Introduction:

In a scathing rebuke, the Delhi High Court recently criticized the Municipal Corporation of Delhi (MCD) for its failure to settle unpaid dues and arrears of the 7th Central Pay Commission (CPC) to its employees. The division bench, comprising Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora, expressed concern over the financial viability of the civic body and questioned its ability to fulfill essential responsibilities such as maintaining roads, hospitals, and development activities if salaries remained unpaid. The court was addressing a series of pleas, some filed as early as 2017, highlighting the persistent issue of non-payment of salaries, including grievances from retired employees regarding delayed pensions.

Arguments of Both Sides:

The counsel representing the MCD informed the court that salaries and pensions up to January of the current year had been disbursed, committing to settling February’s payments within ten days. However, the counsel sought additional time to clear the outstanding arrears of the 7th CPC. The court, unconvinced by these assurances, admonished the MCD, urging them to either resolve the financial challenges internally or face dissolution. The bench firmly stated that the court would no longer bear the responsibility of overseeing the matter, emphasizing the need for the MCD to become financially self-sufficient. The Acting Chief Justice highlighted the inefficiency and corruption within the MCD, stating that if they could not rectify the situation, a new system might be necessary.

Court’s Judgment:

The Delhi High Court, dissatisfied with the MCD’s handling of the issue over the past seven years, warned that it might dissolve the civic body if it continued to be financially unstable. The court criticized the MCD for holding employees’ salaries hostage, particularly the arrears of the 7th CPC, and emphasized the need for timely payments. The Acting Chief Justice underscored the responsibility of the MCD officials, stating that just because they were part of the MCD did not exempt them from accountability. The court demanded a clear affidavit from the MCD detailing the outstanding arrears of the 7th CPC, and the matter is scheduled for further hearing on March 28.