Bombay High Court Considers Petition Against Industrial Court Order Directing Reinstatement of Badli Driver Under MRTU & PULP Act — Dispute Over Applicability of Certified Standing Orders to Badli Workers. The case examines whether removal from a badli panel for alleged absence constitutes termination requiring a domestic inquiry and whether a departmental circular can override statutory Standing Orders.

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

The writ petition arose from a dispute concerning the termination of a badli bus driver employed by BEST, the transport undertaking of the Municipal Corporation of Greater Mumbai. The respondent was engaged as a daily bus driver from 15 March 2010 and later empanelled as a badli driver from 17 June 2011. The employer, BEST, operated a demerit point system under a departmental circular dated 27 June 1975, whereby accumulation of 20 demerit points could lead to striking off a badli worker's name from the panel. The respondent was alleged to have remained absent from duties during August to November 2011 and earned 25 demerit points by February 2012. Consequently, his name was struck off the badli register by memorandum dated 28 February 2012. The respondent, along with the union, filed a complaint under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act), challenging the removal and seeking reinstatement with backwages. The Labour Court initially dismissed the complaint on 2 August 2014, holding that the respondent had no guaranteed right to employment. However, in revision, the Industrial Court reversed this decision on 15 September 2015, directing reinstatement with continuity of service and 50% backwages. The Industrial Court relied on the Certified Standing Orders, particularly Standing Orders 20, 21, and 23, to hold that the termination without a domestic inquiry was illegal. BEST then filed the present writ petition before the Bombay High Court, contending that the respondent was merely a badli worker not entitled to protection under the Standing Orders and that the departmental circular permitted such removal. The High Court framed two core issues: first, whether a badli driver could be removed without an inquiry under the Standing Orders, and second, whether Standing Order 26 (allowing termination with 24 hours' notice) applied independently or only after a full inquiry. The matter was heard and judgment reserved on 17 July 2026, but the provided text does not include the court's final reasoning or decision. The outcome thus remains unstated in the available extract.

Headnote

A) Labour Law - Badli Workers - Applicability of Standing Orders to Badli Employees - Certified Standing Orders (Standing Orders 20, 21, 23, 26) - The core issue was whether a badli driver fell within the definition of 'employee' under the Certified Standing Orders, thereby requiring a domestic inquiry before termination for alleged misconduct of absence. The Petitioner contended that the Respondent was merely a badli driver whose name was struck off the panel under a departmental circular, and thus no inquiry was necessary. The Respondent argued that the Standing Orders define 'employee' inclusively and that termination for misconduct mandates inquiry under Standing Orders 20 and 23. (Paras 5-8, 10)

B) Labour Law - Termination of Badli Worker - Effect of Standing Order 26 - Certified Standing Orders (Standing Order 26) - The question was whether Standing Order 26, which permits termination of a badli employee with less than two years' service by 24 hours' written notice, operates as a standalone provision or only after a full-fledged inquiry under Standing Orders 20, 21 and 23. The Petitioner invoked Standing Order 26 to justify the removal, while the Respondent maintained that an inquiry for misconduct was a condition precedent. (Paras 6, 8, 10)

C) Labour Law - Certified Standing Orders - Statutory Override over Employer's Circulars - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, Section 44; Certified Standing Orders - The issue considered was whether the departmental circular dated 27 June 1975, which prescribed demerit points and striking off names of badli workers, could override the Certified Standing Orders. The Respondent relied on Union of India v. K. Suri Babu to argue that Certified Standing Orders have a statutory mandate and prevail over internal circulars. (Paras 6, 8)

D) Labour Law - Reinstatement and Backwages - Revisional Jurisdiction of Industrial Court - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, Section 44 - The Industrial Court had set aside the Labour Court's dismissal and directed reinstatement with 50% backwages. The Petitioner challenged this order on the ground that the Industrial Court overstepped its revisional jurisdiction, acted like an appellate court, and without indicating any basis for awarding backwages. (Paras 3, 6)

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Issue of Consideration

Whether the services of a Badli Driver can be dispensed with without conducting inquiry under the Certified Standing Orders; Whether Standing Order No. 26 providing for termination of badli employees with 24 hours notice applies independently or only after conducting inquiry under Standing Order Nos. 20, 21 and 23

