Chhaganbhai Kohyabhai Pateliya and Others v. The State of Gujarat and Others

Facts

The appellants were daily-wage skilled workers in the Gujarat Irrigation Department who rendered service in excess of 30 years and retired on 30th June in various years. They were denied the benefit of annual increments falling due on 1st July after their retirement. A learned Single Judge of the Gujarat High Court allowed their writ petition; a Division Bench, however, reversed that order holding daily-wagers were not entitled to increments reserved for regular employees. The appellants challenged the Division Bench order in this Court.

Issues

• Whether daily-wage skilled workers who were treated as permanent under Government Resolution dated 17.10.1988 are entitled to the benefit of annual increment that fell due immediately after their retirement.
• If entitled, the temporal extent of pension enhancement in light of this Court’s decisions and subsequent modifications (including application of C.P. Mundinamani and related orders).

Arguments

• Appellants relied on the Government Resolution (17.10.1988) which treated daily-wage skilled workers (with ≥10 years’ service as on 01.10.1988) as permanent for payscale, allowances and retiral benefits, and on this Court’s decision in C.P. Mundinamani and follow-ups.
• The State argued these were daily-wagers not entitled to increments accorded to regular employees and sought to distinguish Mundinamani.

Decision and reasoning

The appeal was allowed. The Court held that the appellants fell within the category covered by the Government Resolution dated 17.10.1988 and were treated as permanent employees for pay, allowances and pensionary benefits; therefore they could not be denied increments merely on the label "daily-wager." The Court applied the ratio of C.P. Mundinamani and subsequent orders (including directions embodied in the disposal dated 20.02.2005 as extracted in the judgment) and observed that appellants, having filed writ petitions in 2022, are covered by the modified clause (d) which entitles enhanced pension by including one increment for the period of three years prior to the month in which the writ petition was filed. The authorities were directed to verify cases, work out amounts in light of the modified clause (d), and release dues within 30 days; failure to comply would attract interest @ 6% p.a. from date of default. The Court noted earlier rulings that no interest would be payable on arrears generally, but emphasized compliance timelines and consequences of default.

Key takeaways

• A Government Resolution treating long-serving daily-wage skilled workers as permanent governs their entitlement to increments and retiral benefits.
• This Court’s precedents (C.P. Mundinamani and follow-ups) and the modified clause (d) permit enhancement of pension by one increment for eligible retirees, limited to three years prior to filing where applicable.
• Authorities must verify and disburse arrears within the stipulated 30 days; failure attracts interest @ 6% p.a.