Bombay High Court Quashes Cancellation of Pay Scale Benefits for Daily Wage Clerks in Municipal Council — Violation of Natural Justice and Lack of Opportunity of Hearing. Order Cancelling Clerks' Pay Scale from 1986 to 2001 Set Aside as Unilateral and Without Notice.

High Court: Bombay High Court In Favour of Accused
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Case Note & Summary

The petitioners, three daily wage clerks appointed by the erstwhile Municipal Council, Parbhani (now Municipal Corporation) in 1985-1986, had their services terminated and later reinstated pursuant to interim orders in writ petitions filed in 1990. Their services were regularized w.e.f. 31.08.2001, and the writ petitions were disposed of on 10.01.2002 with a direction that their terms of employment be governed by conditions applicable to regular employees. On 11.06.2009, the Municipal Commissioner granted them the pay scale of clerks from their initial appointment dates (1986-1987). However, on 04.08.2017, the Commissioner issued an order cancelling that benefit and directing that the pay scale be given only from 31.08.2001. The petitioners challenged this cancellation order by way of a writ petition under Article 226 of the Constitution of India. The court found that the impugned order was passed without affording any opportunity of hearing to the petitioners, which violated the principles of natural justice. The court held that such a unilateral order could not be sustained and accordingly quashed and set aside the order dated 04.08.2017. The court further directed that if the respondents wish to revisit the issue, they must give a reasonable opportunity of hearing to the petitioners before passing any fresh order. The writ petition was allowed with no order as to costs.

Headnote

A) Service Law - Pay Scale - Cancellation of Benefits - Natural Justice - The impugned order dated 04.08.2017 passed by the Municipal Commissioner cancelling the pay scale of clerks granted to the petitioners from their initial appointment dates (1986-1987) and instead granting it from 31.08.2001 was set aside as it was passed without giving any opportunity of hearing to the petitioners, violating principles of natural justice. The court held that such a unilateral order affecting the rights of the petitioners could not be sustained. (Paras 1-6)

B) Service Law - Regularization - Pay Scale - Daily Wage Employees - The petitioners, appointed as daily wage clerks in 1985-1986, had their services regularized w.e.f. 31.08.2001. The court noted that the earlier order dated 11.06.2009 granting pay scale from initial appointment was cancelled without notice, which was impermissible. The court directed that the petitioners be heard before any fresh decision. (Paras 3-6)

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Issue of Consideration

Whether the impugned order dated 04.08.2017 cancelling the pay scale benefits granted to the petitioners from their initial appointment dates and instead granting them from 31.08.2001 is sustainable in law, particularly when it was passed without affording any opportunity of hearing to the petitioners.

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Final Decision

The writ petition is allowed. The impugned order dated 04.08.2017 is quashed and set aside. The respondents are at liberty to pass a fresh order after giving reasonable opportunity of hearing to the petitioners. No order as to costs.

Law Points

  • Natural justice
  • opportunity of hearing
  • cancellation of benefits without notice
  • pay scale fixation
  • daily wage employees
  • regularization
  • Article 226 of Constitution of India
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Case Details

2026 LawText (BOM) (01) 109

Writ Petition No.10607 of 2017

2026-01-22

Kishore C. Sant, Sushil M. Ghodeswar

Shri Vilas M. Humbe for petitioners, Shri B.V. Virdhe for respondent Nos.1 to 4/State, Smt. Rani Bharukha-Bora h/f Shri S.S. Bora for respondent No.5

Sahebrao S/o Sheshrao Pawar, Dnyanoba S/o Gyanoji Late, Prakash S/o Balasaheb Kulkarni

The State of Maharashtra, The Directorate of Municipal Administration, The Regional Directorate of Municipal Administration, The Collector, The Commissioner, Municipal Corporation

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the order dated 04.08.2017 cancelling the pay scale benefits granted to the petitioners.

Remedy Sought

Quashing and setting aside the impugned order dated 04.08.2017 and restoration of the earlier order dated 11.06.2009 granting pay scale from initial appointment.

Filing Reason

The petitioners' pay scale benefits from their initial appointment dates were cancelled by the Municipal Commissioner without any opportunity of hearing.

Previous Decisions

Earlier writ petitions (No.3457/1990, 3603/1990, 3100/1990) were disposed of on 10.01.2002 with direction that terms of employment be governed by conditions applicable to regular employees. An order dated 11.06.2009 granted pay scale from initial appointment, which was later cancelled by the impugned order.

Issues

Whether the impugned order dated 04.08.2017 cancelling the pay scale benefits from initial appointment and granting from 31.08.2001 is sustainable without affording opportunity of hearing. Whether the principles of natural justice were violated in passing the impugned order.

Submissions/Arguments

Petitioners argued that the impugned order was passed without any notice or opportunity of hearing, violating principles of natural justice. Respondents argued that the order was passed in the interest of administration and that the petitioners had no vested right to the pay scale from initial appointment.

Ratio Decidendi

An order cancelling benefits already granted to employees cannot be passed without affording an opportunity of hearing, as it violates the principles of natural justice. Such an order is unsustainable in law.

Judgment Excerpts

By this petition filed under Article 226 of the Constitution of India, the petitioners pray for quashing and setting aside the impugned order dated 04.08.2017 issued by respondent No.5/ Municipal Commissioner thereby, cancelling the order dated 11.06.2009 granting pay scale of Clerks to petitioner Nos.1 to 3 w.e.f. 03.01.1987, 30.08.1986 and 02.05.1986, respectively and instead, directing to give the said benefits w.e.f. 31.08.2001. The impugned order has been passed without giving any opportunity of hearing to the petitioners. Therefore, the impugned order cannot be sustained.

Procedural History

The petitioners were appointed as daily wage clerks in 1985-1986. Their services were terminated, leading to writ petitions in 1990. Interim orders restrained termination. Services were regularized w.e.f. 31.08.2001. Writ petitions disposed on 10.01.2002. On 11.06.2009, pay scale granted from initial appointment. On 04.08.2017, that order was cancelled. Present writ petition filed in 2017.

Acts & Sections

  • Constitution of India: Article 226
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