Holding

The court dismissed the writ petition, upheld the settlement agreement and directed that Jamnagar Municipal Corporation bear the financial liability.

Summary

The Nagar Prathmik Sikshan Samiti (NPSS) filed a writ petition under Articles 14, 16, 226 and 227 of the Constitution challenging an Industrial Tribunal award dated 31‑01‑2018 that ordered wages for 25 part‑time peons. During the pendency of the petition, the Jamnagar Municipal Corporation (JMC) entered into a settlement agreement with the Majoor Mahajan Sangh to pay 40% of the arrears and to bear all financial liability. The petitioner did not sign the settlement, but the court examined the agreement and the accompanying letters from JMC. The court held that the settlement was valid and that JMC would discharge the financial liability while NPSS would handle administrative compliance. Consequently, the petition was disposed of, the settlement terms were incorporated into the order, and any interim relief previously granted was vacated.

Issues considered

The legality and validity of the Industrial Tribunal award dated 31‑01‑2018.
Whether the settlement agreement between Jamnagar Municipal Corporation and Majoor Mahajan Sangh is binding despite the petitioner’s non‑signature.
Whether the writ petition should be dismissed and the award set aside.
Who bears the financial liability for the arrears of the part‑time employees.

Legislation cited

Industrial Disputes Act, 1947s. 18(1), s. 2(p), s. 33(C)(1), s. 33(C)(2)

Subjects

industrial disputesettlement agreementwage arrearspart‑time employeesmunicipal corporationwrit petitionIndustrial Disputes Actconstitutional challenge

Judgment

C/SCA/8427/2018 JUDGMENT DATED: 05/03/2026

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

R/SPECIAL CIVIL APPLICATION NO. 8427 of 2018
With
CIVIL APPLICATION (FOR FIXING DATE OF HEARING) NO. 1 of 2026
In R/SPECIAL CIVIL APPLICATION NO. 8427 of 2018

FOR APPROVAL AND SIGNATURE:

HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK Sd/-

==========================================================

Approved for Reporting Yes No
No
==========================================================
NAGAR PRATHMIK SIKSHAN SAMITI
Versus
MAJOOR MAHAJAN SANGH & ORS.
==========================================================
Appearance:
MR PREMAL S RACHH(3297) for the Petitioner(s) No. 1
MR AK CLERK(235) for the Respondent(s) No. 1
MR HS MUNSHAW(495) for the Respondent(s) No. 2
RULE SERVED for the Respondent(s) No. 3
==========================================================

CORAM:HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK

Date : 05/03/2026

JUDGMENT

1. The present petition is led by the petitioner – Nagar
Prathmik Sikshan Samiti (hereinafter referred to as
“NPSS”) under Articles 14, 16, 226 and 227 of the
Constitution of India r/w the provisions of Industrial
Disputes Act, 1947 (hereinafter referred to as "I.D. Act")
challenging the judgment and order dated 31.01.2018

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passed by the learned Presiding O5icer, Industrial
Tribunal, Jamnagar, in Reference (I.T.) Case No. 263 of
2012, whereby the learned Tribunal has partly allowed
the reference and directed that 25 out of 27 workmen be
paid wages in the pay scale of Rs. 2550–3200, along with
other admissible bene ts, from the date of ling of the
reference, in accordance with the seniority list and their
respective dates of appointment. The learned Tribunal
has further recorded that employee at Serial No. 1, Mr.
Pradeep C. Bhupatani, had tendered his resignation and
therefore no order was required to be passed in his case,
and that employee at Serial No. 25, Mr. Parag M. Bhadra,
was no longer in service and had already left the job, and
therefore no order was required to be passed in his case.

