Full Judgment Text
2025 INSC 1227
Reportable
IN THE SUPREME COURT OF INDIA
CIVIL ORIGINAL JURISDICTION
CONTEMPT PETITION (C) NO. 1264 OF 2018
in
CIVIL APPEAL NO. 4929 OF 2017
KACHARA VAHATUK SHARAMIK SANGH …PETITIONER(S)
VERSUS
AJOY MEHTA & ORS. …RESPONDENT(S)
WITH
MA 1807/2018 in C.A. No. 4929/2017
J U D G M E N T
VIKRAM NATH,J.
1. The present contempt petition was filed by respondents to the
Civil Appeal No. 4929 of 2017 for non-compliance of the
judgment and order dated 07.04.2017, whereby this Court
had modified the award of the Industrial Tribunal, Mumbai
dated 13.10.2014 as confirmed by the High Court, vide
judgment and order dated 22.12 2016 passed in Writ Petition
No. 11519 of 2014. The Industrial Tribunal by the aforesaid
Signature Not Verified
award had directed the Municipal Corporation of Greater
Digitally signed by
SONIA BHASIN
Date: 2025.10.14
11:48:50 IST
Reason:
Mumbai, the appellant before this Court, to treat 2700
employees of the said corporation as permanent employees
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 1 of 19
and accordingly to extend benefits and status retrospectively
from the date of completion of 240 days from the date of
joining. This Court, vide the aforesaid judgment and order
modified the award to some extent and substantially agreed
with the relief granted by the Industrial Tribunal. For the sake
of convenience, the judgment of this Court dated 07.04.2017
is reproduced hereunder:
“1. Heard the learned counsel for the parties at length.
2. Leave granted.
3. This appeal by special leave is against the judgment and
order dated 22.12.2016 of the High Court of Judicature
at Bombay in Writ Petition No. 11519 of 2014 whereby
the High Court dismissed the Writ Petition filed by the
Municipal Corporation of Greater Mumbai and Anr. and
granted three months' time to the Corporation to
implement the Award dated 13.10.2014 passed by the
Industrial Tribunal directing the appellant to treat 2700
employees as permanent employees and accordingly to
extend benefits and status retrospectively from the date
of completion of 240 days from the date of joining.
Hence, the appeal.
4. In our opinion and in the facts and circumstances as
posts are required to be created, it would be
appropriate to grant monetary relief w.e.f. the date
of Award i.e. 13.10.2014 . Actual monetary benefit to
be given from the date of the Award to the employees
who are still serving.
5. However, learned counsel for the parties agreed that
the permanent status as a special case be conferred
to those employees who had died in service or
permanently incapacitated till today w.e.f. the date
as ordered by the Industrial Tribunal. Let relief be
given as agreed .
6. However, for the purpose of notional fixation, benefit
shall be given from the date ordered by the Industrial
Court to all the employees, which has been affirmed by
the High Court. Only exception is with respect to
employees who have died/ permanently
incapacitated and as per aforesaid agreement
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 2 of 19
recorded, they will be entitled to the actual benefit
w.e.f. the date which has been ordered by the
Industrial Tribunal .
7. It was also stated before us that verification process of
2700 employees had been undertaken pursuant to the
interim order passed by the High Court. It was found
that only 1600 employees were actually available. With
respect to remaining workers verification could not be
made. Thus, the order which has been passed with
aforesaid modification shall be applicable with respect
to the employees who were verified. With respect to
remaining employees whose verification could not
be made earlier, fresh exercise shall be undertaken.
Verification process shall be undertaken with the
help of Corporation and Union by the Industrial 3
Investigating Officer of the Industrial Court within a
period of six months from today and in case any of
the employees is verified, he shall also be entitled to
the relief in terms of the order which has been
passed by us. In case he has not served, he will not
be paid for that period.
8. This order shall not be treated as a precedent as by and
large, it is based on consensus.
9. The appeal stands partly allowed accordingly. The order
of the Industrial Tribunal as affirmed by the High Court
shall stand modified to the above extent.
10. No costs.”
The basic modifications made by the aforesaid judgment
have been highlighted in bold.
2. The contempt proceedings have been pending since 2018.
However, when compliance was not effected despite repeated
orders being passed granting time to the Brihanmumbai
Municipal Corporation (for short, “the BMC”), this Court, vide
order dated 05.03.2024 found that there was substantial non-
compliance of the judgment of this Court dated 07.04.2017,
and accordingly directed the personal appearance of the
Municipal Commissioner, the Deputy Commissioner (SWM),
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 3 of 19
and the Chief Engineer (SWM) on 19.03.2024. Liberty was also
granted to the Municipal Commissioner to file up-to-date
details of the compliance effected till date.
3. On 19.03.2024, the three officers of the BMC appeared before
this Court and filed an affidavit placing on record the status of
compliance. Once again, this Court, after briefly recording the
contents of the affidavits and hearing the counsel for the
parties, issued further directions, fixing the next date as
23.04.2024. The personal appearance of the Municipal
Commissioner was exempted for the time being. However, the
Deputy Commissioner (SWM) and the Chief Engineer (SWM)
were directed to remain present on the next date of hearing.
4. The matter was thereafter taken up on different dates, and a
detailed order was passed on 30.04.2024, wherein further
issues were considered and creased out, and the BMC was
again directed to file a fresh compliance affidavit, and the next
date of hearing was fixed as 17.05.2024. Thereafter, the matter
has been taken up on several dates, namely, 17.05.2024,
29.07.2024, 27.09.2024, 20.12.2024, 19.02.2025,
18.03.2025, 30.04.2025, 08.09.2025, 15.09.2025 and
16.09.2025.
5. A perusal of the above-mentioned orders would show that
BMC has been making genuine efforts to ensure compliance
with the directions, and substantial compliance has in fact
been effected, as submitted by Ms. Rohini Thyagarajan,
learned counsel appearing for the petitioner. On 16.09.2025,
when the matter was heard, Ms. Rohini not only made the
submissions but also placed before this Court a brief note as
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 4 of 19
to what aspects were still required to be done. Further, Mr.
Dhruv Mehta, learned senior counsel appearing for the officers
of the BMC had placed his response to the same. The matter
was thereafter reserved for orders, primarily to issue such
further directions as may be necessary, considering the note
submitted on behalf of the petitioner and the response
submitted by the respondents.
6. The brief note submitted on behalf of the petitioner union is
reproduced hereinbelow:
“A. Appointment of Officer to examine certain issues
1. By an Order dated 20th March 2025, this Hon'ble Court
inter alia observed as under:
"The parties may also consider identifying a retired
Class-I officer of the Government or from the
Corporation, who may have in-depth knowledge in
the calculation of wages/salaries etc."
2. Pursuant to the aforesaid direction, the Petitioner on 2nd
April 2025 addressed an email to the Respondents
proposing the name of Mr Shrikant Kamble, former Deputy
Auditor of the Respondent Corporation (now retired) for the
purpose of looking into calculations of the dues of the
presently concerned workmen. The Respondent
communicated its approval of the said proposal by an email
dated 28th April 2025.