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Law Points

  • Certified Standing Orders have statutory force and override employer's circulars
  • badli workers included in definition of employee under Standing Orders
  • termination for misconduct of absence requires prior domestic inquiry
  • Standing Order 26 does not operate as standalone provision without inquiry
  • backwages awarded without basis oversteps revisional jurisdiction
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Case Details

2026 LawText (BOM) (07) 219

WRIT PETITION NO. 2607 OF 2016

2026-07-28

Sandeep V. Marne

Mahesh Shukla, Heena Shaikh, Siddhikesh Shinde for Petitioner; Ketan Dhavle for Respondent No.1

The Municipal Corporation of Greater Mumbai, through its Bombay Electric Supply and Transport Undertaking

Mr. Vidat Ashok Sonawane, BEST Jagrut Kamgar Sanghatana

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Nature of Litigation

Writ Petition under Article 226 of the Constitution of India challenging the Industrial Court's order setting aside the Labour Court's dismissal of a complaint under MRTU & PULP Act and directing reinstatement of a badli driver.

Remedy Sought

Petitioner-BEST seeks to quash the Industrial Court's order dated 15 September 2015 and to restore the Labour Court's order dated 2 August 2014 dismissing the complaint.

Filing Reason

Aggrieved by the Industrial Court's reversal and direction to reinstate the badli driver with 50% backwages, the petitioner filed the writ petition.

Previous Decisions

Labour Court dismissed Complaint (ULP) No. 142 of 2013 on 2 August 2014. Industrial Court allowed Revision Application (ULP) No. 138 of 2014 on 15 September 2015, setting aside the Labour Court order and directing reinstatement with continuity and 50% backwages.

Issues

Whether the services of a Badli Driver can be dispensed with without conducting an inquiry as required under the Certified Standing Orders? Whether Standing Order No. 26, providing for termination of badli employees with 24 hours' notice, applies independently or only after conducting a full-fledged inquiry under Standing Order Nos. 20, 21, and 23?

Submissions/Arguments

Petitioner argued that the Respondent was merely a badli driver with no guaranteed right to employment; his name was struck off under the departmental circular for accumulating demerit points, and this did not constitute termination requiring an inquiry under Standing Orders. Standing Order 26 permitted termination with 24 hours' notice for badli employees with less than two years' service. The Industrial Court overstepped its revisional jurisdiction and wrongly awarded backwages. Petitioner relied on Prakash Cotton Mills Pvt. Ltd. v. Rashtriya Mills Mazdoor Sangh and Shivdhari Kalu Singh v. Ruby Mills Ltd. to contend that badli workers are not regular employees and cannot claim reinstatement or compensation. Respondent contended that the alleged absence amounted to misconduct and, under Standing Orders 20, 21, and 23, a domestic inquiry was mandatory before termination. The definition of 'employee' in the Standing Orders includes badli workers. Standing Order 26 could only be invoked after inquiry. The departmental circular cannot override Certified Standing Orders, which have statutory force, as per Union of India v. K. Suri Babu. The Industrial Court correctly exercised its jurisdiction.

Judgment Excerpts

The case involves the issue as to whether the services of a Badli Driver can be dispensed with without conducting inquiry envisaged under the Standing Order. Also involved is the issue whether the Standing Order No. 26 providing for termination of badli employees with 24 hours of notice applies on a standalone basis or whether the same applies only after conducting full-fledged inquiry envisaged under Standing Order Nos. 20, 21 and 23. It is the case of the Petitioner-BEST that the case involves mere striking off the name of Respondent No.1 from the panel of Badli Drivers vide Memorandum dated 28 February 2012.

Procedural History

Respondent No.1, a badli bus driver, was removed from the panel on 28 February 2012 for accumulation of demerit points. On 17 July 2013, the Labour Court condoned delay in filing Complaint (ULP) No. 142 of 2013. Amendment to the complaint was allowed on 4 October 2013. After evidence, the Labour Court dismissed the complaint on 2 August 2014. The Industrial Court allowed Revision Application No. 138 of 2014 on 15 September 2015, directing reinstatement with 50% backwages. Petitioner filed the instant writ petition, which was admitted and stayed on 7 February 2017. Final hearing took place and judgment was reserved on 17 July 2026 and pronounced on 28 July 2026.

Acts & Sections

  • Mumbai Municipal Corporation Act, 1888:
  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 44
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