Can a company stop or restrict the leave encashment?

If your company is covered under shops and establishment act. As per this act you are eligible for casual leave of 12 days and earned leave of 12 days.

Casual leave is at the discretion of the company to encash but earned leave if any unused shall be accumulated and encashed.

However, earned leave is eligible if an employee works for more than 1 year. All the leaves stated above are for one year, if served for part of the year they are to calculated proportionately.

Based on your work experience you can decide, whether you are eligible are not.