2. The petitioner has preferred present petition against
the above mentioned impugned judgment and order and
prayed inter alia that:-
"8(A) YOUR LORDSHIPS be pleased to issue appropriate
writ, order or direction quashing and setting aside the
impugned award dtd. 31.01.2018 passed by the Ld.
Presiding O+icer, Industrial Tribunal, Jamnagar in
Reference (I.T.) Case No. 263 of 2012, as being illegal,
arbitrary, unreasonable, against the provisions of law
and against the settled legal principles;

(B) YOUR LORDSHIPS be pleased to stay the
implementation, operation and execution of the
impugned award dtd. 31.01.2018 passed by the Ld.
Presiding O+icer, Industrial Tribunal, Jamnagar in
Reference (I.T.) Case No. 263 of 2012, pending the
admission, hearing and 6nal disposal of this petition;

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(D) YOUR LORDSHIPS be pleased to grant such other
and further reliefs as the Hon'ble Court may deem 6t in
the facts and circumstances of the case;

3. Today, Mr. Munshaw, learned counsel for the
respondent has produced on record the copy of letter
dated 03.03.2026 received by him from Municipal
Corporation, Jamnagar and submitted that in view of the
said letter present petition may be disposed of. The
relevant part of the said letter reads as under:-
"Respected sir,
We have 6lled civil application 01 / 2026(for 6xing
early date of hearing) in the matter SCA no.8427 of 2018
before the Hon'ble High Court of Gujarat. We would like
to inform you that:

1) Jamnagar Municipal Corporation(JMC) agreed to pay
40% settlement amount to the a+ected employees part
time pattawala of Nagar Prathmik Shikshan Samiti,
Jamnagar in three instalment on or before Dt:31/03/2026
from JMC fund as we have executed agreement u/s 2(p)
of the I.D.act-1947 with the Majoor Mahajan Sangh,
Jamnagar (Union of A+ected Employees)on
Dt.11/11/2025 for reducing its 6nancial liablities
@100%. There is no 6nancial liablitiy of Nagar Prathmik
Shikshan Samiti, Jamnagar but they have to manage the
administrative functions as these employees are working
with them.

2) The due process was adopted by way of resolution
Dt.24/12/2024 passed by Nagar Prathmik Shikshan
Samiti, Jamnagar and there after JMC standing
committee resolution Dt.08/01/2025 & JMC General
Board resolution Dt.12/03/2025.

3) The above 6nancial liabilities comes on Jamnagar
Municipal Corporation as Nagar Prathmik Shikshan
Samiti has no setup of such employees therefore Nagar
Prathmik Shikshan Samiti is giving request for fund

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every 6nancial year of their wages and other allowances:
Jamnagar Municipal Corporation is bearing 100%
amount for payment like salary, allowances, gratuity,
leave encashment, etc. to the regular full time
employees and 6x wages to the part time employees who
are not included in the approved setup of Nagar
Prathmik Shikshan Smiti, hence whatever payment will
be made by Nagar Prathmik Shikshan Smiti, will be
beared by JMC. You are kindly requested to take up with
Hon'ble High Court and obtain suitable order so that
JMC can arrange to pay the said amount as per the JMC
General board Resolution No.118,Dt: 12/03/2025."

4. From the said letter, it appears that so far as the
nancial liability is concerned, the same shall be
complied with by the Municipal Corporation, Jamnagar,
and the Municipal Corporation has agreed to pay the
same.

5. In this regard, it is also relevant to note that during
pendency of the present petition, the Municipal
Corporation, Jamnagar has entered into settlement with
all 25 employees and by way of From No.16 Rules 62, the
settlement agreement dated 11.11.2025 was executed by
and between the Municipal Corporation, Jamnagar and
the present respondents through their General Secretary,
Majoor Mahajan Sangh and all the 25 employees have
signed that settlement agreement dated 11.11.2025.

6. For that the Municipal Corporation, Jamnagar has
led Civil Application No.1 of 2026 in Special Civil
Application No.8427 of 2018 and the copy of the
settlement agreement is appended along with the Civil

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Application. The said settlement agreement dated
11.11.2025 annexed in the Civil Application No.1 of 2026
is in vernacular language and therefore the same is
translated into english and reproduced as under :-

"-:: FORM NO. 16 RULES - 62 ::-

"As per Section 2(p) and 18(1) of the Industrial Disputes Act,
1947"
SETTLEMENT AGREEMENT

Party No. 1: Mr.Dineshchandra N. Modi, - I.A.S.
- Commissioner,
Jamnagar Municipal Corporation,
Jubilee Garden, Jamnagar.

