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Factual and Procedural Background

This is a Letters Patent Appeal filed by the State of Punjab against the judgment dated 5.2.2003 passed by a learned Single Judge in CWP No. 1536 of 1988. The writ petition had been filed by 11 respondents (daily wagers) who were engaged on muster roll in Sub Division Nos. 2 and 10 of Division No. III, Mohali, Public Health Department, Government of Punjab, working as Pump Operators, Fitters, Helpers, Drivers, Plumbers, Chowkidars etc. After working on muster roll for periods of about 2–6 years, they sought regularisation of service from dates of engagement and claim for the same pay and facilities as their regular counterparts.

The State's written statement disclosed issuance of instructions dated 20.1.1995 that daily wage employees who had completed ten years or more as on 30.11.1994 would be considered by a Screening Review Committee for regularisation and, if regularised, would receive regular pay scales. The Single Judge, by the impugned judgment dated 5.2.2003, ordered that the respondents be paid minimum of pay scales (as revised from time to time) with permissible allowances for the three years prior to filing the writ petition and directed regularisation of their services.

The State challenged that order by this Letters Patent Appeal. Interim orders included condonation of delay (3.2.2004) and a stay of the impugned judgment (1.10.2004) by reliance on the Supreme Court's decision in State of Haryana v. Tilak Raj (AIR 2003 SC 2658). During the appeal proceedings an affidavit dated 26.2.2007 from the Executive Engineer recorded that nine of the eleven petitioners had been regularised pursuant to the instructions dated 20.1.1995 (and the policy formed in view of State of Haryana v. Piara Singh); two petitioners had left service earlier.

Legal Issues Presented

  1. Whether the respondents (daily wage/muster-roll employees) were entitled to payment of the minimum of the pay scales (as revised from time to time) with permissible allowances for the three years prior to the date of filing the writ petition.
  2. Whether the Single Judge's direction to pay such retrospective minimum pay and allowances to the daily wagers was legally sustainable in view of subsequent higher judicial pronouncements.

Arguments of the Parties

Appellant (State of Punjab) — main contentions

  • The Single Judge's direction to pay the respondents the minimum of pay scale with permissible allowances for the three years prior to the writ petition was illegal and unsustainable.
  • Relied on later Supreme Court decisions, specifically State of Haryana v. Tilak Raj (AIR 2003 SC 2658) and State of Haryana and others v. Charanjit Singh (2006) 9 SCC 321, to support the contention that daily wagers are not entitled to equal pay for equal work or to the scale attached to a sanctioned post where they hold no post.

