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Rajesh Pravinchandra Rajyaguru v. Gujarat Water Supply and Sewerage Board

Civil Appeal · 2021 INSC 917Decided 17 Dec 2021
Civil Appeal No. 7578 of 2021
Dr. Justice D.Y. Chandrachud · Justice M.R. Shah

Background

Daily-rated employees of the Gujarat Water Supply and Sewerage Board had won a writ petition before a Single Judge of the Gujarat High Court, who held they were entitled to a specific pay scale (and later Pay Commission revisions) after completing 10 years of service, based on old Government Resolutions from 1991 and 1992. The Board appealed, and a Division Bench of the High Court reversed the Single Judge and set aside those benefits. The employees then appealed to the Supreme Court.

Decision Breakdown

The Supreme Court dismissed the appeals, holding that the Board's employees were not automatically entitled to the pay benefits under the 1991 and 1992 Government Resolutions, since those benefits had been granted to them only due to an administrative mistake by certain zonal offices which was later corrected elsewhere, and withdrawing a mistaken benefit was not discriminatory under Article 14. The Court also held that the employees could not claim parity with State Government employees, since Board employees and Government department employees stand on a different footing, distinguishing the precedent relied on by the employees. However, the Court clarified the employees would continue to receive benefits under an earlier, validly-applicable 1988 Resolution.

Lesson Learnt

A pay benefit granted to government or public-sector employees by administrative error does not create a permanent, enforceable right: if the mistake is later corrected uniformly, affected employees cannot claim it as a continuing entitlement or as discrimination under Article 14.

Official source (sci.gov.in)View Judgment (PDF)

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