High Court · 2025

first subm ission, we have perused t he im pugned j udgm ent . The learned Tribunal referred t o Rule 59( 5) of U.P. St at e Sugar Corporat ion General Service Rules, 1988. Rule 59 of t he said Rules is ext ract ed below: - “ ( 1) Only earned leave is encashable, and no ot her kind of leave is en cashable. ( 2) Encashm ent will be allowed t o an em ployee only once in a calendar year. ( 3) Em ployees drawing basic pay upt o Rs 2900/ - will be ent it led t o en- cashm ent of 30 days earned leave once in a calendar year; Provided t hat earned leave at t he credit of t he em ployee is not less t han 90 days at t he t im e of encashm ent . ( 4) Em ployees drawing basic pay m ore t han Rs. 2900/ - will be ent it led t o encashm ent of 15 days earned leave once in a calendar year; provided t hat earned leave at t he credit of t he em ployee is not less t han 75 days at t he t im e of encashm ent . ( 5) Not wit hst anding anyt hing cont ained in sub rule ( 2) & ( 3) , where an em ployee ret ires from t he services of t he Corporat ion he shall be paid salary for t he num ber of days for which earned leave is due t o him on his ret irem ent . No encashm ent of balance earned leave t o an em ployee will be adm issible where t he services of an em ployee are t erm inat ed or t he em ploym ent of t he Corporat ion. t erm inat es em ployee 2 t o ( 6) The aut horit y com pet ent t o sanct ion earned t he concerning em ployee shall be com pet ent t o issue suo m ot o order sanct ioning encashm ent of earned t he provisions of sub- rule ( 5) . leave under ( 7) The earned leave st anding at t he credit of an em ployee dying while in service will be encashed and paid t o his nom inee, if any , failing w hich t o his/ her legal heirs at t he rat e of service. t he deceased while last drawn by ( 8) No deduct ions, ot her t han in- com e- t ax will be m ade from t he am ount payable t o an em ployee on encashm ent of leave. I n case of ret irem ent , ret renchm ent , t erm inat ion or deat h, however, t he Corporat ion's dues shall be recovered from t he am ount of encashm ent . ( 9) For t he purposes of t his rule " salary" shall be deem ed t o m ean basic pay and dearness allowance, if adm issible and shall not include house rent allowance or any ot her t ype of allowance.”

4. Careful perusal of Rule 59( 5) of t he aforesaid Rules reveals t hat encashm ent of balance earned leaves t o an em ployee shall not be adm issible where service of such em ployee is eit her t erm inat ed by em ployer em ployee him self t erm inat es em ploym ent wit h t he Corporat ion.

5. The only m ode of t erm inat ion of em ploym ent by an em ployee would be by way of resignat ion, whereas em ployer can t erm inat e em ploym ent by im posing different kinds of punishm ent and also by com pulsorily ret iring an em ployee.

6. Thus, t he view t aken by learned Tribunal t hat upon resignat ion, an em ployee forfeit s right s t o get leave encashm ent cannot be fault ed. Thus, t here is no scope for int erference wit h t he im pugned j udgm ent . 3

7. As regards t o second subm ission t hat one sim ilarly sit uat ed person, nam ely, Dr. N.K. Kapoor was given leave encashm ent even aft er his resignat ion from service, we perm it pet it ioner t o m ake represent at ion. I f represent at ion claim ing parit y wit h Dr. N.K. Kapoor is m ade by t he pet it ioner, t he sam e shall be dealt wit h as per law by Execut ive Direct or, Kichha Sugar Com pany Lim it ed, wit hin a period of 10 weeks from t he dat e of present at ion of cert ified copy of t his order. ( Su b h a sh Up a d h y a y , J.) ( M a n o j K u m a r Ti w a r i , J.) 12.08.2025 SS SUKHBANT SINGH DN: c=IN, o=HIGH COURT OF UTTARAKHAND, ou=HIGH COURT OF UTTARAKHAND, 2.5.4.20=71978f9c61bfde0ba69967c787b1764ea7bc7dd129a8a6 380d49b1885e628615, postalCode=263001, st=UTTARAKHAND, serialNumber=2D8B71B8D8E345F6B7F95B1DD4FB4BEBD2B7D7 2C42261361AED33172F152148D, cn=SUKHBANT SINGH 4