Rajesh Kumar Gupta vs Madhya Pradesh Vidyut Vitran Co. Ltd on 18 February, 2026

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    Madhya Pradesh High Court

    Rajesh Kumar Gupta vs Madhya Pradesh Vidyut Vitran Co. Ltd on 18 February, 2026

    Author: Vishal Dhagat

    Bench: Vishal Dhagat

             NEUTRAL CITATION NO. 2026:MPHC-JBP:15528
    
    
    
    
                                                                  1                             WP-17387-2025
                                  IN     THE      HIGH COURT OF MADHYA PRADESH
                                                        AT JABALPUR
                                                             BEFORE
                                               HON'BLE SHRI JUSTICE VISHAL DHAGAT
                                                    ON THE 18th OF FEBRUARY, 2026
                                                    WRIT PETITION No. 17387 of 2025
                                               RAJESH KUMAR GUPTA
                                                      Versus
                                  MADHYA PRADESH VIDYUT VITRAN CO. LTD AND OTHERS
                               Appearance:
                                       Shri Satyam Agrawal - Advocate for petitioner.
    
                                       Shri Aditya Khandekar - Advocate for respondents.
    
                                                                      ORDER
    

    Petitioner has filed this petition under Article 226 of Constitution of
    India challenging order dated 28/02/2025 contained in Annexure P-7. By
    said order prayer of petitioner for encashment of earned leave was rejected
    on ground that revision filed by petitioner against conviction and sentence is
    pending before High Court. Prayer for encashment of earned leave was
    rejected in aid with Rule 64(1)(c) of M.P. Civil Services (Pension) Rules,
    1976 on grounds that payment is to be made on conclusion of proceedings.

    Final retiral benefits are to be paid after adjustment of provisional pension
    gratuity paid under Rule 64(1)(c) of M.P. Civil Services (Pension) Rules,
    1976 on conclusion of proceedings. Proceedings include departmental
    enquiry or judicial proceedings.

    SPONSORED

    2. Counsel appearing for petitioner submitted that respondents had
    committed an error in passing impugned order and same is not in consonance

    Signature Not Verified
    Signed by: ANURAG SONI
    Signing time: 10-03-2026
    17:24:16
    NEUTRAL CITATION NO. 2026:MPHC-JBP:15528

    2 WP-17387-2025
    with law. There is no specific provision which aids withholding of leave
    encashment of petitioner. In Writ Appeal No.772/2019 (Sevaram Khandegar
    Vs. State of M.P. & Others
    ) Division Bench of this Court vide order dated
    04/02/2019 held that there is no provision, which disentitles petitioner during
    pendency of criminal case from encashing leave in his account. Writ Appeal
    filed was allowed and respondents were directed to release 50% of gratuity
    as directed by learned Single Judge as well as amount which is in account of
    petitioner under leave encashment head.
    In support of his contention counsel
    also placed reliance on orders passed by this Court in Writ Petition
    No.18341/2023 (Badelal Pathak Vs. State of M.P. & Others) decided on
    05/09/2023 and also order dated 10/02/2023 passed in Writ Petition
    No.17844/2020 (Bhuvansingh Waskel Vs. State of M.P. & Others). In view
    of aforesaid, counsel for petitioner prays for quashing of impugned order and
    allowing Writ Petition.

    3. Counsel appearing for respondents submitted that leave encashment
    was rejected placing reliance on Rule 64(1)(c) of M.P. Civil Services
    (Pension) Rules, 1976, which authorises withholding of pensionary benefit
    during pendency of judicial proceedings. There is no illegality in the order. If
    petitioner is finally acquitted, shall be adjusted against final retiral benefits.
    In view of same, Writ Petition be dismissed.

