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Service Law: Interest on delayed terminal gratuity held valid

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In the case of Mrs. Promila Sawhney vs. Union of India and Ors., the Delhi High Court upheld a decision by the Central Administrative Tribunal (CAT) regarding the rate and duration of interest on delayed terminal gratuity. The petitioner challenged the CAT’s award of only 1.5% simple interest per annum and the restriction of that interest to the period ending August 1, 2019. The Court held that since the gratuity was payable in US Dollars, which had significantly appreciated against the Indian Rupee over two decades, the Tribunal’s decision to apply a lower interest rate consistent with US economic trends was a valid exercise of discretion. Emphasizing its limited supervisory jurisdiction, the Court refused to interfere, noting that the interest period was correctly capped at the date the government had formally offered the payment.

  1. Nature of the Dispute

The petitioner, a retired employee in her seventh decade of life, sought the enhancement of interest granted on her delayed terminal gratuity. While the Central Administrative Tribunal (CAT) had ruled in her favor regarding the entitlement to gratuity, it fixed the interest at 1.5% per annum for the period from November 1, 2000, to August 1, 2019. The petitioner argued for a rate of 12% per annum up to the date of actual payment, asserting that the delay was exclusively attributable to the government.

  1. Arguments of the Parties
  • The Petitioner: Contended that gratuity is an “earned right” and not a bounty. Counsel argued that under the Payment of Gratuity Act, 1972, the standard rate for overdue gratuity is 10% per annum, and the 1.5% rate was “grossly inadequate” and “trivial” against 25 years of inordinate delay.
  • The Respondents (Union of India): Argued that the delay was partly due to the petitioner not pursuing her claim between 2001 and 2016 and her subsequent refusal to accept the gratuity amount when it was offered in 2019 because it did not include interest. They maintained the rate was discretionary and justified by the foreign currency component.
  1. Reasoning of the Tribunal

The High Court examined the CAT’s specific reasoning for the low interest rate:

  • Currency Appreciation: The gratuity amount (US$ 23,879.94) was payable in US Dollars, which had appreciated significantly against the Rupee since the petitioner’s retirement.
  • Economic Context: The Tribunal noted that interest and inflation rates in the United States were historically much lower than those in India.
  • Contributory Delay: The Tribunal attributed some responsibility for the 15-year delay to the petitioner’s own conduct.
  1. Court’s Observations and Decision

The High Court highlighted that it was exercising supervisory jurisdiction under Article 226/227, meaning it does not sit as a court of appeal to re-weigh evidence or substitute its own view for that of the Tribunal unless there is perversity or a flagrant violation of justice.

  • Discretion on Interest Rate: The Court found no legal infirmity in the 1.5% rate. It agreed that the significant growth of the Dollar against the Rupee served as a form of inherent compensation, justifying a lower interest percentage.
  • Duration of Interest: Regarding the end-date of August 1, 2019, the Court found no error in law. It held the Tribunal was justified in balancing equities, especially since the petitioner had denied the principal amount when it was offered solely because interest was not included at that time.
  1. Conclusion

The Court concluded that the Tribunal had exercised its discretion by balancing equities and considering the unique facts of a foreign currency payment. Finding no perversity in the impugned order, the writ petition was dismissed.

2026 DHC 5229

Mrs Promila Sawhney V. Union of India And Ors. (D.O.J. 01.07.2026)

2026 DHC 5229 click here to view full text of judgment

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Bail Granted in Rape Case: No evidence to prima facie connect the petitioner

July 9, 2026 No Comments

In Jaswant Kumar Rao vs. State Govt. of NCT of Delhi, the Delhi High Court granted regular bail to an accused charged under Sections 376D and 506 of the IPC for allegedly filming a rape and circulating the footage. Justice Girish Kathpalia observed that, apart from the statement of the prosecutrix, there was no evidence to prima facie connect the petitioner to the filming of the incident. The Court highlighted several weaknesses in the prosecution’s case, including a significant delay in reporting the incident, the failure of forensic evidence to identify the petitioner’s voice in the video clip, and a lack of interest shown by the investigation agency, which failed to file a status report. Consequently, the Court found no justification for continued detention and ordered the petitioner’s release.

  1. Factual Allegations

The petitioner sought regular bail in FIR No. 338/2024 (PS Geeta Colony) involving allegations of gang-rape and criminal intimidation. The prosecutrix alleged that in October 2023, she was raped by her neighbor, Raj. The specific allegation against the present petitioner, Jaswant Kumar Rao, was that he filmed the act of rape and circulated the video clip. While the alleged rapist (Raj) remained at large, the petitioner was arrested on September 30, 2024.

