Delhi High Court Decision: Dispute Over Arrears Calculation Between Society and Petitioners

In a recent judgment by the Delhi High Court, a major dispute over arrears calculation has been addressed between a society and the petitioners involved in the case. The court’s decision has far-reaching implications for both parties, shedding light on the complexities of financial claims in legal proceedings. Let’s delve deeper into the details of this significant legal case involving the society and the petitioners.

Facts

  • The court directed the DOE to examine the calculations submitted by the respective parties.
  • The DOE was directed to prepare a final report after hearing both parties.
  • 20% of the calculated amount was to be released to the petitioners within a week by the Society.
  • The remaining outstanding amount was to be paid in six equal installments within 12 months.
  • The calculations provided by the DOE did not include the balance amount for the period between April 1, 2021, to September 30, 2023, separately.
  • The Management Committee raised various issues regarding the calculation of dues payable to the petitioners.
  • The judgment of May, 2024, passed by another bench, stated that the DOE’s calculations did not consider the representation of the Management Committee.
  • The writ petitions were disposed of with the option for the petitioners to seek further legal remedies if needed.

Arguments

  • DOE made calculations without considering arrears already paid to the petitioners by the Management Committee.
  • 20% of the arrears amount has already been released to the petitioners as per the judgment dated 04 May 2024.
  • DOE calculated amounts for a period when the petitioners were not on duty.
  • Management Committee raised objections in a representation dated 22 December 2023, not considered by the DOE in finalizing calculations.
  • Objections raised by the Management Committee were on two grounds not accounted for by the DOE.
  • DOE will need to conduct a new assessment after factoring in the judgment dated 01 May 2024 in W.P.(C) No 6132/2024.
  • The management committee can release amounts to the petitioners as per calculations by the DOE without any impediment.
  • Judgment dated 04 May, 2023, in W.P.(C) No 4542/2021 and connected matters has attained finality and respondents must comply with it.
  • The petitioners dispute that 20% of the amount was released to them by the Management Committee.
  • Objections by Management Committee regarding payment of salary during duty absence were not entertained by the Court previously and cannot be raised belatedly.
  • DOE has done a detailed exercise stating the Management Committee owes ₹5,51,53,744/- to the petitioners.
  • The Management Committee is liable to pay petitioners as per DOE calculations during this interim period.
  • The petitioners were never heard in the said petition although they were a necessary party involved.
  • Mr. Jain from GNCTD assures that the exercise will be conducted by the Directorate of Education.

Analysis

  • The final calculations of the Directorate of Education (DOE) have been challenged by both the petitioners and the Management Committee.
  • A detailed exercise was conducted by the DOE, resulting in a total amount of ₹ 5,51,53,744 calculated as payable to the petitioners.
  • Directions have been given to the DOE to reevaluate its calculations based on the representations made by the Management Committee.
  • The Competent Authority of the Directorate of Education is responsible for organizing a meeting to consider the representations, and the petitioner-society should be informed in advance about the date, time, and venue of the meeting.

Decision

  • The DOE has been directed to reconsider the representation dated 22nd December, 2023 submitted by the petitioner-society regarding arrears of the 6th and 7th Central Pay Commission.
  • The Management Committee shall comply with the directions given in the judgment dated 4th May, 2023, including the release of 20% of the calculated amount within one week of finalization by the DOE.
  • The remaining outstanding amounts are to be disbursed to the Petitioners within 12 months in six equal installments.
  • Both parties have the liberty to raise objections with respect to the calculations of the DOE.
  • The final report on the amounts due to the Petitioners will be based on the assessment/verification of calculations by the DOE.
  • The School/Society shall release 20% of the amounts due within one week of receiving the final report.
  • Petitioners and the School/Society are required to furnish their calculations of amounts due to the Petitioners within ten days.
  • The DOE will examine the calculations and may engage a Chartered Accountant or Auditor for this purpose.

Case Title: SUMEDHA SHARMA Vs. CL BHALLA DAYANAND MODEL SCHOOL & ORS. (2024:DHC:3798)

Case Number: CONT.CAS(C)-169/2024

Click here to read/download original judgement

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