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Hi Neha,
Yes this is in practice, specially if you have short NP for like one month or so, then if the employee is given leaves in the middle it becomes very difficult to manage the work handover and other exit formalities.
Rest it definitely protects the pl accumulation and hence making benefiting the cost.
There are many employees who tend to resign rite after they receive the salary for a particular month and avoid NP. SO this policy also helps the company in those cases.