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[Cites 6, Cited by 0]

Gujarat High Court

Suketu Amratlal Desai vs State Of Gujarat on 22 March, 2018

Author: K.M.Thaker

Bench: K.M.Thaker

         C/SCA/17813/2015                                          ORDER




          IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

         R/SPECIAL CIVIL APPLICATION NO. 17813 of 2015
==========================================================
                   SUKETU AMRATLAL DESAI
                            Versus
                      STATE OF GUJARAT
==========================================================
Appearance:
MR DIPEN DESAI(2481) for the PETITIONER(s) No.
1,10,11,12,13,14,15,16,17,18,19,2,20,21,22,23,24,25,26,27,28,29,3,30,31,32,
33,34,35,36,37,38,39,4,40,41,42,43,44,45,46,47,48,49,5,50,51,52,53,54,6,7,8
,9
MR. D.M.DEVNANI, AGP (1) for the RESPONDENT(s) No. 1,2,3
==========================================================

 CORAM: HONOURABLE MR.JUSTICE K.M.THAKER

                               Date : 22/03/2018

                                 ORAL ORDER

1. Heard   Mr.Desai,   learned   advocate   for   the  petitioners   and   Mr.Devnani,   learned   AGP   for   the  respondent State. 

2. In   this   petition   which   is   taken   out   by   52  employees, below quoted relief is prayed for:

"6(A) The Hon'ble Court be please to issue a writ of mandamus  or   writ   in   the   nature   of   mandamus   or   any   other   appropriate  writ,   order   or   direction   commanding   the   respondents   to  calculate   and   pay   the   gratuity   to   the   petitioners   who   have  retired   by   considering   their   qualifying   service   from   the  respective dates of their joining and not from 01.10.1988 and  to   release   the   differential   amount   with   interest   as   early   as  possible.
(B) The Hon'ble Court be pleased to issue a writ of mandamus  or   writ   in   the   nature   of   mandamus   or   any   other   appropriate  writ,   order   or   direction   commanding   the   respondents   to  calculate   the   qualifying   services   for   gratuity   of   those  petitioners who are still in service by considering the date of  joining of the respective petitioner and not from 01.10.1988."
Page 1 of 20 C/SCA/17813/2015 ORDER

3. At the outset, it is relevant to mention that  since   some   of   the   petitioners   /   claimants   have  yet   not   retired   from   service   and   consequently,  the   cause   of   action   to   demand   gratuity   has   yet  not   arisen   in   respect   of   said   petitioners   /  claimants,   Mr.Desai,   learned   advocate   for   the  petitioners clarified that he does not press the  petition   in respect  of  those  employees   i.e. the  petitioners   whose   names   are   mentioned   at  Sr.Nos.40   and   42   to   54   in   Annexure­A   to   the  petition.  

3.1 Therefore, in view of the said statement and  clarification   by   Mr.Desai,   learned   advocate   for  the petitioners, this petition stands disposed of  as withdrawn / not pressed so far above mentioned  petitioners   at   Sr.Nos.40   and   42   to   54   are  concerned. 

