Bombay High Court Examined Whether Retired College Employees Were Entitled to Full Pay Commission Arrears or Only Three Years' Back Wages. Court Considered Limitation Under Article 7 of Limitation Act and Continuous Cause of Action for Monthly Wage Claims While Reviewing Grievance Committee Order Directing Payment from 01-08-1999 to 31-10-2016 with 9% Interest.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The two writ petitions filed by an educational trust and its engineering college challenged an order of the Grievance Committee constituted under the Maharashtra Public Universities Act, 2016. The respondent employees, one a former Clerk and the other a former Laboratory Assistant, had retired after long service. They alleged that despite regular appointment and applicable service rules, they were denied salary as per the recommendations of the 5th, 6th and 7th Pay Commissions. The employees made representations during employment and after retirement, but the management rejected the post-retirement representations on 24-08-2017. Consequently, they filed Grievance Petition Nos.6/2019 and 7/2019 before the Grievance Committee. By order dated 04-10-2021, the Committee granted monetary benefits of the 5th and 6th Pay Commissions from the date of approval along with 9% interest; in the operative part as narrated in the judgment, it directed payment of arrears of salary from 01-08-1999 to 31-10-2016 and difference in gratuity. The petitioners did not challenge the entitlement of the employees to the Pay Commission benefits or the maintainability of the claim, but restricted their challenge to the period for which arrears could be recovered. They contended that recovery of wages should be limited to three years prior to the filing of the grievance, relying on Article 7 of the Limitation Act and several Supreme Court decisions such as State of Madhya Pradesh v. Yogendra Shrivastava and Union of India v. Tarsem Singh. They argued that representations do not extend limitation and that the interest at 9% was awarded without reasons. The respondent employees submitted that there was no absolute rule limiting arrears to three years; the facts showed they had made representations and were prevented by the management from raising claims due to fresh appointment letters containing termination clauses, and therefore the three-year restriction should not apply. They relied on Secretary, Mahatma Gandhi Mission v. Bhartiya Kamgar Sena and other cases. The High Court noted that Article 7 of the Limitation Act prescribes three years for recovery of wages. It observed that the claim filed by employees was held to be within limitation because for every month when wages were not paid, cause of action continued. However, the court distinguished between maintainability of the proceeding and the quantum of actual benefits recoverable after inordinate delay. The court was considering the effect of representations and alleged prevention by management. The provided judgment excerpt ends at paragraph 15 while discussing case law, and the final operative decision is not available. Therefore, the final holding and relief granted cannot be stated from the excerpt.

Headnote

A) Limitation Law - Recovery of Wages - Article 7 of Limitation Act, 1963 prescribes three years for recovery of wages; continuous monthly non-payment gives recurring cause of action but does not automatically enlarge period for actual arrears - Limitation Act, 1963, Articles 6-7 - The Grievance Committee held employees' claim within limitation on ground of continuous cause of action; petitioners argued recovery should be restricted to three years prior to filing; court noted that while the proceeding may be within limitation, question remains whether employees can recover arrears for entire period from 1999; final determination not available in excerpt (Paras 12-14).

B) Service Law - Pay Commission Recommendations - Retired Employees' Entitlement to 5th, 6th, 7th Pay Commission Benefits - Maharashtra Public Universities Act, 2016, Section 79 - Employees worked as Clerk and Laboratory Assistant, were denied Pay Commission benefits during service; Grievance Committee directed payment of arrears from 01-08-1999 to 31-10-2016 with difference in gratuity and 9% interest; petitioners did not challenge entitlement but only period of arrears; court noted issue of monetary benefits from date of entitlement vs three years prior to filing (Paras 1-6).

C) Education Law - Grievance Redressal Committee - Jurisdiction under Section 79 of Maharashtra Public Universities Act, 2016 - Employees filed Grievance Petition Nos.6/2019 and 7/2019 after representations rejected; Committee passed order dated 04-10-2021 granting benefits from date of approval with 9% interest; court examined legality of that order and the limitation challenge (Paras 3,5,7).

D) Interest - Rate of Interest - 9% per annum on arrears challenged as without reasons - Petitioners contended interest was granted without recording reasons; employees sought interest on arrears; court noted challenge to interest but final decision not in excerpt (Paras 6-7).

E) Labour Law - Delay and Laches - Effect of Employee Representations and Alleged Management Coercion - Limitation Act, 1963, Article 7 - Employees argued representations in 2008 and later were ignored, management issued fresh appointment letters with termination clauses to discourage claims; court considered whether prevention by management could preclude limiting arrears to three years; final ruling not provided in excerpt (Paras 9-10,14).

