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Supreme Court of India 2022-05-18 partly_allowed

Rushibhai Jagdishbhai Pathak vs Bhavnagar Municipal Corporation

Bench: 2 — Sanjiv Khanna

In Brief

Municipal Corporation employees challenged withdrawal of higher pay-scale benefits granted under a 1994 Scheme. The Corporation later accepted the correct interpretation of the Scheme in another employee's case, but refused to apply it uniformly. The employees filed writ petitions seven years after the withdrawal. The Court held that while continuing wrongs permit relief despite delay, arrears are normally limited to three years before petition filing. Since the employer accepted the correct interpretation, interest at 7% per annum is payable from acceptance date. The appeals were partly allowed, granting arrears and interest for three years pre-petition only, rejecting the claim for full arrears from 2010 and refund of amounts already recovered.

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