3. The aforesaid retired officer assumed charge soon
thereafter. The Petitioner has since been addressing letters
to the Corporation requesting it to provide information as
to the progress made by the officer in the matter of
examining the calculations of workers' dues and
ascertaining the extent of amounts due, paid and
outstanding (Letters at Pg. hereto). There has till date been
no response thereto and the Petitioner remains in the dark.
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 5 of 19
4. The Petitioner proposes that this Hon'ble Court consider
outlining:
a. The tasks to be undertaken by the said officer [as outlined
for consideration hereinbelow from (B) to (D)] and
b. Fix a time frame for the completion thereof.
B. Incorrect fitment of workers' wages
5. The Petitioner has noticed from the break-up charts
furnished by the Corporation, as also from workers' pay
slips that in numerous instances workers' basic wages have
been fixed in disregard of their initial dates of appointment
(i.e., in 2005-2006).
6. This incorrect fixation of the workers' pay adversely
impacts a range of their entitlements total arrears
admissible, seniority, promotions and all consequential
retiral benefits.
7. Proposed Resolution:
a. The Auditor to re-examine fitment of the workers' pay by
having regard to the wage scales and other benefits, as
extended to their counter-part permanent workers having
similar or identical years of service.
b. In this process, the Auditor shall consider wage
agreements, circulars, notifications, etc issued by the
Corporation from time-to-time for determining the wages
and other service conditions of identically situated
permanent workers.
C. Discrepancies in the break-up charts furnished by the
Corporation
8. That while scrutinising the break-up charts furnished by
the Corporation in September 2024, the Petitioner noticed
glaring and irreconcilable discrepancies. For one, in a large
number of cases, it was found that though the attendance
for several months was continuously shown to be 'ZERO' -
and as a result nothing admissible for these periods upon
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 6 of 19
verifying with the bank account statements of individual
workers, it was found that they had been paid minimum
wages for the work rendered by them during such periods.
This aspect was brought to the Corporation's attention in
several meetings held with its officers, who have
acknowledged that on this count the break-up charts are
required to be re-worked.
9. Further, as explained hereinabove, the workers'
entitlements must be worked out with reference to their
correctly fixed pay and after accounting for their
outstanding leave (since earned leave at the rate of 30 days
each year is admissible). Thus, the break-up charts would
have to re-worked additionally considering these aspects of
the matter.
10. Proposed Resolution:
a. The Corporation shall make available all attendance
records of the workmen herein to the Auditor, who shall
then provide each workman concerned an opportunity to
furnish their bank account statements / passbooks / any
other documents as proof that they worked during any
period(s) for which their attendance is either shown to be
'ZERO' or is not available.
b. The Auditor shall thereafter prepare break-up charts
providing a monthly overview of amounts payable (as a
permanent worker, appropriately fixed at the pay scales
obtaining from time-to-time), paid (as per what was paid at
the relevant time), the payable difference under each head,
total arrears and amounts outstanding, if any. This shall
be calculated for the period up until July 2025.
D. Recoveries of payments stated to be made in excess of
entitlement
11. Recovery notices issued to workers from earliest verified
batch of 1600 (approx.). That for the first time in December
2024 / January 2025, more than 859 workers from the
batch of approximately 1600 workers, have been issued
notices from the Respondent Corporation claiming that
excess amounts were paid to them earlier and that,
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 7 of 19
therefore, such amounts are now recoverable. (point to be
made about legal heirs)
12. That the liberty granted by this Hon'ble Court by its Order
dated 27th September 2024 was in the context of payments
recently made by the Corporation pursuant to Orders
passed by this Hon'ble Court and not to go back in time
and recover from amounts paid nearly 5-6 years back i.e.,
from 2018-2019, which were, admittedly, paid by the
Corporation after examining the attendance records for the
period from 2014 onwards (Corporation's Affidavit dt.
19.04.2024, Pg. 11-12, Paras 9- 10).
13. That in any event, no recovery from any worker (whether
paid recently in 2024-2025 or earlier) can be made prior to
all attendance records (and where such records are not
available, proof of minimum wage payments received by the
workmen concerned), correct pay fixation, leave
encashment etc. having been accounted for, and revised
break-up charts prepared.
14. Proposed Resolution: In light of the above, no recoveries
shall be made until after the Auditor prepares individual
break-up charts and the same is made available to each
individual workman. It will be open to the Petitioner /
worker concerned, to adopt appropriate proceedings, where
aggrieved by the Auditor's tabulation.
E. Designation of an officer within the Corporation for
smooth implementation
15. The Deputy Municipal Commissioner (Solid Waste
Management Department), who has been reporting to this
Hon'ble Court from time- to-time in respect of ongoing
compliances, be designated as the Officer tasked with
overseeing the resolution of outstanding issues and
ensuring that the directions passed by this Hon'ble Court
are given effect to in a time-bound manner by taking
appropriate administrative decisions.
F. Delayed payment of gratuity
16. That the Corporation had never disputed that the Order
dated 7th April 2017 of this Hon'ble Court required it to
extend all consequential benefits from the date as ordered
by the Award of the Industrial Tribunal, Mumbai to all
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 8 of 19
workers who had died, retired or become incapacitated.
Despite this, it is only 7 years thereafter from April/May
2024 onwards, pursuant to Orders passed by this Hon'ble
Court, that the Respondent started making payments
towards pension and gratuity. This is evidenced from the
Corporation's own payment charts shared with the
Petitioner.
17. That the workers concerned / their legal heirs have been
put to severe economic hardship as a result and, thus,
deserve to be granted recompense. So far as gratuity is
concerned, Section 7 (3A) of the Payment of Gratuity Act,
1972 unequivocally stipulates that in the event that
gratuity is not paid within 30 days of death / retirement,
an employer is liable to pay interest thereon from the date
on which it becomes payable till the date of payment.
18. That in the circumstances, this Hon'ble Court consider
directing Corporation to pay statutory interest as provided
for under Section 7 (3A) of the Payment of Gratuity Act,
from the date of the concerned worker's death /
disablement / retirement till the date on which the full
amount due by way of gratuity has been disbursed by the
Corporation.
G. Payment of Provident Fund amounts accrued or
accumulated
19. That for the period prior to when the workers herein started
to receive wages and other emoluments as permanent
employees of the Corporation, they were receiving statutory
minimum wages. From August 2009 onwards, the
Corporation made applicable to the workmen herein the
provident fund scheme under the Employees Provident
Fund Act, 1952. Accordingly, every month statutory
deductions were made from workers' minimum wages
towards the 'employees' component of PF. These, along with
the matching employer's contribution were routed through
NGOs (which kept changing every 6-8 months and were
declared 'sham and bogus' in terms of the Industrial
Tribunal's Award) to be deposited in each member
workmen's EPF accounts. The Respondent Corporation
being the "employer" of the each of the workmen concerned
herein, is statutorily liable under the EPF Act to ensure that
they are paid the entirety of their Provident Fund
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 9 of 19
contributions (comprising the employer's and employee's
components) for the aforesaid period.
