Madhya Pradesh High Court
Dasrath Kumar Raikwar vs The Divisional Railway Manager on 20 August, 2025
1
IN THE HIGH COURT OF MADHYA PRADESH
AT JABALPUR
BEFORE
HON'BLE SHRI JUSTICE VIVEK JAIN
WRIT PETITION No.2278 of 2023
DASRATH KUMAR RAIKWAR
Versus
THE DIVISIONAL RAILWAY MANAGER AND OTHERS
Appearance:
Shri Pramesh Jain - Advocate for the petitioner.
Shri Krishna Sharma - Advocate for the respondent Nos.1 & 2.
ORDER
(Reserved on : 17.07.2025) (Pronounced on : 20.08.2025) The present petition has been filed challenging the award dated 11.05.2022 passed by the Central Government Industrial Tribunal - Cum -
Labour Court, Jabalpur, whereby the reference sent by the appropriate Government has been rejected by holding that the workman is not entitled to any relief.
2. Learned counsel for the petitioner has submitted that the petitioner was engaged as attendant in Homoeopathic Dispensary under Central Railway, Jabalpur and wages and salary were paid by the Railways. He rendered his services from 07.09.1999 to 20.12.2003 without any break and then, was discontinued from services without any reason under oral orders of management without notice and payment of compensation. The similarly situated employees were absorbed by the Railways, which led the Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 2 petitioner to file O.A. No.798/2010 before the Central Administrative Tribunal, which was disposed of on 06.01.2011 with direction to management to consider the representation of the workman regarding his reinstatement and absorption, which was then rejected by the management on 16.05.2011 ignoring the directions issued by the Tribunal. Then, the petitioner again filed O.A. before CAT, which was withdrawn with liberty to avail remedy available under the law and in such background facts, dispute was raised before the Assistant Labour Commissioner, Jabalpur, which was not resolved in 45 days. Hence, in terms of Section 2-A(2) of Industrial Disputes Act the matter has been filed before the CGIT-cum-
Labour Court. The matter was also referred to the Tribunal by the appropriate Government vide letter dated 29.10.2012 in the matter of demand of petitioner for regularization in any Class-IV post w.e.f.
07.09.1999 by management of West Central Railway.
3. Learned counsel for the petitioner further submitted that CGIT though held that the petitioner has worked continuously for 240 days in every year as stated in para-9 of the impugned award, but still by holding issues No.2 & 3 against the petitioner, the reference has been answered against the petitioner. This was because the petitioner had impleaded the General Manager and Divisional Manager of West Central Railway, Jabalpur, but the CGIT found him to be engaged by Staff Benefit Fund Committee ("SBF Committee" for short), which is found to be independent Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 3 of management of Railways, which was not party to the reference and hence, despite holding the foundational facts in favour of the petitioner, but only because the SBF Committee was not impleaded as party, therefore, the reference has been rejected.
4. It has been argued that though the CGIT has held that disengagement of the petitioner was against the law as he completed more than 240 days in each calendar year from 1999 to 2003, and no notice of compensation was given by the SBF Committee, but since SBF Committee is not party to reference proceeding, therefore, the petitioner has been denied relief. Counsel for the petitioner submits that SBF Committee has been established under Indian Railway Establishment Board, Volume-I Chapter-IV, which mandates that Railway Staff Benefit Fund shall be maintained for each Railway and as per Clause 802(1), Education of Staff and Children is provided under this Scheme and that the Committee is entitled to incur expenditure and any other object, which is for benefit of railway staff and they shall refer the matter to General Manager in that regard whose decision is final. It is further argued that as per Clause 803, the fund has to be used only for Railway servants who are non-gazetted servants and that as per Clause 805, the manner of contribution which is mandatory contribution to be deducted from all railway employees, is provided and therefore, it is part and parcel of the Railways. It is further contended that contention of the respondents in their reply that it is a Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 4 separate Society is incorrect in view of Chapter 8 of Indian Railway Establishment Code Volume-I.
5. It is further argued that the CGIT erred in over-looking that SBF Scheme is functional in Indian Railways since the year 1931 and the Railways has quasi administrative control over the said fund and its activities. Railway Board issued Circular dated 30.05.2000 taking decision for regularization of candidates working in quasi administrative offices/organizations of Railways, wherein the cut off date mentioned in the said Circular was changed from 10.06.1997 to 20.05.2000 vide Circular dated 29.10.2012. This document was admitted by the management witness meaning thereby that employees, who was working onroll of quasi administrative organization of the Railways as on 30.05.2000 were entitled for absorption/regularization and since the petitioner was engaged on 07.09.2000, he was entitled to be regularized more so, when similarly placed and junior employees were regularized as per provisions of the said Circular. The GAD has not given any finding on the said ground raised by the petitioner and therefore, the impugned award is illegal. Further reliance has made on provisions of Indian Railways Establishment Code, which provides that when staff is paid from contingency they would acquire the status of temporary employees after expiry six months of continuous employment and in the present case, the petitioner acquired the status of Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 5 temporary employee and hence, he could not have been discharged or retrenched in the manner in which the same has been done.
