{"id":14310,"date":"2009-01-13T00:00:00","date_gmt":"2009-01-12T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/amritsar-aviation-club-anr-vs-savitri-devi-anr-on-13-january-2009"},"modified":"2017-05-27T07:32:56","modified_gmt":"2017-05-27T02:02:56","slug":"amritsar-aviation-club-anr-vs-savitri-devi-anr-on-13-january-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/amritsar-aviation-club-anr-vs-savitri-devi-anr-on-13-january-2009","title":{"rendered":"Amritsar Aviation Club & Anr vs Savitri Devi & Anr on 13 January, 2009"},"content":{"rendered":"
Punjab-Haryana High Court<\/div>\n
Amritsar Aviation Club & Anr vs Savitri Devi & Anr on 13 January, 2009<\/div>\n
RSA No.22 of 2009                                                1\n\n IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH\n\n                                           RSA No.22 of 2009\n                                           Date of Decision:13.01.2009\n\nAmritsar Aviation Club & anr.\n\n                                                      ....appellants\n\n                        Versus\n\nSavitri Devi & anr.\n\n                                                      .....respondents\n\nCORAM:          HON'BLE MR.JUSTICE RAKESH KUMAR GARG\n\nPresent:  Mr.Govind Goel, Advocate\n          for the appellants\n                ****\n<\/pre>\n
RAKESH KUMAR GARG J.\n<\/p>\n
                Brief facts leading to the filing of this appeal are that<\/p>\n
plaintiff-respondent worked as store keeper of the appellant.             Plaintiff<\/p>\n
retired from service after attaining the age of superannuation on<\/p>\n
30.06.1997. She received a total sum of Rs.2,10,326\/- from defendant-<\/p>\n
appellant Nos.2 and 3, towards the salary, leave encashment etc.vide<\/p>\n
cheque dated 14.02.2003. Since the payment of her dues was made after<\/p>\n
a considerable delay, she requested the defendants\/appellants to pay<\/p>\n
interest on delayed payment. The plaintiff also served legal notice upon<\/p>\n
the defendant-appellants, but to no effect. In these circumstances, the<\/p>\n
plaintiff filed the present suit for declaration to the effect that she is entitled<\/p>\n
to interest @ 24% per annum on delayed payment of Rs.2,10,326\/- being<\/p>\n
salary etc.from the defendants with consequential relief of mandatory<\/p>\n
injunction directing the defendants to release interest on the aforesaid<\/p>\n
amount to the plaintiff.\n<\/p>\n
                Defendant-appellants No.2 and 3-appellants filed written<\/p>\n
statement     raising      various   preliminary   objections    regarding     the<\/p>\n
maintainability of the suit and that the suit is time barred. On merits, it was<\/p>\n
admitted that the plaintiff had been working as store keeper in Amritsar
\n RSA No.22 of 2009                                            2<\/span><\/p>\n
Aviation Club.     It was also admitted that she retired from service on<\/p>\n
30.06.1997    after    attaining   the     age   of   60   years   and      the<\/p>\n
defendants\/appellants had paid a sum of Rs.2,10,326\/- vide cheque dated<\/p>\n
14.02.2003 as full and final settlement of her dues which were accepted by<\/p>\n
her without any kind of protest.         It was further stated in the written<\/p>\n
statement that Aviation Club did not have the funds to pay the salary of the<\/p>\n
staff because it is the State Government which release grant in aid to the<\/p>\n
club for the purpose of disbursement of the salary of the staff. It was<\/p>\n
alleged that grant in aid was not released by the State Government,<\/p>\n
therefore the salaries of the staff could not be paid well in time. Since the<\/p>\n
Government had not released the grant in aid, the working staff of the club<\/p>\n
filed Civil Writ Petition No.19810 of 2001 in this Court for seeking a<\/p>\n
direction to the Government to release the grant in aid to the club for<\/p>\n
releasing dues of the staff and this Court vide its order dated 22.08.2002<\/p>\n
directed the Punjab Government to release grant in aid to the club<\/p>\n
i.e.appellant for payment of pending dues of the staff. It was further stated<\/p>\n
in the written statement that the order was regarding pending dues only<\/p>\n
and no order was passed by this Court to pay interest on delayed payment.<\/p>\n
Therefore, the defendants are not liable to pay interest on the delayed<\/p>\n
payment. Thus, it was prayed that the suit of the plaintiff be dismissed.<\/p>\n
                 Defendant No.1, the Director, Civil Aviation Club(Punjab)<\/p>\n
filed separate reply stating therein that the plaintiff was employee of the<\/p>\n
Amritsar Aviation Club and not a government employee and the said club is<\/p>\n
