Long-standing practice of additional increments for qualifications becomes customary concession; prospective unilateral withdrawal alters service conditions requiring Section 9-A notice; interim stay to maintain status quo upheld on prima facie case.

JUDGMENT :

AMIT BORKAR, J.

1. The Petitioners have instituted the present writ petition impugning the judgment and order rendered by the Industrial Court in Complaint (ULP) No. 282 of 2025. By the said order, the Industrial Court allowed the application at Exhibit “U2” preferred by the Respondents, stayed the operation of the circular dated 05th September, 2025, and directed the Petitioners to continue the prevailing practice of granting one or two additional wage increments to employees who had secured admission to, and obtained, Diplomas in LSG and LGS even subsequent to 29th August, 2000. The challenge in the present proceedings arises from the said interlocutory order and the directions contained therein.

2. The record indicates that the Petitioners, by decision dated 04th February, 1967, resolved to grant one additional increment to employees serving as clerks upon acquisition of a Diploma in Local Self Government (LSGD). A similar benefit of one additional increment was extended to those employees whose pay scales did not exceed the maximum of the clerical grade, upon their acquiring the said diploma. The object of this decision was to incentivize and encourage employees to obtain higher qualifications. Subsequently, in its meeting dated 10th July, 1968, the Standing Committee approved a proposal introducing one additional increment for possession of an LGS Diploma, which culminated in the Corporation’s Resolution dated 23rd September, 1968. Thereafter, by Resolution dated 29th January, 1975, the Standing Committee sanctioned the grant of two increments to Municipal employees acquiring an LGS Diploma, provided their pay scale did not exceed Rs. 660 and subject to stipulated conditions. This was followed by the Corporation’s Resolution dated 06th March, 1975, giving effect to the said decision.

3. The aforesaid policy underwent further modification by circulars dated 07th June, 1984, issued in the backdrop of a general revision of pay scales of Municipal employees with retrospective effect from 01st January, 1975. Under the revised scheme, two additional increments were made admissible to Municipal employees who passed or acquired an LGS Diploma, provided that the maximum of their pay scale did not exceed the maximum prescribed for the cadre of Office Superintendent or AA-II.

4. It is the case of the Petitioners that the original circular dated 04th February, 1967 was thus altered and refined from time to time through successive resolutions and circulars. According to the Petitioners, these decisions were matters of policy determined by the Standing Committee in exercise of its administrative authority, and neither the employees nor their Union were consulted or involved in the formulation or modification of the policy relating to grant of additional increments.

5. By circular dated 25th September, 2009, the earlier circulars were again modified pursuant to approval granted by the Municipal Corporation on 15th September, 2009. Thereafter, the Petitioner–Corporation placed a proposal dated 18th August, 2025 before the Standing Committee seeking discontinuation of the additional increment, setting out th