( 2025:HHC:29288 ) IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA LPA No. 189/2025 Decided on: 28 .8.2025 Sushma Sood .....Petitioner Versus State of Himachal Pradesh & ors. ….Respondents Coram: The Hon’ble Mr. Justice G.S. Sandhawalia, Chief Justice. The Hon’ble Mr. Justice Ranjan Sharma. Whether approved for reporting?1 For the Petitioner: Mr. M. L. Sharma, Advocate. For the Respondents: Mr. Arsh Rattan, Deputy Advocate General, for respondents No. 1 to 3-State. Mr. Dhananjay Sharma, Advocate, for respondent No.4. ____________________________________________________________ G.S. Sandhawalia, Chief Justice (oral) The only issue, which arises in the present appeal, is regarding the issue of grant of interest on the arrears of leave encashment and balance amount of gratuity. 2 Learned Single Judge, while deciding the petition in favour of the employee as such passed the following directions to grant the benefit under the two heads in terms of the scale which was revised on 1.1.1996:- 11. In light of above discussion, the petition is allowed. The respondents are directed to consider the case of petitioner and to pay her balance amount of leave 1Whether reporters of the local papers may be allowed to see the judgment? Yes. 2 ( 2025:HHC:29288 ) encashment and gratuity in terms with the scale revised w.e.f. 01.01.1996 and also as paid to the employees of the H.P. State Council for Child Welfare. Needful be done within six weeks from today. 12. The petition stands disposed of in the aforesaid terms, so also the pending miscellaneous application(s) if any. 3 In CWPOA No. 4112/2019, decided on 17.10.2023 it is brought to our notice that there was prayer as such to make the payment along with interest @ 12 % per annum, which was lost sight by the learned Single Judge while allowing writ petition. 4 Keeping in view the above, we are of the considered opinion that order is liable to be modified, as admittedly the amount was not paid and the employee had retired on 30.9.2013. Therefore in pursuance to the directions as such the balance amount of leave encashment and gratuity has been paid in terms of the revised scale. 5 Resultantly, falling back to Rule 68 of the CCS (Pension) Rules, wherein it is provided that the interest shall be paid at the rate applicable to General Provident Fund amount in accordance with the instructions issued from time to time, we are of the considered opinion that the interest at the rate of 7.1% per annum would be liable to paid from the date of 3 ( 2025:HHC:29288 ) entitlement i.e. 1.1.2014 keeping in view the fact that State has to be given some grace period to process the dues of the retiree. 6 We are informed that the judgment has been complied with and the amount has been disbursed dehors the interest element. Accordingly, the interest element on the amount paid be calculated and disbursed to the appellant within a period of two months from today. 7 The appeal stands allowed in the aforesaid terms. Pending application(s), if any, also stands disposed of. (G.S. Sandhawalia) Chief Justice (Ranjan Sharma) 28.8.2025 Judge (pankaj)