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2023 Supreme(Bom) 2085

IN THE HIGH COURT OF BOMBAY
Sandeep V.Marne, J.
Municipal Commissioner , Pune Municipal - Appellant
Versus
Ashish Laxman Chavan - Respondent
Writ Petition No. 8953 of 2018
Decided On : 03-11-2023

Advocates appeared:
Abhijit Kulkarni, Advocate, Gourav Shahane, Advocate, Krushna Jaybhay, Advocate, Sweta Shah, Advocate, A.S.Rao, Advocate, Prashant Kamble, Advocate

IMPORTANT POINT
[The court established that the payment of Mushahira to employees of the Octroi Department was not a statutory right and required prior approval from the State Government, which was not obtained, thus rendering the Industrial Court's order unsustainable.]

Headnote:

MUSHAHIRA - Municipal Employment Incentives - Maharashtra Municipal Corporations Act, 1949; Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - The court discussed the provisions of the Maharashtra Municipal Corporations Act, particularly Section 51, which governs the salaries and allowances of municipal employees, and the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, which addresses unfair labor practices. The court interpreted that the payment of 'Mushahira' (incentive) was not a right but rather a discretionary payment that required prior sanction from the State Government, which was not obtained. This interpretation influenced the court's decision to set aside the Industrial Court's order for payment of Mushahira, as it was deemed to lack statutory recognition.

JUDGMENT/ORDER

1. Rule. Rule is made returnable forthwith.With the consent of the parties, Petitions are taken up for final hearing and disposal.

2. Pune Municipal Corporation has filed the present petitions challenging the Orders passed by the Industrial Court in various Complaints filed by the Respondent-Employees. The Industrial Court has allowed the complaints of Respondentemployees and has directed the Petitioner-Corporation to pay the amount of 'Mushahira' coming to the share of the Respondent-Employees within a period of three months. 'Mushahira' is sort of 20% incentive payable to employees on the compromise fees recovered from Octroi evaders. The Industrial Court has further directed that interest @ 6% p.a. would be payable on the amount due on failure to pay the same within three months.

3. Petitioner is a Municipal Corporation established under the provisions of Maharashtra Municipal Corporations Act, 1949. Respondents are employees of Pune Municipal Corporation who were posted on various posts in the Octroi Department. The General Body of Municipal Corporation adopted a Resolution in its meeting held on 27/8/1984 resolving that 20% of amount recovered towards the compromise fees from Octroi evaders be paid as Mushahira to the employees apprehending the goods. The Respondents were deployed on the duty of apprehending the Octroi evaders from time to time. It appears that the employees apprehending Octroi evaders were being paid 20% amount of compromise fees towards Mushahira up to the year 2007. From the year 2008-2009, the Municipal Corporation discontinued the system of paying such Mushahira to Octroi employees. The Union therefore made representations dtd. 21/7/2009, 22/1/2010, 12/8/2010 and 25/11/2010 complaining about discontinuation of system of payment of Mushahira. Additionally, the concerned employees also made representations on 17/2/2010 and 25/2/2010. A notice was also served upon the Municipal Corporation through Advocate on 7/12/2010. It appears that the Chief Octroi Officer also requested the Municipal Commissioner for continuation of scheme for payment of 20% Mushahira. However, since the system of payment of Mushahira was not continued, the Union sent letter dtd. 11/3/2013. The employees finally approached the Industrial Court by filing various complaints under Sec. 28(1) of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTP & PULP Act) alleging unfair labour practices on the part of Municipal Corporation and demanding payment of unpaid amount of Mushahira for various periods.

4. For illustrative purposes, it would be appropriate to refer to the pleadings raised in Complaint filed by the employee-Ashish Laxman Chavan (Respondent) in Writ Petition No.8953 of 2018. Shri. Ashish Laxman Chavan came to be appointed in the municipal service on 6/5/1995. He was deputed to work in Patrolling Squad of Octroi Department from 6/8/2004 to 26/8/2009. His designation at the relevant time was Patrolling Squad Inspector. According to him, the total amount due and payable for having apprehended several Octroi evaders during the period from 6/8/2004 to 26/8/2009 is Rs.3, 15, 000.00, records of which are available with the Municipal Corporation. Accordingly in the Complaint (ULP No. 90 of 2013) Shri. Ashish Laxman Chavan prayed for payment of amount of Mushahira during the period from 6/8/2004 to 26/8/2009 along with the interest at the rate of 18% per annum.

5. The complaints were resisted by the Municipal Corporation by filing its reply. The Municipal Corporation claimed that its Octroi Department is not an 'industry' and that therefore the complaints filed by the employees were not maintainable. The complaints were also resisted on the ground of delay and laches. It was also contended that the system of paying Mushahira was stopped by the Municipal Corporation from 2/9/2009 vide Resolution No.183 dtd. 13/5/2010.

6. The Industrial Court, after hearing both the sides,

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