Bombay High Court
CHIEF EXECUTIVE OFFICERversusSATISH GYANOBA GAIKWAD
- Disposal
- DISPOSED OFF
Holding
The Industrial Court was correct in granting regularisation to the employee, and the writ petition challenging that order must be dismissed.
Summary
The petition was filed by the Chief Executive Officer challenging an order of the Industrial Court (Latur Bench) that had granted regularisation to a watchman employed on daily wages since 1990, finding that he had completed 240 days of service in a year. The petitioner argued that the employee was appointed under the Integrated Child Development Project Scheme by the CDPO, not by the CEO, and that the post was not a sanctioned position under Zilla Parishad Service Rules. The respondent‑employee relied on the appointment order dated 07‑08‑1991 and on precedents that long‑term temporary workers are entitled to regularisation and that procedural formalities cannot defeat substantive rights. The Court examined several Supreme Court judgments on unfair labour practice, regularisation, and the constitutional duties of the State, concluding that the employee’s continuous service and the continuation of the scheme preclude any claim that the appointment was illegal or that the project had ended. Applying the law, the Court held that the Industrial Court’s decision was correct and that there was no ground to interfere. Consequently, the writ petition was dismissed.
Issues considered
- Whether the watchman's appointment under the ICDPS scheme, without a sanctioned post, amounts to an illegal appointment.
- Whether the employee is entitled to regularisation and permanency under the Industrial Disputes Act, 1947 after completing 240 days of service in a year.
- Whether the employer can rely on the absence of a sanctioned post or procedural irregularities to deny regularisation.
- Whether the Supreme Court precedents on unfair labour practice and regularisation apply to this case.
Legislation cited
- Industrial Disputes Act, 1947 — s. 2(00)(bb), 6E, 6N
- Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971
- Zilla Parishad Service Rules
Subjects
- regularisation
- unfair labour practice
- continuous service
- daily wages employee
- Industrial Disputes Act
- constitutional employer
- sanctioned post
- employment law
Judgment
2026:BHC-AUG:9637
1 of 14 87-WP.3077.2023
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
87 WRIT PETITION NO. 3077 OF 2023
CHIEF EXECUTIVE OFFICER
VERSUS
SATISH GYANOBA GAIKWAD
...
Mr. Satish S. Manale, Advocate for the Petitioner.
Mr. V. P. Golewar, Advocate for the Respondent.
...
CORAM : SIDDHESHWAR S. THOMBRE, J.
DATE : 4th MARCH 2026
P.C.:-
1. Heard learned Advocates for the respective parties.
2. By the present petition, the Petitioner is aggrieved by the
order dated 12.08.2022, passed by the learned Industrial Court
Maharashtra (Latur Bench, Latur) in Complaint (ULP) No.17 of 2014,
whereby the learned Industrial Court allowed the complaint filed by
the Respondent-Employee.
3. Mr. Satish S. Manale, learned Advocate for the Petitioner
submits that Respondent herein filed a complaint of Unfair Labour
Practice by stating that he was appointed as a Watchman on daily
wages from 06.09.1990 and when he demanded wages, he was not
allowed to sign the muster role and, therefore, he filed I.D.A. No.13 of
1998. He also filed a Complaint (ULP) No.39 of 1999 and the said
complaint was allowed and the order passed by the Labour Court was
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confirmed by the Hon’ble Apex Court in complaint. He contended that
since 1990, he has worked for more than 240 days in the year and is
entitled for permanency/regularisation.
Pursuant to the notices, the Petitioner filed a written
statement and submitted that Respondent was appointed on a
temporary basis, the post on which the Respondent was appointed is
not a sanctioned post. The appointment is not made after following the
selection procedure under the Zilla Parishad Service Rules and the
appointment was issued by the concern authority without there being
any sanctioned post. He further submits that the Integerated Child
Development Project Scheme (ICDPS) is sponsored by the Central
Government and there are specific instructions that in case, office of
the Chief Development Project Officer (for short “CDPO”) is situated in
a Panchayat Samiti, no appointment of the Watchman is necessitated as
the post of Watchman is not available and approved for the office of
CDPO.
