Daily Wagers Treated as Permanent Cannot Be Denied the 1 July Increment on Retirement: Supreme Court

The appellants retired on 30 June of various years after more than 30 years in the Irrigation Department and were denied the increment due on 1 July (paras 3, 6). A learned Single Judge of the Gujarat High Court allowed their claim on 26.09.2023, following C.P. Mundinamani, and directed payment with arrears (paras 3-4). In the State's appeal a new ground was urged, that the appellants were daily wagers; the Division Bench accepted it on 09.01.2025 and set the order aside (para 5). Under a Government Resolution of 17.10.1988, daily-wage skilled workers with 10 years' service on 01.10.1988 were to be treated as permanent, with payscale, allowances and pensionable service (para 6).

The Additional Solicitor General did not dispute that all the writ petitioners fell within the 1988 Resolution's category of daily-wage skilled workers (para 7). As they were treated as permanent for payscale, allowances, pension and retirement benefits, the plea that they could not get the increment only because they were daily wagers could not be countenanced; it ignored the Resolution, and the argument that C.P. Mundinamani did not apply to them also failed (para 7). C.P. Mundinamani was applied in M. Siddaraj, and by orders of 06.09.2024 and 20.02.2025 on miscellaneous applications the relief was conditioned: third parties get enhanced pension from 01.05.2023, those who approached a court or tribunal get it for three years before filing under modified clause (d), and excess already paid is not recovered (paras 8-10). The appellants filed in 2022, so modified clause (d) governs them, and its benefit extends to the proforma respondents (para 11). No interest runs on these arrears, as settled in the Vidyut Mandal Pension Samaj order, but authorities who miss the time limits must pay interest from default (para 11).