Gujarat HC: Service Rendered Prior to Regularization shall be Considered while Conferring Pensionary Benefits

Mar8,2022 #GUJARAT HIGH COURT
Gujarat High court Law Insider

Mitali Palnitkar

Published on: March 8, 2022 at 18:30 IST

The Gujarat High Court with respect to Section 25B of Industrial Disputes Act, 1947 stated that while Awarding Pensionary Benefits, the entire Service rendered even prior to the Benefit of Regular Pay-Scale Awarded shall be considered.

A Special Civil Application under Article 226 of the Constitution was heard by Justice Biren Vaishnav.

The Petitioner sought to direct the Respondent Authorities to consider him as Permanent Workman and clear Arrears of Monthly Wages, Revision of Pay-Scale Benefits of 6th and 7th Pay Commission along with Simple Interest of 12% per annum.

In December 1979, the Petitioner was employed as Daily Wager. The Industrial Tribunal Order passed in November 2021 directed that the Petitioner along with 20 Workmen be treated as Permanent and be paid all Benefits. However, this was challenged before the High Court.

The Petitioner contended that though he Rendered 40 years of Service, he was not paid Pensionary Benefits. He was also not included in Benefits for General Provident Fund where his Co-Worker was a Beneficiary.

He brought to the Notice of Court the statements of 21 Workers who were granted Benefits vide an Order of August 2013.

The Respondent argued that the Petitioner was granted Benefit of 6th and 7th Pay Commission. He was also granted Benefits like Medical Allowance, House Rent Allowance, etc.

The Petitioner had completed 5 years’ Service in 2005 and 10 years in 2010 on the basis of Rendering Service for 240 days in a year.

However, there was Evidence that the Petitioner failed to work for 240 days a year in the years preceding 2001. Thus, his Service fell short of minimum number of years required. He was duly Paid the Gratuity of Rs 2,44,608 for 9 Years.

The Bench relied on Tribhovanbhai Jerambhai Vs. Dy Executive Engineer, Sub-Division, R&B Deptt & Anr (1998) and other Cases.

Justice Vaishnav quoted, “It may be the Benefits of regular Services such as Regular Pay Scale, Leave, Gratuity and Pensionary Benefits may be available only after regularization of an Employee. However, this does not mean that his past continuous Service would be wiped out for the purpose of Pensionary Benefits.”

The Court opined that the Petitioner’s Case deserved consideration. It allowed the Petition and directed that the Petitioner be paid Pension, Gratuity and other Monetary Benefits from December 14, 1979 (Date of Employment).

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