Disaster Management Act, 2005 – COVID-19 – Pandemic – Deferment of the salaries and pensions by the State – The revenues of the State were impacted by the onset of the pandemic – As an urgent measure, on 31.03.2020 the State deferred the salaries/wages/remuneration/honorarium/pensions on gross basis for the month of March 2020, payable in April 2020 and would continue to remain in force until further orders – On 04.04.2020, there was a modification by the State, which provided payment of full salary to the employees of the medical and health department, police department and sanitation workers – On 26.04.2020, further modification was provided with direction for full payment of pension to pensioners - Writ petition was filed before the High Court – The gravamen of the grievance was that salaries and pensions are due as a matter of right to employees and to the former employees who have served the State – Consequently, a direction was sought in the petition to the State Government to pay the outstanding salaries and pensions which had remained due – The High Court held that the State could not by means of a government order have provided for the deferment of salaries and pension without following recourse to law – The High court directed (i) payment of the deferred salary for the months of March-April 2020 together with interest at the rate of 12% p.a. and payment of deferred pension for the month of March 2020 with a similar rate of interest – On appeal, held: On 18 November 2020, the Court issued direction to the effect that the deferred portion of the payments on account of salaries, pensions and honoraria due to the employees or, as the case may be, to former employees be paid in two equal tranches – The issue in regard to the payment of interest was stayed by the Court – In pursuance, the State complied with the directions for payment of the outstanding dues in two tranches – Insofar as the interest is concerned, the rate of 12% p.a. which was fixed by the High Court was scaled down – The Government directed to pay simple interest computed at the rate of 6% p.a. on account of deferred salaries and pensions.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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