Citation : 2022 Latest Caselaw 8052 Guj
Judgement Date : 16 September, 2022
C/SCA/5525/2020 JUDGMENT DATED: 16/09/2022
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 5525 of 2020
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE BIREN VAISHNAV
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1 Whether Reporters of Local Papers may be allowed
to see the judgment ?
2 To be referred to the Reporter or not ?
3 Whether their Lordships wish to see the fair copy
of the judgment ?
4 Whether this case involves a substantial question
of law as to the interpretation of the Constitution
of India or any order made thereunder ?
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VARSANGBHAI KAMABHAI DABHI
Versus
STATE OF GUJARAT
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Appearance:
MS ARCHITA M PRAJAPATI(8241) for the Petitioner(s) No. 1
MR MP PRAJAPATI(677) for the Petitioner(s) No. 1
MR UTKARSH SHARMA, AGP for the Respondent(s) No. 1
NOTICE SERVED for the Respondent(s) No. 1,2
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CORAM:HONOURABLE MR. JUSTICE BIREN VAISHNAV
Date : 16/09/2022
ORAL JUDGMENT
1. Rule returnable forthwith. Mr. Utkarsh Sharma, learned
Assistant Government Pleader waives service of notice of
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Rule for the respondents.
2. With the consent of the learned advocates for the
respective parties, the petition is taken up for final hearing
today.
3. Ms. Prajapati, learned counsel for the petitioner would rely
on an order passed in similar matter by this Court namely;
Special Civil Application No.16104 of 2020 dated
12.09.2022. She further requested this Court to pass a
similar order in this matter too. The order dated
12.09.2022 reads as under:
"1 Rule returnable forthwith. Mr.Kurven Desai, learned Assistant Government Pleader, waives service of notice of rule on behalf of the respondent - State.
2 In this petition under Article 226 of the Constitution of India, the prayers of the petitioner read as under:
"9(A) That this Hon'ble Court may be pleased to admit this Petition.
(B) That this Hon'ble Court may be pleased to issue a writ of mandamus or any other
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appropriate writ, order or direction, directing to hold and declare that the action on the part of the respondents in not making full payment of pensionary benefits i.e. Gratuity and Pension to the Petitioners by counting their entire length of service from date of their initial appointment till the date of retirement as illegal, arbitrary, unjust and discriminatory in nature and further be pleased to direct the respondents to fix the Pension and Gratuity of the Petitioners by considering their service from the date of their initial date of joining till the date of retirement.
(C) That this Hon'ble Court may also be pleased to hold and declare that the Petitioners are entitled for leave encashment of 300 days at par with other employee of the Respondents and accordingly be pleased to direct the Respondents to pay the amount towards leave encashment to the Petitioners considering the initial date of appointment (i.e. date of joining) of the Petitioners as mentioned in the Pension Payment Orders;
(C) That this Hon'ble Court may be pleased to issue a writ of mandamus or any other appropriate writ, order or direction, directing the Respondents to consider the initial qualifying period of service rendered as Daily wager Employee for the purpose of grant of Pension and Gratuity and direct them to re-fix the amount of pension and Gratuity and further be pleased to direct the Respondent Authorities to pay the arrears of Pension and Gratuity by considering entire length of services of the petitioners from the initial date of appointment (i.e. Date of Joining) of the Petitioners as mentioned in the Pension Payment Order;
(D) That this Hon'ble Court may be pleased to
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direct the Respondent Authorities to extend the arrears of the benefit of 7th Pay Commission to the Petitioners as extended to other similarly situated employees.
(E) Pending hearing and final disposal of the present petition, Your Lordships may be pleased to direct the Respondent Authorities to forthwith consider the case of the Petitioners for payment of 300 days leave encashment and for the payment of arrears of Pension and Gratuity for initial years of service period considering the total length of service rendered by the Petitioners, and further be pleased to direct the Respondent Authorities to extend the arrears of benefit of 7th Pay Commission and pay the same in light of the law laid down by this Hon'ble Court and confirmed by the Hon'ble Apex Court"
3 Ms.Prajapati, learned counsel for the petitioners, would rely on a decision of this Court rendered in Special Civil Application No. 14137 of 2019 which read as under:
" In the facts and circumstances of the case and having regard to the request and consent of the parties appearing through their respective learned advocates, the petition was taken up for final consideration today.
