### Terminal dues computed after notional salary fixation must include benefits of notional promotions, increments, and ACP-MACP.

The petitioner filed a contempt petition alleging willful disobedience of a judgment dated 05.04.2023 passed in LPA No. 675/2022

The Delhi Development Authority (DDA) challenged that judgment in the Supreme Court, but the SLP was subsequently dismissed

While the DDA conceded that the original directions must be complied with, a dispute arose regarding the computation of terminal benefits. The petitioner contended that the DDA failed to include Notional Promotion, Increments, and ACP-MACP benefits in the calculation, despite the court's earlier order to treat the petitioner as being in service until superannuation for the purpose of retiral dues

1. Whether the exclusion of Notional Promotion, Increments, and ACP-MACP benefits by the DDA in computing terminal dues constitutes willful disobedience of the court’s directions

2. Whether the High Court, in contempt proceedings, has the power to issue consequential directions to ensure the contemnor purges their conduct

The court emphasized that in contempt proceedings, the judiciary possesses the power to issue necessary consequential directions to ensure obedience to court orders and allow a party to purge their contempt

The court relied on the precedent of T.N. Godavarman Thirumulpad (102) v. Ashok Khot (2006), establishing that the jurisdiction of contempt is coextensive with the jurisdiction to make the original orders

It further cited Tirupathi Rao v. M. Lingamaiah (2024), which affirms that the High Court may secure compliance by allowing a contemnor to purge the contempt and may pass orders as the justice of the case demands

The Court interpreted the operative directions of the Division Bench, noting that while back wages were denied, the petitioner was legally deemed to be "in service" until superannuation for the purpose of "pension and other retiral dues"

The Court reasoned that the directive to pay terminal dues "at par with other regular employees after notional fixation of salary" leaves no ambiguity. Therefore, the petitioner cannot be treated differently from regular employees; excluding Notional Promotions or ACP-MACP benefits would bypass the requirement of "notional fixation" and result in willful disobedience

The Court determined that it must exercise its enforcement powers to ensure the DDA's computation aligns with the spirit of the original judgment

The Court directed the DDA to compute and disburse the revised amount within eight weeks, warning of further action for willful disobedience if failed. The petition was disposed of with a direction to file a compliance affidavit by 15.09.2026