Hoshiar Singh v. Secretary, Department of Education, Chandigarh Administration
2016-07-19
KULDIP SINGH
body2016
DigiLaw.ai
JUDGMENT Mr. Kuldip Singh, J.:- The petitioners, who are the retired employees of various Government Aided Privately Managed Schools of Union Territory of Chandigarh, namely, DAV Senior Secondary School (Lahore), Sector-8, Chandigarh, Ishwar Singh Dev Smaj Senior Secondary School, Sector-21-C, Chandigarh and S.D. High School, Sector-24, Chandigarh, have filed the present writ petition for issuance of writ of mandamus, directing the respondents to grant the benefit of leave encashment to the petitioners in view of the Instructions issued by the respondents from time to time and in view of decision of the Hon’ble Supreme Court in Civil Appeal No. 9166 of 2003, titled as State of Rajasthan and another Versus S.R. Hr. Sec. School Lachhmangarh and others, decided on 15.9.2004( Annexure-P-13). They also claim 12% per annum interest on the delayed payment from the date when it became due till its realization. The petitioners were working under the control of respondents-Institutions and retired on attaining the age of superannuation. They state that they are entitled to the benefit of leave encashment. According to the petitioners, one R.K. Jindal, who worked as Principal in BBMB DAV Public School, Talwara Township, retired from the service on attaining the age of superannuation and the Management released the retiral benefits to him including benefit of leave encashment, vide letter dated 15.4.2002 (Annexure-P-1). It is further claimed that the Sub Committee of the DAV Managing Committee held the meeting dated 2.12.200 at 2:30 PM, to prepare the leave encashment rules as per the recommendation of the members of the Committee, considering the matter of leave encashment, vide Annexure-P-2. The recommendations were accepted by the Sub Committee of the DAV Managing committee in the meeting held on 5.8.2008. It is further stated that as per the information received under Right to Information Act from the Assistant Controller (F and A)-cum-CPIO, O/o Director Public Instructions (School), Chandigarh Administration, U.T., vide letter dated 10.3.2010 , the leave encashment has been given to the employees of Government Aided Privately Managed Schools of Union Territory, Chandigarh, as per the Punjab Government Instructions No. 10.36/89-4FPI/2033, dated 8.3.1990. The true typed copies of letter dated 10.3.2010 and Instructions dated 8.3.1990 are Annexure-P-5 and Annexure-P-6 respectively.
The true typed copies of letter dated 10.3.2010 and Instructions dated 8.3.1990 are Annexure-P-5 and Annexure-P-6 respectively. As per the clarification, vide letter dated 22.3.2011 (Annexure-P-9), issued on 2.6.2010 by the Assistant Controller, O/o Director Public Instructions (School), Chandigarh, the payment of leave encashment to the aided school teachers is to be paid by the Management itself. It is further stated that the Director Public Instructions (School), Chanidgarh, had written to the Principal, DAV Senior Secondary School (Lahore), Sector-8, Chandigarh, stating that the payment of the leave encashment to the teachers of the aided schools is to be paid by the Management itself. The petitioners issued legal notices dated 20.9.2011 (Annexures-P-10 and P-11) to the respondents. In response to the said legal notices, the Management of I.S. Dev Smaj Senior Secondary School, Sector- 21-C, Chandigarh, clarified that the payment of leave encashment will be released as and when the same will be received from the Chandigarh Amdinistration. 2. In the written statement filed by respondents No. 1 and 2, the Chandigarh Administration took the stand that the petitioners are not eligible for grant of benefit of leave encashment as the same is not admissible from the Chandigarh Administration, Education Department in the absence of any specific orders in this regard by the Education Department, as per the clarification received from the DPI (S), Punjab, vide letter dated 8.12.2010. It is stated that the Department is releasing 95% grant-in-aid, which includes salary and allowances to all the seven Aided Schools, as per the list Annexure-R-II. The case of R.K. Jindal, Principal, BBMB DAV School Public School, Talwara Township is different from the case of the petitioners as the said School is in the State of Punjab and not in the Union Territory, Chandigarh. The Chandigarh Administration does not follow the decision taken by any individual management functioning in the State of Punjab. The Department had informed the Principal, DAV Senior Secondary School, Sector-8, Chandigarh, vide letter dated 2.6.2010, that as per the Instructions dated 3.6.1998, issued by the office, the payment of leave encashment to the aided school teachers is to be paid by the Management itself after completing the required formalities in this regard. It is stated that the decision of the DAV College Management Committee, New Delhi, is not binding upon the Department as no nominee of the Department was present in the meeting held there on 2.12.2000.