4. He further submits that the learned Industrial Court without
considering the fact that Respondent was not appointed by the CEO, ZP,
rather he was appointed under the ICDPS scheme, by the CDPO,
therefore, the learned Industrial Court has committed error while
allowing the complaint.
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5. Per contra, Mr. V. P. Golewar, learned Advocate for the
Respondent-Employee invited my attention to the appointment order
issued by the Chief Executive Officer dated 07.08.1991, whereby it is
clear that the Petitioner was initially appointed as a Watchman under
the CDPS scheme from 02.08.1991 and 31.08.1991 by the Chief
Executive Officer, Latur and thereafter, he was continued by the Chief
Executive Officer from time to time.
6. He further submits that the other similarly situated
employees, who were appointed under the scheme by Chief Executive
Officer himself, their services were regularised and, therefore, he
submits that the learned Industrial Court rightly allowed the complaint
and prayed to dismiss the writ petition.
7. The Hon’ble Apex Court in the case of Pandurang Sitaram
Jadhav and others Vs. State of Maharashtra Through its Dairy Manager
and another, reported in [(2020) 17 SCC 393] observed in paragraphs
12, 13 and 14 as under:
"12. In view of the aforesaid facts as also the legal
pronouncements made subsequently, we have no doubt that
these appellants before us would be entitled to the benefit
of regularisation and mere delay in preferring the claim
would not come in their way except that the benefit of
regularisation would arise from the date the complaints
were filed.
13. The finding of an unfair labour practice by the Tribunal
has in fact been confirmed by the learned Single Judge in
the present case and the only two reasons for interference
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by the Division Bench relating to Umadevi (3) case have
already been explained in the aforesaid subsequent
judgments.
14. We thus, direct the respondents to regularise the
appellants accordingly and the necessary orders be issued
within three months from the date of the order. The benefits
which the appellants would be entitled to should also be
remitted to the appellants within the same period from the
date of the complaints, though the earlier period would be
counted for the purpose of calculation of benefits without
the appellants being monetarily entitled for that period."
8. The Hon'ble Apex Court further in the case of Shripal and
another Vs. Nagar Nigam, Ghaziabad, reported in (2025 SCC OnLine
SC 221) has observed in paragraphs 16, 17 and 18 as under:
"16. The High Court did acknowledge the Employer's
inability to justify these abrupt terminations. Consequently,
it ordered re-engagement on daily wages with some
measure of parity in minimum pay. Regrettably, this only
perpetuated precariousness: the Appellant Workmen were
left in a marginally improved yet still uncertain status.
While the High Court recognized the importance of their
work and hinted at eventual regularization, it failed to
afford them continuity of service or meaningful back wages
commensurate with the degree of statutory violation
evident on record.
17. In light of these considerations, the Employer's
discontinuation of the Appellant Workmen stands in
violation of the most basic labour law principles. Once it is
established that their services were terminated without
adhering to Sections 6E and 6N of the U.P. Industrial
Disputes Act, 1947, and that they were engaged in
essential, perennial duties, these workers cannot be
relegated to perpetual uncertainty. While concerns of
municipal budget and compliance with recruitment rules
merit consideration, such concerns do not absolve the
Employer of statutory obligations or negate equitable
entitlements. Indeed, bureaucratic limitations cannot trump
the legitimate rights of workmen who have served
continuously in de facto regular roles for an extended
period.
18. The impugned order of the High Court, to the extent
they confine the Appellant Workmen to future dally-wage
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engagement without continuity or meaningful back wages,
is hereby set aside with the following directions:
I. The discontinuation of the Appellant Workmen's services,
effected without compliance with Section 6E and Section
6N of the U.P. Industrial Disputes Act, 1947, is declared
illegal. All orders or communications terminating their
services are quashed. In consequence, the Appellant
Workmen shall be treated continuing in service from the
date of their termination, for all purposes, including
seniority and continuity in service.
II. The Respondent Employer shall reinstate the Appellant
Workmen In their respective posts (or posts akin to the
duties they previously performed) within four weeks from
the date of this Judgment. Their entire period of absence
(from the date of termination until actual reinstatement)
shall be counted for continuity of service and all
consequential benefits, such as seniority and eligibility for
promotions, if any.