    4. Heard counsel for the parties.

    5. Question before this Court is whether State Government is at liberty
    to withhold leave encashment if departmental proceeding or judicial
    proceeding against an employee is pending in aid of Section 64(1)(c) of

    Signature Not Verified
    Signed by: ANURAG SONI
    Signing time: 10-03-2026
    17:24:16
    NEUTRAL CITATION NO. 2026:MPHC-JBP:15528

    3 WP-17387-2025
    Civil Services Pension Rules, 1976.

    6. A Government servant under Rule 25(1)(a) of M.P. Civil Services
    (Leave) Rules, 1977 shall be entitled to 30 days earned leave in every
    calendar year. Every Government servant has a leave account, which is
    prepared in accordance with Rule 14 of aforesaid Rules. Leave of every
    Government servant is credited into leave account in two installments of 15
    days each on first January and first July every year. As per Rule 25(1)(c) of
    M.P. Civil Services (Leave) Rules, 1977 maximum earned leave credited
    into account shall not exceed limit of 300 days. Maximum earned leave
    which can be granted to Government servant under Rule 25(2) of M.P. Civil
    Services (Leave) Rules, 1977 is 120 days. As per Rule 36 of M.P. Civil
    Services (Leave) Rules, 1977 Government servant who proceeds on earned
    leave is entitled to leave salary equivalent to the pay drawn immediately
    before proceeding on earned leave. Rule 36 of M.P. Civil Services (Leave)
    Rules, 1977 further lays down that on retirement or resignation of a
    Government servant, it is to be seen whether he has availed more leave then
    permissible to him and in such cases adjustment shall be made in respect of
    leave salary if leave is overdrawn. As per Rule 8 of M.P. Civil Services
    (Leave) Rules, 1977 any claim to leave to credit of a Government servant,
    who is dismissed or removed or resigned from Government service, ceases
    from the date of such dismissal or removal or resignation. Rule 8 of M.P.
    Civil Services (Leave) Rules, 1977 is quoted as under :-

    Rule-8. Effect of dismissal, removal or resignation on leave at
    credit.

    Signature Not Verified
    Signed by: ANURAG SONI
    Signing time: 10-03-2026
    17:24:16

    NEUTRAL CITATION NO. 2026:MPHC-JBP:15528

    4 WP-17387-2025
    (1) Any claim to leave to the credit of a Government
    servant, who is dismissed or removed or who resigns
    from Government service, ceases from the date of such
    dismissal or removal or resignation.

    (2) Where a Government servant applies for another
    post under the State Government but outside his parent
    office or department and if such application is
    forwarded through proper channel and the applicant is
    required to resign his post before taking up the new one,
    such resignation shall not result in the lapse of the leave
    to his credit.

    (3) A Government servant, who is dismissed or
    removed from service and is reinstated on appeal or
    revision, shall be entitled to count for leave his service
    prior to dismissal or removal, as the case may be.

    (4) A Government servant, who having retired on
    compensation or invalid pension or gratuity is re-
    employed and allowed to count his past service for
    pension, shall be entitled to count his former service
    towards leave.

    7. Rule 64 of M.P. Civil Services (Pension) Rules, 1976 lays down
    that in cases where departmental enquiry, proceedings or judicial
    proceedings (criminal case) is pending against a retiring Government
    servant, then provisional pension not exceeding maximum pension and 50%
    of gratuity is to be paid if a Government servant is eligible for same on basis
    of qualifying service up to date of retirement or if he is on suspension on
    date of retirement. Words used in Rule 64(1)(a) of M.P. Civil Services
    (Pension) Rules, 1976 is pension and gratuity. However, Rule 64(1)(c) of
    M.P. Civil Services (Pension) Rules, 1976 lays down that provisional
    pension paid to Government servant is to be adjusted at the time of making
    payment of final retiral benefits to a Government servant after conclusion of
    departmental enquiry or judicial proceedings against him. Further, there is

    Signature Not Verified
    Signed by: ANURAG SONI
    Signing time: 10-03-2026
    17:24:16
    NEUTRAL CITATION NO. 2026:MPHC-JBP:15528

    5 WP-17387-2025
    rider in Rule 64(1)(c) of M.P. Civil Services (Pension) Rules, 1976 that
    adjustment has also to be made from gratuity in respect of contribution
    towards contributory family pension if applicable, Government dues which
    has been ascertained and assessed.