Respondents (petitioners) — main contentions

  • The Single Judge's directions were lawful and valid, entitling daily wagers to minimum of pay scale and allowances; reliance was placed on earlier decisions such as Randhir Singh v. Union of India (AIR 1982 SC 879), Surinder Singh v. Engineer-in-Chief, CPWD (AIR 1986 SC 584), Bhagwati Prasad v. Delhi State Mineral Development Corporation (1992), and the Full Bench decision in Vijay Sharma v. State of Punjab (2002 (1) SCT 931), and a Division Bench decision in Tilak Raj v. State of Haryana (2002(2)SCT 349).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
State of Punjab & Others v. Devinder Singh (Civil Appeal No. 4492 of 1997, arising out of SLP (C) No.1502 of 1997) Listed among authorities relied upon by the Single Judge in support of granting relief to daily wagers. The Single Judge had relied upon this decision; the present court recorded it as one of the earlier authorities invoked by the Single Judge but did not elaborate its rule in the opinion.
Kulbir Singh & Others v. The State of Punjab (CWP No.10017 of 1995) Listed among authorities relied upon by the Single Judge. Noted by the court as cited by the Single Judge; no further exposition of its holding in this opinion.
Balwinder Singh & Others v. State of Punjab (CWP No.7807 of 1999) Listed among authorities relied upon by the Single Judge. Recorded as cited by the Single Judge; the present judgment does not set out its detailed principle.
State of Haryana v. Piara Singh (decided 12.8.1992) Authority forming the basis of the policy/instructions under which daily wagers could be considered for regularisation. The court found that the State had regularised nine of the eleven respondents in pursuance of the instructions framed in view of Piara Singh; consequently, directions for regularisation stood satisfied.
State of Haryana v. Tilak Raj (AIR 2003 SC 2658) Supreme Court held that daily wagers, holding no post, cannot be granted equal pay for equal work (scale of pay attaches to a definite post); recognised only the need to pay minimum wages. The present court treated this later Supreme Court decision as binding and as taking a contrary view to earlier High Court/Full Bench precedents relied on by respondents; it substantially influenced the court's conclusion that respondents were not entitled to equal pay or to the minimum of revised pay scales with allowances.
State of Haryana & others v. Charanjit Singh & others (2006) 9 SCC 321 Held that the doctrine of equal pay for equal work is not a mechanical application; High Court must examine relevant factors; contractual employees cannot claim equal pay on that doctrine. The court relied on this Supreme Court decision to emphasize that equal pay claims require examination of multiple factors and that contractual employees are excluded from claiming equal pay; this supported the court's view that respondents failed to discharge the necessary burden.
Randhir Singh v. Union of India & others (AIR 1982 SC 879) Held classification denying equal pay was irrational and ordered fixing pay of petitioners at least at par with comparable posts where duties were similar or more onerous. The court summarized this authority to show the principle that similarly placed employees discharging similar or more onerous duties may be entitled to comparable pay; it formed part of the respondents' supporting authorities but was considered in the context of later contrary Supreme Court pronouncements.
Surinder Singh v. Engineer-in-Chief, C.P.W.D and others (AIR 1986 SC 584) Relied on Article 39 (Directive Principles) and Randhir Singh to hold that daily wagers could not be denied equal pay for equal work. The court recorded this case as supporting equal pay claims by daily wagers, but noted later Supreme Court decisions that qualified or departed from this approach.
Bhagwati Prasad v. Delhi State Mineral Development Corporation (1992 (8) SLR 784) Held daily rated workers were entitled to equal pay at par with regular appointees and to scale of pay and allowances as revised from time to time. The decision was recorded among earlier authorities supportive of equal pay; the present court treated such earlier authorities as overtaken by later Supreme Court rulings.
Vijay Sharma v. State of Punjab (Full Bench) 2002 (1) SCT 931 Full Bench held that casual/daily rated workers who had continuity of service, performed similar duties satisfactorily, were entitled to minimum of the pay scale (basic pay plus dearness allowance) admissible to regular counterparts. The Full Bench decision was relied upon by respondents; the present court noted that subsequent Supreme Court decisions had taken a different view and therefore limited the application of this Full Bench ratio.
Tilak Raj and others v. State of Haryana and others (Division Bench) 2002(2)SCT 349 Division Bench of the High Court (relying on the Full Bench in Vijay Sharma) held daily wagers entitled to minimum of pay scales with dearness allowance. The Division Bench's view was recorded; the Supreme Court's later decision in State of Haryana v. Tilak Raj (AIR 2003 SC 2658) was held to have reversed this approach.
Indian Drugs & Pharmaceuticals Ltd. v. Workmen (2007) 1 SCC 408 Held that no direction can be given that a daily wage employee should be paid the salary of a regular employee; if not appointed against a sanctioned post, an employee is not entitled to any scale of pay. The court relied upon this later Supreme Court authority to reinforce that daily wagers not appointed against sanctioned posts are not entitled to a regular pay scale; it supported the court's conclusion rejecting retrospective scale awards.

Court's Reasoning and Analysis

The court proceeded by first recording the factual development on the record — notably the affidavit of 26.2.2007 showing that nine of the eleven petitioners had been regularised pursuant to the policy flowing from the decision in State of Haryana v. Piara Singh and the instructions dated 20.1.1995, while two petitioners had earlier left service. The court then examined the judicial authorities relied upon by both sides.

