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Panchmahal District Panchayat ... vs Balvantbhai Kalubhai Pagi
2023 Latest Caselaw 2495 Guj

Citation : 2023 Latest Caselaw 2495 Guj
Judgement Date : 24 March, 2023

Gujarat High Court
Panchmahal District Panchayat ... vs Balvantbhai Kalubhai Pagi on 24 March, 2023
Bench: Hasmukh D. Suthar
     C/LPA/1736/2022                              ORDER DATED: 24/03/2023




     IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
       R/LETTERS PATENT APPEAL NO. 1736 of 2022
                            In
      R/SPECIAL CIVIL APPLICATION NO. 2676 of 2021
                           With
 CIVIL APPLICATION (FOR INTERIM RELIEF) NO. 2 of 2022
                            In
        R/LETTERS PATENT APPEAL NO. 1736 of 2022
=======================================================
              PANCHMAHAL DISTRICT PANCHAYAT
             THROUGH ITS EXECUTIVE ENGINEER
                          Versus
                BALVANTBHAI KALUBHAI PAGI
=======================================================
Appearance:
MR HS MUNSHAW(495) for the Appellant(s) No. 1,2
MR KURVEN DESAI AGP for the Respondent(s) No. 2
MR DIPAK R DAVE(1232) for the Respondent(s) No. 1
=======================================================

 CORAM:HONOURABLE MR. JUSTICE VIPUL M. PANCHOLI
       and
       HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR

                          Date : 24/03/2023
                               ORAL ORDER

(PER : HONOURABLE MR. JUSTICE VIPUL M. PANCHOLI)

1. This appeal is filed under Clause 15 of the Letters Patent against the order dated 29.04.2022 passed by learned Single Judge in Special Civil Application No.2676/2021.

2. Heard learned advocate, Mr. H.S. Munshaw for the appellants, learned advocate, Mr. Dipak Dave for the respondent no.1 and learned AGP Mr. Kurven Desai for the respondent no.2.

3. Learned advocate, Mr. Munshaw submitted that the present appellants are the original petitioners,

C/LPA/1736/2022 ORDER DATED: 24/03/2023

who have challenged the order dated 24.01.2020 passed by the Labour Court in Recovery Application No.C-2. 102/2008, whereby the Labour Court directed the appellants - original petitioners to release the benefit of pension in favour of the respondent - workman.

4. It is submitted that the respondent - workman was offered work as daily wager in November, 1976 without following procedure of recruitment and he was offered work based on availability of the work and funds. It is submitted that the benefit of GR dated 17.10.1988 was extended to the respondent - workman on completion of 5 years on 01.11.2022 and, thereafter on completion of 10 years of service as daily wager on 01.04.2007, however, the respondent - workmen is not entitled to get the pensionary benefit. Learned advocate has mainly placed reliance upon the GR dated 24.03.2006 issued by the State Government, wherein it has been specifically stated that if the daily wager has completed ten years of continuous service, he is entitled to get pensionary benefit. In the present case, the respondent - workman is not entitled to get pensionary benefit as prayed for by him before the Labour Court in the recovery application, inspite of that, the Labour Court has granted such benefit to the respondent - workman. Learned advocate further submitted that learned Single Judge has also committed an error while placing reliance upon the decision rendered in

C/LPA/1736/2022 ORDER DATED: 24/03/2023

case of Tribhovan Jerambhai Vs. Deputy Executive Engineer, reported in 1998 (2) GLH 1. Learned advocate, therefore, urged that this appeal be allowed and the impugned order passed by the learned Single Judge be quashed and set aside.