6. Per contra, it is contended by learned counsel for the Railways that the petitioner has failed to establish that he was employed by the Railways, because SBF is a separate society, which may be having some control of the Railways inasmuch as all the members of the societies are Railway employees, but the society is not run by finances of the Railways, but is financed and administered by funds contributed by railway employees. Therefore, though it works of benefit of railways employee, but since the said fund is separate entity, which is separate from the Railways, therefore, the petitioner having been working in the activities run by SBF, i.e. running of Homeopathy Dispensary for benefit of staff of railways, but since he was engaged by SBF, therefore, there is no error or mistake committed by the CGIT in non-suiting the petitioner and therefore, the order is defended on these grounds. It is also contended that the petitioner might have been employed by the doctor concerned for his assistance, and paid from SBF Fund, but otherwise the petitioner cannot be treated to be employee of SBF too.
7. Heard.
8. In the present case, it is not at all in dispute that the petitioner was working in Homoeopathic Dispensary, which was run for benefit of staff of Railways. The respondents in their reply, had submitted that the petitioner Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 6 was never engaged or appointed by Railways Administration, nor by SBF Committee, but it has been submitted that SBF Committee is Committee of Railway employees, who depute private Homeopathy Doctors on honorary basis for specific period. It was contended that the petitioner was working as attender in Homeopathy Dispensary run by SBF Committee, but he is not Railway employee, because SBF Scheme is not part of Indian Railways and various activities are financed out of funds for the welfare of railways servants and their eligible family members, but SBF Scheme in itself is governed by the provisions contained in statutory rules of Indian Railways, but it is not administered by Railway management. It has been contended that since the Railways never engaged the petitioner, therefore, the petitioner cannot seek any reinstatement or absorption in Railways unless he is appointed by facing the regular recruitment process as applicable for recruitment in Group-D category staff in the Railways.
9. The respondents have also taken a categorical stand that the petitioner may have been engaged by Homeopathy Doctor engaged by SBF Committee to render services in Homeopathy Dispensary, but he was not appointed directly by the Railway management or by the SBF and therefore, the benefit of Circular RBE 103/2000 dated 30.05.2000 and Circular dated 21.12.2006 would not apply to the petitioner.
10. To appreciate the aforesaid contention, the genesis and initiation of staff benefit fund needs to be considered. Initially, the Railway Board Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 7 issued a Master Circular No.4/90 dated 12.11.1990 to consolidate salient features of the scheme and instructions issued by the Board. Since then, a number of instructions on this subject were issued from time to time and therefore, an updated master circular has been issued on 30.09.2019. As per the aforesaid Circular SBF is governed by provisions contained in statutory rules, i.e. Chapter-VIII of Indian Railway Establishment Code Volume-I and it is categorically mentioned therein that SBF Scheme is functional on Indian Railways since the year 1931 and activities which are financed out of the fund for welfare of Railway servants and their family members are;
education, scholarship, recreation, cultural activity, sport activities, homeopathy, flood relief, occupation skills, etc. etc.
11. The sources of SBF are annual plan received by the Railways in each financial year budgeted from Railway revenues on per capita basis based on strength of non-gazetted railway servants, received from fines, 50% of the expenditure incurred by the respective railways on grant of scholarships and unpaid beyond three years. A detailed methodology has been laid down for calculating the per capita contribution, which is laid down in the Master Circular dated 30.09.2019, which consolidates the earlier Master Circular No.4/90.
12. The scheme administers scholarships, cash awards for wards of Railway servants, educational institutions, health facilities, sport facilities, Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 8 etc. etc. The management of the fund is laid down as per para 11 of the said Circular, which is to be managed by Central SBF Committee at Railway Headquarters headed by Chief Personnel Officer and said Committee consists of Chief Medical Officer, Additional Chief Engineer, Welfare Officer, so also members from recognized Unions.
13. There shall be Divisional SBF Committee in each Division is decided over by the Divisional Personnel Officer and apart from it contains one officer to be nominated by DRM, Welfare Inspector nominated by DRM and representatives from Unions.
14. SBFs are also in workshops and production units and different methodologies have been laid down for constituting SBF in production units and workshops of the Railways.
