Citation: Chhaganbhai Kohyabhai Pateliya & Ors. v. State of Gujarat & Ors., Civil Appeal arising out of SLP (C) No. 26129 of 2025, Supreme Court (Justices Sanjay Kumar and Sanjeev Sachdeva), decided on 06.10.2026 |2026 INSC 1088
Workers who were originally daily wagers but were made permanent for pay, allowances, pension and retirement benefits by a government resolution cannot be denied the benefits that go with permanent status on the ground that they were daily wagers. A retiree is entitled to the notional increment falling due the day after retirement, per C.P. Mundinamani, but the arrears are limited to the three years before the writ petition was filed, with no interest on the arrears unless the authorities delay payment beyond the time fixed.
The Supreme Court has held that Gujarat Irrigation Department workers who began as daily-wage workers but were treated as permanent under a 1988 Government Resolution are entitled to the notional annual increment falling due the day after their retirement. A Single Judge of the Gujarat High Court had granted this to a batch of retirees, who had retired on 30 June of different years and were denied the increment due on 1 July. He relied on the Supreme Court’s C.P. Mundinamani ruling of 2023 and directed that the arrears be paid as well. In an appeal by the State, the Division Bench took a new ground. It held that the workers were daily wagers and not entitled to the benefit meant for regular employees. Justices Sanjay Kumar and Sanjeev Sachdeva reversed this. The State admitted that the workers had served over 30 years and fell within the category of daily-wage skilled workers covered by the Government Resolution of 17 October 1988. That Resolution treated those with ten years’ service as permanent, with the pay scale, allowances, retirement benefits and a superannuation age of 60. The court held that the “daily wager” argument ignored the Resolution and could not stand. It also held that C.P. Mundinamani applied to them. The court then applied its later order of 20 February 2025 (clause (d)), which limits the arrears to the three years before the writ petition was filed, and no interest is payable on arrears unless there is a delay in paying them. Since the appellants filed their petition in 2022, they are covered by this clause. The benefit was also extended to the seven proforma respondents who did not join the appeal. The authorities must work out each person’s amount and pay it within 30 days, failing which 6% interest is payable from then onwards. The Division Bench’s order was set aside.