5. On the other hand, learned advocate, Mr. Dipak Dave has opposed this appeal and mainly submitted that in identical matters filed by similarly situated workmen being Special Civil Application No.12350/2016 and allied matters, learned Single Judge of this Court passed an order on 22.12.2016 and the petitions filed by the concerned workman were partly allowed and thereby direction was given by the learned Single Judge to grant pensionary benefits to the concerned workman. It is submitted that the State Government challenged the said order by filing Letters Patent Appeal No.38/2016 and allied matters, however, the Division Bench of this Court vide order dated 10.01.2018 dismissed the said appeal filed by the State of Gujarat. It is also contended that against the said order, the State of Gujarat preferred SLP before the Hon'ble Supreme Court being Special Leave Petition (Civil) Diary No.45860/2018 and the Hon'ble Supreme Court dismissed the said SLP vide order dated 04.01.2019. Learned advocate, Mr. Dave has produced on record copies of aforesaid orders. Learned advocate, therefore, urged that the issue involved in the present appeal is squarely covered

C/LPA/1736/2022 ORDER DATED: 24/03/2023

by the aforesaid decisions as ell as the decision rendered by this Court in case of Tribhovan Jerambhai (supra). Learned advocate, therefore, urged that no error is committed by learned Single Judge while dismissing the petition filed by the petitioners and, therefore, this appeal be dismissed.

6. Having heard learned advocates for the parties and having gone through the material placed on record, it would emerge that the respondent - workman was offered work as daily wager in November, 1976 and the benefit of GR dated 17.10.1988 was also given to the workman on completion of 5 years as well as 10 years of service. The Recovery Application filed by the respondent - workman was allowed by the Labour Court and the direction was given to grant pensionary benefits to the respondent - workman. At this stage, it is relevant to note that in similar type of cases, this Court passed an order on 22.12.2016 in Special Civil Application No.12350/2016 and learned Single Judge of this Court has observed in Paragraph Nos.9, 10 and 13 as under,

9. The interpretation of the G.R.dated 17.10.1988 so far made by this Court briefly stated is that, once the eligible daily wager is found to have rendered specified service within the meaning of Section 25B of the Act, entire such service from the date of his entry until retirement has to be reckoned for pensionary and other related benefits. If the reference is required on this count, this Court may refer to the case of

C/LPA/1736/2022 ORDER DATED: 24/03/2023

Tribhovanbhai Jerambhai v. Deputy Executive Engineer [1998(2) GLH 1]. The Court had extensively discussed the issue similar to the one raised in these petitions thus:

"1. The petition relates to travails of a person who has been in the employment of the State Government for almost 28 years and still awaiting for his retiral benefits in terms of the Government's order, revealing a pathetic insensitivity towards the fellow employees who has superannuated and look for a peaceful and quiet life at the twilight of his life banking upon the retiral benefits assured under the relevant rules and orders of the State authorities themselves.

2. The facts which are not in dispute are that the petitioner had been in service of the State Government mostly as a daily rated workman since 1966 until he was treated permanent in terms of Government Resolution dated 17.10.1988 and retired on completing sixty years on 31.1.1994. After laying the claim before the Assistant Labour Commissioner and Provident Fund Commissioner his retiral benefits in the form of gratuity and provident fund contributions were determined and paid by treating the period of service rendered by the petitioner from 1966 to 1994. However, the pension, the regular source of income to maintain a retired employee had not so far not been granted. In fact, an attempt has been made to show that the petitioner is not entitled to pensionary benefit because he has not completed qualifying service as per the award read in the light of Bombay Civil Services Rules governing the grant of pension.

3. Though initially the learned counsel

C/LPA/1736/2022 ORDER DATED: 24/03/2023

for the respondent tentatively sought to urge that as on the date of retirement on 31.1.1994 the petitioner has not completed 10 years of service as daily rated employee and he cannot be treated as permanent in terms of resolution dated 17.10.1966. But when it was pointed out that in reply the respondents have admitted that the petitioner was a daily wager for the period of 1966 to 1987. It is further revealed from the reply that though department initially treated the petitioner in employment as daily rated workman on work charge establishment with effect from 16.4.1987 only, and paid gratuity for that period only, ultimately on a dispute having been raised in that regard the petitioner was held to be in service with effect from 1966 and gratuity was paid for the entire period from 1966 to 1994, the learned counsel candidly stated that the fact that petitioner was in service of respondents since 1966 cannot be disputed. This further makes it clear that as on date resolutions dated 17.10.1988 was made by the Government the petitioner had been in employment of State for more than ten years as daily rated employee, entitled to be treated as permanent.

