Bombay High Court

Temporary employees are entitled to minimum pay scales of corresponding regular posts but not permanency.

University of Mumbai and Others v. Amit S. Bagul & Others [2026:BHC-OS:6574]

Bombay High Court3 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Respondents were engaged by the Petitioner-University as temporary employees in various non-teaching posts (Peons, Clerks, etc.) for several years

Source reference: p.2-3

In June 2017, the Respondents filed a complaint alleging unfair labour practices and seeking regularisation

Source reference: p.3

Simultaneously, the University issued a circular on June 30, 2017, discontinuing their services

Source reference: p.3

The Industrial Court, Mumbai, vide order dated November 28, 2023, found the University guilty of unfair labour practices under Item 6 of Schedule IV of the MRTU & PULP Act, 1971

Source reference: p.4-5

The Industrial Court directed reinstatement with full backwages and equal pay at par with permanent employees from the date of joining

Source reference: p.15-16

The Petitioner challenged this order, arguing the Respondents were tenure appointees and that the court lacked jurisdiction

Source reference: p.5-6
02

Issues

Whether the Industrial Court had jurisdiction to decide on termination and reinstatement when the complaint was filed under Items 5, 6, and 9 of Schedule IV of the MRTU & PULP Act

Source reference: p.21-22

Whether the discontinuation of the Respondents' services amounted to illegal retrenchment in violation of Sections 25F and 25G of the Industrial Disputes Act, 1947

Source reference: p.22-23

Whether temporary employees are entitled to equal pay and backwages from their initial date of joining despite the law of limitation

Source reference: p.29-30
03

Law Applied

The court primarily applied the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices (MRTU & PULP) Act, 1971, specifically Item 6 of Schedule IV regarding the exploitation of temporary workers

Source reference: p.16

It relied on the principle from *State of Punjab v. Jagjit Singh (2017)*, establishing that temporary employees are entitled to the minimum of the pay scale (entry-level pay plus DA) applicable to regular posts, but not increments or total parity

Source reference: p.35-41

Regarding limitation, it applied *Union of India v. Tarsem Singh (2008)* and *M.R. Gupta v. Union of India (1995)*, holding that while pay fixation is a continuous cause of action, recovery of arrears is restricted by the period of limitation

Source reference: p.29-30

It also applied Sections 25F and 25G of the Industrial Disputes Act, 1947, regarding the necessity of notice and compensation for retrenchment

Source reference: p.26-27
04

Reasoning

The Court upheld the Industrial Court’s jurisdiction, noting that since the termination occurred during the pendency of a complaint for permanency, the Industrial Court could grant reinstatement to prevent victimisation

Source reference: p.21-22

On merits, the Court found that the University failed to prove the Respondents were strictly "fixed-term" employees under Section 2(oo)(bb) of the ID Act, as no specific tenure orders for all 64 Respondents were produced and they had worked for years

Source reference: p.24-26

However, the Court found the Industrial Court's direction to pay "lowest grade salary" from the date of joining to be legally flawed

Source reference: p.28-29

Following *Tarsem Singh*, the Court held that arrears must be restricted to 90 days prior to the filing of the complaint as per the limitation period prescribed under the MRTU & PULP Act

Source reference: p.34-35

Regarding backwages, the Court noted a total lack of pleading or evidence by the Respondents regarding absence of gainful employment; however, considering the University’s act of sudden discontinuation during litigation, it awarded 50% backwages instead of 100%

Source reference: p.44-47
05

Holding

The Court partly allowed the Writ Petition, modifying the Industrial Court’s order

It sustained the direction for reinstatement but modified the financial relief

Source reference: p.48-49

The Respondents are held entitled to: (i) difference of wages (minimum of pay scale plus DA) for only 90 days prior to the complaint

Source reference: para. 64(ii)

50% backwages from July 5, 2017, to November 28, 2023, based on the entry-level pay scale

Source reference: para. 64(iii)

full salary at the entry-level pay scale from November 29, 2023, until actual reinstatement

Source reference: para. 64(iv)

The University was directed to clear all dues within four months

Source reference: para 64(vi)

Writ Petition No. 2556 of 2019 was disposed of as infructuous

Source reference: p.49
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University of Mumbai and Others v. Amit S. Bagul & Others [2026:BHC-OS:6574]

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