15. The accounts of the fund are maintained by General Manager of the concerned railway and annual reports are to be submitted to the Railway Board as per Clause 17 of the Master Circular. The said Circular, for ready reference is reproduced as under:-
Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 9 Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 10 Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 11 Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 12 Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 13 Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 14 Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 15 Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 16 Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 17 Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 18 Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 1916. From a bare perusal of the aforesaid Circular, it is evident that the SBF Committee is set up by the railways, it has been established by the Railway Board and it works under control of the Railway Board. The accounts are rendered by General Manager to the Railway Board every year. SBF Committees are constituted at all workshops of production units, divisions and even at Headquarter level of the Railways. The Master Circular is issued by the Railway Board from time to time and funding is made by the Railways from its annual budget, fines received by the Railways as well as unpaid wages. It is evident that 100% of the funding of the SBF as per Clause 3 of Circular above is from the Railway funds and though it is captioned as separate society of employees, but there is nothing like that in the management of the fund to hold it distinct from the Railways, because it is wholly financed by the Railways and works for welfare activities of the Railways like running of dispensaries, schools, sports and cultural activities, relief activities, recreational activities, clubs etc., which are the inherent activities of the Railways as the largest employer of civilian work force in India. The Railways is under obligation to give certain facilities to its employees under Rights of Persons With Disability act, Factories act and various other enactments so also to ensure social security and welfare of its employee and their families, which are Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 20 inherent activities of Railways as an employer of the largest civilian work force in India and the single largest civilian employer in India.
17. There is no system of election of position in SBF Committees, but all the employers are appointed as nominated by the Railway Board or by the General Manager or by DRM at their respective levels. Certain representatives from recognized Unions and SC/ST Employees Unions are there, but these are as per provisions contained in the Master Circular itself and therefore, it cannot be said that the SBF Committee is having some independent existence separate from Railways. SBY has no independent finances, independent management or independent system of appointment or nomination of management, because there is no election in SBF committees and everything depends on nominations made by the Officers of the Railways so also by the concerned Union.
18. The activities of SBF at various levels are inherent activities, which are required to be undertaken by the Railways for which purpose the Railways indeed is contributing funds. It is not the case like the workman engaged by Co-operative Society being run in various big industries like canteens etc. in steel plants run by Steel Authorities of India Ltd., which are run by independent societies having their independent finances and elected management with independent membership, which may be independent of employment in the principal undertaking in the manner that all the employees may not be members of the said society. The issue has Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 21 been time and again raised before the Hon'ble Apex Court in the case canteens run by steel plants owned by Steel Authority of India Ltd. and the matter has been dealt with in detail in the judgment of the Apex Court in the case of Balwant Rai Saluja vs. Air India Ltd. reported in (2014) 9 SCC 407, wherein the Hon'ble Apex Court held that to be called the employees of the factory for all purposes the workman need to qualify the test of employer employee relationship and it must be shown that employer exercises absolute and effective control over the said workers. The said case was the case of canteen run by a contractor for the employees of Air India Ltd. and the Hon'ble Apex Court held as under:-
"65. Thus, it can be concluded that the relevant factors to be taken into consideration to establish an employer-employee relationship would include, inter alia:
(i) who appoints the workers;
(ii) who pays the salary/remuneration;
(iii) who has the authority to dismiss;
(iv) who can take disciplinary action;
(v) whether there is continuity of service; and
(vi) extent of control and supervision i.e. whether there exists complete control and supervision.
As regards extent of control and supervision, we have already taken note of the observations in Bengal Nagpur Cotton Mills case [Bengal Nagpur Cotton Mills v. Bharat Lal, (2011) 1 SCC 635 : (2011) 1 SCC (L&S) 16] , International Airport Authority of India case [International Airport Authority of India v. International Air Cargo Workers' Union, (2009) 13 SCC 374 : (2010) 1 SCC (L&S) 257] and Nalco case [National Aluminium Co. Ltd. v. Ananta Kishore Rout, (2014) 6 SCC 756 : (2014) 2 SCC (L&S) 353]."
Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 22In the present case, it cannot be said that the petitioner would be employee only for the purpose of compliance of a particular Labour Law, because the activities of the SBF Committee are not restricted for compliance of a particular law, but are spread to a number of functions, and not restricted to Factories Act.
19. In the present case as already noted by this Court above, SBF does not have any independent existence, inasmuch as it does not have any independent membership, it does not have any independent management and it does not have any independent finances. Not even its activities are restricted to its members, but on the contrary its activities are spread to all the employees of Railways and their families. If that had been the case that employees were required to take membership of concerned SBF and then, they were covered under the welfare schemes of SBF, then it could have been argued that only those subscribing employees or contributing employees are members of SBF and therefore, SBF has any independent existence, which is independent of Railways in general. However, in the present case, it is not so and SBF is only a camouflage to carry out the welfare activities of the Railways towards its employees, which otherwise were under obligation of the Railways to perform. Therefore, the railways has only carved out this system of making contribution from the finance of the Railways and budget of the Railways by constituting a separate fund Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 23 for the purpose which can only be said to be a wing of the Railways and not an entity independent of Railways.
