Topic

financial crunch

1 articleLatest May 2026
Retiral Dues Cannot Be Withheld for Financial Crunch | Gratuity & Leave Encashment Must Be Paid Within 3 Months with Interest : Allahabad HC
Case Law Analysis
|Allahabad High Court

Retiral Dues Cannot Be Withheld for Financial Crunch | Gratuity & Leave Encashment Must Be Paid Within 3 Months with Interest : Allahabad HC

The Allahabad High Court has ruled that public employers cannot delay payment of gratuity, leave encashment, or pending salary to retired employees due to financial constraints. The order mandates full payment within three months, with interest at bank rate if no specific provision exists, reinforcing that statutory benefits are non-negotiable rights, not discretionary payouts.