III. Considering the length of service, the Appellant
Workmen shall be entitled to 50% of the back wages from
the date of their discontinuation until their actual
reinstatement. The Respondent Employer shall clear the
aforesaid dues within three months from the date of their
reinstatement.
IV. The Respondent Employer is directed to initiate a fair
and transparent process for regularizing the Appellant
Workmen within six months from the date of reinstatement,
duly considering the fact that they have performed
perennial municipal duties permanent posts. In assessing
regularization, the Employer shall not impose educational
or procedural criteria retroactively if such requirements
were never applied to the Appellant Workmen similarly
situated regular employees in the past. To the extent that
sanctioned vacancies for such duties exist or are require the
Respondent Employer shall expedite all necessary
administrative processes to ensure these longtime
employees are not indefinitely retained on daily wages
contrary to statutory equitable norms".
9. Further, the Hon'ble Apex Court in the matter of Dharam
Singh and others Vs. State of U.P. and Another , reported in (2025 SCC
Online 1735) observed in paragraph 17 to 20, as under:
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"17. Before concluding, we think it necessary to recall that
the State (here referring to both the Union and the State
governments) is not a mere market participant but a
constitutional employer. It cannot balance budgets on the
backs of those who perform the most basic and recurring
public functions. Where work recurs day after day and year
after year, the establishment must reflect that reality in its
sanctioned strength and engagement practices. The long-
term extraction of regular labour under temporary labels
corrodes confidence in public administration and offends
the promise of equal protection. Financial stringency
certainly has a place in public policy, but it is not a
talisman that overrides fairness, reason and the duty to
organise work on lawful lines.
18. Moreover, it must necessarily be noted that "ad-hocism"
thrives where administration is opaque. The State
Departments must establishment registers, muster rolls and
outsourcing keep and produce accurate arrangements, and
they must explain, with evidence, why they prefer
precarious engagement over sanctioned posts where the
work is perennial. If "constraint" is invoked, the record
should show what alternatives were considered, why
similarly placed workers were treated differently, and how
the chosen course aligns with Articles 14, 16 and 21 of the
Constitution of India. Sensitivity to the human is not
consequences of prolonged insecurity sentimentality. It is a
constitutional discipline that should inform every decision
affecting those who keep public offices running.
19. Having regard to the long, undisputed service of the
appellants, the admitted perennial nature of their duties,
and the material Indicating vacancies and comparator
regularisations, we issue the following directions:
i. Regularization and creation of
Supernumerary posts: All appellants shall
stand regularized with effect from
24.04.2002, the date on which the High
Court directed a fresh recommendation by
the Commission and a fresh decision by the
State on sanctioning posts for the appellants.
For this purpose, the State and the successor
establishment (U.P. Education Services
Selection Commission) shall create the or
supernumerary posts in corresponding
cadres, Class-III (Driver or equivalent) and
Class-IV (Peon/Attendant/Guard or
7 of 14 87-WP.3077.2023
equivalent) without any caveats
preconditions. On regularization, each
appellant shall be placed at not less than the
minimum of the regular pay-scale for the
post, with protection of last-drawn wages if
higher and the appellants shall be entitled to
the subsequent increments in the pay scale as
per the pay grade. For seniority and
promotion, service shall count from the date
of regularization as given above.
ii. Financial consequences and arrears: Each
appellant shall be paid as arrears the full
difference between (a) the pay and admissible
allowances at the minimum of the regular pay-
level for the post from time to time, and (b) the
amounts actually paid, for the period from
24.04.2002 until the date of
regularization/retirement/death, as the case may
be. Amounts already paid under previous interim
directions shall be so adjusted. The net arrears
shall be released within three months and if in
default, the unpaid amount shall carry
compound interest at 6% per annum from the
date of default until payment.
iii. Retired appellants: Any appellant who has
already retired shall be granted regularization
with effect from 24.04.2002 until the date of
superannuation for pay fixation, arrears under
clause (ii), and recalculation of pension, gratuity
and other terminal dues. The revised pension
and terminal dues shall be paid within three
months of this Judgment.
iv. Deceased appellants: In the case of Appellant
No. 5 and any other appellant who has died
during pendency, his/her legal representatives
on record shall be paid the arrears under clause
(ii) up to the date of death, together with all
terminal/retiral dues recalculated consistently
with clause (1), within three months of this
Judgment.
v. Compliance affidavit: The Principal Secretary,
Higher Education Department, Government of
Uttar Pradesh, or the Secretary of the U.P.
