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Supreme Court of India

RAM KUMAR & ORS.versusUNION OF INDIA & ORS.

Citation
1987 INSC 357
Decided
2 December 1987
Disposal
Disposed off

Holding

Casual labourers who have completed the requisite period of service are entitled to the same pay and benefits as temporary railway servants, but not to pensionary benefits, and must be regularised promptly.

Summary

The petitioners, casual labourers employed for 10-16 years in the Northern Railway's construction department, filed writ petitions alleging they were denied temporary status, equal pay, and regularisation despite continuous service. The respondents contended that some petitioners had already been empanelled or given temporary appointments, while others refused absorption, and argued that project casual labourers acquire temporary status after 360 days of service. The Court examined the provisions of Paragraph 2511 of the Indian Railway Establishment Manual and the Industrial Disputes Act, noting that casual labour is indispensable and entitled to the rights of temporary railway servants once the service requirement is met. It held that the petitioners are entitled to the same pay and benefits as other temporary workers, but pensionary benefits are not applicable. The Court directed the Railway Administration to promptly screen and regularise the petitioners who have not yet been tested, and ordered the petitions to be disposed of without costs.

Issues considered

  • Whether project casual labourers are entitled to temporary status and the benefits thereof under the Indian Railway Establishment Manual.
  • Whether casual labourers engaged for extended periods are entitled to equal pay for equal work with maintenance workers.
  • Whether casual labourers who acquire temporary status are eligible for pensionary benefits.
  • Whether the distinction between open line and project line casual labour can be removed prior to acquisition of temporary status.
  • Whether the Railway Administration must regularise the petitioners in the permanent cadre.

Legislation cited

Subjects

casual labourrailwaytemporary statusequal payregularisationpensionIndian Railway Establishment ManualIndustrial Disputes Act

Judgment

                                                                                      )..
    A                            RAM KUMAR & ORS.
                                                 v.
                              UNION OF INDIA & ORS.

                                   DECEMBER 2, 1987

B                  [RANGANATH MISRA AND G.L. OZA, JJ.]

        Indian Railway Establishment Manual-Para 2511-Casual
  labour employed by Railway Administration-Engaged on construction
  and open line-Whether entitled to same pay-Regularisation and grant
  of temporary status to casual labour-Necessity for-Effective imple-
C mentation of provisions for protection of casual labour-Emphasised-
  Retiral benefits-Admissibility of

        The petitioners, who were engaged on terms of casual labour for
  periods varying between 10 and 16 years in the Construction Depart-
  ment of the Signal Unit in the Northern Railway, filed writ petitions in
D this Court alleging that though they had put in continuous service for
  quite a long period, the Railway Administration-the respondent, had
  not treated them as temporary servants and had applied discriminatory
  rates of wages, and prayed for a direction to treat them at par with
  maintenance workers, and to declare that they were entitled to equal
  pay for equal work and absorpiion in the regular cadre in the
E permanent category as per the circulars issued by the responde'1ts.

               The respondents in their counter affidavits contested the claim of

                                                                                     ~-
        the petitioners contending that out of the forty four petitioners, sixteen
        had been empanelled, five of whom had been given temporary appoint-
        ments, eleven had refused to join and seventeen had been given
F       temporary status, and that by the Railway Board's directions on
        January 1, 1984, project casual labourers were now entitled to all           +
        privileges that were applicable to open line temporary railway servants,
        that temporary status will first be given in the cadre of Khallasis and
        then promotion to skilled category, after conducting trade test, and that
        the employees in the open line acquired temporary status on completion
G       of 120 days of service whereas such status was acquired by the casual
        labour in project work on completion of 360 days as formulated under
        orders of this Court.

