P&H: Denies Interest on Delayed Leave Encashment, Citing Pending FIR

punjab-haryana
⚖️ Order Date: 13 Oct 2026
Headnotes

Service Law — Leave encashment — Interest on delayed payment — Where delay in releasing leave encashment was attributable to pendency of criminal proceedings against petitioner and was not inordinate or deliberate, petitioner was not entitled to interest. (Paras 9, 10, 11,12)

 


Facts of the Case

P&H: Denies Interest on Delayed Leave Encashment, Citing Pending FIR

The Punjab and Haryana High Court has dismissed a retired Haryana medical officer’s plea for interest on leave encashment paid more than two years after his retirement. Justice Nidhi Gupta held that the delay was not shown to be inordinate or deliberate.

Dr. Shailendra Kumar Khambra retired as a Senior Medical Officer on June 30, 2023. He received leave encashment of Rs 31.82 lakh in February 2026 and sought 12% annual interest, alleging that the amount had been unjustifiably withheld. He said no departmental proceedings or charge-sheet were pending against him when he retired.

Khambra argued that the State had...

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