In Bihar State Rajya Path Parivartan Nigam Karamchari Sangathan vs. The State of Bihar & Ors. (2026), after the lapse of a period of three months from the date of its judgement dated May 22, 2026, Supreme Court's Division Bench of Justices Vikram Nath and Aparesh Kumar Singh passed a 2-page long order dated October 26, 2026, wherein it has directed that if compliance affidavit is not filed before December 14, 2026, the Chief Secretary of the State
of Bihar shall remain present before the Court. If the
compliance is made, the personal presence would not
necessary. The State prayed for six weeks’ time to
ensure compliance of the directions as contained in
judgment dated May 22, 2026. Earlier, on September 25, 2026, the State had prayed for four weeks’
time to file status report. Prior to that Court's direction dated May 22, 2026 reads; "The State of Bihar shall file a compliance
affidavit by 31st August, 2026. List on 1st September,
2026 for perusal of the said compliance affidavit."
In its final order dated May 22, 2026, Supreme Court has concluded: 23. The plea of financial incapacity, raised by the
Corporation and State of Bihar, cannot be permitted
to defeat the legitimate and equitable claims of the
workmen, particularly when the inability of the
Corporation to implement the second phase of
regularization was neither attributable to any fault on
the part of the workmen nor within their control. The
concerned workers had devoted the most productive
years of their service career to the Corporation with a
legitimate expectation that the settlement entered
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into pursuant to the directions of this Court would be
honoured in its true letter and spirit.
24. Prolonged denial of fair and reasonable
compensation to the concerned workmen has
resulted in grave injustice, especially when many of
them have either attained advanced age or are no
longer in a position to secure alternative means of
livelihood. In such circumstances, the perceived
reference to the alleged financial distress of the
Corporation cannot constitute a valid ground to deny
the affected workmen just, fair and equitable
monetary relief. The Corporation being an entity
under the pervasive control of the State of Bihar, the
latter is under a moral, legal and constitutional
obligation to satisfy and indemnify the legitimate
claims of the destitute workers.
25. In view of the aforesaid discussion, and upon
balancing the competing considerations arising in
the present matter, including the prolonged service
rendered by the concerned workmen on the one hand
and the precarious financial condition of the
Corporation on the other, we deem it appropriate to
direct the State of Bihar to pay a lump sum amount
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of Rs. 7,50,000/- (Rupees Seven Lakh Fifty Thousand
only) to each of the 330/338 members of the
appellant-Union towards full and final settlement of
their claims. The State of Bihar shall ensure that the
aforesaid amount is disbursed to the concerned
members of the appellant-Union within a period of
three months from today.
26. Accordingly, the impugned judgment and order
is set aside and the appeal is allowed.
27. Pending application(s), if any, shall stand
disposed of.
28. The State of Bihar shall file a compliance
affidavit by 31st August, 2026. List on 1st September,
2026 for perusal of the said compliance affidavit. 26. Accordingly, the impugned judgment and order
is set aside and the appeal is allowed." The impugned judgement was authored by Justice Rajiv Roy as part of a Division Bench.
The other four respondents are: 2.The Principal Secretary, Transport Department, Bihar, 3. The Bihar State Road Transport Corporation, through its Managing Director, 4. The Administrator, Bihar State Road Transport Corporation and 5. The Labour Commissioner, Bihar.
In Bihar State Rajya Path Parivartan Nigam Karamchari Sangathan vs. The State of Bihar & Ors. (2026), Supreme Court's Division Benc of Justices Vikram Nath and Sandeep Mehta granted leave by its 11-page long final order dated May 22, 2026. The appellant, Bihar State Rajya Path
Parivahan Nigam Karamchari Sangathan had approached the Court by way of the instant appeal,
by special leave under Article 136 of the Constitution of India, assailing the judgment dated October 5, 2023 authored by Justice Rajiv Roy as part of the Division Bench of the Patna High Court. By the impugned judgment
and order, Justice Roy dismissed the appeal
filed by the appellant-Union and declined to interfere
with order dated 2nd April, 2018 passed by Justice Ashwini Kumar Singh the Single Judge in Civil Writ Jurisdiction Case
No. 12436 of 2017, whereby the writ petition
instituted by the appellant-Union came to be
dismissed. The said writ petition had been filed
seeking quashing of the order dated 23rd September,
2016 passed by the Labour Commissioner, Bihar.
4. The appellant-Union is a registered union
espousing the cause of the workmen who had been
engaged by the Bihar State Road Transport
Corporation3 on casual/ad-hoc basis during the
period between the years 1980 and 1985. At the
relevant point of time, the appellant-Union
represented approximately 925 such workmen who
2 Hereinafter, referred to as “High Court”.
3 Hereinafter, referred to as “Corporation”.
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had been continuously discharging duties under the
Corporation for several years.
