Union of India & Ors Vs. Dharma Pal
& Ors  INSC 471 (29 March 1996)
K.Ramaswamy, K.G.B. Pattanaik (J)
1996 SCC (4) 195 JT 1996 (4) 371 1996 SCALE (3)672
APPEAL NO. 7065, 7063-64 OF 1996 (Arising out of SLP (C) No. 2967/94, 27737
O R D
have heard learned counsel on both sides.
to the direction given by this Court the appellants have framed the scheme. Shri
K.B. Sharma, Superintending Engineer, Construction Circle No.2, Chandigarh
Administration has placed the same along with the additional affidavit. The
scheme has been approved by the Central Government. The scheme reads as under:
work charged employees:
All the works establishment [excluding office of Ministerial Clerical and
drawing cadres below the level of Junior Engineers engaged in the
construction/execution of maintenance work shall be called 'Work Force'. The
work force includes buildings, roads, public health activities comprising
augmentation of water supply canals drainage, electrical and electricity etc.
The 'work division' shall be a unit for casual or daily wage work force and a
'circle' for work charged establishment. Separate cadre and seniority list for
each category shall be maintained in the Division and Circle as the case may
Workers engaged on jobs, which are likely to be of a short duration, i.e., less
than 240 days in a year will be terminated on completion of work. No seniority
list of such workers will be required to be maintained.
Workers who have completed five years service as on 31st August, 1995 will be
considered for regularization against the available regular posts subject to
the fulfillment of requirement as laid down in the Recruitment Rules for the
post in question, if they were recruited before 6.1.1992 the date on which a
ban was imposed on the recruitment or daily/casual workers.
Since a complete ban on recruitment of work charged casual/daily wage employees
was imposed by Chandigarh Administration, those recruited in contravention of
this policy decision after this dated i.e. 6.1.1992 will be considered for
their regularization only on the assessment of justification/requirements on
the basis of norms approved for the continued nature or work and attaching the
specific approval of Home Department, Chandigarh Administration.
Casual/Daily Wagers v) Workers working as Casual labourers in works which have
more or less fixed period of completion will be eligible for payment of
benefits as admissible to them under rules. However, they will not be
considered for regularization automatically. Their requirement has to be
reassessed after commissioning the work. Thus, the workers will be liable to be
retrenched on completion of works except categories in limited numbers who are
required for the operation and maintenance of the completed works. In their
cases specific approval of the Home Department should be taken.
Daily wage employees who have completed 10 years or more service as on
31.8.1995 shall be considered for regularization w.e.f. 31.8.1995 on the
availability of posts. Such employees shall be entitled for minimum of the
scale w.e.f. the date of their regularization. On regularization, these
employees shall be liable for transfer any where within the Engineering
Department, U.T. Chandigarh.
In respect of all such daily wages employees, who have not yet completed 10
years service, a special review should be carried out at the level of Head of
Department regarding their requirement.
In the case of those employees whose services are no longer required and have
been taken after 6.1.1992 and specific approval of Home Department, Chandigarh
Administration does not exist, they may be relieved of their duties at the
earliest possible." Shri Poti, learned senior counsel has brought to our
notice letter dated January
4, 1996 addressed by
the Joint Secretary, Personnel to all the heads of the Departments in which it
was stated that they were examining the payment of the D.A., C.C.A., H.R.A. to
all the daily wage workers. By our order dated January 18, 1996, while quoting
the above letter that Shri K. Nadhava Reddy, learned senior counsel when was
confronted with the same, had expressed his inability to respond to the same.
Consequently, we have directed him to obtain instructions in that behalf. Shri
Reddy has stated today that pursuant to that letter follow up action was taken
by the appellants in their letter dated March 4, 1996 wherein the appellants had examined
the impact of the direction issued by the Administrative Tribunal. It is stated
that 3647 daily wage/casual employees are now on the muster rolls. If D.A.,
H.R.A. and C.C.A are allowed at full rates it would work out at the approximate
rate Rs.8 crores. Therefore, direction seeking their approval has been sought
from the Government of India. He stated that the Government of India was not
willing to extend the same benefit though formal order has not been
communicated so far. The Government of India is willing to permit the appellant
to pay 60% of the amount of the minimum pay on par with Punjab pattern Instead of D.A., H.R.A. and
C.C.A., appellants, therefore, are willing to continue to pay to the daily wage
workers above 60% subject to the above scheme.
Sharma, learned senior counsel appearing for all the respondents in appeal
arising out of SLP No.27844/95 has brought to our notice the provisions of the
Equal Remuneration Act, 1976 and Schedules 5 and 3 of the Industrial Disputes
view of the rival contentions, the only question is whether the appellant would
be permitted to proceed in the light of the scheme framed by them or give
direction to continue to pay, as directed by the Tribunal. After giving due
consideration to the respective contentions, we think that the appropriate
course would be to give approval to the scheme framed by the appellants. In
view of the settled law by recent decisions all the daily wage employees are
required to be regularized in accordance with the rules invogue following the
principles of rules of recruitment, reservations and existence of vacancies.
Admittedly, there is no rules operating in the field. As a result, all of them
have been continuing on daily wage basis. It is true that CAT at Chandigarh had on earlier occasion directed to
pay to 88 daily wage employees D.A., H.R.A. and C.C.A. Instead of the repetetion,
we think that the scheme requires enforcement.
view of the scheme now framed, the appellants are directed to regularize all
those who have completed the prescribed period of days, viz., 240 days against
the existing vacancies applying the rules of reservation in the order of
seniority in the respective categories mentioned in the scheme. Such
regularized employees would be entitled to all the regular payment at the scale
of pay prescribed to the Central Government employees. Those who could not be
regularized are directed to be regularized in the order of seniority as and
when vacancies arise. Work would be continued to be taken from them as long as
the work exists.
those who were engaged as daily wage/casual labour, who could not complete 240
days but were required to be retrenched, the procedure prescribed for
retrenchment under the Industrial Disputes Act should be followed. A list of
them in the order of seniority should be maintained. Last- come first-go
principle should be followed in that behalf.
when vacancies arise or need for the work arises, they should be called for
work immediately without asking them to get their names sponsored by the
Employment Exchange The daily wage workers/casual workers who are regularized
and taken work from them are entitled to minimum of scale of pay prescribed for
that post. In addition to that, they are also entitled to 60% of the D.A. at Punjab pattern which is being followed in
all other cases. The payment to all the candidates whose service are regularise/continuing
on daily wage/casual labour shall be calculated from one year prior to the date
or filing the application in the Central Administrative Tribunal, Chandigarh.
The appellant are directed to pay the same within a period of four months from
appeals are accordingly disposed of. No costs .