It lies in the company's discretion unless there is any specific provision prohibiting an employee from taking leave during the notice period either in the contract of service or service rules. However, the objective of the notice period is to enable the employer to find a substitute and to ensure a smooth transfer of work to the new incumbent either from within or from outside. That's why an employee is required to be present during the notice period. If an employee is allowed to avail/adjust leave against or during the notice period, the objective will be defeated. However, the management shall not mind a few days of leave under compelling circumstances.
Regards,
B. Saikumar
HR & Labor Law Advisor
Mumbai