4. The short question which concerns the issue before me is whether the petitioner is entitled to pension or not. Primarily, the question of pension in pensionable service has been determined under Section III of the Bombay Civil Services Rules, 1959 commencing from Rule 230 onwards. It has been contended by the learned counsel for the respondents that the petitioner being on daily wages, was not holding a pensionable service under Section 230 nor he falls in the

C/LPA/1736/2022 ORDER DATED: 24/03/2023

exception to the Rule provided thereunder, therefore, the services rendered on daily wages basis prior to his becoming permanent cannot be considered as qualifying service for the purpose of pension.

5. It was urged also that the service has been declared as pensionable by the resolution dated 17.10.1988 by the Government, which deems a daily rated workman on completion of ten years service as on 1.10.1988 or thereafter as deemed to be in permanent service and has been made entitled to pension. However, for the purpose of entitlement of pension under resolution the service on regular basis only has to be counted for determining qualifying service and entitled to pension. As the petitioner has not been on permanent basis after he can be deemed to have become permanent as on 1.10.1988, for the qualifying period of ten years he is not entitled to pension.

6. This plea, in my opinion, cannot be sustained being contrary to record and Government's own decision.

7. Rule 230 of Bombay Civil Services Rules says that unless in any case it is otherwise provided by or under the Rules a Government Servant is considered in pensionable service if he holds substantively a permanent post in Government service. The argument is that though the petitioner may be treated as permanent under Resolution dated 17.10.1988, he cannot be deemed to holding a permanent post. Without going into this contention it may be noticed that rule itself envisages that a person may be otherwise eligible to pension if so provided by or under the Rules. In this connection, attention

C/LPA/1736/2022 ORDER DATED: 24/03/2023

has been drawn to Rule 248 of the Rules.

8. Rule 248 of the Bombay Civil Services Rules provide that Government may by general or special order permit service other than pensionable service for performing which a government servant is paid from State revenues or from a local fund to be treated as a duty counting for pension. In issuing such order the Government is to specify the method at which the amount of duty shall be calculated and may impose any condition which it thinks fit. Thus Government has necessary power to provide for pension even in cases where service other than pensionable service may become eligible for grant of pension.

9. In the resolution dated 17.10.1988, it has been envisaged that those workman who as on 1.10.1988 or thereafter completes ten years of continuous service to be counted in accordance with provisions of Section 25B of the Industrial Disputes Act shall be deemed to be permanent and amongst other benefits conferred on being treated as permanent their age of superannuation was fixed at 60 years and they were made entitled for pensionary benefit. By yet another resolution dated 30.5.1989 (Annexure E), in which a specific query was raised at item No (6) with reference to resolution dated 17.10.1988, about the calculation of period of qualifying service for the purpose of entitlement to pension in connection with the pensionary benefits made available to those daily wagers who are deemed to be permanent on completion of ten years of service and it was specifically made clear that within the meaning of

C/LPA/1736/2022 ORDER DATED: 24/03/2023

resolution dated 17.10.1988, the service which is to be counted is that which can be said as continuous within the meaning of Section 25B with effect from the date of entry in the service is duty counted for the purpose of pension and pension has to be accordingly determined. This does not say that qualifying service is to be counted with effect from date of becoming permanent. This leaves no room of doubt that the resolution dated 17.10.1988 along with clarification issued on the various aspects of it vide resolution dated 30.5.1989 is in consonance with the provisions of Rule 248 of the Bombay Civil Services Rules, 1959 which provide that Government has not only power by general or special order to permit service other than pensionable service, for performing which a Government servant is paid from State revenues or from a local fund, to be treated as duty counting for pension and in issuing such an order Government is to specify the method by which the amount of duty shall be calculated for the purpose of pension. Once the Government has made it clear that those who have completed ten years of service as daily rated workman are to be deemed permanent with effect from and after 17.10.1988 and are entitled to various benefits on that basis including pension and thereafter has provided by the resolution dated 30.5.1989 that the continuous service for the purposes of pension, made available to employees under resolution dated 17.10.1988, is to be counted with effect from the date of entry in the service provided it can be continuous within the meaning of Section 25B of the Industrial Act, thus

C/LPA/1736/2022 ORDER DATED: 24/03/2023

making it clear that once a daily rated workman is treated to be permanent under the resolution dated 17.10.1988 his entire continuous service from the date of entry until he retires including his services rendered prior to the date of his regularisation is taken into consideration for the purpose of computing pension or making pension available to such retired employee.

