Justice Sanjeev Narula of the Delhi High Court ruled on July 17, 2026 that an employer can't just hold back a retired employee's leave encashment for nine years and then pay it without interest, all the while ignoring the legal steps outlined in the CCS (Pension) Rules, 1972.
The high court ruled that if the payment for the withheld leave encashment is made late and without proper authority, the employee is entitled to receive 6% interest per annum on the withheld amount.
