Case Note & Summary
The Supreme Court of India heard appeals by the State of Himachal Pradesh against a High Court judgment that directed the State to grant monetary benefits with effect from 1 January 2007 to part-time Revenue Chowkidars who had been converted to daily wage status. The background of the case involves a State policy dated 27 February 2004, which provided that part-time Class-IV employees who completed ten years of continuous service as on 31 December 2003 would be made daily wagers with prospective effect. This policy initially did not cover Revenue Chowkidars, who were engaged by Panchayats. In a previous case, Moti Singh v. State, the High Court had directed that if daily wage status was granted retrospectively, the employee would not be entitled to any consequential monetary benefits for the past period, but the period would count for regularization. Pursuant to that, the State Government issued instructions on 22 September 2011 and 7 July 2012 specifically for Revenue Chowkidars, stating that wages would be paid from the date of actual appointment as daily wager, and seniority would be granted from the completion of ten years of part-time service, but without any financial benefits for the past. The respondent employees filed a writ petition seeking daily wage status with consequential benefits from 27 February 2004. The High Court, by its impugned judgment dated 20 July 2012, directed that all part-time Revenue Chowkidars who had been conferred daily wage status should be granted monetary benefits with effect from 1 January 2007. The State appealed to the Supreme Court, confining its challenge to the question of back wages. The Supreme Court noted that the High Court's direction was inconsistent with its own earlier decision in Moti Singh and with the State's policy. The Court held that once the State Government decided to bring part-time Revenue Chowkidars on a daily wage basis with the stipulation that seniority would count from completion of ten years but without past financial benefits, that principle was required to be followed. The Supreme Court allowed the appeals, set aside the direction for payment of monetary benefits from 1 January 2007, and clarified that the State Government shall abide by the stipulations in the communication dated 22 September 2011, with seniority counted from the date of completion of ten years as part-time chowkidars but without any financial benefits for the past.
Headnote
A) Service Law - Regularization - Part-time Employees - Daily Wage Conversion - Monetary Benefits - The State Government's policy dated 27 February 2004 provided that part-time Class-IV employees completing ten years of continuous service as on 31 December 2003 would be made daily wagers with prospective effect. The High Court's direction to grant monetary benefits from 1 January 2007 was inconsistent with the policy and with its own earlier decision in Moti Singh (supra) which held that no consequential monetary benefits would be payable for the past period. The Supreme Court set aside the direction and upheld the State's instructions dated 22 September 2011 and 7 July 2012 that wages would be paid from the date of actual appointment as daily wager, though seniority would count from completion of ten years of part-time service. (Paras 1-8) B) Service Law - Part-time Employees - Revenue Chowkidars - Applicability of Policy - The policy dated 27 February 2004 applied to part-time Class-IV employees in all departments except Education and Ayurveda. Revenue Chowkidars, who were engaged by Panchayats and not appointed by the State, were not initially covered. However, the State Government issued separate instructions on 22 September 2011 and 7 July 2012 specifically governing Revenue Chowkidars, granting them daily wage status with seniority from completion of ten years but without past financial benefits. The Supreme Court held that these instructions were binding and the High Court erred in ignoring them. (Paras 4-7)
Issue of Consideration
Whether part-time Revenue Chowkidars who were granted daily wage status are entitled to monetary benefits with effect from 1 January 2007, or only from the date of actual appointment as daily wagers without past financial benefits.
Final Decision
Appeals allowed. The direction in the impugned order for payment of monetary benefits with effect from 1 January 2007 is set aside. The State Government shall abide by the stipulations in the communication dated 22 September 2011. Seniority of part-time chowkidars granted daily wage status will be counted from the date of completion of ten years as part-time chowkidars, but without any financial benefits for the past. No order as to costs.
Law Points
- Part-time employees converted to daily wage status are not entitled to retrospective monetary benefits unless policy so provides
- Seniority may be counted from completion of ten years of part-time service without financial benefits
- State policy decisions must be followed consistently