20. The respondents have brought on record an order Annexure A-4 dated 07.01.2009 as per which the Railway Board has fixed remuneration for Homeopathy Doctors and the Ayurvedic Doctors working in dispensaries run by SBF. Not only the remuneration of doctors has been fixed, but even the honorariums for dispensers have been fixed and budget for these dispensaries have been fixed. The said circular is as under:-
Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 2421. From a bare perusal of the aforesaid Circular filed by the Railways itself before this Court, it is evident that it is the Railway Board, which fixes remuneration for staff which sanctions the posts and the dispensaries and which fixes the budget for each dispensary. Therefore, the dispensaries are nothing but under direct control of the Railway Board and Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 25 they are nothing, but only a wing of the Railways and not entity separate from the Railways.
22. Therefore, this Court holds that the CGIT has gravely erred in holding that in absence of impleadment of SBF the reference proceedings against Railways are not maintainable and no relief could be granted to the respondent employee against railways.
23. The Indian Railways has framed an establishment code and as per Indian Railway Establishment Code Volume-I the detailed provisions in the matter of Indian Railway Staff Benefit Fund have been laid down, which have only be summarized in the Master Circular of 2019, which has been quoted above. The relevant Clauses 801 to 812 of Indian Railway Establishment Code are as under :-
"Chapter 8 Staff Benefit Fund
801. A Railway Staff. Benefit Fund shall be maintained for each Indian Railway.
802. (1) Education of the staff and of their children when no assistance is admissible under the provisions laid down in Chapter - XXII, Section-A (Schooling facilities and educational assistance for children of Railway Servants) of Indian Railway Establishment Manual Volume-II, provided that no grant shall be made to a school which is not in accordance with any general or special order issued by the President in this behalf .
(2) If the Committee desire to incur expenditure on any other object which in their opinion is for the benefit of the staff, they shall refer the matter to the General Manager whose decision shall be final.
803. No part of the fund shall be used for the benefit of any gazetted railway servant, except as provided in Rule 805(1).
(Authority: Board's letter No. E(W)97/FU-1/4 dated 13-10-99) Note.--A scholarship for study granted to the child/ward of a non-gazetted railway servant will not be withdrawn merely because the railway servant is subsequently promoted to officiate in a gazetted post, provided the student remains otherwise eligible fur the same. When, however, the railway servant is Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 26 confirmed in the gazetted post. the scholarship should merely be discontinued and no recovery should be made in respect of the period from the date of confirmation to the date of issue of the Notification of confirmation.
804. Credits to the Fund.-To the fund shall be credited:.- (1) all receipts from fines; and (2) all receipts from forfeited Provident Fund bonuses. except forfeited bonuses of gazetted railway servants.
805. (1) In addition to the credits to the Fund detailed in Rule 804, there shall be credited to the fund on the 1st April of each financial year an annual grant from the revenues of the Railway at a per capita rate of Rs.35.00 based on the sanctioned strength of non-gazetted Railway employees, permanent and temporary, as on the 31st March, posts charged to capital being excluded. The Fund shall be credited provisionally on the 1st April each year with an amount equal to the contribution for the previous year, the necessary adjustment being made as soon as the correct amount of the contribution has been determined. The distribution of Rs.35/- amongst different activities will be as under:
(i) General activities viz. Education, recreation, amusement, cultural, relief of distress, sickness and miscellaneous items:-
(a)Education Rs.4.75
(b)Recreation other than sports Rs.2.25
(c)Promotion of cultural Activities Rs.0.50
(d) Relief of distress, sickness, etc. Rs.7.50
(e) Women empowerment activities Rs.0.50
(f)Miscellaneous Rs.0.50
(ii) Sports activities Rs.5.00
(iii) Scouts activities Rs.3.50
(iv) Recreational facilities to Officers and Supervisory staff Rs.3.00
(v) indigenous system of medicine including Homoeopathy Rs.2.50
(vi) Immediate relief in times of crisis arising out of Rs.3.00
natural calamities.
(vii) Training for developing occupational skills Rs.2.00
of physically/mentally challenged wards especially girls of railway employees.
Total Rs.35.00 (Authority: Board's letters no. E(W)2007FU-1/1 dated 13th March,2008) (2) The Fund shall also be augmented to the extent of 50% of expenditure incurred by the respective railways on grant of scholarships to the children of Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 27 railway employees for technical education of their children during the preceding year.
Note 1.-Interest at 2 percent per annum shall be credited on the balance at the credit of the Fund lying with the Government and will be taken in reduction of the annual contribution from the revenues of the railway.