4. So   far   as   factual   background   is   concerned,  the petitioners have averred and stated that :

"2.1 The   petitioners   herein   are/   were   employees   of   the   respondents   Nos.   2   and   3   herein.   It   is   submitted   that   some   of   the   petitioners   have   died   and   the   petition   is   preferred   through   their   respective   legal   heir   and   representative.   Details   of   each   of   the   petitioners   are   Page 2 of 20 C/SCA/17813/2015 ORDER produced   by  way  of   a  statement   which   is  annexed  hereto   and marked as Annexure­A to this petition. 2.2 The petitioners submit that the all the petitioners   were   appointed   at   Rojamdars   in   the   Department   of   the   respondent No.1 and were placed under the respondent Nos.   2 and 3 herein.
2.3 The   petitioners   submit   that   the   respondent   No.1   State   Government   issued   Government   Resolution   dated   17.10.1988   whereby   the   Rojamdars   who   has   completed   certain period of service as on 01.10.1988 they would be   considered as permanent employees and would be absorbed   in regular pay scale and would be given all benefits of   the   permanent   employees.   A   copy   of   the   Government   Resolution dated 17.10.1988 is annexed hereto and marked   as Annexure­B to this petition.
2.4 The   petitioners   submit   that   the   State   Government   thereafter   issued   another   Government   Resolution   dated   30.05.1989 clarifying the resolution dated 17.10.1988 and   answered   almost   all   the   questions   and   confusions   that   were   arising   in   the   various   offices   of   Superintending   Engineers   regarding   implementation   of   the   resolution   dated   17.10.1988.   In   the   said   resolution   dated   30.05.1989, more particularly clause No.6 it was asked as   to what is the pensionable service to be considered for   such   Rojamdars   who  have   been   made  permanent  as   per  the   resolution dated 17.10.1988 and to that query the answer   which was given was that the length of service has to be   considered from the date of joining and each year has to   be   considered   provided   that   the   provisions   of   Sectin   25(B)   of   the   Industrial   Disputes   Act   is   complied   with   meaning   thereby   in   any   year   where   the   Rojamdar   has   completed   240   or   more   days   the   said   year   has   to   be   considered for the purpose of pensionable service. A copy   of the resolution dated 30.05.1989 is annexed hereto and   marked as Annexure­C to this petition.
2.5 Further in clause No.10 it is specifically answered   that   a   year   has   to   be   considered   on   the   basis   of   provisions of Section 25B and thereby year in which 240   days   are   completed   would   be   considered   as   one   complete   year. 
2.6 It   is   therefore   submitted   that   all   the   employees   who have been absorbed on permanent establishment as per   resolution   dated   17.10.1988   would   be   entitled   to   calculation of the pensionable service from the date of   joining.
2.7 It   appears   that   as   far   as   the   petitioners   are   concerned their pensionable services are considered from   01.10.1988 i.e. from the date on which they are absorbed   as   per   Government  Resolution   dated   17.10.1988.   However,   the   said   interpretation   is   going   contrary   to   the   very   resolution   dated   17.10.1988   which   provides   that   the   benefits are to be given from the date of joining and not   from 01.10.1988.
Page 3 of 20 C/SCA/17813/2015 ORDER
2.8 The   petitioners   submit   that   the   respondent   authorities are calculating the pensionable service from   01.10.1988   and   as   far   as   the   petitioners   who   have   retired, their gratuity is paid accordingly whereas the   petitioners   who   are   still   in   service   their   gratuity   is   also   been   calculated   by   considering   the   pensionable   service from 01.10.1988.
2.9 It   is   submitted   that   because   of   the   same   the   petitioners are suffering huge pecuniary loss as about 10   years   of   their   pensionable   service   is   not   being   considered.
2.10 The   petitioners   submit   that   the   State   authorities   are   relying   upon   the   resolution   dated   24.03.2006 wherein the State Government has resolved that   though   there   is   no   case   of   reconsideration   of   the   resolution dated 30.05.1989 but from now onwards the date   from   which   the   employee   is   regularised   the   said   period   shall be considered as pensionable service and the said   period   shall   be   considered   for   payment   of   retiral   benefits.   A   copy   of   the   resolution   dated   24.03.2006   is   annexed hereto and marked as Annexure­D to this petition. 2.11 The   petitioners   submit   that   the   said   resolution is absolutely unjust and illegal inasmuch as   the   State   Government   cannot   take   away   the   rights   and   benefits conferred by the resolution dated 17.10.1988.  2.12 Further, the resolution dated 17.10.1988 was a   result   of   settlement   which   was   arrived   at   between   the   State   Government   and   the   Gujarat   Rajya   Karmachari   Mahamandal   and   other   labour   unions   which   had   made   representations   to   the   State   Government   regarding   the   various pending questions of daily rated employees. The   said   settlement   was   arrived   at   and   subsequent   recommendations   of   Dolatbhai   Parmar   Committee   and   ultimately   resulted   in   passing   the   resolution   dated   17.10.1988.
2.13 Therefore,   if   the   State   Government   wants   to   withdraw   any   benefit   conferred   by   the   Resolution   dated   17.10.1988   then   the   very   method   which   was   adopted   for   conferring   the   benefits   i.e.   for   taking   the   consent   of   the   unions   will   have   to   be   followed   and   the   State   Government unilaterally cannot dilute or curtail any of   the rights conferred by resolution dated 17.10.1988."