Party No.2: Mr.Pankaj R. Joshi,
General Secretary, Majur Mahajan Sangh,
210, A-One Complex, Second Floor, K.V. Road,
Jamnagar.

The case was pending regarding the part-time Peons
working in Nagar Prathmik Shikshan Samiti (UrbanPrimary
Education Committee) managed by the Jamnagar Municipal
Corporation, who are members of the Majur Mahajan Sangh,
Jamnagar before the Industrial Court, Jamnagar, vide Ref. I.T.
263/2012 (Old No. 41/2010). The aforementioned parties,
including the Administrative O+icer of the Nagar Prathmik
Shikshan Samiti, were involved as parties to this dispute. The
6nal disposal of this dispute was adjudicated on 31/01/2018
in favor of the Majur Mahajan Sangh, Jamnagar. Against this,
the Nagar Prathmik Shikshan Samiti, Jamnagar, 6led an
appeal before the Honourable High Court of Gujarat vide
S.C.A. No. 8427/2018 (Main) along with other linked cases, in
which Majur Mahajan Sangh, Jamnagar Municipal
Corporation, etc., have been joined as parties. This matter is
currently pending before the Honourable High Court of
Gujarat. The a+ected employees, whose list is provided in
Annexure-1 (Employees at Sr. Nos. 1 to 19 have 6led
recovery applications; employees at Sr. Nos. 20, 21, and 22,
and the legal heirs of employees at Sr. Nos. 23 to 25, were
parties in the main case), are mentioned therein. Party No. 2

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has presented their defence in the said appeals before the
Honorable High Court, and the next date is 11/12/2025.

Since no stay order was granted by the Honourable
High Court in the above-mentioned main appeal, out of the
members of Party No. 2, Majur Mahajan Sangh, as listed in
Annexure-1, 19 employees had 6led recovery applications
under Section 33(C)(2) before the Labour Court, Jamnagar,
vide Recovery Application No. 44/2022 to 64/2022. The
judgment in these cases was also delivered in favor of the
a+ected employees. Against which, the Nagar Prathmik
Shikshan Samiti 6led an appeal before the Honourable High
Court, which is currently pending. Meanwhile, Party No. 2,
Majur Mahajan Sangh, 6led recovery applications through
revenue channels under Section 33(C)(1) vide Nos. 25/2024
to 43/2024. These applications were conditionally withdrawn
by the a+ected employees as part of a settlement during the
Lok Adalat held on 14/12/2024. The Nagar Prathmik
Shikshan Samiti also 6led appeals before the Honourable
High Court under di+erent case numbers against these
revenue recovery applications. However, as no decision was
reached over a long period, the said a+ected employees 6led
Miscellaneous Application No. 04/2025 to 22/2025 before the
Learned Labour Court to restart these recovery applications.
An order to restart the proceedings was passed on
23/09/2025. At present, to recover the amount as per the said
order through revenue channels, the a+ected workers have
6led recovery applications under Section 33-C-1 vide Nos.
25/2024 to 43/2024, which are presently pending for hearing
before the Learned Labour Court, Jamnagar, on 20/11/2025.

Thus, against the order dated 31/01/2018 passed by the
Industrial Court, Jamnagar, in Case No. Ref. I.T. No.
263/2012 (Old No. 41/2010), the Nagar Prathmik Shikshan
Samiti has 6led an appeal before the Honorable High Court,
which is currently pending. Under such circumstances, Party
No. 2, vide letter dated 23/10/2024, proposed a settlement
formula to bring an amicable end to the dispute. In this
regard, following discussions and negotiations between both
parties, the Nagar Prathmik Shikshan Samiti passed
Resolution No. 56 on 24/12/2024. Furthermore, the Nagar
Prathmik Shikshan Samiti requested Party No. 1 to submit
the proposal regarding the resolution passed by them to the
Standing Committee and General Board of the Jamnagar
Municipal Corporation. Upon submission of said proposal by
Party No. 1, necessary approvals were obtained via Standing
Committee Resolution No. 890 dated 08/01/2025 and General

Page 6 of 19
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Board Resolution No. 118 dated 12/03/2025. Administrative
approval has also been granted by Party No. 1. Consequently,
an amicable settlement has now been reached subject to the
following conditions, which shall be binding on both parties.

