JAGDISH PRASAD SAINI & ORS. versus STATE OF RAJASTHAN & ORS.

JAGDISH PRASAD SAINI & ORS. versus STATE OF RAJASTHAN & ORS.

The term 'salary' under the Act includes leave encashment; Rule 5(viii) of the 2010 Rules which bars carry forward of privilege leave and forces employees to seek encashment only from aided institutions is arbitrary and unenforceable; accordingly the State and the aided institution management are liable to pay leave encashment in the ratio of the grant (70% by State and 30% by management), and the management is liable to pay gratuity to the appellants under the 1993 Rules.

Parties
Appellants: Jagdish Prasad Saini & Ors.; Respondents: State of Rajasthan & Ors.
Jurisdiction
India
Judgment Date
26 September 2022
Procedural Posture
Civil Appeal / Appeal to Supreme Court; Final Judgment Disposing of Challenge to High Court Order
Outcome
Appeal allowed; impugned High Court order set aside
Legal Topics
Leave Encashment, Gratuity, Absorption of Aided Employees, Grant in Aid, Interpretation of Service Rules, Arbitrariness of Contractual Conditions
Service Law Education Law Administrative Law Leave Encashment Gratuity Absorption of Aided Employees Grant in Aid Interpretation of Service Rules +1 more

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Parties

Jagdish Prasad Saini & Ors.

Appellants

State of Rajasthan & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal to Supreme Court; Final Judgment Disposing of Challenge to High Court Order

Legal Issues

  1. 1 Whether 'salary' under the Rajasthan Non-Government Educational Institutions Act, 1989 includes leave encashment
  2. 2 Whether Rule 5(viii) of the Rajasthan Voluntary Rural Education Service Rules, 2010 forbidding carry forward of privilege leave and requiring employees to obtain encashment from previous aided institutions is enforceable
  3. 3 Whether gratuity for employees of aided institutions is payable by the State or by the management of the aided institution under the 1993 Rules

Ratio Decidendi

The term 'salary' under the Act includes leave encashment; Rule 5(viii) of the 2010 Rules which bars carry forward of privilege leave and forces employees to seek encashment only from aided institutions is arbitrary and unenforceable; accordingly the State and the aided institution management are liable to pay leave encashment in the ratio of the grant (70% by State and 30% by management), and the management is liable to pay gratuity to the appellants under the 1993 Rules.

Court Disposition

Appeal allowed; impugned High Court order set aside

Orders

  • State to determine extent of each appellant's entitlement to leave encashment within four weeks and communicate the amount payable by the management (respondent nos. 3-7) to the appellants
  • All respondents to pay the determined amounts to the appellants within six weeks from the date of the judgment