    8. Rule 64 of M.P. Pension Rules 1976 read with Rule 60 of aforesaid
    Rules do not provide for withholding of leave encashment of Government
    servant during pendency of departmental enquiry or judicial proceedings.
    Aforesaid Rules only talks about adjustment in respect of contribution
    towards family pension and Government dues which are ascertainable.
    Earned leave is not a Government due, but salary for period of leave to
    which a Government servant is entitled, therefore, same will not fall within
    definition of ascertainable Government dues and leave encashment cannot be
    withheld by Government in aid of Section 64(1)(c) of Civil Services
    (Pension) Rules 1976.

    9. However, Rule 8 of Civil Services (Leave) Rules, 1977 cannot be
    ignored. Interplay of Rule 8 is also to be considered while making payment
    for leave encashment at the time of retirement. Rule 8 says that claim of a
    Government servant to leave on his credit will cease from date of dismissal,
    removal or resignation. If a Government servant is terminated from service
    or dismissed in departmental enquiry or his services are removed after his
    conviction in criminal case, then claim of a Government servant for leave
    encashment will cease from date of termination, dismissal or resignation
    from service.

    10. Rule 8(3) of M.P. Civil Services (Leave) Rules, 1977 further

    Signature Not Verified
    Signed by: ANURAG SONI
    Signing time: 10-03-2026
    17:24:16
    NEUTRAL CITATION NO. 2026:MPHC-JBP:15528

    6 WP-17387-2025
    provides that a Government servant who is dismissed or removed from
    service and is reinstated on appeal or revision shall be entitled to count for
    leave his service prior to dismissal or removal. Since judicial proceedings
    against petitioner in a criminal case for misappropriation by a public servant
    is pending in High Court and when such proceedings are finalized and
    petitioner is acquitted, only then petitioner can make a claim for leave
    encashment. If State Government takes a decision after conviction for
    removal of petitioner from Government job, then his right to leave
    encashment will cease and petitioner will not be paid leave encashment.
    Leave standing to the credit of a Government servant, who retires or resigns,
    is to be adjusted at the time of retirement, if same is overdrawn. However, no
    leave encashment is to be made if he resigns from service or is terminated. In
    cases where departmental enquiry and judicial proceedings are pending,
    which may result termination of Government servant, will disentitle him for
    payment of leave encashment, therefore, leave encashment cannot be paid to
    a Government servant against whom judicial proceeding or departmental
    enquiry is pending. Leave encashment is not a Government due, but right of
    Government employee to get his leave encashed, but said right will cease to
    exist on conditions mentioned in Rule 8 of M.P. Civil Services (Leave)
    Rules, 1977.

    11. Said Rules are not taken into consideration when orders in Writ

    Appeal No.772/2019, Writ Petition No.18341/2023 and Writ Petition
    No.17844/2020 were passed because it was not brought to knowledge of
    Court that benefit of leave encashment owing to a Government servant under

    Signature Not Verified
    Signed by: ANURAG SONI
    Signing time: 10-03-2026
    17:24:16
    NEUTRAL CITATION NO. 2026:MPHC-JBP:15528

    7 WP-17387-2025
    Rule will cease if there is resignation or termination or dismissal of
    Government servant. Departmental enquiry or judicial proceedings may lead
    to termination or dismissal from service, therefore, said benefits can only be
    given to a Government servant when proceedings had attained finality.

    12. There is no enabling provisions under M.P. Civil Services (Leave)
    Rules, 1977 that provisional leave encashment is to be given during
    pendency of departmental enquiry or criminal proceedings. Rule 64 of M.P.
    Civil Services (Pension) Rules, 1976 provides for provisional pension and
    gratuity. In absence of any provision in M.P. Civil Services (Leave) Rules,
    1977, no provisional leave encashment can be granted and employee has to
    wait for the final outcome of departmental enquiry or judicial proceedings.
    Petitioner is at liberty to apply for leave encashment, if he is finally acquitted
    in criminal case.

    13. Accordingly, Writ Petition is dismissed.

    (VISHAL DHAGAT)
    JUDGE

    as

    Signature Not Verified
    Signed by: ANURAG SONI
    Signing time: 10-03-2026
    17:24:16



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