  1. Arguments for the Petitioner

Counsel for the petitioner argued for bail on the following grounds:

  • Lack of Evidence: There is no legally admissible evidence connecting the petitioner to the filming of the alleged incident.
  • Forensic Results: A forensic examination of the video clip failed to identify the voice in the recording as that of the petitioner.
  • Delay in Reporting: There was an unexplained and inordinate delay in reporting the matter; the incident allegedly occurred in October 2023 but was only reported in July 2024.
  • Refusal of Medical Exam: The prosecutrix refused to undergo a medical examination or submit the clothes she was allegedly wearing at the time of the incident.
  1. Prosecution and Prosecutrix’s Stand
  • State’s Position: The State did not deny that the forensic report failed to link the petitioner to the video. The Investigating Officer (IO) further submitted that the petitioner’s mobile phone could not be recovered as he had allegedly destroyed it.
  • Victim’s Justification: Counsel for the prosecutrix argued that she had supported the prosecution’s case in her chief-examination. The delay in reporting was attributed to societal pressure, and the refusal of a medical exam was justified on the grounds that the incident had occurred nearly a year prior to the report.
  1. Court’s Reasoning and Analysis

The Court noted a “lack of interest” from the investigation agency, evidenced by its failure to file a status report. In its analysis of the evidence, the Court found:

  • Transmission Trail: The prosecution failed to track the transmission of the video to connect the petitioner to the act of filming.
  • Hostile Witness: A key witness (PW5), to whom the petitioner had allegedly transmitted the video, did not support the prosecution’s case during his testimony.
  • Lack of Prima Facie Case: The Court concluded that, besides the prosecutrix’s statement, there was no evidence to establish even a prima facie case that the petitioner filmed the rape.
  1. Final Order

The Court determined there was no reason to further deprive the petitioner of his liberty. The bail application was allowed, and the petitioner was ordered to be released upon:

  • Furnishing a personal bond of ₹10,000/-.
  • Providing one surety in the like amount to the satisfaction of the Trial Court.

The Court directed that a copy of the order be immediately transmitted to the Jail Superintendent to inform the accused.

2026 DHC 5389

Jaswant Kumar Rao vs. State Govt. of NCT of Delhi(D.O.J. 06.07.2026)

2026 DHC 5389 click here to view full text of judgment

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Limitation: Revision Petition Dismissed as Barred by Limitation

July 9, 2026 No Comments

In Rajinder Kumar Gupta vs. Sushila Devi Jain (since deceased) through her LR, the Delhi High Court dismissed a revision petition challenging a 2020 eviction order due to an inexcusable delay in filing. Justice Amit Sharma ruled that the petitioner-tenant could not claim the benefit of Section 14 of the Limitation Act for the time spent pursuing a “wrong remedy” (an appeal against a review dismissal) because that proceeding did not seek the “same relief” as the revision against the original eviction order. The Court held that even after accounting for COVID-19 limitation extensions, the petitioner failed to challenge the eviction order immediately after his review application was dismissed, rendering the present petition time-barred by 180 days.

Summary of Judgment

  1. Factual and Procedural Background

The case originated from an eviction petition filed by the late Sushila Devi Jain regarding a shop in Yusuf Sarai, New Delhi. The landlady sought the premises for the bona fide requirement of her grandson, a CA graduate, to establish his professional office. On July 6, 2020, the Rent Controller passed an eviction order against the petitioner.

  1. Post-Eviction Litigation

Following the eviction order, the petitioner engaged in a series of legal challenges:

  • Review Petition: Filed on July 27, 2020, seeking a review of the eviction judgment based on alleged new evidence. This petition was eventually dismissed on September 25, 2025.
  • Appeal before Tribunal: The petitioner then challenged the dismissal of the review petition via an appeal (RC ARCT 13/2025) before the Rent Control Tribunal. He eventually withdrew this appeal on March 27, 2026, to file the current revision petition.
  • Current Revision: Filed on March 24, 2026, seeking to quash the original 2020 eviction order and the 2025 review dismissal.
  1. Arguments for Condonation of Delay

The petitioner sought to condone the significant delay in filing the revision by arguing:

