HC orders release of pending dues to former JKSFC employees

Srinagar, May 21:  The High Court of J&K and Ladakh Tuesday directed the Jammu and Kashmir Forest Development Corporation, which has replaced J&K State Forest Corporation, to release in favour of several former employees of the corporation and their predecessors in interests (legal heirs) entire withheld dues on account of COLA, leave salary, and 6th Pay Commission arrears along with interest.

In a batch of petitions, the aggrieved former employees of the corporation who retired around 14 to 15 years ago contended that they were entitled to arrears on account of COLA, differential leave salary, and gratuity but the corporation had failed to liquidate the liability on the excuse of financial constraints.

They contended that the law is well settled that irrespective of financial constraints, payment of retiral benefits could not be delayed as in a catena of judgments on the subject it has been held that financial constraints, in any circumstances, cannot be the cause to the employer to delay release of retiral benefits beyond reasonable time.

The corporation through its deputy advocate general argued that it was not in a position to liquidate its liabilities due to financial constraints and presently about 3350 employees are on the rolls of the corporation with an approximate monthly wage bill of Rs 7 crore per month.

After hearing the parties, a bench of Justice M A Chowdhary observed that the moot question for consideration was why the petitioners should be denied the benefits, which are made available to other corporations.

The court observed that mere denial, by referring to non-availability of the resources, was not a solution at all.

“The court cannot disbelieve the petitioners, who have demonstrated that the respondent – corporation has sufficient resources available with it, especially when its liabilities can be cleared with financial assistance from the Government of J&K,” it said.

Disposing of the petitions, the court observed that the petitioners had raised a just and reasonable issue for consideration and that the authorities, in principle, “also appeared to be in such agreement.

“However, the only difficulty, as would appear from the rival contentions, is that the government is unable to meet the financial implications involved in extending the benefit of pension and other allied service benefits to the petitioners,” the court said. “In such a situation, the court while taking note of the fact that the right to salary is a fundamental right, getting due to every employee for the service rendered against it, feels that denying such benefit to the petitioners is bound to cause great inconvenience and prejudice to their rights.”

“One thing is clear the authorities do not at all dispute the entitlement of the petitioners to receive either the arrears of COLA, leave salary or gratuity. But the only dispute is about the inability of the corporation to pay the same,” the court said.

“It is said that the corporation is financially dependent wholly on the support of the government extended to it from time to time and, therefore, the government ought to be directed to provide the amount, which is payable to the petitioners,” the court said and directed the corporation to calculate the amount within four weeks positively and forward a proposal, seeking financial assistance, to the government.

The court made it clear that whatever; amount is calculated as arrears by the corporation should be provided by the government under a separate “head”.

“The amount should be made available in addition to the wages bill, which generally is provided by the government to the corporation,” it said.