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Bombay High Court

MUMBAI EAST SUBURBAN DISTRICT LABOUR CO-OPERATIVE SOCIETIES SANGH LTDversusTHE STATE OF MAHARASHTRA THROUGH ITS MINISTRY OF COOPERTION

Decided
Disposal
DISPOSED OFF

Holding

The Court held that the Government’s clarified policy to allocate the 33:33:34 work‑allotment ratio on the basis of work valuation is to be applied for FY 2026‑27, and therefore disposed the petition.

Summary

The Mumbai East Suburban District Labour Co‑operative Societies Sangh Ltd. filed a writ petition seeking strict compliance with Government Resolutions dated 29 July 2021 and 28 February 2024 that mandate 33 % of public works be allotted to labour co‑operative societies. The core dispute was the interpretation of the phrase “33 % of the work” – whether it should be measured by the number of projects or by the monetary valuation of the projects. The Court directed the Public Works Department to clarify its stance and received an affidavit stating that earlier resolutions were interpreted on a “number of works” basis, but a meeting on 8 April 2026 chaired by the PWD Minister indicated a shift to a valuation‑based approach. The Court held that the clarified policy to allocate the 33:33:34 ratio on the basis of work valuation should be implemented for the financial year 2026‑27. Consequently, the petition was disposed.

Issues considered

  • Whether the phrase ‘33 % of the work’ in the Government Resolutions is to be interpreted on the basis of the number of works or the monetary valuation of the works
  • Whether the Court can direct the State to implement the newly clarified interpretation pending formal statutory amendment

Subjects

  • Labour Co‑operative Societies
  • Government Resolution
  • Public Works Department
  • Work allotment
  • Interpretation of policy
  • Ratio 33:33:34
  • Writ petition
  • Administrative law

Judgment

NISHA   Digitally signed by
        NISHA SANDEEP
SANDEEP CHITNIS
        Date: 2026.08.01
CHITNIS 15:47:38 +0530                                            14-wp.2690.2026.doc


                        IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                            ORDINARY ORIGINAL CIVIL JURISDICTION
                                WRIT PETITION NO.2690 OF 2026

                  Mumbai East Suburban District Labour
                  Co-operative Societies Sangh Ltd.
                  Through its Director, Sachin Hanwate
                  Having its office at Gala Nos.14 and 15
                  Canara Business Center
                  Behind Everest Building
                  Laxmibaug, Ghatkopar (East)
                  Mumbai – 400 075.                               ...Petitioner

                             Versus

                  1.   The State of Maharashtra
                       Through its Ministry of Cooperation
                       Marketing and Textile, Mantralaya
                       Mumbai.

                  2.   Maharashtra Housing Area and
                       Development Authority
                       Through Vice President
                       Having office at Grihanirman Bhavan
                       Kalanagar, Bandra (East)
                       Mumbai – 51.

                  3.   Slum Rehabilitation Authority (SRA)
                       Through Chief Executive Officer
                       Having office at Administrative Building
                       Anant Kanekar Marg
                       D-Block BKC, Naupada, Bandra (East)
                       Mumbai – 51.

                  4.   Executive Engineer (SRA)
                       Having office at Administrative Building


  N. S. Chitnis                                                                   1/7
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                      Anant Kanekar Marg
                      D-Block BKC, Naupada, Bandra (East)
                      Mumbai – 51.                                    ...Respondents

                Mr. Vaibhav Parshurami a/w Ms Trisha Choudhari and Mr. M. A.
                Chaudhari, for the Petitioner.

                Ms. Lavina Kriplani, A.G.P. for the State.

                Mr. P. G. Lad a/w Ms. Sayali Apte and Mr. Muralidharan Kalathil, for
                the Respondent No.2.

                Ms. Yashi Bhatt a/w Ms. Aarushi Yadav and Ms. Rutuja Shedge i/b
                Ms. Ravleen Sabharwal, for Respondent Nos. 3 and 4.

                                            CORAM: BHARATI DANGRE &
                                                  MANJUSHA DESHPANDE, JJ.

                                          DATE     : 27th JULY 2026

                ORAL JUDGMENT (Per Bharati Dangre, J.) :

                1.          The petition is filed by the Mumbai East Suburban District

                Labour Co-operative Societies Sangh Ltd., seeking strict compliance of

                the Government Resolutions dated 29 th July 2021 and 28th February

                2024, in its true letter and spirit. The petitioner make a grievance as

                regards non-adherence to the guidelines contained in the Resolutions,

                specifically while granting Labour Contracts to the Labour Co-

                operative Societies.