10. There is yet another aspect of the matter. Assuming that Bombay Civil Services Rules do not provide for grant of pension to those, who are not holding a permanent post in the service, then it must be held that daily rated workman working on daily wages, are ex cadre employees and not governed by particular service rules, but are governed by terms of employment under which they have been engaged. This further leads to conclusion that area of employment on daily wages is not covered by statutory rules either promulgated under Act 309 or by other legislature enactment. That is the area left uncovered by specific law, and such employment is in exercise of general executive powers of the State and terms and conditions of such employment is governed by terms of order under which such employment is made and shall be further governed by orders made by State in exercise of its executive power from time to time. The resolution dated 17.10.88 and 30.5.89 shall thus govern the terms of employment of such employees. If considered from this view, the conclusion will be the same.

11. In view of the aforesaid, I have no hesitation in coming to the conclusion that resolution dated 17.10.1988 read

C/LPA/1736/2022 ORDER DATED: 24/03/2023

with resolution dated 30.5.1989 read with Rule 248, of the Bombay Civil Services Rules, the petitioner is entitled to pensionary benefits by counting the entire period of service from 1966 to 1994 until the date of his retirement which is to be counted continuous under Section 25B of the Industrial Disputes Act as qualifying service and determining the pension payable to the petitioner who has retired on 31.1.1994, on that basis.

12. Accordingly, this petition is allowed. The respondents are directed to compute the pension payable to the petitioner on the aforesaid basis within the period of months from today and release the arrears of pension payable to the petitioner on such determination within a further period of one month and start making regular payment of pension with effect from the date of such determination. The petitioner be paid the costs of this petition which is quantified at Rs.3000/. Rule made absolute accordingly."

The ratio laid down in the said case which has subsequently been followed by this Court in several cases, relied upon by the learned counsel for the petitioners ought to have concluded the issue as regards entitlement to the pension and other related benefits or clubbing of two periods of service indicated above; and in all fairness, the respondent No.2 ought to have conceded to the fact that the benefits under G.R. dated 17.10.1988 were already conferred upon the eligible daily wagers, and that, in view of the ratio laid down by this Court in the above case, the petitioners are entitled to more benefits including pension and related terminal benefits. The entitlement of the workman under the circumstances could not

C/LPA/1736/2022 ORDER DATED: 24/03/2023

have been genuinely disputed inasmuch as, at the cost of repetition, it must be observed that the grant of benefit under G.R. dated 17.10.1988 implies an admission on the part of the respondents that they were so entitled and the relevant criteria including completion of the service as provided in Section 25B of the Act was satisfied inasmuch as, in absence of such satisfaction, the benefits under G.R.dated 17.10.1988 could not have been conferred upon the workmen. The matter is, therefore, squarely covered by the decision of this Court in Tribhovanbhai (supra) and could not have been reagitated.

10. The Hon'ble Supreme Court in State of Maharashtra v. Digambar (supra) had recognised the right of the State or the public body to agitate and reagitate certain issues. It would thus appear that while there cannot be an absolute ban on the State or the other public authority raising the issue of certain categories over and over again for the reason similar to those indicated by the Hon'ble Supreme Court, the judgment cannot be cited as laying down the proposition of law that the ratio laid down by the High Court or the Supreme Court after considering the arguments advanced before it can be agitated and reagitated without any justification. When the constitutional court interprets the policy or the statute and lays down the ratio, undisputedly it has a binding effect. Once the pronouncement is accepted without further challenge, the State or the public bodies cannot be permitted to reiterate the argument which was rejected in decided cases, without any justification. The decision in State of Maharashtra v. Digambar (supra) cannot be interpreted as dispensing with the principle of stare decisis. To say that even in the matters which are covered by the decision of the

C/LPA/1736/2022 ORDER DATED: 24/03/2023

constitutional court can be challenged by the State or the other public body over and over again without any conceivable justification would be against the litigation policy of the State itself which promises to curb the avoidable cases going to the courts.

