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State Of Gujarat v. Manjuben

Gujarat High Court
Jun 29, 2018
Smart Summary (Beta)

Factual and Procedural Background

This Letters Patent Appeal is directed against an order dated 11.01.2017 passed by a learned Single Judge directing the State (the present appellants) to grant compensation to the petitioners (the present respondents) in lieu of compassionate appointment.

The litigation arises from a claim by the legal heirs of a deceased employee for compensation under a Government Resolution dated 05.07.2011 (which provides compensation in lieu of compassionate appointment to heirs of certain Class III and IV employees). The deceased was initially appointed as a Rojamdar (daily wager) Driver on 20.06.1987. According to the service book examined by the Court, after completion of five years he was granted the benefit of Government Resolution dated 17.10.1988, was treated as a Work Charge employee with pay of Rs. 950 per month effective from 01.01.1995, was placed under Work Charge establishment on 13.01.1999, and was later placed on a regular pay scale (order dated 13.12.2007) with subsequent pay revisions and increments. The deceased died in service on 02.02.2013. His heirs sought compensation under the Resolution dated 05.07.2011. The Single Judge had directed payment of compensation, and the State filed this Letters Patent Appeal challenging that direction.

Legal Issues Presented

  1. Whether the Government Resolution dated 05.07.2011 conferring grant of compensation to the legal heirs of a government employee after his death can be refused on the ground that the employee's initial appointment was as a daily wager (Rojamdar).

Arguments of the Parties

Appellants' (State) Arguments — as presented by learned AGP

  • Clause 2 of Government Resolution dated 05.07.2011 confines compensation to heirs of Class III and IV government employees who were appointed through a regular recruitment process and completed five years of service.
  • Daily wagers are excluded by Clause 2; since the deceased's initial appointment was as a daily wager, he cannot be treated as a government employee for the purpose of this resolution.
  • Therefore, the Single Judge misconstrued the Resolution and the direction granting compensation to the heirs is contrary to the Resolution and should be quashed and set aside.

Respondents' Arguments — as presented by their counsel

  • The order of the Single Judge should be upheld because the deceased's status was subsequently changed from daily wager to regular/permanent employee and he was given a regular pay scale.
  • After being granted the benefit of Government Resolution dated 17.10.1988, the deceased was made a regular employee; therefore, under the terms of Resolution dated 05.07.2011 the heirs are entitled to compensation.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
State of Gujarat & Anr. Versus Mahendrakumar Bhagvandas & Anr., (2011) 2 GLR 1290 The Division Bench considered Government Resolutions dated 17.10.1988 and 18.07.1994 and held that benefits conferred by G.R. dated 17.10.1988 effectively treated employees as permanent; once substantive benefits were accorded by G.R. 17.10.1988, those benefits could not be taken away by subsequent rebranding (G.R. 18.07.1994). The decision invoked Articles 14 and 16 of the Constitution in support of this proposition. The Court relied on this authority to support the proposition that employees who were regularized and treated as permanent by G.R. 17.10.1988 cannot be reverted to the status of daily wager for the purpose of denying benefits to their heirs under the 05.07.2011 Resolution.
Executive Engineer Panchayat (Maa & M) Department vs Samudabhai Jyotibhai Bhedi, (2017) 4 GLR 2952 The Division Bench explained that under G.R. dated 17.10.1988 regularization/permanency was granted to daily rated workers who had completed more than 10 years of actual service (subject to conditions), with reference to section 25B of the Industrial Disputes Act, and that such regularized employees obtain benefits like regular pay scale, pension, gratuity and other attendant benefits. The Court cited this authority to reinforce that benefits conferred by G.R. 17.10.1988 include pensionable regular service and other benefits, supporting the conclusion that regularized work-charge employees should be treated as regular employees for purposes of entitlement under G.R. 05.07.2011.