20. That over time it was found that deductions made from
workers' wages and matching employer's contributions
were not being deposited with the EPFO. By an order dated
21s December 2023, in proceedings initiated by the EPFO
upon a complaint made by the Petitioner, it was held that
an amount of Rs. 228,07,21,559/- is not transferred in the
accounts of the workers concerned herein (as also several
others) and directed that the Respondent Corporation
deposit such amount. This Order is the subject matter of a
pending Writ Petition (L) No. 6897 of 2024 filed by the
Respondent in the Hon'ble High Court of Bombay, which by
an Order dated 22nd February 2024 directed that "till the
next date no coercive steps shall be taken in pursuance of
the impugned Order dated 21 December 2023"
[Corporation's Affidavit dt. 27.07.2024 Pg. 14-15 & Pg. 25].
The Petitioner Union has filed I.A. No. 6977 of 2024 seeking
to be impleaded in the aforesaid Writ Petition, as a party
directly affected by the outcome thereof. However, the
Respondent Corporation has filed an Affidavit-in-Reply
thereto opposing such prayer.
21. That the Respondent Corporation has resisted addressing
the issue of outstanding PF amounts in these proceedings,
citing the pendency of the aforesaid matter in the Hon'ble
High Court. In these circumstances, this Hon'ble Court
may consider directing that the Petitioner Union be heard
in the Petition pending before the Hon'ble High Court and
all remedied available to it to recover workers' PF be left
open, lest the workers concerned herein be left remediless
in the matter of their outstanding PF dues.”
7. The response of the BMC to the aforesaid note submitted by
the petitioner is reproduced hereinbelow:
1. Appointment of Officer (Points. 1-4 of the note submitted by
the Petitioner) :
By an order dated March 20, 2025, this Hon'ble Court
directed the parties to identified a retired Class-I officer with
expertise in wage and salary calculations. In consultation
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 10 of 19
with the Petitioner Union, the name of Shri. Shrikant Kamble,
a Retired Deputy Municipal Chief Auditor has been agreed by
the parties to be appointed by this Hon'ble Court. The
concerned officer has been asked to provide a progress report
and will schedule a joint meeting with the Petitioner Union at
the earliest to discuss the modalities of their participation
and representation, and to provide a timeline for the
completion of the audit. The Respondent Corporation is
committed to a transparent and speedy resolution of the
present matter.
2. Incorrect Fitment of Workers' Wages (Points.5-7 of the note
submitted by the Petitioner) :
a. The note states that the basic wages for numerous workers
have been incorrectly fixed without considering their initial
appointment dates in 2005-2006. This has adversely
affected their entitlements, including arrears, seniority,
promotions, and retirement benefits.
b. It is submitted that the fixation is done considering their
initial appointment and notional fixation has been given
till 13.10.2014 and in accordance with the relevant
notification and circulars of the Corporation. Considering
their attendance further fixation has also been considered.
c. The appointed officer will be provided with the attendance
records which has already been provided to the Petitioner
Union so that he can resolve any discrepancy in terms of
calculation, etc.
d. It is the understanding of the Corporation that the
concerned officer which may be appointed by this Hon'ble
Court is for the purposes of resolving discrepancies, if any
in the calculation of wages and arrears considering his
expertise in the said field. It is further the understanding
of the Corporation that the said officer is not to assume
any adjudicatory function or replace the decision-making
process of the Corporation or this Hon'ble Court.
3. Discrepancies in Break-up Charts (Points. 8-10 of the note
submitted by the Petitioner) :
a. The Petitioner Union points out discrepancies in the break-
up charts, specifically mentioning cases where workers
were paid minimum wages despite their attendance being
recorded as "ZERO" for several months. They propose that
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 11 of 19
the break- up charts be re-worked to include correct pay
fixation and outstanding leave.
b. It is submitted that the breakup charts were already
shared with the Petitioner Union in September 2024. It was
already informed to the Petitioner as well as mentioned in
the affidavit dated 17.02.2025 that on submission of the
documents showing the evidence of attendance to the
respective ward office, the discrepancy if any, in the
breakup charts can be resolved. However, the appointed
officer will be asked to verify available attendance records.
Workers can also be given the opportunity to submit their
bank account statements or other proof to verify work
rendered during periods with missing or zero attendance
records. The officer will then prepare revised break-up
charts, which will include monthly overviews of all payable
amounts after considering the bank statements submitted
by workers, if any.
4. Recoveries of Excess Payments (Points. 11-14 of the note
submitted by the Petitioner) :
a. The note raises concerns about the Corporation issuing
recovery notices to workers for the excess payments made
as far back as 2018-2019. The Petitioner states that no
recovery should be made until the revised break-up charts
are prepared and made available to the workers.
b. It is submitted that the appointed officer can prepare
individual, revised breakup charts for each workman and
will provide a report within a period of 2 months from his
appointment for those whose workers who have received
excess amounts. This Hon'ble Court has already
considered the said situation and has passed an order
dated 27.09.2024, the relevant portion of the said order is
as follows:)
"However, we are of the view that in case any excess
amount has been paid by the Corporation, the
Corporation will have a right to recover it but only
after routing it through the petitioner-Association
and in a reasonable manner on month to month
basis from the salary of the employees."
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 12 of 19
c. Where the record of the workers are available, the
Corporation shall recover the excess amounts in the
manner prescribed by this Hon'ble Court vide order dated
27.09.2024.
d. Where the records are not available, no further recoveries
will be made until the appointed officer has prepared
individual, revised break-up charts for each workman and
these have been made available to them i.e. within a period
of 2 months.
e. In so far as, the pension claims of workers are concerned
whose claims are pending verification (due to non-
submission of requisite documents), the same will be
processed after considering all the excess/outstanding
payments.
5. Designation of an Officer for Implementation (Point 15 of
the note submitted by the Petitioner) :
a. The Petitioner Union states that the Deputy Municipal
Commissioner (Solid Waste Management Department) be
formally designated to oversee the resolution of the
outstanding issues and ensure timely implementation of
the court's directions.
b. It is submitted that the Deputy Municipal Commissioner
(Solid Waste Management Department) is already closely
monitoring the progress of the compliance of the orders
passed by this Hon'ble Court. It will be further be ensured
that all directions passed by this Hon'ble Court are
implemented in a time-bound and effective manner.
c.
6. Delayed Payment of Gratuity (Points.16-18 of the note
submitted by the Petitioner):
a. It is submitted that entitled /eligible workers have already
been paid the applicable gratuity amounts along with the
pension claims and the same shall be done for the workers
who have received ad-hoc amounts towards pension and
gratuity.
b. It is submitted that keeping in view that no economic
hardships be caused to the workers, Respondent
Corporation had disbursed ad-hoc amounts towards
gratuity along with the pension claims of the respective
workers.
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 13 of 19
c. It is further submitted that the process of calculation of
pension and gratuity required some time as the documents
were to be submitted by the concerned ex-employees or
their legal heirs for disbursal of the actual pension and
gratuity amounts. Therefore, there has been no intentional
delay by the Respondent Corporation in the said process.
