{"id":324046,"date":"2024-06-11T12:00:11","date_gmt":"2024-06-11T06:30:11","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=324046"},"modified":"2024-06-14T11:10:37","modified_gmt":"2024-06-14T05:40:37","slug":"entitlement-to-leave-encashment-is-integral-to-fundamental-rights-karnataka-high-court-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/06\/11\/entitlement-to-leave-encashment-is-integral-to-fundamental-rights-karnataka-high-court-legal-news\/","title":{"rendered":"\u201cLeave encashment can\u2019t be viewed as discretionary bounties but as legal rights enforceable under the Constitution\u201d: Karnataka HC"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Karnataka High Court:<\/span> In a writ petition filed under articles <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001574969\" target=\"_blank\" rel=\"noopener\">226<\/a> &amp; <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001574971\" target=\"_blank\" rel=\"noopener\">227<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726967\" target=\"_blank\" rel=\"noopener\">Constitution<\/a>, praying to direct the respondents to grant\/clear arrears of encashment of earned leave, the bench of <span style=\"font-weight: bold;\">Sachin Shankar, J.*<\/span>, opined that leave encashment is not a discretionary bounty and is a legal right enforceable under the Constitution. Emphasizing that entitlement to leave encashment is integral to the fundamental rights guaranteed under the Constitution, the Court stated that administrative instructions, lacking the force of law, cannot override the constitutional protections and deprive individuals of their entitlements as mandated by Article <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001575115\" target=\"_blank\" rel=\"noopener\">300-A<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726967\" target=\"_blank\" rel=\"noopener\">Constitution<\/a>.<\/p>\n<p style=\"font-weight: bold;\">BACKGROUND<\/p>\n<p style=\"margin-bottom: 3%;\">The petitioner, who served as a waterman, was not paid his earned leave encashment upon his retirement. Despite clear directives from the Zilla Panchayath and the Taluka Panchayath, the Gram Panchayath released only a fraction of the earned leave amounting to Rs. 70,000\/-, leaving an outstanding balance of Rs. 1,32,200.<\/p>\n<p style=\"margin-bottom: 3%;\">Several objections were raised, disputing the petitioner&#8217;s employment status. The Gram Panchayath contended that the petitioner was merely a temporary employee and raised doubts regarding the authenticity of the documents furnished by the petitioner.<\/p>\n<p style=\"font-weight: bold;\">DECISION &amp; ANALYSIS<\/p>\n<p style=\"margin-bottom: 3%;\">The Court, after an exhaustive examination of the records, documents, and submissions made by both parties, stated that the Gram Panchayath&#8217;s contention was devoid of merit and lacked any substantive evidence to support its claims. It stated that the petitioner&#8217;s service record, spanning over several years and across different administrative units, unequivocally established his continuous employment which is also corroborated by the pensionary benefits extended to the petitioner by the Grama Panchayath upon his superannuation.<\/p>\n<p style=\"margin-bottom: 3%;\">Placing reliance on, <span style=\"font-style: italic;\">Jagdish Prasad Saini<\/span> v. <span style=\"font-style: italic;\">State of Rajasthan<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/lXhrEpJZ\" target=\"_blank\" rel=\"noopener\">2022 SCC OnLine SC 1296<\/a>, in which the Supreme Court categorically held leave encashment to be an integral part of the employee&#8217;s salary, the court emphasized that authorities cannot absolve themselves of their statutory obligations towards discharging the leave encashment dues of retiring employees.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court, on the basis of the decision of the Supreme Court in, <span style=\"font-style: italic;\">Deokinandan Prasad<\/span> v. <span style=\"font-style: italic;\">State of Bihar<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/VCaS0K6y\" target=\"_blank\" rel=\"noopener\">(1971) 2 SCC 330<\/a>, rejected the antiquated notion of the benefits being mere gratuitous payments subject to the discretionary will of the employer. Instead, it held that pension and gratuity are integral to fundamental rights enshrined under Article <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001574926\" target=\"_blank\" rel=\"noopener\">19(1)(f)<\/a> and Article <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001575125\" target=\"_blank\" rel=\"noopener\">31(1)<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726967\" target=\"_blank\" rel=\"noopener\">Constitution<\/a>, which safeguard an individual&#8217;s economic and personal liberties.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court, while perusing Article 300-A of the Constitution, held that an attempt to withhold or curtail these entitlements solely on administrative directives would be unconstitutional.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court relied onto Articles <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001574926\" target=\"_blank\" rel=\"noopener\">19(1)(f)<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001574949\" target=\"_blank\" rel=\"noopener\">21(1)<\/a> and <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001575115\" target=\"_blank\" rel=\"noopener\">300-A<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726967\" target=\"_blank\" rel=\"noopener\">Constitution<\/a> and granted the petitioner his earned leave encashment. Consequently, allowing the petition, the Court directed the Gram Panchayath to disburse the outstanding earned leave encashment with 6% interest within three months.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">H Channaiah v. Chief Executive Officer, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/5u298Vtu\" target=\"_blank\" rel=\"noopener\">2024 SCC OnLine Kar 54<\/a>, decided on 25-04-2024<\/span>]<\/p>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">*Order by Justice Sachin Shankar<\/span><\/strong><\/p>\n<hr\/>\n<p>Advocates who appeared in this case :<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the Petitioner:<\/span> Babu Rao .M, Advocate<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the Respondents:<\/span> A. Nagarajappa, AGA<\/p>\n<h3 style=\"color: #000080;\">Buy Constitution of India &nbsp;<a href=\"https:\/\/www.ebcwebstore.com\/product\/the-constitution-of-india-coat-pocket-edition?products_id=100647\" target=\"_blank\" rel=\"noopener\">HERE<\/a><\/h3>\n<p style=\"margin-bottom: 3%;\"><a href=\"https:\/\/www.ebcwebstore.com\/product\/the-constitution-of-india-coat-pocket-edition?products_id=100647\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/s3.amazonaws.com\/ebcwebstore\/images\/the-constitution-of-india-coat-pocket-edition-Gopal-Sankaranarayanan-ebc-front-cover.JPG\" alt=\"Constitution of India\" width=\"300\" height=\"200\" class=\"aligncenter size-large wp-image-294438\" \/><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">The Court opined that entitlement to leave encashment is integral to the fundamental rights enshrined under Art. 19(1)(f) and Art. 31 of the Constitution and administrative instruction lacking the force of law cannot override constitutional protections.<\/p>\n","protected":false},"author":3,"featured_media":316069,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[34216,3268,28334,32385,2785],"class_list":["post-324046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-article-300-a","tag-Fundamental_Rights","tag-karnataka-high-court","tag-leave-encashment","tag-retirement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Leave Encashment is a legal right enforceable under the Constitution: Karnataka HC | SCC Times<\/title>\n<meta name=\"description\" content=\"Karnataka High Court held leave 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