Delhi High Court Judgement: Dispute Between School Society & Management Committee

In a recent Delhi High Court judgement, a significant dispute between a School Society and a Management Committee was addressed. The court directed the Department of Education to reconsider objections raised by the Management Committee regarding the final calculations of amounts payable. Both parties have challenged the calculations, and the court has issued directives for a fresh assessment. Stay tuned to understand the intricacies of this legal battle between the School Society and the Management Committee.

Facts

  • The court directed the DOE to carry out the exercise of arriving at the final calculations with respect to the amounts payable to the petitioners.
  • The cost for engaging the Chartered Accountant/Auditor will be borne by the Society.
  • The Director of Education has the authority to request necessary records from the School/Society for examining the amounts due and finalizing calculations.
  • The School/Society is obligated to provide full cooperation in the matter.
  • The entire process of finalizing calculations and submitting the report should be completed by the Director of Education within eight weeks from the date of receiving the calculations from the Petitioners and School/Society.

Arguments

  • The Management Committee has already paid 20% of the arrears from 6 CPC to the petitioners, as per calculations made by them.
  • The DOE calculated amounts payable for a period when the petitioners were not discharging their duties.
  • The Management Committee raised objections in a representation dated 22 December, 2023, which were not considered by the DOE in finalizing the calculations.
  • The Management Committee raised objections regarding calculation discrepancies on two grounds.
  • The DOE needs to conduct a fresh assessment after considering the judgment passed in W.P.(C) No 6132/2024.
  • The management committee can release amounts to the petitioners based on calculations by the DOE
  • Judgment dated 04 May, 2023 in W.P.(C) No 4542/2021 has finality and respondents must comply
  • Dispute regarding 20% amount released to petitioners by the management committee
  • Objections by the management committee about payment for non-duty period not entertained by the court
  • Objections cannot be raised by management committee at this late stage
  • DOE calculations show Management Committee liable to pay ₹ 5,51,53,744/- to petitioners
  • Management Committee liable to pay petitioners as per DOE calculations in interim period
  • Petitioners were not impleaded in the petition and were never heard despite being a necessary party
  • Mr. Jain from GNCTD assures that the exercise will be carried out

Analysis

  • The petitioners have raised objections to the final calculations done by the DOE.
  • The total amount calculated by the DOE as payable to the petitioners is ₹ 5,51,53,744/-.
  • Both the petitioners and the respondent-Management Committee have challenged the final calculations.
  • Directions have been given to the DOE to consider the representation of the Management Committee and conduct a fresh assessment accordingly.
  • The Competent Authority of Directorate of Education is responsible for conveying the details of the meeting for consideration of the representation to the petitioner-society in advance.

Decision

  • The Management Committee challenged the final calculations by DOE in a writ petition.
  • Court directed DOE to reconsider the objections raised by the Management Committee.
  • The School/Society to file an affidavit of undertaking within ten days.
  • Petitioners and their representatives to be granted opportunity to appear before DOE during the reconsideration.
  • Court issued directions for compliance with the earlier judgement on releasing amounts due.
  • DOE to verify calculations and grant an opportunity to parties to present objections.
  • 20% of calculated amounts to be released within a week of finalization by DOE.
  • Remaining amounts to be disbursed in six equal installments within 12 months.
  • Both parties to have opportunity to present their case before the final report is issued.
  • Petitioners and School/Society to submit calculations to DOE within ten days.
  • DOE may engage a Chartered Accountant or Auditor to examine the calculations.

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

Case Number: CONT.CAS(C)-163/2024

Click here to read/download original judgement

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