1.1 Rule returnable forthwith. Learned Assistant Government Pleader Dr. Venugopal Patel waives service of Rule for the respondent State and its authorities.
1.2 Heard learned advocate Ms. Nidhi Trivedi for learned advocate Mr.
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Dipak Dave for the petitioners and learned Assistant Government Pleader for the respondents. 2. By filing the present petition, the petitioners have prayed as under:
"(i) to hold and declare that action
on part of the respondents in not
making full payment of pensionary
benefits to the petitioners by counting their entire length of servicefrom date of joining till date of retirement as illegal, unjustified, arbitrary and further be pleased to direct the respondents to fix the pension of the petitioners by counting their service from date of joining until the date of retirement and fix the pension accordingly;
(ii) to hold and declare that petitioners are entitled to all other retiral benefits including benefit of leave encashment and be pleased to further direct the respondents to pay amount of leave encashment of leave standing in the account of the petitioners;
(iii) to direct the respondents to pay difference of pensionary benefits, gratuity amount and leave encashment with 18% interest from the date when it fell due;"
3. The two petitioners herein served under the office of Executive Engineer (Road and Building), respondent herein for long 20 years and 36 years, respectively. Petitioner No.1 joined the office of respondent No.2 with effect from 23.9.1989 whereas, petitioner No.2 started his service from 21.3.1982. Petitioner No.1 retired on 31.5.2018. Petitioner No.2
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retired on 30.4.2018. They put in long number of years as above. They served continuously as contemplated under Section 25B of the Industrial Disputes Act, 1947. When the petitioners completed 10 years of their service, benefits under resolution dated 17.10.1988 were extended to them.
3.1 The grievance in the present petition is that while counting the pensionary benefits, the respondents have not taken into account their services fully and the total pensionary services were reckoned deducting initial 10 years of services. The pension was calculated from the date when the two employees completed 10 years and were made permanent under Resolution dated 17.10.1988. The grievance is that the entire service starting from initial date of appointment was required to be counted for the purpose of pension and accordingly the pension ought to have been determined.
3.2 It was observed in order dated
17.7.2019 that the issue involved in
the present petition is answered by
the Division Bench of this Court
in Executive Engineer, Panchayat v.
Samudabhai Jyotibhai Bhedi [2017 (4)
GLR 2952] followed in Sardarbhai
Panabhai Chauhan v. State of
Gujarat being Special Civil Application
No.14504 of 2016 decided on 5.9.2018.
4. Learned advocate for the petitioners submitted that the respondent authorities committed an error of law in not reckoning the services of the petitioners from the date of their initial entry in service for the
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purpose of pension. In addition to the decision in Samudabhai Jyotibhai Bhedi (supra) and Sardarbhai Panabhai Chauhan (supra), learned advocate for the petitioner could successfully press into service yet another decision of this court in Balvantbhai Sardarbhai Pagi & Ors. vs Deputy Engineer & Ors. being Special Civil Application No. 12350 of 2016 and allied petitions decided on 22.5.2016 taking a similar view. The ratio in Samudabhai Jyotibhai Bhedi (supra) was relied on in all the aforementioned decisions.
5. It was held in Samudabhai Jyotibhai Bhedi (supra) by the Division Bench, upholding the decision of the learned single Judge that the past services of the daily wagers where they have completed 240 dayscontinuous service as per section 25F of the Industrial Disputes Act, would qualify for pension. In the present case, the respondents have not been able to dispute that both the petitioners have put in continuous service as contemplated under the law.
5.1 The Division Bench in Samudabhai Jyotibhai Phedi (supra) noticed the provisions of the Resolution dated 17.10.1988 with reference to the nature of benefits flowing therefrom, in paragraph 6 of the judgment stating as under:
"6. 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
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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."
5.1.1 It was stated that the Government verified and cleared the ambiguity in the Resolution, observing as under:
"7. This Government Resolution led to several doubts. The Government itself therefore came up with a clarificatory circular dated 30.05.1989, in which, several queries which were likely to arise were clarified and answered.
