Can work-charged employees with over a decade of service be retrospectively regularized for pensionary benefits despite being on fixed pay and lacking sanctioned posts?

Division Bench affirms Supreme Court precedents and legislative intent under the Nagaland Work-Charged and Casual Employees Regulation Act 2001, overrules W.A. No. 27/2022 as per incurium, and holds that retrospective regularization for pension is available

 

Summary

Category Data
Case Name WA/3/2024 of SHRI PAOLAM Vs THE STATE OF NAGALAND AND 4 ORS
CNR GAHC020000402024
Date of Registration 12-02-2024
Decision Date 02-09-2025
Disposal Nature Disposed Of
Judgment Author HON’BLE MR JUSTICE MRIDUL KUMAR KALITA; HON’BLE MR JUSTICE RAJESH MAZUMDAR
Court Gauhati High Court (Kohima Bench)
Bench Division Bench
Precedent Value Binding authority on subordinate courts; authoritative on retrospective regularization for pension
Overrules / Affirms
  • Overrules W.A. No. 27/2022 (per incurium)
  • Affirms Supreme Court in Secretary, State of Karnataka v. Uma Devi (2006 4 SCC 1) and Prem Singh v. State of U.P. (2019 10 SCC 516)
Type of Law Service law; administrative law; constitutional law (Articles 14 & 16)
Questions of Law
  • Whether a work-charged employee serving over 10 years on fixed pay can be regularized retrospectively for pensionary benefits despite not holding a sanctioned post and contrary executive memoranda.
  • Whether inordinate delay or laches bars relief when no third‐party rights are affected.
  • Whether a coordinate bench decision rendered per incurium must yield to binding precedents and legislative intent under the Nagaland Work-Charged and Casual Employees Regulation Act 2001.
Ratio Decidendi The Division Bench held that the legislative scheme under the Nagaland Work-Charged and Casual Employees Regulation Act 2001 mandating State-drawn absorption schemes cannot be overridden by executive memoranda. A work-charged employee who served continuously for decades, like the petitioner, is entitled as a one-time measure to prospective regularization for pensionary benefits, drawing on Supreme Court rulings (Uma Devi, Prem Singh) that mandate regularization after ten years. Laches was held immaterial where no third-party prejudice arises. W.A. No. 27/2022 was declared per incurium for overlooking prior binding decisions.
Judgments Relied Upon
  • Secretary, State of Karnataka & Others v. Uma Devi (3) & Others, (2006) 4 SCC 1
  • State of Nagaland & Others v. Nishevi Achumi, 2022 SCC Online SC 818
  • State of Manipur & Another v. KSH. Moirangninthou Singh & Others, (2007) 10 SCC 544
  • Prem Singh v. State of U.P., (2019) 10 SCC 516
  • Union of India & Others v. Tukaram Kana Joshi & Others, (2013) 1 SCC 353
  • Ramaswami (State of Nagaland & Ors. v. Ramaswami, W.A. 12(K)/2009, 22.02.2011)
  • State of Manipur & Others v. KSH Ibobal Singh & Another, 1997 (2) GLT 209
  • Tekatemjen Ao v. State of Nagaland & Others, W.A. 22(K)/2013, 2014 (5) GLT 729
  • Jaggo v. Union of India & Others, 2024 SCC Online 3826
Logic / Jurisprudence / Authorities Relied Upon by Court The court applied the discretionary jurisdiction under Article 226 to override procedural bars where no third‐party prejudice exists (Tukaram Kana Joshi; Shiv Das). It emphasized legislative intent of NWC Act 2001 to mandate absorption schemes, struck down executive OM 17/03/2015 to the extent it denied pension. It reaffirmed Uma Devi’s one‐time regularization after ten years and Prem Singh’s condemnation of exploitative long-term temporary engagement. W.A. No. 27/2022 was disregarded as per incurium for failing to follow Ramaswami and Ibobal Singh.
Facts as Summarised by the Court The petitioner was appointed Work-Charged Khalasi on 23.05.1984 and served 35 years on fixed pay until retirement on 24.05.2019. Colleagues and juniors received scale-of-pay and regularization; the petitioner did not. He filed WP(C) 305/2021 under Articles 14 & 16 seeking retrospective regularization at Grade-IV pay scale for pension. The Single Judge dismissed, relying on OM 17/03/2015 eligibility criteria and Uma Devi. The Division Bench allowed intra-court appeal to the extent of pensionary regularization.
Citations
  • GAHC020000402024 2025:GAU-NL:421-DB
  • (2006) 4 SCC 1
  • 2022 SCC Online SC 818
  • (2007) 10 SCC 544
  • (2019) 10 SCC 516
  • 2024 SCC Online 3826
  • 1997 (2) GLT 209
  • 2014 (5) GLT 729

Practical Impact

Category Impact
Binding On All subordinate courts in Assam, Nagaland, Mizoram & Arunachal Pradesh on retrospective regularization for pension
Persuasive For Other High Courts and benches of this Court on absorbing long-term work-charged employees for pension benefits
Overrules W.A. No. 27/2022 (State of Nagaland & Others v. Shri Alemba)
Distinguishes
  • State of Nagaland & Others v. Nishevi Achumi (2022 SCC Online SC 818)
  • State of Manipur & Another v. KSH Moirangninthou Singh & Others (2007 10 SCC 544)
  • Tekatemjen Ao
Follows
  • Secretary, State of Karnataka v. Uma Devi (2006 4 SCC 1)
  • Prem Singh v. State of U.P. (2019 10 SCC 516)
  • Ramaswami (W.A. 12(K)/2009)
  • State of Manipur v. Ibobal Singh

