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Smart Summary

Factual and Procedural Background

Dr. Pradeep Garg was appointed on an ad hoc basis as Assistant Professor (Obstetrics and Gynaecology) at the All India Institute of Medical Sciences (AIIMS), Delhi, in August 2002, initially for a period of three months or until a regular appointment was made. Despite the ad hoc nature of the appointment, Dr. Garg continued in service for nearly ten years until April 2012, accruing 108 days of earned leave during this period.

Upon termination of his service, Dr. Garg claimed encashment of the earned leave, which was rejected by AIIMS. After his claim was denied, and following silence from the respondents, he filed a writ petition challenging the refusal. The petition was transferred to the Central Administrative Tribunal (CAT) after AIIMS was notified under Section 14 of the Administrative Tribunals Act, 1985. The CAT dismissed the petition holding that no employee is entitled to encashment of earned leave on termination of service. Dr. Garg then approached this Court seeking relief.

Legal Issues Presented

  1. Whether an ad hoc employee who has served continuously for nearly ten years is entitled to encashment of earned leave upon cessation of service.
  2. How the term "termination" in the relevant Department of Personnel and Training (DOPT) Office Memorandum (OM) dated 28 February 1988 should be interpreted in the context of earned leave encashment.
  3. Whether the denial of earned leave encashment to the petitioner was legally justified based on the provisions applicable to ad hoc employees under the CCS (Leave) Rules, 1972 and the DOPT OM.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Shashi Gaur vs. NCT of Delhi & Ors, (2001) 10 SCC 445 Interpretation of the term "termination" in employment contexts as distinct from service ending by efflux of time or regular appointment. The Court relied on this precedent to construe "termination" as having a negative connotation akin to dismissal or removal, thus excluding cases where ad hoc employment ends by efflux of time or regular appointment.

Court's Reasoning and Analysis

The Court examined the relevant DOPT Office Memorandum dated 28 February 1988, which governs leave benefits for ad hoc employees. Paragraph 2 of the OM provides conditions under which ad hoc employees may be granted leave benefits similar to temporary employees under the CCS (Leave) Rules, 1972, but it also stipulates that such employees shall not be entitled to encashment of earned leave upon "termination" of service.

The Court emphasized the significance of the term "termination," interpreting it contextually to mean an involuntary or stigmatized ending of service, such as dismissal or removal, rather than the natural conclusion of ad hoc employment by efflux of time or upon regular appointment. This interpretation was supported by the precedent in Shashi Gaur.

Since the petitioner’s ad hoc appointment continued for nearly ten years with the respondent’s concurrence, and there was no misconduct or disciplinary action, the cessation of his ad hoc employment coincided with the making of a regular appointment rather than termination in the negative sense.

Accordingly, the Court found that the petitioner was entitled to the benefit of encashment of the 108 days of earned leave credited during his service, as the conditions for denial under the OM did not apply.

Holding and Implications

The writ petition is allowed.

The Court set aside the order of the Central Administrative Tribunal dated 16 April 2015 and directed the respondent, AIIMS, to pay the petitioner the amount corresponding to the encashment of 108 days of earned leave as per the DOPT OM dated 28 February 1988. The payment is to be made within two months of communication of the order, failing which interest at 8% per annum will accrue from the date of the order.

This decision directly benefits the petitioner by ordering payment of earned leave encashment and clarifies the interpretation of "termination" in the context of leave encashment for ad hoc employees, but does not establish a broader binding precedent beyond the facts of the case.

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    Dr. Pradeep Garg Petitioner v. Director, All India Institute Of Medical Sciences (Aiims)

    $~11. * IN THE HIGH COURT OF DELHI AT NEW DELHI

    + WRIT PETITION(CIVIL) No. 7014/2015

    Date of decision: 12thJanuary, 2016 DR. PRADEEP GARG ..... Petitioner Through Mr. Rajeev Awasthi, Advocate. versus

    DIRECTOR, ALL INDIA INSTITUTE OF MEDICAL

    SCIENCES (AIIMS) ..... Respondent Through Mr. R.K. Gupta, Advocate.