Note 2.-In the case of Chittaranjan Locomotive Works, Diesel Locomotive Works, Integral Coach Factory, a similar contribution to this fund shall be made chargeable to "Capital Suspense--Workshop Suspense Accounts under Performa on Cost". In the case of Wheel and Axle Plant, COFMOW Central Organisation for railway Electrification the contribution shall be chargeable to Demand No. 16-Assets - Acquisition, Construction and Replacement. In the case of diesel Component Works, Rail Coach Factory, the contribution to the Fund shall be made chargeable to Demand No. 16 (WMS), whereas in the case of RDSO and Railway Claims Tribunal, it shall be chargeable to Demand No.2-- Miscellaneous Expenditue General.
Note 3. Based on the overall per capita contribution of Rs.5.00 for sports activities, sports allotments shall continue to be made by the Ministry of Railways in consultation with the Railway Sports Promotion Board, to the Railways/Production Units.
Similarly, allotment of Rs. 3.50 for scouting activities for scouting activities will also be made by the Ministry of Railways Rs.3/- per capita allotted for "
Immediate relief in times of crisis arising out of natural calamities" will be made from the "SBF Calamity Relief Fund" at the level of the Ministry of Railways. Therefore, allotment for Rs. 11.50 will be made centrally by Ministry of Railways(Railway Board).Augmentation to the SBF by Railways will thus be at the rate of Rs.23.50 per capita (Rs.35 minus Rs.11.50) th (Authority: Board's letters no. E(W)2007FU-1/1 dated 13 March,2008) Note. 4.--Except in the case of funds for scouting, sports, education and Inter Railway Cultural Competitions, Staff Benefit Fund Committees of the Railways/Production Units, etc. may re-appropriate funds under other heads, subject to the condition that not more than 10% of the amount is re-appropriated from any head.
(Authority: Board's letter No. E(W)97/FU-1/4 , dated 13-10-99)
806. Expenditure from the fund. -- Subject to the general supervision of the General Manager, all expenditure from the Staff Benefit Fund shall be authorised by the Committee or by a Sub-Committee duly appointed under the provisions of Rules 808.
Railway Ministry's decision. - The cost of stationery, printing charges of forms, postage charge and other contingent expenses relating to the Fund should be met from the Railway Revenues. Expenditure on entertainment during the meetings, of the Staff Benefit Fund Committee should be met from the fund itself.
(Railway Ministry's letter No.E(W)59FU-1-12 dt.10-5-1960 & No.E(W) 60FU 1-3, dt. 12-2-1960).
Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 28807. Management of the Fund. -The fund shall be managed by a Committee at the headquarters of the Railway presided over by the Chief Personnel Officer. Besides Chairman the Committee shall consist of the following:-
(i) The Chief Personnel Officer;
(ii) The Chief Medical Officer;
(iii) The Additional Chief Engineer;
(iv) A Welfare Officer to be nominated by the General Manager who shall act as
the Secretary of the Committee ; and
(v) Six members shall be from recognised unions, to be equally divided amongst the recognised unions.
Note. .-In the production units where staff councils are functioning members elected by the Central Staff Councils will be represented on the Staff Benefit Fund Committee.
(Authority : Board's letter No. E(W)97/FU-1/4 , dated 13-10-99)
808. (1) There shall be a Divisional Staff Benefit Fund Committee on each Division, which shall be presided over by the Divisional Personnel Officer.
Besides the Chairman, the Committee shall consist of the following:-
(i) One officer to be nominated by the Divisional Railway Manager ;
(ii) Two representatives from each recognised union; and
(iii) A Welfare Inspector nominated by the Divisional Manager who shall act as Secretary.
(2) Each workshop will also have a Workshop Staff Benefit Fund Committee, the constitution of this Committee being the same as that prescribed above for the Division. If there is no Senior Scale Personnel Officer in a workshop, his place shall be taken by the Works Manager, or if there is no Works Manager, by the Assistant Works Manager.
In the event of disagreement with the decision of the Division/Workshop Sub- Committee, the matter shall be referred to the Divisional Railway Manager/Deputy Chief Mechanical Engineer-in-charge of the workshop, as the case may be, whose decision in the matter shall be final.
The Divisional/Workshop Staff Benefit Fund Committees shall have powers to allot funds for the objects specified in these rules within the rules and limitations prescribed by the Headquarters Committee.
Railway Ministry's decision 1.-No retired employee, or an outsider shall be nominated by the Recognised Unions to serve on the Staff Benefit Fund Committee.
(Railway Ministry's letter No.E(W)68FU1-5, dt, 30-4-1968).
Railway Ministry's decision 2.-Railway employees under suspension shall not be allowed to participate in the meetings of the Staff' Benefit Fund Committee. There is no objection to substitutes taking their place for the period the sitting members remain disqualified.
