Case at a glance: The Supreme Court has held that skilled daily-wage workers of Gujarat's Irrigation Department, treated as permanent under a 1988 Government Resolution, are entitled to the increment due on 1 July after retiring on 30 June, with pension recalculated. It called it “strange” that the State raised the daily-wager objection for the first time in appeal, and applied the modified M. Siddaraj directions to limit arrears to three years before the writ petition.
The appellants worked for more than 30 years as daily-wage skilled workers in Gujarat's Irrigation Department and retired on 30 June of various years. They were denied the increment that fell due on the following 1 July. Under a Government Resolution of 17 October 1988, such workers with 10 or more years of service were treated as permanent for pay, allowances, pension and retiral benefits.
A Single Judge of the Gujarat High Court allowed their claim, relying on KPTCL v. C.P. Mundinamani. A Division Bench reversed this, accepting the State's argument, raised for the first time in appeal, that they were only daily wagers.
The Key Question Before the Court
Are daily-wage workers treated as permanent under the 1988 Resolution entitled to the 1 July increment after retiring on 30 June, and from when?
The 1988 Resolution and the Siddaraj Framework
The Court found it “strange” that the daily-wager ground was raised only at the appellate stage, and held it could not stand because it ignored the 1988 Resolution; the State did not dispute that the workers fell within it.
It then explained the operation of the Union of India v. M. Siddaraj orders: the interim order of 6 September 2024 was made final for clauses (a) to (c), and clause (d) was modified on 20 February 2025. As the appellants filed their writ petition in 2022, modified clause (d) applied, giving them the increment and recalculated pension for three years before the month of filing. Following MP Purv Kshetra Vidyut, no interest is payable on arrears, but delay beyond the Court's deadline attracts interest.
What the Court Actually Held
- The appeal was allowed.
- Authorities must compute each appellant's entitlement under modified clause (d) and release amounts within 30 days.
- Failing payment, interest at 6% per annum runs until payment.
- Proforma respondents who were also petitioners get the same benefit.
Why This Judgment Matters
- It extends the 1 July increment principle to workers deemed permanent by government resolution.
- It clarifies the arrears limit under the Siddaraj orders.
- It discourages new grounds raised for the first time in appeal.
What Should Advocates Take Away From the Judgment?
For Retired Employees
- Check whether a resolution or scheme treats you as permanent for retiral benefits.
- Note that arrears depend on when the writ petition was filed.
For State Counsel
- Raise factual objections at the first stage; new grounds in appeal may be rejected.
Key Takeaways
- Workers covered by the 1988 GR get the 1 July increment.
- The daily-wager objection was rejected.
- Arrears limited to three years before filing.
- Pay in 30 days or 6% interest.
Frequently Asked Questions
The 1988 Resolution treated such workers with 10+ years' service as permanent for pay and pension.
Three years before the month the writ petition was filed, under modified clause (d) of the Siddaraj order.
Not on the arrears as such, but 6% interest applies if payment is not made within 30 days.
Conclusion
The judgment gives long-serving workers the same retirement-eve increment benefit as regular employees.
Practical takeaway: Employees retiring on 30 June should file promptly, since arrears under Siddaraj are limited by the date of filing.