  • The period from March 2020 to February 2022 should be excluded per Supreme Court orders regarding COVID-19.
  • The time spent pursuing the review and the subsequent appeal should be excluded under Section 14 of the Limitation Act, as he was allegedly prosecuting his remedies in “good faith” based on legal advice.
  • The limitation for a revision under Section 25B(8) of the DRCA should be three years under Article 137 of the Limitation Act.
  1. Court’s Analysis and Findings

The Court rejected the petitioner’s plea for condonation based on the following legal determinations:

  • Commencement of Limitation: Citing Supreme Court precedent (DSR Steel Pvt. Ltd.), the Court noted that when a review petition is dismissed, there is no “merger” of orders; the aggrieved party must challenge the original decree within the stipulated time.
  • Inapplicability of Section 14: The Court held that the appeal filed before the Tribunal was for a “distinct and separate” relief (challenging the review dismissal) compared to the current petition (challenging the eviction order). Therefore, the time spent on that appeal could not be excluded because it was not for the “same relief”.
  • Calculation of Delay: The Court found that even if the period taken to dispose of the review application was excluded, the petitioner failed to challenge the eviction order immediately after the review was dismissed on September 25, 2025. Instead, he waited until March 2026, making the petition time-barred by 180 days.
  1. Final Decision

The Court concluded that the petitioner offered no valid explanation for why the eviction judgment was not challenged immediately after the review dismissal. Consequently, the application for condonation of delay was dismissed, leading to the dismissal of the revision petition regarding the original eviction order. The matter was listed for future hearing only regarding secondary prayers related to execution proceedings.

2026 DHC 5386

Rajinder Kumar Gupta vs. Sushila Devi Jain(D.O.J. 06.07.2026)

2026 DHC 5386 click here to view full text of judgment

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Eviction Petition Fails: landlord failed to establish a genuine bona fide requirement f

July 9, 2026 No Comments

In the case of Brij Mohan Batta vs. Tara Chand Garg & Anr., the Delhi High Court dismissed a revision petition filed by a landlord seeking the eviction of a tenant from a commercial shop in Kirti Nagar. Justice Amit Sharma upheld the decision of the Additional Rent Controller (ARC), ruling that the landlord failed to establish a genuine bona fide requirement for the premises. Although the landlord claimed he needed the shop to settle his two “unemployed” sons in a catering business, the Court found the claim to be concocted, as evidence proved the sons were already gainfully employed running a gift and packaging business at another location.

  1. Nature of the Petition

The petitioner (landlord) filed this revision petition under Section 25B(8) of the Delhi Rent Control Act (DRCA) to set aside an ARC order dated July 8, 2024, which had dismissed his eviction petition against the respondents (tenants). During the pendency of the high court proceedings, the original petitioner passed away and was represented by his legal heirs.

  1. Landlord’s Case for Eviction

The original petitioner sought eviction from Shop No. 3/14-A, Kirti Nagar, which had been let out in 1970. He asserted a bona fide requirement under Section 14(1)(e) of the DRCA, claiming:

  • He was running a catering business from an adjoining shop but was unable to manage it alone due to age.
  • His two sons, Nitin and Ankush Batta, were unemployed and needed the demised premises to run their own business.
  • He had no other suitable alternate accommodation available.
  1. Tenant’s Defense and Evidence

The respondents argued that the landlord’s requirement was forged and fabricated. They provided evidence to show:

  • The sons were already successfully running a business named “Om Vaneesa Creations” (dealing in gift items and theme packaging) from the ground floor of another property in East Punjabi Bagh.
  • They placed photographs on record showing a business banner for “Om Vaneesa Creations” that featured the mobile number of one of the petitioner’s sons.
  • The landlord possessed other vacant shops at the East Punjabi Bagh property that could be used if necessary.
  1. Reasoning of the Lower Court (ARC)

The ARC dismissed the eviction petition after finding that the landlord had not come to the court with clean hands. The ARC noted that the landlord admitted the phone number on the business banner belonged to his son but failed to produce his brother (the alleged owner of that shop) as a witness to rebut the claim that his sons were running that business. The ARC concluded the need for the Kirti Nagar shop was fabricated solely to evict the tenants.

