Judgment

S.C. Agrawal, J.-Special leave granted in the Special Leave Peti­tions.

2. These appeals raise the question whether employees who were ini­tially engaged as Project Casual Labour by the Railway Administration and were subsequently absorbed on a regular temporary/permanent post are entitled to have the services rendered as Project Casual Labour prior to 1.1.1981 counted as part of qualifying service for the pur­pose of pension and other retiral benefits.

3. In sub-para (a) of Para 2501 of the Indian Railway Establishment Manual (hereinafter referred to as ‘the Manual’), as it stood at the relevant time, the expression ‘Casual Labour’ was defined in these terms :-

“Casual labour refers to labour whose employment is seasonal, inter­mittent, sporadic or extends over short periods. Labour of this kind is normally recruited from the nearest available source. It is not liable to transfer, and the conditions applicable to permanent and temporary staff do not apply to such labour.”

4. In sub-para (b) of Para 2501 of the Manual casual labour was divid­ed into three categories, namely, (i) staff paid from contingencies except those retained for more than six months continuously, known as