      11.      xxx     xxx   xxx.
      12.      xxx     xxx   xxx.

13. Reliance placed on G.R. dated 24.3.2006 in support of the above contention is also misconceived since the said issue has been set at rest in Nirubha Vajubhai Sarvaiya v. State of Gujarat and three others [2016 Lawsuit (Guj) 155]. The said case has been followed by this Court in Ranabhai Ajmalbhai Harijan, since deceased through legal heirs - petitioners v. Secretary, Road and Building, Sachivalaya, Gandhinagar and two others [Special Civil Application No. 18036 of 2013 decided on 19.10.2016. It is, however, stated by the learned AGP that the decision in Nirubha (supra) is pending consideration in Letters Patent Appeal. In the opinion of this Court, mere pendency of the appeal would not be sufficient to deter this Court from following the said case."

7. The aforesaid order passed by the learned Single Judge was challenged by the State of Gujarat by filing Letters Patent Appeal No.36/2018, wherein the Division Bench of this Court has observed in Paragraph Nos.4 and 4.1 as under, "4.00. Having heard the learned advocates appearing on behalf of the respective parties, it is not in dispute that as such the dispute in the present Letters Patent Appeals, namely, whether the services rendered by the daily wager is required to be counted / considered for the purpose of

C/LPA/1736/2022 ORDER DATED: 24/03/2023

pensionable service or not, is now not res- integra in view of decision of the Division Bench of this Court in the case of Executive Engineer Panchayat (MAA & M) Department and another Versus Samudabhai Jyotibhai Bhedi and others, reported in 2017(4) GLR 2952 as well as recent decision of the Division Bench of this Court dated 16/11/2017 rendered in Letters Patent Appeal No. 1215 of 2017, by which it is specifically observed and held that all those years in which the concerned workman has worked for more than 240 days as a daily wager is required to be considered while counting / considering the pensionable services of the daily wager. Under the circumstances, as such the issue involved in the present Letters Patent Appeals is now not res-integra in view of the aforesaid two decisions of the Division Bench of this Court.

4.01.In view of the above, more particularly aforesaid two decisions of the Division Bench of this Court, it cannot be said that the learned Single Judge has committed any error in directing to count/consider the services rendered by the concerned workmen as daily wager for the purpose of counting / considering pensionable service. However, it is observed and even as agreed by Mr.Dave, learned advocate appearing on behalf of the original petitioners that only those years in which the concerned workmen / employees - original petitioners have worked for more than 240 days as a daily wager are required to be considered / counted for the purpose of counting / considering pensionable service."

8. Against the aforesaid order dated 10.01.2018, the State of Gujarat preferred SLP before the Hon'ble Supreme Court as stated above, which came to be dismissed by the Hon'ble Supreme Court by an order

C/LPA/1736/2022 ORDER DATED: 24/03/2023

dated 04.01.2019.

9. Learned Single Judge, in the present case, has placed reliance upon the decision rendered by this Court in case of Tribhovan Jerambhai (supra) and, thereafter, dismissed the petition filed by the present appellants - original petitioners. We are of the view that the issue involved in the present matter is squarely covered by the said decision rendered by this Court in Special Civil Application No.12350/2016, which has been confirmed by the Division Bench in Letters Patent Appeal No.36/2018 as also by the Hon'ble Supreme Court in Special Leave Petition (Civil) Diary No.45860/2018 and, therefore, the learned Single Judge has not committed any error while dismissing the petition filed by the present appellants - original petitioners. Hence, no interference is required in the present appeal.

10. Accordingly, the present appeal is dismissed, Notice is discharge. Connected civil application also stands disposed of.

Sd/-

(VIPUL M. PANCHOLI, J.)

Sd/-

(HASMUKH D. SUTHAR, J.) Gautam

 
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