5. The respondents have opposed the petition. A  reply   affidavit   is   filed   by   the   Executive  Engineer   wherein   the   deponent   has   averred   and  stated that:

Page 4 of 20 C/SCA/17813/2015 ORDER

"6. I   say   and   submit   that   the   petitioners   date   of   joining are different and therefore out of 54 petitioners   38   petitioners   are   retired   from   the   services   and   the   remaining 16 petitioners are still in service therefore   the  petitioners   who  are   in  service   are  not   entitle   for   the payment of gratuity, as the petitioners are entitle   only   after   his   retirement   and   therefore,   this   16   petitioners   are   not   entitle   for   any   reliefs   as   prayed   for. The copy of list showing details of petitioners are   annexed   herewith   and   marked   as   Annexure­R1   to   this   affidavit.

7. I   say   and   submit   that   as   per   the   Government   Resolution dated 24.03.2006 it is specifically clarified   that   for   the   purpose   of   calculation   of   daily   wager   services for pension and gratuity, the daily wagers are   entitle   for   pension   and   gratuity   from   the   date   of   his   regularization therefore in case of petitioners they are   not   entitle   for   gratuity   from   the   date   of   joining   but   they   are   entitle   from   the   respective   date   of   their   regularization   in  services   and   accordingly,   payment   was   made   by   the   Respondent   Authorities   to   the   petitioners.   The copy of the Government Resolution dated 24.03.2006 is   annexed   herewith   and   marked   as   Annexure­R2   to   this   affidavit.

8. I view of the aforesaid facts and circumstances it   is   clear   that   as   per   the   Government   Resolution   dated   24.03.2006   the   present   petitioners   are   not   entitle   for   gratuity   from   the   date   of   his   joining   but   they   are   entitled from the date of regularisation of this service   and the Respondent Authorities has already made a payment   to   the   petitioners   considering   the   date   of   their   regularization accordingly. Therefore, the petition filed   by the petitioners is required to be dismissed."

6. The   learned   advocate   for   the   petitioners  submitted that the petitioners have retired from  service and on their retirement, the respondents  have   paid   retiral   benefits   including   gratuity,  however,   according   to   the   petitioners,   the  respondents   have   short­paid   the   amount   towards  Page 5 of 20 C/SCA/17813/2015 ORDER gratuity   inasmuch   as   the   respondents   paid  gratuity from and after the date the service of  the   petitioners   came   to   be   regularized.  Differently   put,   according   to   the   petitioners,  the   respondents   have   not   paid   gratuity   for   the  period   from   the   date   of   appointment   until   the  date   on   which   the   petitioners   came   to   be  regularized. The petitioners claim that they are  entitled for gratuity for their entire tenure of  service   rendered   to   the   respondents   and   the  actions of the respondents of not paying gratuity  for   the   period   prior   to   the   date   when   their  service   came   to   be   regularized   is   not   only  illegal   and   arbitrary   but   also   contrary   to   the  G.R.   dated   17.10.1988   as   well   as   G.R.   dated  30.5.1989.

7. Per   contra,   Mr.   Devnani,   learned   AGP  submitted   that   the   petitioners   cannot   claim  gratuity   for   the   period   during   which   their  service were not regularized i.e. for the period  during which the petitioners worked on adhoc and  Page 6 of 20 C/SCA/17813/2015 ORDER daily   wage   basis   and   they   were   not   engaged   on  regular establishment. Learned AGP also relied on  the G.R. dated 24.3.2006 and claimed that by the  said   Resolution   the   Government   clarified   the  anomalies which occurred on account of G.R. dated  30.5.1989  and by  the said  subsequent  G.R.  dated  24.3.2006   government   declared   that   those   daily  wagers   whose   service   came   to   be   regularized  subsequently would be eligible for gratuity from  the date their service came to be regularized and  that   therefore   the   claim   by   the   petitioners   is  not justified. 

8. I have   considered  the  rival  submissions  and  material available on record. 

9. The   facts   involved   in   present   case   are,  broadly,   not   in   dispute.   In   view   of   the  controversy   and   contentions   raised   by   the  contesting   parties,   it   is   relevant   to   note,   at  the   outset   that   the   petitioners,   undisputedly  came   to   be   engaged   on   daily   wage   basis   and   for  Page 7 of 20 C/SCA/17813/2015 ORDER some   time   they   continued   to   serve   with   the  respondents as daily wagers.

