The Orissa High Court has ruled that prolonged absence from duty without sanctioned leave does not automatically amount to misconduct serious enough to justify compulsory retirement or loss of retirement benefits.
The case involved railway employee Jaya Chandra Mishra, who had applied for leave but went ahead with it even though it was not approved. Disciplinary proceedings were initiated against him, and the Railway authorities ordered compulsory retirement, stripping him of pension, gratuity and leave encashment! In 2021, the Central Administrative Tribunal (CAT) upheld the Railway’s decision.
Mishra challenged this before the High Court. A division bench of Justices Krishna S Dixit and Chittaranjan Dash overturned the CAT order, directing the Railways to restore all retirement benefits. The court noted that while absence without sanctioned leave could invite action under leave rules, it did not justify one of the harshest penalties in service law.
The Railways have now been instructed to recalculate and pay Mishra’s retiral benefits, including pension, gratuity and leave encashment, within 12 weeks. No interest will be paid on arrears.
The ruling is reportedly significant because it draws a clear line between administrative lapses and misconduct. It reinforces that not every breach of leave procedure should be treated as a disciplinary offence warranting compulsory retirement. Employers must distinguish between minor irregularities and serious misconduct before imposing severe penalties.
The judgment also highlights the importance of proportionality in disciplinary action. Absence without sanctioned leave may require corrective measures, but stripping away retirement benefits is excessive unless misconduct is proven.