Dsfdc Employees Welfare Association Vs Ms Niharika Rai & Ors. — Contempt of Court | Delhi HC (2025)

Dsfdc Employees Welfare Association Vs Ms Niharika Rai & Ors. — Contempt of Court | Delhi HC (2025)

What the court decided

AI extract

Outcome

Contempt petition disposed of on the respondents' undertaking that salaries up to January 2025 would be released within two weeks and February-March 2025 salaries by the 7th of the following month; Managing Director, DSFDC directed to file undertaking within one week; liberty to petitioner to apply for revival on breach; W.P.(C) 15123/2023 & CM APPL. 60419/2023 listed on 17.02.2025.

Issue for consideration

Whether the respondents were guilty of non-compliance of the order dated 09.05.2024 directing DSFDC to continue to pay salaries to the members of the petitioner-association regularly, failing which GNCTD was to take DSFDC's place.

Court's answer

The Managing Director of DSFDC was directed to file an undertaking within one week that salaries up to January 2025 would be released within two weeks, and salaries for February and March 2025 would be released by the 7th of the following month in accordance with prevailing practice.

Ratio / Principle

In view of the undertaking, the contempt petition was disposed of.

Key takeaways

If the undertaking is breached, the petitioner will be at liberty to apply for revival of the contempt petition.ratio¶22

Detailed headnote1 paragraphs

Delhi High Court (Prateek Jalan, J.), by order dated 23.01.2025, disposed of a contempt petition (CONT.CAS(C) 1798/2024) filed by the DSFDC Employees Welfare Association alleging non-compliance of the order dated 09.05.2024, by which the Delhi SC/ST/OBC/Minorities & Handicapped Financial Development Corporation Ltd. ('DSFDC') was directed to continue paying salaries to the association's members regularly, failing which GNCTD was to take DSFDC's place. The Court recorded the Cabinet decision dated 29.11.2024 releasing Rs. 12.64 crores to DSFDC for salary and contingent expenditure (January 2024 - March 2025), approved by the Hon'ble Lt. Governor, and the communication dated 15.01.2025 from the Secretary, Department for the Welfare of SC/ST/OBC, GNCTD to the Managing Director, DSFDC. On counsel's statement that salaries up to January 2025 would be released within two weeks and February-March 2025 salaries by the 7th of the following month, the Managing Director, DSFDC was directed to file an undertaking to that effect within one week. The contempt petition was disposed of, with liberty to the petitioner to apply for its revival in case of breach. W.P.(C) 15123/2023 & CM APPL. 60419/2023 were listed on 17.02.2025 at the request of counsel.

$~9 & 10

* IN THE HIGH COURT OF DELHI AT NEW DELHI

- CONT.CAS(C) 1798/2024 DSFDC EMPLOYEES WELFARE ASSOCIATION .....Petitioner

versus

MS NIHARIKA RAI & ORS. .....Respondents

- W.P.(C) 15123/2023 & CM APPL. 60419/2023 DSFDC EMPLOYEES WELFARE ASSOCIATION .....Petitioner

versus

DELHI SC ST OBC MINORITIES HANDICAPPED FINANCIAL DEVELOPMENT CORPORATION LTD & ORS. .....Respondents

Appearance:- Ms. Prerna Mehta, Advocate for Petitioner with Mr. Manoj Kumar, President of Association in Item Nos. 9 & 10

Mrs. Avnish Ahlawat, Standing Counsel for GNCTD with Ms. Laavanya Kaushik, Ms. Aliza Alam, Mr. Mohnish Sehrawat & Mr. Amitoj Chadha, Advocates for R-1, 3 & 4 in Item Nos. 9 & 10

Mr. Jatin Singh, Mr. Keshav Sehgal, Mr. Shivam Gaur, Mr. Kshitij Joshi & Mr. Aryan Kumar, Advocates for R-2/UOI in Item No. 10.

CORAM: HON’BLE MR. JUSTICE PRATEEK JALAN

O R D E R

% 23.01.2025 CONT.CAS(C) 1798/2024

The petitioner has filed this contempt petition alleging noncompliance of an order dated 09.05.2024, by which it has been directed that the Delhi SC/ST/OBC/Minorities & Handicapped Financial Development Corporation Ltd. [“DSFDC”], will continue to pay salaries

Page 1 of 3

CONT.CAS(C) 1798/2024 & W.P.(C) 15123/2023

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/01/2025 at 11:56:02

to the members of the petitioner-association regularly, failing which the Government of National Capital territory of Delhi [“GNCTD”] will take DSFDC’s place to do the same.

While various submissions are made on behalf of the respondents to explain the delay, the Court is informed that the Cabinet has taken a decision dated 29.11.2024 for release of ₹12.64 crores to DSFDC for salary and contingent expenditure for the period of January 2024 to March 2025. This has been approved by the Hon’ble Lt. Governor and the amount has been released to DSFDC. By a communication dated 15.01.2025, the Secretary, Department for the Welfare of SC/ST/OBC, GNCTD, has informed the Managing Director, DSFDC, of the steps to be taken including with regard to payment of salaries. The aforesaid documents have been handed up in Court, and are taken on record.

Ms. Laavanya Kaushik, learned counsel for the respondent, states that the salaries of the members of the petitioner-association will be released until January 2025, within two weeks from today, and for the month of February and March 2025, the salaries will be released by 7^th of the following month, in accordance with prevailing practice. The Managing Director of DSFDC is directed to file an undertaking to this effect within one week from today.

In view of the aforesaid undertaking, the contempt petition is disposed of. In the event, the undertaking is breached, the petitioner will be at liberty to apply for revival of the contempt petition.

Page 2 of 3

CONT.CAS(C) 1798/2024 & W.P.(C) 15123/2023

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/01/2025 at 11:56:02

W.P.(C) 15123/2023 & CM APPL. 60419/2023

At the request of learned counsel for the parties, list on 17.02.2025.

PRATEEK JALAN, J

JANUARY 23, 2025/ ‘pv/AD’/

Page 3 of 3

CONT.CAS(C) 1798/2024 & W.P.(C) 15123/2023

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/01/2025 at 11:56:02