Writ Petition, High Court Bombay, Municipal Corporation, suspension, Model Standing Orders, Clause 32, unfair labour practice, limitation, industrial law
 18 Apr, 2026
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Municipal Corporation of Greater Mumbai vs. Suresh Rajaram Kadam

  Bombay High Court wp14102-2022
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Case Background

As per case facts, an employee was suspended after a criminal complaint, despite later being acquitted. A departmental inquiry followed, resulting in a fine and the suspension period being treated ...

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AGK

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

CIVIL APPELLATE JURISDICTION

WRIT PETITION NO.14102 OF 2022

1.The Municipal Corporation of

Greater Mumbai.

2.The Municipal Commissioner,

Mahapalika Building, Mahapalika

Marg, Mumbai 400 001

3.The Chief Engineer, Solid Waste

Management Department (SWMD),

The Municipal Corporation of Greater

Mumbai, 368, Luv Groovers,

Dr. Annie Besant Road, Worli,

Mumbai 400 018

4.Dy. Chief Officer (Enquiry),

Head Office, The Municipal 

Corporation of Greater Mumbai,

Head Office, Mumbai 400 001…  Petitioners

Vs.

Suresh Rajaram Kadam,

Jai Hind Coop. Housing Society,

422, Plot No.R No.21, Charkop,

Kandivali (West), Mumbai 400 067.…  Respondent

WITH

WRIT PETITION NO.2651 OF 2023

Suresh Rajaram Kadam,

Jai Hind Coop. Housing Society,

422, Plot No.R No.21, Charkop,

Kandivali (West), Mumbai 400 067.…  Petitioner

Vs.

1

ATUL

GANESH

KULKARNI

Digitally signed

by ATUL GANESH

KULKARNI

Date: 2026.04.18

12:12:45 +0530

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Municipal Corporation of Greater 

Mumbai, A body corporate, through

Municipal Commissioner, constituted

under the provisions of the Mumbai

Municipal Corporation Act, 1888,

having its office at Municipal Head Office,

Mahapalika Marg, CST, Mumbai 400 001…  Respondent

Mr.   S.N.   Pillai   with   Mr.   Santosh   Parad   for   the 

petitioner-MCGM   in   WP/14102/2022   &   for   the 

respondent in WP/2651/2023.

Mr. Prakash Devdas with Mrs. Vidula S. Patil for the 

petitioner in WP/2651/2023 & for the respondent in 

WP/14102/2022.

CORAM :AMIT BORKAR, J.

RESERVED ON :APRIL 16, 2026.

PRONOUNCED ON:APRIL 18, 2026

JUDGMENT:

1.Both the present writ petitions, instituted under Articles 226 

and 227 of the Constitution of India, seek to assail the order dated 

19 December 2019 passed by the Industrial Court at Mumbai in 

Complaint (ULP) No.110 of 2016. 

2.The facts and circumstances giving rise to the institution of 

the present writ petitions, as set out by the petitioner, are that one 

Suresh Kadam instituted a complaint alleging commission of unfair 

labour   practice   by   the   respondents,   namely   the   Municipal 

Corporation of Greater Mumbai, under Item 9 of Schedule IV of 

the Maharashtra Recognition of Trade Unions and Prevention of 

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Unfair Labour Practices Act, 1971 (for short, “the MRTU and PULP 

Act”).   It  is   the   case  of   the  complainant   that   he  came   to  be 

appointed by respondent No.1 in the Motor Shop Garage under the 

Executive Engineer, Transport (City), with effect from 5 January 

1987, and was thereafter promoted to the post of Fitter Grade II at 

Worli Garage with effect from 1 December 1994. Respondent No.1 

is stated to be a Corporation constituted under the provisions of 

the Mumbai Municipal Corporation Act, 1888, whereas respondent 

Nos.2 and 3 are the Chief Executive and Chief Engineer (Solid 

Waste Management), respectively. 

3.According   to   the   complainant,   respondent   No.3   illegally 

placed him under suspension with effect from 23 October 2008. It 

is his case that prior thereto, on 16 October 2008, he had been 

arrested by the police in connection with a complaint lodged by 

one of his co-workers at Borivali Police Station, though he was 

released on bail on the very same day. The complainant asserts 

that in the criminal proceedings arising out of the said complaint, 

he was ultimately acquitted by the Court of the Metropolitan 

Magistrate, 26th Court, Borivali, by judgment and order dated 18 

September   2014.   It   is,   therefore,   his   contention   that   the 

suspension imposed upon him from 23 October 2008 was illegal 

and without lawful authority. 