10. Subsequently, the respondents granted benefit  of   the   G.R.   dated   17.10.1988   to   present  petitioners. 

11. Consequently, the  service of the petitioners  came   to   be   regularized   in   light   of   and   in  accordance   with   the   G.R.   dated   17.10.1988.   The  petitioners   came   to   be   regularized   in   service  w.e.f. different dates. The relevant details i.e.  the   date   on   which   the   concerned   petitioner  entered in service (as daily wager), total tenure  of   their   service   and   the   date   on   which   the  service  of  the claimant  came  to be regularized,  are   found   in   the   statement   placed   on   record   by  the respondents along with the reply affidavit at  page­66 in SCA No.17813/2016 (relevant page­70 to 

74).   The   said   details,   as   mentioned   above,   are  not in dispute.

Page 8 of 20 C/SCA/17813/2015 ORDER

12. In  this  background,  the  only  question  which  arises   for   consideration   as   to   whether   the  petitioners   are   entitled   for   gratuity   for   the  period prior to the date on which their service  came to be regularized.

13. In this context, it is relevant to take into  account the observation by Division Bench in case  of   State   of   Gujarat   &   Anr.   v/s.   Mahendrakumar  Bhagvandas & Anr., wherein the Division Bench of  this Court observed, inter alia, that: 

