Delhi High Court Orders CPWD to Clear Outstanding Dues of Two Workers Within Three Weeks, Imposes ₹20,000 Costs
Court
directs payment of outstanding amounts under an unchallenged recovery
certificate; warns of 6% annual interest in case of further delay
LEGAL
CORRESPONDENT
NEW
DELHI, September 26, 2025: The Delhi High Court has directed
the Central Public Works Department (CPWD) to pay the outstanding dues of two
workers, Baldev Singh and Bal Kishan, within three weeks, bringing relief in a
prolonged legal battle concerning the implementation of a labour tribunal's
award passed nearly two decades ago.
Justice
Tara Vitasta Ganju, while deciding the matter titled Baldev Singh & Anr.
v. The District Collector Officer & Ors., W.P.(C) 8088/2020, observed
that the authorities had failed to make complete payments despite an earlier
direction of the High Court and that the recovery certificate issued in favour
of the workers had never been challenged.
The
Court further directed that if the outstanding amounts were not paid within
three weeks, CPWD would be liable to pay interest at the rate of 6 per cent per
annum on the balance dues. Additionally, the respondents were directed to pay
litigation costs of ₹10,000 to each petitioner or their legal representatives.
Labour
Tribunal's Award Dates Back to 2006
The
dispute originated from an award dated February 22, 2006, passed by the Central
Government Industrial Tribunal concerning the wages payable to the workers.
Following
the award, the Regional Labour Commissioner issued a recovery certificate on
January 19, 2016, for the recovery of the amounts payable to the workers.
However,
despite the recovery certificate, the workers did not receive their complete
dues, compelling them to approach the Delhi High Court in 2020.
On
October 16, 2020, the High Court directed the District Collector to take
immediate steps to implement the recovery certificate and recover the amount
from CPWD within two weeks.
The
Court further directed that the recovered amount should be paid to the workers
within another week and that the entire process should be completed within 30
days.
The
workers were also granted liberty to approach the Court again if the directions
were not complied with.
Workers
Forced to Approach High Court Again
As
the complete payments were not made, the petitioners sought revival of the writ
petition through an application filed in November 2021.
During
the subsequent proceedings, CPWD informed the Court that payments had been made
to the workers after certain deductions.
The
Court recorded that banking instruments dated January 25, 2022, had been issued
for ₹3,17,463 in favour of Baldev Singh and ₹3,29,520 in favour of Bal Kishan.
However,
the workers disputed the deductions and maintained that they were entitled to
receive the entire amounts specified in the recovery certificate.
The
authorities sought to justify their calculations by relying upon the prevailing
policy and an Office Memorandum dated October 21, 1990.
The
High Court noted that although CPWD had filed an affidavit containing a chart
of the deductions, it had failed to provide specific reasons explaining why
those deductions had been made.
Recovery
Certificate Was Never Challenged: High Court
During
the hearing, counsel appearing for CPWD submitted that no deductions had
actually been made and that the recovery certificate itself contained an error.
This
submission was strongly contested by the counsel appearing for the workers, who
pointed out that CPWD had never challenged the recovery certificate before any
competent authority or court.
The
High Court found this objection significant.
Justice
Ganju observed that the Court had already directed implementation of the
recovery certificate in October 2020, but the complete payments had still not
been made.
The
Court specifically recorded that the recovery certificate had remained
unchallenged.
In
these circumstances, the Court directed CPWD to pay the entire outstanding
balance in accordance with the recovery certificate instead of permitting the
authorities to withhold payment on the basis of their disputed calculations.
Three
Weeks to Pay, 6% Interest for Further Delay
Allowing
the workers' claim for payment of the outstanding amounts, the High Court
directed CPWD to clear the balance dues within three weeks.
The
Court ordered:
"Accordingly,
this Court deems it apposite to direct the Respondent No.3 to make good the
balance amounts payable in terms of the Recovery Certificate to both the
Petitioners/their legal representatives, within three weeks, failing which the
Respondent No.3 shall also be liable to pay interest at the rate of 6% per
annum on the balance amounts due, as set out in the Recovery Certificate."
The
Court additionally directed the respondents to pay costs of ₹10,000 each to the
petitioners or their legal representatives.
The
writ petition and all pending applications were disposed of accordingly.
Significant
Relief for Workers Seeking Enforcement of Labour Awards
The
judgment highlights the difficulties workers may face in obtaining the monetary
benefits awarded to them, even after securing favourable orders from labour
adjudicatory authorities.
The
case is particularly significant because the underlying labour tribunal award
was passed in February 2006, the recovery certificate was issued in January
2016, and the workers were still pursuing payment before the High Court in
September 2025.
The
ruling reinforces the importance of compliance with judicial directions and the
enforcement of recovery certificates issued pursuant to labour awards.
It
also demonstrates that where a recovery certificate remains unchallenged, a
subsequent dispute raised by the employer regarding its calculations does not,
by itself, justify continued non-payment of the amounts specified in that
certificate.
Advocates
Appearing in the Case
The
petitioners, Baldev Singh and Bal Kishan, were represented by Advocates Anuj
Aggarwal and Kritika Matta before the Delhi High Court.
The
respondents were represented by Central Government Standing Counsel Pratima N.
Lakra, along with Advocates Raunak Aggarwal, Chandan, Shivansh Bansal and
Kanchan Shakya.
Case
Details
Case
Title: Baldev Singh & Anr. v. The District Collector Officer & Ors.
Case
Number: W.P.(C) 8088/2020
Court:
High Court of Delhi
Coram:
Hon'ble Ms. Justice Tara Vitasta Ganju
Date
of Judgment: September 26, 2025
Counsel
for Petitioners: Advocates Anuj Aggarwal and Kritika Matta
Outcome:
CPWD directed to pay the outstanding amounts under the recovery certificate
within three weeks, failing which interest at 6% per annum would become
payable. Additional litigation costs of ₹10,000 awarded to each petitioner or
their legal representatives.
ADVOCATES'
OFFICE DETAILS
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AGGARWAL & COMPANY
ADVOCATES
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New Delhi – 110003
Mobile:
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Email:
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