-:: TERMS OF SETTLEMENT ::-

1. In this matter, the part-time Peons of the Nagar
Prathmik Shikshan Samiti 6led Case No. Ref. I.T. No.
263/2012 (Old No. 41/2010) before the Industrial Court,
Jamnagar, in which orders were passed in favor of the
a+ected employees as per Annexure-1, which are
required to be complied with. Accordingly, as per the
prevailing / Government rules and the order passed in
favor of the employees listed in Annexure-1, the pay
scale of Rs.2550-3200 from the date of appointment as
per the Seniority List, along with other applicable
bene6ts, shall be paid. However, since the employees
listed in Annexure-1 were part-time and had received
appointment orders only as part-time Peons, a
settlement formula is to be adopted between both
parties. As per the order, 40% of the arrears amount of
the applicable pay scale from the original date of
joining until 31/12/2024 is to be paid. From 01/01/2025,
the salary and pension existing as of that date under
the Salary, Pension, and G.C.S.R. (Gujarat Civil
Services Rules) applicable to Party No. 1 and the Nagar
Prathmik Shikshan Samiti shall be binding on all
settling parties. Regarding receiving the bene6ts of
future services, therequired G.P.F. (General Provident
Fund) contribution amount shall be deducted from the
eligible arrears.

In this regard, the employees listed in Annexure-1
shall be required to submit a separate Notarized
Undertaking vide Annexure-2 to Party No. 1 regarding
the receipt of salary and pension as per the said rules.
These undertakings shall be forwarded to the Nagar
Prathmik Shikshan Samiti.

2. Party No.2 in this case, Majur Mahajan Sangh,
Jamnagar, by its members and the part-time peons of
the Nagar Prathamik Shikshan Samiti managed by the
Administrative O+icer under the subordination of Party-
1, who are listed as per the Schedule-1 herewith,
according to their seniority list are ready to accept 40%
of the amount as a full and 6nal settlement out of

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whatever amount of arrears is to be paid with pay,
dearness allowance, medical allowance, house rent
allowance, city allowance, vehicle allowance, and other
allowances as per the applicable salary commission for
the period from the date of appointment to 31/12/2024
according to the formula, as per the order of the
Hon'ble Industrial Tribunal dated 31/01/2018, and all
the a+ected employees accept it. Further, the First
Party agrees to pay the arrears of full pay and ancillary
bene6ts according to the prevailing pay from
01/01/2025 to the a+ected member employees of Party-
2, and along with this, the present settlement is made
on the condition of giving the grade pay and all other
ancillary bene6ts from the date of appointment. We,
Party No.2 Majur Mahajan Sangh and the sta+ as per
the list in Schedule-1, have made the present
settlement giving assurance that we will not make any
demand or 6le any claim regarding this matter in the
future.

3. The First Party-1 of this case agrees that, they will pay
the amount payable to the a+ected employees shown in
the list as per Schedule-1 in three installments or by
31/03/2026. Wherein the 6rst installment will be of 50%
amount of the total arrears as per the settlement
formula, which shall be paid by 31/12/2025, and the
remaining two installments will be of 25%-25% amount,
which shall be paid by 31/03/2026.

4. Party-2 in this case, Majur Mahajan Sangh, submitted
an application to hear again the recovery applications
which are presented under section 33(c)(1) of the I.D.
Act - 1947 by the a+ected employees and withdrawn by
a letter in the Lok Adalat held on 14/12/2024 as a part
of this settlement. Since the order in the same was
passed in favour of Party No.2 on 23/09/2025, the
applications for recovery through revenue have been
6led by them before the Hon'ble Labour Court,
Jamnagar, which are currently pending. Upon reaching
this settlement, the said applications as well as any
other related cases shall have to be withdrawn.

5. Party-2 in this case through their letter dated
04/10/2025, and the a+ected employees also give such
consent / assurance / acceptance that, after the
payment of 40% amount of arrears by Party No.2, no
dispute remains regarding this matter and they will not

Page 8 of 19
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raise or cause to be raised any dispute regarding this
matter in the future.