The court observed that earlier High Court decisions and some Supreme Court decisions (as relied upon by the respondents) supported the doctrine of equal pay for equal work and had at times directed payment of minimum of pay scales to long-serving daily wagers. However, the court noted subsequent pronouncements by the Supreme Court (in particular State of Haryana v. Tilak Raj and Indian Drugs & Pharmaceuticals Ltd. v. Workmen) that took a contrary view: a daily wager who holds no post and is not appointed against a sanctioned post cannot be granted the pay scale attached to a definite post; while the need to ensure minimum wages was recognized, the automatic grant of a scale of pay or payment equivalent to regular employees was disapproved.

The court emphasized the standard it considered applicable to claims based on "equal pay for equal work": the claimants must establish substantial equivalence with regular counterparts across several dimensions — specifically (i) qualifications, (ii) mode of recruitment, (iii) discharge of duties, and (iv) degree of responsibility. The opinion states that this is an onerous burden and found that the respondents had failed to discharge it. It was also significant that during the appeal most petitioners had been regularised and were receiving pay and allowances in terms of the 1995 instructions, and two had left employment earlier.

Taking the later Supreme Court decisions as determinative and later in point of time relative to the earlier High Court/Full Bench decisions relied on by respondents, the court concluded that the respondents were not entitled to payment of equal pay for equal work or to payment of minimum of the pay scales as revised from time to time with permissible allowances for the period claimed.

Holding and Implications

Core Ruling: The Letters Patent Appeal is allowed. The impugned judgment and order dated 5.2.2003 passed by the learned Single Judge in CWP No. 1536 of 1988 is set aside to the extent it directed the appellants to pay the petitioners the minimum of the pay scale (as revised from time to time) with permissible allowances for the three years prior to the date of filing of the writ petition.

Implications:

  • Direct effect on the parties: The retrospective payment direction (minimum of the pay scale with allowances for the three years prior to filing) ordered by the Single Judge has been vacated. The State's appeal succeeds on that point.
  • Regularisation: The court recorded that the State had regularised nine of the eleven petitioners pursuant to the instructions of 20.1.1995 (in view of Piara Singh); thus, insofar as the Single Judge's direction for consideration/regularisation was concerned, that relief stood satisfied on the record.
  • Precedential note: The court relied on later Supreme Court decisions that limit or qualify the doctrine of automatic application of equal pay for equal work to daily wagers who are not appointed against sanctioned posts. The opinion treats the later Supreme Court pronouncements as controlling, and, therefore, the judgment does not purport to create any new broad precedent beyond applying those higher court rulings to the facts here.

Judgment delivered by Jaswant Singh, J.; date recorded as 7.1.2009.

    The State Of Punjab And Others v. Rajinder Singh Etc.

    Jaswant Singh, J.

    The present Letters Patent Appeal has been filed by the State of Punjab against the judgement dated 5.2.2003 passed by learned single Judge in CWP No. 1536 of 1988, whereby it has been ordered that the respondents-petitioners, daily wagers, be paid the minimum of pay scales, as revised from time to time with permissible allowances for a period of three years prior to the date of filing of writ petition; and with a further direction for regularisation of their services.

    Facts in brief are that the 11 respondents-petitioners were engaged on muster roll on daily wage basis in Sub Division Nos. 2 and 10 of Division No. III, Mohali, Public Health Department, Government of Punjab. They were engaged as daily wage Pump Operators, Fitters, Helpers, Drivers, Plumbers, Chowkidars etc. After having worked for 2-6 years on muster roll, they filed CWP No. 1536/1988, praying for regularisation of their services from their dates of engagement/appointment, and also for grant of same pay and facilities as admissible to their counter parts working on regular basis. The appellants/respondents/Government of Punjab filed written statement disclosing that during the pendency of the writ petition, instructions dated 20.1.1995 (Annexure P/1) have been issued laying down that daily wage employees who have completed ten years or more as on 30.11.1994 shall be considered by the Screening Review Committee constituted by the Head of Department for regularisation on the availability of posts and accordingly their cases for regularisation will be considered, their services will be regularised and they will be paid regular pay scales.

