Supreme Court Upholds High Court Order Directing DSGMC to Pay Salaries and Re-employ Staff After Unauthorized School Closure. NDMC and DSGMC Held Liable for Service Benefits of Employees Following Demolition of School Building in Violation of Stay Order.

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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)

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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.

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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
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Case Details

2024 LawText (SC) (8) 283

Civil Appeal No(s). 7440-7441 of 2012 and Civil Appeal No(s). 7442-7444 of 2012

2024-08-28

Mehta, J.

2024 INSC 635

New Delhi Municipal Council and Another; Delhi Sikh Gurdwara Management Committee

Manju Tomar and Others

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Nature of Litigation

Civil appeals against a common judgment of the Delhi High Court in Letters Patent Appeals concerning the closure of a school and the rights of its employees.

Remedy Sought

The appellants (NDMC and DSGMC) sought to set aside the High Court's order directing payment of salaries, re-employment of staff, and payment of retiral benefits.

Filing Reason

The DSGMC demolished the school building in violation of a stay order, leading to closure; NDMC withdrew recognition and grant-in-aid; employees sought relief.

Previous Decisions

The High Court of Delhi (Division Bench) vide order dated 9th December 2009 directed DSGMC to pay arrears of salary, re-employ staff in a Government or Government-aided school, and NDMC to pay retiral benefits to retired employees with interest.

Issues

Whether the High Court was justified in directing DSGMC to pay arrears of salary and re-employ the staff? Whether NDMC was liable to pay retiral benefits to retired employees? Whether DSGMC's offers of employment in private schools complied with the High Court's order?

Submissions/Arguments

The appellants argued that the High Court's directions were erroneous and that the DSGMC had offered employment to the staff. The respondents (employees) contended that the offers were not in compliance as the schools were not Government or Government-aided, and that DSGMC had violated the stay order.

Ratio Decidendi

The management of a school that closes it without prior approval of the competent authority and in violation of a court order is liable to pay salaries and re-employ the staff. The NDMC, as the grant-giving authority, is liable for retiral benefits of retired employees but can seek reimbursement from the management.

Judgment Excerpts

That appellant-DSGMC demolished a substantial part of the school building without seeking permission from the competent authority, i.e., NDMC, leading to the closure of the school. The demolition was undertaken in spite of an interim stay order passed by the High Court of Delhi on 30th May, 2005.

Procedural History

The employees filed writ petitions in the High Court of Delhi challenging the shifting of the school. An ex-parte stay was granted on 30th May 2005. Despite the stay, DSGMC demolished the school. NDMC withdrew recognition on 14th February 2006. Employees filed fresh writ petitions. The learned Single Judge disposed of the petitions on 13th July 2009 directing NDMC to pass a fresh speaking order and DSGMC to continue paying salaries. Appeals were filed before the Division Bench, which allowed the LPAs on 9th December 2009 with directions. NDMC and DSGMC appealed to the Supreme Court.

Acts & Sections

  • Delhi Education Act and Rules, 1973: Rule 46, Rule 55(1), Rule 69
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