High Court of Judicature at Bombay Hears Writ Petitions Challenging Dismissal of Unfair Labour Practice Complaints and Subsequent Termination of Daily-Wage Firemen and Drivers. Petitioners' Claims for Permanency Under MRTU & PULP Act, 1971, Were Dismissed by Industrial Court, and Their Services Were Terminated While Writ Petitions Were Pending; High Court Was Called Upon to Examine Legality of Financial Restraint as Ground to Deny Regularisation.

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

These four writ petitions, heard together by the High Court of Judicature at Bombay, arose from the dismissal by the Industrial Court of complaints filed under Section 28 read with Items 6, 9 and 10 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971. The petitioners, Pradip Ramesh Shinde, Bhushan Suresh Thakre, Sunil Ananda Bagul, and Sheikh Javid Sheikh Rashid, were employed by the respondent Malegaon Municipal Corporation as Drivers or Firemen on daily wages/contract basis. The first two petitioners were appointed as Drivers by order dated 27.02.2017 for six months with effect from 01.03.2017 to 31.08.2017 at a salary of Rs.7,000 per month, later extended by orders dated 11.01.2019 and 06.01.2020 at Rs.8,000 per month. The other two petitioners were appointed as Firemen by order dated 07.04.2017 in a similar manner. The petitioners contended that they had continuously worked for over five years, performing the same duties as regular employees, despite intermittent break orders, and that the Corporation had vacant sanctioned posts. They filed unfair labour practice complaints seeking permanency. The Industrial Court initially granted interim protection by order dated 04.11.2019, finding a prima facie case, and directed continuation pending final disposal. The main complaints, however, were dismissed by judgment dated 06.05.2025, with ad-interim protection extended until 01.07.2025 to allow the petitioners to approach the High Court. The petitioners filed writ petitions on 13.06.2025 but could not obtain interim relief before 01.07.2025, and the respondent Corporation terminated their services by order dated 03.07.2025. Petitioners amended the petitions on 16.07.2025 to challenge the termination as well. In the High Court, the petitioners argued that they had worked for more than 240 days and for five years continuously, that the Corporation had admitted vacant posts, and that the financial restraint of 35% establishment expenditure under Government Resolution dated 14.01.2016 could not justify indefinite contractual employment. The respondent Corporation argued through affidavits filed by its Additional Commissioner that the Government had sanctioned 2,673 posts out of a proposed 3,760, subject to the condition that establishment expenditure should not exceed 35% of annual revenue, but the Corporation had already incurred 49.20% for 2024-2025, making fresh appointments impossible. The High Court heard both sides and recorded that submissions received due consideration, but the provided text ends at paragraph 11 before the court's final analysis and decision. Therefore, the final outcome is not available in the excerpt.

Headnote

A) Labour Law - Unfair Labour Practice - Items 6, 9 and 10 of Schedule IV, Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Daily-wage employees engaged as drivers and firemen for over five years with intermittent renewal orders contended that their continuous service and work on vacant sanctioned posts entitled them to permanency; the Industrial Court initially found a prima facie case and granted interim protection, but ultimately dismissed the main complaints by judgment dated 06.05.2025 - The High Court heard arguments on why the dismissal should be set aside, focusing on continuity, 240-day rule, and exploitation through contractual employment; final decision not provided in the extracted text (Paras 6.1-6.3, 8.1-8.2, 9.1-9.2).

B) Labour Law - Termination during Pendency - Termination order dated 03.07.2025 passed while writ petitions were pending after interim protection lapsed; petitioners challenged this as defiance of court rulings; respondent argued it was powerless due to financial constraints - The court permitted amendment to include this challenge; no final determination recorded (Paras 6.4-6.5, 8.5, 9.1).

C) Administrative Law - Government Resolution and Staffing Pattern - Government Resolution dated 14.01.2016 approved staffing pattern of 2,673 posts subject to establishment expenditure not exceeding 35% of annual revenue; respondent claimed actual expenditure at 49.20%, making fresh appointments impossible - Whether financial constraints can defeat statutory/industrial rights to permanency was argued; not decided in available text (Paras 9.1-9.2).

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Issue of Consideration

Whether the Industrial Court erred in dismissing the petitioners' complaints under Section 28 read with Items 6, 9 and 10 of Schedule IV of the MRTU & PULP Act, 1971; whether termination of services dated 03.07.2025 during pendency of writ petitions was legal; whether financial constraints and Government Resolution dated 14.01.2016 imposing 35% establishment expenditure limit could defeat claim for permanency

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Law Points

  • Daily-wage employees performing same duties as regular employees on vacant sanctioned posts for over five years may be entitled to permanency under MRTU & PULP Act
  • termination during pendency of writ petition is an act of defiance
  • financial constraints of establishment expenditure limit cannot justify indefinite contractual employment
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Case Details

2025 LawText (BOM) (09) 164

Writ Petition No. 7949 of 2025 along with Writ Petition Nos. 8004 of 2025, 7951 of 2025 and 7954 of 2025

2025-09-30

Milind N. Jadhav, J.

