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2026 Supreme(Raj) 52

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
VINIT KUMAR MATHUR, CHANDRA SHEKHAR SHARMA, JJ.
The Director, Technical Education - Appellant
Versus
Managing Committee, Vidya Bhawan Society, Fatehpura Udaipur. Through The Secretary – Respondent 
D.B. Spl. Appl. Writ No. 295 of 2023, D.B. Spl. Appl. Writ No. 338 of 2023, D.B. Spl. Appl. Writ No. 615 of 2023, D.B. Spl. Appl. Writ No. 644 of 2023, D.B. Spl. Appl. Writ No. 649 of 2023, D.B. Spl. Appl. Writ No. 653 of 2023, D.B. Spl. Appl. Writ No. 684 of 2023, D.B. Spl. Appl. Writ No. 731 of 2023, D.B. Spl. Appl. Writ No. 737 of 2023, D.B. Spl. Appl. Writ No. 792 of 2023
Decided On : 04-02-2026

Advocates Appeared:
For the Appellant: Mr. Sajjan Singh Rathore, Aag With Mr. Yuvraj Singh Rathore, Mr. Ravindra Jhala For Mr. S.S.Ladrecha, Aag
For the Respondent: Mr. Rakesh Arora

Respondent institutions may claim interest on delayed Grant-in-Aid payments if evidence proves claims were pending for over 60 days, ensuring fair compensation.

Headnote:(A) Rajasthan Non-Government Educational Institutions Rules, 1993 - Special Appeals - Appellant contests order for payment of interest on delayed Grant-in-Aid - The court emphasizes that payment of interest is warranted if delays exceed 60 days post-filing of claim applications (Paras 3, 6, 7).

(B) Interest on delayed payment - Entitlement to interest arises when payment is delayed beyond a reasonable time frame specified by court (60 days) (Paras 4, 7).

Facts of the case:
Appellant contests the learned Single Judge's order which directed interest payment to respondent institutions for delays in Grant-in-Aid disbursements. Respondent institutions assert delays in payments due to State Government's inaction (Paras 1, 2).

Findings of Court:
The court modifies the order for the conditions under which interest will be awarded on delayed payments, emphasizing the need for documentation of claim application dates (Paras 6, 7).

Issues: Whether respondent institutions are entitled to interest on delayed Grant-in-Aid payments?

Ratio Decidendi: Respondent institutions can claim interest on delayed payments if proof shows claims were pending beyond 60 days, underscoring the necessity of fair compensation for delayed disbursement by the State (Paras 7).

Result: Appeals disposed with specific direction regarding interest entitlement based on timely evidence of claims.

Table of Content
1. overview of appeals related to delayed payments. (Para 1 , 2)
2. contention regarding state's delay in payments. (Para 3 , 4)
3. court's ruling on interest entitlement based on claim application dates. (Para 5 , 6 , 7)
4. final orders on payment disbursement and applications. (Para 8 , 9 , 10)

JUDGMENT :

Heard learned counsel for the parties.

1.The present bunch of Special Appeals arise out of the common order dated 26.08.2022 passed by the learned Single Judge whereby a batch of writ petitions was decided directing the appellant State to pay the interest as directed by the Tribunal on the delayed payment of Grant-in-Aid, therefore, the present appeals are being decided by this common judgment.

2. For deciding the controversy involved in the present batch of appeals, briefly noted facts of the case are that the respondent institutions being aggrieved against the judgment passed by the Rajasthan Non-Government Educational Institutions Tribunal, Jaipur (hereinafter referred to as the ‘Tribunal’) on various dates and the Execution Petitions being pending before the Civil courts, filed the writ petitions before the learned Single Judge. In the writ petitions, it was stated that the respondents therein, who are teachers/employees of the institutions approached the Tribunal for payment of due amount of gratuity, leave encashment and other payments relating to the arrears of pay based on revision of pay scales. The case of the teachers/employees were decided by the Tribunal. Against the order passed by the learned Tribunal giving direction of payment of interest on the amount due to the teachers/employees, the writ petitions were preferred by the respondent institutions. The writ petitions filed by the respondent Institutions were decided by the learned Single Bench vide its order dated 26.08.2022 whereby a direction was issued for payment of interest to be borne by the State Government though interest on the amount of gratuity was was not ordered to be paid. Aggrieved by this order dated 26.08.2022, the present batch of appeals was filed by the appellant State.

3. Mr. Sajjan Singh Rathore, learned Additional Advocate General vehemently submitted that there is no delay in making payment of the amount of Grant-in-Aid to the respondent- institutions because when the applications for claim in the prescribed Format were preferred by the respondent-Institutions to the State Government, the same were processed and the amount admissible in accordance with the rules was released to the respondent institutions for payment to its employees. Learned Additional Advocate General submits that since there was no delay on the part of the State Government in releasing the payment, therefore, the liability of making payment of interest cannot be fastened upon the State Government. He, therefore, prays that the present batch of appeals may be allowed and the order dated 26.08.2022 passed by learned Single Judge may be quashed and set aside to that extent.

4. Per contra, learned counsel appearing for the respondent- institutions vehemently opposed the submissions made by learned Additional Advocate General. He submits that repeated requests/reminders were sent to the State Government for making payment of Grant-in-Aid to the respondent-Institutions so that they can make further payments to their employees. Learned counsel submits that since the amount were not released by the State Government, therefore, writ petitions as well as contempt petitions were also filed before this Court. Learned counsel submits that after specific direction having been issued by this court, the amount due was paid by the State Government. To buttress his contentions, learned counsel for the respondent- institutions has relied upon the judgment dated 13.03.2018 passed by Division Bench of this Court in a batch of appeals led by D.B. Special Appeal (Writ) No.178/2017 (Mohan Giri Goswami v/s Managing Committee, Rajasthan Mahil Parishad & Ors.) and judgment dated 22.01

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