The petitioners are retired employees of Allama Iqbal Open University and they sought direction for grant of leave encashment benefit during the period of their service as granted to the other employees vide Notification No,F.21-75/96-Reg/2496 dated 26-5-1996. It has been argued by learned counsel for the petitioners that leave encashment benefit is pensionary benefit and should have been for their service rendered between 1946 till 1996. As there is no cut out date for grant of compensatory benefit i,e, pension; It is included in the pension benefit which is not to be granted by grace but it can be claimed as of right and the refusal of leave encashment benefit is unjustified and illegal. Reliance has been placed on 1991 SCM R 1041 and AIR 1983 All. 209.
2. The petition has been opposed by learned counsel representing the respondents by arguing that according to rule 1 of the Notification, the balance of leave at the credit of an employee will be considered for encashment during the service rendered by him and every employee had to apply on 31st of December to 30th January of the next calendar year and this Notification cannot be applied retrospectively and according to the decision in the meeting dated 29-3-1997 the rules for encashment were given effect from the date of Notification which was 23-5-1996 and according to the calculation if the claim of the petitioners is allowed the University has to bear burden of Rs,2.5 millions which is beyond its source and the same decision was notified vide Notification No,F.21- 79/97- Reg/2480 dated 15-4-1997.
3. After hearing the learned counsel for the parties, I have also examined the relevant Notifications and the case law referred to.
4. Under rule 1 of the Notification dated 26-5-1996, encashment of earned leave was granted to - the employees of the University provided an employee applies annually between 31st December and 10th of January of the next calendar year and without formal request of an employee for encashment of leave; under rule 2 it was to be credited to his/her leave account and according to the Notification dated 15-4-1997 the benefit was extended to the employees who were in service on 23-5-1996 and not to the retired employees. The Notification is to be given effect from the date in the Notification itself or from the date of publication of the Notificationnot retrospectively. The case law referred to by the learned counsel for the petitioners is not applicable to the facts of this case. The petition is dismissed having no force.