Case Note & Summary
The case pertains to appeals filed by the New Delhi Municipal Council (NDMC) and the Delhi Sikh Gurdwara Management Committee (DSGMC) against a common judgment of the Delhi High Court dated 9th December 2009. The DSGMC managed Khalsa Boys Primary School in the premises of Gurudwara Bangla Sahib, New Delhi, which received 95% grant from NDMC. Due to the building becoming dilapidated and increasing devotees, DSGMC decided to shift the school to Mata Sundari College, which was outside NDMC's jurisdiction. The staff filed writ petitions challenging the shifting, and an ex-parte stay order was passed on 30th May 2005. Despite the stay, DSGMC demolished a substantial part of the school building, rendering it non-functional. Consequently, NDMC withdrew recognition and grant-in-aid under Rule 55(1) of the Delhi Education Rules, 1973, vide order dated 14th February 2006. The staff filed fresh writ petitions seeking absorption and salaries. The learned Single Judge directed NDMC to pass a fresh speaking order and DSGMC to continue paying salaries. On appeal, the Division Bench directed DSGMC to pay arrears of salary, employ the in-service staff in a Government or Government-aided school within twelve weeks, failing which DSGMC would pay full pay and perquisites. NDMC was directed to pay retiral benefits to retired employees with interest, with liberty to seek reimbursement from DSGMC. The Supreme Court upheld the High Court's order, noting that DSGMC had demolished the school in violation of the stay order and had not challenged NDMC's withdrawal of recognition. The court found that DSGMC's offers of employment in private schools were not in compliance with the order, and thus DSGMC was liable to pay full pay and perquisites from 4th March 2010 onwards. The appeals were dismissed.
Headnote
A) Education Law - Unauthorized Closure of School - Liability of Management - Delhi Education Act and Rules, 1973, Rules 46, 55(1) - The appellant-DSGMC demolished the school building without prior approval of the competent authority and in violation of a stay order, leading to closure. The court held that the management is liable to pay salaries and re-employ the staff, and the NDMC is liable for retiral benefits of retired employees, with right of reimbursement from DSGMC. (Paras 13-14) B) Education Law - Re-employment of Staff - Government or Government-Aided School - Delhi Education Act and Rules, 1973 - The High Court directed DSGMC to employ the in-service staff in a Government or Government-aided school within twelve weeks, failing which DSGMC would have to pay full pay and perquisites. The Supreme Court upheld this direction, noting that DSGMC's offers of employment in private schools were not in compliance. (Paras 10, 13) C) Contempt of Court - Breach of Court Orders - Consequences - The DSGMC was found in breach of the Division Bench order for not re-employing the staff within the stipulated time. The court held that the second limb of the order (payment of full pay and perquisites) became operative, and DSGMC was liable to pay arrears with interest. (Para 13)
Issue of Consideration
Whether the High Court was justified in directing the appellant-DSGMC to pay arrears of salary and re-employ the teaching and non-teaching staff of the school, and whether the NDMC was liable to pay retiral benefits to retired employees.
Final Decision
The Supreme Court dismissed the appeals and upheld the High Court's order dated 9th December 2009, directing DSGMC to pay arrears of salary, re-employ the in-service staff in a Government or Government-aided school, and NDMC to pay retiral benefits to retired employees with interest, with liberty to NDMC to seek reimbursement from DSGMC.
Law Points
- Liability of management for unauthorized closure of school
- Obligation to pay salaries and re-employ staff
- Applicability of Delhi Education Act and Rules
- 1973
- Consequences of violating court orders




