DELHI HIGH COURT ORDERS SCHOOL TO PAY RETIRED TEACHER GRATUITY AND LEAVE ENCASHMENT WITH 9% ANNUAL INTEREST
Court finds no justification
for withholding retirement benefits; directs payment with interest from the
date of superannuation.
NEW DELHI: In a
significant ruling concerning the retirement benefits of schoolteachers, the
Delhi High Court has directed The Samarth School to release the outstanding
gratuity and leave encashment of a retired teacher, together with interest at 9
per cent per annum from the date of her superannuation until actual payment.
The order was passed by Justice
Prateek Jalan on 4 July 2025, in the case of Santosh Goswami v. The
Samarth School & Others, W.P.(C) 17380/2022. The Court observed that
there was no explanation whatsoever for the delay in releasing the teacher's
retirement benefits.
TEACHER APPROACHES HIGH COURT
AFTER RETIREMENT BENEFITS REMAIN UNPAID
The petitioner, Santosh Goswami,
had served The Samarth School as a Trained Graduate Teacher (Hindi) for more
than three decades, from 16 July 1990 until her superannuation on 30 April
2022.
Following her retirement, she
approached the Delhi High Court seeking payment of gratuity and leave
encashment.
During the proceedings, counsel
representing the school submitted that any outstanding gratuity and leave
encashment calculated on the basis of the teacher's last drawn salary would be
paid within four weeks.
Taking note of this submission,
the High Court directed the school to release the outstanding amounts within
the stipulated period.
UNEXPLAINED DELAY WARRANTS 9%
INTEREST: HIGH COURT
The most significant aspect of
the ruling is the Court's direction to compensate the retired teacher for the
delay in receiving her lawful retirement benefits.
Justice Jalan observed:
"As there is no
explanation whatsoever for the delay in payment of these amounts..."
Accordingly, the Court directed
the school to pay interest at 9 per cent per annum on the unpaid amounts,
calculated from 30 April 2022, the date of superannuation, until actual
payment.
The direction underscores the
financial consequences that may follow an employer's unexplained failure to
release retirement benefits when they become payable.
SEVENTH PAY COMMISSION DISPUTE
REMAINS PENDING
A separate dispute concerning the
implementation of the Seventh Central Pay Commission (7th CPC) pay scales was
also pending before the Delhi High Court at the time of the order.
The petitioner, along with
another retired employee of the school, had instituted W.P.(C) 11519/2019
seeking implementation of the revised pay scales.
Counsel for the petitioner
submitted that a favourable decision in those proceedings could also entitle
her to enhanced gratuity and leave encashment.
The High Court clarified that the
question of enhancement would depend upon the outcome of the pending
litigation. It therefore refrained from issuing directions for enhanced
benefits at that stage, while leaving open the possibility of consequential relief
if the petitioner succeeded in the separate writ petition.
SCHOOL GRANTED ADDITIONAL FOUR
WEEKS TO COMPLY
Subsequently, The Samarth School
and another respondent sought an extension of time to comply with the order
dated 4 July 2025.
On 18 August 2025, Justice
Prateek Jalan considered the application for extension of time, which was
opposed on behalf of the petitioner by Advocate Kritika Matta.
The Court granted the school an
additional four weeks from 18 August 2025 to comply with the payment
directions.
However, it expressly clarified
that, in the event of non-compliance, the petitioner would be at liberty to
pursue appropriate legal remedies.
The subsequent order did not set
aside the direction requiring payment of 9 per cent annual interest.
SIGNIFICANCE OF THE RULING
The decision is significant for
retired employees of educational institutions who face delays in receiving
gratuity and leave encashment.
It demonstrates that a court may
direct payment of interest where retirement benefits have remained unpaid
without adequate justification.
The ruling also draws a
distinction between retirement benefits calculated on the basis of an
employee's existing last drawn salary and additional benefits that may become
payable following the resolution of a separate pay revision dispute.
Importantly, the Court preserved
the petitioner's right to pursue further legal remedies in the event of a
dispute concerning the calculation of her dues, including proceedings before
the appropriate authority under the Payment of Gratuity Act, 1972.
ADVOCATES APPEARING IN THE
MATTER
The petitioner was represented by
Advocates Anuj Aggarwal, Kritika Matta and Pradeep in the proceedings
culminating in the order dated 4 July 2025.
In the subsequent proceedings
dated 18 August 2025, Advocates Kritika Matta, Nikhil Pawar and Anuj
Aggarwal appeared on behalf of the petitioner.
CASE DETAILS
Case Title: Santosh
Goswami v. The Samarth School & Others
Court: High Court of Delhi
Case Number: W.P.(C)
17380/2022
Presiding Judge: Hon'ble Mr.
Justice Prateek Jalan
Principal Order: 4 July
2025
Subsequent Order: 18
August 2025
Relief Granted:
Outstanding gratuity and leave encashment with interest at 9 per cent per
annum.
Interest Period: From the
date of superannuation until actual payment.
ANUJ AGGARWAL & COMPANY
ADVOCATES
JANGPURA OFFICE
K-17, 2nd Floor,
Jangpura Extension,
New Delhi – 110014
DELHI HIGH COURT CHAMBERS
483, Block-II, Lawyers Chambers,
Delhi High Court,
New Delhi – 110003
Mobile: 9891403206
Email:
anujaggarwal1984@gmail.com
anujaggarwalcompany@gmail.com
Website:
https://advocateanujaggarwal.com/home.php
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