(Railway Ministry's letter No.E(W)60NM1-31, dt. 1-11-1960.) Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 29
809. A member of the Committee or Sub-Committee shall hold office for one year unless he is removed by the General Manager or resigns but shall be eligible for renomination or re-election.
810. If the Chairman disagrees with a majority of the Committee as regards-
(1) Financial propriety of an expenditure from the Fund.
(2) Whether the grant comes within the objects mentioned in rule 802. (3) Whether it conflicts with the, recognised policy of the Government or the Railway, he shall refer the matter to the General Manager whose decision in the matter shall be final.
811. Accounts of the Fund.-- The General Manager shall make such arrangements as may be necessary for keeping the accounts of the fund; and audit shall be carried out in such manner as the President may direct.
812. Annual report on the working of the Fund. -The General Manager shall submit annually a report to the Railway Board on the working of the fund during the previous financial year."
24. As per Indian Railway Establishment Manual Volume-II Chapter 20 Clause-2001, casual labouris defined as labour whose employment is intermittent, sporadic or extends over short period. However, in the same Clause-2001 the specific provision has been laid down as per Clause 2001(b) regarding conferring temporary status to casual labour on completion of 120 days continuous employment. Even seasonal labour sanctioned for specific works of less than 120 days duration,if made to work for more than 120 days has to be treated as temporary employee and comes out of the definition of casual labour. As per Note (8) of Clause 2001, once an individual acquires temporary status he remains in that status so long as he is in continuous employment on the Railways. As per Clause 2005 certain privileges are given to casual labour, who are treated as temporary and even temporary status after completion of 120 or 360 days of continuous employment, which include the benefit of discipline and Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 30 appeal rules and various other benefits. Clause 2001 and 2005 are as under:-
"2001. (I) Definition of Casual labour - Casual labour refers to labour whose employment is intermittent, Sporadic or extends over short period or continued from one work to another. Labour of this kind is normally recruited from the nearest available source. They are not ordinarily liable to transfer. The conditions applicable to permanent and temporary staff do not apply to casual labour.
Casual labour on Railway should ordinarily be employed only in the following types of cases.
(a) Casual Labour (Open Line).- Casual labour are primarily engaged to supplement the regular staff in work of seasonal or sporadic nature, which arises in the day to day working of the Railway system. This includes labour required for unloading and loading of materials, special repair and maintenance of tracks and other structures, supplying drinking water to passengers during summer months, (recoupment of man-days lost on account of absenteeism) patrolling of tracks, etc. casual labour so engaged in the operation and maintenance of railway system is referred to as open line casual labour, as distinct from project Casual Labour, described in para (b) infra.
(b) Casual Labour (Project)- Casual Labour are also engaged on Railways for execution of Railway projects, such as new lines, doubling, conversion, construction of building, track Renewals, Route Relay interlocking Railway Electrification, Setting up of new units etc. Casual Labour so engaged are referred to as "Project Casual Labour".
Such of those casual Labour engaged on open line (revenue) works, who continue to do the same work for which they were engaged or other work of the same type for more than 120 days without a break will be treated as temporary (i.e. given "temporary status") on completion of 120 days continuous employment.
Casual Labour on projects who have put in 180 days of continuous employment on works of the same type are entitled for 1/30th of the minimum of the appropriate scale of pay plus Dearness allowance.
Before giving regular scale of pay or 1/30th of the minimum of the scale plus Dearness Allowance on completion of 120 days or 180 days continuous employment as the case may be, a preliminary verification in regard to age and completion of requisite number of days of continuous service should be done by the assistant officer and the person should also be got medically examined and only if found fit he should be granted regular scales of pay.
(ii) Grant of temporary status to project casual labour is regulated by instructions separately issued by the Railway Board. As far as possible, casual labourers required for new projects must be taken from amongst those casual labourers. Who have worked on the open line/projects in the past in preference to outsiders.
(ii) Seasonal labour sanctioned for specific works of less than 120 days duration. If such labour is shifted from one work to another of the same Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 31 type and the total continuous period of such work at any time is more than 120 days duration, they should be treated as temporary (i.e. granted "temporary status" after the expiry of 120 days continuous employment.
Note (I)- The term 'same type of work' should not be too rigidly interpreted so as to cause undue hardship to casual labour by way of break in service because of a slight change in the type of work in the same unit. The term 'same type of work' should be implemented in spirit as well as in letter and no casual labour should suffer in this matter by rigid interpretation of the term. The various types of work may be grouped as under:
(a) Track renewals and linking Ballasting, re-sleepering, relaying, etc.
(b) Masonry and concrete work: Work on buildings, bridges, quarter, platforms etc.
(c) Steel work:- Erection of bridge girders, sheds, shelters, etc.
