RSRTC Directed to Pay Long-Pending Dues with Interest Despite Financial Constraints
In a landmark judgment, the Rajasthan High Court has directed the Rajasthan State Road Transport Corporation (RSRTC) to fulfill the rightful claims of one of its former employees, Mohan Singh, despite the financial difficulties faced by the corporation. The court, presided over by Justice Ashok Kumar Jain, delivered its verdict on February 3, 2026, allowing Singh's writ petition and instructing RSRTC to make the payment for weekly rest dues from 1998 to 2011, along with interest, as per an agreement reached during a National Lok Adalat session on December 12, 2015.
Mohan Singh, a former employee of RSRTC, had approached the court seeking a writ of mandamus to compel RSRTC to implement the Lok Adalat order and pay his pending dues, which included retirement benefits, night and overtime allowances, and other terminal benefits. Singh had opted for Voluntary Retirement Scheme (VRS) in April 2014, and the dispute regarding his dues was settled in his favor during the Lok Adalat. However, RSRTC failed to adhere to the settlement, prompting the legal action.
RSRTC's counsel attempted to justify the non-payment by citing the corporation's financial difficulties, referencing a circular dated November 3, 2021. However, the court dismissed this defense, emphasizing that financial constraints do not exempt RSRTC from fulfilling its obligations to its employees. The court criticized the corporation's management for its financial mismanagement, stressing that the rights of workmen should not be compromised due to administrative inefficiencies.
Justice Jain highlighted the critical role played by RSRTC employees, including drivers, conductors, and support staff, in maintaining the public transport system. He underscored that financial difficulties should not be a reason to deny the rightful claims of those who have served the corporation.
The court ordered RSRTC to make the payments within two months from the receipt of the order, with interest as agreed in the Lok Adalat. This decision reinforces the legal principle that financial hardships cannot justify the denial of workers' entitlements, setting a precedent for similar cases in the future.
Bottom Line:
The rightful claim of a workman cannot be denied on the ground of financial difficulties faced by the Corporation.
Statutory provision(s): Labour Law.