The following are the challenges faced by the Respondent
Corporation in calculation of the actual payable amounts
towards gratuity:
i. Minimum Qualifying Service Requirement : Gratuity
under the Act requires a minimum of five years of
qualifying service. Determining the qualifying service
was essential service period accurately is essential
before any payment can be made.
ii. Attendance-Based Calculation:
Gratuity computation depends on verified attendance
records from the date of appointment until
superannuation or death of the concerned employee.
These records were summoned from various wards and
departments and then calculations were done for
verifying the period of qualifying service. The Petitioner
Union has disputed attendance records of certain
workers, therefore the gratuity amount can also be
calculated once the employee submits bank
statements, etc. as already mentioned in Point No. 3 of
the present note.
iii. Delayed Submission of Documents by Workers or
their Legal Heirs :
In several cases, the employees or their legal heirs have
submitted the required documents after a long delay
further delaying the verification and calculation
process. The documents from 130 workers or their
legal heirs have not been received till date.
iv. Loans availed by the Workers:
In several cases, the employees have taken huge
amounts of loans from Municipal Co-operative Bank
and the said amounts are required to be adjusted
towards their pension and gratuity claims.
Hence, the issue of paying interest may not arise in the facts
and circumstances of the present case.
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 14 of 19
7. Payment of Provident Fund (PF) Amounts (Points. 19-21 of
the note submitted by the Petitioner):
a. The union raises the issue of approximately Rs. 228 crores
in PF contributions not being transferred to the workers'
accounts. It also notes that the corporation has resisted
addressing this issue, citing a pending writ petition in the
High Court of Bombay where the union's request to be
impleaded has been opposed. The union requests the
court's direction to be heard in the High Court petition.
b. It is submitted that the Petitioner Union is well aware of
the fact that the issue of outstanding Provident Fund
amounts is currently sub-judice in a Writ Petition No. 553
of 2024 pending before the Hon'ble High Court of Bombay.
The same has been brought to the notice of this Hon'ble
Court by way of an affidavit dated 27.07.2024 where in
Corporation has stated that it will comply with the final
decision of the Hon'ble High Court regarding Provident
Fund payments.
c. Since the said workers in the present contempt petition
were contractual employees working with NGOs, prior to
orders dated 07.04.2017 passed by this Hon'ble Court, the
Provident Fund Amount of the said workers is deposited
by the concerned NGOs with the Employees Provident
Fund authority and has not been deposited with the
Respondent Corporation.
8. It is submitted that the Respondent Corporation has fairly
agreed to the name of Mr. Shrikanth Kamble to be appointed,
however considering the task at hand, in case a need so
arises that an additional officer be appointed to assist in
hastening the process, the Respondent Corporation may be
permitted to appoint an additional officer.
9. As per the public notice dated 02.09.2025, the camps are
being arranged from 03.09.2025 to 17.09.2025 by the
Respondent Corporation for the workers who have not
reported / identified by investigating officer. From a total of
379 workers unidentified workers, only 2 workers have
reported in the camps till date.”
8. Insofar as the direction to appoint Mr. Shrikant Kamble,
former Deputy Auditor of the BMC (now retired) as the Auditor
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 15 of 19
for the purpose of looking into calculations of the dues of the
concerned workmen currently working, has been accepted by
the BMC. As such it is directed that Mr. Kamble (in short
referred to as the ‘Auditor’)be entrusted with the job of making
the necessary calculations as required with respect to each of
the employees currently working, after making due verification
from the records and the material which may be placed before
him and to submit his report to the corporation with a copy
marked to the petitioner union.
9. The BMC shall proceed to comply with the calculation as may
be determined by the Auditor and to ensure payment of the
outstanding dues, if any, to each of the employees. The
amount quantified shall be paid within a period of 4 weeks
from the date of submissions of his reports.
10. The emoluments of the Auditor for carrying out the above
exercise would be determined and be paid by the BMC without
fail.
11. The scope of enquiry to be conducted by the Auditor, apart
from making the calculations with respect to the emoluments
admissible to each of the employees currently working would
also include the following. He will also examine statements of
the workers’ pay with due regard to the pay slips and other
benefits, as extended to their counterpart permanent workers
on a similar basis. He shall further take into consideration
wage agreements, circulars, notifications etc. issued by the
BMC from time to time for determining the wages and other
service conditions of identically situated permanent workers.
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 16 of 19
12. The Auditor shall further be provided with all attendance
records of the workmen by the BMC. Thereafter, the Auditor,
after providing due opportunity to the employees to furnish
their bank account statements, passbooks, or any other
documents, to prove that they have worked during any period
for which attendance is either shown to be zero or is not
available, shall proceed with the assessment. The Auditor shall
thereafter prepare detailed break-up charts providing monthly
overview of amounts payable. With the help of the aforesaid
documents, the Auditor shall determine the payable difference
under each head, total arrears, and the amounts outstanding,
if any.
13. Another aspect to be examined in the enquiry by the Auditor
would be the recovery of payments said to have been made by
the BMC in excess of the entitlement paid to some of the
employees, against whom recovery notices have already been
issued. After providing an opportunity of hearing to the
concerned employees against whom notices have been issued,
the Auditor shall consider as to whether such recovery can be
effected or not, and whether any excess amount has actually
been paid.
14. Two other issues have been highlighted by the petitioner in the
note. Firstly, there has been a delay in the payment of gratuity,
for which the employees are entitled to statutory interest as
per section 7(3A) of the Payment of Gratuity Act, 1972, from
the date it is admissible until the date the full amount is
actually paid as per the statutory provisions. The issue of
gratuity computation can be determined once the attendance
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 17 of 19
records are received by the Auditor and break-up charts are
prepared.
15. Last issue raised is with respect to payment of outstanding
Provident Fund. It has been stated in the note that, despite
deduction having been made from the workers’ wages, the
BMC failed to deposit its matching employer’s contribution.
The Employees’ Provident Fund Officer passed an order dated
21.12.2003 recording a finding that an amount of Rs. 228
Crores approximately had not been transferred to the
accounts of the concerned workers, and accordingly, directed
the BMC to deposit the said amount.
16. This matter is already seeking attention before the Bombay
High Court in Writ Petition (L) No. 6897 of 2024, filed by the
BMC, challenging the order dated 21.12.2023. In the said
petition, the petitioner union has filed an impleadment
application in order to place the correct facts before the High
Court, since it would be directly affected by the outcome
thereof. The same has been strongly opposed by the BMC. The
petitioner has further requested that this Court may consider
issuing a direction that the petitioner union be heard in the
petition pending before the High Court.
17. We are afraid that no such order needs to be passed as the
High Court itself would be competent to decide as to whether
the impleadment of the petitioner is necessary or not. Since
the impleadment application is still pending consideration, we
do not wish to in any way influence the said proceedings. The
High Court would take an appropriate call on the merits of the
application.
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 18 of 19
18. With the aforesaid directions, the matter stands closed.
Notices are discharged. Consign to record.
19. We leave it open to the parties to approach this Court again as
and when further clarification or modification or directions are
required.
20. Pending applications, if any, are disposed of.
21. MA 1807/2018 stands disposed of.
………….........................J.
[VIKRAM NATH]
…………..........................J.