(d) Earth work:- Foundation bank, platforms, etc.
(e) All work, performed by the unskilled casual labour working under the same I.O.W., P.W. I. and Bridge inspector etc. should be treated as the same typed of work.
(f) S&T and electrification- All casual labour employed by CTI. CSI should be treated as doing the same type of work.
Note (2):- "Project for this purpose should be taken as construction of new lines, major bridges, restoration of dismantled lines, and other major important open line works like, doubling widening of tunnels, Route Relay Interlocking, Railway Electrification etc. which are completed within a definite time limit. The General Manager/Heads of Departments concerned, in consultation with the FA&CAO will decide whether a particular open work is a 'Project' or not. If the through track renewals include replacement of lighter section of Rails by a heavier section or increasing density of sleepers or provision of additional depth of ballast etc., these should be treated as works leading to an improvement in the carrying capacity of the Railway and as such irrespective of any financial limit they should be treated as 'Project ', Casual renewals' or other 'Through Renewals' which do not lead to any improvement in the carrying capacity of a railway will, however, not fall within the definition of a "Project'. Similarly signaling works like Route Relay Unlocking. Multiple aspect signaling, etc., and electrical works like electrification, provision of additional sub stations etc. should be treated as projects.
Note(3):- Labour employed against regular sanctioned posts, which are vacant whether permanent or temporary shall not be employed on Casual labour terms. Casual labour should not be employed for work on construction of wagons and similar other work of a regular nature. Works of a regular nature. Cover workshops, loco sheds, train lighting establishments, carriage and wagon depots, yards and stations but exclude labour employed for loading and unloading. As regards civil engineering, signal and bridge maintenance, casual labour shall not be employed except for seasonal and fluctuating works, casual renewals and occasional renewals.
Note (4).--On the open line, trolleyman should not be Casual labour.
Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 32Note (5)--Casual labour should not be engaged in Railway printing press.
Note (6)--Staff employed in unskilled categories for examining the wagons for water-right repairs during the monsoon season, for supplying water to passengers during hot weather, etc. should be treated as casual labour.
Note (7).--Casual labour should not be employed/ retained in service beyond the age of 58 years.
Note (8):- Once an individual acquires temporary status after fulfilling the conditions indicated in para (I) or (iii) above, he retains that status so long as he is in continuous employment on the railways. In other works, even if he is transferred by the administration to work of a different nature, he does not lose the ternporary status.
(2) Should it become necessary to engage additional casual labour, discharged casual labour, who have not been re-employed they will be re-engaged, against future requirement in the order of priority on the basis of total periods of service prior to their discharge. The intake of "fresh faces" as casual labour is not permitted except where prior personal approval of the General Manager has been obtained; the power to accord such approval cannot be delegated to a lower level. The extent instructions issued by the Railway Board from time to time for regulating and controlling the total strength of casual labour (including those with temporary status) should be rigidly followed.
(3) In those exceptional cases where engagement of "fresh faces"
as casual labour is authorised personally by the General Manager, the procedure prescribed in regard to engagement of individuals as casual labour "fresh face" will be followed.
(4) The percentage of reservation for SC/ST laid down for group 'D" categories should be followed for recruitment of casual labour, in the manner laid down in the instructions of the Board, except in the case of those who are required for emergencies like flood relief work, accident, restoration and relief etc. (5) In order to provide documentary proof of service, a casual labour should be given a card. A person wanting to be appointed as a casual labour should be asked to supply to the administration two passport size copies of his photograph at the time of his engagement as casual labour. This photograph duly attested by the competent-authority should be pasted on his service card another copy is the casual labour register. Casual labour should be asked to deposit Re. 1/- towards the cost of service card. The following particulars should be indicated by concerned supervisory official in the service card.
(1) Name of the employee (in Block letters).
(2) Father's Name (in Block letters).
(3) Date of birth.
(4) Age at initial casual employment, year, month.
(5) Personal mark/s of - identification.
(6) Date of engagement.
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JYOTISHI
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(7) Date of termination.
(8) Nature of job on each occasion.
(9) Signature of the Supervisor.
Name in full (In capital letters) & Designation of
(10)
the supervisor.
Note:- These should be cross references to LTI Register/ CL Card Number. In cases of re-engagement as casual labour previous spell of employment be checked up by Supervisors concerned including checks from the original paid vouchers.
The service cards should be in the form of-a booklet and should have stiff card board binding. On page I on the left side detailed instructions should be printed for the guidance of casual labourers. These instructions should be in bilingual form both in English and Hindi In addition. Railways may add a local language of the area subjects to convenience. The service card should be machine numbered and account of service cards maintained in divisional office.
Casual labour engaged for short duration like a week or ten days for work of short duration or for emergencies like restoration of breaches etc., will not, however, be issued cards, nor their names entered in Casual Labour Register.
