Supreme Court Ruling on Employment Regularization and Compensation in Public Works Department

On 20th September 2018, the Supreme Court of India delivered a significant judgment in The Chief Engineer (General), Public Works Department & Ors. v. S. Patrajan, a case concerning employment regularization, service benefits, and compensation. The ruling addressed the long-standing dispute over whether an employee engaged as a skilled worker in a government department could claim regularization and back wages after an alleged wrongful termination.

The case was brought before the Supreme Court after an extended legal battle that began in the Madras High Court. The respondent, S. Patrajan, argued that he had served as an NMR Electrical Helper in the Public Works Department (PWD) of Tamil Nadu since 1977. He claimed that his service was abruptly discontinued in 1991 without proper justification, leading him to seek judicial intervention.

Background of the Case

The respondent, S. Patrajan, was working in the Electrical Wing of the Tamil Nadu PWD as a skilled worker for over a decade. However, in October 1990, he alleged that his services were suddenly discontinued, leading him to file a writ petition (W.P. No. 10708 of 1991) before the Madras High Court in July 1991.

In his petition, he sought the following reliefs:

• Reinstatement in service with retrospective effect from 1977.
• Regularization as a permanent employee of the PWD.
• Payment of monetary benefits and full back wages.

Legal Proceedings

Single Judge Order

The Single Judge of the Madras High Court dismissed the writ petition on 8th April 1999, ruling that the respondent should have approached the appropriate forum under the Industrial Disputes Act, 1947. The respondent then filed an intra-court appeal before a Division Bench.

Division Bench Order

The Division Bench of the Madras High Court, in its ruling on 29th October 2008, reversed the decision of the Single Judge. It ordered:

• Reinstatement of S. Patrajan in the PWD.
• Payment of 50% back wages from the date of discontinuation.

The appellants, The Chief Engineer (General), Public Works Department & Ors., challenged this order before the Supreme Court.

Arguments by the Appellants (PWD, Tamil Nadu)

The Tamil Nadu PWD officials, representing the State’s interests, argued:

• The respondent was an NMR (Non-Muster Roll) employee and was never formally appointed to a permanent position.
• His employment was not regularized due to the nature of his job.
• There was no documentary evidence proving that he was continuously employed from 1977.
• The Single Judge was correct in ruling that he should have sought relief under the Industrial Disputes Act.
• The Division Bench’s order granting reinstatement and 50% back wages was legally unsustainable.

Arguments by the Respondent (S. Patrajan)

The respondent’s counsel, led by Senior Advocate K. Radhakrishnan, countered:

• The respondent had worked continuously in the Tamil Nadu PWD for over a decade.
• His service was terminated without notice or justification.
• Other similarly situated workers had been regularized, and he was unfairly denied the same benefit.
• The High Court was correct in ordering reinstatement and back wages.

Supreme Court’s Observations

The Supreme Court, comprising Justice Abhay Manohar Sapre and Justice S. Abdul Nazeer, reviewed the case and found that the respondent had indeed worked for a significant period. However, it also acknowledged:

“At the outset, it was stated by the learned counsel appearing for the parties that the respondent (employee) has long back attained the age of superannuation and, therefore, so far as the direction to reinstate him in service of the PWD is concerned, the same is rendered ineffective.”

The Court further noted:

“It is not in dispute that the respondent was working with the PWD of the State of Tamil Nadu for a long time and rendered his services as a skilled worker from 1977 till 1991.”

Final Judgment

Taking into account the peculiar facts of the case, the Supreme Court held:

“Interest of justice would demand that this appeal is disposed of finally by directing the appellants to pay in lump sum an amount of Rs.1,00,000/- (one lakh) to the respondent in full and final satisfaction of all his claims arising out of this case.”

The Court clarified:

“Once the appellants pay a sum of Rs.1,00,000/- (one lakh) to the respondent, the respondent will have no claim of any nature against the appellants in relation to his services and all the disputes including the one which is the subject matter of this appeal stand decided.”

Impact of the Judgment

The Supreme Court’s decision in this case highlights important principles regarding employment disputes:

• Relief must be practical: Since the respondent had already reached retirement age, reinstatement was not a viable remedy.
• Fair Compensation: The Court ensured that the respondent received a lump sum amount of Rs.1,00,000/- as compensation.
• No Blanket Precedent: The Court specifically stated that this order should not be treated as a precedent for other cases.

This ruling underscores the need for clear employment policies and fair treatment of long-serving contractual workers in public sector employment.

Petitioner Name: The Chief Engineer (General), Public Works Department & Ors..
Respondent Name: S. Patrajan.
Judgment By: Justice Abhay Manohar Sapre, Justice S. Abdul Nazeer.
Place Of Incident: Tamil Nadu.
Judgment Date: 20-09-2018.

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