Bombay High Court
BALAJI INDUSTRIAL SECURITY AGENCY AND ANRversusJAGDISH BHOLANATH GUPTA
- Decided
- Disposal
- Partly Allowed
Holding
The High Court modified the Labour Court order, capping leave wages at 45 days, deducting the disputed bonus for 2014-15 and 2015-16, and fixing the respondent's total entitlement at Rs.72,000 with interest.
Summary
The petitioners, Balaji Industrial Security Agency, appealed a Labour Court order that granted the respondent, Jagdish Bholanath Gupta, leave wages and bonuses under an industrial dispute. The High Court examined the claim for 84 days of leave wages, noting that the Maharashtra Shops and Establishments Act limits leave accumulation to 45 days, capping the claim at approximately Rs.30,000. It also found the bonus awards for 2014-15 and 2015-16 untenable because the respondent's service start date was disputed and the bonus was only claimed in 2018, leading to a deduction of Rs.27,000. The court upheld the remaining amounts for earned wages and bonuses for 2016-18, totaling Rs.72,000, and ordered interest at 6% per annum. Consequently, the writ petition was partly allowed, modifying the Labour Court order and directing payment within six weeks.
Issues considered
- Whether the respondent is entitled to leave wages for 84 days despite the statutory cap of 45 days under the Maharashtra Shops and Establishments Act, 2017.
- Whether the bonus for the years 2014-15 and 2015-16 should be awarded given the dispute over the respondent's commencement of service.
- What is the correct quantum of total entitlement payable to the respondent, including interest.
Legislation cited
- Industrial Disputes Act, 1947 — s. 33-C(2)
Subjects
- Leave wages
- Statutory leave limit
- Bonus entitlement
- Industrial dispute
- Maharashtra Shops and Establishments Act
- Interest on decree
- Writ petition
Judgment
2026:BHC-AS:34673
Megha 38_wp_5656_2026
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.5656 OF 2026
M/s. Balaji Industrial Security Agency
and Anr. ...Petitioners
V/s.
Jagdish Bholanath Gupta ...Respondent
________________
Mr. Prithvi Raj Singh for the Petitioners.
Mr. Sanjay Kharat i/b. Ms. Megha Keluskar for Respondent No.2.
________________
CORAM: SANDEEP V. MARNE, J.
DATED: 20 AUGUST 2026.
P.C.:
1) By this Petition, Petitioner-employer has challenged order dated
1 December 2025 passed by the Presiding Officer, fourth Labour Court,
Mumbai, allowing Application (IDA) No.148 of 2018 filed by the
Respondent under Section 33-C(2) of the Industrial Disputes Act, 1947.
2) I have heard Mr. Singh, the learned counsel appearing for the
Petitioners, Mr.Kharat, the learned counsel appearing for Respondent
No.2 and have considered the submissions canvassed by them. I have
also gone through the findings recorded by the Labour Court and also
perused the records of the case filed alongwith the Petition.
Page No.1 of 3
20 August 2026
Megha 38_wp_5656_2026
3) It appears that the Respondent demanded leave wages of
Rs.58,153/- for 84 days. Apart from the fact that there is absolutely no
evidence of leave of 84 days being balance in the leave account, there
appears to be a statutory limit of 45 days for accumulation of leave under
Section 18(5) of the Maharashtra Shops and Establishments (Regulation
of Employment and Conditions of Service) Act, 2017. Under Section 18(5)
of the Act, every worker is permitted to accumulate earned leave upto
maximum 45 days. Therefore, the claim for leave wages is required to be
capped at 45 days, which approximately comes to Rs.30,000/-.
4) The Labour Court has also awarded bonus for the years 2014-15
(Rs.9,000/-), 2015-16 (Rs.18,000/-). However, there is great deal of
dispute between the parties about the date on which service of the
Respondent commenced. Salary was paid to the Respondent through
cheque only from 1 October 2016. On the basis of an I-card allegedly
issued on 20 August 2015, the Labour Court has presumed that the
Respondent has commenced service on 30 September 2014. Since the
period of service from 2014 to 2016 is disputed, it would not be
appropriate to award the claim for bonus for the years 2014-15 and
2015-16. Even otherwise, the Respondent never claimed bonus for the
said years while he was in service. It is directly by letter dated 23 October
2018 that the Respondent claimed bonus for the years 2014-15 and 2015-
16. In my view, therefore amount of Rs.27,000/- deserves to be deducted
towards bonus for the years 2014-15 and 2015-16.
Page No.2 of 3
20 August 2026
Megha 38_wp_5656_2026
5) So far as rest of the amounts are concerned, the same can be
retained since same relate to earned wages for August-2018 (Rs.18,000),
bonus for the years 2016-17(Rs.18,000/-) and 2017-18 (Rs.6,000/-).
6) Accordingly, total entitlement of the Respondent would only be
Rs. 72,000/- (Rs.30,000+18,000+18,000+6,000).
7) Accordingly, the order passed by the Labour Court dated 1
December 2025 is modified by directing the Petitioner to pay an amount
of Rs.72,000/- alongwith interest @6% per annum from the date of
application till realisation of the amount. The resultant amount shall be
paid to the Respondent within a period of six weeks.
8) Writ Petition is accordingly partly allowed and disposed of.
[SANDEEP V. MARNE, J.]
Signed by: Megha S. Parab
Page No.3 of 3
Designation: PA To Honourable Judge 20 August 2026
Date: 21/08/2026 20:38:20
Checking your session…