[SANDEEP MEHTA]
NEW DELHI
OCTOBER 13, 2025
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 19 of 19
Reportable
IN THE SUPREME COURT OF INDIA
CIVIL ORIGINAL JURISDICTION
CONTEMPT PETITION (C) NO. 1264 OF 2018
in
CIVIL APPEAL NO. 4929 OF 2017
KACHARA VAHATUK SHARAMIK SANGH …PETITIONER(S)
VERSUS
AJOY MEHTA & ORS. …RESPONDENT(S)
WITH
MA 1807/2018 in C.A. No. 4929/2017
J U D G M E N T
VIKRAM NATH,J.
1. The present contempt petition was filed by respondents to the
Civil Appeal No. 4929 of 2017 for non-compliance of the
judgment and order dated 07.04.2017, whereby this Court
had modified the award of the Industrial Tribunal, Mumbai
dated 13.10.2014 as confirmed by the High Court, vide
judgment and order dated 22.12 2016 passed in Writ Petition
No. 11519 of 2014. The Industrial Tribunal by the aforesaid
Signature Not Verified
award had directed the Municipal Corporation of Greater
Digitally signed by
SONIA BHASIN
Date: 2025.10.14
11:48:50 IST
Reason:
Mumbai, the appellant before this Court, to treat 2700
employees of the said corporation as permanent employees
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 1 of 19
and accordingly to extend benefits and status retrospectively
from the date of completion of 240 days from the date of
joining. This Court, vide the aforesaid judgment and order
modified the award to some extent and substantially agreed
with the relief granted by the Industrial Tribunal. For the sake
of convenience, the judgment of this Court dated 07.04.2017
is reproduced hereunder:
“1. Heard the learned counsel for the parties at length.
2. Leave granted.
3. This appeal by special leave is against the judgment and
order dated 22.12.2016 of the High Court of Judicature
at Bombay in Writ Petition No. 11519 of 2014 whereby
the High Court dismissed the Writ Petition filed by the
Municipal Corporation of Greater Mumbai and Anr. and
granted three months' time to the Corporation to
implement the Award dated 13.10.2014 passed by the
Industrial Tribunal directing the appellant to treat 2700
employees as permanent employees and accordingly to
extend benefits and status retrospectively from the date
of completion of 240 days from the date of joining.
Hence, the appeal.
4. In our opinion and in the facts and circumstances as
posts are required to be created, it would be
appropriate to grant monetary relief w.e.f. the date
of Award i.e. 13.10.2014 . Actual monetary benefit to
be given from the date of the Award to the employees
who are still serving.
5. However, learned counsel for the parties agreed that
the permanent status as a special case be conferred
to those employees who had died in service or
permanently incapacitated till today w.e.f. the date
as ordered by the Industrial Tribunal. Let relief be
given as agreed .
6. However, for the purpose of notional fixation, benefit
shall be given from the date ordered by the Industrial
Court to all the employees, which has been affirmed by
the High Court. Only exception is with respect to
employees who have died/ permanently
incapacitated and as per aforesaid agreement
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 2 of 19
recorded, they will be entitled to the actual benefit
w.e.f. the date which has been ordered by the
Industrial Tribunal .
7. It was also stated before us that verification process of
2700 employees had been undertaken pursuant to the
interim order passed by the High Court. It was found
that only 1600 employees were actually available. With
respect to remaining workers verification could not be
made. Thus, the order which has been passed with
aforesaid modification shall be applicable with respect
to the employees who were verified. With respect to
remaining employees whose verification could not
be made earlier, fresh exercise shall be undertaken.
Verification process shall be undertaken with the
help of Corporation and Union by the Industrial 3
Investigating Officer of the Industrial Court within a
period of six months from today and in case any of
the employees is verified, he shall also be entitled to
the relief in terms of the order which has been
passed by us. In case he has not served, he will not
be paid for that period.
8. This order shall not be treated as a precedent as by and
large, it is based on consensus.
9. The appeal stands partly allowed accordingly. The order
of the Industrial Tribunal as affirmed by the High Court
shall stand modified to the above extent.
10. No costs.”
The basic modifications made by the aforesaid judgment
have been highlighted in bold.
2. The contempt proceedings have been pending since 2018.
However, when compliance was not effected despite repeated
orders being passed granting time to the Brihanmumbai
Municipal Corporation (for short, “the BMC”), this Court, vide
order dated 05.03.2024 found that there was substantial non-
compliance of the judgment of this Court dated 07.04.2017,
and accordingly directed the personal appearance of the
Municipal Commissioner, the Deputy Commissioner (SWM),
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 3 of 19
and the Chief Engineer (SWM) on 19.03.2024. Liberty was also
granted to the Municipal Commissioner to file up-to-date
details of the compliance effected till date.
3. On 19.03.2024, the three officers of the BMC appeared before
this Court and filed an affidavit placing on record the status of
compliance. Once again, this Court, after briefly recording the
contents of the affidavits and hearing the counsel for the
parties, issued further directions, fixing the next date as
23.04.2024. The personal appearance of the Municipal
Commissioner was exempted for the time being. However, the
Deputy Commissioner (SWM) and the Chief Engineer (SWM)
were directed to remain present on the next date of hearing.
4. The matter was thereafter taken up on different dates, and a
detailed order was passed on 30.04.2024, wherein further
issues were considered and creased out, and the BMC was
again directed to file a fresh compliance affidavit, and the next
date of hearing was fixed as 17.05.2024. Thereafter, the matter
has been taken up on several dates, namely, 17.05.2024,
29.07.2024, 27.09.2024, 20.12.2024, 19.02.2025,
18.03.2025, 30.04.2025, 08.09.2025, 15.09.2025 and
16.09.2025.
5. A perusal of the above-mentioned orders would show that
BMC has been making genuine efforts to ensure compliance
with the directions, and substantial compliance has in fact
been effected, as submitted by Ms. Rohini Thyagarajan,
learned counsel appearing for the petitioner. On 16.09.2025,
when the matter was heard, Ms. Rohini not only made the
submissions but also placed before this Court a brief note as
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 4 of 19
to what aspects were still required to be done. Further, Mr.
Dhruv Mehta, learned senior counsel appearing for the officers
of the BMC had placed his response to the same. The matter
was thereafter reserved for orders, primarily to issue such
further directions as may be necessary, considering the note
submitted on behalf of the petitioner and the response
submitted by the respondents.
6. The brief note submitted on behalf of the petitioner union is
reproduced hereinbelow:
“A. Appointment of Officer to examine certain issues
1. By an Order dated 20th March 2025, this Hon'ble Court
inter alia observed as under:
"The parties may also consider identifying a retired
Class-I officer of the Government or from the
Corporation, who may have in-depth knowledge in
the calculation of wages/salaries etc."
2. Pursuant to the aforesaid direction, the Petitioner on 2nd
April 2025 addressed an email to the Respondents
proposing the name of Mr Shrikant Kamble, former Deputy
Auditor of the Respondent Corporation (now retired) for the
purpose of looking into calculations of the dues of the
presently concerned workmen. The Respondent
communicated its approval of the said proposal by an email
dated 28th April 2025.
