUNJAB GRAMIN BANK

JUDGEMENT

(1.) The present civil writ petition has been filed under Article 226 of the Constitution of India for issuance of a writ in the nature of certiorari for quashing the order dtd. 16/1/2026 (Annexure P-8) passed by the respondents. Further, for issuance of a writ in the nature of mandamus directing the respondents to pay interest to the petitioners on the amount of leave encashment.

(2.) Learned counsel for the petitioners inter alia contends that the rejection of the claim of the petitioners to interest is contrary to the judgment rendered by this Court in CWP No.103 of 2021 titled as Rajiv Soi Vs. Punjab Gramin Bank, Kapurthala and others decided on 5/9/2023 (Annexure P-3) in which interest @ 6% per annum on the leave encashment has been allowed. The aforesaid judgment has been further upheld by the Division Bench of this Court passed in LPA No.1814 of 2024 titled as Punjab Gramin Bank, Kapurthala and other Vs. Rajiv Soi decided on 16/9/2024 (Annexure P-4) by dismissing the intra Court appeal. Further, once the respondent-Bank has granted interest on account of delay to the identically circumstanced employees, the petitioners cannot be denied the benefit of interest in the same terms.

(3.) Per contra, learned counsel for the respondent-Bank reiterates the speaking order dtd. 16/1/2026 (Annexure P-8) and relies upon the notification dtd. 8/7/2024 (Annexure P-2/1) to submit that imposition of interest is not justified, inasmuch as the petitioners had voluntarily retired prior to 8/7/2024.