SERVICE LAW – Casual Labourers (Grant of Temporary Status and Regularisation) Scheme, 1991 – Temporary Status Casual Labourers – Pensionary Benefits – Entitlement despite absence of formal regularisation.
A temporary status casual labourer who, after conferment of temporary status, completed three years of continuous service and became entitled to benefits admissible to temporary Group ‘D’ employees, is entitled to pensionary benefits on superannuation even in the absence of a formal order of regularisation. Paras 75, 76.
Department of Posts – Casual Labourers (Grant of Temporary Status and Regularisation) Scheme, 1991 – Beneficial Scheme – Liberal Interpretation.
The 1991 Scheme is a beneficial and progressive framework intended to gradually integrate casual labourers into the regular service structure by extending service conditions and benefits associated with Group ‘D’ employees. The Scheme cannot be interpreted restrictively so as to defeat its object. Paras 52, 55.
Temporary Status Casual Labourers – Completion of three years’ service – Parity with temporary Group ‘D’ employees.
Upon completion of three years of continuous service after conferment of temporary status, casual labourers are to be treated at par with temporary Group ‘D’ employees and become entitled to all benefits admissible to such employees. The parity contemplated is parity of benefits and service conditions, though not identity of service status. Paras 49, 65, 68, 69.
Pension – Not dependent upon regularisation – Formal regularisation not a condition precedent.
Pensionary entitlement of temporary status casual labourers flows independently from the Scheme and the departmental circular dated 30.11.1992. Formal regularisation is not a condition precedent for entitlement to pension. Paras 57, 75, 76.
Casual Labourers (Grant of Temporary Status and Regularisation) Scheme, 1991 – Clause 6 – Interpretation.
Clause 6, which provides for counting 50% of temporary status service for retirement benefits after regularisation, does not create pensionary entitlement. It merely confers an additional benefit in cases where regularisation occurs. Absence of regularisation cannot extinguish the underlying entitlement to pension. Paras 56, 57.
Departmental Circular dated 30.11.1992 – Expression “such as” – Scope.
The expression “benefits admissible to temporary Group ‘D’ employees such as” employed in the circular dated 30.11.1992 is illustrative and not exhaustive. The benefits listed therein cannot be treated as a closed category. Pensionary benefits available to temporary Group ‘D’ employees are also covered by the parity contemplated under the Scheme. Paras 54, 55.
Temporary Status Casual Labourers – Long and uninterrupted service – Social security benefits.
Employees who have rendered long, continuous and uninterrupted service, have been conferred temporary status and have discharged duties identical to regular employees, cannot be denied pensionary and social security benefits merely because the employer failed to issue formal orders of regularisation. Paras 38, 40, 42.
Article 14 – Equality – State as model employer.
The State cannot continue to extract services of a permanent and continuous nature from employees while denying corresponding service benefits. Such action is contrary to the constitutional mandate of equality and the obligation of the State as a model employer. Paras 39, 40.
Pension – Constitutional status – Property under Article 300A.
Pension is not a bounty or gratuitous payment. It is a vested constitutional right and constitutes property within the meaning of Article 300A of the Constitution. Such right cannot be defeated by administrative inaction or denied on the plea of financial burden. Paras 41, 42, 74.
CCS (Temporary Service) Rules, 1965 – Rule 10(1-B) – Temporary Government Servants – Pension.
Rule 10(1-B) of the CCS (Temporary Service) Rules, 1965 recognises entitlement of temporary Government servants who have rendered not less than ten years of service to superannuation pension, retirement gratuity and family pension under the CCS (Pension) Rules, 1972. Paras 71, 72.
Temporary Status Casual Labourers – Distinction between status and benefits.
Conferment of temporary status does not convert a casual labourer into a temporary Government servant. Nevertheless, after completion of three years’ service under temporary status, the employee becomes entitled to all benefits admissible to temporary Group ‘D’ employees. The distinction that survives is one of nomenclature and mode of regularisation, not of service benefits. Paras 67, 68.
Delay and Laches – Pension claims – Continuing cause of action.
A claim relating to pension constitutes a continuing cause of action and cannot be rejected solely on the ground of delay. However, arrears may be restricted in accordance with settled principles governing service jurisprudence. Para 81.
Pension – Arrears – Limitation.
Though entitlement to pension survives notwithstanding delay, arrears shall ordinarily be confined to three years and two months preceding the institution of proceedings before the Tribunal. Para 81.
Ratio Decidendi
A temporary status casual labourer under the Department of Posts, who after conferment of temporary status completed three years of continuous service and thereby became entitled to benefits admissible to temporary Group ‘D’ employees, is entitled to pensionary and retiral benefits under Rule 10(1-B) of the CCS (Temporary Service) Rules, 1965 even in the absence of formal regularisation. The beneficial Scheme of 1991 and the departmental circular dated 30.11.1992 must be interpreted liberally to extend all benefits available to temporary Group ‘D’ employees, including pension. Administrative failure to regularise an employee cannot defeat a vested pensionary right earned through long years of service. Paras 55–57, 67–75, 76.
Important Principles Summarised
- Pension is a constitutional and statutory right, not a bounty. Paras 41, 42.
- Temporary status employees completing three years' service acquire parity of benefits with temporary Group ‘D’ employees. Paras 49, 65.
- Formal regularisation is not a prerequisite for pension. Paras 57, 75, 76.
- Clause 6 of the Scheme grants an additional benefit and does not restrict pensionary entitlement. Paras 56, 57.
- Pension claims constitute a continuing cause of action. Para 81.
- State cannot rely upon its own failure to regularise employees to deny pensionary benefits. Paras 40, 42, 75.
Cases Referred
- Jagrit Mazdoor Union v. Mahanagar Telephone Nigam Ltd. – followed and relied upon – Paras 34, 43, 55, 56.
- Vinod Kumar v. Union of India – relied upon – Paras 35, 23.
- Jaggo v. Union of India – relied upon – Paras 36, 23.
- Yashwant Hari Katakkar v. Union of India – relied upon – Para 37.
- State of Jharkhand v. Jitendra Kumar Srivastava – relied upon – Paras 41, 74.
- M.L. Patil v. State of Goa – relied upon regarding continuing cause of action – Para 18, 81.
- Indian Council of Agricultural Research v. Santosh – distinguished/not accepted – Para 30.
Bhikhani Devi & Ors. v. Union of India & Ors., Civil Appeal arising out of SLP (C) Nos. 28802-28804 of 2019, decided on 01.06.2026 (Sanjay Karol and Augustine George Masih, JJ.).
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