(6.1) Loss of the card should be reported to the nearest police station and a copy of FIR lodged with the police should be given to the Railway authorities on the basis of which a duplicate card may be issued on a charge of Rs. 2/-. The issuing authority should satisfy himself that the duplicate is being issued to the same person to whom the original was issued and failure on his part on this score would be punishable under D& A rules.
(6.2) Casual Labour Registers will be maintained in accordance with instructions in this regard issued from time to time by the Railway Board.
2005. Entitlements and Privileges admissible to Casual Labour who are treated as temporary (i.e. given temporary status) after the completion of 120 day or 360 days of continuous employment (as the case may be).-- (a) Casual labour treated as temporary are entitled to the rights and benefits admissible to temporary railway servants as laid down in 'Chapter XX III of this Manual. The rights and privileges admissible to such labour also include the benefit of D&A Rules. However, their service prior to absorption in tempo- rary/permanent/regular cadre after the required selection/ screening will not count for the purpose of seniority and the date of their regular appointment after screening/selection shall determine their seniority vis- a-vis other regular/temporary employees. This is however, subject to the provision that if the seniority of certain individual employees has already been determined in any other manner, either in pursuance of judicial decisions or otherwise, the seniority so determined shall not be altered.
Casual labour including Project casual labour shall be eligible to count only half the period of service rendered by them after attaining temporary status on completion of prescribed days of continuous employ-
Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 34ment and before regular absorption, as qualifying service for the purpose of pensionary benefits. This benefit will be admissible only after their absorption in regular employment. Such casual labour, who have attained temporary status, will also be entitled to carry forward the leave at their credit to new post on absorption in regular service. Daily rated casual labour will not be entitled to these benefits.
(b) Such casual labour who acquire temporary status, will not, however, be brought on to the permanent or regular establishment or treated as in regular employment on Railways until and unless they are selected through regular Selection Board for Group D Posts in the manner laid down from time to time. Subject to such orders as the Railway Board may issue from time to time, and subject to such exceptions and conditions like appointment on compassionate ground, quotas for handicapped and ex-serviceman etc. as may be specified in these orders they will have a prior claim over others to recruitment on a regular basis and they will be considered for regular employment without having to go through employment exchanges. Such of them who join as Casual labour before attaining the age of 28 years should be allowed relaxation of the maximum age limit prescribed for group 'D' posts to the extent of their total service which may be either continuous or in broken periods.
(c) No temporary posts shall be created to accommodate such casual labour, who acquire temporary status, for the conferment of attendant benefits like regular scale of pay, increment etc. After absorption in regular employment, half of the service rendered after attaining temporary status by such persons before regular absorption against a regular/ temporary/ permanent post, will qualify for pensionary benefits, subject to the conditions prescribed m Railway Board's letter No. E(NG)II/78/CL/12 dated 14-10-80. (Letter No. E(NG) II/85/CL/6 dated 28-11-86 in the case of Project casual labour).
(d) Casual labour who have acquired temporary status and have put in three years continuous service should be treated at par with temporary railway servants for purpose of festival advance/Flood Advance on the same conditions as ARE applicable to temporary railway servantS for grant of such advance provided they furnish two sureties from permanent railway employees.
(e) Casual labour engaged on works, who attain temporary status on completion of 120 days continuous employment on the same type of work, should be treated as temporary employees for the purpose of hospital leave in terms of Rule 554-R-I (1985 Edition).
A casual labour who has attained temporary status and has been paid regular scale of pay, when re-engaged, after having been discharged earlier on completion of work or for non-availability of further productive work, may be started on the pay last down by him. (This shall be effective from 2nd October 1980)."
Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49 3525. As per Clause 2004, once a casual labour gets temporary status, then he is entitled to notice period as per the rules applicable to temporary Railway servants.
26. Therefore, it is evident that the petitioner had acquired temporary status having worked for more than four years in Homoeopathy Dispensary run by SBF of the Railways and he could not have been retrenched or discharged in any manner without complying with the requirement as required for temporary employees.
27. Therefore, the petitioner is held entitled to be reinstated in service and he could not have been discharged except after following the procedure as required for temporary Railway servant.
28. Consequently, this petition deserves to be and is hereby allowed.
The impugned award passed by the CGIT is set aside. The petitioner is held entitled to be reinstated in service on the status of temporary railway servant. He would be entitled to 20% back wages from the date of discharge till date of this order and thereafter, he shall be entitled to full salary as admissible to temporary railway employee.
29. With the aforesaid directions, petition is allowed.
(VIVEK JAIN) JUDGE rj Signature Not Verified Signed by: RAJESH KUMAR JYOTISHI Signing time: 20-08-2025 17:12:49