    The learned single Judge vide impugned judgement dated 5.2.2003 allowed the writ petition with a direction to appellants/State of Punjab to pay the respondents-petitioners the minimum of pay scales as revised from time to time with permissible allowances, which were being given to similarly placed regular employees, for the last three years prior to the date of filing of the writ petition, by relying upon the following judgements:-

    (i)State of Punjab and Others v. Devinder Singh and others, Civil Appeal No. 4492 of 1997 (arising out of SLP (C) No. 1502 of 1997;

    (ii)Kulbir Singh and Others v. The State of Punjab and another (Civil Writ Petition No. 10017 of 1995) decided on August 20, 1998;

    (iii)Balwinder Singh and Others v. State of Punjab and Others (Civil Writ Petition No. 7807 of 1999) decided on February 14, 2000; and

    (iv) State of Haryana v. Piara Singh, decided on August 12, 1992.

    Aggrieved against the aforesaid direction, the appellant/State of Punjab has filed the present Letters Patent Appeal.

    This Court vide interim order dated 3.2.2004 allowed CM No. 1356/2003 and thereby condoned the delay in filing the appeal and further vide interim order dated 1.10.2004 by relying on the ratio of the judgement of Hon'ble Supreme Court in State of Haryana v. Tilak Raj, AIR 2003 SC 2658 (paragraphs 12 and 13) stayed the operation of impugned judgement under appeal.

    We find that during the hearing of the present appeal, at the motion stage, the appellants filed an affidavit dated 26.2.2007 of Sh. S.C Gupta, Executive Engineer, 3rd Water Supply and Sanitation (GW) Division, Mohali, on directions of the Court, wherein it was specifically stated that all Pump Operators who were appointed alongwith the respondents, without any discrimination were regularised in pursuance of the instructions dated 20.1.1995 (Annexure R/1). The affidavit further discloses position with regard to all the 11 respondents-petitioners, which reads as under:-

    Sr. No.

    Name of the petitioner

    Designatio n

    Date of joining

    Date of regularisation

    Present pay scale

    1 Rajinder Singh

    Pump Operator

    07/07/82 01/09/92

    3120-

    5160

    Harbans Singh Pump

    Operator

    2

    01/06/82 01/09/92

    3120-5160

    Didar Singh

    Pump Operator

    01/09/84

    01/12/94

    3120-5160

    3

    4 Omesh Kumar Pump Operator

    01/08/82 Left the job in 7/89

    -

    5

    Rupinderjit

    Singh

    Pump Operator

    01/10/84 01/10/94

    3120-5160

    Surinder Singh Pump

    Operator

    1//7/84 18/05/01

    3120-

    5160

    6

    7 Sarabjit Singh Fitter Helper

    24/6/86 Left the job in 7/91

    -

    Balbir Singh

    Driver

    25/11/85 23/01/01

    3120-

    5160

    8

    Jaswant Singh Plumber

    01/12/86 23/01/01

    3120-

    5160

    9

    Pump Operator

    01/04/86 18/05/01

    3120-

    5160

    10

    Raj Singh

    2620-

    4140

    11

    Ramjit Yadav Chowkidar 01/12/84 18/05/01

    It is, therefore, clear from the contents of the affidavit that the above stated nine respondents-petitioners were regularised and they are getting pay and allowances at par with their counterparts, in terms of the instructions dated 20.1.1995, whereas two of the respondents-petitioners namely Omesh Kumar and Sarabjit Singh at Sr. No. 4 and 7 have left the job of their own in July 1989 and July 1991 respectively. Thus, so far as the directions for considering the case of the respondents-petitioners for regularisation as per decision rendered in the case of State of Haryana v. Piara Singh, stands satisfied.