4.It is further the case of the complainant that during the 

subsistence of his suspension, the respondents issued a charge-

sheet dated 27 April 2011. According to him, the said charge-sheet 

was not issued in conformity with the Model Standing Orders 

applicable to respondent No.1 establishment. The complainant 

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alleges   that   false   charges   were   levelled   against   him   and   a 

departmental enquiry came to be conducted, pursuant to which 

the Enquiry Officer submitted his findings on 27 March 2012. It is 

his   grievance   that,   despite   the   conclusion   of   the   enquiry,  no 

punishment was imposed upon him till 27 February 2016 and he 

continued to remain under suspension even after his acquittal in 

the   criminal   proceedings.   The   complainant   further   states   that 

thereafter, by order dated 3 November 2012, the respondents 

imposed   upon   him   the   punishment   of   fine   in   the   sum   of 

Rs.5,000/-. Subsequently, by another order dated 8 January 2016, 

the period of suspension was directed to be treated as leave due. 

According to the complainant, the aforesaid actions amount to 

imposition of  two  separate  punishments  for the same alleged 

misconduct.   It  is   his  contention  that  the   respondents   had  no 

authority either to suspend him, or to impose a fine, or to direct 

that   the   suspension   period   be   treated   as   leave   due.   The 

complainant, therefore, asserts that the said acts and omissions on 

the part of the respondents constitute unfair labour practice under 

Item 9 of Schedule IV of the MRTU and PULP Act, 1971, and on 

that basis has challenged the orders dated 3 November 2012 and 8 

January 2016 in the complaint proceedings. 

5.Upon service of notice, the respondents appeared in the 

proceedings and filed their written statement below Exhibit C-4. In 

the said written statement, the respondents denied all adverse 

allegations levelled by the complainant. It is their stand that the 

actions taken by them were strictly in accordance with law and 

that no unfair labour practice whatsoever has been committed by 

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them.   A   preliminary   objection   has   also   been   raised   that   the 

complaint is barred by limitation. On merits, the respondents 

contend that while the complainant was on duty at Grih Garage on 

16 October 2008, he assaulted one Mohan Dhanawade, who was 

working in the same garage, by means of an iron rod and thereby 

caused grievous injuries to him. Consequently, a complaint came to 

be lodged against the complainant at Borivali Police Station vide 

C.R. No.413 of 2008 for offences punishable under Sections 323, 

324 and 504 of the Indian Penal Code. It is stated that the 

complainant was produced before the Metropolitan Magistrate for 

remand and was thereafter released on bail upon furnishing bail in 

the   sum   of   Rs.3,000/-.   The   respondents   admit   that   the 

complainant was acquitted in the said criminal proceedings by 

judgment dated 18 September 2014. It is, however, their case that 

pending departmental enquiry, the complainant was placed under 

suspension with effect from 23 October 2008 and such suspension 

was subsequently revoked with effect from 18 June 2011 by office 

order dated 21 June 2011. According to the respondents, while 

under suspension, the complainant was subjected to departmental 

enquiry in accordance with the applicable Service Rules, and he 

participated in the said enquiry without raising any objection. 

Since the charges levelled against him were proved in the enquiry, 

punishment order dated 3 November 2012 came to be passed 

imposing   a   fine   of   Rs.5,000/-   upon   him   for   the   misconduct 

established against him. 

6.In so far as the period of suspension from 23 October 2008 

to 18 June 2011 is concerned, the respondents contend that a 

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decision was taken in accordance with Rule 75(3) of the Municipal 

Service Regulations to treat the said period as leave due. It is their 

case that since the complainant was acquitted in the criminal 

proceedings by extending to him the benefit of doubt, the period 

of suspension was not liable to be regularised or condoned. The 

respondents, therefore, maintain that the action taken by them is 

just, legal and proper and does not warrant any interference. 

