Adhar Singh Kumhar vs The State Of Madhya Pradesh

NEUTRAL CITATION NO. 2026:MPHC-IND:24954
1 WP-2201-2024
IN THE HIGH COURT OF MADHYA PRADESH
AT INDORE

BEFORE
HON'BLE SHRI JUSTICE PAVAN KUMAR DWIVEDI
th
ON THE 7 OF SEPTEMBER, 2026
WRIT PETITION No. 2201 of 2024
ADHAR SINGH KUMHAR
Versus
THE STATE OF MADHYA PRADESH AND OTHERS
Appearance:
Mr.Aditya Choudhary, learned counsel for the petitioner.
Ms.Swati Ukhale, learned Government Advocate for the respondent /
State.
Mr.Kinjal Shrivastava, Advocate with Mr.Amol Shrivastava, learned
counsel for respondents No.5 and 6.
ORDER
The petitioner has filed the present petition for the following reliefs :
"(i) This Hon’ble Court be pleased to stake in consideration the
impugned order dated 03.08.2023 (Annure P/3).

(ii). That, Hon’ble Court may direct the respondent authorities
to conclude the departmental inquiry as more the months have
passed and no initiation has been commenced till now in the
interest of justice.

(iii) To grant any relief or order to which the petitioner is
found entitled to in law and in the ends of justice."
2. The facts of the case are that the petitioner was posted as the Chief
Municipal Officer of the Municipal Council, Satwas, District Dewas from
where he retired on attaining the age of superannuation with effect from
31.03.2023 as per the order dated 02.08.2022 (Annexure P-1). After the
Signature Not Verified
Signed by: ANUSHREE
PANDEY
Signing time: 08-Sep-26
5:07:24 PM

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petitioner retired from service, order was passed on 19.06.2023, whereby it

was held that the petitioner was entitled to leave encashment for a period of
240 days. Thereafter, another order was passed on 03.08.2023, whereby
taking into consideration the period of 240 days for leave encashment,
amount of Rs.11,83,680/- was calculated and became payable to the
petitioner towards leave encashment.
2.1 Despite the aforesaid order dated 03.08.2023, the respondents did
not dispute the petitioner's entitlement to the said amount, however, they
failed to pay the same. The petitioner thereafter submitted representation(s)
and also appeared before the concerned authority for payment of the
aforesaid amount. However, despite the same, the respondents failed to make
the payment, which prompted the petitioner to move this Court by way of the
present petition.
3. Learned counsel for the petitioner submits that there is no dispute
whatsoever in the case of the petitioner. The non-payment of the aforesaid
amount is solely on account of the alleged unavailability of funds despite the
petitioner having retired from service with effect from 31.03.2023. He
submits that the authorities themselves initially passed order on 19.06.2023,
whereby the petitioner's entitlement to leave encashment was determined and
thereafter, by order dated 03.08.2023, the amount payable to the petitioner
was duly calculated and crystallised at Rs.11,83,680/-. However, despite the
lapse of long period of three years, this payment has not been paid in full.
After the petitioner filed the present petition, certain part-payments made in
bits and pieces, totaling to around Rs.4,00,000/- have been paid to the
Signature Not Verified
Signed by: ANUSHREE
PANDEY
Signing time: 08-Sep-26
5:07:24 PM

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petitioner.

3.1 Learned counsel submits that the action of the respondents in
withholding the remaining amount, despite the petitioner's entitlement having
been determined and the amount having been duly quantified, is wholly
unsustainable. He thus submits that proper direction deserves to be issued to
the respondents to make immediate payment of the entire amount as
mentioned above.
4. Per contra, learned counsel appearing for respondents No.5 and 6
submits that the circumstances under which the full payment could not be
made have been explained in the return filed by the said respondents. He
specifically points out to paras 3 and 4 of the return and submits that earlier,
the Municipal Council used to get a grant of Rs.18,00,000/- per month,
which has now been reduced to Rs.9,00,000/- per month. This reduction in
the grant has resulted in the inability of the Municipal Council to make full
payment of the dues payable to its employees including the present
petitioner. He further submits that the Municipal Council is trying to make
payment of Rs.25,000/- to Rs.50,000/- on monthly basis to the petitioner
towards the outstanding dues, so as to clear the same.
5. The State (respondent No.1) has filed its separate return and has
stated that the dispute essentially pertains to respondents No.5 and 6 and
thus, it has nothing to say on the merits of the case. However, the return filed
by the State does not explain as to when it came to know that retired
employee of respondents No.5 and 6 / Municipal Council was not able to get
his retiral dues only on account of the local body not having sufficient funds.
Signature Not Verified
Signed by: ANUSHREE
PANDEY
Signing time: 08-Sep-26
5:07:24 PM

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The return also does not disclose as to what steps have been taken by the

State for amelioration of the situation of the local body so as to ensure
payment of the retiral dues to the petitioner.
6. Considering the submissions as recorded herein above and the facts
of the present case, this Court is of the considered view that it is undisputed
that the petitioner is entitled for leave encashment for a period of 240 days,
as reflected in the order dated 19.06.2023 (Annexure P-2) and that the
consequential amount of Rs.11,83,680/- was quantified vide order dated
03.08.2023 (Annexure P-3). It is also clear that petitioner's entitlement to the
aforesaid amount has not been disputed either by the State or by the local
body. In such circumstances, this Court is of the considered view that the
plea of non-availability of funds cannot be accepted as a justification by a
public authority for withholding the legitimate retiral dues of an employee.
6.1 A public authority is enjoined to ensure that its employees receive
their legitimate dues not only in full but also within a reasonable period of
time. Employee after retirement, sustains himself on the retiral dues payable
to him by the authority. If the same are not paid in timely manner, it may
affect the personal liberty of the person guaranteed under Article 21 of the
Constitution of India.
7. In the present case, without there being any dispute whatsoever, the
petitioner has been running from pillar to post since his retirement on
31.03.2023 up to this date to get his complete retiral dues. As such, the
present petition is disposed of with direction to all the respondents to clear
the retial dues of the petitioner within an outer limit of three months from the
Signature Not Verified
Signed by: ANUSHREE
PANDEY
Signing time: 08-Sep-26
5:07:24 PM

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date of communication of this order.

8. It is hereby made clear that the entire amount of leave encashment
as per Annexure P-3 shall be paid to the petitioner within the aforesaid
period of three months. For ensuring such payment, not only the local body
but also the State shall be responsible for making the necessary
arrangements. It has to be kept in mind that the local body is only a creature
of State. The State has to ensure the financial sustainability of the local body,
it was incumbent upon the State to take appropriate measures to ensure that
the local body had sufficient financial resources to discharge its statutory
obligations, including payment of retiral dues to its employees and if the
funds were not available then measures for restricting expenditure should
have been taken. As such, all the respondents shall be responsible for
complying with the direction given by this order.
9. With the aforesaid, the present petition stands allowed and disposed
of.
Certified copy as per rules.
(PAVAN KUMAR DWIVEDI)
JUDGE
Anushree

Signature Not Verified
Signed by: ANUSHREE
PANDEY
Signing time: 08-Sep-26
5:07:24 PM