Justice Manmohan Singh dismissed the plea after both IIT and Swamy failed to settle the issue out of court.
The Indian Institute of Technology, Delhi, (IIT-D) had approached high court against a city court's order agreeing to hear Swamy's plea seeking recovery of the alleged dues of Rs 19 lakh along with interest of 18 percent from February 1991.
The lower court had on February 26, 2012 agreed to hear Swamy's plea and dismissed IIT's application seeking dismissal of his civil suit on the ground that it was time-barred and beyond the jurisdiction of the court.
According to IIT, Swamy's total claim, including interest, would come to Rs 70.20 lakh which is beyond the pecuniary jurisdiction of the lower court.
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Swamy had filed the suit in the lower court to recover salary and allowances in revised grade from December 12, 1972 till May 21, 1991 along with interest at 18 percent with effect from February 20, 1991 till the date of payment and gratuity, pension.
Swamy had said he came to know about his dues only in 2009 after filing RTI applications which showed the Director had "falsely" presented the case for his dues before the Board of Governors.