7.Mr.   Pillai,   learned   counsel   appearing   on   behalf   of   the 

petitioner, submitted that Clause 32 of the Model Standing Orders, 

which provides that the said Standing Orders shall not operate in 

derogation of the provisions of any other law for the time being in 

force, has not been taken into consideration by the Coordinate 

Benches   of   this   Court   while   deciding   the   matters   of  

Sitaram 

Tukaram Walunj vs. Municipal Corporation of Greater Mumbai

 in 

Writ Petition No.8711 of 2007 decided on 15 April 2008 and 

Municipal Corporation of Greater Mumbai and Others vs. Smt. 

Nilima Sunil Nadkarni

 in Writ Petition No.5077 of 2012 decided 

on 4 March 2012. 

8.Inviting attention to the Industrial Employment Standing 

Orders   prevailing   in   various   other   States,   learned   counsel 

submitted that no provision analogous to Clause 32 of the Model 

Standing Orders applicable in the State of Maharashtra is found in 

the   Standing   Orders   of   such   other   States.   He   further   invited 

attention to Clause 32 of the U.P. Industrial Employment Model 

Standing Orders and submitted that even the said provision is 

materially distinct from Clause 32 of the Model Standing Orders 

applicable in the State of Maharashtra. He further submitted that 

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in so far as the punishment of fine of Rs.5,000/- is concerned, the 

same had been imposed in the years 2012 and 2016, whereas the 

complaint came to be instituted by the respondent only in the year 

2016. According to him, in the absence of any prayer seeking 

condonation of delay, or any sufficient explanation for not assailing 

the imposition of the said punishment at the relevant point of 

time,   the   complaint,   to   that   extent,   was   clearly   barred   by 

limitation.   It   was,   therefore,   contended   that   the   impugned 

judgment and order, insofar as it holds that in the absence of a 

specific provision in the Model Standing Orders the petitioner has 

no authority to suspend a workman, deserves to be quashed and 

set aside. 

9.Per contra, Mrs. Vidula Patil, learned counsel appearing for 

the respondent, submitted that this Court has consistently taken 

the   view   that   the   Model   Standing   Orders   govern   the   service 

conditions   of   the   employees   of   the   petitioner   Municipal 

Corporation. She submitted that the Industrial Court has rightly 

held that the provisions of the Industrial Employment (Standing 

Orders) Act would prevail over the provisions of the Municipal 

Corporation Act in matters relating to service conditions. Placing 

reliance upon the judgment of this Court in  

Sitaram Tukaram 

Walunj

 (supra), learned counsel for the respondent submitted that 

in the absence of any enabling provision in the Model Standing 

Orders   authorising   suspension  of   an   employee   merely   on   the 

ground of registration of a criminal offence against him, or on 

account of his being taken into custody, such employee could not 

have been placed under suspension. She further submitted that the 

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finding recorded by the Industrial Court in Part I holding the 

enquiry to be fair and proper cannot be sustained, particularly 

when the Industrial Court itself has observed that there exists no 

provision in the Model Standing Orders permitting suspension of 

an employee merely because a criminal case has been registered 

against him. According to her, once the very foundation of the 

action is found to be legally unsustainable, the issue framed in Part 

I   ought   necessarily   to   have   been   answered   in   favour   of   the 

respondent. She further submitted that although the punishment 

of fine of Rs.5,000/- was imposed in the year 2012, the said 

punishment was in fact given effect to only in the year 2016 by 

deduction of the said amount from the salary payable to the 

respondent.   It   was,   therefore,   submitted   that   Writ   Petition 

No.14102 of 2022 deserves to be dismissed, whereas Writ Petition 

No.2651   of   2023   challenging   the   findings   recorded   in   Part   I 

deserves to be allowed. 

REASONS AND ANALYSIS:

10.Having   heard   the   learned   advocates   appearing   for   the 

respective parties at considerable length, and having carefully 

perused the pleadings, documentary material, and the impugned 

order placed on record, I find that the principal contention arising 

for determination in the present proceedings revolves around the 

scope,   meaning   and   legal   effect   of   Clause   32   of   the   Model 

Standing Orders and the consequences which legally flow from its 

interpretation. The petitioner has strenuously contended that the 

earlier decisions of this Court rendered in the matters of 

Sitaram 

Tukaram Walunj

 and Smt. Nilima Sunil Nadkarni do not lay down 

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the correct legal position for the reason that the said judgments 

have not specifically adverted to or considered Clause 32 of the 

Model Standing Orders while deciding the question of suspension. 