  1. High Court’s Findings and Analysis
  • Limited Scope of Revision: The Court emphasized that its powers under Section 25B(8) of the DRCA are supervisory in nature and not as wide as an appellate court. It can only interfere if the lower court’s order suffers from a jurisdictional error or grave illegality.
  • Failure to Rebut Evidence: The High Court found that once the tenants raised a triable issue regarding the sons’ existing business, the onus shifted to the landlord to displace that presumption. The landlord failed to prove that his sons intended to wind up their current business or that the East Punjabi Bagh premises were unsuitable.
  • Appreciation of Evidence: The Court held that the ARC’s reliance on the photographs and the son’s visiting card—which shared the same contact details—was legally sound.
  1. Final Conclusion

Finding no error apparent on the face of the record or perversity in the ARC’s judgment, the High Court dismissed the revision petition and upheld the refusal to grant an eviction order

2026 DHC 5385

Brij Mohan Batta vs. Tara Chand Garg & Anr.(D.O.J. 06.07.2026)

2026 DHC 5385 click here to view full text of judgment

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Eviction Upheld as landlord had established a genuine bona fide requirement

July 9, 2026 No Comments

In Shalimar Paints Ltd & Anr. vs. M/S Phelps and Company Pvt Ltd, the Delhi High Court upheld an eviction order against a tenant occupying a prime commercial space in Connaught Place. Justice Amit Sharma dismissed the revision petition, ruling that the respondent-landlord had established a genuine bona fide requirement to expand its art business wing, “The Biv”. The Court reaffirmed that a landlord is the best judge of their own requirements and the tenant cannot dictate how the landlord should utilize available space or adjust their business operations. The Court found no merit in the tenant’s claims regarding alternate accommodation or forged documents, concluding that the Rent Controller’s decision to refuse “leave to defend” was legally sound.

  1. Factual Background

The petitioners (tenants) challenged an order dated November 6, 2025, passed by the Rent Controller, which had dismissed their application for leave to defend and passed an eviction order for property No. 9-A, First Floor, Inner Circle, Connaught Place. The respondent (landlord), a private company, sought the premises under Section 14(1)(e) of the Delhi Rent Control (DRC) Act for the expansion of its art business, which involves curating and exhibiting paintings and artifacts.

  1. Landlord’s Bona Fide Requirement

The landlord argued that its current operations on the third floor and terrace were unsuitable due to lack of adequate space for displays and meetings, and because that area was only accessible via the “middle circle,” which has lower commercial visibility and footfall. They intended to remove a common wall between an existing director’s office and the tenanted premises to create a larger gallery and storage area.

  1. Tenant’s Grounds for Defense

The petitioners raised several triable issues in their leave to defend application:

  • Alternate Accommodation: They alleged the landlord concealed approximately 7,500 sq. ft. of available commercial space on the upper floors.
  • Mala Fide Intentions: They claimed the landlord’s actual goal was to evict them and re-let the property at a higher rent.
  • Forged Documents: The tenants alleged that certain challans/invoices submitted by the landlord to prove its art business activities were fabricated, pointing to inconsistencies in serial numbers and dates.
  • Legal Maintainability: They argued that a company cannot seek eviction under Section 14(1)(e) and must instead invoke Section 22 of the DRC Act.
  1. Court’s Findings and Analysis
  • Landlord as the Best Judge: The Court emphasized the settled legal principle that a tenant cannot dictate terms to a landlord regarding the suitability of alternate premises. The landlord’s preference for the first floor due to its strategic entrance from the inner circle was deemed a valid business decision.
  • Suitability of Upper Floors: The Court noted that the third floor was already utilized for co-working operations and suffered from diminished foot traffic and visibility, making it an unsuitable alternative for a high-end art gallery.
  • Genuineness of Challans: Upon perusal, the Court found that the continuity of item numbers across different dates supported the validity of the invoices. It held that minor date inconsistencies did not create a triable issue regarding the landlord’s bona fide intent.
  • Legal Status of Companies: The Court dismissed the challenge regarding Section 22 of the DRC Act, noting that it is well-settled that a body corporate is not barred from invoking Section 14(1)(e).
  • Limited Scope of Revision: Under Section 25B(8), the High Court’s role is not to act as an appellate body but to ensure the Rent Controller’s order is “according to law”. Finding no illegality or jurisdictional error, the Court declined to interfere.
  1. Final Conclusion

The revision petition was dismissed. The Court directed the petitioners to vacate and hand over peaceful possession of the premises forthwith, noting that the statutory six-month grace period under the DRC Act had already lapsed.

2026 DHC 5384

Shalimar Paints Ltd & Anr. vs. M/S Phelps and Company Pvt Ltd,(D.O.J. 06.07.2026)

2026 DHC 5384 click here to view full text of judgment

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