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IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 02.12.2010 CORAM: THE HONOURABLE MR.JUSTICE P.JYOTHIMANI W.P.No.20805 of 2009 P.Sampath ..Petitioner -Vs- 1.The Secretary to Government Housing and Urban Development Department, Fort St.George Chennai-600 009 2.The Managing Director Tamil Nadu Housing Board 493, Anna Salai Nandanam Chennai-600 035 ..Respondents Writ Petition filed under Article 226 of the Constitution of India for the issue of Writ of Mandamus directing the respondents herein to sanction the encashment of leave on private affairs due to the petitioner as per G.O.Ms.No.488 Finance (Pension) Department dated 12.08.1996 and disburse the arrears together with interest at the rate of 18% on the belated arrears within a short date that may be fixed by this Court. For petitioner : Mr.P.V.Rangarajan For respondents : for R1 : Mr.N.Senthil Kumar Addl.Govt.Pleader for R2 : Mr.A.Vijayakumar O R D E R
Heard the learned counsel for the petitioner, Mr.N.Senthil Kumar, learned Additional Government Pleader for the first respondent and Mr.A.Vijayakumar, counsel for the second respondent – Tamil Nadu Housing Board.
2. The writ petitioner has retired from service on 30.11.2000 having served as an Assistant Revenue Officer under the Tamil Nadu Housing Board. However, the amount due to him on the encashment of leave on private affairs, which he is entitled in accordance with G.O.Ms.No.488, Finance (Pension) Department dated 12.08.1996 has not been disbursed. Therefore, the present writ petition has been filed for a direction against the respondents to pay the said amount along with interest at 18% per annum.
3. Mr.A.Vijayakumar, learned counsel for the Tamil Nadu Housing Board has produced a memo issued by the Administrative Officer, Tamil Nadu Housing Board dated 08.11.2010, in and by which, the Housing Board directed that the petitioner has to be paid the said amount regarding encashment of un-earned leave on private affairs. However, there is no proper explanation for the delayed payment, as the petitioner had retired on 30.11.2000 and why it has taken 10 years to pass an order sanctioning the amount due.
4. Under similar circumstances, in respect of the Tamil Nadu Housing Board itself, regarding the benefit of encashment of leave, this court passed an order in P.V.Mahadevan Vs. The Secretary to Government and another, by order dated 30.09.2009 in W.P.No.582 of 2009 directing the Housing Board to pay the amount along with interest 18% per annum. That order was based on the judgment of the Honourable Apex Court in Vijay L.Malrotra Vs. State of U.P., and another reported in 2000 (2) S.L.R. 686, wherein, the Supreme Court while dealing with encashment of leave has held that it is expected that all the payments of the retiral benefits should be paid on the date of retirement or soon thereafter, if for some unforeseen circumstances the payment could not be made on the date of retirement. In the absence of any proper explanation of delay, the Supreme Court has granted 18% interest per annum in the following terms:-
” 4. In this case, there is absolutely no reason or justification for not making the payment for months together. We, therefore, direct the respondent to pay to the applicant within 12 weeks from today simple interest at the rate of 18% with effect from the date of her retirement, i.e., 31st August, 1997 till the date of payments.”
5. Following the same, considering the facts and circumstances of the case that the Tamil Nadu Housing Board has taken nearly 10 years for the sanction of encashment of leave on private affairs, I am of the view that the petitioner is entitled for interest at 18% per annum. In these circumstances, the writ petition is allowed with a direction to the second respondent- Tamil Nadu Housing Board to pay the entire amount due to the petitioner on encashment of leave on private affairs within a period of four weeks from the date of receipt of a copy of this order along with 18% interest per annum from the date on which it is due i.e., from the date of retirement till the date of payment. No costs.
1.The Secretary to Government
Housing and Urban Development
Department, Fort St.George
2.The Managing Director
Tamil Nadu Housing Board
493, Anna Salai
W.P.No.20805 of 2009