Ahmedabad Municipal Shikshak ... vs Nagar Prathmik Shikshan Samiti
2023 Latest Caselaw 4990 Guj

     C/SCA/5518/2017                                      ORDER DATED: 28/06/2023




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

             R/SPECIAL CIVIL APPLICATION NO. 5518 of 2017

==========================================================
       AHMEDABAD MUNICIPAL SHIKSHAK PENSIONER MANDAL
                           Versus
          NAGAR PRATHMIK SHIKSHAN SAMITI & 5 other(s)
==========================================================
Appearance:
MR AS ASTHAVADI(3698) for the Petitioner(s) No. 1
MR MEET THAKKAR, AGP for the Respondent(s) No. 3,4,5,6
MR MAHARSHI PATEL FOR
HL PATEL ADVOCATES(2034) for the Respondent(s) No. 1
RULE SERVED for the Respondent(s) No. 2
==========================================================

 CORAM:HONOURABLE MR. JUSTICE RAJENDRA M. SAREEN

                               Date : 28/06/2023

                                ORAL ORDER

1. The present petition is filed by the petitioner - Ahmedabad Municipal Shikshak Pensioner Mandal with the following prayers.

"(A) Your Lordship may be pleased to admit and allow the present petition;

(B) Your Lordship may be pleased to direct the respondents to pay the interest @ 12% per annum for delayed payment of higher grade pay scales as well as arrears of pension to the members of the petitioner association who are paid higher grade pay arrears after the order of this Hon'ble Court dated 26.04.2016 from the date of their entitlement till actual payment in the interest of justice ;"

C/SCA/5518/2017 ORDER DATED: 28/06/2023

2. The brief facts of the case are that the State of Gujarat had introduced a scheme of higher grade pay scale for the benefits of its employees by issuing Government Resolution dated 05.07.1991. Thereafter, the State Government further issued a Government Resolution dated 16.08.1994 with certain modifications in the earlier resolution. The respondent- School Board passed a resolution dated 10.06.1996, wherein it was decided to approve and adopt the higher grade pay scale scheme of the State Government as per the resolution dated 16.08.1994 issued by the State Government. Though, the said resolution was passed in the year 1996, the respondents No. 1 & 2 did not extend the benefits of the State Government Resolution to its employees, who have retired thereafter. The petitioner association has time and again made representations to the respondents No. 1 & 2.

2.1 On 06.10.2015 and 10.10.2015, the petitioner association issued legal notices through its advocate, whereby it was informed to the respondents that members of the petitioner association are entitled to higher pay scale with interest as per G.R. 16.08.1994. In response of the notice, the petitioners were informed that due to the limited staff and heavy work, the work of payment is pending, admitting the entitlement to higher pay scale to the petitioners. The petitioners have retired in 1998. Seventeen years have been passed, the respondent- Corporation has not paid the benefits to the retired employees. It is also the case of the petitioners that respondent - Corporation has already extended the benefits to the employees who are presently working and they have not extended the benefits to the retired employees. It is also the

C/SCA/5518/2017 ORDER DATED: 28/06/2023

case of the petitioner that as per the order of this Court, the legitimate dues of the members of the petitioner association were paid to them. By order dated 06.03.2013 passed by the Co-ordinate Bench of this Court in Special Civil Application No. 13930 of 2003, this Court has directed to pay the benefit of higher grade pay to the similar situated retired teachers, who have not approached the Court and also directed to pay the interest at the rate of 12 % per annum. This Court has also directed the respondents herein to pay higher grade pay scale those retired between 1987 to 1994 with 12% interest vide order of this Court passed in Special Civil Application No. 9370 of 1997. It is the case of the petitioner that as the higher grade pay scale is not fixed, the members of the petitioner' association have been effected in the pension payment also. It is the case of the petitioner that though the respondent accepted that retired teachers from 1998 are also entitled for higher grade pay scale, the same is not paid to the members of the petitioner association. Therefore, members of the petitioner' association filed Special Civil Application No. 18965 of 2015, which was partly allowed by this Court vide order dated 26.04.2016 wherein respondents were directed to pay the higher grade pay scale to the members of the petitioner' association within a period of six months and right to interest of the petitioner was kept open to approach this Court after six months. The petitioners also filed Misc. Civil Application No. 1626 of 2016 to clarify their rights of having the interest which was clarified by the order dated 16.06.2016 in Misc. Civil Application No. 1626 of 2016. The details from the respondents regarding the payment to the members of the petitioner' association was sought for. In reply to that on 31.12.2016, it

C/SCA/5518/2017 ORDER DATED: 28/06/2023

was stated that all the retired teachers are paid the amount of higher grade pay scale. As such, it is the clear case where the respondents deliberately and without any reason have neglected to pay the amount of higher grade pay to its employees. Though, the resolution to that effect was made by the respondent- Corporation on 10.06.1996. As such, this petition is filed by the petitioners praying for interest for delayed payment of higher grade pay scale.

3. Affidavit-in-reply on behalf of respondent No.1 has been filed. It is contended that there are 700 primary school teachers who were entitled to higher pay scale and pay scale revision for the purpose of competition of pension. It is also contended that in the order dated 21.01.2016, this Court has recorded that Rs. 38,60,000/- has been disbursed to the pensioners and 60% of the total amount has already been paid before 17.09.2016 and balance of the amount, they were required to be considered by the authority. It is also contended that entire amount to the tune of Rs. 59,21,000/- has been disbursed amongst the pensioners. The petitioners filed review petition being Misc. Civil Application No. 1626 of 2016, wherein this Court has held that "this should not be construed as if for all times to come if the Local Fund Office does not clear the payment still interest would not be paid. It would be open for the petitioner to claim interest."