a private body controlled by their own rules and regulations. The dues to<\/p>\n
the plaintiff have been paid by defendant Nos.2 and 3. It was also stated<\/p>\n
that defendant No.1 is not liable to pay interest on the delayed payment. It<\/p>\n
was prayed that the suit of the plaintiff be dismissed. On the basis of the<\/p>\n
pleadings of the parties, the following issues were framed by the trial Court:<\/p>\n
               1. Whether the plaintiff is entitled to get the interest on sum
\n RSA No.22 of 2009                                             3<\/span><\/p>\n
                  of Rs.2,10,326\/- @24% p.a.from the defendant? OPP<\/p>\n<\/blockquote>\n
               2. Whether the plaintiff is entitled for mandatory injunction as<\/p>\n
                 prayed for?OPD<\/p>\n<\/blockquote>\n
               3. Whether the present suit is not maintainable? OPD<\/p>\n<\/blockquote>\n
               4. Whether the plaintiff has no cause of action to file the<\/p>\n
                  present suit?OPD<\/p>\n<\/blockquote>\n
               5. Whether the plaintiff estopped by her own act and<\/p>\n
                  conduct from filing the present suit?OPD<\/p>\n<\/blockquote>\n
               6. Whether the suit is not properly valued for the court fee<\/p>\n
                  and jurisdiction?OPD<\/p>\n<\/blockquote>\n
               7. Relief.<\/p><\/blockquote>\n
               The trial Court after considering the evidence on record and<\/p>\n
hearing the learned counsel for the parties held that defendant Nos.2 and<\/p>\n
3 have withheld the retiral benefits of the plaintiff without assigning any<\/p>\n
sufficient reason and therefore the plaintiff is entitled to interest on delayed<\/p>\n
payment and decreed the suit of the plaintiff with costs and defendants<\/p>\n
were directed to pay interest on delayed payment along with interest<\/p>\n
@ 12% per annum from the due date till the decision of the case and<\/p>\n
further future interest @ 6% per annum from the date of decision till<\/p>\n
realization.\n<\/p>\n
               Feeling aggrieved against the aforesaid judgment of the trial<\/p>\n
Court, defendant Nos.2 and 3 filed Civil Appeal No.199 of 1997 and<\/p>\n
defendant No.1 filed Civil Appeal No.207 of 2007. Both the appeals were<\/p>\n
decided by impugned judgment and decree dated 16.10.2008 passed by<\/p>\n
District Judge, Amritsar, whereby Appeal No.207 of 21.09.2007 titled as<\/p>\n
‘The Director, Civil Aviation Club versus Savitri Devi & ors’ was<\/p>\n
allowed and it was held that the plaintiff-respondent was not an employee<\/p>\n
of the State of Punjab and as such no liability could be fastened upon the<\/p>\n
appellants in Civil Appeal No.207 of 21.09.2007. However, in Civil Appeal
\n RSA No.22 of 2009                                              4<\/span><\/p>\n
No.199 of 1997 filed by the present appellants, findings of the trial Court<\/p>\n
were affirmed except for the modification in the rate of interest i.e.interest<\/p>\n
on the delayed payment prior to the institution of the suit was reduced from<\/p>\n
12% to 8% per annum. Except this modification, the appeal filed by the<\/p>\n
present appellants was dismissed by the Lower Appellate Court.<\/p>\n
               Still feeling aggrieved, the appellants have filed the present<\/p>\n
appeal challenging the judgment and decrees of the Courts below.<\/p>\n
               According to the learned counsel for the appellants, the<\/p>\n
following substantial questions of law arise in this appeal:<\/p>\n
               1. Whether the suit filed by the respondent-plaintiff seeking<\/p>\n
                  declaration and mandatory injunction for the grant and<\/p>\n
                  payment of interest on the retiral dues from the date of<\/p>\n
                  retirement i.e.30.06.1997 was maintainable, especially<\/p>\n
                  after the plaintiff-respondent had already been paid the<\/p>\n
                  entire amount of the retiral dues way back on<\/p>\n
                  14.02.2003?\n<\/p><\/blockquote>\n
               2. Whether the suit filed by the plaintiff-respondent seeking<\/p>\n
                  declaration and mandatory injunction for payment of<\/p>\n
                  interest on her retiral dues from the date of retirement i.e<\/p>\n
                  30.06.1997 could be filed on 30.04.2005 and the suit so<\/p>\n
                  filed was ex facie, time barred and outside the jurisdiction<\/p>\n
                  of the Court in view of Section 3 of the Limitation Act?<\/p>\n<\/blockquote>\n
               3. Whether the courts below had any jurisdiction to entertain<\/p>\n
                  the suit for interest alone?\n<\/p><\/blockquote>\n