    CORAM:

    HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE NAJMI WAZIRI

    SANJIV KHANNA, J. (ORAL):

    Dr. Pradeep Garg vide letter dated 8thAugust, 2002 after due selection was appointed as an Assistant Professor (Obstetrics and Gynaecology) at the All India Institute of Medical Sciences, Delhi in the pay scale of Rs.11625-325-15200 plus non-practising allowance and usual allowances as admissible to Central Government Servants. The appointment was on an ad hoc basis for a period of three months from the date the petitioner would assume charge or till regular appointment was made, whichever was earlier.

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    The letter records the terms and conditions of employment. Clause (3) of the letter stipulated:-

    "3. Other conditions of service such as benefits of provident fund, leave etc. will be in accordance with the rules and regulations of the Institute."

    Clause 6 of the letter mentions that the petitioner would be eligible for grant of house rent allowance as admissible to the Central Government servants of his status provided he would apply for institute accommodation and the same was not provided to him. The terms postulated that the petitioner could resign by giving one month notice or by depositing pay and allowances for the period by which the notice falls short. Clause 7 of the letter, read:-

    "7. He/she should also note that he/she will have to conform to the rules discipline and conduct prevailing in this Institute and those imposed by the Institute on all their employees."

    2. The petitioner continued to work as Assistant Professor (Obstetrics and Gynaecology) till 10thApril, 2012. In other words he had worked for nearly ten years. During this period, he had earned credit of 108 days of earned leave, having not taken the said permissible leaves during this period.

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    3. Thereupon, the petitioner had claimed encashment of earned leave of 108 days. The prayer was rejected vide letter dated 11th August, 2012. The petitioner wrote another letter dated 11thAugust, 2012 drawing attention of the respondents to OM No. 13018/6/86- Estt.(L), Government of India, DOPT, asserting that the memorandum accords benefit of encashment of earned leave to ad hoc employees. When there was silence and failure to respond, the petitioner filed a writ petition before this Court, which was transferred to the Central Administrative Tribunal after the All India Institute of Medical Sciences was notified under Section 14 of the Administrative Tribunals Act, 1985. The TA No. 5/2014 filed by the petitioner stands dismissed vide order dated 16thApril, 2015, recording that no employee would be entitled to benefit of encashment of earned leave on termination of his service. The services of the petitioner were terminated and, therefore clause 3 of the DOPT"s OM dated 28thFebruary, 1988 would not entitle encashment.

    4. Having heard learned counsel for the parties, we find it difficult to accept and agree with the reasoning given by the tribunal. Office Memorandum dated 28thFebruary, 1988 relates to grant of leave to ad

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    hoc employees and paragraphs 2 and 3 thereof read as under:-

    " 2. The President is now pleased to decide that employees whose appointment is treated as ad-hoc for purely technical reasons, may be extended the benefit of leave as admissible to temporary employees of the Vacation Department under the CCS (Leave) Rules, 1972. In other cases of ad-hoc appointment of staff categorised as „Vacation Staff" which are of brief periods, if vacation is allowed with usual pay & allowances/leave salary, no leave shall be admissible. In case they are not allowed such vacation, they may be allowed earned leave @ 2 ½ days per month of service, as allowed to similar employees in non-vacation Department, subject to the conditions that:-

    (a) Their services are utilised by the Administration on which they are borne during the period of vacation;

    (b) If their services cannot be utilised during vacation for any reason their services should be terminated on the commencement of vacation; and

    (c) While granting the leave it should be in terms of full days and not half a day. They will also not be entitled to the benefit of encashment of earned leave on termination of their service.

    3. Where the ad-hoc appointments made for brief periods initially, however, for some reasons, continue beyond a period of three years without break such ad-hoc employees may be extended the benefits of all kinds of leave as admissible to temporary employees of the vacation department, under CCS (Leave) Rules, 1972, from the date of their initial appointment."

