Punjab and Haryana High Court Upholds Pension Rights for Daily Wage Workers

Court Directs Counting of Daily Wage Service for Pension and Imposes Costs on Municipal Authorities for Delay

In a significant judgment, the Punjab and Haryana High Court has ruled in favor of a retired municipal worker, Dilbagh Singh, directing that his service rendered on a daily wage and work charge basis should be counted towards his qualifying service for pension. This decision aligns with the established legal precedents set by cases such as Kesar Chand v. State of Punjab and Harbans Lal v. The State of Punjab, which recognize the rights of workers to have their entire service tenure, including periods of non-regular employment, considered for pension benefits.

The petitioner, Dilbagh Singh, who served as a Pump Operator on a daily wage basis starting from August 21, 1988, and was later regularized as a Helper in 1991, retired on October 30, 2024. Despite having served for over 36 years, Singh was not granted his full retiral benefits, prompting him to seek legal recourse. The Court criticized the Municipal Council of Gurdaspur for failing to apply the law appropriately, as their denial was based solely on legal advice without a reasoned analysis, which the Court deemed arbitrary and unsustainable.

Justice Harpreet Singh Brar emphasized the necessity for speaking orders that clearly demonstrate the logical application of relevant factors, highlighting the importance of transparency and accountability in administrative decisions. The judgment underscored that the absence of cogent reasons in decision-making undermines justice and transparency.

Moreover, the Court addressed the undue delay in disbursing retiral benefits, which it stated causes significant financial distress to retirees and violates their right to a dignified life. As a corrective measure, the Court ordered the Municipal Council to pay interest on the delayed benefits and imposed a cost of Rs.50,000 on the respondents for the unnecessary delay. The judgment also encouraged the fixing of responsibility for the delay on the erring officials.

In a broader directive, the Court called upon the administrative authorities of Punjab, Haryana, and Chandigarh to ensure the issuance of speaking orders in service-related matters to avoid unnecessary litigation. This move aims to reinforce the principles of fairness and transparency in administrative processes, ensuring justice is both done and seen to be done.

This ruling is a landmark for daily wage workers across the region, reaffirming their rights to pension benefits and setting a precedent for the treatment of non-regular service periods in retirement calculations.

Bottom Line:

Service law - Counting of service rendered on daily wage/work charge basis prior to regularisation for retiral benefits is permissible as per law laid down in cases of Kesar Chand v. State of Punjab and Harbans Lal v. The State of Punjab. Speaking orders are essential to good administration and ensure transparency, accountability, and fairness.

Statutory provision(s): Article 226/227 of the Constitution of India, Rule 3/17A of the Punjab Civil Services Rules

Dilbagh Singh v. State of Punjab, (Punjab And Haryana) : Law Finder Doc Id # 2816335