NEW DELHI: The Delhi High Court on Friday came down heavily on the Municipal Corporation of Delhi (MCD) over the non-payment of salaries and pensions to the employees and former employees asking to put the house in order or it "need to be winded up."
A division bench headed by Acting Chief Justice Manmohan said the matter is pending over four years and questioned why the MCD has failed to give the payment to the staff.
"We are giving you the last opportunity...fix your house. Put it in order. Otherwise, we will say this is a fit case where municipalities need to be winded up," the court said.
The bench, also comprising Justice Manmeet Pritam Singh Arora, asserted that the civic body will face consequences if it continuously fails its statutory obligation to clear the arrears and salaries of the employees as per the seventh pay commission. The court also stressed that it cannot wait any further.
During the hearing, MCD's standing counsel submitted that the salaries and pensions of the serving employees and former employees will be disbursed in ten days.
It was also apprised to the court that the counsel will seek instructions to look into the arrears as well.
The high court was informed that the the arrears, which was Rs 1000 crore earlier has decreased to Rs 400 crore. The civic body also informed the court that it is taking measures to resolve the matter.
"We will come up with positive instructions and inform when we will clear it," standing counsel Divya Prakash Pande said.
The high court had rapped the civic body on multiple hearing on the issue of the nonpayment of salaries.
In a previous hearing, the court had said, “It is unfortunate that Class III and Class IV employees, teachers, and other employees of MCD are not paid salaries despite an assurance given by the authorities to this court. It is also unfortunate that even pensioners are not getting their pensions and are left hand to mouth.”