It is thus urged that those precedents should not be treated as 

binding in the present case. On the contrary, the respondent has 

submitted   that   Clause   32   neither   enlarges   nor   creates   any 

disciplinary   authority   in   favour   of   the   employer,   but   merely 

preserves rights and obligations otherwise flowing from law or pre-

existing service arrangements. 

11.Clause 32 of the Model Standing Orders reads thus:

“Nothing contained in these Standing Orders shall operate in 

derogation of any law for the time being in force or to the 

prejudice of any right under a contract of service, custom or 

usage or an agreement, settlement or award applicable to 

the establishment.”

12.In my considered opinion, Clause 32 cannot be read as a 

source   of   disciplinary   or   administrative   power.   The   language 

employed therein indicates that it is merely in nature of a saving 

provision. The clause specifically provides that nothing contained 

in the Standing Orders shall operate in derogation of any law for 

the   time   being   in   force   or   prejudice   any   right   arising  under 

contract   of   service,   custom,   usage,   settlement,   agreement   or 

award.   Such   phraseology   preserves   existing   rights   and   legal 

provisions. It does not confer any fresh power upon the employer 

to take disciplinary measures, including suspension, where such 

power is otherwise not independently traceable to any statutory 

provision,   rule,   regulation,   or   binding   condition   of  service.   A 

saving clause, by settled principles of interpretation, saves what 

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already exists; it does not create what otherwise never existed.

13.The argument advanced on behalf of the petitioner that the 

Industrial   Court   failed   to   consider   Clause   32   and   thereby 

committed error cannot be accepted as answer to the complaint 

raised by the respondent-workman. Even if Clause 32 is read in its 

entirety,   the   conclusion   would   remain   unaltered.   The   clause 

recognizes that if any law, service rule, agreement, or enforceable 

condition   grants   a   right   or   imposes   an   obligation,   then   the 

Standing Orders cannot be interpreted so as to destroy the same. It 

is   thus   declaratory   in   nature.   Suspension   is   serious   service 

consequence   affecting   the   civil  rights   and   emoluments   of  the 

employee. Therefore, the power to suspend must be  shown from a 

statutory provision, service regulation, certified standing order, or 

lawful contractual term. In the present matter, despite repeated 

opportunity, no specific provision has been demonstrated before 

this   Court   by   the   petitioner   conferring   such   authority   in  the 

standing orders. In service jurisprudence, powers affecting rights 

of employees must have legal source. 

14.The   further   reliance   placed   by   the   petitioner   upon   the 

standing orders prevailing in other States and the comparative 

reference made to the U.P. Industrial Employment Model Standing 

Orders also does not advance the petitioner’s case. In my view, 

such comparative exercise is of little assistance while deciding the 

controversy in hand. Merely because the language of standing 

orders in another State may differ, or because similar clause may 

or may not be found elsewhere, cannot determine the legal rights 

of  parties  governed  by   the  Model Standing  Orders  applicable 

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within the State of Maharashtra. The issue before this Court is not 

what other State legislatures or authorities have chosen to provide 

in their respective service frameworks, but whether under the 

service regime binding upon the petitioner-establishment, there 

exists   sanction   for   suspension   in   the   facts   of   the   case.   The 

comparison with the U.P. Standing Orders does not establish that 

Maharashtra   Model   Standing   Orders   impliedly   confer   any 

suspension power. In fact, presence of Clause 32 in Maharashtra 

rather reinforces the respondent’s submission that the clause is 

preservative of rights otherwise flowing from legal source and does 

not permit the employer to import into the Standing Orders a 

power which is not provided. 

