Case Law Analysis
|Allahabad High Court
Non-Statutory Leave Encashment Dues Attract 7% Interest as Natural Accrual | Allahabad HC Affirms Nand Lal Doctrine : Allahabad HC
The Allahabad High Court has ruled that delayed payment of leave encashment - even when not mandated by statute - attracts 7% interest as a natural consequence of delayed capital, reinforcing the principle that administrative delays cannot deprive employees of fair compensation. This sets a critical precedent for all government and public sector employees awaiting delayed service benefits, aligning them with the equity-based logic of natural justice.