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
14-wp.2690.2026.doc
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
14-wp.2690.2026.doc
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
N. S. Chitnis 3/7
14-wp.2690.2026.doc
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
N. S. Chitnis 5/7
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.
N. S. Chitnis 6/7
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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