High Court Sets Aside Industrial Court's Interim Order in Wage Increment Dispute - Brihanmumbai Municipal Corporation's Policy Modification Upheld Against Employee Unions

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

The High Court allowed the writ petitions filed by Brihanmumbai Municipal Corporation challenging the Industrial Court's interim order that stayed the Corporation's circular discontinuing additional wage increments for employees obtaining LSG and LGS diplomas. The Court found that the Industrial Court had effectively granted final relief at the interim stage, which was impermissible. The Court held that the Corporation's policy modifications from 1967 to 2025 were administrative decisions made in exercise of policy discretion, and the discontinuation of additional increments did not constitute an unfair labour practice requiring notice under Section 9A of the Industrial Disputes Act, 1947. The Court emphasized that as a public employer, the Corporation had the authority to modify service conditions through policy decisions, and the balance of convenience favored allowing the Corporation to implement its revised policy pending final adjudication.

Headnote

The High Court of Judicature at Bombay -- Civil Appellate Jurisdiction -- heard Writ Petitions -- The Petitioners were Brihanmumbai Municipal Corporation and its officials -- The Respondents were Mumbai Mahanagar Palika Karyalayeen Karmachari Sanghatana and The Municipal Union -- The Court comprised Justice Amit Borkar -- The judgment was reserved on January 23, 2026 and pronounced on February 12, 2026 -- The Court set aside the Industrial Court's interim order dated December 11, 2025 -- The Industrial Court had stayed the Corporation's circular dated September 05, 2025 which discontinued additional increments for LSG and LGS diplomas -- The High Court held that the Industrial Court effectively granted final relief at interim stage -- The Court found that the Corporation's policy modifications were administrative decisions not requiring Section 9A notice -- The balance of convenience favored the Corporation as public employer -- No prima facie case was established for unfair labour practice

Issue of Consideration: The Issue of whether the Industrial Court erred in granting interim relief that effectively provided final relief by staying the Municipal Corporation's circular discontinuing additional wage increments for diploma qualifications

Final Decision

The High Court allowed the writ petitions, set aside the Industrial Court's interim order dated December 11, 2025, and held that the Corporation's circular dated September 05, 2025 discontinuing additional increments for LSG and LGS diplomas could operate pending final adjudication of the unfair labour practice complaint

2026 LawText (BOM) (02) 61

Writ Petition No. 12 of 2026 with Writ Petition (ST) No. 41402 of 2025

2026-02-12

Amit Borkar J.

2026:BHC-AS:7255

Mr. N.V. Bandiwadekar Senior Advocate with Mr. Santosh Parad for petitioners in WP/12/2026, Mr. Santosh Parad for petitioners in WPST/41402/2025, Mr. Prakash Devdas with Ms. Vidula Patil for respondent in WP/12/2026, Mr. Satyanarayan Hegde i/by Mr. V. Khemka for respondent in WPST/41402/2025

Brihanmumbai Municipal Corporation through Municipal Commissioner & Administrator Dr. Bhushan Gagrani or his Successor, Dr. Ashvini Joshi or her Successor Additional Municipal Commissioner (City), Kishor Gandhi Deputy Municipal Commissioner (General Administration)

Mumbai Mahanagar Palika Karyalayeen Karmachari Sanghatana, The Municipal Union

Nature of Litigation: Writ Petition challenging Industrial Court's interim order in unfair labour practice complaint

Remedy Sought

Petitioners sought quashing of Industrial Court's interim order dated December 11, 2025 that stayed Corporation's circular discontinuing additional increments

Filing Reason

Industrial Court granted interim relief staying Corporation's circular dated September 05, 2025 which modified policy on additional increments for LSG and LGS diplomas

Previous Decisions

Industrial Court allowed application at Exhibit U2, stayed circular dated September 05, 2025, directed continuation of earlier practice of granting additional increments

Issues

Whether the Industrial Court erred in granting interim relief that effectively provided final relief Whether discontinuation of additional increments required notice under Section 9A of Industrial Disputes Act, 1947 Whether the Corporation's policy modification constituted unfair labour practice

Submissions/Arguments

Industrial Court virtually granted final relief at interim stage which is impermissible -- Corporation's policy modifications were administrative decisions not requiring Section 9A notice -- Balance of convenience favored Corporation as public employer -- No prima facie case established for unfair labour practice

Ratio Decidendi

Interim relief should not grant final relief -- Administrative policy modifications by public employers do not automatically require Section 9A notice -- Balance of convenience in interim matters must consider public interest and employer's administrative discretion -- Prima facie case must be established for granting interim relief in labour disputes

Judgment Excerpts

The Industrial Court has virtually granted final relief at the interim stage, which is impermissible in law -- The grant of additional increments was a policy decision that could be modified by the Corporation -- No notice under Section 9A was required for such administrative policy changes

Procedural History

1967: Corporation resolved to grant additional increments for LSGD -- 1968: Standing Committee approved LGS Diploma increments -- 1975: Corporation sanctioned two increments for LGS Diploma -- 1984: Circular modified increment scheme -- 2009: Circular further modified -- August 2025: Proposal to discontinue increments approved -- September 05, 2025: Circular issued discontinuing increments -- December 11, 2025: Industrial Court granted interim relief staying circular -- February 12, 2026: High Court set aside Industrial Court's order

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