The High Court has mandated the Tourism Development Corporation to make payments for revised salary arrears, including interest, within six months. If this order is not complied with within the stipulated six-month period, the interest rate will be increased to 9 percent.
Background
Recently, the Shimla High Court delivered a crucial verdict in favor of 147 retirees from the secretariat and public service commission, ordering the Tourism Development Corporation to settle the arrears of revised salaries, along with a six percent interest, within six weeks.
The Case
The Himachal Pradesh government had failed to provide financial benefits to 147 retirees between January 1, 2016, and December 31, 2021, while all retirees post-2022 received their due financial benefits. Consequently, the Secretariat and other related pensioner welfare associations filed separate petitions, aggregating to 67 cases. Considering these petitions collectively, Justice Ranjan Sharma directed the Tourism Development Corporation to disburse the benefits of the revised salary to the petitioners within six months.
The Court’s Order
The High Court has instructed the Tourism Development Corporation to adhere to the amended gratuity payment regulations and settle the revised leave encashment within six months, along with a six percent interest. Failure to comply within the specified period will result in an increase in the interest rate to 9 percent. Additionally, orders have been issued to make interim payments of 50 percent of the outstanding inflation allowance and arrears within six months.
Welcoming the Verdict
The Secretariat and other related pensioner welfare associations have welcomed the High Court’s decision, asserting that the state government cannot indefinitely postpone retirees’ legal rights citing financial crises. While the government extended all financial benefits to retirees post-2022, those retired between January 1, 2016, and December 31, 2021, were deprived of these benefits, prompting the associations to seek legal recourse.
The High Court’s directive ensures that retirees receive their rightful financial benefits within a reasonable timeframe, safeguarding their interests and upholding the principles of justice.