    5. The aforesaid paragraphs in clear terms state that the

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    Government had decided to treat ad-hoc employees at par with temporary employees of the Vacation Department under the CCS (Leave) Rules, 1972. It is not disputed or under challenge that the petitioner being an ad-hoc employee would meet the said requirements and is not disqualified under the negative stipulations mentioned in paragraph 2 quoted above. Paragraph 3 of the said OM declares that ad hoc appointments though initially made for brief periods but continued beyond the period of three years without any break in service, would be extended benefits of all kinds of leave as admissible to temporary employees under the CCS (Leave) Rules, 1972 from the date of their initial appointment. It is not disputed that under the said clause, 108 days of earned leaves were credited and due. This period of 108 days has been calculated strictly in accordance with the OM dated 28thFebruary, 1988.

    6. Sub-clause (c) to paragraph 2 of the circular stipulates that grant of leave, would be in terms of a full day and not for half a day and further the ad hoc employees would not be entitled to benefit of encashment of earned leave on "termination" of the said service. The word "termination" is significant, and we feel has relevance. The word

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    "termination" has to contextually understood and interpreted. The said word has an element of stigma and negative import. This stipulation should not be broadened to include cases where the ad-hoc employment comes to an end by efflux of time or when regular appointment is made.

    7. The 2nd sentence in sub-clause (c) of paragraph 2 does not in plain language state that no leave encashment will be allowed to ad- hoc employees. It was rather easy to state this position; that no leave encashment would be allowed or paid to the ad-hoc employees. On the other hand, stipulation is conditional that leave encashment would not be permissible in cases of "termination". Necessarily indicating and meaning, there could be cases where leave encashment would be allowed. i.e cases where ad-hoc employees employment is not

    "terminated". Earned Leave is not encashed or paid during ad-hoc employment. The expression "termination" in the context of sub-clause

    (c) to paragraph 2 as „termination of service", has to be read as bearing and postulating a negative connotation. The word "termination" would therefore means "termination" of employment for any reason or cause, excluding cases where ad-hoc employment comes to an end by efflux

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    of time or when regular appointment is made. It would be apposite to refer to Shashi Gaur vs. NCT of Delhi & Ors. , (2001) 10 SCC 445, where the Supreme Court interpreted the term "termination", and has held that an order of "termination" would be akin to order of dismissal or removal and can be distinguished from other cases where service comes to an end by efflux of time. The above-said observation was made in the context of Sec. 8(3) of Delhi School Education Act, 1973.

    8. Earned leave encashment would be justified for it is payment made for the extra days of work, as the employee could have taken leave but had worked. Encashment is not gratis or by way of a bounty. It is payment for work performed and done.

    9. It is an accepted position that, the ad hoc appointment had continued for almost ten years. This was with the concurrence of the respondent. It is not debated or stated that the petitioner had not diligently performed his duties. No misconduct/delinquency was reported or disciplinary proceedings were initiated. Apparently on regular appointment being made, the petitioner"s ad hoc appointment came to an end.

    10. In these circumstances, we find merit in the present writ petition

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    and allow the same. We set aside the order dated 16thApril, 2015 and also issue directions to the respondent-All India Institute of Medical Sciences to make payment toward earned leave for a period of 108 days as per DOPT"s OM dated 28thFebruary, 1988. The said payment will be made within a period of two months from the date a copy of this order is communicated. In case the payment is not made within a period of two months, the petitioner will be entitled to an interest of 8 per cent per annum from the date of this order. The writ petition is accordingly disposed of.

    (SANJIV KHANNA)

    Judge

    (NAJMI WAZIRI)

    Judge

    JANUARY 12, 2016

    VKR

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    Dr. Pradeep Garg Petitioner v. Director, All India Institute Of Medical Sciences (Aiims)
    (Jan 12, 2016)