Daily wagers' entitlement to pay-scale benefits accrues from the date of the judicial reinstatement award.

The respondent-workmen were terminated from service, leading to a dispute before the Labour Court. By an award dated 22.03.2000, the Labour Court directed their reinstatement as new daily wagers while denying backwages and continuity of service.

The State’s challenge to this award (SCA No. 4569 of 2021) was dismissed.

Consequently, the workmen were re-employed on 17.01.2007.

The workmen subsequently filed a writ petition seeking benefits under the Government Resolution (GR) dated 17.10.1988, arguing they should be treated as in service from the date of the award (22.03.2000).

The learned Single Judge partially accepted the claim, directing the State to grant benefits from 22.03.2000, while deducting wages already paid under Section 17B for the period they were out of service (2000–2007).

The State preferred this Letters Patent Appeal against the Single Judge's order.

Whether the workmen are entitled to the benefits of the Government Resolution dated 17.10.1988 calculated from the date of the Labour Court’s award (22.03.2000) despite their actual physical reinstatement occurring only in 2007

Whether the adjusted monetary benefits, accounting for the waiver of actual pay during the litigation period, are legally sustainable

Government Resolution (GR) dated 17.10.1988, which mandates that daily wagers are entitled to a fixed pay-scale upon completion of five years of service and a regular pay-scale upon completion of ten years of service.

Principles of Section 17B of the Industrial Disputes Act, 1947, regarding the payment of last drawn wages during the pendency of proceedings in higher courts.

The Court observed that since the termination was set aside and reinstatement was ordered effective from the award date (22.03.2000), the respondents' eligibility for benefits under the GR dated 17.10.1988 must be computed from that date.

Consequently, the five-year requirement for fixed pay was met by 22.03.2005, and the ten-year requirement for a regular pay-scale was met by 22.03.2010.

The Court found the State’s appeal lacked merit because the delay in physical reinstatement (until 2007) could not deprive the workmen of benefits flowing from the original award.

However, to resolve the matter, the workmen voluntarily waived their claim to actual backwages for the period between 23.03.2000 and 15.01.2007, agreeing to adjust the Section 17B wages already received against their entitlement.

The Court accepted the State’s revised computation of arrears based on this concession.

Specifically, Shri Lalabhai Hajurbhai Maliwad is to receive Rs. 22,58,940/-, Shri Ratabhai Bhemabhai Maliwad Rs. 13,10,156/-, and Shri Nanabhai Bhagwanbhai Maliwad Rs. 26,96,996/-.

The Court further held that retired workmen are entitled to all applicable retirement benefits.

The connected contempt and miscellaneous applications were disposed of, with liberty reserved for the workmen to initiate fresh contempt proceedings if the order is not complied with.