6. Whatever cases have been 6led before the Hon'ble
High Court of Gujarat against the orders of the
Industrial Court, Jamnagar and Labour Court, Jamnagar
regarding this dispute by Party No.1 in this case and
Nagar Prathamik Shikshan Samiti and the a+ected
employees as per Schedule-1 of Party No.2, shall have
to be withdrawn upon this settlement, which is
accepted by both the parties.

7. Both the parties in this case conciliate and assure that,
in the Appeal Application No.C.A.8427/2018 (Main) and
other related cases 6led by the Nagar Prathamik
Shikshan Samiti before the Hon'ble High Court of
Gujarat against the order dated 31/01/2018 of the
Industrial Court, Jamnagar in Case No. Ref.I.T. No.
263/2012 (Old No.41/2010), this settlement shall have
to be produced on the next hearing date of 11/12/2025
or prior to it and an order shall have to be obtained
accordingly.

8. This settlement shall come into e+ect immediately upon
issuance of the order by the Hon'ble High Court of
Gujarat, which is agreed upon by both the parties.

Thus, since the settlement is reached to the aforesaid
conditions, no transaction of any kind of amount
remains between the parties in the present
circumstances. However, if any para is given regarding
this during the audit, then it shall be binding upon both
the parties.

The parties herein have executed this settlement
agreement voluntarily in good faith and in a sound
disposing state of mind, having fully understood the
terms thereof. After reading, reading over and
understanding the same, signatures have been put in it
in the presence of a Witness, which shall be binding
upon both the parties.

This settlement agreement is executed upon 05 (6ve)
purchased e-stamps of Rs.300/- dated 11/11/2025
bearing No. PF0024012488 to PF0024012492 in a total
of 5 copies including the original.

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Place : Jamnagar Date : 11/11/2025

Party – 1 Party – 2
Sd/- (Illegible) Sd/- (Illegible)
Mr. Dineshchandra N. Mr. Pankaj R. Joshi,
Modi, General Secretary,
IAS, Commissioner Majur Mahajan
Sangh
Sd/- (Illegible) General Secretary,
Mr. Devendrasinh A. Majur Mahajan
Zala Sangh
Deputy Commissioner Jamnagar

Mr. Bhavesh N. Jani,
City Engineer,
I/C Assi, Commissioner,
(Adm)
Jamnagar Municipal
Corporation, Jamnagar
Witness Witness
Sd/- (Illegible) Sd/- (Illegible)
Mr. Harshad M. Patel Mr. Kirtibhai R. Joshi

Encls: Schedule 1 and 2."

7. On the said subject, the respondents have
constrained by the agreement that since the petitioner,
who has led this petition, has not signed the said
agreement and therefore, to satisfy their anxiety, the
Municipal Corporation, Jamnagar has written a
communication to Mr. Munshaw, learned counsel for the
petitioner, dated 03.03.2026 and prayed to disposed of
the petition.

8. Mr. Clerk, learned counsel appearing for the
respondents, has expressed an apprehension and
submitted that the present petition has been preferred by
the petitioner – NPSS, which has not signed the
settlement agreement.

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9. Heard learned counsels appearing for both the sides.

10. Considering the facts and circumstances of the case
and in view of the fact that an amicable settlement has
been arrived at by and between the parties, it is hereby
directed that, so far as the nancial burden/liability is
concerned, the same shall be complied with by the
Municipal Corporation, Jamnagar, as mentioned in the
communication. So far as the administrative compliance
is concerned, the same shall be taken care of by the
NPSS, Jamnagar, after consultation with the State
Government.

11. The concerned respondent, represented through the
Secretary of the Union, Majoor Mahajan Sangh,
Jamnagar, is present before this Court and this order is
passed in his presence.

12. Mr. Rachh, learned counsel appearing for the
petitioner, subsequently appeared and submitted that the
petitioner is not in agreement with the settlement and
has not signed the settlement produced by the
respondent – Municipal Corporation, Jamnagar.

12.1 At the outset, the opponent no.1 herein (Nagar
Prathmik Sikshan Samiti) denies each and every
averment made in the memo of application except to the
extent the same is speci cally admitted by the answering

Page 11 of 19
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opponent no.1.