Education Services Selection Commission or the
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prevalent competent authority, shall file an
affidavit of compliance before this Court within
four months of this Judgment.
20. We have framed these directions comprehensively
because, case after case, orders of this Court in such
matters have been met with fresh technicalities, rolling
"reconsiderations," and administrative drift which further
prolongs the insecurity for those who have already laboured
for years on daily wages. Therefore, we have learned that
Justice in such cases cannot rest on simpliciter directions,
but it demands imposition of clear duties, fixed timelines,
and verifiable compliance. As a constitutional employer, the
State is held to a higher standard and therefore it must
organise its perennial workers on a sanctioned footing,
create a budget for lawful engagement, and implement
judicial directions in letter and spirit. Delay to follow these
obligations is not mere negligence but rather it is a
conscious method of denial that erodes livelihoods and
dignity for these workers. The operative scheme we have
set here comprising of creation of supernumerary posts, full
regularization, subsequent financial benefits, and a sworn
affidavit of compliance, is therefore a pathway designed to
convert rights into outcomes and to reaffirm that fairness in
engagement and transparency in administration are not
matters of grace, but obligations under Articles 14, 16 and
21 of the Constitution of India".
10. The Hon'ble Apex Court in the matter of Jaggo vs. Union of
India and Others, reported in 2024 SCC OnLine SC 3826, has also observed
in paragraphs 9, 20 and 26 as under:
"9. On the other hand, the following primary arguments
have been advanced before us on behalf of the
Respondents:
(i)…………...
(ii) Absence of Sanctioned Posts: They assert that the
appellants were not appointed against any sanctioned
posts. According to the respondents, without sanctioned
vacancies, there can be no question of regularization or
absorption into the permanent workforce.
9 of 14 87-WP.3077.2023
(iii)…………...
(iv)…………...
(v)…………...
(vi)…………...
20.…………… The said judgment sought to prevent
backdoor entries and illegal appointments that circumvent
constitutional requirements. However, where appointments
were not illegal but possibly "irregular," and where
employees had served continuously against the backdrop of
sanctioned functions for a considerable period, the need
for a fair and humane resolution becomes paramount
Prolonged, continuous, and unblemished service
performing tasks inherently required on a regular basis
can, over the time, transform what was initially ad-hoc or
temporary into a scenario demanding fair regularization. In
a recent judgment of this Court in Vinod Kumar v. Union of
India, (2024) 1 SCR 1230, it was held that held that
procedural formalities cannot be used to deny
regularization of service to an employee whose
appointment was termed "temporary" but has performed
the same duties as performed by the regular employee over
a considerable period in the capacity of the regular
employee. The relevant paras of this judgment have been
reproduced below:
"6. The application of the judgment in Uma Devi
(supra) by the High Court does not fit squarely
with the facts at hand, given the specific
circumstances under which the appellants were
employed and have continued their service. The
reliance on procedural formalities at the outset
cannot be used to perpetually deny substantive
rights that have accrued over a considerable
period through continuous service. Their
promotion was based on a specific notification
for vacancies and a subsequent circular, followed
by a selection process involving written tests and
interviews, which distinguishes their case from
the appointments through back door entry as
discussed in the case of Uma Devi (supra).
7. The judgment in the case Uma Devi (supra)
also distinguished between "irregular" and
"illegal" appointments underscoring the
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importance of considering certain appointments
even if were not made strictly in accordance with
the prescribed Rules and Procedure, cannot be
said to have been made illegally if they had
followed the procedures of regular appointments
such as conduct of written examinations or
interviews as in the present case..."
26. ……….It categorically held that employees in irregular
appointments, who were engaged in duly sanctioned posts
and had served continuously for more than ten years,
should be considered for regularization as a one-time
measure. However, the laudable intent of the judgment is
being subverted when institutions rely on its dicta to
indiscriminately reject the claims of employees, even in
cases where their appointments are not illegal, but merely
lack adherence to procedural formalities. Government
departments often cite the judgment in Uma Devi (supra) to
argue that no vested right to regularization exists for
temporary employees, overlooking the Judgment's explicit
acknowledgment of cases where regularization is
appropriate. This selective application distorts the
judgment's spirit and purpose, effectively weaponizing it
against employees who have rendered indispensable
services over decades."