Court's Reasoning and Analysis

The Court's analysis proceeded in these principal steps, based exclusively on the material before it:

  1. Identification of the interpretive question: Clause 2 of G.R. 05.07.2011 supplies compensation to heirs of Class III and IV employees, but excludes daily wagers, casual workers, apprentices, adhoc, contract or reinstated employees. The Court framed the issue whether exclusion applies where a deceased employee was initially a daily wager but subsequently regularized.
  2. Examination of the deceased's service record: The Court examined the service book and found (as undisputed facts in the record) that the deceased was appointed as a Rojamdar Driver on 20.06.1987; after five years he was granted benefits under G.R. 17.10.1988, was appointed as a Work Charge employee at pay Rs. 950 per month effective 01.01.1995, placed under Work Charge establishment on 13.01.1999, and — considering continuity of service — placed on a regular pay scale by order dated 13.12.2007 with increments and later pay revisions (including notation of revised pay and grade pay as on 01.07.2006). He died in service on 02.02.2013.
  3. Application of Clause 2 to the proven facts: Clause 2 expressly extends compensation to heirs of Class III and IV employees who were working in Work Charge establishments. The service book established that the deceased was serving as a regular employee in a Work Charge establishment and had been granted regular revisions of pay under the Gujarat Civil Services (Revision of Pay) Rules, 2009.
  4. Treatment of initial daily wager appellation: The Court held that the initial status as a daily wager is "obliterated" where the State has granted benefits of G.R. 17.10.1988 and subsequently regularized the employee, placed him on regular pay scales and paid attendant benefits. Thus the benevolent exclusion of heirs of daily wagers in G.R. 05.07.2011 does not apply to persons who were subsequently regularized and made permanent.
  5. Reliance on precedent and settled principles: The Court relied on Division Bench decisions (State of Gujarat v. Mahendrakumar Bhagvandas & Anr., and Executive Engineer Panchayat (Maa & M) Department v. Samudabhai Jyotibhai Bhedi) that interpret G.R. 17.10.1988 as conferring substantive benefits of permanency; such benefits cannot be withdrawn or treated as illusory merely because of a later reclassification. The Court rejected the AGP's attempt to draw a distinction between regularized daily wagers and regularly appointed government servants for purposes of G.R. 05.07.2011, noting that the 05.07.2011 Resolution does not carve out such a distinction.
  6. Conclusion from analysis: Because the deceased had been regularized and treated as a regular employee in a Work Charge establishment, his heirs fall squarely within Clause 2's coverage for compensation under G.R. 05.07.2011. The Single Judge's direction to grant compensation was therefore correct.

Holding and Implications

The Letters Patent Appeal is dismissed.

Direct consequences and instructions:

  • The order dated 11.01.2017 passed in Special Civil Application No.16674 of 2016 by the learned Single Judge (directing payment of compensation to the heirs) shall be complied with within three weeks from the date of receipt of the present order.
  • Civil Application No.2 of 20147 does not survive in view of this order and is disposed of accordingly.

The opinion does not purport to lay down a new precedent; rather, it applies existing government resolutions and prior Division Bench decisions to the factual record and holds that persons who were regularized under G.R. 17.10.1988 and treated as regular employees in Work Charge establishments are not to be treated as daily wagers for the purpose of denying heirs compensation under G.R. 05.07.2011.

Show all summary ...

A.S. Supehia, J. - Rule. Mr.B.J.Trivedi, learned advocate waives service of Rule for the opponents.

2. The present appeal is directed against the judgment and order dated 11.01.2017 passed by the learned Single Judge directing the present appellants State - original respondents to grant compensation to the petitionerspresent respondent in lieu of compassionate appointment.

3. The core issue raised in the present appeal is whether the Government Resolution dated 05.07.2011 conferring the grant of compensation to the legal heirs of a government employee, after his death, can be refused for the reason that his initial appointment was as a Daily Wager.