3. The aforesaid retired officer assumed charge soon
thereafter. The Petitioner has since been addressing letters
to the Corporation requesting it to provide information as
to the progress made by the officer in the matter of
examining the calculations of workers' dues and
ascertaining the extent of amounts due, paid and
outstanding (Letters at Pg. hereto). There has till date been
no response thereto and the Petitioner remains in the dark.
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 5 of 19
4. The Petitioner proposes that this Hon'ble Court consider
outlining:
a. The tasks to be undertaken by the said officer [as outlined
for consideration hereinbelow from (B) to (D)] and
b. Fix a time frame for the completion thereof.
B. Incorrect fitment of workers' wages
5. The Petitioner has noticed from the break-up charts
furnished by the Corporation, as also from workers' pay
slips that in numerous instances workers' basic wages have
been fixed in disregard of their initial dates of appointment
(i.e., in 2005-2006).
6. This incorrect fixation of the workers' pay adversely
impacts a range of their entitlements total arrears
admissible, seniority, promotions and all consequential
retiral benefits.
7. Proposed Resolution:
a. The Auditor to re-examine fitment of the workers' pay by
having regard to the wage scales and other benefits, as
extended to their counter-part permanent workers having
similar or identical years of service.
b. In this process, the Auditor shall consider wage
agreements, circulars, notifications, etc issued by the
Corporation from time-to-time for determining the wages
and other service conditions of identically situated
permanent workers.
C. Discrepancies in the break-up charts furnished by the
Corporation
8. That while scrutinising the break-up charts furnished by
the Corporation in September 2024, the Petitioner noticed
glaring and irreconcilable discrepancies. For one, in a large
number of cases, it was found that though the attendance
for several months was continuously shown to be 'ZERO' -
and as a result nothing admissible for these periods upon
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 6 of 19
verifying with the bank account statements of individual
workers, it was found that they had been paid minimum
wages for the work rendered by them during such periods.
This aspect was brought to the Corporation's attention in
several meetings held with its officers, who have
acknowledged that on this count the break-up charts are
required to be re-worked.
9. Further, as explained hereinabove, the workers'
entitlements must be worked out with reference to their
correctly fixed pay and after accounting for their
outstanding leave (since earned leave at the rate of 30 days
each year is admissible). Thus, the break-up charts would
have to re-worked additionally considering these aspects of
the matter.
10. Proposed Resolution:
a. The Corporation shall make available all attendance
records of the workmen herein to the Auditor, who shall
then provide each workman concerned an opportunity to
furnish their bank account statements / passbooks / any
other documents as proof that they worked during any
period(s) for which their attendance is either shown to be
'ZERO' or is not available.
b. The Auditor shall thereafter prepare break-up charts
providing a monthly overview of amounts payable (as a
permanent worker, appropriately fixed at the pay scales
obtaining from time-to-time), paid (as per what was paid at
the relevant time), the payable difference under each head,
total arrears and amounts outstanding, if any. This shall
be calculated for the period up until July 2025.
D. Recoveries of payments stated to be made in excess of
entitlement
11. Recovery notices issued to workers from earliest verified
batch of 1600 (approx.). That for the first time in December
2024 / January 2025, more than 859 workers from the
batch of approximately 1600 workers, have been issued
notices from the Respondent Corporation claiming that
excess amounts were paid to them earlier and that,
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 7 of 19
therefore, such amounts are now recoverable. (point to be
made about legal heirs)
12. That the liberty granted by this Hon'ble Court by its Order
dated 27th September 2024 was in the context of payments
recently made by the Corporation pursuant to Orders
passed by this Hon'ble Court and not to go back in time
and recover from amounts paid nearly 5-6 years back i.e.,
from 2018-2019, which were, admittedly, paid by the
Corporation after examining the attendance records for the
period from 2014 onwards (Corporation's Affidavit dt.
19.04.2024, Pg. 11-12, Paras 9- 10).
13. That in any event, no recovery from any worker (whether
paid recently in 2024-2025 or earlier) can be made prior to
all attendance records (and where such records are not
available, proof of minimum wage payments received by the
workmen concerned), correct pay fixation, leave
encashment etc. having been accounted for, and revised
break-up charts prepared.
14. Proposed Resolution: In light of the above, no recoveries
shall be made until after the Auditor prepares individual
break-up charts and the same is made available to each
individual workman. It will be open to the Petitioner /
worker concerned, to adopt appropriate proceedings, where
aggrieved by the Auditor's tabulation.
E. Designation of an officer within the Corporation for
smooth implementation
15. The Deputy Municipal Commissioner (Solid Waste
Management Department), who has been reporting to this
Hon'ble Court from time- to-time in respect of ongoing
compliances, be designated as the Officer tasked with
overseeing the resolution of outstanding issues and
ensuring that the directions passed by this Hon'ble Court
are given effect to in a time-bound manner by taking
appropriate administrative decisions.
F. Delayed payment of gratuity
16. That the Corporation had never disputed that the Order
dated 7th April 2017 of this Hon'ble Court required it to
extend all consequential benefits from the date as ordered
by the Award of the Industrial Tribunal, Mumbai to all
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 8 of 19
workers who had died, retired or become incapacitated.
Despite this, it is only 7 years thereafter from April/May
2024 onwards, pursuant to Orders passed by this Hon'ble
Court, that the Respondent started making payments
towards pension and gratuity. This is evidenced from the
Corporation's own payment charts shared with the
Petitioner.
17. That the workers concerned / their legal heirs have been
put to severe economic hardship as a result and, thus,
deserve to be granted recompense. So far as gratuity is
concerned, Section 7 (3A) of the Payment of Gratuity Act,
1972 unequivocally stipulates that in the event that
gratuity is not paid within 30 days of death / retirement,
an employer is liable to pay interest thereon from the date
on which it becomes payable till the date of payment.
18. That in the circumstances, this Hon'ble Court consider
directing Corporation to pay statutory interest as provided
for under Section 7 (3A) of the Payment of Gratuity Act,
from the date of the concerned worker's death /
disablement / retirement till the date on which the full
amount due by way of gratuity has been disbursed by the
Corporation.
G. Payment of Provident Fund amounts accrued or
accumulated
19. That for the period prior to when the workers herein started
to receive wages and other emoluments as permanent
employees of the Corporation, they were receiving statutory
minimum wages. From August 2009 onwards, the
Corporation made applicable to the workmen herein the
provident fund scheme under the Employees Provident
Fund Act, 1952. Accordingly, every month statutory
deductions were made from workers' minimum wages
towards the 'employees' component of PF. These, along with
the matching employer's contribution were routed through
NGOs (which kept changing every 6-8 months and were
declared 'sham and bogus' in terms of the Industrial
Tribunal's Award) to be deposited in each member
workmen's EPF accounts. The Respondent Corporation
being the "employer" of the each of the workmen concerned
herein, is statutorily liable under the EPF Act to ensure that
they are paid the entirety of their Provident Fund
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 9 of 19
contributions (comprising the employer's and employee's
components) for the aforesaid period.
