Supreme Court Allows State Appeal Against High Court Directions on Equal Pay and Regularisation of Daily Wagers. Creation of Sanctioned Posts is a Prerequisite for Regularisation and Equal Pay as per Executive Policy.

In Favour of Prosecution
  • 4
Judgement Image
Font size:
Print

Case Note & Summary

The dispute arose from a High Court judgment directing the State of U.P. to grant equal pay for equal work and regularise daily wagers in Class IV service working with the U.P. Madhyamik Siksha Parishad. The respondent union represented these daily wagers, who were engaged during examinations for manual work such as lifting bundles, pasting envelopes, and shifting answer books. The High Court found that they had been regularly working for over 15 years doing work on par with regular Class IV employees and consequently directed the appellants to pay equal wages and regularise their services by creating appropriate posts. The State of U.P. appealed by special leave to the Supreme Court under Article 136 of the Constitution. The central legal question was whether daily wagers performing duties similar to regular employees are entitled to equal pay and regularisation absent sanctioned posts. The State argued that creation of a post is an administrative prerequisite for permanent appointment, and the need for posts is a matter of executive policy. It highlighted that daily wagers were engaged only when exigencies arose during examinations and were paid Rs.25 per day as fixed by the District Magistrates of Allahabad under the Minimum Wages Act. The State further stated in the Special Leave Petition that the Board had been regularising daily wagers in Class IV service as and when posts were created or fell vacant, based on length of engagement and performance. The respondent union effectively relied on the High Court's finding of long service and parity of duties. The Supreme Court reasoned that unless posts are created, daily wagers cannot be fitted into regular posts, and equal pay for equal work cannot be claimed without existing sanctioned posts. It acknowledged that if vacant posts existed and daily wagers were performing the same duties, there might be justification for regularisation according to rules, but no such posts were present. The Court held that the direction to create posts and pay equal wages was not correct. It observed that the Board's existing procedure of regularising daily wagers as and when posts are created or fall vacant was fair. The Court directed that as and when regular posts are created or posts fall vacant, the daily wage employees should be considered for regularisation based on seniority, length of service, and performance, according to rules and reservation policy in vogue. Until then, their services would be taken as and when exigencies arise, and they would be paid daily wages as determined by the District Magistrate from time to time. The appeal was allowed with no order as to costs.

Headnote

A) Service Law - Equal Pay and Regularisation - Daily Wagers Not Entitled to Equal Pay or Regularisation Without Creation of Posts - Constitution of India, 1950, Article 136; Minimum Wages Act, 1948 - The High Court had directed equal pay for equal work and regularisation by creating posts for daily wagers who had worked over 15 years in Class IV duties with U.P. Madhyamik Siksha Parishad. The Supreme Court held that creation of posts is an administrative or executive policy matter and that daily wagers engaged for exigencies like examinations are not entitled to equal wages or regularisation absent sanctioned posts. The Court directed that as and when regular posts are created or fall vacant, daily wage employees be considered for regularisation based on seniority, length of service and performance according to rules and reservation, and until then be paid daily wages as fixed by the District Magistrate. Held that the High Court's direction could not be upheld (Paras 1-2).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether daily wagers performing duties similar to regular Class IV employees are entitled to equal pay and regularisation without creation of sanctioned posts.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Appeal allowed. The Supreme Court set aside the High Court directions. It directed that as and when regular posts are created or fall vacant, daily wage employees be considered for regularisation based on seniority, length of service, and performance according to rules and reservation in vogue. Until then, their services be taken as and when exigencies arise, and payment of daily wages be made as determined by the District Magistrate from time to time. No costs.

Law Points

  • Creation of post is a condition for filling up post on permanent basis
  • Exigencies of administration and need for creation of posts are matters of executive policy
  • Equal pay for equal work not applicable without sanctioned posts
  • Regularisation only as and when posts are created or fall vacant according to rules and reservation policy
  • Daily wage workers engaged for exigencies are paid minimum wages as fixed by District Magistrate
Subscribe to unlock Law Points Subscribe Now

Case Details

1995 LawText (SC) (11) 155

1995-11-06

K. Ramaswamy, B.N. Kirpal

1996 AIR 708, 1996 SCC (7) 34, JT 1995 (9) 132, 1995 SCALE (6) 434

State of U.P. & Ors.

U.P. Madhyamik Siksha Parishad Shramik Sangh & Anr.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Appeal by State against High Court judgment directing equal pay and regularisation of daily wagers.

Remedy Sought

State of U.P. sought setting aside of High Court directions for equal pay for equal work and regularisation by creating posts for daily wagers in Class IV service.

Filing Reason

The High Court found daily wagers had worked over 15 years doing similar work as regular Class IV employees and directed equal pay and regularisation; State challenged on ground that no posts were created and creation of posts is an executive policy matter.

Previous Decisions

High Court directed the State of U.P. to pay equal pay for equal work to daily wagers and regularise their services by creating appropriate posts.

Issues

Whether daily wagers engaged for exigencies are entitled to equal pay for equal work with regular Class IV employees absent sanctioned posts? Whether courts can direct creation of posts for regularisation of daily wagers when creation of posts is an executive policy matter?

Submissions/Arguments

State argued that creation of a post is a condition for filling up a post on permanent basis; need for posts is a matter of executive policy; daily wagers were engaged only during examinations for manual work and paid Rs.25 per day under Minimum Wages Act; no posts were created, so they were not entitled to equal wages or regularisation. State further stated that the Board had been regularising daily wagers in Class IV service as and when posts were created or fell vacant, based on length of engagement and performance. Respondent union relied on High Court finding that daily wagers had worked over 15 years doing work on par with regular Class IV employees, thus entitled to equal pay and regularisation by creating posts.

Ratio Decidendi

Creation of a post is a precondition for filling up a post on permanent basis; exigencies of administration and need for creation of posts are matters of executive policy. Daily wagers engaged for exigencies are not entitled to equal pay for equal work or regularisation absent sanctioned posts. They may be considered for regularisation as and when posts are created or fall vacant, according to rules and reservation policy.

Judgment Excerpts

It is an administrative procedure that creation of a post is a condition for filling up the post on permanent basis. Unless the posts are created, they are not entitled to be fitted into any regular post. Until then their services will be taken as and when exigencies would arise and payment of daily wages made as determined by the District Magistrate from time to time.

Procedural History

The respondent union represented daily wagers in class IV service working with U.P. Madhyamik Siksha Parishad. The High Court found they had been regularly working for over 15 years doing similar work on par with regular Class IV employees and directed the appellants to pay equal pay for equal work and regularise their services by creating appropriate posts. The State appealed to the Supreme Court by special leave. The Supreme Court granted leave and allowed the appeal.

Acts & Sections

  • Constitution of India, 1950: Article 136
  • Minimum Wages Act, 1948:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court High Court of Karnataka Quashes Conversion of Summary Trial to Warrant Trial in NI Act Cases — Magistrate Exceeded Jurisdiction Under Sections 259, 260 CrPC and Section 143 NI Act. The court held that Section 143 NI Act mandates summary trial for S...
Related Judgement
High Court Bombay High Court Allows Condonation of 381 Days' Delay in Filing Appeal Against Divorce Decree — Wife's Ignorance of Ex-Parte Decree Constitutes Sufficient Cause. Delay condoned as wife was unaware of the decree and learned of it only during DV Ac...