High Court of Gujarat Allows Daily Wager's Regularization from Date of Completing 720 Days in Three Years, Quashes Later Regularization Date. Industrial Tribunal Award Entitling Daily Wagers to Regularization upon Completion of Prescribed Service Period Must be Implemented from the Date of Eligibility, Not from the Date of Employer's Order.

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

The petitioner, Amrut Ramjibhai Parmar, joined the services of the respondent, Vadodara Mahanagar Seva Sadan (formerly Vadodara Municipal Corporation), as a daily wager in 1997. He continuously worked and completed 720 days of employment within a continuous period of three years by 31.12.2001. An Industrial Tribunal award dated 19.12.1983 in Reference (I.T.) No. 446 of 1981 had declared that upon completion of 720 days of service as a daily wager within a period of three years, a workman would be entitled to regularization of his services. Despite completing the prescribed days, the respondent regularized the petitioner's services only with effect from 28.06.2004, denying him the benefit from an earlier date. Aggrieved, the petitioner filed the present petition under Article 226 of the Constitution of India seeking a writ of mandamus to regularize his services from the date he completed 720 days, i.e., 01.01.2002, and a writ of certiorari to quash the order dated 28.06.2004 to that extent, along with all consequential monetary and service benefits. The petitioner contended that under the binding award, his entitlement crystalized on the date he fulfilled the service condition, and the employer could not arbitrarily fix a later date. He relied upon three earlier decisions of the High Court in similar matters, namely Municipal Commissioner, Vadodara Mahanagar Seva Sadan v. Prashantbhai Bapurao Godase and others (SCA 10008/2013, decided on 28.08.2014), Shambhubhai Vittalbhai Parmar and others v. Vadodara Mahanagar Seva Sadan (SCA 8287/2016, decided on 10.04.2019), and Upendra Kalpnath Pandey v. Vadodara Mahanagar Seva Sadan (SCA 217/2020, decided on 08.01.2020). In those cases, co-ordinate Benches had held that the benefit of regularization must be granted from the date of completion of 720 days and not from the date of the issuance of the regularization order. The respondent opposed the petition but the learned advocate could not distinguish the facts of the present case from those earlier precedents, nor could he controvert the completion of 720 days by the petitioner. He submitted that an appropriate order may be passed. The Court, upon perusing the record and hearing both sides, found that the facts were undisputed and that the petitioner had indeed completed the requisite number of days. Reliance was placed on the observations in Prashantbhai Bapurao Godase (supra), where it was held that merely writing that the effective date of benefit would be the date of issuance of office order should not operate against the workman, as that would amount to giving premium to the employer for his arbitrariness and illegality. Accordingly, the Court allowed the petition, made rule absolute, and directed the respondent to regularize the petitioner’s services from the date he completed 720 days in three years, i.e., 01.01.2002, with all consequential monetary and service benefits. The order dated 28.06.2004, to the extent it fixed the regularization date as 28.06.2004, was quashed. No order as to costs was passed.

Headnote

A) Service Law - Regularization of Daily Wagers - Date of Regularization - Industrial Disputes Act, 1947, Section 10(1) - The petitioner, a daily wager, completed 720 days of continuous service within three years, entitling him to regularization as per an Industrial Tribunal award dated 19.12.1983 in Reference (IT) No. 446 of 1981. The employer regularized him from 28.06.2004 instead of the date he completed the eligibility requirement. The Court held that the benefit must be granted from the date of completion of 720 days, not from the date of the office order, and directed regularization with effect from the completion date along with all consequential service and monetary benefits (Paras 4-9).

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Issue of Consideration

Whether a daily wager who completes 720 days of continuous service within three years is entitled to regularization from the date of completion of such service, or from the date of the employer's regularization order, under the Industrial Tribunal award dated 19.12.1983 in Reference (IT) No. 446 of 1981.

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Final Decision

Petition allowed. Rule made absolute. Petitioner's services directed to be regularized from the date he completed 720 days in three years (i.e., 01.01.2002) with all consequential service and monetary benefits. The order dated 28.06.2004 to the extent it fixed later date is quashed. No order as to costs.

Law Points

  • Regularization of daily wagers
  • Completion of 720 days in three years
  • Industrial Tribunal award binding
  • Benefit from eligibility date
  • Arbitrariness by employer disallowed
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Case Details

2026 LawText (GUJ) (03) 575

R/Special Civil Application No. 20987 of 2023

2026-03-12

Nirzar S. Desai

2026:GUJHC:18797

Priyank S Dave, Maulik Nanavati

Amrut Ramjibhai Parmar

Vadodara Mahanagar Seva Sadan

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Nature of Litigation

Service matter for regularization of daily wager and correction of regularization date.

Remedy Sought

Petitioner sought writ of mandamus to regularize his services from the date he completed 720 days of employment in three years as per Industrial Tribunal award, and certiorari to quash the order fixing a later date.

Filing Reason

Employer regularized him from 28.06.2004 instead of from the date of eligibility, which was 01.01.2002, denying him seniority and monetary benefits.

Previous Decisions

Industrial Tribunal passed award dated 19.12.1983 in Reference (IT) No. 446 of 1981 granting regularization upon completion of 720 days in three years. Later, the employer issued an office order on 28.06.2004 regularizing petitioner from that date. Prior judgments by High Court in similar cases had granted regularization from the completion date.

Issues

Whether the daily wager is entitled to regularization from the date of completing 720 days of continuous service in three years as per the Industrial Tribunal award, or from the date of the employer's regularization order.

Submissions/Arguments

Petitioner relied on award and similar decisions; argued that benefit should be from completion date, not from order date. Respondent vehemently opposed but could not distinguish the case, could not controvert completion of 720 days, submitted appropriate order may be passed.

Ratio Decidendi

Where an Industrial Tribunal award entitles a daily wager to regularization upon completion of 720 days of continuous service in three years, the benefit must be given from the date the workman becomes eligible, not from a later date chosen by the employer. The employer cannot arbitrarily delay the benefits. The court is bound to ensure consistency with earlier decisions on the same award.

Judgment Excerpts

Though learned advocate Mr. Maulik Nanavati vehemently opposed the petition, from the record he could not point out that the case of the present petitioner is different from that of the petitioners in the petitions referred to hereinabove and decided by the Co-ordinate Bench nor could he controvert the fact that the petitioner had completed 720 days of work within three continuous years... the petition is required to be allowed in terms of the prayers made by the petitioner and the same is allowed.

Procedural History

Petitioner filed Special Civil Application under Article 226 of the Constitution of India seeking writ of mandamus and certiorari. The Court issued Rule and with consent of parties, matter taken up for final hearing.

Acts & Sections

  • Industrial Disputes Act, 1947: 10(1)
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