As per the case facts appellants were appointed to sanctioned posts in a school that received grant-in-aid from the State The school unilaterally decided to stop receiving aid which led ... to a dispute regarding the appellants' employment benefits specifically leave encashment and gratuity The appeal was directed against a High Court judgment dismissing the appellants' application for enforcement of a previous judgment The question arose whether the State and the school management were liable to pay leave encashment and gratuity to the appellants despite the school discontinuing grant-in-aid Finally the Supreme Court held that the State and the school management are liable to pay the appellants for leave encashment in a ratio respectively The State is to determine the entitlement and communicate the management's payable amount within four weeks All respondents must pay these amounts within six weeks The management is also to calculate and pay gratuity based on the initial entry date until the absorption order date within six weeks Since both sets of respondents contested liability the amounts will also carry interest from the date of entitlement until payment The High Court's order was set aside and the appeal was allowed

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