Delhi High Court on Delayed Salary and Compulsory Interest Imposition
Parties: Anil Kumar v. M/s Horizon Tech Solutions Pvt. Ltd.
The petitioner was employed as a senior developer. The management delayed salary disbursements repeatedly for four consecutive months citing startup cash-flow constraints and client invoice reconciliation delays. The employee issued multiple written requests which HR ignored. The employee approached the High Court following an unaddressed statutory demand.
The High Court held that salary earned by an employee is not a discretionary bounty or corporate perk; it is property protected under Article 300A of the Constitution of India and a statutory obligation under employment law. The court directed the management to disburse the entire arrears of unpaid salary within 14 days, accompanied by compound interest at 12% per annum, alongside ₹25,000 litigation compensation.