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2026 Supreme(Del) 137

IN THE HIGH COURT OF DELHI AT NEW DELHI
RENU BHATNAGAR, J.
Life Insurance Corporation of India – Appellant
Versus
G.K. Nijhawan – Respondent
W.P. (C) No. 163 of 2017, C.M. APPL. Nos. 768, 27186 of 2017
Decided On : 09-02-2026

Advocates Appeared:
For the Appellants : Atul K. Bandhu, Kusum
For the Respondent: Lakshay Sawhney

Wages under Section 17(B) of the Industrial Disputes Act cease upon reaching the age of superannuation, emphasizing the link between wage entitlement and employment status.

Headnote:(A) Code of Civil Procedure, 1908 - Section 151 - Industrial Disputes Act, 1947 - Section 17

(B) - Superannuation - The petitioner was directed to pay last drawn wages or minimum wages, whichever is higher, but ceased upon the respondent attaining the age of superannuation. (Paras 1, 10, 30)

(B) Application under Section 17

(B) - The benefit is confined to the period during which the workman is entitled to remain in service, which ends at superannuation; it cannot extend beyond this. (Paras 12, 26)

(C) Binding Precedent - The decisions of Division Benches clarify that an employee cannot claim wages under Section 17

(B) after superannuation, reiterating a consistent judicial approach. (Paras 24, 27)

(D) Financial hardship is recognized, but cannot alter statutory entitlements; obligations under Section 17

(B) must align with prior judicial interpretation. (Paras 29, 30)

Facts of the case:
The respondent, employed with the petitioner since 1984, was reinstated with back wages following an unproven domestic inquiry. The petitioner contested the respondent's entitlement to continued wages after reaching the age of superannuation on 11.04.2024. (Paras 3, 10, 30)

Findings of Court:
The court held that the direction for payment under Section 17

(B) is valid only until the attainment of superannuation, and payments beyond that date were unsupported by law. (Paras 30-34)

Issues: Whether the respondent is entitled to receive wages under Section 17

(B) post-superannuation. (Paras 22, 30)

Ratio Decidendi: Section 17

(B) payments are intrinsically linked to an employer-employee relationship, which ends at superannuation; no further wage obligations exist thereafter. Continuation of payments contradicts established legal principles. (Paras 12, 28, 29)

Result: The order directing payments under Section 17

(B) is modified; no payments shall be made beyond 30.04.2024.

Table of Content
1. respondent's employment history and dispute background. (Para 3 , 4 , 5 , 6 , 8)
2. superannuation affecting entitlement under section 17(b). (Para 10 , 11 , 12 , 13 , 14)
3. arguments against extending benefits post-superannuation. (Para 16 , 17 , 18 , 19)
4. legal precedent on the limits of section 17(b) application. (Para 24 , 27 , 28)
5. court's decision to confine payment to pre-superannuation. (Para 30 , 32)

JUDGMENT :

RENU BHATNAGAR, J.

CM APPL. 27794/2024

1. The present application has been filed by the petitioner under Section 151 of the Code of Civil Procedure, 1908 read with Section 17 (B) of the Industrial Disputes Act, 1947 (hereinafter "ID Act"), seeking modification of the order dated 17.11.2017 passed by this Court in W.P. (C) No. 163 of 2017, whereby the petitioner was directed to pay to the respondent last drawn wages or minimum wages, whichever is higher, from the date of the award dated 21.06.2016 till the disposal of the writ petition.

2. Before adverting to the present application, this Court deems it appropriate to first lay down the facts for adjudication.

3. The respondent was appointed with the Petitioner company in June, 1984 as a Typist. At the relevant time, he was working as a Higher Grade Assistant (HGA) and was posted at a branch of the Delhi Divisional Office of the petitioner.

4. The respondent raised an industrial dispute under Section 2A(2) of the INDUSTRIAL TRIBUNALS ACT , 1947, which was registered as ID No. 80/2012 before the Central Government Industrial Tribunal-cum-Labour Court No.1, Karkardooma Courts, Delhi (hereinafter "Tribunal") against the domestic enquiry conducted and decided against him on the charges alleging repeated defiance of office instructions, insubordination and refusal to perform duties assigned to him, including refusal to process revival and change of mode under specified policy numbers and failure to perform duties under the Salary Saving Scheme pursuant to office orders dated 04.02.2010 and 29.04.2010.

5. Upon appreciation of the evidence adduced after the enquiry was held to be invalid, the Tribunal passed an Award dated 21.06.2016 holding that the charges were not proved and directed reinstatement of the respondent with full back wages and consequential benefits.

6. Aggrieved by the Award dated 21.06.2016, the petitioner filed W.P.(C) No. 163 of 2017 before this Court. The Award was not implemented, and the respondent was not reinstated during the pendency of the writ petition. During the pendency of the writ petition, the respondent moved an application under Section 17 (B) of the Industrial Disputes Act seeking payment of last drawn wages from the date of the Award.

7. By order dated 17.11.2017 passed by this Court, the petitioner was directed to pay to the respondent last drawn wages or minimum wages, whichever was higher, from the date of the Award till the disposal of the writ petition. The petitioner was also directed to clear arrears within six weeks, failing which interest at the rate of 9% per annum was payable, and to pay litigation expenses of Rs. 11,000/-. The monthly amount was directed to be paid on or before the 7th day of every month.

8. The petitioner has stated that in compliance with the order dated 17.11.2017, all arrears, litigation expenses, and monthly payments were made to the respondent up to 07.04.2024.

9. Learned counsel appearing on behalf of the petitioner submits that the order dated 17.11.2017 directing payment of last drawn wages under Section 17 (B) of the Industrial Disputes Act was passed during the pendency of the writ petition and was operative only so long as the respondent continued to be entitled to remain in service of the petitioner.

10. It is submitted that the respondent completed the age of 60 years on 11.04.2024. In terms of the Life Insurance Corporation of India (Regulation of Superannuation) Rules, 1987, an employee is required to retire with effect from the afternoon of the last day of the month in which h

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