20. That over time it was found that deductions made from
workers' wages and matching employer's contributions
were not being deposited with the EPFO. By an order dated
21s December 2023, in proceedings initiated by the EPFO
upon a complaint made by the Petitioner, it was held that
an amount of Rs. 228,07,21,559/- is not transferred in the
accounts of the workers concerned herein (as also several
others) and directed that the Respondent Corporation
deposit such amount. This Order is the subject matter of a
pending Writ Petition (L) No. 6897 of 2024 filed by the
Respondent in the Hon'ble High Court of Bombay, which by
an Order dated 22nd February 2024 directed that "till the
next date no coercive steps shall be taken in pursuance of
the impugned Order dated 21 December 2023"
[Corporation's Affidavit dt. 27.07.2024 Pg. 14-15 & Pg. 25].
The Petitioner Union has filed I.A. No. 6977 of 2024 seeking
to be impleaded in the aforesaid Writ Petition, as a party
directly affected by the outcome thereof. However, the
Respondent Corporation has filed an Affidavit-in-Reply
thereto opposing such prayer.
21. That the Respondent Corporation has resisted addressing
the issue of outstanding PF amounts in these proceedings,
citing the pendency of the aforesaid matter in the Hon'ble
High Court. In these circumstances, this Hon'ble Court
may consider directing that the Petitioner Union be heard
in the Petition pending before the Hon'ble High Court and
all remedied available to it to recover workers' PF be left
open, lest the workers concerned herein be left remediless
in the matter of their outstanding PF dues.”
7. The response of the BMC to the aforesaid note submitted by
the petitioner is reproduced hereinbelow:
1. Appointment of Officer (Points. 1-4 of the note submitted by
the Petitioner) :
By an order dated March 20, 2025, this Hon'ble Court
directed the parties to identified a retired Class-I officer with
expertise in wage and salary calculations. In consultation
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 10 of 19
with the Petitioner Union, the name of Shri. Shrikant Kamble,
a Retired Deputy Municipal Chief Auditor has been agreed by
the parties to be appointed by this Hon'ble Court. The
concerned officer has been asked to provide a progress report
and will schedule a joint meeting with the Petitioner Union at
the earliest to discuss the modalities of their participation
and representation, and to provide a timeline for the
completion of the audit. The Respondent Corporation is
committed to a transparent and speedy resolution of the
present matter.
2. Incorrect Fitment of Workers' Wages (Points.5-7 of the note
submitted by the Petitioner) :
a. The note states that the basic wages for numerous workers
have been incorrectly fixed without considering their initial
appointment dates in 2005-2006. This has adversely
affected their entitlements, including arrears, seniority,
promotions, and retirement benefits.
b. It is submitted that the fixation is done considering their
initial appointment and notional fixation has been given
till 13.10.2014 and in accordance with the relevant
notification and circulars of the Corporation. Considering
their attendance further fixation has also been considered.
c. The appointed officer will be provided with the attendance
records which has already been provided to the Petitioner
Union so that he can resolve any discrepancy in terms of
calculation, etc.
d. It is the understanding of the Corporation that the
concerned officer which may be appointed by this Hon'ble
Court is for the purposes of resolving discrepancies, if any
in the calculation of wages and arrears considering his
expertise in the said field. It is further the understanding
of the Corporation that the said officer is not to assume
any adjudicatory function or replace the decision-making
process of the Corporation or this Hon'ble Court.
3. Discrepancies in Break-up Charts (Points. 8-10 of the note
submitted by the Petitioner) :
a. The Petitioner Union points out discrepancies in the break-
up charts, specifically mentioning cases where workers
were paid minimum wages despite their attendance being
recorded as "ZERO" for several months. They propose that
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 11 of 19
the break- up charts be re-worked to include correct pay
fixation and outstanding leave.
b. It is submitted that the breakup charts were already
shared with the Petitioner Union in September 2024. It was
already informed to the Petitioner as well as mentioned in
the affidavit dated 17.02.2025 that on submission of the
documents showing the evidence of attendance to the
respective ward office, the discrepancy if any, in the
breakup charts can be resolved. However, the appointed
officer will be asked to verify available attendance records.
Workers can also be given the opportunity to submit their
bank account statements or other proof to verify work
rendered during periods with missing or zero attendance
records. The officer will then prepare revised break-up
charts, which will include monthly overviews of all payable
amounts after considering the bank statements submitted
by workers, if any.
4. Recoveries of Excess Payments (Points. 11-14 of the note
submitted by the Petitioner) :
a. The note raises concerns about the Corporation issuing
recovery notices to workers for the excess payments made
as far back as 2018-2019. The Petitioner states that no
recovery should be made until the revised break-up charts
are prepared and made available to the workers.
b. It is submitted that the appointed officer can prepare
individual, revised breakup charts for each workman and
will provide a report within a period of 2 months from his
appointment for those whose workers who have received
excess amounts. This Hon'ble Court has already
considered the said situation and has passed an order
dated 27.09.2024, the relevant portion of the said order is
as follows:)
"However, we are of the view that in case any excess
amount has been paid by the Corporation, the
Corporation will have a right to recover it but only
after routing it through the petitioner-Association
and in a reasonable manner on month to month
basis from the salary of the employees."
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 12 of 19
c. Where the record of the workers are available, the
Corporation shall recover the excess amounts in the
manner prescribed by this Hon'ble Court vide order dated
27.09.2024.
d. Where the records are not available, no further recoveries
will be made until the appointed officer has prepared
individual, revised break-up charts for each workman and
these have been made available to them i.e. within a period
of 2 months.
e. In so far as, the pension claims of workers are concerned
whose claims are pending verification (due to non-
submission of requisite documents), the same will be
processed after considering all the excess/outstanding
payments.
5. Designation of an Officer for Implementation (Point 15 of
the note submitted by the Petitioner) :
a. The Petitioner Union states that the Deputy Municipal
Commissioner (Solid Waste Management Department) be
formally designated to oversee the resolution of the
outstanding issues and ensure timely implementation of
the court's directions.
b. It is submitted that the Deputy Municipal Commissioner
(Solid Waste Management Department) is already closely
monitoring the progress of the compliance of the orders
passed by this Hon'ble Court. It will be further be ensured
that all directions passed by this Hon'ble Court are
implemented in a time-bound and effective manner.
c.
6. Delayed Payment of Gratuity (Points.16-18 of the note
submitted by the Petitioner):
a. It is submitted that entitled /eligible workers have already
been paid the applicable gratuity amounts along with the
pension claims and the same shall be done for the workers
who have received ad-hoc amounts towards pension and
gratuity.
b. It is submitted that keeping in view that no economic
hardships be caused to the workers, Respondent
Corporation had disbursed ad-hoc amounts towards
gratuity along with the pension claims of the respective
workers.
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 13 of 19
c. It is further submitted that the process of calculation of
pension and gratuity required some time as the documents
were to be submitted by the concerned ex-employees or
their legal heirs for disbursal of the actual pension and
gratuity amounts. Therefore, there has been no intentional
delay by the Respondent Corporation in the said process.
The following are the challenges faced by the Respondent
Corporation in calculation of the actual payable amounts
towards gratuity:
i. Minimum Qualifying Service Requirement : Gratuity
under the Act requires a minimum of five years of
qualifying service. Determining the qualifying service
was essential service period accurately is essential
before any payment can be made.
ii. Attendance-Based Calculation:
Gratuity computation depends on verified attendance
records from the date of appointment until
superannuation or death of the concerned employee.