15.In  Municipal Corporation of Greater Mumbai v. Mumbai 

Mahanagarpalika Karyalayeen Karmachari Sanghatana

, a learned 

Single Judge of this Court, while deciding by order dated 21 

September 2017, has taken a view that the provisions contained in 

the Industrial Employment (Standing Orders) Act and the Model 

Standing Orders framed thereunder would have overriding effect 

over the provisions of the Municipal Corporation Act as well as the 

Municipal Service Rules, Regulations and even the Manual of 

Departmental Enquiries. This finding is based upon the scheme of 

the enactments. The Standing Orders Act is a special legislation 

enacted with a specific object to regulate service conditions of 

workmen in industrial establishments in a uniform and binding 

manner. On the other hand, the Municipal Corporation Act and the 

service rules framed thereunder are general in nature, dealing with 

administration of the Corporation and its employees at large. It is a 

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settled principle that where there is a conflict between a special 

law and a general law, the special law must prevail. The learned 

Judge rightly held that even if the Corporation has framed its own 

rules or departmental manuals, such provisions cannot override or 

dilute the statutory mandate of the Standing Orders Act.  Thus, the 

ratio of this judgment supports the view that the field relating to 

service conditions of workmen is already occupied by the Standing 

Orders, and any inconsistent provision must give way.

16.These very principles came to be examined again in the case 

of  

M.C.G.M. v. Madhusudan S. Kanth, where another learned 

Single Judge of this Court, by order dated 13 December 1990, 

reaffirmed the same legal position. The learned Judge reiterated 

that the Model Standing Orders are applicable to the Municipal 

Corporation and that they would prevail over the Corporation’s 

Service  Regulations  while conducting  a domestic enquiry. The 

reasoning   appears   to   proceed   on   the   footing   that   domestic 

enquiries,   which   directly   affect   the   rights   and   livelihood  of 

workmen, must strictly adhere to the procedures prescribed under 

the Standing Orders. If the Corporation were permitted to rely on 

its own service regulations in disregard of the Standing Orders, it 

would defeat the very purpose for which the Standing Orders Act 

was enacted, namely, to ensure uniformity, certainty, and fairness 

in service conditions. 

17.The same learned Single Judge, in yet another decision in 

Municipal Corporation of Greater Mumbai v. Dr. Shivajirao T. 

Kawale

,   by   order   dated   17   January   2011,   has   once   again 

considered   the   issue   and   has   rejected   the   contention   of  the 

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Corporation that its Municipal Rules, which permitted imposition 

of a particular punishment, would prevail even if such punishment 

was not contemplated under the Model Standing Orders. The 

Court has taken a firm view that where the Standing Orders do not 

authorise a particular form of punishment, the Corporation cannot 

resort to its own rules to impose such punishment. If the Standing 

Orders   are   to   prevail,   then   they   must   prevail   in   substance. 

Allowing the Corporation to impose punishments not sanctioned 

by the Standing Orders would amount to defeating the statutory 

scheme. This line of reasoning supports the conclusion that the 

Standing Orders form the governing code, and any action taken 

outside them cannot be sustained in law.

18.In   the   case   of  Sitaram   Tukaram   Walunj   v.   Municipal 

Corporation  of   Greater  Mumbai

,   decided   on   15   April   2008, 

another learned Single Judge of this Court has held that there is no 

doubt that as between the Municipal Corporation Act and the 

Industrial Employment (Standing Orders) Act, 1946, it is the latter 

which would govern the service conditions of workmen to whom it 

applies. The learned Judge has taken into account that once the 

Standing   Orders   become   applicable   to   an   establishment,   they 

attain   binding   force   akin   to   statutory   conditions,   and   neither 

employer nor employee can act contrary to them. Therefore, even 

if the Municipal Act or the rules framed thereunder provide certain 

powers to the Corporation, such powers cannot be exercised in a 

manner inconsistent with the Standing Orders. This judgment thus 

lays   down   a   guiding   principle   that   the   source   of   power   for 

regulating   service   conditions   must   be   traced   to   the   Standing 

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Orders. 

19.The judgment of this Court in Sitaram Tukaram Walunj also, 

in my considered view, cannot be disregarded merely because the 

petitioner asserts that Clause 32 was not discussed therein. It is 

well settled that a judgment does not lose its precedential value 

merely because every statutory provision was not quoted therein, 

provided the principle decided therein remains directly applicable. 

The ratio laid down in the said judgment continues to hold field 

and   is   consistent   with   settled   service   law   jurisprudence.  The 

Industrial Court, while relying upon the said decision, has correctly 

examined the substance of the matter. The Industrial Court has 

returned a finding, based on appreciation of the record, that the 

suspension in present matter was occasioned because criminal 

complaint had been registered against the respondent and not 

because of any standing order authorizing such suspension. Such 

factual finding is borne out by the material available and no 

perversity   therein   is   demonstrated.   Once   the   very   source  of 

authority to suspend is not shown, the suspension order cannot 

survive   merely   because   the   employer   considered   such   course 

administratively desirable.

