The High Court reaffirms that government employees are entitled to interest on delayed salary payments, specifying a 5% per annum rate in cases of administrative delay. This judgment upholds the established legal position and is binding on subordinate courts and government administrative authorities in Himachal Pradesh.
Summary
| Category | Data |
|---|---|
| Case Name | CWP/8090/2024 of PREETA CHAUHAN Vs STATE OF HP AND OTHERS CNR HPHC010366132024 |
| Date of Registration | 09-08-2024 |
| Decision Date | 31-10-2025 |
| Disposal Nature | Disposed Off |
| Judgment Author | Ms. Justice Jyotsna Rewal Dua |
| Court | High Court of Himachal Pradesh |
| Precedent Value | Binding within the jurisdiction of the Himachal Pradesh High Court |
| Type of Law | Service Law / Administrative Law |
| Questions of Law | Whether a government employee is entitled to interest for delayed salary payment by state authorities? |
| Ratio Decidendi |
The court held that when a government employee’s salary is withheld without justification, and is only released pursuant to court intervention, the employee is entitled to interest for the delayed period. The interest compensates for the deprivation of timely salary. The court specified a rate of 5% per annum, payable from the date salary was due till the date of actual release. Administrative authorities must ensure timely payments or compensate for delays. |
| Facts as Summarised by the Court |
The petitioner sought directions regarding verification of service book, forwarding of Annual Confidential Report, consideration for promotion to PGT, release of withheld salary from May 2022 to 16.12.2022, and action against officials responsible for the delay. During pendency, most grievances were redressed except for interest on delayed salary. The salary was ultimately released only after court orders. |
Practical Impact
| Category | Impact |
|---|---|
| Binding On | All subordinate courts and state authorities in Himachal Pradesh |
| Persuasive For | Other High Courts dealing with similar issues under service law |
What’s New / What Lawyers Should Note
- The court explicitly quantifies interest at 5% per annum for delayed salary payments by government authorities.
- Administrative delays leading to withholding of salary entitle the employee to compensation by way of interest.
- Lawyers representing government employees may cite this as binding precedent within Himachal Pradesh for claims of interest on delayed pay.
- The judgment emphasizes accountability of state authorities in discharging timely salary obligations.
Summary of Legal Reasoning
- The court acknowledged that the petitioner’s salary from May 2022 to 16.12.2022 was withheld and only released after judicial intervention.
- Relying on the principle that salaries are legally due when earned, and that deprivation merits compensation, the court found substance in the petitioner’s claim for interest.
- The court ordered respondents to pay 5% per annum as interest for the delayed period, calculated from the due date until actual release.
- The reasoned conclusion stressed state accountability for administrative lapses resulting in financial loss to employees.
Arguments by the Parties
Petitioner
- Sought directions for verification of service documents, consideration for promotion, release of withheld salary with interest, and departmental action against erring officials.
- At hearing, confined surviving grievance to entitlement to interest on the delayed salary payment.
Respondents
- No substantive opposition recorded regarding entitlement to interest once the delay was established and salary released after court order.
Factual Background
The petitioner, a government employee, sought various directions including verification of service records, forwarding of her Annual Confidential Report for promotion consideration, and release of her salary withheld from May 2022 to 16.12.2022, along with penal interest. During the petition’s pendency, most grievances were addressed except the claim for interest on delayed payment. The salary was released only after the court’s intervention.
Statutory Analysis
The judgment refers to principles of service law concerning entitlement to timely salary by government employees. It applies general jurisprudence that delayed payment of legally due salary by the state warrants compensation in the form of interest. No specific statutory provision was interpreted or “read down.”
Dissenting / Concurring Opinion Summary
No dissenting or concurring opinions recorded in this single-judge decision.
Procedural Innovations
No new procedural precedents or innovations recorded in the judgment.
Alert Indicators
- ✔ Precedent Followed – Existing principle of awarding interest on delayed salary payment is reaffirmed.