               4. Whether the courts below had any jurisdiction to direct<\/p>\n
                  the payment of interest when the issue as to who was the<\/p>\n
                  employer of persons working in Civil Aviation Club is<\/p>\n
                  under consideration of this Court in CWP No.2244 of<\/p>\n
                  1999, 14401 and 19810 of 2001 and who is liable to pay
\n RSA No.22 of 2009                                             5<\/span><\/p>\n
                  the retiral dues of the employees working in Civil Aviation<\/p>\n
                  Clubs is pending consideration in CWP No.19059 of 2006<\/p>\n
                  and CWP No.19363 of 2006?<\/p><\/blockquote>\n
               In support of his case, learned counsel for the appellants<\/p>\n
has vehemently argued that the suit of the plaintiff-respondent seeking<\/p>\n
declaration and mandatory injunction for payment of interest on her retiral<\/p>\n
dues from the date of retirement i.e.30.06.1997 could not be filed on<\/p>\n
30.04.2005 and the suit so filed was ex facie, time barred and outside the<\/p>\n
jurisdiction of the Court in view of Section 3 of the Limitation Act and was<\/p>\n
liable to be dismissed on this ground alone.        Elaborating his argument<\/p>\n
further, learned counsel stated that the cause of action if any accrued to<\/p>\n
the plaintiff on the date of her retirement i.e.on 30.06.1997 and in spite of<\/p>\n
the fact that she did not get the retiral benefits, she did not take out any<\/p>\n
legal proceedings within the time frame as prescribed by law and thus with<\/p>\n
the flux of the time, the claim of the respondent became time barred and<\/p>\n
therefore the suit was liable to be dismissed on this ground.          Learned<\/p>\n
counsel for the appellant has further argued that the courts below have<\/p>\n
erred in ignoring that the issue as to whether the plaintiff and other similarly<\/p>\n
situated employees of the Civil Aviation Club were liable to be paid retiral<\/p>\n
benefits by the State Government or not was pending consideration of the<\/p>\n
Hon’ble High Court in various writ petitions i.e. CWP No.19059 of 2006 and<\/p>\n
19363 of 2006 and even the matter as to who was the employer of these<\/p>\n
employees is pending consideration before a Division Bench of this Court<\/p>\n
in CWP No.2244 of 1999, 14401 of 2001 and 19810 of 2001 and till the<\/p>\n
decision of the above writ petitions, it was not possible to make payment of<\/p>\n
any amount consequent upon retirement of various employees, therefore,<\/p>\n
the Courts below could not have ignored the effect of the pendency of the<\/p>\n
above litigation in the High Court and thus the judgment and decrees of the<\/p>\n
Courts below are liable to be set aside.\n<\/p>\n
 RSA No.22 of 2009                                              6<\/span><\/p>\n
                I have heard learned counsel for the appellants and<\/p>\n
perused the impugned judgment and decrees of the Courts below and has<\/p>\n
perused the record of the case with the help of counsel for the appellants.<\/p>\n
                I find no force in the contentions raised by the learned<\/p>\n
counsel for the appellants. Admittedly the plaintiff was working as a store<\/p>\n
keeper in Amritsar Aviation Club i.e.appellants. It is also not disputed that<\/p>\n
she retired from service on 30.06.1997 on her attaining the age of<\/p>\n
superannuation and her salary and other benefits were paid vide cheque<\/p>\n
dated 14.02.2003. A perusal of the written statement filed by the appellants<\/p>\n
would further show that it has nowhere been disputed that plaintiff-<\/p>\n
respondent was not an employee of the Amritsar Aviation Club or the<\/p>\n
appellants.    The only defence taken in the written statement by the<\/p>\n
appellants was that since the grant in aid was not being released by the<\/p>\n
State Government, therefore salaries of the staff could not be paid well in<\/p>\n
time. Thus, the contention raised by the learned counsel for the appellants<\/p>\n
is that the issue with regard to the fact as to who was the employer of the<\/p>\n
plaintiff and other similarly situated employees of the Aviation Club which is<\/p>\n
alleged to be pending in the writ petitions is of no consequence. Moreover,<\/p>\n
except the references of these writ petitions, nothing is placed on record by<\/p>\n
the appellants to prove this fact that the aforesaid question is pending<\/p>\n
before the Hon’ble High Court. Moreover, it has been admitted by the<\/p>\n
appellants in the written statement that the plaintiff had been working as<\/p>\n
store keeper in Amritsar Aviation Club and as stated above the appellants<\/p>\n