    Learned counsel for the appellants has contended that the directions issued by the learned single Judge for grant of minimum of pay scale with permissible allowances; similar to regular employees for the period of three years prior to the date of filing of writ petition is illegal and not sustainable. In support of the same he has relied upon the judgements of Hon'ble Supreme Court reported as State of Haryana and another v. Tilak Raj and others, AIR 2003 SC 2658;

    State of Haryana and others v. Charanjit Singh and others (2006) 9 SCC 321.

    On the other hand learned counsel for the respondents-petitioners has argued that the directions passed by the learned single Judge are in accordance with law and therefore valid. In support of the same he relied upon the judgements in Randhir Singh v. Union of India and others AIR 1982 SC 879; Surinder Singh and another v. The Engineer in Chief, C.P.W.D, and others, AIR 1986 SC 584; and Bhagwati Prasad v. Delhi State Mineral Development Corporation 1992(8) SLR 784 and Full Bench decision of this Court in Vijay Sharma v. State of Punjab 2002 (1) SCT 931; and a Division Bench of this Court in Tilak Raj and others v. State of Haryana and others, 2002(2)SCT 349.

    It would be appropriate to consider the judgements relied upon by the learned counsel for the parties before deciding the entitlement of the respondents-petitioners for grant of minimum of the pay scale.

    In Randhir Singh's case (supra) their Lordships of the Supreme Court dealt with the claim of the Drivers working in the Delhi Police force, who were claiming equal pay for equal work at par with Drivers in service of Delhi Administration and other organisations. It was in fact, admitted by the department that the duties of the Drivers of Delhi Police force were more onerous than the duties performed by the Drivers in other departments. However, equal pay for equal work was denied to them only on the ground that both sets of employees were working in different departments. It was in this context that their Lordships held that the classification done by the respondents is irrational and as such a direction was issued to the respondents to fix the scale of pay of the petitioners and the Drivers Constables of the Delhi Police force at least at par with Drivers of the Railway Protection Force etc.

    In the case of Surinder Singh's (supra) daily wagers had claimed equal pay for equal work at par with regular employees. Their Lordships placed reliance on directive principles of the State policy and specifically Article 39 of the Constitution of India and further relying on the case of Randhir Singh's (supra), it was held that the daily wagers cannot be denied equal pay for equal work at par with regular employees.

    In Bhagwati Prasad's case (supra), the claim of daily rated workers for grant of equal pay for equal work at par with regular employees was examined. It was held that the petitioners are entitled to equal pay at par with persons appointed on regular basis to the similar posts and discharging similar duties. It was further held that they were entitled to the scale of pay and other allowances revised from time to time for the said posts.

    A Full Bench of our own High Court dealt with the issue in the case of Vijay Sharma's cases (supra). It was held that the petitioners who are working as Ledger Clerks, Ledger Keepers, Pump Operators, Mali-cum-Chowkidars, Fitters, Petrol Man and Surveyors etc., and who were employed by the State as casual or daily rated workers; have worked for a fairly reasonable time indicating continuity in service and functions and duties being discharged by them is similar as that being done by regular employees and working performance of the employees being satisfactory, are entitled to minimum of the pay scale (basic pay plus dearness allowance alone) admissible to their counterparts working on regular basis in the same department.

    In Tilak Raj v. State of Haryana (supra) a Division Bench of this Court relying upon the Full Bench decision of this Court in Vijay Sharma's case (supra) held that the daily wagers working as helpers for a considerable period of time in the Haryana Roadways Department and performing similar functions like their counterparts in the regular cadre were held entitled to minimum of pay scales with dearness allowance.