"3. According to G.R. dated 17.10.1988, a committee under   the Chairmanship of Honourable Minister, Shri Daulatbhai   Parmar, was constituted to consider conditions of service   of daily rated labourers and artisans employed in several   departments of the State Government. That committee had   submitted   its   report   and   it   was   resolved   to   accept   recommendations   of   the   committee   and   provide   several   benefits   to   the   workmen   concerned   with   effect   from   1.10.1988.   Those   benefits   included   payment   of   minimum   wages,   paid   weekly   holidays,   medical   facility   and   national   holidays.   After   completion   of   five   years   of   continuous service in terms of provisions of Section 25B   of   the   Industrial   Disputes   Act,   1947   such   daily   rated   employees were to be entitled to fixed monthly salary of   Rs.750/­ with dearness allowance prevalent from time to   time   and   few   more   benefits   of   paid   holidays   and   leave   wages   as   well   as   membership   of   provident   fund.   It   is  stipulated in Clause 3 of the G.R. dated 17.10.1988 that   daily   rated   employees,   who   had   completed,   as   on   1.10.1988,   continuous   service   of   ten   years   in   terms   of   the provisions of Section 25B of the Industrial Disputes   Act,   1947,   would   be   treated   as   permanent   and   such   permanent employees shall be entitled to the pay scale of   Rs.750940/­ and shall also be paid dearness allowance and   house   rent   allowance   accordingly.   They   would   also   be   entitled to pension, gratuity and benefits of provident   Page 9 of 20 C/SCA/17813/2015 ORDER fund   in   accordance   with   prevalent   rules.   The   age   of   superannuation for such permanent labourer is fixed at 60   years   and   the   period   of   permanent   service   is   to   be   counted as pensionable service. It is further stipulated   that the employees, who had completed 15 years of service   as   on   1.10.1988,   shall   be   placed   in   the   pay   scale   as   aforesaid and their age for retirement shall be 60 years. Such   workers,   who   would   have   completed   15   years   of   service   on   1.10.1988,   were   to   be   entitled   to   one   increment, and the employees, who had completed 25 years   of   service   were   to   be   granted   three   increments,   before   fixing their wages in the pay scale on 1.10.1988.
4.  Bare   reading   of   above   stipulations   contained   in   the   G.R.   dated   17.10.1988   makes   it   crystal   clear   that   upon   completion   of   ten   years   of   service,   in   terms   of   the   provisions of Section 25B of the Industrial Disputes Act,   1947,   on   or   before   1.10.1988,   daily   rated   employees   to   whom   the   G.R.   applied   were   to   be   treated   as   permanent   employees   with   concomitant   benefits.   It   is   further   clarified   and   resolved   in   clause   (10)   of   subsequent   resolution dated 18.7.1994 that the employees, who were   completing   5/10/15   years   of   continuous   service   due   to   which whose categories would change should be immediately   accorded benefits of the category in which such employees   would   fall.   Government   Resolution   dated   18.7.1994   is,   according to its own preamble, meant to supersede earlier   instructions   issued   vide   government   resolution   dated   3.11.1990.   The   instructions   are   primarily   meant   to   regulate   treatment   of   daily   rated   employees,   who   had   completed one or more years of service on 1.10.1988, with   the stipulation that such employees shall continue to be   treated   as   daily   rated   employees.  Detailed   instructions   have   been   issued   in   said   government   resolution   for   categorizing   such  daily   rated  employees   and   maintaining   their   seniority   lists,   as   also   for   regulating   their   pension   and   termination   of   their   service   by   way   of   retrenchment. At the end, in Clause 15 of the government   resolution, it is stipulated that the word 'permanent' as   used   in   G.R.   dated   17.10.1988   is   intended   to   provide   protection of service but not for treating such employees   on regular establishment of the government.
5.  As noted earlier, subsequent G.R. dated 18.7.1994 is   expressly   superseding   the   instructions   contained   in   government   resolution   dated   3.11.1990   but   does   not   supersede original G.R. dated 17.10.1988. It is also an   admitted   position   that   most   of   substantive   benefits   of   permanent service are already accorded to the employees   concerned in terms of G.R. dated 17.10.1988. Under such   circumstances,   it   was   argued   that   nomenclature   for   treating   the   employees   concerned   as   permanent   was   clarified   by   the   government,   and   hence,   denial   of   few   benefits was justified and in order. However, no ground   or rational basis could be made out for grant of most of   the benefits to most of the employees in terms of G.R.   Page 10 of 20 C/SCA/17813/2015 ORDER dated   17.10.1988   and   for   denial   of   the   remaining   few   benefits.   Once   the   employees   concerned   were,   in   fact,   treated for all purposes as permanent employees in terms   of G.R. dated 17.10.1988, any discrimination or denial of   benefits   for   a   segment   of   such   employees,   who   were   subsequently   rebranded   as   "daily   wager"   (rojamdar)   by   G.R. dated 18.7.1994, could not be rationally explained   and could not be countenanced in the face of Articles 14   and 16 of the Constitution. Nor can the State Government   legally   take   away   the   rights   conferred   and   benefits,   already accorded to the employees concerned by or under a subsequent   government   resolution,   which   expressly   supersedes   earlier   instructions   and   not   earlier   G.R.   dated 17.10.1988 by which the benefits were accorded to   the   employees.   It   also   sounds   absurd   and   baseless   that   employee employed on daily wage basis for 15 years would   be   made   permanent   under   G.R.   dated   17.10.1988   but   subsequently rebranded and treated as a daily wager. The   submission   of   learned   AGP   that   such   employees   had   to   continue as daily wage employee, with limited benefits in   terms   of   subsequent   G.R.   dated   18.7.1994   and   that   they   were   at   best   "permanent   daily   wage   employees",   is   contradictory and has no backing of any legal provision   or precedent. Therefore, there is no reason to interfere   with   the   impugned   common   judgment   except   for   the   clarification made hereunder.
6.  Letters   Patent   Appeal   Nos.960,   961,   964   and   965   of   2001   are   preferred   from   common   oral   judgment   dated   6.4.2000   of   learned   Single   Judge   of   this   Court,  inter   alia, in Special Civil Application Nos.28, 64, 67 and 68   of 1988 whereby original petitioners, working under the   appellants herein, were directed to be given benefits in   following terms:
".................In   terms   of   the   order   passed   in   earlier   case   on   23/10/1999,   the   respondents   are   directed   to   extend   all   the   benefits   of   regular   employees   to   the   petitioner,   who   have   been   made   permanent   employees   in   regular   scale   of   pay   for   more than 10 years of service. They should not be   discriminated   with   other   employees.   With   the  aforesaid   observations   and   direction   all   the  petitions   are   allowed   and   accordingly   disposed   of..............."

14. A profitable reference can also be had to the  decision in case of Executive Engineer Panchayat  (MAA&M)   Department   v.   S.J.Bhedi   [2017   (4)   GLR  Page 11 of 20 C/SCA/17813/2015 ORDER 2952)] wherein the Division bench observed, inter  alia, that: 