4. By letter dated 01.12.2016, the petitioners have sought for information from the school-Board. The details were offered by the school, wherein it was clarified that the payment has been made to the petitioners. The petitioners have also been

C/SCA/5518/2017 ORDER DATED: 28/06/2023

intimated that the total amount has been paid and some part of the last installment may not have been paid in accordance with the direction of this Court. It has also been contended that there has been no intentional delay, the delay has taken place because of competition of pensioners and certification thereof by the Local Fund Authority in making available fund i.e. 80% fund from the Government and 20% fund from the Corporation. In view thereof, it is submitted that the petitioners are entitled for interest as prayed for and has submitted that this petition may be allowed.

5. It is submitted by the learned advocate Mr. Ashthawadi for the petitioners -Ahmedabad Municipal Shikshak Pensioner Mandal, an association of the retired primary school teachers of Municipal Board, who have retired upto 1998 and they had not been given the benefits of higher grade pay scale and also due to non payment of higher grade pay and there was anomaly in the pension benefits also and thereafter by the order of this Court passed in Special Civil Application No. 18965 of 2015, the payment was made by the authorities upto 17.09.2016 after the order of this Court and also the right of claiming of interest was kept open during the period of delayed payment from the entitlement till the actual amount is made. Learned advocate for the petitioner has relied on the decision of this Court in the case of Ahmedabad Municipal Shikshak Pensioner Mandal Vs. Administrative Officer reported in 2007 Law Suit (Guj) 896.

6. At the outset, it is to be noted that the review petition being Misc. Civil Application No. 1626 of 2016 filed, for

C/SCA/5518/2017 ORDER DATED: 28/06/2023

modifying the last para of the order dated 26.04.2016 was disposed of accordingly. However, the time of six months was granted by the Co-ordinate Bench of this Court in Special Civil Application No. 18965 of 2015 vide order dated 26.04.2016.

3. It is submitted by the learned advocate Mr. Maharshi Patel for HL Patel Advocates that that payment has been made to the petitioners within a period of six months, as such there is no delay in payment, initially 60% of the amount was already paid and 40% of the amount was required to be approved by the Local Fund Authority and that said amount is also paid. It is submitted that some of the pensioners could not be paid within a period of six months because proper verification could not be undertaken by the Local Fund Authority and the entire amount is already paid in due time. It is also submitted that 3401 pensioners have been paid, total amount disbursed is Rs. 61,21,92,987/- and 60% was already paid before 17.09.2016. It is submitted that since arrears was to be paid to the heirs of the deceased, further scrutiny was required and no interest can be claimed by the petitioners.

4. Now considering the judgment of this Court, the only dispute which is being raised by the petitioners is regarding the payment of arrears and this Court is required to consider whether the petitioners are entitled for the interest on delayed payment and interest from the date of the retirement till the actual payment or not. It is an admitted position that the petitioners are entitled to higher grade pay scale as per G.R. dated 05.07.1991. It is not in dispute that respondents No. 1 & 2 were supposed to revised pay scale and fixed the pension on

C/SCA/5518/2017 ORDER DATED: 28/06/2023

the basis of the G.R. dated 05.07.1991 and G.R. dated 16.08.1994. It is also not in dispute that the amount which has been paid to the petitioners towards the higher pay scale and fixing the pension on the basis of that payment, it has been made belatedly. As such there is no dispute with regard to the entitlement of the higher pay scale. It is also not in dispute all the teachers have been retired, as per G.R. 16.08.1994 all the employees who have retired, are required to be given benefit of the higher grade pay scale as G.R. 05.07.1991. It is also not in dispute that as per the policy and the Government Resolution, primary teachers are entitled to all the benefits which are available to other Government employees, like benefit of higher pay scale etc. Therefore, as such as stated above, entitlement with regard to the benefit of higher pay scale, there is no dispute which is already paid. However, the benefit of higher pay scale was not given and that pension was not accordingly fixed, the same has been paid belatedly, for which there is no fault on the part of the retired teachers. The judgment relied by the learned advocate for the petitioners, wherein it is observed that there is no fault on the part of the retired teacher. Thus, the petitioners are entitled for the interest on the delayed payment. In a similar situation even with regard to the primary teachers of other district Panchayat where benefit of higher pay scale was not given and paid belatedly, this Court has awarded interest at the rate of 12% from the date of entitlement till payment. Considering various orders passed by the Court referred to hereinabove, the petitioners - primary teachers of the Municipal School Board who have retied between 01.06.1987 to 31.07.1994 are entitled to interest at the rate of 12% per annum from the date

C/SCA/5518/2017 ORDER DATED: 28/06/2023

of their entitlement till actual payment.

5. Considering the aforesaid observations made by this Court and in the facts and circumstances of this case, the interest is required to be paid on the delayed payment of higher grade pay scale.

6. For the reasons stated above, the present petition is allowed. Respondents No.1 & 2 are directed to pay the interest at the rate of 10% on the delayed payment of arrears and pension on the basis of the G.R. dated 05.07.1991 from 1998 till the actual payment. Considering the fact that some retired teachers are also are senior citizen, the concerned respondents are directed to complete the calculation within a period of two months from today and make the payment of interest within a period of one month thereafter. The entire exercise shall be completed and payment shall be made within a period of three months from today. Rule is made absolute to the aforesaid extent. No order as to costs.

(RAJENDRA M. SAREEN,J) SALIM/55