Created by Fuzzy Cloud

Bombay High Court

ASHOK LAXMAN DHIRDEversusAHMEDNAGAR MUNICIPAL CORPORATION, AHMEDNAGAR

Disposal
DISPOSED OFF

Holding

The petitioner is deemed to have become a permanent employee on 01‑07‑1974 and is entitled to pension benefits calculated from that date, rendering the Industrial Court's dismissal unsustainable.

Summary

The petitioner was appointed as a temporary clerk by Ahmednagar Municipal Corporation and, after completing 180 days of continuous service, became a deemed permanent employee in July 1974 under Industrial Court Award No. 431/1969. Despite this, the corporation granted permanency benefits only from 10 April 1978, and calculated his pension on that later date when he retired on 1 June 2007. The petitioner filed a ULP complaint which was dismissed by the Industrial Court, a decision later set aside by the High Court and remanded, after which the Industrial Court again dismissed the complaint. The petitioner argued that the award obliges automatic conferment of permanent status upon completion of the 180‑day period, and that the corporation, as a state instrumentality, cannot arbitrarily defer benefits. The respondent contended that permanency required a formal confirmation order and that the petitioner had accepted the 1978 date. The High Court held that the award’s language creates a deemed permanent status by operation of law from July 1974, and that the corporation must calculate pension and arrears from that date. Consequently, the Industrial Court’s order was quashed and the petitioner was awarded the differential pension and arrears with interest.

Issues considered

  • Whether the petitioner became a deemed permanent employee on completion of 180 days of continuous service in July 1974 under Award No. 431/1969.
  • Whether the corporation was entitled to defer the conferment of permanency benefits to 10 April 1978.
  • Whether the Industrial Court erred in dismissing the petitioner's complaint on the ground of lack of continuous service.

Subjects

  • pension
  • service benefits
  • industrial award
  • deemed permanent employee
  • continuous service
  • state instrumentality
  • writ petition
  • Industrial Court
  • arrears

Judgment

2026:BHC-AUG:33500



                                                                      26 WP No.6218.2015
                                               -1-

                     IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                BENCH AT AURANGABAD

                            WRIT PETITION NO. 6218 OF 2015

                                 ASHOK LAXMAN DHIRDE
                                        VERSUS
                     AHMEDNAGAR MUNICIPAL CORPORATION, AHMEDNAGAR
                                               ***
              Advocate for the Petitioner : Mr. Parag V. Barde
              Advocate for Respondent : Mr. Vinayak S. Bedre

                                               ***

                                CORAM : SACHIN S. DESHMUKH, J.
                                  Date : 27th July, 2026
              ORDER :-


              1.          The petitioner has assailed the judgment and order

              dated 23.01.2015 rendered by the learned Member, Industrial

              Court, Ahmednagar in Complaint (ULP) No. 68/2007, dismissing

              the petitioner's complaint, denying the claim for pensionary and

              service benefits by counting permanency from July 1974 instead of

              10.04.1978.



              2.          The   petitioner   was     appointed   by   the   respondent

              Corporation as a temporary clerk. The service conditions of the

              employees working under the respondent are governed by the

              awards, agreements, and settlements between the recognized

              Union and the management from time to time. In Reference (IT)
                                                               26 WP No.6218.2015
                                       -2-

No. 431/1969, an award was passed by the learned Industrial

Court and published in the Government Gazette on 13.02.1970,

which   entails    any    temporary      employee       upon    completion    of

continuous service of 180 days in the preceding year must be

considered a deemed permanent employee.



3.          Following the appointment, the petitioner completed

the required 180 days of continuous service so as to become                    a

permanent employee in the month of July 1974. The respondent,

however, conferred the actual benefits of permanency to the

petitioner on 10.04.1978. The petitioner continued to serve the

respondent - Corporation and ultimately retired from services upon

superannuation on 01.06.2007. At the time of his retirement, the

respondent computed and disbursed retiral and pensionary benefits

by   treating     his   date   of   initial    permanent     appointment      as

10.04.1978, ignoring the previous service rendered from July 1974

as a deemed permanent employee.



4.          Aggrieved by the same,                the petitioner presented

Complaint   (ULP)       No.    68/2007        before   the   Industrial   Court,

Ahmednagar on 01.09.2007. The Industrial Court dismissed the

complaint on 09.04.2013. This Court, however, in Writ Petition No.
                                                              26 WP No.6218.2015
                                       -3-

6694/2013,    set aside the dismissal by its judgment dated

10.02.2014    and    remanded      the       matter    back   for    an     afresh

consideration on merits.



5.           Following the remand, the Industrial Court, dismissed

the complaint. Being aggrieved, petitioner approached this Court.



6.           Mr. Barde, the learned counsel for the petitioner

submits   that    the     Industrial     Court    committed         error    while

misinterpreting     the   evidence       and     the   applicable      statutory

provisions. The industrial award obligates to confer permanency

upon the completion of 180 days of continuous service, which

cannot be deferred or defeated by the respondent. The finding of

the Trial Court in relation to the lack of continuous service is

contrary to the record. As such, prayed to allow the petition.



7.           Per contra, Mr. Bedre, the learned counsel for the

respondent - Municipal Corporation supported the order under

challenge submitting that the petitioner cannot claim the status of

permanency right after the completion of 180 days in absence of

order of confirmation. The respondent submits that the petitioner

accepted the permanency date of 10.04.1978 till retirement
                                                      26 WP No.6218.2015
                                 -4-

without raising protest. It is, therefore, submitted that the

complaint presented in the year 2007, challenging an arrangement

that was accepted is delayed one and the Industrial Court was

justified in dismissing the complaint.


8.          Upon considering the submissions of litigating sides and

perusing the material on record, it is evident that the language

employed in the award in Reference is once a temporary employee

completes 180 days of continuous service, the status of a deemed

permanent employee is conferred by operation of law. The

respondent, being a “state instrumentality” under Article 12,

cannot act arbitrarily to postpone these benefits to 10.04.1978

without any justification contrary to industrial award. The finding of

the Industrial Court that the petitioner failed to prove continuous

service is perverse, since the petitioner’s unblemished service

record from the year 1974 onwards remains unchallenged.


9.          It is a settled principle that pension is neither a bounty

nor a matter of grace; it is a right earned by long and dedicated

service. The wrong calculation and short-payment of pension occur

on the first of every month, giving rise to a continuous and

recurring cause of action.


10.         The petitioner was directly impacted by the incorrect
                                                         26 WP No.6218.2015
                                    -5-

calculation of his qualifying service when he retired on 01.06.2007.

That employee would be entitled to the dues as claimed from the

ate of entitlement, therefore, dismissing a legitimate retiral claim

purely on technicalities results in to failure of justice.


11.           Consequently,   the   impugned     judgment     and   order

passed by the Industrial Court is unsustainable and liable to be set

aside.


12.           In the view of the aforesaid findings, the present Writ

Petition is allowed.


13.           The impugned Judgment and Order dated 23.01.2015

passed by the learned Member, Industrial Court, Ahmednagar in

Complaint (ULP) No. 68/2007 is quashed and set aside.


14.           The respondent Ahmednagar Municipal Corporation

shall calculate the petitioner’s qualifying service, retiral benefits,

and pension treating       date of permanency as 01.07.1974 and

confer the differential amount and arrears to the petitioner within a

period of three months from today, failing which, it shall incur an

interest @ 6% pa for delayed period.


                                          (SACHIN S. DESHMUKH, J.)

Omkar Joshi


Continue reading with your account

Sign in to read the full judgment. It’s free.

Sign in to read

Checking your session…

For a signed copy suitable for filing, refer to the court's website.