2025:BHC-AS:41412

Ms. Pavitra Manesh, Advocate for Petitioners; Mr. S.S. Patwardhan, Advocate for Respondent - Corporation

Pradip Ramesh Shinde, Bhushan Suresh Thakre, Sunil Ananda Bagul, Sheikh Javid Sheikh Rashid

Malegaon Municipal Corporation, Malegaon

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Nature of Litigation

Writ petitions filed under constitutional writ jurisdiction challenging orders of the Industrial Court and subsequent termination

Remedy Sought

Petitioners sought quashing and setting aside of the Industrial Court's judgment dated 06.05.2025 dismissing their ULP complaints, and the termination order dated 03.07.2025, and sought permanency in service

Filing Reason

The petitioners' unfair labour practice complaints seeking permanency were dismissed by the Industrial Court, and their services were terminated while writ petitions were pending; hence they filed writ petitions

Previous Decisions

The Industrial Court initially granted interim relief on 04.11.2019, finding a prima facie case and directing continuation pending final disposal. The main ULP complaints were dismissed by judgment dated 06.05.2025, with ad-interim protection extended until 01.07.2025. Petitioners filed writ petitions on 13.06.2025 but did not obtain interim relief before termination on 03.07.2025; amendment allowed on 16.07.2025.

Issues

Whether the Industrial Court erred in dismissing the petitioners' complaints under Section 28 read with Items 6, 9 and 10 of Schedule IV of the MRTU & PULP Act, 1971, despite continuous service of more than five years and work on vacant sanctioned posts. Whether the respondent Corporation's termination of the petitioners' services by order dated 03.07.2025 during pendency of the writ petitions was legal and justified. Whether the financial constraints and Government Resolution dated 14.01.2016 imposing a 35% establishment expenditure limit could defeat the petitioners' claim for permanency/regularisation.

Submissions/Arguments

Petitioners argued that they had been working continuously for over nine years on essential posts, performing same duties as regular employees, despite technical breaks on paper only. Petitioners contended that continued employment on contract basis despite acute inadequacy of sanctioned vacant posts amounted to exploitation and deprived them of permanency and statutory benefits. Petitioners submitted that they had worked for more than 240 days and for five years continuously, entitling them to permanency as per settled law. Petitioners argued that the respondent Corporation's administrative expenses crossing 45% of total establishment expenses could not be a valid reason to deny permanency, especially when posts were vacant. Petitioners submitted that the termination order dated 03.07.2025 during pendency of the writ petitions was an act of complete defiance of court rulings and should be quashed. Respondent Corporation argued that the Government Resolution dated 14.01.2016 approved a staffing pattern of 2,673 posts subject to establishment expenditure not exceeding 35% of annual revenue, but the Corporation had already incurred 49.20% in 2024-2025, making fresh appointments impossible. Respondent Corporation contended that it was completely powerless to appoint or regularise the petitioners due to the breach of the 35% expenditure limit, and therefore employment was continued on contract basis all throughout.

Judgment Excerpts

Petitioners namely Pradip Ramesh Shinde and Bhushan Suresh Thakre were appointed as Driver in the services of the Corporation by appointment order dated 27.02.2017 for a period of six months with effect from 01.03.2017 to 31.08.2017 on payment of Rs.7,000/- per month stipulating various conditions. services of Petitioners were directed to be continued and ad-interim protection was granted to them by the learned Industrial Court until 01.07.2025 to enable Petitioners to take recourse to this Court. Respondent - Corporation by order dated 03.07.2025 terminated services of all four Petitioners. Submissions made by the learned Advocates at the bar have received due consideration of the Court.

Procedural History

Petitioners were appointed as Drivers/Firemen on daily wages/contract basis in 2017. They filed Complaint (ULP) No.35 of 2019 seeking permanency. The Industrial Court passed interim order dated 04.11.2019 granting protection and directing continuation. The main complaints were dismissed by judgment dated 06.05.2025 with ad-interim protection until 01.07.2025. Petitioners filed writ petitions on 13.06.2025. On 03.07.2025, respondent terminated their services. On 16.07.2025, the High Court permitted amendment of petitions to challenge termination. The High Court heard arguments on 30.09.2025.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28, Item Nos.6, 9 and 10 of Schedule IV
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