              Disposing of the writ petitions,

H            HELD: Casual labour seems to be the requirement of the Railway
                                            138
                       RAM KUMAR v. U.0.1. [MISRA, J.]                  139

     administration and cannot be avoided. The Railway Establishment A
     Manual has made provisions for their protection, but implementation is
     not effected. Several instructions were issued by the Railway Board and
     the Northern Railway Headquarters to remove the difficulties faced by
     the casual labour bnt there is slackness in enforcing them. T.his Court
     hopes and trusts that such an unfortunate situation will not arise again
     and in the event of any such allegation coming to the Court, the B
     Administration will have to be blamed. I ;44F-G I

           No doubt, the petitioners have put in more than 360 days of
     service. But keeping the prevailing practice, distinction between the
     casual labour employed in the open line, and in the project line cannot
     be obliterated. I ;4 lD-FI
                                                                               c
           The Railway Administration should take prompt steps to screen
     such of the petitioners who have not yet been tested for the purpose of
     regularising their services. I ; 44C]

           The respondents are directed to consider the claims of the D
     petitioners promptly and make appropriate orders for their regulari-
     sation. I ;440-E]

          The petitioners are entitled to the same pay as is admissible to
     others, either in the project or in the open line. Retiral benefit of
     pension is not admissible. I i44D, BI                                 E

           ORIGINAL JURISDICTION: Writ Petition Nos. 15863-15906
     of 1984.

           (Under Article 32 of the Constitution of India)
                                                                               F
          D.N. Goburdhan, D. Goburdhan, Ms. Gita Luthra and Ms.
     Pinky Anand for the Petitioners.

          G. Ramaswamy, Additional Solicitor General, Kuldeep Singh,
     Additional Solicitor General, C. Ramesh and Mrs. Sushma Suri for
     the Respondents.                                                 G

?-         The Judgment of the Court was delivered by

            RANGANATH MISRA, J. The petitioner in each of these
      applications under Article 32 of the Constitution is a workman
      engaged on terms of casual labour for periods varying between 10 H
    140                   SUPREME COURT REPORTS           [1988] 2 S.C.R.

A   and 16 years in the Construction Department of the Signal Unit in
    the Northern Railway. All the writ petitions having disposed of by a
    common judgment as questions of law and fact involved therein are
    similar.

B
          The petitioners alleged that notwithstanding the fact that each
    of them has put in continuous service for quite a long period, the
    Railway Administration, respondent herein, has not treated them as
    temporary servants and has applied discriminatory rates of wages.
    They have asked for a direction to treat the petitioners at par with
    maintenance workers and to declare that they are entitled to equal
    pay for equal work and have asked for their absorption in the regular
    cadre in the permanent category as per the circulars issued by the
    respondents. A number of documents and circulars issued by the
    Administration have been produced in support of their claim.

        The Senior Signal & Telecom Engineer (Power Signalling) has
D filed a counter-affidavit on behalf of the respondents challenging the
  claim of the petitioners. According to the respondents five out of the
  forty-four petitioners in this group of writ petitions had undergone
  medical examination and were granted temporary status as Khallasis.
  One of them has been directed to be absorbed against a permanent
  vacancy in the open line; five others have refused to go to the open
E line for permanent absorption. He further averred that though prior
  to the issue of the Railway Board's directions on January 1, 1984,
  project casual labourers were not entitled to all the privileges like
  House Rent Allowance, City Compensatory Allowance, Casual
  Leave, increment etc., they are now entitled to all the privileges as
  applicable to open line temporary railway servants after attaining
F temporary status. In Paragraph 23 of the counter-affidavit, it has         ("'   J
  been specifically pleaded tl:at as per the extant rules, temporary
  status will first be given in the cadre of Khallasi and then promotion
  to skilled category after conducting the trade-test is admissi~le. A
  further detailed counter-affidavit has again been filed by another
  Senior Signal & Telecom Engineer, wherein along with the affidavit
G particulars of service of each of the petitioners has been provided.
  Petitioners have filed a Rejoinder.