It is stated that the decision of the DAV College Management Committee, New Delhi, is not binding upon the Department as no nominee of the Department was present in the meeting held there on 2.12.2000. It was admitted that, vide letter dated 2.6.2010, the payment of leave encashment to the aided school teachers is to be paid by the Management itself and not by the Department. The Department has not issued any order for grant of leave encashment to the retirees of Aided Schools of U.T. Chandigarh and based on uniform decision, the benefit of leave encashment cannot be released to any individual school. 3. The Management of the DAV College/School i.e. respondents No. 3 and 4 in the written statement took the plea that as per the decision of the Hon’ble Supreme Court of India, the parity between employees of Government schools and Non-Government Schools can only be claimed in the matter of pay and dearness allowance and not for any other allowance or benefit. The encashment of earned leave is concession, which cannot be claimed as a matter of right. There is no statutory requirement of encashing earned leave. It was stated that the decision taken by the DAV College Managing Committee on 5.8.2008 (Annexure-P-4) pertains to the Colleges and not to the Schools. It is stated that grant-in-aid to the extent of 95% is released to the Management. The respondents No. 1 and 2 is to first sanction/grant permission for release of grant-in-aid to the extent of 95% to enable the Management to release the concession of leave encashment. The decision as claimed was denied. 4. Respondents No. 5 and 6 i.e. the Management of I.S. Dev Smaj Senior Secondary School, Sector-21-C, Chandigarh, and the Management of S.D. High School, Sector-24, Chandigarh, also took the plea that the parity between the employees of the Government Schools and Non-Government Schools can only be claimed in the matter of pay and dearness allowance and not for any other allowance. It was further pleaded that respondents No. 1 and 2 are to first grant permission to release the grant-in-aid to the extent of 95% to enable the answering-respondents to release the concession of leave encashment. The decision taken by the DAV Management is not binding upon other managements.
It was further pleaded that respondents No. 1 and 2 are to first grant permission to release the grant-in-aid to the extent of 95% to enable the answering-respondents to release the concession of leave encashment. The decision taken by the DAV Management is not binding upon other managements. The respondents No. 1 and 2 have declined to give grant-in-aid for payment of leave encashment and have taken the view that it is to be paid by the Management itself. The leave encashment is a concession, which cannot be claimed as a matter of right. 5. I have heard the learned counsel for the petitioners, the learned counsel for respondents No. 1 and 2 i.e. Chandigarh Administration, the learned senior counsel for respondents No. 3 and 4 i.e. the Management of DAV College/School, the learned counsel for respondent No. 5 i.e. The Management of I.S. Dev Smaj Senior Secondary School, the learned counsel for respondent No. 6 i.e. the Management of S.D. High School and have also carefully gone through the file. 6. The short question arising for consideration is as to whether the employees of the Government Aided Schools of Union Territory, Chandigarh, on their retirement are entitled to encashment of earned leaves? 7. The perusal of list (Annexure-R-II) shows that there are seven such aided schools in Union Territory of Chandigarh, which include DAV Senior Secondary School (Lahore), Sector-8, Chandigarh, I.S. Dev Smaj Senior Secondary School, Sector-21-C, Chandigarh and S.D. High School, Sector-24, Chandigarh, which are arrayed as respondents in the present case. Regarding the DAV Magement, the petitioners have relied upon the decision taken by the Sub Committee of the DAV Management on 2.12.2000 (Annexure-P-2), wherein it was recommended that the employees of DAV Public/Model Schools, affiliated to CBSE or State Education Boards or recognized by the Directorate of Education, Delhi, shall be eligible for leave encashment from the date of affiliation or recognition. The perusal of Resolution No. 83 dated 9.2.2001 (Annexure-P-3) shows that the said recommendations for grant of leave encashment, as recommended by the Sub Committee in the meeting held on 2.12.2000, were approved. Therefore, so far as the DAV Managing Committee is concerned, the leave encashment was approved by the Management.
