Entitlement To Pension, Health Gratuity And Leave Encashment Are Integral To Fundamental Rights: Karnataka HC
The Karnataka High Court directed authorities to disburse employee’s outstanding leave encashment amount while observing that entitlements to pension, health gratuity, and leave encashment are integral to the fundamental rights enshrined in Article 19(1)(f) and Article 31(1) of the Constitution of India.
The Court noted that the said fundamental rights safeguard an individual's economic and personal liberties, ensuring that they are not deprived of their rightful entitlements without due process of law.
The Court was hearing a Writ Petition praying to direct the authorities to grant/clear arrears of encashment of earned leaves.
The bench of Justice Sachin Shankar Magadum observed, “…it becomes evident that the entitlements to pension, health gratuity, and leave encashment are integral to the fundamental rights enshrined in Article 19(1)(f) and Article 31(1) of the Constitution of India.”
Brief Facts-
The petitioner H. Channaiah, a dedicated Waterman in office of respondent Panchayat Development Officer sought resolution for unpaid earned leave encashment by the Grama Panchayat. Despite directives from higher authorities, only a fraction of the due amount was released.
The Court mentioned the Supreme Court decision in Deokinandan Prasad v. State of Bihar, where the SC decisively settled the legal status of pension and gratuity, according to the Court, the SC held, “pension and gratuity are legal rights accruing to an employee upon retirement, not contingent upon the employer's discretion or designation.”
The Court observed, “The principle of administrative instructions, while valuable for organizational efficiency, cannot supersede the constitutional protections guaranteed to citizens.”
As per the Court Article 300-A of the Constitution mandates that the State cannot deprive an individual of their property (which includes entitlements like leave encashment) except by authority of law. Therefore, according to the Court, any attempt to withhold or curtail these entitlements based solely on administrative directives would be contrary to the constitutional mandate and, consequently, unconstitutional.
Accordingly, the Court allowed the Writ Petition with directions to disburse the outstanding earned leave encashment amount.
Cause Title: H. Channaiah v. The Chief Executive Officer
Appearance:
Appellant: Adv. Babu Rao M.
Respondent: AGA A. Nagarajappa
