UNION OF LNDIA AND ORS.versusDHARMA PAL AND ORS. ETC.

A                         UNION OF lNDIA AND ORS.
                                     v.
                         DHARMA PAL AND ORS. ETC.

                                  MARCH 29, 1996

B               [K. RAMASWAMY AND G.B. PATTANAIK, JJ.j

          Labour Law:

          lndust1ial Di.1putes Act, 1947/Equal Remuneration Act, 1976 :

C          Casual Labow·e1"/Daily wage worken-Regulmisation of-U11io11 Ter-
    1ito1y of C/wndigarh-Work chmge employees/Ca.ma/ labourers/Daily wage
    workers working in the Govenunent. Departn1ents for nzore than JO
    year.'i'"-Schenze ji·anzed by tlze Govenunent for regula1isation approved and
    directed to be ilnple111ented-E111ployees who are regula1ised would be entitled
D lo all (he regular payment at the scale of pay presc1ibed lo the Central
    Govenunent e111ploye~Worke1:\' who are not regula1ised are entitled to niin-
    imwn sa/aiy presc1ibed for the post-In addition to that they are also entitled
    to 60% of the DA. at Punjab pattem-Procedure for retre11chment to be
    followed in J"Cj]Ject of the worke1:f who are required to be retrenched.

E        CIVIL APPELLATE JURISDICTION: Civil Appeal No. 7062 of
    1996 Etc.

          From the Judgment and Order dated 1.4.92 of the Central Ad-
    ministrative Tribunal, Chandigarh in 0.A. No. 276 CH. of 1989.

F         K. Madhava Reddy, P.S. Poti and M.R. Sharma, Kanwaljcet Koch-
    har, J.D. Jain, K. R. Nambiar, C.M Sharma, M.C. Dhingra and Anjani
    Sharma for the appearing parties.                                                 ·+
          The following Order of the Court was delivered :

G         Leave granted.

          We have heard learned counsel on both sides.

          Pursuant to the direction given by this Court the appellants have           -I -·
    framed the scheme. Shri K.B. Sharma, Superintending Engineer, Construc-
H   tion Circle No. 2, Chandigarh Administration has placed the same along
                                      1056
                        U.0.1.v. DHARMAPAL                              1057

with the additional affidavit. The Scheme has been approved by the Central A
Government. The .schc1ne reads as under :

     For work charged eniployees :

        "(i) All the works establishment (excluding office of Ministerial
        Clerical and drawing cadres below the level of _junior Engineer),       B
        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 he a unit for casual or daily wage work force and a 'circle'
        for work charged establishment. Separate cadre and seniority list
                                                                                c
        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
        duration, i.e., less than 240 days in a year, will be terminated on     D
        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 Regularisation against the
        available regular posts subject to the fulfilment of requirements as    E
        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 of daily/casual workers.

        (iv) Since a complete ban on recruitment of· work charged
        casual/daily wage employees was imposed by Chandigarh Ad- F
        ministration, those recruited in contravention o.f this policy
        decision after this date, i.e., 6.1.1992 will be considered for their .
        regularisation only on the assessment of justification/requirements
        on the basis of norms approved for the continued nature of work
        and attaching the specific approval of Home Department, Chan- G
        digarh Administration.

        For Casual/Daily Wage1~

        (v) Workers working as Casual labourers in works which have more
        or less fixed period of completion will be eligible for payment of H
    1058                  SUPREME COURT REPORTS                    [1996] 3 S.C.R.

A            benefits as admissible to them under rules. However, they will not
             be considered for regularisation automatically. Their requirement
             has to be reassessed after commissioning the work. Thus, the
             workers will be liable lo 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
B
             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 regularisation w.e.f.
             31.8.1995 on the availability of posts. Such employees shall be
c            entitled for minimum of the scale w.e.f. the date of their regularisa-
             tion. On regularisation, these employees shall be liable for transfer
             any where within the Engineering Department, U.T. Chandigarh.

             (vii) In respect of all such daily wages employees, who have not
             yet completed 10 years service, a special review should be carried
D            out at the level of Head of Department regarding their require-
             ment.

             (viii) In the case of those employees whose services are no longer
             required and have been taken after 6.1.1992 and specific approval        f
             of Home Department, Chandigarh Administration does not exist,
E
             they may be relieved of their duties at the earliest possible."

         Shri Poti, learned senior counsel has brought to our notice Jetter
  dated January 4, 1996 addressed by the Joint Secretary, Personnel to all
  the heads of the Departments in which it wa' stated that they were
F 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. Madhava 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
G actiorl' 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 Tribuhal. 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\vork out at the approximate rate Rs. 8 crores.
H Therefore, direction seeking their approval has been sought from the
1,



                              U.0.1.v. DHARMAPAL                             1059

     Government of India. He stated that the Government of India was not A
     willing to extend the same benefit though formal order has not been
     corn1nunicated 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,
     arc willing to continue to pay to the daily wage workers above 60'f,; subject
     to the above scheme. Shri Sharma learned senior counsel appearing for all
                                                                                   B
     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      C
     appellants would be permitted to proceed in the 1.ight 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    D
     wage employees are required to be regularised in accordance with the rules
     invoguc 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 repetition, we            E
     think that the scheine requires enforcement.

            In view of the scheme now framed, the appellants are directed to
     regularise all those who have completed the prescribed period of days, viz.,
     240 days against the existing vacancies applying the rules of reservation in F
     the order of seniority in the respective categories mentioned in the scheme.
     Such regularised 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 regularised are directed to be regularised in the order
     of seniority as had when vacancies arise. Work would be continued to be
     taken from them as long as the work exists. Even those who were engaged G
     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 H
     1060                  SUPREME COURT REPORTS                  [1996] 3 S.C.R.

A    the work arises, they should be called for work immediately without asking
     them lo gel their names sponsored hy the Employment Exchange. The daily
     \Vagc \Yorkers/casual \Yorkers \Vho arc not regularised and taken work from
     lhcn1 arc entitled to mini1nu1n of scale of pay prescribed for that posl. In
     addition to that, they arc 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
B whose service arc regularised/continuing on daily wage/casual lahour shall
     be calculated from one year prior to the date of filing of the application in
     the Central Administrative Tribunal, Chandigarh. The appellants are
     directed to pay the same within a period of four months from to-day.

.C          The appeals arc accordingly disposed of. No costs .

     R.P.                                               Appeals are disposed of.