"5. Facts are not seriously in dispute. According to the   petitioner, he had completed in all close to 22 years of   service with the Panchayat, during which, he had worked   for more than 240 days in each year. Even if this claim   of having put in 240 days of actual service in each of   the   22   years   is   subject   to   verification,   even   the   original respondents do not dispute that the petitioner   had completed far more than 10 years of such service. It   was precisely because of this reason granting benefit of   Government   Resolution   dated   17.10.1988,   he   was  regularized   in   services   on   31.03.2006.   From   such   date   onwards till he retired, the employee had concededly put   in just over three years of service. The crucial question therefore   is   would   the   past   service   of   completed   years   prior   to   regularization   would   count   towards   pensionary   benefits. 
6.   As   is   well   known,   under   Government   Resolution   dated   17.10.1988, the Government decided to grant benefits of   regularization and permanency to daily rated workers who   had completed more than 10 years of actual service prior   to   such   date,   of   course   subject   to   certain   conditions.   One of the clauses in the said Government Resolution was   that the benefit of regularization would be available to   those   workmen   who   had   completed   more   than   10   years   of   service considering the provisions of section 25B of the Industrial   Disputes   Act.   They   would   get   benefits   of   regular   pay   scale   and   other   allowances,   pension,   gratuity,   regular   leaves   etc.   They   would   retire   on   crossing   age   of   60   years.   That   the   period   of   regular   service shall be pensionable.
7. This Government Resolution led to several doubts. The   Government itself therefore came up with a clarificatory   circular   dated   30.05.1989,   in   which,   several   queries   which were likely to arise were clarified and answered.   Clause 6 of this circular is crucial for our purpose. The   question raised was that an employee who had put in more   than   10   years   of   service   as   on   01.10.1988,   would   be   granted   the   benefit   of   Government   Resolution   dated   17.10.1988.   In   that   context,   the   doubt   was   whether   for   the   purpose   of   pension,   the   past   service   of   completed   years   prior   to   regularization   would   be   considered   or   whether the pensionable service would be confined to the   service   put   in   by   the   employee   after   he   is   actually   regularized.   The   answer   to   this   query   was   that   those   employees who had put in more than 10 years of service as   per Government Resolution dated 17.10.1988 would get the   benefit of pension. For such purpose, those years during   which   the   employee   had   fulfilled   the   provisions   of   section 25B of Industrial Disputes Act, such years would   Page 12 of 20 C/SCA/17813/2015 ORDER qualify for pensionary benefit. 
8. Two things immediately emerge from this clarification.   First is that the query raised was precisely what is the   dispute before us and second is that the clarification of   the   Government   was   unambiguous   and   provided   that   every   year   during   which   the   employee   even   prior   to   his   regularization   had   put   in   continuous   service   by   fulfilling the requirement of having worked for not less   than   240   days   as   provided   under   section   25B   of   the   Industrial   Disputes   Act,   would   count   towards   qualifying   service for pension. In view of the clarification by the   government   itself,   there   is   no   scope   for   any   further   debate.   The   petitioner   was   correct   in   contending   that   having put in more than 10 years of continuous service as   a labourer in the past, he had a right to receive pension   upon superannuation. This is precisely what the learned   Single Judge has directed, further enabling the employer   to   verify   as   to   in   how   many   years   he   had   put   in   such   service and then to compute his pension.
9. Learned counsel Shri Munshaw for the Panchayat however   drew   our   attention   to   some   other   clauses   of   the   said   clarificatory   circular   dated   30.05.1989.   None   of   these   clauses have a direct bearing on the controversy at hand.   These   clauses  merely   refer   to  from   which   point   of  time   such benefits may be available. It may be that benefits   of   regular   services   such   as   regular   pay   scale,   leave,   gratuity   and   pensionary   benefits   may   be   available   only   after regularization of an employee. However, this does   not mean that his past continuous service would be wiped   out for the purpose of pensionary benefits. The stand of   the authorities that only that service which the employee   had   put   in   after   actual   order   of   regularization   would   count for pension is thus in conflict with the Government   circulars itself.
10.   The   issue   can   be   looked   from   slightly   different   angle. As it likely to happen in many cases and appears   to   have   happened   in   the   present   case,   actual   order   of   regularization   may   not   be   passed   immediately   upon   an   employee having put in 10 years of continuous service for   variety  of reasons such as inaction on the part of the  employee to press for such benefits, verification needed   at the hands of the administration and sometimes, sheer   inertia may delay actual regularization. Would that mean,   the   benefit   of   pension   would   be   denied   to   an   employee   because after the belated regularization he did not have   sufficient time to render 10 years of qualifying service?   The answer has to be in the negative.
11. In the past, same or similar issues have traveled to   the Division Benches in Letters Patent Appeals. Learned   Single   Judge   in   case   of  Tribhovanbhai   Jerambhai   v.   Dy.   Executive   Engineer,   Sub   Division,   R   &   B   Deptt.   &   Anr.   reported in 1998 (2) GLH 1, held that once a daily rated   workman is treated to be permanent in terms of resolution   dated 17.10.1988, his entire continuous service from the   Page 13 of 20 C/SCA/17813/2015 ORDER date   of   entry   till   retirement   including   his   services   rendered prior to the date of his regularization has to   be taken into consideration for the purpose of computing   pension or for making pension available to the employee.   This   decision   was   carried   in   appeal   by   the   employer   before   the   Division   Bench.   The   Division   Bench   by   order   dated   04.04.2003   noted   that   the   appeal   had   become   time   barred.   Even   on   merits,   the   Division   Bench   was   not   inclined to take a different view. 
12. In case of Surendranagar Dist. Panchayat and Anr. v.   Umarkhan Alikhan Malek and ors.,  Division Bench of this   Court   in   its   judgment   dated   29.03.2016   rendered   in   Letters   Patent   Appeal   No.2047   of   2004,   considered   the   issue where the employee had sought pensionary benefits   having   worked  from   the   years   1978  to   1991.   The  learned   Single Judge applying the formula of section 25B of the   Industrial Disputes Act held that the employee had put in   continuous   service   for   more   than   10   years   as   a   daily   wager.   He   was   entitled   to   benefit   of   Government   Resolution   dated   17.10.1988   including   the   benefits   of   pension. The administration had merely contended that the   workman had not put in actual 10 years of service after   regularization before he can seek pensionary benefits.
13. Yet again, the Division Bench of this Court in case   of  Chhaganbhai   Ranchhodbhai   Rathod   v.   Dy   Executive   Engineer,  vide   judgment   dated   06.08.1998   rendered   in   Letters Patent Appeal No.1495 of 1997, took up the issue   of   pensionary   benefits   of   a   daily   wager   in   terms   of   Government   Resolution   dated   17.10.1988.   The   controversy   was whether the employee had put in 10 years of service   during which he had worked for not less than 240 days in   every   year.   Learned   Single   Judge   having   rejected   the   petition, the employee had filed the said Letters Patent   Appeal.   The   Division   Bench   applying   the   provisions   of   Section 25B of the Industrial Disputes Act, held that the workman had put in such service of a minimum 10 years and   consequently granted the benefits of pension in terms of   Government   Resolution   dated   17.10.1988.   Here   also   the   authorities had not raised a contention which is sought   to be raised before us.
14. Be that as it may, in view of the discussion above,   we find no merits in this appeal. The same is therefore   dismissed".

