The High Court of Judicature at Bombay has mandated that the Sinhgad Technical Education Society (STES) must settle outstanding salary arrears totaling approximately ₹21 crore for 772 former employees by August 31, 2026. This directive comes as part of a rigorous legal intervention led by a division bench comprising Justice G. S. Kulkarni and Justice Aarti Sathe, who expressed profound concern over the persistent financial hardship faced by the institution’s teaching and non-teaching staff.

The court’s order addresses a massive influx of litigation involving over 70 connected writ petitions and contempt proceedings. The bench emphasized that the failure to disburse salaries for prolonged periods—in some instances exceeding 22 months—constitutes a grave breach of the fundamental rights of employees. During the proceedings, the bench underscored the constitutional imperatives of the case, noting that the non-payment of earnings directly violates the fundamental rights guaranteed under Articles 14 and 21, alongside Article 19(1)(g) of the Constitution.

The court observed: “The non-payment of salaries is something which directly breaches the very basic fundamental rights guaranteed to the petitioners under Article 14 and 21 of the Constitution read with Article 19(1)(g) of the Constitution. No person or institution having regard to the rule of law, can so brazenly violate the rights of the employees in such a manner.”

Human Cost of Financial Instability The judicial intervention has brought to light the devastating human consequences of the prolonged payment crisis. Counsel for the petitioners informed the court that the financial strain has pushed many staff members, including Class IV employees, to extreme measures, with reports of suicides linked to the prolonged deprivation of livelihood. The bench, acknowledging these grim submissions, characterized the ongoing proceedings as extraordinary, stating that the matters affect the very survival of the workforce.

The court explicitly stated its inability to accept a scenario where those employed in the education sector must exhaust their time in court simply to secure their basic livelihood. By setting an firm deadline of August 31, 2026, for the payment of the ₹21 crore owed to terminated and resigned staff, the court has demanded that the STES formalize its commitment through an affidavit. This document, to be filed by the contemnors, must serve as a binding undertaking to ensure compliance, with the court warning that any further lapses would be treated with the severity warranted by the pending contempt petitions.

Scrutiny of Institutional Governance The litigation also touches upon the relationship between the STES and the Maharashtra government, particularly concerning the reimbursement of tuition fees for reserved category students. The court has directed the Joint Director of Education to file a comprehensive affidavit by August 3, 2026, detailing the developments since a coordinate bench's previous order in July 2025. This move aims to determine whether the financial woes of the institution are truly linked to state funding gaps or are a result of mismanagement.

The bench issued a strict warning to the authorities involved, cautioning against any lacunae in the forthcoming affidavit . "We also sound a note of caution that the affidavit has to be a proper affidavit and which ought not to have any lacunae for any reason whatsoever, so that any shortcomings in the affidavit are not required to be attributed to concealing of any materials from the Court," the judges remarked. The court has signaled that it will, if necessary, isolate the issues of employee salary payments from the broader financial dispute between the STES and the government to ensure that the staff receives their dues without further delay.

Path Toward Final Resolution The court has scheduled the next hearing for August 5, 2026, at 3:00 p.m., intending to hear the matters on a day-to-day basis to reach a final resolution. The bench has required the presence of the Joint Director of Education and the contemnor in court on that date to facilitate a prompt conclusion.

As an immediate measure of relief for current employees in dire financial straits, the court issued specific instructions in Writ Petition No. 4731 of 2026, directing the petitioner to approach the management within two days. The institution is expected to act swiftly to release at least a portion of the overdue salary to alleviate the petitioner's precarious financial position. This localized order highlights the court's intention to provide interim relief where urgency is demonstrated, while the broader, complex tangle of petitions is systematically resolved through a standardized reporting process.

The court’s approach reflects a firm stance on the duty of educational institutions to prioritize the welfare of their employees over administrative or financial disputes. By refusing to treat these cases as routine service matters, the High Court has elevated the dispute to a matter of constitutional accountability, insisting that the rule of law must prevail in the administration of the Sinhgad Technical Education Society’s affairs. The upcoming sessions are expected to focus heavily on the verification of payment claims and the accountability of the society’s leadership in failing to adhere to past judicial directives.