    There cannot be any dispute about the proposition of law apparent from the judgements cited and relied upon on behalf of the respondents-petitioners unless one goes through the law declared by the Hon'ble Apex Court in later points of time.

    Learned counsel for the appellant-State of Punjab placed reliance on decisions of the Hon'ble Supreme Court in the case of State of Haryana v. Tilak Raj's case (supra) in which their Lordships have taken a contrary view in as much as in that case the daily wagers had claimed equal pay for equal work at par with regular and permanent staff. Their Lordships held that since daily wagers hold no post and scale of pay and scale of pay is attached only to a definite post, therefore, they cannot be granted equal pay for equal work. However, the need to pay such daily wagers the minimum wages was recognised. By this judgement the Hon'ble Supreme Court in the background of the stated legal principles held that the judgement of the High Court reported in Tilak Raj v. State of Haryana, 2002(2) SCT 349 was clearly indefensible and the same was set aside. Thus, by implication set aside the ratio of the judgement rendered by a Full Bench of this Court in Vijay Kumar's case (supra).

    The Hon'ble Supreme Court in another decision rendered in Indian Drugs and Pharmaceuticals Limited v. Workmen Indian Drugs and Pharmaceuticals (2007) 1 SCC 408 held that no direction can be given that a daily wage employee should be paid salary of a regular employee. If an employee is not appointed against a sanctioned post as per rules, he is not entitled to any scale of pay.

    In Charanjit Singh's case (supra), the Hon'ble Supreme Court examined the Full Bench decision of this court in Vijay Sharma's case (supra) in the case of daily wagers. It was held that the High Court had blindly proceeded on the basis that the doctrine of equal pay for equal work applies without examining any relevant factors for arriving at the conclusion that the daily wagers were entitled to the minimum of the pay scale granted to their counterparts and as such matters were remitted back to the High Court to examine each case on the basis of material placed before it. In para 19 of the said judgement, it was held that the principle of equal pay for equal work is not mechanical application in every case. Equal pay must be for equal work of equal value. The principle requires consideration of various dimensions of a given job.

    In so far contractual employees are concerned, it was held that this category cannot claim equal pay on the doctrine of equal pay for equal work.

    In the present case, keeping in view the aforestated legal principles, it is incumbent upon the respondents-petitioners to discharge the burden of establishing wholesale equivalence between them and their regular counterparts in terms of (i) qualification, (ii) mode of recruitment, (iii) discharge of duties; and (iv) degree of responsibility. On examining the pleadings we find that the respondents-petitioners have failed to discharge that onerous burden which would entitle them to invoke the doctrine of equal pay for equal work. Admittedly they have been getting the minimum wages. During the pendency of the Letters Patent Appeal their services have been even regularised in view of the policy framed in view of Piara Singh's case (supra). Therefore, having regard to the aforestated decision rendered by the Hon'ble Supreme Court especially in State of Haryana v. Tilak Raj's case (supra), we have no doubt in our mind that the respondents-petitioners who were working on daily wage basis prior to their regularisation are not entitled to payment of equal pay for equal work at par with regular employees or in that matter even the minimum of the pay scales as revised from time to time with permissible allowances. The decisions rendered by the Hon'ble Supreme Court in support of said view are definitely in later points of time as compared to decisions cited by respondents-petitioners and as such those are of no help to them.

    In the light of the above discussions, we have no hesitation in holding that this Letters Patent Appeal merits acceptance. It is accordingly allowed. The impugned judgement and order dated 5.2.2003 passed by the learned Single Judge in CWP No. 1536 of 1988 is set aside to the extent it directs the appellants to pay the petitioners minimum of the pay scale as revised from time to time with permissible allowances which are being given to the similarly placed regular employees for the last three years prior to the date of filing of the writ petition.

    (Jaswant Singh)

    Judge

    7.1.2009 (Satish Kumar Mittal)joshi Judge

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    The State Of Punjab And Others v. Rajinder Singh Etc.
    (Jan 7, 2009)