4. Mr.Utkarsh Sharma, learned AGP for the appellants - State has invited the attention of this Court to the provisions contained in the Government Resolution dated 05.07.2011. He has stressed on Clause2 of the said resolution and submitted that as per the same, the compensation can only be granted to the heirs of ClassIII and IV government employees upon their death, and since the deceased - employee was serving as a Daily Wager, he cannot be termed as a government employee and hence, directions issued by the learned Single Judge are contrary to the provisions of the Resolution dated 05.07.2011. Thus, he has submitted that the learned Single Judge has misconstrued the resolution and the direction issued granting compensation to the heirs of the deceased employee i.e. present opponents is illegal and hence, the same require to be quashed and set aside.

5. Per contra, Mr.B.J.Trivedi, learned advocate for the respondents has submitted that the order passed by the learned Single Judge does not call for any interference of this Court since the status of the deceasedemployee was subsequently changed and he was made permanent and was also given regular payscale.

In this context, he has submitted that, after the deceased employee was granted the benefit of Resolution dated 17.10.1988, his status was changed into regular employee and hence, as per the provisions of the Government Resolution dated 05.07.2011 the heirs of the deceasedemployee i.e. present opponents are entitled for compensation.

6. The controversy involved in present Letters Patent Appeal rests on the interpretation of clauses of the Resolution dated 05.07.2011 which provides grant of compensation instead of compassionate appointment to the legal heirs of the deceased Class - III and ClassIV employees. Clause2 of the resolution signifies that the compensation mentioned in Clause1 shall be granted to those employees, who were appointed through a regular recruitment process, and thereafter, have completed 5 years of service, simultaneously, it also further provides that the heirs of those deceasedemployees, who were serving as ClassIII and ClassIV in a Work Charge establishment would also be entitled to such compensation. Lastly, Clause 2 also clarifies that the daily wagers, casual workers, apprentice, employees of adhoc, contract or reinstated or who are continued on such basis shall not be entitled to the benefits of the present scheme.

7. Indubitably, the heirs of daily wagers are barred from getting the benefits of present Resolution dt.5.7.2011. However, in present case, the undisputed fact remains that the deceasedemployee was initially appointed as Rojamdar Driver, thereafter, he was granted the benefit of Resolution dated 17.10.1988 and was also made permanent. We had called for the service book for ascertaining the true status of the deceasedemployee. We have examined the service book of the concerned employee. A perusal of the service book reveals that the employee was appointed as a Rojamdar Driver on 20.06.1987. The Initial notings made in the service book , indicates that, after completion of 5 years of service, the deceasedemployee was granted the benefit of Resolution dated 17.10.1988 and he was also appointed as Work Charge employee having pay of Rs. 950/ per month. The said benefit was granted to the deceasedemployee from 01.01.1995. On 13.01.1999, he was placed under Work Charge establishment. After considering his continuity of service from 20.06.1987 to 01.04.2006, the deceasedemployee was placed in a regular pay scale of Rs. 30504590/ by an order dated 13.12.2007, and accordingly increments were also fixed and paid. Thereafter, the deceasedemployee was also granted regular revisions of pay. The noting dated 05.09.2012 indicates that from 01.01.2006, his post has been mentioned as a "Driver" and his pay was fixed at Rs. 6510/ with effect from 01.07.2006, his gradepay was increased at Rs. 1900/ and his revised pay band as on 01.07.2006 was of Rs. 5200 - 20,200/. He expired while in service on 02.02.2013.

