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The case arose from a dispute relating to incorrect pay fixation and denial of arrears to the appellant, Satnam Singh. The appellant challenged the decision of the Single Judge, who had relegated him to approach the Civil Court, despite the issue already being settled by earlier judgments of the High Court and the Supreme Court in similar matters.
Case Type
Service Law / Pay Fixation & Arrears
Date of Decision
25 August 2022
Court
High Court of Punjab & Haryana, Chandigarh
Duration
Prolonged service-related litigation
Outcome
Appeal Allowed (Partly)
Appeal involved
Letters Patent Appeal (LPA)
The central issue before the Court was whether the appellant should be compelled to pursue a civil remedy when the question of pay-scale revision and arrears had already been conclusively settled by binding judicial precedents. The additional dispute concerned the entitlement to interest on delayed payment of arrears.
The Division Bench observed that identical issues had been previously adjudicated in favour of similarly situated employees, including grant of revised pay scales and arrears from 01.01.1996. The Court held that it was inappropriate to relegate the appellant to a civil suit when the matter stood settled.
While acknowledging that the State had already released arrears and granted the revised pay scale, the Court examined whether interest was payable for delayed disbursement. Relying on earlier judgments, the Court reaffirmed that interest is compensatory in nature and must ordinarily follow wrongful retention of dues.
However, considering the delay on part of the appellant in challenging the rejection of his representation, the Court limited the period for which interest would be payable.
When an issue of service benefits stands settled by judicial precedent, an employee cannot be forced into prolonged civil litigation. Interest on delayed payments is a compensatory right, though it may be curtailed where delay is attributable to the claimant.
The Hon’ble High Court observed that when an issue relating to pay fixation and arrears has already been conclusively settled by binding precedents of the High Court and the Supreme Court, it is inappropriate to relegate an employee to pursue a civil suit. The Court emphasized that unnecessary prolongation of litigation defeats the purpose of justice and causes avoidable hardship to employees.
The appeal was disposed of with directions to the State to pay interest at the rate of 8% per annum on the arrears from 01.01.1996 till the date of payment, excluding the period from 21.07.2014 to 01.01.2017. The appellant’s entitlement to revised pay scale and arrears already granted was affirmed.