N. S. Chitnis                                                                          2/7
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                           Taking cognizance of the grievance of the petitioner, since

                we had an issue, as to what should be the interpretation of the policy

                decision contained in the two Government Resolutions and what

                should be the criteria applicable for allotment of 33% of work i.e.

                whether it should be work wise or dependent upon the valuation of

                the work to be allotted, since we noted that certain outer limits are

                prescribed for the work to be allotted to the Labour Co-operative

                Societies, we sought clarification from the Public Works Department

                by our order dated 2nd July 2026, when we expressed thus:-

                      “1.     The Mumbai East Suburban District Labour
                      Co-Operative Societies Sangh Ltd. is before us, by
                      raising a grievance about the allotment of work to the
                      Labour Co-operative Societies, and this claim no
                      stake against MHADA, reliance is placed upon the
                      policy decision of the Public Works Department
                      (PWD), reflected through various resolutions and
                      which the MHADA has followed. It is the contention
                      of the Petitioner that when it is a policy of the State
                      Government to allot 33% of the work to Labour Co-
                      operative Societies, then this should be interpreted as
                      33% of the valuation of work which is available in a
                      financial year and not the number of works.
                            We have heard the matter on more than one
                      occasion, and our attention is invited by the learned
                      counsel for the Petitioner to a communication
                      addressed by MHADA to the Petitioner on
                      26.02.2026 as regards its demand of allotment of

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                       33% of work, and it is clarified that in terms of the
                       Government Resolution, the percentage of work to be
                       allotted is not dependent upon the valuation of the
                       work, but it is to be determined on the basis of the
                       number of works.
                       2. Since the MHADA is following the policy of the
                       State Government, we expect the Public Works
                       Department for the State of Maharashtra to offer a
                       clarification to us, as to what is their interpretation of
                       the clause contemplating "33% of the work" to be
                       allotted to Labour Co-operative Societies.
                             We have appearance of learned AGP Ms Kriplani
                       represent the Government, and we requested her to
                       take instructions from the Public Works Department
                       and, if necessary, file a reply affidavit, setting out as to
                       what is the interpretation of the Public Work
                       Department of the criteria set out in Government
                       Resolution dated 27.09.2018 and 27.09.2021.
                             Let the copy of the affidavit be served in advance
                       upon the learned counsel for the Petitioner as well as
                       Mr. Lad, who represent the MHADA.
                             List on 27.07.2026.”


                2.          Today, we have before us an affidavit filed by the Deputy

                Secretary (Buildings), Public Works Department placed before us,

                which is affirmed on 17th July 2026 and the deponent of the affidavit

                in paragraphs 3 and 4 has stated as below:-

                       “ 3.   I say as per the Government Resolution of
                       Public Works Department dated 27/09/2018, the
                       works are to be allotted on the Total Number of
                       Works and not Amount of Work. I say that likewise as

N. S. Chitnis                                                                            4/7
                                                                    14-wp.2690.2026.doc


                      per the Government Resolution of Public Works
                      Department dated 27/09/2021, (incorrect date
                      27.09.2021), the works are to be allotted on the Total
                      Number of Works and not Amount of Work. I,
                      therefore, submit that this ratio of 33:33:34 is based
                      on the Number of Works available at any point of
                      time with the Tender inviting Authority.

                      4. I, however, wish to add that in a meeting dated
                      08.04.2026 under the Chairmanship of Hon'ble
                      Minister, Public Works Department at Mantralaya, it
                      was decided to move a proposal to apply this ratio of
                      33:33:34 on the Total Amount of Works instead of
                      Number of Works and this is presently under
                      consideration at the Mantralaya.”


                3.         The learned counsel for the petitioner has also placed

                before us the Minutes of the Meeting held on 8 th April 2026, which

                was chaired by the Hon’ble Minister, Public Works Department, when

                the request of the Labour Co-operative Societies for enhancing the

                benefits available to them was considered thread bare in the presence

                of the Secretary, Public Works Department as well as Secretary (Road),

                the Office Bearers of the Federation and the Superintendent Engineer,

                Public Works Department.

                           The decision taken in the said Meeting, as regards the

                proportion in which the work shall be allotted in the Government

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                                                                      14-wp.2690.2026.doc


                Resolution, which prescribed the allotment to be 33:33:34, it is

                recorded that the work to be allotted to Labour Co-operative Societies,

                unemployed Engineers and registered Contractors prescribed in the

                Government Resolution in the ratio of 33:33:34 shall be in accordance

                with the valuation of the work.

                            The said Minutes of the Meeting are taken on record and

                marked 'X' for identification.

                            The learned A.G.P. is under instructions to make a

                statement that the said decision is under implementation.



                4.          In our opinion, the Government Resolution already

                prescribe the ratio of 33:33:34 and when MHADA applied it based on

                the number of works and we sought clarification, the Public Works

                Department has also come up with a specific stand that it also

                considered the said clause as dependent upon the number of works,

                but now the directions are given to the effect that this allotment shall

                be in proportion of the amount involved in the said works which are

                available in a particular financial year.


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                                                                        14-wp.2690.2026.doc


                           In such a situation, in case if the government is desirous of

                issuing clarification, it may do so or else we expect that the

                clarification now coming up in presence of the Meeting chaired by the

                Hon'ble Minister, Public Works Department, as well as the Secretary of

                the Public Works Department, the same shall be implemented for the

                year 2026-2027 and the works which are to be allotted in this year

                shall be strictly in accordance with the decision taken in the Meeting

                dated 8th April 2026.

                           With this clarification, the writ petition is disposed of.



                MANJUSHA DESHPANDE, J.                       BHARATI DANGRE, J.




N. S. Chitnis                                                                           7/7


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