Delhi High Court Ruling on Management Committee vs. Directorate of Education

In a significant development, the Delhi High Court has issued a ruling in the case involving the Management Committee and the Directorate of Education. The dispute revolves around calculations of arrears and payments to be made. This judgment has far-reaching implications for both parties involved and sets a precedent for similar cases in the future.

Facts

  • The cost incurred for engaging the Chartered Accountant/Auditor shall be borne by the Society.
  • The Director of Education can request necessary records from the School/Society for examining the amounts due and calculating final amounts.
  • The School/Society must fully cooperate in providing the necessary records.
  • The Director of Education must complete the exercise of calculating final amounts within eight weeks from receiving calculations from the Petitioners and School/Society.
  • The DOE was directed to carry out the exercise of arriving at the final calculations for the amounts payable to the petitioners.

Arguments

  • The Management Committee has already paid 20% of the arrears from the 6th CPC to the petitioners as per the judgment of 04 May, 2024.
  • The DOE calculated the amounts payable to the petitioners for a period when they were not actively discharging their duties.
  • There are other objections raised by the Management Committee regarding the calculations, which were not considered by the DOE during finalization of dues.
  • The Management Committee raised objections on two specific grounds concerning the DOE’s calculations.
  • The DOE will need to conduct a fresh assessment in light of the judgment passed on 01 May, 2024 in W.P.(C) No 6132/2024.
  • He submits that in the interim, there is no impediment for the Management Committee to release amounts to the petitioners based on calculations by the DOE.
  • The judgment dated 04 May, 2023 in W.P.(C) No 4542/2021 and connected matters has already attained finality, and compliance is mandatory for the respondents.
  • The claim that 20% of the amount was released to the petitioners by the Management Committee is disputed by counsel for the petitioners.
  • Objections raised by the Management Committee regarding payment for periods of non-duty were not entertained by the Court in W.P.(C) No 4542/2021, hence cannot be raised at this stage.
  • A detailed comprehensive exercise by the DOE indicates the Management Committee’s liability to pay an amount of ₹ 5,51,53,744 to the petitioners.
  • The petitioners were not impleaded in the said petition and were a necessary party who were not heard.
  • Mr. Jain, learned ASC, GNCTD assures that the exercise will be carried out 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 carried out by the DOE, resulting in a total amount payable to the petitioners of ₹5,51,53,744.
  • Directions have been issued to the DOE in May 2024 to consider the representation of the Management Committee and reassess its calculations accordingly.
  • The Competent Authority of Directorate of Education is instructed to communicate 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.
  • A Coordinate Bench directed the DOE to consider the Management Committee’s objections and representation.
  • The Management Committee to file an affidavit of undertaking within ten days.
  • Petitioners and their representatives to appear before the DOE during the consideration of objections.
  • Fresh assessment of calculations to be done by DOE as per court directions.
  • Management Committee to comply with directions of releasing 20% of calculated amount within a week.
  • Remaining amounts to be disbursed in six equal installments over 12 months.
  • Both petitioners and Management Committee to raise objections to calculations before finalization.
  • Final report with calculations to be furnished to both parties for release of amounts due.
  • Petitioners and School/Society to provide calculations to DOE within ten days.
  • DOE can engage a Chartered Accountant or Auditor for examination of calculations.

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

Case Number: CONT.CAS(C)-297/2024

Click here to read/download original judgement

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