        At the hearing of the applications, counsel for the petitioners as
  also the learned Additionaf Solicitor General were given full oppor-
  tunity of placing their arguments and documents. In addition, they
H have also furnished written submissions.
                            RAM KUMAR v. U.0.1. (MISRA, J.]                    141
J
               It is stated on behalf of the Administration that out of forty- A
         four petitioners sixteen have now been empanelled and of them five
_,,      have been given temporary appointments; eleven are said to have
         refused to join and seventeen are still continuing with tempr ·ary
         status. Learned Additional Solicitor General states that petitioners
         are project employees and do not belong to the open line. According B
         to him employees in the open line acquire temporary status on
         completion of 120 days of service as against 180 days which was the
         previous requirement. That status is acquired on completion of 360
         days by casual labour in Project Works as provided in the scheme
     '   formulated under orders of this Court, though such status were



r        acquirable by project casual labourers on completion of 180 days of
         continuous employment previously. Learned counsel for the respon-
         dents has placed reliance on the definition of 'Project' which means:
          "a project should be taken as construction of new lines, major
          projects, restoration of dismantled lines and major important open
          line works, line doubling, widening of tunnels etc. which are comp-
                                                                                       c


          leted within a definite time limit".
                                                                               D
>'              Admittedly the petitioners have put in more than 360 days of
         service. Though counsel for the petitioners had pointed out that the
         Administration was requiring continuous service for purpose of eligi-
         bility, learned Additional Solicitor General on instructions obtained
'r       from the Railway Officers present in Court during arguments has
                                                                                       E
         clarified that continuity is not insisted upon and though there is break in
         such continuity the previous service is also taken into account.
         Learned Additional Solicitor General has made a categorical state-
         ment before us that once temporary status is acquired, casual
         employees of both categories stand at par. Keeping the prevailing
         practice in the Railways in view, it is difficult for us to obliterate the
                                                                                       F
         distinction between the two categories of emp)oyees till temporary
         status is acquired.

               With the acquisition of temporary status the casual labourers


-
~
         are entitled to:

               (1) Termination of service and period of notice (subject to the
                   provisions of the Industrial Disputes Act, 1947).
                                                                                       G


               (2) Scalesofpay.

               (3) Compensatory and local allowances.
                                                                                       H
    142                   SUPREME COURT REPORTS           [!988] 2 S.C.R.
                                                                             ,;..
A         (4) Medical attendance.
                                                                              ,._
          (5) Leave rules.

          (6) Provident Fund and terminal gratuity.

B         (7) Allotment of railway accommodation and recovery of rent.

          (8) Railway passes.



                                                                             1
          (9) Advances.

c         ( 10) Any other benefit specifically authorised by the Ministry
                of Railways.                                                   J
  It is not disputed that the benefit of Discipline and Appeal Rules is
  also applicable to casual labour with temporary status. It is also
  conceded that on eventual absorption in regular employment half the
D service rendered with temporary status is counted as qualifying
  service for pensionary benefits.

         In the Signal and Telecom Construction Organisation under which
   the petitioners are working, according to the Railway Administration
  further privileges of being regularised in permanent service is affirded
E by giving them access to their regularisation against permanent
  vacancies which mostly occur in open line. For such purpose, casual
  labour in open line as well as willing project casual labour are
  combined for the purpose of screening and forming of panel on the
  basis of seniority depending upon the days of work put in. In view of
  the submission, learned counsel for the respondents has pleaded that
F the allegation of discrimination does not exist.

        Disputes 'arising out of termination of employment and inter se
  seniority came before this Court in the Writ Petition No. 147 of 1983
  (Inderpal Yadav & Ors v. Union of India. This Court changed the
  existing prevalent practice for reckoning seniority and directed that
G seniority of project casual labourers should be combined and pre-
  pared departmentwise and categorywise and in terms of the direc-
  tions of this Court, steps have been taken. It has been further
  contended that by the time these writ petitions were filed, the Railway,
  Board's order of Ist of June, 1984, had not been given but with those
  directions now holding the field, the ambit of grievances has been
H very much reduced. Learned Additional Solicitor General has gone
                      RAM KUMAR v. U.0.1. [MISRA, J.)                   143

    to the extent of even saying that nothing survives in the writ             A
    petitions.

