DHIR CHAND Vs. STATE OF HARYANA

JUDGEMENT

(1.) Heard counsel for the parties on the issue of leave encashment following the petitioner's dismissal from service upon conviction by the trial court on a criminal charge of corruption with sentence to serve imprisonment. Also perused the file.

(2.) The right to cash value of leave encashment partakes of the character of salary as it is paid in lieu of unutilized leave or earned leave due to an employee every year of service for leave foregone and unspent. It is payable on cessation from service and the sum is exempt from tax. The benefit is a privilege given to encourage employees to desist from truancy. It carries a ceiling of 300 days at the rate of last drawn salary. Once it is part of salary, it cannot be legally withheld except in accordance with rules made in this behalf. Rule 2.5 of the Punjab Civil Services Rules, Volume II, relied upon by the police department to deny benefit of leave encashment to the petitioner does not apply to the facts of this case. Rule 2.5 covers cases of pension and reads as follows:-

(3.) No other provision of law has been brought to the notice of this court by which leave encashment can be denied to a dismissed employee even if he is convicted under section 13 of the Prevention of Corruption Act, 1988. I am told that an appeal against conviction is pending in this court but that is of no grave concern in the present service matter where the only subsisting claim, as noticed in the interim order dated 12.12.2013, is for cash value of Leave Encashment on the day when the employer-employee relationship snaps.