12.2 It is submitted that for providing education to
children in the areas of Jamnagar city, about 47 primary
schools are functioning. The administration and
management of these municipal schools, is undertaken by
Nagar Prathmik Shikshan Samiti, Jamnagar, as per the
prevailing rules and procedures. For payment of salaries
of academic sta5/employees of these schools, 80% grant
is provided by the Government of Gujarat and 20%
contribution is borne by the Jamnagar Municipal
Corporation (JMC). However, 100% nancial
responsibility of the x wages of part-time peons engaged
in these schools is borne entirely by Jamnagar Municipal
Corporation. That the Nagar Prathmik Shikshan Samiti
has been entrusted with the responsibility of managing
government primary schools situated within the
municipal limits. That the appointments of the concerned
part-time employees (peons) were done without following
due procedure of law, in absence of any such sanctioned
post in the set up and therefore the question of giving
bene ts of pay scale in absence of availability of
sanctioned post in the set up does not arise at all.

12.3 It is submitted that earlier the ori.respondent no.1-
Majoor Mahajan Sangh had led Reference I.T.
No.749/1984 against Jamnagar Municipal Corporation.
The principal demands raised by the union before the

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Industrial Tribunal were as under: (1) To treat part-time
peons working in primary schools as permanent
employees and be given salary as recommended by Desai
Pay Commission. (2) To grant them wages and bene ts
equivalent to permanent employees since the inception.
(3) To grant part-time peons working in primary schools
monthly increment of Rs.50/- as recommended by 3rd Pay
Commission from 01.08.1983. After considering the
submissions of both the sides and material on record, Ld.
Industrial Tribunal, Rajkot rejected the aforesaid
reference vide order dtd.06.07.1987 and the said fact is
evident from the evidence of witness of Jamnagar
Municipal Corporation at Ex.51 as recorded in paragraph
no.21 in the impugned order dtd.31.01.2018 passed by
the Presiding O5icer, Industrial Tribunal, Jamnagar in
Reference (I.T) Case No. 263 of 2012 (Old Case No.
41/2010). Considering the observations in the earlier
decision of the Industrial Tribunal, Rajkot dtd.06.07.1987
it is submitted that such demands and reliefs as sought by
the Majoor Mahajan Sangh do not fall within the scope
and jurisdiction of Industrial Tribunal. It is also evident
that demands raised and reliefs sought in the Reference
(I.T) Case No. 263 of 2012 (Old Case No. 41/2010) are
same as that sought in Reference I.T. No.749/1984 and
therefore, the later reference ought not to have been
entertained also applying the principles of res-judicata,
however, ignoring the earlier order dtd.06.07.1987 of

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Industrial Tribunal, Rajkot, impugned order dtd.
31.01.2018 came to be passed, which is bad in law and
therefore, the same is challenged in the above writ
petition by opponent no.1 herein.

12.4 It is submitted that if demands and reliefs as sought
by the concerned part-time employees of Primary Schools
of Jamnagar are granted it will have far reaching e5ect
across the State and the concerned employees are well
aware that they are appointed on part-time basis and
thus, they do not have any legal or moral right to raise
such claims, as is evident from the observations made in
earlier order of Industrial Tribunal, Rajkot in the year
1987.

12.5 It is also submitted that settlement arrived at
between Jamnagar Municipal Corporation and Majoor
Mahajan Sangh is not acceptable to the ori. petitioner
(Nagar Prathmik Sikshan Samiti) in view of following
grounds:-
a. There is no sanctioned post of Peon-Class IV in
the set up in Government Primary Schools.

b. In view of above narrated facts, the original
settlement agreement sent between Jamnagar
Municipal Corporation and Majoor Mahajan Sangh,
which was sent for signature of opponent no.1
herein, was sent back without signing on it by

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opponent no.1 herein vide letter dtd.08.07.2025
addressed to the Assitant Commissioner, Jamnagar
Municipal Corporation.

c. Further, no opinion of opponent no.1 was
sought by the ori.respondents in respect of terms
and conditions nos.1 to 8 of notarized settlement
agreement arrived at inter-se between them.