11. The Hon’ble Apex Court in the case of Bhola Nath Vs.
State of Jharkhand & Ors., reported in 2026 INSC 99 , has held in
paragraph Nos.13.10 and 14, which read as under:-
“13.10. In the aforesaid backdrop, we are unable to persuade
ourselves to accept the respondent-State’s contention that the
mere contractual nomenclature of the appellants’ engagement
denudes them of constitutional protection. The State, having
availed of the appellants’ services on sanctioned posts for over a
decade pursuant to a due process of selection and having
consistently acknowledged their satisfactory performance, cannot,
in the absence of cogent reasons or a speaking decision, abruptly
discontinue such engagement by taking refuge behind formal
contractual clauses. Such action is manifestly arbitrary,
inconsistent with the obligation of the State to act as a model
employer, and fails to withstand scrutiny under Article 14 of the
Constitution.
FINAL CONCLUSION:
14. In light of our discussion, in the foregoing paragraphs, we
11 of 14 87-WP.3077.2023
summarize our conclusions as follows:
I. The respondent-State was not justified in continuing the
appellants on sanctioned vacant posts for over a decade
under the nomenclature of contractual engagement and
thereafter denying them consideration for regularization.
II. Abrupt discontinuance of such long-standing engagement
solely on the basis of contractual nomenclature, without
either recording cogent reasons or passing a speaking order,
is manifestly arbitrary and violative of Article 14 of the
Constitution.
III. Contractual stipulations purporting to bar claims for
regularization cannot override constitutional guarantees.
Acceptance of contractual terms does not amount to waiver
of fundamental rights, and contractual stipulations cannot
immunize arbitrary State action from constitutional scrutiny.
IV. The State, as a model employer, cannot rely on contractual
labels or mechanical application of Umadevi (supra) to
justify prolonged ad-hocism or to discard long-serving
employees in a manner inconsistent with fairness, dignity
and constitutional governance.
V. In view of the foregoing discussion, we direct the
respondent-State to forthwith regularize the services of all
the appellants against the sanctioned posts to which they
were initially appointed. The appellants shall be entitled to
all consequential service benefits accruing from the date of
this judgment.”
12. In the above judgments, the Hon’ble Apex Court has
considered the issue of regularization and held that if the daily wager
employee has worked for years together and subsequently, not given
benefit of permanency then it amounts to unfair labour practices. The
Respondent/Employee has proved before the learned Industrial Court
that he has completed 240 days of continuous service in one calender
year and therefore, the Industrial Court has rightly granted
permanency in his favour.
13. Having heard learned Advocates for the respective parties
12 of 14 87-WP.3077.2023
and after going through the order passed by the learned Industrial
Court. There is no dispute about the fact that the Chief Executive
Officer appointed Respondent No.1 vide its order dated 07.08.1991.
This Court while considering the Writ Petition No.2946 of 2012,
recorded finding and dismissed the writ petition and the said order was
challenged by the Petitioner by filing Letter Patent’s Appeal No.19 of
2013 and the division bench of this Court, recorded the findings in
paragraph Nos.7 to 12, which read as under:-
“7. Being aggrieved by the said judgment and order of the
Labour Court, Latur, the appellant herein preferred Revision
(ULP) No.9/2011 before the Industrial Court at Latur. The said
revision petition came to be dismissed with reasons vide
judgment and order of the revisional Court dated 29.11.2011.
Even before the Industrial Court, Latur, the appellant herein did
not raise any ground pertaining to the said workman having-
been, allegedly, illegally appointed, specific procedure for
recruitment having not been followed, or that the Project on
which he was engaged as a Watchman has come to an end. The
record and proceedings from the Court below were called for and
considered by the revisional Court.
