Gujarat High Court Directs Ahmedabad Municipal Corporation to Pay Arrears of Pay Difference to Employee in Permanency Benefits Case. Corporation Agrees to Pay Differential Amount as Per Rejoinder Affidavit, Failing Which Interest at 6% Per Annum Will Accrue.

High Court: Gujarat High Court In Favour of Prosecution
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Case Note & Summary

The petitioner, Rakesh Mahendrakumar Shah, filed a Special Civil Application under Article 226 of the Constitution of India before the Gujarat High Court against the Ahmedabad Municipal Corporation and another respondent. The petitioner sought a writ of mandamus declaring the action of the respondent authorities in granting permanency benefits from 2016 as illegal and directing them to confer such benefits with effect from 1990. The Court had earlier passed an order on 02.03.2026 noting non-payment of arrears of difference of pay by the respondents. The petitioner had placed on record the differential amount in a rejoinder affidavit. On 17.03.2026, the learned advocate for the respondent Corporation, Mr. H.S. Munshaw, stated under instructions that the Corporation was ready and willing to pay the differential amount as per the rejoinder affidavit. The Court recorded this statement and directed the Corporation to pay the amount within four weeks from the date of the order. It was further directed that if the amount was not paid within the stipulated time, the Corporation would be liable to pay interest at the rate of 6% per annum from the date of the order until actual payment. The petition was disposed of accordingly. The Court did not delve into the merits of the claim for permanency from 1990, as the limited issue of arrears was resolved by the Corporation's willingness to pay.

Headnote

A) Service Law - Permanency Benefits - Arrears of Pay - The petitioner sought a writ of mandamus directing the respondent Corporation to grant permanency benefits from 1990 instead of 2016 and to pay arrears of pay difference. The Court, after hearing, directed the Corporation to pay the differential amount as per the rejoinder affidavit within four weeks, failing which interest at 6% per annum would accrue. (Paras 1-7)

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Issue of Consideration

Whether the petitioner is entitled to arrears of pay difference from 1990 instead of 2016, and whether the respondent Corporation is liable to pay the differential amount.

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Final Decision

The Court directed the respondent Corporation to pay the differential amount as per the rejoinder affidavit within four weeks from the date of the order. If not paid within that time, the Corporation shall be liable to pay interest at the rate of 6% per annum from the date of the order until actual payment. The petition was disposed of accordingly.

Law Points

  • Writ of Mandamus
  • Article 226
  • Permanency benefits
  • Arrears of pay
  • Municipal Corporation
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Case Details

2026:GUJHC:20106

R/SPECIAL CIVIL APPLICATION NO. 18450 of 2018

2026-03-17

HONOURABLE MR. JUSTICE MAULIK J.SHELAT

2026:GUJHC:20106

MR GM JOSHI, SENIOR COUNSEL WITH MR VYOM H SHAH for the Petitioner(s) No. 1, MR HS MUNSHAW for the Respondent(s) No. 1,2

Rakesh Mahendrakumar Shah

Ahmedabad Municipal Corporation & Anr.

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Nature of Litigation

Writ petition under Article 226 seeking mandamus for permanency benefits and arrears of pay.

Remedy Sought

Petitioner sought declaration that grant of permanency from 2016 is illegal and direction to confer benefits from 1990, and payment of arrears.

Filing Reason

Non-payment of arrears of difference of pay by the respondent Corporation.

Previous Decisions

Court order dated 02.03.2026 noting non-payment and granting last chance.

Issues

Whether the respondent Corporation is liable to pay the differential amount of arrears as per the rejoinder affidavit.

Submissions/Arguments

Petitioner argued that arrears of pay difference were not paid. Respondent Corporation stated readiness to pay the differential amount as per rejoinder affidavit.

Ratio Decidendi

When a public authority agrees to pay a differential amount as per the petitioner's rejoinder affidavit, the Court can direct payment within a specified period, with interest for delay.

Judgment Excerpts

Mr.Munshaw, learned advocate for the respondent - Ahmedabad Municipal Corporation ... would state under the instructions that the Corporation is ready and willing to pay the differential amount as per the rejoinder affidavit. The Corporation is directed to pay the differential amount as per the rejoinder affidavit within a period of four weeks from today. If the amount is not paid within the stipulated time, the Corporation shall be liable to pay interest at the rate of 6% per annum from the date of this order till the actual payment.

Procedural History

The petition was filed in 2018. On 02.03.2026, the Court noted non-payment of arrears and granted a last chance. On 17.03.2026, the respondent Corporation stated readiness to pay, and the Court disposed of the petition with directions.

Acts & Sections

  • Constitution of India: Article 226
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