The perusal of Resolution No. 83 dated 9.2.2001 (Annexure-P-3) shows that the said recommendations for grant of leave encashment, as recommended by the Sub Committee in the meeting held on 2.12.2000, were approved. Therefore, so far as the DAV Managing Committee is concerned, the leave encashment was approved by the Management. So far as the managements of I.S. Dev Smaj Senior Secondary School, Sector-21-C, Chandigarh and S.D. High School, Sector-24, Chandigarh, are concerned, their stand is that the Chandigarh Administration is not releasing the 95% grant-in-aid for payment of leave encashment and that if the same is paid, they are willing to release the leave encashment. They further claimed that the leave encashment cannot be claimed as a matter of right. Further, a perusal of the letter dated 2.6.2010 (Annexure-P-7), issued by the Director Public Instructions (S), Chandigarh Administration, to the Principal, DAV Senior Secondary School (Lahore), Sector-8, Chandigarh, shows that the leave encashment to the teachers of the aided schools is to be paid by the Management itself. The maximum encashment of leave is admissible upto 300 leave or the days of leave lying to the credit of incumbent, whichever is less. The entry to this effect should have also been made in the service book of the official also. Therefore, the perusal of the said letter shows that the stand of the Chandigarh Administration is that the leave encashment is to be paid, but it should be paid by the Management itself. 8. Now, this Court is to examine that what is nature of the leave encashment ? 9. The leave encashment is the payment made to the retired employee in lieu of earned leaves, not availed by him. It follows that, if during service, an employee avails the earned leave, he/she is paid full salary for the said earned leave availed by him. It is apparent that in order to encourage the employees to work more during service, the provision of leave encashment is made. Apparently, the Management does not want that the work of teaching should suffer on account of the employees taking leave during service with full pay on account of their entitlement. Therefore, apparently, the leave encashment is a part of the salary and is paid in lieu of the earned leave, not availed by the employee during service.
Apparently, the Management does not want that the work of teaching should suffer on account of the employees taking leave during service with full pay on account of their entitlement. Therefore, apparently, the leave encashment is a part of the salary and is paid in lieu of the earned leave, not availed by the employee during service. Therefore, I am of the view that the leave encashment is a part of the salary. 10. Now, admittedly, the Chandigarh Administration is releasing 95% grant-in-aid to the privately managed aided schools. The stand of the Chandigarh Administration is that it is for the Management to pay the leave encashment. In this way, the Chandigarh Administration admits that the leave encashment is to be paid to the employees of the aided schools of the Union Territory, Chandigarh. Therefore, it is held that the leave encashment is payable to the retired employees of the aided schools of the Union Territory, Chandigarh. However, since it is a part of the salary, the Management, after paying the same to the employees, can claim it in grantin- aid from the Government as a part of salary in the ratio of grant-in-aid payment of salary. 11. The respondents No. 3 and 4 have produced the authority of this Court in Management of S.D. Model Senior Secondary School and another Versus District Judge-cum-Service Tribunal and another, [2014(1) Law Herald (P&H) 312] : 2014 (1) SCT 652, and pressed that only the Education Tribunal is competent to decide the matter. However in the present case, the Chandigarh Administration is also involved. Since the ultimate payment is to be made by the Management from the grant-in-aid received from the Chandigarh Administration to the extent of 95% in the form of leave encashment, which is held to be a part of the salary, therefore, this Court has got the jurisdiction to decide the present controversy. 12. From the forgoing discussion, I come to the conclusion that since the leave encashment is a part of the salary and as per the stand of the respondents No. 1 and 2, it is to be paid by the Management of the aided schools of Union Territory, Chandigarh, therefore, the petitioners are held entitled to the leave encashment, as per the Instructions dated 2.6.2010 (Annexure-P-7), issued by the Chandigarh Administration.
However, at the same time, since the leave encashment is a part of the salary, the Management shall be entitled to claim it as a part of salary in grant-in-aid from the respondents No. 1 and 2. The arrears of leave encashment to the petitioners shall be released within three months from the date of receipt of copy of this order alongwith interest at the rate of 9% per annum from the date of retirement till its realisation. 13. The petition is accordingly allowed.