Clause6 of this circular is crucial for our purpose. The question raised was that an employee who had put in more than 10 years of service as on 01.10.1988, would be granted the benefit of Government Resolution dated 17.10.1988. In that context, the doubt was whether for the purpose of pension, the past service of completed years prior to regularization would be considered or whether the pensionable service would be confined to the service put in by the employee after he is actually regularized. The answer to
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this query was that those employees who had put in more than 10 years of service as per Government Resolution dated 17.10.1988 would get the benefit of pension. For such purpose, those years during which the employee had fulfilled the provisions of section 25B of Industrial Disputes Act, such years would qualify for pensionary benefit."
5.1.2 The Court thereafter held:
"Two things immediately emerge from this clarification. First is that the query raised was precisely what is the dispute before us and second is that the clarification of the Government was unambiguous and provided that every year during which the employee even prior to his regularization had put in continuous service by fulfilling the requirement of having worked for not less than 240 days as provided under section 25B of the Industrial Disputes Act, would count towards qualifying service for pension. In view of the clarification by the government itself, there is no scope for any further debate. The petitioner was correct in contending that having put in more than 10 years of continuous service as a labourer in the past, he had a right to receive pension upon superannuation. This is precisely what the learned Single Judge has directed, further enabling the employer to verify as to in how many years he had put in such service and then to compute his pension."
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5.2 Thus, it is a clear position of law emerging from decision in Samudabhai Jyotibhai Phedi (supra) that entire past services of dailywager which was continuous is liable to be reckoned for the purpose of pensionary benefits and for the purpose of granting pension. In the facts of the case of the petitioners, the factum is not controverted and it is undisputed that petitioner Nos.1 and 2 have throughout worked since their joining, to make their services continuous.
6. In view of the above, action on
part of the respondents in not
recognising the services of the petitioners
herein from the date of their initial
joining as daily rated workman cannot stand valid in eye of law. The respondents were not justified in counting the services for the purpose of pension from the date when the petitioners were made permanent at the completion of 10 years. The entire prior service ought to have been recognised and the pension should have been calculated and fixed accordingly.
7. Petitioner No.1 would be accordingly entitled to receive the pension by counting the pensionable service from the date of initial entry, that is 23.9.1989. Similarly, petitioner No.2 would be entitled to family pension by counting the pensionable service from the date of initial entry, that is 21.3.1982. The respondents are directed to fix the pension for the petitioners accordingly. The petitioners are also entitled to other benefits such as leave encashment, gratuity etc. as may be payable.
7.1 The total amount of pension and other
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benefits as above, becoming payable and the arrears thereof, shall be paid to the petitioners within a period of six weeks from the date of receipt of this order.
8. It is provided and directed that if the amount is not paid within stipulated period of six weeks, it shall carry interest at the rate of 6.5% from the date of filing of this petition. The respondents are further directed to continue to pay the pension to the petitioners duly calculated as above.
9. The petition stands allowed as above."
3 In light of the above decision relied upon by the learned counsel, the petition is allowed. The respondents are directed to re-fix the pension and gratuity of the petitioner by counting the pensionable service from their date of initial entry in service accordingly. Petitioners are accordingly entitled to receive the pension, gratuity and other terminal benefits. The total amount of pension and gratuity as above, becoming payable and the arrears thereof, shall be paid to the petitioners. The respondents are also directed to extend the benefits of payment of leave encashment of 300 days to the petitioners on their retirement, as the denial of this benefit is held to be illegal. It is directed to the respondents that payment towards leave encashment for 300 days, benefits of arrears of 7 th Pay Commission and all consequential benefits, shall be paid to the petitioners considering the total length of the services of the petitioners. The entire exercise shall be completed within a period of ten weeks from the date of receipt of writ of this order. Rule is made absolute to the aforesaid extent."
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4. The petition is disposed of in light of the order dated
12.09.2022 which shall govern the present petitioner also.
It is directed to the respondents that payment towards
leave encashment for 300 days, benefits of arrears of 7 th
Pay Commission and all consequential benefits, shall be
paid to the petitioner considering the total length of the
services of the petitioner. The entire exercise shall be
completed within a period of ten weeks from the date of
receipt of writ of this order.
5. Rule is made absolute accordingly. Direct service is
permitted. No order as to costs.
(BIREN VAISHNAV, J) VATSAL S. KOTECHA
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