15. Before   proceedings   further,   it   is   necessary  to mention that the respondents have opposed the  petitioners'   claim   on   the   strength   of   the   G.R.  dated 24.3.2006. 

Page 14 of 20 C/SCA/17813/2015 ORDER

16. The   said   submission   and   defence   by   the  respondent is misconceived and unsustainable for  more than 1 reasons. 

17. The first and foremost reason being that the  clarification   /   decision   declared   by   the  respondents   vide   G.R.dated   24.3.2006,   so   far   as  it is contrary to the above quoted observation in  the two decisions in case of State of Gujarat &  Anr. v.   Mahendrakumar   Bhagvandas & Anr.(Supra)  and   Executive   Engineer   Panchayat   Department   v.  S.J.Bhedi   (Supra),   cannot   be   sustained.   Such  instructions   cannot   operate,   cannot   prevail   and  Court   would   not   recognise   and   approve   such  instructions or decision.

 

18. The   second   reasons   in   light   of   which  submissions   and   objection   based   on     G.R.dated  24.3.2006   cannot   be   sustained   is   that   the  G.R.dated   24.3.2006   cannot   be   applied  retrospectively   and   that   therefore   the  petitioners   who   came   to   be   engaged   by   the  Page 15 of 20 C/SCA/17813/2015 ORDER respondents   before   the   date   on   which   the     G.R.  came   to   be   issued   and   the   petitioners   whose  service  came  to be  regularised  before  the  State  issued the said G.R i.e. before 24.3.2006, cannot  be deprived from the benefit accrued to them by  virtue   of   G.R.dated   17.10.1988   read   with     G.R.  dated 30.5.1989 i.e. accrued before the date when  the State issued the Resolution (i.e. 24.3.2006).

