Arrears of Salaries: Legal Analysis by High Court

The High Court recently issued a significant ruling regarding the arrears of salaries for teaching & non-teaching staff in a private school. The Court’s analysis focused on the adherence to designated pay scales and the obligation of the management to fulfill salary commitments as per regulations and recommendations. This legal development sheds light on the importance of timely and fair disbursal of wages to employees in compliance with established rules and court directives.

Facts

  • The High Court declared that the original petitioners are entitled to receive wages in pay scales as per Schedule – C to the Maharashtra Employees of Private Schools (Condition of Service) Regulation Rules, 1981.
  • The Division Bench directed the Deputy Director (Education) to ensure that the teachers working with the petitioner’s school receive their wages and salaries according to the designated pay scales.
  • The High Court did not agree with the petitioner’s submission to limit arrears to three years prior to the filing of the writ petition.

Also Read: Judicial Review of Delayed Writ Petition

Issue

  • Entitlement of teacher’s salaries as per the 5th and 6th Pay Commission to the staff of the second petitioner school is not required to be considered.
  • The main issue to be determined is whether the arrears should be limited to three years prior to the filing of the writ petition.

Also Read: Ownership Dispute: Legal Analysis on Admission and Decree

Arguments

  • Respondents were compelled to approach Deputy Director when petitioners failed to pay wages as per rules and recommendations of 6th Pay Commission.
  • Respondents cannot be denied arrears of salaries as per 6th Pay Commission due to petitioners’ inaction.
  • Total arrears as per Fifth and Sixth Pay Commissions amount to Rs. 6,54,47,686/-, with 50% being Rs. 3,27,23,843/-.
  • Interim stay granted on impugned order with condition for petitioners to deposit 50% of total amount within eight weeks.
  • Deputy Director of Education directed to identify and disburse arrears to staff of Model English School as per High Court’s order.
  • Exercise of disbursement to be completed within four weeks.
  • Petitioners had a duty to pay salaries as per 6th Pay Commission without requiring staff to approach Deputy Director repeatedly.
  • Petitioners’ argument regarding limitation for arrears of last three years preceding writ petitions was not accepted.
  • Ms. Bina Madhavan, learned counsel for the petitioners and Mr. Akshay Girish Ringe & Mr. Bhaskar Y. Kulkarni, learned counsel for the respondents agreed to disburse the deposited amount to the teaching & non-teaching staff and other employees of the Model English School.
  • The counsel for the petitioners will provide the details of the bank account of the Deputy Director of Education, Maharashtra to the Court’s Registry within two days.
  • The Court directed the Registry to transmit the amount of Rs. 3,27,23,843 to the Deputy Director of Education, Maharashtra for disbursement to the school employees.
  • Previous litigations have favored the teaching and non-teaching staff regarding salary payments as per the 4th and 5th Pay Commissions, establishing the management’s liability.

Also Read: Interpretation of Statutory Limitation under Section 263(2)

Decision

  • Amount to be disbursed to teaching & non-teaching staff and other employees of Model English School as per High Court order.
  • Amount of Rs.3,27,23,843 deposited in the Supreme Court Registry by the petitioners.
  • Deputy Director (Education), Nasik Division directed to ensure disbursement to respective respondents by account payee cheques.
  • Petitioners ready to pay arrears as per 6th Pay Commission for preceding three years.
  • Disbursement of arrears to be without prejudice to petitioners’ and respondents’ contentions.
  • Special leave petitions to be dismissed.
  • Petitioners directed to clear arrears within eight weeks, failing which interest at 9% will be applicable.
  • Disbursement of Rs.3,27,23,843 to teaching, non-teaching staff, and other entitled employees in compliance with High Court orders.

Case Title: KERALEEYA SAMAJAM Vs. PRATIBHA DATTATRAY KULKARNI (DEAD) THROUGH LR (2021 INSC 594)

Case Number: SLP(C) No.-021660-021661 / 2019

Click here to read/download original judgement

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