CAT - Allahabad

Dismissed employee not entitled to earned leave encashment under CCS (Leave) Rules, 1972.

Ramesh Prasad & Anr. v. Union of India & Ors. [Original Application No. 287/2021]

CAT - AllahabadJUDGMENT: 18th February 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicants, Ramesh Prasad and Gulab Singh, were employed as Postal Assistants.

Source reference: no citation

Applicant No. 1 was dismissed from service on 31.10.2019, while Applicant No. 2 was dismissed on 30.11.2019, both following disciplinary proceedings under Rule 14 of the CCS (CCA) Rules for financial irregularities.

Source reference: paras. 3, 4.1

After their dismissal, the applicants sought encashment of their accrued earned leave, which the respondents denied.

Source reference: paras. 3.1, 3.2

The respondents justified the denial based on Rule 9(1) of the CCS (Leave) Rules, 1972, asserting that leave at the credit of a dismissed government servant ceases from the date of dismissal, and there are no departmental rules allowing encashment for dismissed officials.

Source reference: paras. 4.2, 4.4

Aggrieved, the applicants filed the present Original Application.

Source reference: para. 3.3

The legality or validity of the dismissal orders themselves is not under challenge.

Source reference: para. 8
02

Issues

Whether a Government servant, dismissed from service as a penalty, is entitled to encashment of earned leave standing to their credit at the time of dismissal.

Source reference: para. 9
03

Law Applied

Rule 9(1) of the Central Civil Services (Leave) Rules, 1972, which states that "Except as provided in Rule 39 and this rule, any claim to leave to the credit of a Government servant, who is dismissed or removed or who resigns from Government service, ceases from the date of such dismissal or removal or resignation".

Source reference: para. 10

Article 300-A of the Constitution of India concerning deprivation of property by authority of law.

Source reference: para. 11

Fundamental Rule 86(a)(i) regarding leave encashment upon retirement or termination of extension of service.

Source reference: para. 13

The principle from Union of India v. R. Reddappa ((1993) 4 SCC 269) that statutory consequences must follow once a valid penalty is imposed.

Source reference: para. 24
04

Reasoning

The Tribunal found that a plain reading of Rule 9(1) of the CCS (Leave) Rules, 1972, unequivocally mandates that a claim to leave standing to a government servant's credit ceases upon dismissal, unless falling under specific exceptions not applicable in this case.

Source reference: para. 10

Therefore, the leave itself was forfeited by operation of law, precluding any right to encashment.

Source reference: para. 10, 12

The argument that earned leave encashment is a protected right under Article 300-A was rejected, as Rule 9(1) constitutes the "authority of law" permitting such deprivation.

Source reference: para. 11

The reliance on Fundamental Rule 86(a)(i) was deemed misconceived because that rule applies to retirement or termination of extended service, not to punitive dismissal.

Source reference: para. 13

The Tribunal distinguished Apex Court precedent in Jitendra Kumar Srivastava ((2013) 12 SCC 210), noting that in that case, there was no enabling statutory provision for withholding benefits, whereas here, Rule 9(1) expressly authorizes the cessation of leave claims upon dismissal.

Source reference: paras. 16, 17, 18

The Court further relied on Dr. Mukhtiar Singh v. GNCT of Delhi & Ors. (2013 SCC OnLine Del 2473), which held that where applicable service rules provide for lapse of leave upon dismissal, no right to claim leave encashment survives.

Source reference: para. 21
05

Holding

The Tribunal concluded that the applicants, having been dismissed from service by way of a major penalty, are not entitled to encashment of earned leave standing to their credit due to the clear mandate of Rule 9(1) of the CCS (Leave) Rules, 1972.

The impugned orders rejecting the applicants' claim for leave encashment were found to be legal, valid, and in consonance with statutory rules.

Source reference: para. 25

Accordingly, the Original Application was dismissed, with no order as to costs.

Source reference: para. 26, 27
CAT - Allahabad

Original Court PDF

Ramesh Prasad & Anr. v. Union of India & Ors. [Original Application No. 287/2021]

CAT - Allahabad · 18th February 2026

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment