In a recent legal decision, the Delhi High Court addressed the disagreements over calculations between the Management Committee and the Directorate of Education. The case involves a dispute of ₹5,51,53,744 owed according to the calculations by the DOE. Stay informed on the outcome of the representation made by the Management Committee in response to the final calculations. #DelhiHighCourt #LegalCase #CalculationDispute #DOEvsManagement
Facts
- The cost incurred for engaging the Chartered Accountant/Auditor shall be borne by the Society.
- The Director of Education has the authority to request necessary records from the School/Society to examine the amounts due and calculate the final amounts.
- The School/Society is required to provide full cooperation in this matter.
- The Director of Education must complete the exercise of final calculations within eight weeks from the receipt of calculations from the Petitioners and the School/Society.
- Subsequently, the DOE was directed to determine the final calculations for the amounts owed to the petitioners.
Arguments
- The Department of Education (DOE) made calculations without taking into account the fact that part of the arrears of 6 CPC were already paid by the Management Committee to the petitioners.
- 20% of the amount has already been released to the petitioners according to the calculation made by the Management Committee.
- Objections raised by the Management Committee in the representation dated 22 December, 2023 were not considered by the DOE during the finalization of calculations for dues payable to the petitioners.
- Management Committee objected to the calculations on two grounds which were not taken into account by the DOE.
- DOE’s counsels stated that a fresh assessment will be needed after considering the judgement passed on 01 May, 2024 in W.P.(C) No. 6132/2024.
- 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 has attained finality and the respondents must comply.
- Disputed that 20% of the amount was released to the petitioners by the Management Committee.
- Objections raised by the Management Committee regarding payment of salary were not entertained by the Court in W.P.(C) No 4542/2021.
- Such objections cannot be raised by the Management Committee at this late stage.
- DOE has done a comprehensive exercise and Management Committee is liable to pay ₹ 5,51,53,744/- to the petitioners.
- The Management Committee is liable to pay the petitioners based on calculations done by the DOE.
- Petitioners were not impleaded in the said petition and thus were never heard, even though they were a necessary party.
Analysis
- The final calculations of the Department of Education (DOE) have been disputed by both the petitioners and the respondent-Management Committee.
- A detailed calculation by DOE concluded that the petitioners are owed ₹5,51,53,744.
- Directions have been given to the DOE to review the calculations considering the representation of the Management Committee.
- The Competent Authority of Directorate of Education will inform the petitioner-society in advance about the meeting to address the representation.
Decision
- The respondent/Management Committee challenged the final calculations by the Directorate of Education (DOE).
- A Coordinate Bench of the Court directed the DOE to consider the representation of the Management Committee regarding objections to the calculations.
- An affidavit of undertaking by the General Secretary of the Society needs to be filed within ten days.
- The Management Committee will have a hearing before finalizing objections.
- Petitioners and their representatives have the liberty to appear before the DOE during this process.
- Further directions from the Coordinate Bench of the Court included reconsideration of representations and compliance with previous judgments.
- 20% of the calculated amount to be released within one week; remaining amount in six installments over 12 months.
- Opportunity for both parties to raise objections to the calculations by the DOE.
- Final report on amounts due to be furnished to both parties for release of funds.
- Instructions for submission of calculations to the DOE and engagement of a Chartered Accountant or Auditor for examination.
Case Title: ANURADHA GUPTA Vs. CL BHALLA DAYANAND MODEL SCHOOL & ORS. (2024:DHC:3798)
Case Number: CONT.CAS(C)-160/2024
