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veraich
19-11-2010, 10:58 PM
Rate of DA at the time of encashment of leave with LTC

This pertains to what i have recently come across in Swamy News.
An employee X applies for LTC and also asks for leave encashment on 01 August 2010 when the rate of DA was 39%. He was accordingly allowed encashment of leave as per Rule 39 A of CCS (Leave Rules), which quotes 'DA on the date of encahment"

When the DA gets revised retrospectively, the Swamy interprets that Encashment cannot be reviewed.

With all regards to Swamy, I am doubtful regarding its correctness. Since encashment, when allowed in normal course as retirement benefit under CCS(Leave Rules), may not entail such foreclosure of rate of DA at that instant.

Similarly when the DA is getting revised retrospectively, why the benefit of encashment be curtailed to whatever was effected on the actual date of encashment, especially when arrears of pay are being very much allowed.
Pl guide

Hardeep

Victor
20-11-2010, 01:13 PM
Rate of DA at the time of encashment of leave with LTC

This pertains to what i have recently come across in Swamy News.
An employee X applies for LTC and also asks for leave encashment on 01 August 2010 when the rate of DA was 39%. He was accordingly allowed encashment of leave as per Rule 39 A of CCS (Leave Rules), which quotes 'DA on the date of encahment"

When the DA gets revised retrospectively, the Swamy interprets that Encashment cannot be reviewed.

With all regards to Swamy, I am doubtful regarding its correctness. Since encashment, when allowed in normal course as retirement benefit under CCS(Leave Rules), may not entail such foreclosure of rate of DA at that instant.

Similarly when the DA is getting revised retrospectively, why the benefit of encashment be curtailed to whatever was effected on the actual date of encashment, especially when arrears of pay are being very much allowed.
Pl guide

Hardeep

Rule 38-A of CCS(Leave) Rules, 1972 provides for leave encashment along with LTC on the basis of "Pay admissible on the date of availing of the Leave Travel Concession plus Dearness Allowance admissible on that date".

Since DA is revised retrospectively, it cannot be concluded that the revised DA was not "admissible" on the date of availing LTC. Further, on retirement arrears of benefits like Gratuity, Leave encashment are sanctioned consequent to revision of DA retrospectively.

Hence, I feel that arrears in Leave encashment on availing LTC should also be granted after the revision of DA with retrospective effect.

Perhaps, a clarification from DOPT would be required to settle the matter.

Victor

RKPATHAK
20-11-2010, 07:52 PM
In fact leave encashment on ltc is a part of ltc and ltc claims once settled need not be reopened. Hence the view point of Swamy News is in order

prasannakumar
20-11-2010, 07:52 PM
Sirs
Similar incidences have occurred in my department also. I strongly feel this has to be allowed and endorse the views of Mr. Victor. Hope necessary action would be taken in this regard.

Regards
Prasanna Kumar

veraich
20-11-2010, 10:37 PM
Sirs,
Pl dont mind my extending stretch of imagination.
'LTC claims once settled need not be reopened'. Here it is not 'should be'. Many often a situation may arise where the case may need to be re-opened when some in-admissible payment has been effected OR when a request may come from employee for seeking encashment at enhanced rate of DA.

Aint that similar to recent case where the OM stated that HPLs may also be encashed in case where encashed EL is less than 300, upto the limit that total encashment of EL+HPL does not go beyond 300 days. (OM No. 14028/3/2008-Estt.(L) dt 6.11.2009 para (i) below)

"(i) The benefit will be admissible in respect of past cases on receipt of applications to that effect from the pensioners concerned by the Administrative Ministry concerned. (ii) In respect of retirees who have already received encashment of earned leave of maximum limit of 300 days together with encashment of HPL standing at their credit on the date of retirement, such cases need not be reopened. However, such cases in which there was a shortfall in reaching the maximum limit of 300 days can be reopened"


HArdeep