         What exactly are the benefits admissible to temporary railway
    servants have, however, been seriously debated.
                                                                               B
         Paragraph 2511 of the Indian Railway Establishment Manual
i
    provides:-

              (a) "Casual labour treated as temporary are entitled to all
                  the rights and privileges admissible to temporary
                  railway servants as laid down in Chapter XXIII of the
                  Indian Railway Establishment Manual. The rights and          c
                  privileges admissible to such labour also include the
                  benefits of the Discipline and Appeal Rules. Their
                  service, prior to the date of completion of six months'
                  continuous service will not, however, count for any
                  purposes like reckoning of retirement benefil.s, senio-
                                                                               D
                  rity etc. Such casual labourers will, also, be allowed to
                  carry forward the leave at their credit to the new post
                  on absorption in regulation service.

               (b) Such casual labour who acquire temporary .status, will
                   not, however, be brought on to the permanent estab-
                                                                               E
                   lishment unless they are selected through regular
                   Selection Boards for Class IV staff. They will have a
                   prior claim over others to permanent recruitment and
                   they will be considered for regular employment
                   without having to go through employment exchanges.
                   Such of them who join as casual labourers before
                                                                               F
                   attaining the age of 25 years may be allowed relaxa-
                   tion of the maximum age limit prescribed for Class IV
                   posts to the extent of their total service which may be
                   either continuous or in broken periods.

               (c) It is not necessary to create temporary posts to
                                                                               G
                   accommodate casual labourers who acquire temporary
                   status for the conferment of attendant benefits like
                   regular scales of pay, increments etc. Service prior to
                   the absorption against a regular temporary/permanent
                   post after requisite selection will, however, not consti-
                   tute as qualifying service for pensionary benefits."        H
    144                  SUPREME COURT REPORTS            (1988] 2 S.C.R.

A         It is the stand of the learned Additional Solicitor General that
    no pensionary benefits are admissible even to temporary railway
    servants and, therefore, that retiral advantage is not available to
                                                                              •   •


    casual labour acquiring temporary status. We have been shown the
    different provisions in the Railway Establishment Manual as also the
    different orders and directions issued by the Administration. We
    agree with the learned Additional Solicitor General that retiral
    benefit of pension is not admissible to either category of employees.

          As already stated, sixteen out of the forty-four petitioners have
    already been empanelled and eleven seem to have joined, while
    seventeen are continuing on temporary status. We expect the
C   Railway Administration to take prompt steps to screen such of the
    petitioners who have not yet been tested for the purpose of regulari-
    sing their service.

           Learned Additional Solicitor General specifically accepted the
    position that the petitioners should be entitled to the same pay as is
0   admissible to others either in the project or in the open line. That
    would take away inequality which is main grievance of the peti-
    tioners. The respondents shall have a direction to consider the clai\ns
    of each of the petitioners promptly and make appropriate orders for
    their regularisation.

B        For over ten years, litigations of this type have been coming to
  the Court. About three years back, this Court directed a scheme for
  absorption in Yadav's case which has been framed and is operative.
  Casual labour seems to be the requirement of the Railway Adminis-
  tration and cannot be avoided. The Railway Establishment Manual
  has made provisions for their protection but implementation is not
F effective. Several instructions issued by the Railway Board and the
  Northern Railway Headquarters were placed before us to show that
  the Administration is anxious to take appropriate steps to remove the
  difficulties faced by the casual labour but there is perhaps slackness
  in enforcing them. We hope and trust that such an unfortunate
  situation will not arise again and in the event any such allegation
G coming to the Court, obviously the Administration will have to be
  blamed.

         The writ petitions are disposed of with the directions indicated
    above without any order for costs.

H N.P.V.                                             Petitions disposed of.


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