Dismissed Staff Entitled to Encashment of EL/PL: Madras High Court

Employees dismissed from service after the conclusion of disciplinary proceedings initiated against them are also entitled to encashment of ‘Earned/Privilege Leave’ that they had accumulated to their credit over the years, the Madras High Court Bench here has ruled.

Justice D. Hariparanthaman passed the order while allowing a writ petition filed by the dismissed General Manager of Thanjavur District Central Cooperative Bank since he was denied the benefit on the ground that it would be accorded only to those who retire from service on attaining the age of superannuation.

The judge came to the conclusion after taking a cue from a decision rendered by a Full Bench of the Punjab and Haryana High Court on November 9, 2012 wherein it was held that employees can encash their earned leave on the day of retirement irrespective of the pendency of disciplinary proceedings.

“The reason given by the Full Bench is that Earned Leave encashment is a right equal to the right to property guaranteed under Article 300 A of the Constitution and the same cannot be deprived illegally. Hence, the encashment of the same cannot be deprived on dismissal from service,” he said.

Recording that the petitioner, T. Veeravinothan, had 138 days of Earned Leave to his credit since he had joined the bank in 1976 and was dismissed in 2010, just two years before his retirement, the judge directed the bank to disburse the corresponding amount working out to over Rs. 2.28 lakh within six weeks.

The judge came to the conclusion after taking a cue from a decision rendered by a Full Bench of the Punjab and Haryana High Court