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Supreme Court

Non-Payment of Salaries and pension of employees may result in winding up: Delhi HC to MCD

Last Updated on February 9, 2024 by News Desk

Issue:– The court was hearing almost half a dozen petitions that were concerned with the nonpayment of salaries, arrears, and pensions by the MCD.
Analysis:- A strong displeasure was expressed by the Delhi HC as the Municipal Corporation of Delhi had failed in the payment of salaries, pension as well as arrears of the former as well as currently serving employees.

The division bench comprised of Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora had remarked that since the MCD is failing to pay the minimum wages, the court will be compelled to wind up the same.

The court said that it is a statutory obligation under the seventh pay commission to pay the wages as it is a liability and if the MCD can’t do the same then the consequences will follow.

After this, an undertaking has been given by the standing counsel for the MCD Divya Prakash Pande, that the salaries and pensions of the employees will be paid in 10 days.

On the issues of arrears, he assured that he would take up instructions and also confirmed that the steps are being initiated to clear the dues as earlier the dues stood at rupees 1000 crore which is currently Rupees 400 crore.

Conclusion: The submissions were recorded and the matter has been adjourned.

Written By: – Shianjany Pradhan (@SHIANJANYPRADHAN)

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