Case Note & Summary
The petitioner, Sunilkumar Madanlal Agrawal, was appointed as a lecturer in Physics on 01.07.1994 at Mahavir Marwadi School Society, Gondia. He was terminated on 06.05.1996. He preferred Appeal No. STN 133 of 1996, which was allowed on 27.04.2000 granting reinstatement and full backwages. The management's Writ Petition No. 2247 of 2000 was dismissed on 07.09.2000. The petitioner was reinstated on 15.02.2002 and worked until he resigned. The present writ petition was filed seeking direction to the management to submit a proposal for approval of his appointment/reinstatement. The only question remaining was the payment of interest on the arrears of salary. The arrears of Rs.3,04,925 were paid on 13.12.2011 and a balance of Rs.20,000 on 15.05.2012. The court considered the delay in payment and held that the petitioner is entitled to interest at 6% per annum from the date of filing of the writ petition (2004) till the date of payment. The court directed the management to pay interest within three months, failing which the petitioner can recover it from the management.
Headnote
A) Service Law - Reinstatement and Backwages - Interest on Delayed Payment - The petitioner was terminated and later reinstated with full backwages; the arrears were paid after a delay of several years - The court held that the petitioner is entitled to interest on the delayed payment of arrears at the rate of 6% per annum from the date of filing of the writ petition till the date of payment (Paras 1-5).
Issue of Consideration
Whether the petitioner is entitled to interest on the delayed payment of arrears of salary and what should be the rate of interest.
Final Decision
The court directed the respondent No.4 Management to pay interest at the rate of 6% per annum on the amount of Rs.3,04,925 from the date of filing of the writ petition i.e. 2004 till 13.12.2011 and on the amount of Rs.20,000 from the date of filing of the writ petition till 15.05.2012, within a period of three months. If the amount is not paid within that period, the petitioner is entitled to recover it from the management.
Law Points
- Interest on delayed payment of salary
- rate of interest
- arrears of salary
- reinstatement with backwages
Case Details
2017 LawText (BOM) (07) 208
WRIT PETITION NO. 241 OF 2004
R. K. Deshpande, Mrs. Swapna Joshi
Shri H.A.Deshpande for Petitioner, Ms. Geeta Tiwari for Respondent Nos. 1 to 3, Shri M.V.Samarth for Respondent Nos. 4 and 5, Shri Anand S. Thotange h/f Shri Mujanil for Respondent Nos. 6 and 7
Sunilkumar Madanlal Agrawal
State of Maharashtra, Deputy Director of Education, Director of Education, Mahavir Marwadi School Society, Mahavir Marwadi Junior College of Science, Shri Anil K. Mendhe, Shri Ajay B. Shamka
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Nature of Litigation
Writ petition seeking direction for approval of appointment/reinstatement and payment of arrears with interest.
Remedy Sought
Petitioner sought direction to management to submit proposal for approval of his appointment/reinstatement and payment of arrears with interest.
Filing Reason
Petitioner was terminated and later reinstated with backwages, but arrears were paid after delay; petitioner sought interest on delayed payment.
Previous Decisions
Appeal No. STN 133 of 1996 allowed on 27.04.2000 granting reinstatement and full backwages; Writ Petition No. 2247 of 2000 dismissed on 07.09.2000.
Issues
Whether the petitioner is entitled to interest on delayed payment of arrears of salary?
What should be the rate of interest on such delayed payment?
Submissions/Arguments
Petitioner argued that he is entitled to interest on the delayed payment of arrears.
Respondents opposed the claim for interest.
Ratio Decidendi
The court held that the petitioner is entitled to interest on the delayed payment of arrears of salary at the rate of 6% per annum from the date of filing of the writ petition till the date of payment, as the payment was made after a considerable delay.
Judgment Excerpts
The only question urged and remains to be decided in this case is the payment of interest on the amount of Rs.3,04,925/ paid to the petitioner on 13.12.2011 towards part payment of arrears of salary and balance of Rs.20,000/ paid on 15.05.2012 and what should be the rate of interest if to be awarded on such payment.
We are of the view that the petitioner is entitled to interest on the delayed payment of arrears of salary at the rate of 6% per annum from the date of filing of the writ petition till the date of payment.
Procedural History
Petitioner appointed on 01.07.1994, terminated on 06.05.1996. Appeal No. STN 133 of 1996 allowed on 27.04.2000 granting reinstatement and full backwages. Management's Writ Petition No. 2247 of 2000 dismissed on 07.09.2000. Petitioner reinstated on 15.02.2002. Present writ petition filed in 2004. Arrears of Rs.3,04,925 paid on 13.12.2011 and Rs.20,000 on 15.05.2012. Judgment delivered on 03.07.2017.
