Iswar vs Ashwani Kumar & Anr.

Learned counsel for the applicant submits that, although the principal amount and interest in respect of certain amounts have been paid, the payments have not been made in accordance with the directions contained in the order of this Tribunal. It is submitted that, in terms of the said order, interest was required to be paid at the rate of 12%, whereas the MCD respondents have paid interest only at the applicable GPF rates.

Learned counsel further submits that, in respect of certain periods and certain amounts, the interest payable has not been paid at all.

Per contra, learned counsel appearing for the respondents submits that the issue regarding the rate of interest payable by the MCD to its employees has already been considered and conclusively decided by a Full Bench of this Tribunal. It is submitted that, in the said Full Bench decision, the rate of interest payable has been held to be the applicable GPF rate.

Learned counsel for the applicant, however, draws our attention to the specific direction contained in the order passed in the Original Application, whereby the respondents were directed to pay interest at the rate of 12%. It is submitted that the said order has also been challenged by the respondents before the Hon’ble High Court.

It is not in dispute that the order passed by the Full Bench of this Tribunal has also been challenged before the Hon’ble High Court and the proceedings in respect thereof are pending.

Learned counsel for the respondents submits that, in the aforesaid proceedings before the Hon’ble High Court, the operation of the direction relating to payment of interest has been stayed and the respondents have been directed, during the pendency of the proceedings, to pay interest at the applicable GPF rate. It is submitted that the respondents have accordingly complied with the directions of the Hon’ble High Court and have paid the interest at the GPF rate.

Learned counsel for the respondents further submits that, insofar as the remaining retiral benefits are concerned, the respondents have already made the payments in terms of the order passed by this Tribunal. It is submitted that interest has been paid on the amounts which remained unpaid as on the date of disposal of the Original Application.

Learned counsel for the applicant, however, submits that interest has not been paid on all the amounts which were directed to be paid and draws our attention to the relevant directions contained in the order passed by this Tribunal.

We have considered the submissions made by learned counsel for the parties.

The present proceedings are in the nature of contempt/compliance proceedings and, therefore, our jurisdiction at this stage is limited to examining whether there has been any wilful or deliberate disobedience of the directions contained in the order passed by this Tribunal.

In the present case, the rate of interest directed to be paid and the entitlement to such interest are themselves the subject matter of proceedings pending before the Hon’ble High Court. The parties have already placed their respective contentions before the Hon’ble High Court and are pursuing their remedies in accordance with law.

In view of the aforesaid position, particularly when the relevant directions of this Tribunal concerning the rate of interest are under challenge before the Hon’ble High Court and the parties are acting in terms of the orders passed by the Hon’ble High Court during the pendency of the proceedings, we do not find any material at this stage to hold that there has been wilful or deliberate disobedience of the order of this Tribunal.

Accordingly, the present Contempt Petition is closed for the present. However, the applicant shall be at liberty to seek revival of the present proceedings, if so warranted, after the decision of the Hon’ble High Court or in the event of any subsequent wilful non-compliance with the directions of this Tribunal. No order as to costs.