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2025 Supreme(Guj) 1974

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M. K. THAKKER, J.
Mahuva Nagar Palika Through Chief Officer Sanjaybhai Hathilal Patel – Appellant
Versus
Vitthalbhai Aarjanbhai Bhambhaniya & Ors. – Respondent
R/SPECIAL CIVIL APPLICATION NO. 4591 of 2022 With R/SPECIAL CIVIL APPLICATION NO. 19215, 16606, 17832 of 2021
Decided on : 18-09-2025

Advocates Appeared:
For the Appellant :THAKKAR AND PAHWA ADVOCATES(1357)
For the Respondent: KHUSHBU D CHHAYA(8093) ADITYA DAVDA AGP

Employment law emphasizes the necessity of considering seniority and sanctioned positions in regularization, rejecting claims based solely on length of service.

Headnote:(A) Industrial Disputes Act, 1947 - Section 10 - Regularization of services - Petition challenging Reference Court's award directing regularization of employees as Peons - Employees worked since 01.06.2000, not regularized, entitled to permanency from 01.06.2007 with monetary benefits post 15.12.2016 - Appellant claims issues including lack of posts, qualifications, and financial constraints. (Paras 2, 3, 5, 8)

(B) Employment law - Regularization - Length of service alone does not confer right to regularization; position held in sanctioned setup is requisite for permanency - Reference court's direction to grant notional benefits before date of regularization criticized. (Paras 5, 5.4)

(C) Workmen's rights - Principle of 'equal pay for equal work' argued by respondents - Court considers equitable treatment of seniority in regularization process, emphasizes no juniors should be regularized first. (Paras 6, 7.2)

Facts of the case:
Employees filed petitions for regularization after over a decade of temporary service; Court directed the employer to grant permanent status considering vacancies, yet issues of prior regularization of juniors and financial constraints were raised.

Findings of Court:
Court reiterated the need for consideration of seniority and fairness in the regularization process, ruling on the potential inequity in the case.

Issues: The main issues addressed included the justification of regularizing certain employees over others, financial implications, and whether the length of service sufficed for permanency.

Ratio Decidendi: The court emphasized that while length of service matters, the position within the sanctioned setup and consideration of seniority must prevail to avoid arbitrariness in regularization.

Result: The petitions are partly allowed.

Table of Content
1. challenge of regularization of employment. (Para 1 , 2 , 3)
2. arguments against granting permanency. (Para 4 , 5)
3. respondents argue against unfair labor practices. (Para 6)
4. court's analysis of fairness in regularization. (Para 7)
5. petition partly allowed. (Para 8)

JUDGMENT :

M. K. THAKKER, J.

1. Since the issue raised in these petitions are similar, they are being decided by a common judgment. The facts of Special Civil Application No.16606 of 2021 are taken for the purpose of adjudication.

2. The present petition is filed challenging the award passed by the learned Reference Court dated 05.04.2021, whereby directions were issued to the present petitioner to grant the benefit of regularization on the post of Peon.

3. It is the case of the present petitioner that the dispute was raised before the learned Industrial Court, seeking regularization on the post of Peon or any equivalent post. As per the statement of claim, the respondents have been working since 01.06.2000 and though they had completed 10 years of service, they have not been regularized neither granted the benefit of permanency. The learned Reference Court, considering the submissions made by the learned advocates for the respective parties, has partly allowed the reference in favor of the respondent by granting the benefit of permanency on the post of Peon from 01.06.2007 onwards. It was also directed to consider the period from 01.06.2000 to 15.12.2016 as a notional. However, the terminal benefits were directed to be paid from 01.06.2000 and the monetary benefits were directed to be paid from 15.12.2016.

4. Heard learned advocate Ms. Sangeeta Pahwa for the petitioner employer and learned advocate Ms. Khushbu Chhaya for the respondent employee.

5. Learned advocate Ms. Pahwa, appearing on behalf of the petitioner–Nagarpalika, submits that the benefit of permanency cannot be granted, relying upon the decision of the Apex Court in Maharashtra State Road Transport Corporation & Others v. Casteribe Rajya Parivahan Karmachari Sanghatana reported in (2009) 8 SCC 556 , it is contended that there are total 8 posts of peon are vacant in the sanctioned setup. However, out of which, 3 posts are of peons, 2 posts are of ward peon, 2 posts are of peon for animal husbandry and 1 post of office peon. However, the respondent was not working under any of the sanctioned categories. It is also submitted by learned advocate Ms.Pahwa that admittedly, no juniors to the respondent workmen has been regularized. It is further submitted that mere continuation in service or length of service does not confer a right to regularization, as held by the Apex Court in Hari Nandan Prasad v. Employer I/R to Mangmt.of FCI & Anr. reported in (2014) 7 SCC 190. Learned advocate Ms.Pahwa submits that the Tribunal committed an error in granting notional benefits such as seniority, pensionary benefits and gratuity from 01.06.2000, even though regularization was ordered only from 01.06.2007. Learned advocate Ms.Pahwa submits that when regularization is granted from a specific date, no retrospective financial or service benefits prior to that date can be granted.

5.1 Learned advocate Ms.Pahwa submits that the reliance was placed on the evidence of Mr.Jignesh Rashmikant Shah who was regularized after seven years pursuant to the order passed by the learned Tribunal, without appreciating the fact that the said wager was appointed as a Clerk in Class III cadre on compassionate ground upon death of his father who was serving as an Accountant in the petitioner Nagarpalika. Without appreciating this factual distinction, the Tribunal wrongly extended similar benefits to the respondent–workman. Learned advocate Ms.Pahwa submits that it is settle position of law that when the post is available in the set up and the workers are working since many years, the benefit of permanency can be granted. However, in the present case, no juniors to the present respondents were regularized, therefore, the benefit o

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