- 1 - NC: 2025:KHC:3697 WP No. 15511 of 2018 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE S.G.PANDIT WRIT PETITION NO. 15511 OF 2018 (S-R) BETWEEN: SRI V. L. JAYARAM S/O. LATE LAKSHMAIAH, AGED ABOUT 63 YEARS, R/O 156, 13TH MAIN, 2ND BLOCK, HMT LAYOUT, VIDYARANYAPURA, BENGALURU-560097. …PETITIONER (BY SRI. ROOPESHA B., ADV.) AND: 1. HINDUSTAN MACHINE TOOLS LTD (MBX) NO.59, HMT BHAVAN BELLARY ROAD BENGALURU560032 REP. BY ITS CHAIRMAN AND MANAGING DIRECTOR. 2. THE GENERAL MANAGER HINDUSTAN MACHINE TOOLS LTD., (HMT) BENGALURU COMPLEX, JALAHALLI, BENGALURU-560013. …RESPONDENTS (BY SRI. RAYAPPA Y HADAGALI, ADV. FOR R1 & R2) THIS PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE LETTER DATED 17.11.2017 ISSUED BY THE R-2 VIDE ANNX-J Digitally signed by MARIGANGAIAH PREMAKUMARI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:3697 WP No. 15511 of 2018 AND DIRECT THE RESPONDENTS TO CONSIDER THE REPRESENTATION FILED BY THE PETITIONER DATED 27.02.2018 VIDE ANNX-K AND DIRECT THE RESPONDENTS TO RELEASE INTEREST ON GRATUITY AMOUNT ALONG WITH EARNED LEAVE ENCASHMENT AMOUNT IN ACCORDANCE WITH LAW. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT ORAL ORDER The petitioner, a retired employee of the first respondent is before this Court, under Article 226 of the Constitution of India praying to quash Annexure-J, the communication dated 17.11.2017 wherein the petitioner was informed that encashment of leave benefit would be paid as soon as assistance is received from the Government of India and the petitioner has also sought for a writ of mandamus directing the respondents to consider the representation filed by the petitioner on 27.02.2018 (Annexure-K) and also to direct the respondents to pay interest on encashment amount. - 3 - NC: 2025:KHC:3697 WP No. 15511 of 2018 2. Heard learned counsel Sri.B.Roopesha for the petitioner and Sri.Rayappa Hadagali, learned counsel for the respondents. Perused the writ petition papers. 3. Learned counsel for the petitioner would submit that the petitioner retired from service on attaining the age of superannuation on 31.10.2013. On his retirement, the petitioner was entitled to gratuity as well as other pensionary benefits including leave encashment. It is his submission that gratuity was paid and that too belatedly and encashment of leave is not paid and under communication dated 17.11.2017 which is impugned in this writ petition, the petitioner was informed that the same would be paid as soon as the assistance is received from the Government of India. Learned counsel would further submit that till this date, encashment of leave benefit is not paid to the petitioner and the petitioner would be entitled for the said benefit immediately on his retirement from service, which the respondents have not yet paid. In that regard, learned counsel placed reliance - 4 - NC: 2025:KHC:3697 WP No. 15511 of 2018 on the decision of this Court in W.P.No.1905/2022 and connected writ petitions disposed of on 31.10.2022, and W.P.No.5346/2022 disposed of on 10.11.2022 as well as in W.P.No.1283/2024 disposed of on 02.04.2024, wherein this Court also directed payment of interest at the rate of 6% p.a. on the earned leave encashment. 4. Per contra, learned counsel Sri.Rayappa Hadagali appearing for respondents, referring to statement of objections filed on behalf of the respondents submits that during the pendency of the writ petition, interest on belated payment of gratuity is already paid. Further, he submits that encashment of leave benefit would be paid within a reasonable time. 5. Having heard the leaned counsel for the parties and on perusal of the writ petition papers, I am of the view that the petitioner would be entitled for a writ of mandamus directing the respondents to pay leave encashment benefit, within a reasonable time. - 5 - NC: 2025:KHC:3697 WP No. 15511 of 2018 6. The petitioner retired from service on attaining the age of 58 years on 31.10.2013. Till this date, encashment of earned leave benefit is not paid to the petitioner. The petitioner is entitled to the said benefit immediately on his retirement. Non-settling of encashment of leave benefit in terms of Leave and Leave Encashment Rules is unreasonable and arbitrary. In terms of Rule 7.2.1 of the said Rules, the petitioner would be entitled for earned leave encashment as on the date of his superannuation. 7. The Hon’ble Apex Court in a decision reported in JAGDISH PRASAD SAINI v/s STATE OF RAJASTAN AND OTHERS reported in 2022 SCC Online 1298 has made it clear that earned leave encashment would be part of the salary. 8. For the reasons recorded above, the following order: (i) The writ petition is allowed. - 6 - NC: 2025:KHC:3697 WP No. 15511 of 2018 (ii) The communication bearing No.HRM/REP/ Gratuity/2017 dated 17.11.2017 (Annexure-J) is quashed. (iii) The respondents are directed to pay and settle earned leave encashment of the petitioner, within four months from today, with interest at the rate of 6% p.a. Sd/- (S.G.PANDIT) JUDGE MPK CT:bms List No.: 1 Sl No.: 1