CAT - Chennai

Respondents directed to pay interest on leave encashment from due date, not compliance date.

C MUNIRAJ vs M/O DEFENCE

CAT - ChennaiJUDGMENT: February 23, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicant filed MA 310/00 821/2025 seeking clarification of an order dated May 7, 2024, passed in OA 310/00061/2020

Source reference: p.3

The original order stipulated the release of Rs. 7,16,016/- to the applicant

Source reference: p.3

The respondents complied with the Tribunal's orders but granted interest only from the date of the order, May 7, 2024, leading the applicant to seek clarification for interest payment from May 31, 2015

Source reference: p.3
02

Issues

Whether clarification is required regarding the payment of interest on the amount of Rs. 7,16,016/- from May 31, 2015

Source reference: p.3
03

Law Applied

The Tribunal applied the principle of judicial clarification to ensure the effective implementation of its prior orders, allowing for the re-statement of the operative portion of the previous order for better understanding and compliance

Source reference: p.3
04

Reasoning

The Tribunal noted that no clarification was strictly required for Para 7 of its previous order

Source reference: p.3

for the sake of better understanding for the respondents, the operative portion of the order was re-stated

Source reference: p.3

This re-statement explicitly directed the respondents to release the Leave Encashment of Rs. 7,16,016/-, along with interest at 6% from May 31, 2015, until the realization of the amount, and to calculate and release the interest portion within four weeks from the receipt of the order copy

Source reference: p.3-4

This action clarified the ambiguity perceived by the applicant regarding the commencement date for interest calculation, ensuring that the initial intent of the order, concerning the accrual of interest, was clearly understood and implemented

Source reference: p.3
05

Holding

The Tribunal allowed MA 310/00 821/2025 and directed that the operative portion of its order dated May 7, 2024, in OA 310/00061/2020, should be read as directing the respondents to release the Leave Encashment of Rs. 7,16,016/- to the applicant with interest at 6% from May 31, 2015, until realization

The respondents were further directed to calculate the interest and release the amount within four weeks from the date of receipt of the order copy

Source reference: p.4
CAT - Chennai

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C MUNIRAJvsM/O DEFENCE

CAT - Chennai · February 23, 2026

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