Doctrine Of Delay And Laches/Limitation Will Not Be Applicable To Service Matters

Concerning Recurring Wrongs – Supreme Court

A two-judge bench of Justice Ajay Rastogi and Justice Sanjiv Khanna has held that the
doctrine of delay and laches would not be applicable to service matters involving a
recurring/successive wrong; Establishing that a writ petition seeking relief for a recurring wrong
cannot be dismissed despite extraordinary delay, on the grounds of Doctrine of Delay and
Laches/Limitation.

In this context the apex court had held that –

“Only the date of filing of the writ petition is relevant while examining the question of delay and
laches or limitation”

Facts & History of the Case – Permanent Employees of the Respondent-Corporation were
erroneously granted higher grade pay-scale. Consequently, the employees received excessive
benefits which were duly recovered by the Respondent-Corporation in 2010.

In 2017 the employees (Appellants) approached the High Court of Gujarat challenging the order
issued by the Respondent-Corporation in 2010 whereby the higher pay-scale granted to the
employees was withdrawn and the excess amount issued, recovered.

The Division Bench of the High Court of Gujarat, in view of the delay and laches by the
Appellants in approaching the court restricted the grant of higher pay-scale and declined the
prayer of the employees for recovery of arrears from 2010.

Challenging this judgment the appellants have approached the apex court.

Issues – Whether Doctrine of Delay and Laches would be applicable to the matter at hand and,
Whether the Appellants are entitled to recover of arrears from 2010 ?
The Supreme Court noted that In Union of India and Others v. Tarsem Singh where a delay of
16 years in approaching the court for claiming arrears occurred, it was held that while a belated
service claim will, as a norm, be rejected on the ground of delay of laches or limitation, an
exception is made in case of a continuing wrong.

Thus, where a service related claim arises out of a continuing wrong, relief can be sought and
granted despite long delay given that the grievance is related to an order/administrative decision
related to/affecting others and re-opening such an issue would not affect the settled rights of any
third parties.

The Court also noted that in case of claims involving seniority/promotion affecting others, any
delay in approaching the court would attract the application of Doctrine of Laches/Limitation. In
matters related to recovery of arrears arising in the past, the principle of recurring/successive
wrongs will be applicable.

Relying on the Supreme Court’s decision in Tarsem Singh, of restricting the grant of relief
concerning arrears to 3 years before the date of the writ petition, or from the date of demand to
date of writ petition, whichever is lesser – The appellants were made entitled to arrears in pay
scale for the period of 3 years prior to the date of filing of the writs with 7% interest rate per
annum.

The Bench partly allowed the appeal and partly set aside the judgment of the High Court.

Case - Rushibhai Jagdishbhai Pathak Versus Bhavnagar Municipal Corporation