8. The appellant raised an issue that the judgment in the
case of Secretary, State of Karnataka and Others v Umadevi and
Others [(2006) 4 SCC 11, precludes the Labour Court from
considering claims of of regularization or permanency against an
employer falling within the definition "State" under the
Maharashtra Recognition of Trade Unions and Prevention of
Unfair Labour Practices Act, 1971. The revisional Court
considered the said judgment and, based on the view of the
Hon'ble Supreme Court expressed in MSRTC Vs. Casteribe Rajya
P.Karmachari Sanghatana (2009 III) CLR 262, concluded that the
powers of the Industrial Court and Labour Courts are not
denuded by the Umadevi's judgment. It is equally noteworthy
that the claim of the workman was not for regularization or
permanency, but was challenge his oral termination from
employment in violation of the provisions of the Industrial
Disputes Act, 1947.
13 of 14 87-WP.3077.2023
9. The appellant herein preferred Writ Petition
No.2946/2012 before the learned Single Judge of this Court for
challenging the judgment and order dated 20.1.2011 delivered by
the Labour Court, Latur, and the judgment and order of the
Industrial Court, Latur, dated 29.11.2011. Even in the writ
petition, the appellant did not raise an issue as to whether the
workman was illegally appointed, or was engaged without of the
following the due procedure of law, or that the project work had
come to an end. Nevertheless, it had been proved before the
Labour Court, Latur, through the cross examination appellant's
witness, that the said Project is continued through the Zilla
Parishad, and it has not come to an end. The learned Single
Judge vide an order dated 22.11.2012, dismissed the writ
petition after hearing the parties. It is this order passed by the
learned Single Judge that has been assailed in this Letters Patent
Appeal.
10. We have heard the learned counsel for the petitioner.
To a specific query put to him as to whether the appellant had, at
any point of time, raised an issue as regards the engagement of
the workman in violation of a specific procedure be followed for
appointing Watchman, the learned Counsel, upon going through
the appellant's written statement filed in the Labour Court, Latur,
failed to point out a single sentence of pleading on this issue.
Another query was put to him as to whether the
appellant had taken a plea that the Project on which the
workman was engaged as a Watchman had come to an end, so as
to attract Section 2(00) (bb) of the Industrial Disputes Act, 1947,
the learned Counsel, once again, went through the said written
statement, and failed to point out any pleading touching this
issue.
11. We are conscious of the fact that the Scheme, on which
the workman was engaged as a Watchman was proved to have
been in continuation by the Central Government through the zilla
Parishad. So also, the learned Counsel did not contend before us
that the said Scheme has ended.. In fact, it is not the case of the
Appellant that the Scheme has come to an end. As such, we are
unable invoke Section 2(oo) (bb) Industrial Disputes Act, 1947
since the said exception to the definition of retrenchment would
be applicable only if the project work comes to an end and the
services of the workman are no longer required.
12. It has been one of the grounds in the appeal raised by
the appellant that there was delay in filing the complaint, which
ground was neither pleaded nor proved before the Labour Court
and Industrial Court. We also put specific query to the learned
14 of 14 87-WP.3077.2023
Counsel for the appellant as to how would he explain the
minor /artificial breaks of one day or two days created the
appellant each termination and subsequent appointment of the
workman. We found that the learned Counsel merely harped on
the fact of a break in service by a day or two; but, could not
establish as to whether it was a by in justifiable break. Needless
to state, we find such breaks to have been introduced by the
appellant in order to truncate the rights of the said workman and
prevent him from completing 240 days in the continuous
employment no of the hesitation in employer. We, therefore, have
disregarding these artificial breaks created by the appellant. The
learned Counsel for the appellant failed to point out any
perversity in the order of the learned Single Judge so as to
convince us to cause an interference with the said order of the
learned Single Judge.”
14.
15. I have also gone through the evidence led by both the
parties and more particularly after going through the appointment
order, which was issued by the Chief Executive Officer, Latur, I find that
there is no dispute about the fact that the Petitioner was working on
daily wages for years together i.e. from 06.09.1990.
16. Considering the law laid down by the Hon’ble Apex Court
in the above cited cases, I am not inclined to entertain the present
petition. Hence I proceed to pass following order :
ORDER
(i) The Writ Petition is dismissed.
(ii) No order as to cost.
(SIDDHESHWAR S. THOMBRE, J.)
Tauseef
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