S. C. AGRAWAL, J. - (1.) SPECIAL leave granted in the SPECIAL Leave Petitions.
(2.) THESE appeals raise the question whether employees who were initially engaged as Project Casual Labour by the Railway Administration and were subsequently absorbed on a regular temporary/permanent post are entitled to have the services rendered as Project Casual Labour prior to 1-1-1981 counted as part of qualifying service for the purpose of pension and other retiral benefits. In sub-para (a) of Para 2501 of the Indian Railway Establishment Manual (hereinafter referred to as 'the Manual'), as it stood at the relevant time, the expression 'Casual Labour' was defined in these terms :- "Casual labour refers to labour whose employment is seasonal, intermittent, sporadic or extends over short periods. Labour of this kind is normally recruited from the nearest available source. It is not liable to transfer, and the conditions applicable to permanent and temporary staff do not apply to such labour." In sub-para (b) of Para 2501 of the Manual casual labour was divided into three categories, namely, (i) staff paid from contingencies except those retained for more than six months continuously, known as Open Casual Labour; (ii) labour on projects, irrespective of duration, known as Project Casual Labour; and (iii) seasonal labour who are sanctioned for specific works of less than six months duration. Persons falling in category (i) who continued to do the same work or other work of the same type for more than six months without a break were to be treated as temporary after the expiry of the period of six months of continuous employ-ment. The said period of six months was subsequently reduced to 120 days. Since the period of service of such casual labour, after their attaining temporary status on completion of 120 days of continuous service, was not counted as qualifying service for pensionary benefits and there was a demand for counting of that period of service for that purpose, the Railway Board, by order dated 14/10/1980, took the following decision :- "As a result of representations from the recognised labour unions and certain other quarters, the Ministry of Railways had been considering the demand that the period of service in the case of casual labour (i.e. other than casual labour employed on projects) after their attainment of temporary status on completion of 120 days continuous service, should be counted as qualifying service for pensionary benefits if the same is followed by their absorption in service as regular railway employees. The matter has been considered in detail in consultation with the Ministry of Home Affairs (Dept. of Personnel and Administrative Reforms) and the Ministry of Finance. Keeping in view the fact that the aforesaid category of employees on their attainment of temporary status in practice enjoy more privileges as admissible to temporary employees such as they are paid in regular scales of pay and also earn increments, contribute to P.F. etc. the Ministry of Railway have decided, with the approval of the President, that the benefit of such service rendered by them as temporary employees before they are regularly appointed should be conceded to them as provided in the Ministry of Finance O.M. No. F. 12(1)-EV/768 dated 14/05/1968. (copy enclosed for ready reference) The concession of counting half of the above service as qualifying for pensionary benefits, as per the O.M. of 14/05/1968 would be made applicable to casual labour on the railways who have attained temporary status. The weightage for the past service would be limited from 1-1-1961 in terms of conditions of the O.M. ibid. Past cases of retirements before the date of this letter will not be re-opened. 2. Daily rated casual labour or labour employed on projects will not however, be brought under the purview of the aforesaid orders."
(3.) PROJECT Casual Labour were left out from the ambit of this order because there was no provision for grant of temporary status to PROJECT Casual Labour. PROJECT Casual Labour had a grievance that, though very large in number, they had no security of service and no protection whatsoever. The said grievance of the PROJECT Casual Labour was raised before this Court in Writ Petitions Nos. 147, 320-69, 459, 4335 of 1985 etc. filed under Article 32 of the Constitution. During the pendency of the said writ petitions before this Court, the Railway Ministry framed a scheme making provision for grant of temporary status to PROJECT Casual Labour on completion of 360 days of continuous service. The said scheme provided as follows :- "5.1 As a result of such deliberations, the Ministry of Railways have now decided in principle that casual labour employed on projects (also known as 'project casual labour') may be treated as temporary on completion of 360 days of continuous employment. The Ministry have decided further as under : (a) These orders will cover : (i) Casual labour on projects who are in service as on 1-1-84; and (ii) Casual labour on projects who, though not in service on 1-1-84, had been in service on Railways earlier and had already completed the above prescribed period (360 days) of continuous employment or will complete the said prescribed period of continuous employment on re-engagement in future. (A detailed letter regarding this group follows). (b) The decision should be implemented in phases according to the schedule given below :- JUDGEMENT_111_5_1998Html1.htm By the judgment dated 18/04/1985 in Inder Pal Yadav v. Union of India, (1985) 3 SCR 837, this Court approved the said scheme but modified the date 1-1-1984 in Para 5.1(a)(i) to 1-1-1981 and as a result there was consequent re-scheduling in absorption from that date onwards. The Court, while accepting the scheme with the modification gave a direction that it must be implemented by re-casting the stages consistent with the change in the date as directed. As per the aforesaid scheme temporary status was conferred on Project Casual Labour with effect from the dates specified therein and on the basis of such temporary status they were also extended the benefit of the order dated 14/10/1980 and the temporary service after attaining the temporary status was counted for pension and other retiral benefits.;