What’s New / What Lawyers Should Note

  • The Nagaland Work-Charged and Casual Employees Regulation Act 2001’s absorption scheme cannot be negated by executive memoranda.
  • A one-time retrospective regularization for pensionary benefits is available to work-charged employees who served over ten years, even if not holding a sanctioned post.
  • Inordinate delay or laches will not bar relief under Article 226 when no third party rights are affected.
  • A coordinate bench decision rendered per incurium may be set aside if it overlooks prior binding decisions.
  • Relief limited to pensionary benefits; no back wages for the pre-regularization period.

Summary of Legal Reasoning

  1. Delay and Laches: Petitioner’s 35-year continuous service and lack of third-party prejudice outweighed technical delay (Tukaram Kana Joshi; Shiv Das; Tarseem Singh).
  2. Legislative Intent: NWC Act 2001 mandates State-drawn absorption schemes; OM 17/03/2015 cannot override statutory scheme.
  3. Supreme Court Precedents: Uma Devi directs one-time regularization after ten years; Prem Singh condemns exploitative long-term temporary engagement and mandates counting qualifying service for pension.
  4. Per Incurium Coordinate Bench: W.A. No. 27/2022 overlooked Ramaswami and Ibobal Singh; declared per incurium and set aside.
  5. Equality and Non-Discrimination: Article 14 & 16 require similarly situated employees to receive similar treatment; petitioner denied what juniors received.
  6. Remedial Scope: Relief confined to prospective pensionary regularization; back wages excluded.

Arguments by the Parties

Petitioner

  • Legislative intent under NWC Act 2001 compels regularization of work-charged employees.
  • OM 17/03/2015 hampering regularization is invalid as it overrides statute.
  • Denial of scale-of-pay and pension to senior petitioner but granted to juniors violates Articles 14 & 16.
  • Supreme Court precedents (Prem Singh; Ibobal Singh) mandate regularization and pension counting.

Respondents

  • Petitioner was a temporary/fixed-pay employee on irregular appointment, not against a sanctioned post.
  • Secretary, State of Karnataka v. Uma Devi bars regularization of temporary workers.
  • OM prohibits scale-of-pay claims for employees retired before 01.01.2020.
  • W.A. No. 27/2022 Alemba, Nishevi Achumi, and Moirangninthou Singh decisions reject such claims.

Factual Background

Shri Paolam was appointed Work-Charged Khalasi in PHED, Phek Division on 23.05.1984 and served on fixed pay for 35 years until retirement on 24.05.2019. Colleagues and juniors received Grade-IV scale pay and regularization; he did not. He filed WP(C) 305/2021 alleging violation of Articles 14 & 16 and seeking retrospective regularization at lowest Grade-IV pay scale for pensionary benefits. The Single Judge dismissed relying on OM 17/03/2015 criteria and Uma Devi; the Division Bench allowed the intra-court appeal to grant pensionary regularization.

Statutory Analysis

  • Nagaland Work-Charged and Casual Employees Regulation Act 2001: empowers State Government to frame absorption schemes for work-charged employees.
  • OM dated 17.03.2015: prescribes eligibility criteria for fixed-pay employees to get scale-of-pay and regularization (representation during service, sanctioned post); held subordinate to statutory scheme.
  • Article 226: discretionary jurisdiction to grant equitable relief despite delay where substantial justice demands, and no third-party prejudice ensues.

Procedural Innovations

  • Clear application of the per incurium doctrine to set aside a coordinate bench decision that overlooked binding precedent.
  • Use of Article 226 discretion to grant one-time pensionary regularization without back wages.
  • Direction to conduct a comparative enquiry of similarly situated employees for equitable relief.

Alert Indicators

  • 🚨 Breaking Precedent – Overrules W.A. No. 27/2022 per incurium
  • ✔ Precedent Followed – Secretary, State of Karnataka v. Uma Devi (2006 4 SCC 1); Prem Singh (2019 10 SCC 516)
  • ⚖️ No Split Verdict

Citations

  • GAHC020000402024 2025:GAU-NL:421-DB
  • (2006) 4 SCC 1 (Secretary, State of Karnataka v. Uma Devi)
  • 2022 SCC Online SC 818 (State of Nagaland v. Nishevi Achumi)
  • (2007) 10 SCC 544 (State of Manipur v. KSH Moirangninthou Singh)
  • (2019) 10 SCC 516 (Prem Singh v. State of U.P.)
  • Jaggo v. Union of India & Others, 2024 SCC Online 3826
  • 1997 (2) GLT 209 (State of Manipur v. KSH Ibobal Singh)
  • W.A. 12(K)/2009 Ramaswami, 22.02.2011
  • W.A. 22(K)/2013 Tecatemjen Ao v. State of Nagaland, 2014 (5) GLT 729

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