8. Thereafter, his heirs i.e. present respondents requested to pay compensation in lieu of compassionate appointment as per Resolution dated 05.07.2011. Thus, the notings made in the service book clearly establish the fact that the deceased employee was working as a regular employee in a Work Charge establishment. He was also granted the benefit of revision of pay under the Gujarat Civil Services (Revision of Pay) Rules, 2009 and his pay was accordingly fixed as a regular employee. As per Clause 2, the heirs of ClassIII and IV employees, who are working in the Work Charge establishment are entitled to the benefits of compensation, as envisaged in the said resolution. The contention raised by the learned AGP that the heirs of the deceased - employee are not entitled to the benefits of the said resolution, as directed by the learned Single Judge only on the ground that his initial appointment was a daily wager does not merit acceptance. Though, the Clause 2 refers that the initial appointment of government employee, who has been appointed through regular recruitment process and has completed 5 years of service in ClassIII and ClassIV shall be conferred with benefits as per the said resolution, however, the very clause also speaks of extending the benefit to the heirs of those employees i.e. ClassIII and ClassIV, who were working in the Work Charge establishment. Undisputedly, the deceasedemployee was serving under Work Charge establishment as a ClassIV employee.

Thus, the initial status of the deceased employee as a daily wager gets obliterated, and he has to be treated as a regular and permanent employee. Hence, the respondentheirs cannot be barred from receiving the benefit of compensation as per the Resolution dt.5.07.2011.

9. As observed in the preceding paragraph the service book of the deceased employee, indicates that, after completion of 5 years of service, he was granted the benefit of Resolution dated 17.10.1988 and was appointed as Work Charge employee having pay of Rs. 950/ per month. The said benefit was granted to the deceasedemployee from 01.01.1995. At this juncture, it would be opposite to incorporate the observations made by Division Bench of this Court in the case of State of Gujarat & Anr. Versus Mahendrakumar Bhagvandas & Anr., (2011) 2 GLR 1290. The Division Bench of this Court, after considering the Resolution dated 17.10.1988 and 18.07.1994 on the issue of granting permanent status of Daily Wager, has observed thus:

"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. 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"

10. The Division Bench of this Court in the case of Executive Engineer Panchayat (Maa & M) Department vs Samudabhai Jyotibhai Bhedi, (2017) 4 GLR 2952, has observed thus:

"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."

11. Learned AGP has not disputed the fact that the deceasedemployee was granted the benefit of 17.10.1988 and was also made regular and permanent on that basis, however, he has tried to distinguish the aforesaid position of law which is settled by various decisions of this Court. He has submitted that regularization or permanency given to the Daily Wager stands on a different footing in comparison of the regular appointed government servants and only legal heirs of such government servants would be entitled to the benefits of compensation, as envisaged by Resolution dated 05.07.2011.

12. In the opinion of this Court, no such distinguishing feature has been incorporated in the Resolution dated 05.07.2011. The same only refers to the employees of ClassIII and IV working under the State Government. Clause 2 specifically confers benefit of compensation to the heirs of deceasedworkman of ClassIII and IV, who were working on the Work Charge establishment. Though, such benefit has been specifically denied to heirs of the Daily Wagers, casual workers, apprentice, adhoc and employees working on contractual basis, the same cannot be applied to the daily wagers or employees, who have been subsequently regularized and are made permanent and have also been conferred the benefits of regular revision of pay under the statutory pay rules. Thus, such employees, who are working on Work Charge establishment, cannot be compared with the Daily wager or casual etc. Once the State Government grants the benefits of Resolution dated 17.10.1988 and as per the settled proposition of law, such Daily Wagers, after completion of certain number of years, are made permanent and regular and their pay, retirement benefits, etc are also paid as a regular employee, their status of being "permanent and regular" employees cannot be reverted to a "daily wager" after they expire resulting in the denial of the benefit of compensation to their legal heirs. In the considered opinion of this Court, once they have acquired status of regular employees working in Work Charge establishment, their heirs cannot be barred from the ambit of Resolution dated 05.07.2011 envisaging compensation, as provided therein.

13. With the aforenoted reasons and observations, the Letters Patent Appeal fails. Accordingly, the same is hereby dismissed. The order dated 11.01.2017 passed in Special Civil Application No.16674 of 2016 by the learned Single Judge shall be complied within a period of three weeks from the date of receipt of the present order.

14. In view of the order passed in Letters Patent Appeal, Civil Application No.2 of 20147 also does not survive and the same is hereby disposed of, accordingly.