have not disputed their liability to pay the plaintiff-respondent her salary<\/p>\n
and other benefits on the ground that appellants are not her employers.<\/p>\n
Thus, the contention raised by the learned counsel for the appellants is<\/p>\n
without any merit and the same is rejected.\n<\/p>\n
                The second contention of the learned counsel for the<\/p>\n
appellants that suit is barred by limitation is also liable to be rejected on the
\n RSA No.22 of 2009                                              7<\/span><\/p>\n
ground that no such objection was raised by the appellants in their written<\/p>\n
statements nor any issue was claimed in this regard. No doubt, it is the<\/p>\n
duty of the Court to see whether the suit is within limitation and if it is found<\/p>\n
ex facie that the suit is beyond limitation, the same can be dismissed as<\/p>\n
time barred even without raising any objection by the defendant, but in the<\/p>\n
present case, admittedly the appellants made the payment of retiral<\/p>\n
benefits vide cheque dated 14.02.2003 and therefore the limitation in this<\/p>\n
case for filing suit for payment of interest commenced to run from<\/p>\n
14.02.2003 i.e.when a sum of Rs.2,10,326\/- was paid to respondent No.1<\/p>\n
by the appellants being salary and other retiral benefits.            Once the<\/p>\n
appellants admitted their liability to pay salary and other retiral benefits to<\/p>\n
respondent No.1 on 14.02.2003, it cannot be argued that the interest<\/p>\n
accrued thereon from the date of retirement of respondent No.1, became<\/p>\n
time barred. Learned counsel for the appellants had also argued that there<\/p>\n
was no culpable delay on the part of the appellants in releasing the retiral<\/p>\n
dues of the plaintiff so as to entitle her any interest from the appellants as<\/p>\n
the grant in aid was not being released by the State Government and the<\/p>\n
appellants promptly made the payment on receipt of such grant and in fact<\/p>\n
the plaintiff-respondent had accepted        the retiral benefits without any<\/p>\n
protest and in these circumstances the claim for interest was wholly<\/p>\n
unjustified. This argument of the appellants is also liable to be rejected as<\/p>\n
it is settled law that if an employee retires from service then employer is<\/p>\n
liable to pay his retiral benefits promptly. It is well settled that right to<\/p>\n
receive retiral benefits is a fundamental right of an employee and is not a<\/p>\n
bounty. Simply because plaintiff-respondent accepted the retiral benefits<\/p>\n
on 14.02.2003 without any protest would not imply that she had forfeited<\/p>\n
the interest on the delayed payment and she cannot be estopped from<\/p>\n
claiming interest on the delayed payment. Appellants being employers of<\/p>\n
the plaintiff-respondent were duty bound to pay the salary and other retiral
\n RSA No.22 of 2009                                            8<\/span><\/p>\n
benefits of the plaintiff-respondent on her retirement. Withholding of the<\/p>\n
retiral benefits for a period of six years by appellants is not justified. The<\/p>\n
right of the employee to get his retiral benefits cannot be eclipsed by the<\/p>\n
fact that grant in aid was not released by the State of Punjab to the<\/p>\n
appellants. Neither the delay in payment of retiral benefits to the plaintiff-<\/p>\n
respondent can be justified on this ground.\n<\/p>\n
               For the reasons recorded above, I find no merit in this<\/p>\n
appeal.\n<\/p>\n
               No other point was argued.\n<\/p>\n
               Thus,substantial questions of law as raised by the<\/p>\n
appellants do not arise in this appeal.\n<\/p>\n
               Dismissed.\n<\/p>\n<\/p>\n
                                          (RAKESH KUMAR GARG)
\n                                                 JUDGE
\n13.01.2009
\nneenu\n <\/p>\n","protected":false},"excerpt":{"rendered":"
Punjab-Haryana High Court Amritsar Aviation Club & Anr vs Savitri Devi & Anr on 13 January, 2009 RSA No.22 of 2009 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH RSA No.22 of 2009 Date of Decision:13.01.2009 Amritsar Aviation Club & anr. ….appellants Versus Savitri Devi & anr. …..respondents CORAM: HON’BLE MR.JUSTICE RAKESH […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-14310","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"\nAmritsar Aviation Club & Anr vs Savitri Devi & Anr on 13 January, 2009 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/amritsar-aviation-club-anr-vs-savitri-devi-anr-on-13-january-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amritsar Aviation Club & Anr vs Savitri Devi & Anr on 13 January, 2009 - 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