http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 4  

PETITIONER: UNION OF INDIA & ORS.

       Vs.

RESPONDENT: DHARMA PAL & ORS. ETC.

DATE OF JUDGMENT:       29/03/1996

BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. G.B. PATTANAIK (J)

CITATION:  1996 SCC  (4) 195        JT 1996 (4)   371  1996 SCALE  (3)672

ACT:

HEADNOTE:

JUDGMENT:                             WITH            CIVIL APPEAL NO. 7065, 7063-64 OF 1996    (Arising out of SLP (C) No. 2967/94, 27737 & 27844/95)                          O R D E R      Leave granted.      We have heard learned counsel on both sides.      Pursuant 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:      For work charged employees:      "i)  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 be.      ii) Workers  engaged on jobs, which      are  likely   to  be   of  a  short

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 4  

    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.      iii)  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.      iv)  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.      For 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.      vi) 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.      vii) In  respect of  all such daily

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 4  

    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.      viii)  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. Shri 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 Act, 1947.      In 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.      In view  of the  scheme now  framed, the appellants are directed to  regularize all  those who  have  completed  the

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 4  

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. Even 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. As and  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 to-day.      The appeals are accordingly disposed of. No costs .