Institutions That Can't Pay Long Outstanding Salaries For Years Draws Attention To Its Right To Continue As An Employer: Delhi High Court

The Delhi High Court has observed that an institution which cannot pay its long outstanding salaries for years, which are statutorily due, draws attention to its financial stability and its right to continue as an employer.

A division bench comprising of Justice Najmi Waziri and Justice Vikas Mahajan was of the opinion that it is for the State Government to look into the matter and ensure that the educational institutions comply with and conform to the strict norms of law.

The Court was dealing with an LPA filed by Delhi Sukh Gurudwara Management Committee concerning non-payment of outstanding amount to teachers paid under the Sixth Pay Commission for the past eight years.

It was argued by the appellant that they were paying the outstanding amounts along with interest, therefore, no prejudice was being caused to the respondent teachers.

"This argument has only to be made to be rejected. A teacher or a workman expects full remuneration every month, their families and dependents have their own financial exigencies, which need to be met right away. In the hope that they will receive the monies later on, many have lost their lives in the past two years. Their desires and hopes have not been redeemed. An institution, which cannot pay its long outstanding salaries for years, which are statutorily due, draws attention to its financial stability and its right to continue as an employer," the Court observed.

The counsel appearing for the appellants argued that they were running educational institutions largely on the basis of contributions received through religious congregations and from other philanthropic organisations.

It was further submitted that the past two years had been rather difficult for them, hence, there was some delay in making the said payments.

"However, the payment which has to be first paid out relates to about 8 years ago, surely that is long time for the monies to be arranged," the Court noted.

The Court further opined that the subsequent dues from January 1, 2016 apropos for the Seventh Pay Commission had not even commenced to be paid.

"The latter event led to upward revision and enhancement in the monthly remuneration of teachers between 25% to 30%. Why should teachers be denied this benefit for 8 years. Non-payment of their just dues is unfair to them," the Court observed.

At the outset, the appellants submitted on instructions that the arrears of approximately 25% under the Sixth Pay Commission shall be cleared by July 15, 2022.

"Let the said arrears be paid in two equal instalments by 10.07.2022. The first installment shall be paid by 15.06.2022 and second installment by 10.07.2022, failing which the Chairman of the Management Committee/Governing Body of the appellant no.1 shall be present in the court on the next date," the Court directed.

It added "All retirement benefits of retirees too, shall also be cleared by 10.07.2022."

The matter will now be heard on July 12.

Case Title: DELHI SIKH GURDWARA MANAGEMENT COMMITTEE & ORS. v. RAVINDER KAUR BHATIA & ORS.

Citation: 2022 LiveLaw (Del) 560

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