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Judgment
SHARAD KUMAR SHARMA, J.
The petitioner is a Corporation, who has given challenge to the award dated 17.09.2016, as rendered by the Presiding Officer, Labour Court,
Haridwar in proceedings under Section 33-C (2) of the Industrial Disputes Act, 1947 which was registered as Civil Misc. Dispute No. 19 of 2016.
While rendering the impugned award, the issue pertaining to the payment of Leave Encashment for the period of 300 days was adjudicated in favour
of the Workman/respondent. While deciding the issue, the learned Labour Court has held that the workman has rendered his services w.e.f.
04.04.1976 till he attained the age of superannuation on 31.07.2015.
It has been further held that in accordance with last pay drawn by him i.e. of Rs. 4,14,070/-, at the time of retirement, vide order no. 2284 dated
14.07.2015, he was held entitled for payment of 300 days’ Leave Encashment, which stood approved by the Corporation by the aforesaid letter,
which was quantified as Rs. 4,14,070/-.
In view of the letter dated 14.07.2015, as a matter of fact, their exists no controversy regards liability of respondent, and as such, pertaining to the
entitlement of the Workman / respondent to receive the Leave Encashment for the aforesaid period in view of the admitted case of the petitioner.
Consequently, by the impugned award and as a result thereto, the petitioner has been held liable to pay the amount of Rs. 4,14,070/- (Four Lakhs
Fourteen Thousand Seventy Only) to the respondent.
On scrutiny of the grounds taken in the writ petition, precisely as contained in grounds D and E, the concern expressed by the petitioner was in
relation to the part of the award, which relates to levying of interest at the rate of 12 per cent per annum, in event, if there is failure on the part of
petitioner to honour the award within a period of 30 days from the date of award.
Having heard the learned counsel for the parties and taking into consideration the admitted position and the fact that the Corporation itself has
sanctioned the Leave Encashment vide letter dated 14.07.2015., it no more remains an issue to be adjudicated upon pertaining to the entitlement of the
petitioner to the payment of 300 days’ leave encashment and once the said aspect stands settled, obviously the Corporation has to honour the
payment of Leave Encashment, as approved by them.
This Court feels that the pendency of the proceedings and the time consumed therein ought not to entail liability of interest on the Corporation. In
that eventuality, while affirming the award dated 17.09.2016 insofar as it relates to the payment of Leave Encashment, as settled therein, the same is
modified to the extent that if the petitioner pays the amount, as awarded by award dated 17.09.2016 towards Leave Encashment within a period of 30
days from today, the Corporation would not be liable to pay any interest from the period 17.09.2016 till the extended period, as granted to them by
today’s judgment.
Subject to the above observations, the writ petition partly succeeds.
However, there would be no order as to costs.