Supreme Court Orders Final Settlement in AP State Essential Commodities Corporation Case

The Supreme Court of India, in the case Vice Chairman & Managing Director, A.P. State Essential Commodities Corporation Ltd. & Anr. vs. C.V. Viswanatham & Anr., dealt with a dispute regarding the payment of dues to a respondent who had retired from service. The Court ruled on the final settlement amount to be paid to the respondent and also quashed the contempt proceedings against the appellants.

Background of the Case

The dispute arose from a claim made by C.V. Viswanatham against his former employer, the A.P. State Essential Commodities Corporation Ltd. The respondent, Viswanatham, had attained the age of superannuation after working for only a few years, and the issue of his dues remained unsettled. He filed a case for the payment of his dues, which led to a judgment in his favor.

The appellants, the Vice Chairman and Managing Director of the A.P. State Essential Commodities Corporation, had been ordered to pay a certain amount, but the payment was delayed. Consequently, contempt proceedings were initiated against them for non-compliance with the court’s earlier order.

Petitioner’s (A.P. State Essential Commodities Corporation) Arguments:

• The appellants argued that the delay in payment was due to financial constraints and other procedural delays.
• They sought to have the contempt proceedings dismissed, as they claimed no wilful disobedience had occurred.
• The appellants agreed to settle the outstanding dues but requested an extension for the payment.

Respondent’s (C.V. Viswanatham) Arguments:

• The respondent contended that the delay in payment had caused undue hardship and was a violation of the judgment.
• The respondent requested that the full and final settlement be made promptly.

Supreme Court’s Judgment:

• The Court ruled in favor of the respondent, directing the appellants to pay the total sum of Rs. 2 Lakhs within three months, in addition to the Rs. 1 Lakh already paid.
• The judgment stated, “In view of the facts that the respondent had attained the age of superannuation and worked for a limited period of 5-6 years, the full and final settlement will be Rs. 2 Lakhs, which includes the Rs. 1 Lakh already paid.”
• The Court emphasized the need to resolve the matter quickly to avoid further delays.
• Contempt proceedings were quashed, as the Court found no wilful non-compliance.
• The appeal was disposed of with no costs being imposed.

Key Takeaways

• The ruling clarifies that delayed payments to retirees must be settled promptly to avoid legal complications.
• The Court emphasized the importance of adhering to court orders regarding payment settlements, while recognizing the need to be fair to both parties.
• The judgment underscores the need for the prompt resolution of financial claims arising from employment disputes, especially when the respondent has already retired.

The judgment was delivered by Justice Anil R. Dave and Justice Adarsh Kumar Goel on February 12, 2016.

This decision ensures that pending claims are resolved in a timely and fair manner, reinforcing the importance of complying with court orders in financial disputes involving retired employees.

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Download Judgment: Vice Chairman & Mana vs C.V. Viswanatham Supreme Court of India Judgment Dated 12-02-2016-1741852918477.pdf