19. The third reason is that the language/ text  and   the   contents   of   the     G.R.   dated   24.3.2006  itself   oust   or   negates   the   right   and   claim   of  respondents   inasmuch   as   the   Para­1   of   the  Resolution   dated   24.3.2006   itself   categorically  and in  express  terms  clarifies  that  the persons  whose   service   "may   be   regularised  hereafter" 

(i.e.   after   issuance   of     G.R.   dated   24.3.2006)  shall be eligible for the benefits from the date  of regularization. The said Para­1 clarifies two  aspects namely:
Page 16 of 20 C/SCA/17813/2015 ORDER
(i)   that   the   clarification   is   applicable   in  respect of cases where service of the employee is  regularised after 24.3.2006; and 
(ii)  the decision  declared   vide said  G.R.  dated  24.3.2006 does not have retrospective effect and  it would not operate retrospectively.

20. The fourth reason in light of which the right  and   the   claim   of   present   petitioners   cannot   be  denied on strength of  G.R. dated 24.3.2006 lies  in the  G.R. dated 30.5.1989 inasmuch as by means  of   clarification   at   Para­6   of     G.R.dated  30.5.1989 read with Clause of the Para­3 of the  said G.R., it emerges clearly that it was never  intention of the government that the persons who  rendered/   completed   continuous   service   as  contemplated under Section 25B of the Industrial  Disputes Act for 10 years and became eligible for  benefit   under   G.R.dated   17.10.1988  (regularization of service) be deprived from the  benefit  of  gratuity  for  the period   during  which  they rendered service as daily wager.  Page 17 of 20 C/SCA/17813/2015 ORDER

21. The clarification @ Para No.6 of  G.R. dated  30.5.1989   make   it   clear   that   the   person   who  completes   10   years   continuous   service   as  contemplated   under  Section  25B  of the Act  would  be eligible for gratuity without any bifurcation  of service on the basis of pre­regularisation and  post­regularisation period.

22. Of course, the respondents can certainly take  into   account   relevant   factual   aspect   (viz.   the  years   during   which   the   concerned   claimants/  petitioners   completed   continuous   service   in  accordance with Section 25B of the Act) so as to  determine   total   eligibility   period.   However,   it  is   not   permissible   and   not   open   to   the  respondents to deny gratuity for the period prior  to the date of regularization even though during  the said prior period the petitioners/ claimants  rendered   service   for   240   days   i.e.   continuous  service  as  contemplate  under  Section   25B of the  Act.   Neither   the   G.R.   dated   30.5.1989   nor   the  G.R. dated 24.3.2006 contemplated such situation,  Page 18 of 20 C/SCA/17813/2015 ORDER atleast  in  respect  of the  persons  whose  service  came to be regularised in accordance with   G.R.  dated 17.10.1988, prior to G.R.dated 24.3.2006.

23. In this view of the matter, the decision of  the respondent to reject the demand and claim of  the   petitioners   is   unjust   and   cannot   be  sustained.

24. In   light   of   the   facts   of   the   case,   the  petitioners   are   entitled   for   the   relief   prayed  for   in   Para­6(A)   i.e.   for   declaration   that   the  claimants   are   entitled   for   gratuity   from   the  respective dates on which they joined the service  and   not   from   1.10.1988   or   from   the   date   when  their service came to be regularized. 

25. Consequently,   the   petition   is   allowed   with  the declaration that the petitioners (except the  employees whose names are mentioned at Sr. No.40  & 42 to 54 in Annexure  A to the petition) shall  be     paid   gratuity   even   for   the   period   prior   to  1.10.1988/  prior  to date  on which  their  service  Page 19 of 20 C/SCA/17813/2015 ORDER came to be regularised, of course subject to the  condition   of   complying   the   requirement   of  continuous service as contemplated under Section  25B of the Act.

26. The respondents shall take steps to make the  payment of date of gratuity to the petitioners in  consonance with the said decision and declaration  as   expeditiously   as   possible   and   preferably  within 3 months from receipt of certified copy of  the order. 

27. The petitioners will be entitled for interest  at   the   rate   of   6%   for   the   period   from   date   of  retirement until the date of actual payment.

28. With   aforesaid   clarification   and   direction,  the petition is disposed of.

(K.M.THAKER, J) saj  Page 20 of 20