20.In so far as the disciplinary enquiry is concerned, I am 

unable to accept the submission of the respondent that the enquiry 

itself stood vitiated because suspension was unlawful. The material 

on record prima facie indicates that departmental enquiry was 

conducted,   opportunity   of   participation   was   afforded   to   the 

workman, and findings were ultimately rendered by the Enquiry 

Officer. Thus, on procedural aspect, the enquiry appears to have 

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proceeded in accordance with required form. However, that by 

itself does not conclude the controversy in favour of the petitioner. 

It is settled that even if procedural fairness is maintained in 

conduct of enquiry, that cannot cure a defect going to root of 

jurisdiction.   If   the   suspension   and   consequential   initiation   of 

process is without legal sanction, then mere procedural propriety 

in   enquiry cannot sanctify illegality. The Industrial Court was 

therefore justified in examining legality of enquiry process and 

legality   of   suspension   power.   Both   questions   are   conceptually 

distinct. A procedurally fair enquiry may exist, yet the action 

preceding it may still fail if undertaken without lawful authority.

21.Likewise, the order directing that the suspension period be 

treated   as   leave   due   cannot   independently   survive   once   the 

underlying   suspension   itself   is   found   to   suffer   from   want   of 

authority.   If   suspension   is   unauthorized,   then   subsequent 

adjustment of that period as leave due also becomes vulnerable 

unless lawful justification is shown. No independent basis has been 

satisfactorily demonstrated before this Court for treating the said 

period as leave apart from the suspension order itself. Therefore, 

once the foundation fails, the consequential order must ordinarily 

fail with it.

22.The petitioner has further contended that the complaint 

itself was barred by limitation, at least in so far as challenge to 

punishment of Rs.5,000/- is concerned, because the punishment 

order was originally passed in the year 2012, whereas complaint 

was instituted in the year 2016. This submission, in my opinion, 

carries   force   and   deserves   acceptance.   Undoubtedly,   where  a 

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litigant seeks to challenge an order passed years earlier, and no 

explanation is offered for delayed approach, the Court cannot 

ignore the limitation prescribed. Law of limitation is founded on 

public   policy   to   ensure   finality   in   legal   proceedings.  The 

respondent has contended that though punishment order may 

have   been   passed   earlier,   actual   monetary   deduction   and 

implementation thereof took place only in the year 2016, when the 

amount was deducted from salary. If that be so, then it may not be 

entirely correct to hold that cause of action arose only on date of 

original punishment order. Where adverse financial consequences 

are actually inflicted subsequently, the cause of grievance may 

continue or revive when such implementation takes place. Thus, 

while challenge to the original 2012 order is barred by limitation.

23.The challenge to the punishment order dated 3 November 

2012, whereby a fine of Rs.5,000/- came to be imposed upon the 

respondent-workman,   is   held   to   be   barred   by   limitation.   The 

complaint, in so far as it seeks to assail the said punishment order, 

having been instituted in the year 2016 without any application for 

condonation of delay or sufficient cause shown for such belated 

challenge, cannot be entertained in law. The Industrial Court, to 

that extent, committed an error in entertaining and adjudicating 

upon the validity of the said punishment.

24.Taking an overall and cumulative view of the matter, I am of 

considered opinion that the Industrial Court committed no error in 

holding that the petitioner had no lawful authority to suspend the 

respondent-workman  merely  because criminal  proceedings   had 

been initiated against him, in absence of any express enabling 

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provision in the Model Standing Orders or any other binding 

service rule. No perversity, patent illegality, or jurisdictional error is 

demonstrated in the impugned findings. The petitioner has failed 

to make out any case warranting interference in writ jurisdiction. 

The principal challenge raised in the writ petitions, therefore, must 

fail.

