IN THE HIGH COURT OF DELHI AT NEW DELHI
Jyoti Singh, J.
Prem Chand – Appellant
Versus
Government of N. C. T. Delhi & Ors. – Respondents
W.P.(C) 12513 of 2021
Decided On : 10-03-2023
Terminal Benefits - Delayed Payment - The court directed the school to release the petitioner's terminal benefits within six weeks, emphasizing that the plea of paucity of funds for delaying the payment of terminal benefits is no longer acceptable.
Fact of the Case:
The petitioner, a retired teacher, filed a writ petition seeking the release of unpaid terminal dues after serving over 33 years at a school. The school had not paid the petitioner's DCRG, Earned Leave Encashment, and other retiral dues despite several opportunities to do so.
Finding of the Court:
The court found that the school had repeatedly cited paucity of funds as the reason for not releasing the terminal benefits. The court emphasized that such a plea is no longer acceptable based on previous judgments and directed the school to release the petitioner's terminal benefits within six weeks, with detailed calculations and examination by the Directorate of Education.
Issues: Delay in payment of terminal benefits, plea of paucity of funds, non-payment of retiral dues
Ratio Decidendi: The court held that the plea of paucity of funds is not a valid reason for delaying the payment of terminal benefits, especially when the employee has earned these benefits after years of service.
Final Decision: The writ petition was allowed, and the school was directed to release the petitioner's terminal benefits within six weeks, with detailed calculations and examination by the Directorate of Education.
JUDGMENT
Jyoti Singh, J. (Oral)--Present writ petition has been filed by the Petitioner seeking the following reliefs:
"a) Directing Respondents to immediately release/pay to the Petitioner his unpaid, `DCRG', `Earned Leave Encashment' and other retiral dues with simple interest @ 12% per annum, with all consequential reliefs and benefits;
b) Cost of this Petition may also be granted to the Petitioner;"
2. Facts necessary for disposal of the writ petition, shorn of unnecessary details are that after rendering qualifying service of over 33 years, Petitioner retired on superannuation on 31.07.2021 from Sardar Patel Public Senior Secondary School/Respondents No. 2 to 4 (hereinafter referred to as the `School') as Trained Graduate Teacher. Despite rendering service for over 03 decades, Petitioner has not been paid his terminal dues such as DCRG, Earned Leave Encashment and other retiral dues etc.
3. After the present writ petition was filed, several opportunities were granted to Respondents No. 2 to 4/the School for filing counter affidavit, however, the same has not been filed. Taking into account the fact that notice in the writ petition was issued on 09.11.2021 and yet counter affidavit had not been filed as well as the more important fact that despite having superannuated on 31.07.2021, the terminal benefits of the Petitioner were not released and the School was not in a position to even put forth any plausible reason for the inaction, this Court on 14.02.2023 directed the Manager of the School to remain present in Court on the next date.
4. The matter has been taken up on the last two dates in the presence of the Manager of the School and the only reason that is repeatedly put forth by the Manager was that there is paucity of funds in the School and on account of this the terminal benefits are not being paid. On the last date, the Court had made it clear that in view of the several judgments of this Court, it is no longer open to the Schools to take the plea of paucity of funds for release of at least the terminal/retiral benefits, as these are benefits which an employee earns after having worked for years in an Institution.
5. Today, Mr. Anuj Aggarwal, learned counsel appearing on behalf of the School, on instructions from the Manager of the School, who is present in Court today, candidly submits that the terminal benefits of the Petitioner shall be released to him within a period of six weeks from today, after giving the benefit of pay revisions under the 6th and 7th CPC as well as provisions of Payment of Gratuity Act, 1972, as amended from time to time.
6. The assurance given by Mr. Aggarwal, on behalf of the School is taken on record and the writ petition is allowed. Needless to state that the School shall remain bound by the assurance given to the Court that it shall release the terminal benefits within six weeks from today.
7. It is further directed that detailed calculations of the amounts disbursed to the Petitioner shall be furnished to him as well as to Respondent No. 1/Directorate of Education who shall examine and point out if there is any discrepancy and/or any further amounts are due and payable to the Petitioner.
8. Writ petition is disposed of in the aforesaid terms granting liberty to the Petitioner to take recourse to remedies available to him, in accordance with law, in case of any surviving grievance.
The entitlement of retired employees to terminal benefits, gratuity, and leave encashment as per the provisions of the 6th and 7th CPC.
Employees are entitled to gratuity, leave encashment, and unpaid salary as per the applicable pay commissions and previous court judgments.
The court emphasized the entitlement of a retired employee to receive rightful dues in a timely manner and ordered the payment of interest on delayed payments.
Employees of unaided minority Schools entitled to benefits of 6th and 7th CPC as per the judgments and orders of the Court.
Employees of unaided minority Schools are entitled to the benefits of 6th and 7th CPC, and the arrears thereof should be paid with interest. All retiral/terminal benefits shall be released within six....
Employees are entitled to timely terminal benefits upon retirement, and delays warrant interest payments to uphold their dignity.
Timely disbursal of retirement benefits is essential, and withholding of dues without valid justification is impermissible.
The court mandated timely determination and payment of retiral benefits, emphasizing the need for a reasoned decision regarding any dues claimed as non-payable.
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