Leave Encashment of unutilized leave earned during Re-employment

The respondent retired on 31.1.2005 on superannuation in terms of Rule 98 of the Sikkim Government Service Rules, 1974.  He was paid leave encashment of 300 days unutilized leave as per Rule 36 of the Leave Rules.

Thereafter, the respondent was re-employed from 1.2.2005 to 28.5.2019.  He was allowed leave encashment of unutilized leave during the said re-employment period.  However, later on, it was found that the Leave Rules do not provide for the same.  Therefore, clarification OM dated 27.2.2020 was issued

HELD that a government servant is not entitled to leave encashment of unutilized leave during the period of re-employment.  The employee on re-employment cannot get the benefit of leave encashment second time merely because he / she is having leave to the credit during the period of re-employment.

Judgment dated 23.4.2025 of the Surpeme Court of India in SLP [Civil] Nos.23709-23710 of 2023 of State of Sikkim and others    Vs.  Dr. Mool Raj Kotwal