25.In view of the foregoing discussion and for the reasons 

recorded hereinabove, the following order is passed:

(i)  The writ petitions are partly allowed;

(ii)  The impugned judgment and order dated 19 December 

2019 passed by the Industrial Court, Mumbai in Complaint 

(ULP) No.110 of 2016 is quashed and set aside to the limited 

extent   it   interferes   with   the   punishment   order   dated   3 

November 2012 imposing fine of Rs.5,000/-;

(iii)  It is held that the challenge to the said punishment 

order dated 3 November 2012 is barred by limitation and 

could not have been entertained;

(iv)  The   impugned   judgment   and   order,   in   all   other 

respects,   including   the   findings   relating   to   illegality  of 

suspension   and   consequential   treatment   of   suspension 

period, is upheld;

(v)  Rule is made partly absolute in the aforesaid terms.

(vi)  There shall be no order as to costs.

(AMIT BORKAR, J.)

17

Description

Bombay High Court Delivers Key Ruling on Model Standing Orders and Employee Suspension India

The Bombay High Court recently delivered a significant ruling concerning the application of Model Standing Orders and the authority for employee suspension India, a case now prominently featured on CaseOn. This judgment, emerging from the Civil Appellate Jurisdiction in Writ Petition No. 14102 of 2022 and Writ Petition No. 2651 of 2023, meticulously examines the interplay between various labour laws and service regulations, providing crucial clarity for employers and employees alike regarding disciplinary actions and the authority to suspend.

Introduction to the Case

The petitions before the Bombay High Court stemmed from a challenge to an order dated December 19, 2019, passed by the Industrial Court at Mumbai in Complaint (ULP) No. 110 of 2016. This dispute involved the Municipal Corporation of Greater Mumbai (MCGM) and one of its employees, Suresh Rajaram Kadam. Kadam had filed a complaint alleging unfair labour practice by MCGM, specifically concerning his suspension and subsequent punishments.

The Core Issues

The High Court was tasked with resolving several critical legal questions:

Issue 1: Legality of Employee Suspension Without Express Provision

Could the Municipal Corporation of Greater Mumbai suspend an employee solely on the ground of a criminal complaint being registered against them, in the absence of an explicit provision for such suspension in the applicable Model Standing Orders?

Issue 2: Validity of Treating Suspension Period as Leave Due

If the initial suspension was found unlawful, could the subsequent order directing the suspension period to be treated as 'leave due' independently survive?

Issue 3: Limitation for Challenging a Fine Imposed Earlier but Implemented Later

Was the employee's challenge to a fine of Rs. 5,000/-, imposed in 2012 but only deducted from his salary in 2016, barred by the law of limitation, given that the complaint was filed in 2016 without seeking condonation of delay?

The Governing Legal Rules

The Court's analysis relied on a careful interpretation of several legal frameworks:

Model Standing Orders & Clause 32

Central to the petitioners' argument was Clause 32 of the Model Standing Orders, which states: "Nothing contained in these Standing Orders shall operate in derogation of any law for the time being in force or to the prejudice of any right under a contract of service, custom or usage or an agreement, settlement or award applicable to the establishment." The petitioners contended that this clause preserved their power to suspend an employee under other laws or service conditions.

Industrial Employment (Standing Orders) Act, 1946

This Act is a special legislation designed to regulate service conditions for workmen in industrial establishments, ensuring uniformity and binding rules. The question arose whether this special law would prevail over general municipal laws or service rules.

Precedential Value of High Court Rulings

The Court considered previous judgments, including Sitaram Tukaram Walunj vs. Municipal Corporation of Greater Mumbai, Municipal Corporation of Greater Mumbai and Others vs. Smt. Nilima Sunil Nadkarni, Municipal Corporation of Greater Mumbai v. Mumbai Mahanagarpalika Karyalayeen Karmachari Sanghatana, M.C.G.M. v. Madhusudan S. Kanth, and Municipal Corporation of Greater Mumbai v. Dr. Shivajirao T. Kawale. These precedents established the principle that Model Standing Orders, once applicable, have statutory force and prevail over general service regulations when there is a conflict concerning service conditions for workmen.

Principle of Limitation

The law of limitation, founded on public policy, dictates a time frame within which legal actions must be initiated. The Court had to determine when the cause of action arose for challenging the fine – at its imposition or its actual implementation.

Detailed Analysis by the High Court

Interpreting Clause 32: A Saving Provision, Not a Power Grantor

The High Court unequivocally held that Clause 32 of the Model Standing Orders is merely a "saving provision" and not a source of disciplinary or administrative power. It preserves existing rights and legal provisions but does not confer new powers, such as the authority to suspend, unless such power is independently traceable to a statutory provision, rule, regulation, or binding condition of service. The Court noted that the Municipal Corporation failed to demonstrate any specific provision in the standing orders authorizing suspension simply because a criminal complaint was registered.

