State of Madhya Pradesh & others Vs. Ramlal Mahobia

Madhya Pradesh High Court (Division Bench (DB)- Two Judge)

WRIT PETITION, 1052 of 2017, Judgment Date: Oct 30, 2018

Law Laid Down -

• The question of award of interest by the writ court is not controlled or regulated by Section 34 of the Code of Civil Procedure, 1908. It is the Interest Act, 1978, which empowers the Court to allow interest but at the rate not exceeding the current rate of interest in terms of Section 2(b) of the said Act.
• After discharging duties as an employee, it is the right of the employee to get salary; therefore, if the salary is not paid even though the employee has worked, he is entitled to be compensated for the delay i.e. by way of interest. But, before such interest is found to be payable, there should not be any unreasonable cause with the employer not to pay salary though the employee was working.
• Where the salary was paid by way of concession and if the Competent Authority has passed an order of not granting interest to the employee for delay in payment of his salary, which is with reasonable cause, therefore, in exercise of power of judicial review, this Court will not substitute its opinion with that of the Authority.

State of Madhya Pradesh & others Vs. Ramlal Mahobia