Gujarat High Court Quashes Pay Fixation Order in Daily Wager Service Matter, Directs Regular Pay Scale from January 1997. Benefit of Government Resolution dated 17.10.1988 Applied from Initial Appointment Date, Not from 2010, and Seniority List Error Corrected.

High Court: Gujarat High Court In Favour of Accused
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Case Note & Summary

The matter arose from a writ petition filed under Article 226 of the Constitution of India before the High Court of Gujarat. The petitioner, a daily wager engaged by the respondent since January 1987, sought correction of an anomaly in his pay fixation and seniority. His service was terminated in 1990, but during the pendency of a reference before the Labour Court, he was reinstated on 13 August 1994. The Labour Court vide award dated 6 April 1995 directed the respondent to pay 25% back wages and granted continuity of service. Subsequently, the respondent regularized his service on 10 September 2001, acknowledging his initial entry as January 1987. However, in the seniority list prepared as of 1 January 2005, his date of appointment was erroneously shown as 17 May 2002. The respondent passed an order on 15 June 2013 granting the benefit of Government Resolution dated 17 October 1988 (which provides for regular pay scale upon completion of 10 years of service) with effect from 1 April 2010. The petitioner contended that he had completed 10 years of service in January 1997, and thus the benefit should have been granted from that date, not from 2010. He also challenged the seniority date and sought payment of arrears with interest. The respondent argued that the petitioner had not completed 240 days of work in each year between 1992 and 2002, and that his reliance on the case of a similarly situated employee, Punjiben Makhwana, was misplaced. The Court examined the records and found that the period of termination and the Labour Court’s award granting continuity of service could not be ignored, and that the respondent’s own chart of working days was inconsistent. Noting that in Punjiben Makhwana’s case the High Court had directed grant of the resolution benefit from her initial appointment date, the Court held that the petitioner was similarly entitled. Accordingly, the impugned order dated 15 June 2013 was quashed, and the respondent was directed to treat the petitioner’s date of appointment as January 1987, grant regular pay scale from January 1997, and pay all consequential benefits and arrears by 30 April 2026, failing which interest at 6% per annum would accrue from 1 May 2026. The petition was allowed and rule was made absolute.

Headnote

A) Service Law - Pay Fixation - Benefit of Government Resolution dated 17.10.1988 - The petitioner, a daily wager engaged in January 1987, was entitled to regular pay scale upon completion of 10 years of service as per the resolution. The respondent erroneously granted the benefit from 01.04.2010, ignoring the continuity of service granted by the Labour Court. Held that the benefit should be granted from January 1997, and the impugned order dated 15.06.2013 is quashed (Paras 13-14).

B) Service Law - Seniority - Determination of Initial Date of Appointment - The respondent prepared a seniority list showing the petitioner's date of appointment as 17.05.2002, despite his initial engagement in January 1987 and the Labour Court award granting continuity of service. Held: respondent directed to consider appointment from January 1987 and correct seniority accordingly (Paras 5, 14).

C) Labour Law - Continuity of Service - Effect of Labour Court Award - The period between termination and reinstatement, for which the Labour Court granted continuity and back wages, cannot be ignored for calculating the qualifying service for grant of regular pay scale under Government Resolution dated 17.10.1988 (Paras 11.1).

D) Constitutional Law - Writ Jurisdiction - Article 226 of the Constitution of India, 1950 - The High Court exercised its jurisdiction under Article 226 to quash the impugned order and direct the respondent to fix pay and grant arrears, ensuring parity with similarly situated employees (Paras 3, 14-15).

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Issue of Consideration

Whether the respondent correctly fixed the date of regular pay scale benefit as 01.04.2010 instead of upon completion of 10 years from initial appointment in January 1987, and whether the seniority list date of 17.05.2002 is erroneous

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Final Decision

The petition is allowed. Impugned order dated 15.06.2013 is quashed and set-aside. Respondent directed to consider petitioner's date of appointment as January 1987 and grant regular pay scale from January 1997 with consequential benefits and arrears to be paid by 30.04.2026, failing which interest at 6% p.a. from 01.05.2026 till realization.

Law Points

  • Government Resolution dated 17.10.1988
  • continuity of service includes period of termination and reinstatement when ordered by Labour Court
  • regular pay scale benefit from initial appointment date
  • equitable treatment of similarly situated employees
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Case Details

2026 LawText (GUJ) (03) 412

R/SPECIAL CIVIL APPLICATION NO. 885 of 2022

2026-03-09

Maulik J. Shelat

2026:GUJHC:17853

Ms. Mamta R. Vyas for the Petitioner, Ms. Forum Bimal Sukhadwala, AGP for the Respondents

Jitendrabhai Dahyabhai Loladiya

State of Gujarat & Ors.

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the erroneous pay fixation and seniority date, seeking direction to grant benefit of Government Resolution dated 17.10.1988 from initial appointment.

Remedy Sought

Petitioner sought to quash order dated 15.06.2013, correct his date of appointment to January 1987, and grant regular pay scale from January 1997 with arrears and interest.

Filing Reason

Respondent granted regular pay scale benefit from 01.04.2010 instead of upon completion of 10 years from initial appointment in January 1987, and erroneously showed his date of appointment as 17.05.2002 in seniority list.

Previous Decisions

Labour Court award dated 06.04.1995 granting continuity of service and 25% back wages; respondent's order dated 15.06.2013 fixing benefit from 01.04.2010.

Issues

Whether the respondent correctly granted benefit of Government Resolution dated 17.10.1988 from 01.04.2010 instead of upon completion of 10 years from initial appointment? Whether the date of appointment in seniority list should be January 1987 instead of 17.05.2002?

Submissions/Arguments

Petitioner: Engaged as daily wager in January 1987, continuously working except terminated period, Labour Court granted continuity of service, thus 10 years completed in January 1997, other similarly situated employees got benefit from initial date. Respondent: Petitioner did not complete 240 days per year between 1992 and 2002, thus not entitled; case of Punjiben not comparable.

Ratio Decidendi

When an employee is granted continuity of service by a Labour Court, the period of break due to termination is to be included for computation of service for grant of service benefits. The Government Resolution dated 17.10.1988 entitles a daily wager to regular pay scale upon completion of 10 years of service from initial appointment, and the benefit cannot be postponed to a later date arbitrarily. Similarly situated employees should be treated equally.

Judgment Excerpts

the period between date of termination and reinstatement could not have been ignored by respondent while calculating total 10 years of service of the petitioner. the respondent is supposed to grant the said benefit upon completion of 10 years from petitioner’s initial appointment, i.e. January 1997.

Procedural History

Petitioner filed writ petition under Article 226 of the Constitution. He amended the prayer clause to correct the date. Rule was issued and returned forthwith. With consent of parties, final hearing was conducted. Earlier, the petitioner was terminated from service in 1990, approached the Labour Court, was reinstated during pendency of reference on 13.08.1994, and the Labour Court vide award dated 06.04.1995 granted continuity of service and 25% back wages. The respondent regularized his service on 10.09.2001 and passed order dated 15.06.2013 granting benefit of Government Resolution dated 17.10.1988 from 01.04.2010. The petitioner challenged that order and the erroneous seniority date.

Acts & Sections

  • Constitution of India: Article 226
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