High Court Allows Petition for Second Higher Pay Scale Benefits to Employees Despite Delay. Accrued Rights Under Government Resolution Created Continuous Cause of Action and Denial Violated Fundamental Rights, Making Delay/Laches Inapplicable as Precedent Covered Identical Issues.

High Court: Gujarat High Court Bench: AHEMDABAD
  • 5
Judgement Image
Font size:
Print

Case Note & Summary

The dispute involved employees of Gujarat Maritime Board seeking second higher pay scale benefits under Government Resolution dated 02.07.2007. The petitioners were appointed as Khalasis between 1976-1979, promoted to Seamen between 1977-1981, and granted first higher pay scale under Government Resolution dated 16.08.1994. Under Clause 4(B) of the 2007 Resolution, they claimed second higher pay scale after completing 15 years from their first higher pay scale. The respondent Board denied benefits through letters dated 19.10.2011 and 03.12.2011, arguing petitioners had already received one promotion and one higher pay scale. The petitioners approached the High Court after similar cases were decided in favor of employees. The core legal issues were whether delay barred the petition and whether petitioners were entitled to benefits. The petitioners argued their case was identical to precedent where similarly situated persons received benefits after litigation up to the Supreme Court. The respondent opposed on grounds of 12-year delay from when rights accrued in 2010. The court analyzed that the accrued right under government resolutions created a continuous cause of action, making delay irrelevant. It further held denial violated fundamental rights, so principles of delay/laches could not rescue the state, citing Basheshwar Nath. The court found petitioners' case squarely covered by the precedent in Keshubhai Vashrambhai Bhuva, where identical issues were decided favorably and confirmed up to the Supreme Court. While noting petitioners approached late, the court declined to restrict benefits because similarly situated persons had received full benefits without restriction. The court allowed the petition, directing grant of second higher pay scale with all consequential benefits.

Headnote

A) Service Law - Pay Scale Benefits - Accrued Rights and Continuous Cause of Action - Government Resolution dated 02.07.2007 - Petitioners claimed second higher pay scale after completing 15 years from first higher pay scale under Clause 4(B) - Court held denial constituted continuous cause of action, making delay irrelevant as right accrued from Government Resolutions (Paras 12-13).

B) Constitutional Law - Fundamental Rights - Violation and Delay/Laches - Constitution of India - Petitioners' entitlement to second higher pay scale was a fundamental right - Court held when state action violates fundamental rights, principles of estoppel, waiver, delay/laches cannot rescue the state, citing Basheshwar Nath v. Commr. of Income-tax (Paras 14).

C) Service Law - Pay Scale Benefits - Similar Situations and Precedent - Government Resolution dated 02.07.2007 - Petitioners' case identical to Keshubhai Vashrambhai Bhuva where similarly situated persons granted benefits - Court held petitioners entitled to same relief as precedent confirmed up to Supreme Court (Paras 15-16).

D) Civil Procedure - Delay and Laches - Restriction of Benefits - Code of Civil Procedure, 1908 - Petitioners approached court 12 years after right accrued - Court noted could restrict arrears to three years prior to filing but declined due to similar persons receiving full benefits without restriction (Para 17).

Issue of Consideration: Whether the petitioners are entitled to second higher pay scale under Government Resolution dated 02.07.2007 despite delay in filing petition, and whether their case is covered by precedent

Final Decision

Petition allowed. Rule made absolute. Respondents directed to grant petitioners benefit of second higher pay scale of Rs. 5200-20,200 (GP-1800) from due date with all consequential benefits including arrears, consequential fixation of pay and pension with appropriate revision along with interest. Costs made easy.

2026 LawText (GUJ) (01) 540

R/Special Civil Application No. 2154 of 2018

2026-01-22

Honourable Mr. Justice Maulik J. Shelat

2026:GUJHC:5138

Ms. Harshal N Pandya for Petitioners, Ms. Dharmistha Raval for Mr. Nikunt K Raval for Respondent No.1

Ghanshyam Parshottambhai Dabhi & Ors.

Gujarat Maritime Board & Anr.

Nature of Litigation: Special Civil Application under Article 226 of Constitution of India for pay scale benefits

Remedy Sought

Petitioners sought direction to respondent authority to grant second higher pay scale under Government Resolution dated 02.07.2007 with consequential benefits including arrears, pay fixation, pension revision, and interest

Filing Reason

Respondent denied second higher pay scale through letters dated 19.10.2011 and 03.12.2011, while similarly situated persons received benefits after court orders

Previous Decisions

Coordinate Bench allowed similar petitions in Keshubhai Vashrambhai Bhuva case on 16.01.2020, affirmed by Division Bench on 09.09.2020, and Supreme Court dismissed SLP on 08.02.2021; another set of petitions allowed on 08.02.2022

Issues

Whether delay in filing petition bars relief for second higher pay scale Whether petitioners are entitled to second higher pay scale under Government Resolution dated 02.07.2007

Submissions/Arguments

Petitioners argued case identical to precedent where similarly situated persons granted benefits after litigation up to Supreme Court Respondent opposed on ground of 12-year delay from accrual of right in 2010

Ratio Decidendi

Accrued rights under government resolutions create continuous cause of action; delay/laches not applicable when fundamental rights violated; similarly situated persons must receive equal treatment; estoppel/waiver/delay cannot rescue state when action violates fundamental rights.

Judgment Excerpts

the petitioners have prayed for holding and directing the respondent authority to grant the petitioners the benefit of second higher pay scale the aforesaid right being an accrued right, the denial of aforesaid right to the petitioners, all throughout would constitute a continuous cause of action when the impugned action of the respondent - State is found to be violative of the fundamental right of the citizen - petitioner, the principle of estoppel, waiver, delay/laches etc. would not come to the rescue of the State

Procedural History

Petition filed in 2018; during pendency, similar petitions decided on 16.01.2020; respondent appealed to Division Bench, dismissed on 09.09.2020; respondent filed SLP in Supreme Court, dismissed on 08.02.2021; another set of petitions allowed on 08.02.2022; present petition heard on 22.01.2026

Related Judgement
High Court High Court Allows Petition for Second Higher Pay Scale Benefits to Employees Despite Delay. Accrued Rights Under Government Resolution Created Continuous Cause of Action and Denial Violated Fundamental Rights, Making Delay/Laches Inapplicable as Prec...
Related Judgement
High Court High Court Partly Allows Municipality's Petition in Industrial Dispute by Modifying Labour Court Award - Replaces Reinstatement with Lump Sum Compensation. The Court held that considering intermittent service, illegal appointment, and lack of sanctio...