No Parity Can Be Claimed Based On Regularization Of Services Made In Earlier Years : Supreme Court

The Supreme Court observed that the date from which regularization of services has to be granted is is a prerogative of the employer and that no parity can be claimed based on regularization made in respect of earlier years.

Some employees of Ajmer Vidhyut Vitran Nigam Ltd. approached the Rajasthan High Court seeking regular pay scale with effect from 01.04.1983 instead of 01.04.1989 by contending that they should be brought at par with those employees who had been fixed at the regular pay scale. The High Court allowed this writ petition, against which the employer approached the Apex Court.

The bench comprising Justices  S. Abdul Nazeer and Krishna Murari observed that the date of regularization and grant of pay scale is a prerogative of the employer/screening committee and no parity can be claimed in the matter of regularization in different years. Referring to Jodhpur Vidyut Vitran Nigam Ltd. V. Nanu Ram and Others,the court

It is the settled position that the date from which regularization is to be granted is a matter to be decided by the employer keeping in view a number of factors like the nature of the work, number of posts lying vacant, the financial condition of the employer, the additional financial burden caused, the suitability of the workmen for the job, the manner and reason for which the initial appointments were made etc. The said decision will depend upon the facts of each year and no parity can be claimed based on regularization made in respect of the earlier years.

The bench, allowing the appeal, observed that the High Court was not justified in directing payment of arrears and in fixing the grant of regular pay-scale w.e.f. 01.04.1983.

Service Law - Regularization - The date from which regularization is to be granted is a matter to be decided by the employer keeping in view a number of factors like the nature of the work, number of posts lying vacant, the financial condition of the employer, the additional financial burden caused, the suitability of the workmen for the job, the manner and reason for which the initial appointments were made etc. The said decision will depend upon the facts of each year and no parity can be claimed based on regularization made in respect of the earlier years. (Para 9-12)

Summary: Appeal against High Court order which allowed writ petition filed by few employees claiming parity in date of regularization- Allowed - date of regularization and grant of pay scale is a prerogative of the employer/screening committee and no parity can be claimed in the matter of regularization in different years. 

Case details

Managing Director, Ajmer Vidhyut Vitran Nigam Ltd., Ajmer vs Chiggan Lal | 2022 LiveLaw (SC) 296 | CA 1875 OF 2022 | 7 March 2022

Coram: Justices S. Abdul Nazeer and Krishna Murari