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Issue of Consideration

Whether respondent no.3 ex-employees are entitled for monetary benefits of 5th, 6th and 7th Pay Commissions from date of entitlement or for period of three years prior to filing of proceeding before Grievance Committee

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Final Decision

Not mentioned - provided judgment text ends before final decision

Law Points

  • Under Article 7 of Limitation Act
  • limitation for recovery of wages is three years
  • continuous cause of action for monthly non-payment may make proceeding within limitation but quantum of arrears may be restricted
  • representation does not automatically extend limitation
  • delay and laches can limit relief to three years prior to filing
  • interest on arrears requires reasons
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Case Details

2025 LawText (BOM) (07) 167

Writ Petition No.2134/2022 and Writ Petition No.2135/2022

2025-07-04

R.M. Joshi, J.

2025:BHC-NAG:6280

Mr. N.B. Kalwaghe for petitioners, Mr. Atul Pande for respondent nos. 1 and 2, Mr. Rahil Mirza for respondent no.3 (WP No.2134/2022), Mr. Onkar Deshpande for respondent no.3 (WP No.2135/2022)

Ankush Shikshan Sanstha, G.H. Raisoni College of Engineering

Rashtrasant Tukdoji Maharaj Nagpur University, The Grievance Committee, Surekha Sanjay Kadu (WP No.2134/2022), Anil s/o Natthuji Dongare (WP No.2135/2022)

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Nature of Litigation

Writ petitions challenging order of Grievance Committee directing payment of Pay Commission arrears to retired employees

Remedy Sought

Petitioners sought to restrict payment of Pay Commission arrears to three years prior to filing of grievance and to set aside interest award

Filing Reason

Grievance Committee allowed entire claim from 01-08-1999 to 31-10-2016 with 9% interest; petitioners contended relief beyond three years was barred by limitation

Previous Decisions

Grievance Committee order dated 04-10-2021 in Grievance Petition Nos.6/2019 and 7/2019 granted 5th and 6th Pay Commission benefits from date of approval with 9% interest; directed arrears from 01-08-1999 to 31-10-2016 and difference in gratuity; representations rejected on 24-08-2017

Issues

Whether respondent no.3 ex-employees are entitled to monetary benefits of 5th, 6th and 7th Pay Commissions from date of entitlement or for three years prior to filing proceedings before Grievance Committee Whether claim for arrears of wages is barred by limitation under Article 7 of Limitation Act Whether continuous cause of action extends beyond three-year limitation period Whether interest @9% per annum was justified

Submissions/Arguments

Petitioners restricted challenge to arrears period; contended recovery of wages should be restricted to three years prior to filing; representations do not extend limitation; interest granted without reasons; relied on various Supreme Court and High Court judgments. Respondents contended no absolute rule limiting arrears to three years; facts show employees made representations and were prevented by management from claiming; management issued fresh appointment letters with termination clauses; thus limitation should not apply; relied on Secretary, Mahatma Gandhi Mission etc.

Ratio Decidendi

The court considered that Article 7 of the Limitation Act fixes a three-year limitation for recovery of wages, and while continuous monthly non-payment creates a continuing cause of action making the claim within limitation, the actual recovery of arrears may be restricted to the period of three years prior to the filing of the proceeding unless there are circumstances like prevention by employer; final ratio not available in provided excerpt.

Judgment Excerpts

The issue involved in these petitions is as to whether the respondent no.3 ex-employees of the petitioner educational institution are entitled for the monetary benefits of 5th, 6th and 7th Pay Commissions from the date of their entitlement or for the period of three years prior to the filing of the proceeding before the Grievance Committee. Article 7 of the Limitation Act prescribes period of three years to be the limitation for wages in case of any other person as there is a provision in Article 6 about the recovery of wages by a seaman. The petition/ claim filed by the employees before the Committee was held to be within limitation for the reason that for every month whenever the wages were not paid, cause of action continued for them to file the proceeding.

Procedural History

Employees made representations during employment; after retirement submitted representations dated 18-07-2017 and 18-08-2017; rejected on 24-08-2017; filed Grievance Petition Nos.6/2019 and 7/2019; Grievance Committee passed order dated 04-10-2021; petitioners filed Writ Petition Nos.2134/2022 and 2135/2022; reserved 27-06-2025; pronounced 04-07-2025

Acts & Sections

  • Maharashtra Public Universities Act, 2016: Section 79
  • Limitation Act, 1963: Article 6, Article 7
  • Bombay Public Trust Act, 1950:
  • Societies Registration Act, 1860:
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