These records were summoned from various wards and
departments and then calculations were done for
verifying the period of qualifying service. The Petitioner
Union has disputed attendance records of certain
workers, therefore the gratuity amount can also be
calculated once the employee submits bank
statements, etc. as already mentioned in Point No. 3 of
the present note.
iii. Delayed Submission of Documents by Workers or
their Legal Heirs :
In several cases, the employees or their legal heirs have
submitted the required documents after a long delay
further delaying the verification and calculation
process. The documents from 130 workers or their
legal heirs have not been received till date.
iv. Loans availed by the Workers:
In several cases, the employees have taken huge
amounts of loans from Municipal Co-operative Bank
and the said amounts are required to be adjusted
towards their pension and gratuity claims.
Hence, the issue of paying interest may not arise in the facts
and circumstances of the present case.
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 14 of 19
7. Payment of Provident Fund (PF) Amounts (Points. 19-21 of
the note submitted by the Petitioner):
a. The union raises the issue of approximately Rs. 228 crores
in PF contributions not being transferred to the workers'
accounts. It also notes that the corporation has resisted
addressing this issue, citing a pending writ petition in the
High Court of Bombay where the union's request to be
impleaded has been opposed. The union requests the
court's direction to be heard in the High Court petition.
b. It is submitted that the Petitioner Union is well aware of
the fact that the issue of outstanding Provident Fund
amounts is currently sub-judice in a Writ Petition No. 553
of 2024 pending before the Hon'ble High Court of Bombay.
The same has been brought to the notice of this Hon'ble
Court by way of an affidavit dated 27.07.2024 where in
Corporation has stated that it will comply with the final
decision of the Hon'ble High Court regarding Provident
Fund payments.
c. Since the said workers in the present contempt petition
were contractual employees working with NGOs, prior to
orders dated 07.04.2017 passed by this Hon'ble Court, the
Provident Fund Amount of the said workers is deposited
by the concerned NGOs with the Employees Provident
Fund authority and has not been deposited with the
Respondent Corporation.
8. It is submitted that the Respondent Corporation has fairly
agreed to the name of Mr. Shrikanth Kamble to be appointed,
however considering the task at hand, in case a need so
arises that an additional officer be appointed to assist in
hastening the process, the Respondent Corporation may be
permitted to appoint an additional officer.
9. As per the public notice dated 02.09.2025, the camps are
being arranged from 03.09.2025 to 17.09.2025 by the
Respondent Corporation for the workers who have not
reported / identified by investigating officer. From a total of
379 workers unidentified workers, only 2 workers have
reported in the camps till date.”
8. Insofar as the direction to appoint Mr. Shrikant Kamble,
former Deputy Auditor of the BMC (now retired) as the Auditor
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 15 of 19
for the purpose of looking into calculations of the dues of the
concerned workmen currently working, has been accepted by
the BMC. As such it is directed that Mr. Kamble (in short
referred to as the ‘Auditor’)be entrusted with the job of making
the necessary calculations as required with respect to each of
the employees currently working, after making due verification
from the records and the material which may be placed before
him and to submit his report to the corporation with a copy
marked to the petitioner union.
9. The BMC shall proceed to comply with the calculation as may
be determined by the Auditor and to ensure payment of the
outstanding dues, if any, to each of the employees. The
amount quantified shall be paid within a period of 4 weeks
from the date of submissions of his reports.
10. The emoluments of the Auditor for carrying out the above
exercise would be determined and be paid by the BMC without
fail.
11. The scope of enquiry to be conducted by the Auditor, apart
from making the calculations with respect to the emoluments
admissible to each of the employees currently working would
also include the following. He will also examine statements of
the workers’ pay with due regard to the pay slips and other
benefits, as extended to their counterpart permanent workers
on a similar basis. He shall further take into consideration
wage agreements, circulars, notifications etc. issued by the
BMC from time to time for determining the wages and other
service conditions of identically situated permanent workers.
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 16 of 19
12. The Auditor shall further be provided with all attendance
records of the workmen by the BMC. Thereafter, the Auditor,
after providing due opportunity to the employees to furnish
their bank account statements, passbooks, or any other
documents, to prove that they have worked during any period
for which attendance is either shown to be zero or is not
available, shall proceed with the assessment. The Auditor shall
thereafter prepare detailed break-up charts providing monthly
overview of amounts payable. With the help of the aforesaid
documents, the Auditor shall determine the payable difference
under each head, total arrears, and the amounts outstanding,
if any.
13. Another aspect to be examined in the enquiry by the Auditor
would be the recovery of payments said to have been made by
the BMC in excess of the entitlement paid to some of the
employees, against whom recovery notices have already been
issued. After providing an opportunity of hearing to the
concerned employees against whom notices have been issued,
the Auditor shall consider as to whether such recovery can be
effected or not, and whether any excess amount has actually
been paid.
14. Two other issues have been highlighted by the petitioner in the
note. Firstly, there has been a delay in the payment of gratuity,
for which the employees are entitled to statutory interest as
per section 7(3A) of the Payment of Gratuity Act, 1972, from
the date it is admissible until the date the full amount is
actually paid as per the statutory provisions. The issue of
gratuity computation can be determined once the attendance
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 17 of 19
records are received by the Auditor and break-up charts are
prepared.
15. Last issue raised is with respect to payment of outstanding
Provident Fund. It has been stated in the note that, despite
deduction having been made from the workers’ wages, the
BMC failed to deposit its matching employer’s contribution.
The Employees’ Provident Fund Officer passed an order dated
21.12.2003 recording a finding that an amount of Rs. 228
Crores approximately had not been transferred to the
accounts of the concerned workers, and accordingly, directed
the BMC to deposit the said amount.
16. This matter is already seeking attention before the Bombay
High Court in Writ Petition (L) No. 6897 of 2024, filed by the
BMC, challenging the order dated 21.12.2023. In the said
petition, the petitioner union has filed an impleadment
application in order to place the correct facts before the High
Court, since it would be directly affected by the outcome
thereof. The same has been strongly opposed by the BMC. The
petitioner has further requested that this Court may consider
issuing a direction that the petitioner union be heard in the
petition pending before the High Court.
17. We are afraid that no such order needs to be passed as the
High Court itself would be competent to decide as to whether
the impleadment of the petitioner is necessary or not. Since
the impleadment application is still pending consideration, we
do not wish to in any way influence the said proceedings. The
High Court would take an appropriate call on the merits of the
application.
CC NO. 1264 OF 2018 in AC NO. 4929 OF 2017 Page 18 of 19
18. With the aforesaid directions, the matter stands closed.
Notices are discharged. Consign to record.
19. We leave it open to the parties to approach this Court again as
and when further clarification or modification or directions are
required.
20. Pending applications, if any, are disposed of.
21. MA 1807/2018 stands disposed of.
………….........................J.
[VIKRAM NATH]
…………..........................J.
[SANDEEP MEHTA]
NEW DELHI
OCTOBER 13, 2025
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