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2024 Supreme(HP) 250

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Ranjan Sharma, J.
Tulsi Ram - Petitioner
Vs.
The Himachal Pradesh Tourism Development Corporation Ltd. & ors., - Respondent
CWP No.4427 of 2023 a/w CWP Nos.4428, 4431, 4432, 4476 to 4490, 4492 to 4494, 4536, 6703, 6704, 6811, 9835, 9855, 9905, 9988, 9989, 9997, 9999, 10000, 10001, 10003, 10147, 10149, 10150, 10151, 10607. 10683, 10686, 10701, 10757, 10759, 10937, 10938, 10939 of 2023, 10978 to 10981 of 2023 and 106 of 2024, 197, 273, 275, 276, 461 to 463 of 2024
Decided On : 11-01-2024

Advocates:
Advocate Appeared:
For the Petitioner: M/s. Manohar Lal Sharma, Om Prakash Goel, Praveen Chauhan, Vinay Mehta, Parav Sharma Advs.
For the Respondent: Mr. Shivank Singh Panta and Ms. Shilpa Sood, Adv.

IMPORTANT POINT
The central legal point established in the judgment is the entitlement of employees to revised retirement benefits as per government notifications and the obligation of the employer to release the benefits within a specified time frame, with applicable rates of interest on delayed payments.

Headnote:

Retirement Benefits - Payment of Arrears, Gratuity, and Leave Encashment - CCS Pension Rules, Payment of Gratuity Act - The court directed the respondent-Corporation to release the arrears of revised pay to the petitioners within six months from the due date, failing which the Corporation shall pay interest at the rate of 9% per annum. The court also directed the release of revised gratuity and leave encashment with interest at the prescribed rates.

Fact of the Case:

The petitioner, a retired Manager, sought the release of arrears of revision of pay scale, gratuity, and leave encashment as per government notifications. The respondent-Corporation had not released the benefits, citing financial constraints.

Finding of the Court:

The court found that the petitioner was entitled to the revised benefits as per government notifications and held that the Corporation's financial condition cannot justify withholding the benefits. The court directed the Corporation to release the arrears of revised pay and the revised gratuity and leave encashment with interest at prescribed rates.

Issues: The issues involved the entitlement of the petitioner to revised benefits, the Corporation's justification for withholding the benefits, and the applicable rates of interest on delayed payments.

Ratio Decidendi: The court relied on previous judgments to establish the entitlement of the petitioner to revised benefits and the Corporation's obligation to release the benefits within a specified time frame. The court also determined the applicable rates of interest on delayed payments based on relevant legal provisions.

Final Decision: The court directed the respondent-Corporation to release the arrears of revised pay, revised gratuity, and leave encashment to the petitioners within a specified time frame, failing which the Corporation would be liable to pay interest at prescribed rates. The judgment applied mutatis mutandis to all connected writ petitions.

JUDGMENT :

Ranjan Sharma, J.

Learned counsel for the petitioner(s) submits that CWP No.4427 of 2023 , titled as Tulsi Ram versus The Himachal Pradesh Tourism Development Corporation Ltd. and others, may be taken up as the lead case, for the reason that prayer and relief in all the petitions listed today is identical. In view of this, the prayer so made is granted in the interests of justice. Accordingly all the cases are taken up together and are being disposed of by this common judgment.

2. In view of the above statement made by learned counsel for the petitioner(s), the facts and other details are extracted from CWP No.4427 of 2023, titled as Tulsi Ram versus The Himachal Pradesh Tourism Development Corporation Ltd. In CWP No. 4427 of 2023, the respondent-Corporation has also filed the reply. The stand so taken in the lead case is treated as the stand in all the connected matters.

3. The petitioner has filed the instant writ petition (CWP No.4427 of 2023, being lead case), with the following prayers:-

    “a) That the respondents may kindly be directed to pay the arrears of revision of pay scale w.e.f. 01.01.2016 till 31.07.2021 with interest @ 9% per annum from the due date till the date of its realization.

(b) That the directions may kindly be issued to the respondent Corporation to revise the gratuity (DCRG) and leave encashment and to pay the same alongwith interest @ 9% per annum to the petitioner w.e.f. due date i.e. 1.8.2021 till the date of its realization.

(c) The respondents may also be directed to pay ADA and balance amount of 50% IR with interest @ 9% per annum from the due date and till the date of its realization”

4. The petitioner retired from the post of Manager from the Respondent-Corporation after rendering long service in the Corporation. Post retirement the case of the petitioner is that though the gratuity has been sanctioned and the Leave Encashment is admissible to the petitioner in terms of the revised pay scale but, the benefit of gratuity and leave encashment has not been released till day. The prayer of the petitioner is based on the Government Notifications adopted by the Corporation to grant the revised pay scales to the employees of the Corporation w.e.f. 01.01.2016. In this background, even the revised pay scales and the arrears accruing therefrom have not been released till day.

5. In this background, the petitioner is praying for the release of revised pay arrears as due in terms of the revised pay norms w.e.f. 01.01.2016 till the superannuation of the petitioner(s). In addition to this, the petitioner(s) are claiming the amount of revised retiral gratuity and leave encashment which flow from the revised pay fixation, as is applicable to the petitioner(s).

6. Upon issuance of notice on 13.9.2023, the respondents were directed to have instructions in the matter. Mr.Shivank Singh Panta, Advocate has placed on record instructions/reply by way of para wise comments in the petitions in which the respondent-Corporation is being represented by her.

7. Learned Standing Counsels for the respondent, do not dispute the entitlement of the petitioner(s) for revised pay, revised gratuity and revised leave encashment in terms of the Notifications issued by the State Government which have been adopted and made applicable to the employees of the Corporation, as per reply filed by the respondent-Corporation. The only submission so put forth is that the financial condition of the Corporation is not in good humour as on day and therefore, the admissible revised benefits as referred to above, cannot be granted to the petitioner(s) in lump sum.

8. The above plea so taken by the Standing Counsel for the Corporation, in considered view of this Court is not tenable in law, for the reason that once the petitioner(s) have served the Respondent-Corporation and by virtue of the State Government Notifications which stand adopted by the Corporation the benefits of revised pay including arrears; the revised gratuity and revised leave encas

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