Encashment of Un-utilized Leave

No.F(E)III/82/LE1/2, dated 29.12.1983

Sub: Encashment of un-utilized leave to a Railway Servant under suspension on retirement.

Reference proviso (ii) below Rule 2127(a) – R.I, read with this Ministry’s letter No.E(P&A)I-76/CPC/LE-3, dated 11.03.1977, a Railway servant who retires from service on attaining the age of compulsory retirement while under suspension is eligible to the lump sum payment of the amount equivalent to leave salary and allowances for the leave due and admissible to him, subject to a maximum of six months as one time settlement after termination of the proceedings provided that he is exonerated and the suspension was wholly unjustified.

The matter has further been considered and the President is pleased to decide that the authority competent to grant leave may withhold whole or part of cash equivalent of LAP at his credit, subject to a maximum of 180 days, in the case of a railway servant who retires from service on attaining the age of retirement while under suspension or while disciplinary or criminal proceedings are pending against him, if in the view of such authority there is a possibility of some money becoming recoverable from him on conclusion of the proceedings against him. On conclusion of the proceedings he will become eligible to the amount so withheld after adjustment of Railway’s dues if any.

The existing rules/ orders on the subject may be deemed to have been amended accordingly. Necessary amendment to the Indian Railways Establishment Code will follow in due course.

Download Railway Board Circular dated 29.12.1983

Forward reference ⇒ RBE No. 196/1989