Overriding Effect of Standing Orders

The Court reaffirmed the established legal principle that the Industrial Employment (Standing Orders) Act, being a special law, has an overriding effect on the general provisions of the Mumbai Municipal Corporation Act and its service rules concerning workmen's service conditions. This means that if the Standing Orders do not authorize a particular action (like suspension in this manner), the Corporation cannot rely on its own rules to undertake it.

Illegality of Suspension and its Ramifications

Given the absence of legal authority for the suspension, the High Court concurred with the Industrial Court that the suspension imposed on Suresh Kadam was illegal. Consequently, the subsequent order treating the period of unlawful suspension as 'leave due' also failed, as its foundation (the suspension itself) was unauthorized. An unauthorized suspension cannot be cured by a later administrative adjustment.

Legal professionals navigating the complexities of labour law will find this judgment particularly insightful. To swiftly grasp its nuances, CaseOn.in offers 2-minute audio briefs, enabling quick analysis of specific rulings like this one and ensuring practitioners stay updated with critical legal developments.

Procedural Fairness vs. Jurisdictional Authority

While the departmental enquiry conducted against Kadam was found to be procedurally fair, the Court clarified that procedural propriety cannot rectify a fundamental defect in jurisdiction. An action initiated without legal sanction, such as an unauthorized suspension, remains illegal despite a fair subsequent enquiry. The enquiry's procedural validity is distinct from the legality of the preceding action.

The Question of Limitation for the Fine

Regarding the fine of Rs. 5,000/-, the High Court accepted the petitioner's argument that the challenge was time-barred. Although the employee argued that the cause of action revived upon the actual deduction of the fine from his salary in 2016, the Court ruled that the challenge to the original punishment order dated November 3, 2012, was indeed barred by limitation. The complaint was instituted in 2016 without an application for condonation of delay or sufficient cause shown for the belated challenge. Therefore, the Industrial Court erred in entertaining and adjudicating upon the validity of this particular punishment.

Conclusion and Court's Ruling

In light of its detailed analysis, the Bombay High Court passed the following order:

  • The writ petitions were partly allowed.
  • The impugned judgment and order of the Industrial Court dated December 19, 2019, was quashed and set aside to the limited extent that it interfered with the punishment order dated November 3, 2012, imposing a fine of Rs. 5,000/-.
  • It was explicitly held that the challenge to the fine imposed on November 3, 2012, was barred by limitation and should not have been entertained by the Industrial Court.
  • In all other respects, the impugned judgment and order, including the findings relating to the illegality of the suspension and the consequential treatment of the suspension period, was upheld.
  • The Rule was made partly absolute in these terms, with no order as to costs.

Why This Judgment is an Important Read for Lawyers and Students

This judgment is crucial for several reasons:

  • Clarity on Suspension Authority: It clearly demarcates that disciplinary powers, especially for serious actions like suspension, must have a clear legal source and cannot be assumed or derived from general saving clauses like Clause 32 of the Model Standing Orders.
  • Primacy of Special Laws: It reinforces the principle that special labour laws, such as the Industrial Employment (Standing Orders) Act, prevail over general service rules in matters pertaining to workmen's service conditions.
  • Distinction Between Procedure and Jurisdiction: The ruling highlights the critical difference between procedural fairness in an enquiry and the jurisdictional authority to initiate the underlying action. An otherwise fair enquiry cannot legitimize an action undertaken without proper legal sanction.
  • Application of Limitation: It provides valuable insight into the application of the law of limitation, particularly in cases where a punishment is imposed at one point but its monetary consequences are felt later.

For legal practitioners, understanding these nuances is vital for advising clients on disciplinary actions, challenging unfair labour practices, and navigating the complex interplay of various labour legislations. For students, it serves as an excellent case study in statutory interpretation, the hierarchy of laws, and service jurisprudence.

Disclaimer

All information provided in this article is for informational purposes only and does not constitute legal advice. While efforts have been made to ensure accuracy, readers are advised to consult with a qualified legal professional for advice pertaining to their specific circumstances.

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