d. Though concerned part-time employees have
been paid their legal dues in form of x salaries for
actual work done by them all these years, putting
them and paying them 40% of pay scale as agreed in
the settlement agreement and that too from the date
of their appointment till 31.12.2024 is unwarranted
and a huge burden on public exchequer.

e. It is submitted that the issue raised in the
reference involves a policy decision which falls
within the jurisdiction of the Government and
competent authorities. If such demands are
accepted, it will create a heavy nancial burden on
the local authority.

f. As per General Board Resolution No.118
dtd.12.03.2025 of Jamnagar Municipal Corporation,
point no.6 speci cally states that all these primary
schools must strictly follow all the guidelines, rules

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and regulations, circulars of Education Department
of the State and in violation thereof if any
appointment, promotion or expenses are made then
in the event of any future nancial liability arising
therefrom, it will be considered as personal liability
of o5icer approving such appointment, promotion
and will be recovered from him. Therefore, being a
signing authority, administrative o5icer of opponent
no.1, is against accepting any such settlement
agreement.

g. The appointments of the concerned employees
are done without following due procedure of law, in
absence of any such sanctioned post in the set up
and therefore though mentioned in condition no.1 of
Settlement Agreement, the question of giving
bene ts of pay scale as per GCSR in absence of
availability of sanctioned post in the set up does not
arise at all

h. As per the objection in the Audit by District
Assistant Inspector, Local Funds Accounts,
Jamnagar, it is observed that while examining
accounts for the year 2011-12, expenses made
towards appointment-salary expenses to the class-
IV-Peons whose set up is not sanctioned either by
the State Government or by the Municipal
Corporation, cannot be accepted. Further, vide letter

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dtd.04.05.2019, District Assistant Inspector, Local
Funds Accounts, Jamnagar conveyed that pension
case papers of employees who are not appointed
following prescribed legal procedure may not be
sent for inspection and a copy of this communication
was also sent to JMC. Therefore also, settlement
agreement is not acceptable to opponent no.1
herein.

i. It is submitted that when pension papers of
Class IV employees were sent for inspection to JMC,
it was communicated by JMC vide letter
dtd.28.01.2026 to opponent no.1 that service of
these employees is taken by opponent no.1 so
pension papers were sent back. On one hand JMC
enters into settlement with the concerned employees
and on other hand sends back their pension papers
without carrying out necessary procedure to the
opponent no.1.

j. In reference application of Majoor Mahajan
Sangh, JMC had led its reply and speci cally raised
contention relying upon earlier order of Industrial
Tribunal, Rajkot that concerned employees are not
entitled to any reliefs as their claims are contrary to
law and against the facts on record. However, taking
a contrary stand, now JMC has entered into
Settlement Agreement on terms and conditions

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C/SCA/8427/2018 JUDGMENT DATED: 05/03/2026

which are contradictory to its earlier stand.
Therefore also, settlement agreement between
ori.respondents (JMC and Majoor Mahajan Sangh) is
not legally tenable and not acceptable to the
opponent no.1 herein.

13. However, looking to the overall facts and
circumstances of the case and in view of the letter dated
03.03.2026 tendered by Mr. Munshaw, learned counsel
for the Corporation, and since the Corporation is
shouldering the responsibility to pay all the dues of the
concerned workmen, as mentioned in the said letter and
as reHected in the settlement agreement, the objection
raised by Mr. Rachh, learned counsel for the petitioner, is
not tenable.

14. It is observed that in case of any di5iculty with regard
to any administrative action, the authority may consult
the State Government and take an appropriate decision.
Liberty is reserved to revive the proceedings in case any
di5iculty arises.

15. In view of the above, the present petition is disposed
of. Rule is made absolute to the aforesaid extent. The
terms and conditions mentioned in the settlement
agreement shall form part and parcel of the present order
and the parties shall abide by the said terms and
conditions.

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C/SCA/8427/2018 JUDGMENT DATED: 05/03/2026

16. Pending civil application/s, if any, shall stand
disposed of accordingly. Interim relief, if any, granted
earlier stands vacated forthwith.

Sd/-
(HEMANT M. PRACHCHHAK,J)
SURESH SOLANKI
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: SURESHKUMAR MOTIBHAI SOLANKI(HC00208), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 10/03/2026 16:59:59

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