The grievances of the aforesaid workmen first
came to be considered in proceedings culminating in
Civil Appeal No. 1509 of 1987 before the Supreme Court,
wherein the Court vide order dated December 16,
1987 directed the Corporation to frame an
appropriate scheme for regularization of the
concerned casual labourers and to ensure payment
of wages to them at par with regular employees with
effect from 1st January, 1987. Pursuant to the directions of the Court, a settlement/agreement dated July 11, 1988
came to be executed between the management of the
Corporation and the appellant-Union, whereby it was
agreed that the process of regularization would be
undertaken in two phases. In terms of the first phase of the aforesaid
settlement, 425 conductors/clerks and 162 casual
helpers came to be regularized in service. However,
the remaining approximately 500 workmen, who
were to be considered in the second phase of
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regularization, were never absorbed into regular
service, despite rendering long and continuous
service under the Corporation. The implementation of the second phase of
regularization could not materialize on account of the
deteriorating financial condition of the Corporation.
Owing to the mounting financial crisis, the
Corporation progressively curtailed the engagement
of casual labourers and, by the year 1995, the
availability of work for such employees had
substantially diminished. Ultimately, by order dated September 2, 2009,
the services of the remaining workmen were
dispensed with on the ground of severe financial
crisis and inability of the Corporation to sustain their
engagement.
Being aggrieved by the aforesaid action, the
concerned workmen and the appellant-Union
initiated various legal proceedings challenging the
termination/removal of the workmen from service.
However, the reliefs sought by the appellant-Union
did not find favour before the Courts concerned. Thereafter, the matter reached the Supreme Court in
Special Leave Petition (C) No. 22998 of 2010, wherein
the Court, while taking note of the prolonged service
rendered by the workmen as well as the inability of
the Corporation to implement the settlement dated July 11, 1988, observed that the issue may
appropriately be resolved through determination of a
one-time settlement in lieu of regularization.
Accordingly, the Labour Commissioner, Bihar, was
directed to examine the matter and determine
suitable compensation payable to the concerned
workmen. Pursuant thereto, the Labour Commissioner,
Bihar, passed an order dated September 23, 2016
directing payment of lump sum compensation to the
concerned workmen while treating the matter as one
of retrenchment under the Industrial Disputes Act,
1947. However, according to the appellant-Union, the
amounts so determined ranged merely between
Rs.10,000/- and Rs. 55,000/- approximately, despite
the fact that several workmen had rendered nearly 19
years of continuous service under the Corporation.
The appellant-Union challenged the aforesaid
order dated September 23, 2016 and consequent
determination of the aforesaid amounts, on the
ground that the compensation awarded was wholly
illusory, arbitrary and shockingly inadequate, having
no reasonable nexus with the length of service
rendered by the workmen, the legitimate expectations
arising from the settlement dated July 11, 1988,
and the repeated assurances extended over the years
regarding their absorption in regular service. The challenge raised by the appellant-Union,
however, came to be rejected by the Single
Judge of the High Court in Civil Writ Jurisdiction
Case No. 12436 of 2017, and the Letters Patent
Appeal preferred against, being LPA No. 593 of
2018, was also dismissed by the Division Bench
of the High Court vide the impugned judgment and
order dated October 5, 2023. Being aggrieved, the appellant-Union approached the Supreme Court by way of appeal by special leave.
The counsel for the appellant-Union submitted that Justice Roy of the High Court, while passing the impugned judgment, failed to appreciate that the controversy
before it was no longer confined to the issue of
regularization, which had attained finality in earlier
proceedings, but rather pertained to the fairness,
adequacy and reasonableness of the one-time
settlement and compensation determined pursuant
to the directions issued by this Court. It was submitted that the appellant-Union is
presently espousing the cause of approximately
330/338 surviving members/workmen, many of
whom had devoted prime years of their working lives
in service of the Corporation without being accorded
the status and benefits of regular employees.
It is pertinent to note that during the course of
present proceedings i.e., February 16, 2026, the Supreme Court observed that "payment of a lump sum
amount of Rs. 10 lakhs to each of the affected
workmen may constitute a fair and reasonable
settlement in the peculiar facts and circumstances of
the case." However, this proposal was opposed by the counsel appearing on behalf of the Corporation as well as the State of Bihar on the
ground that the financial condition of the
Corporation continues to remain extremely
precarious and burdened with substantial
accumulated losses, thereby rendering it incapable of
bearing any further financial liability.
Justice Nath observed: "The controversy involved in the present matter
cannot be examined in a purely technical or
adversarial manner. The case pertains to a group of
workmen who had continued in service of the
Corporation for a considerable length of time
pursuant to arrangements and assurances extended
by the employer itself and whose claims have
remained unresolved for decades despite repeated
rounds of litigation and intervention by this Court.
22. In the aforesaid backdrop, we are of the
considered view that the stand adopted by the
Corporation and the State of Bihar is wholly untenable in facts and law and contrary to the
Fundamental Right to Life guaranteed under Article
21 of the Constitution of India. The workmen
represented by the appellant-Union had rendered
long, continuous and uninterrupted service to the
Corporation and had continued to discharge duties
against perennial and regular nature of work. Despite
the settlement dated 11th July, 1988 and the
assurances regarding their absorption, the
concerned workmen were ultimately denied the
benefits of regularization and were left remediless for
several years."
Earlier, in its 18-page long judgement dated October 5, 2023, Patna High Court's Division Bench of Chief Justice K. Vinod Chandran and Justice Rajiv Roy had dismissed the LPA and upheld the 13-page long judgement dated April 2, 2018 by Justice Ashwani Kumar Singh. Justice Roy had authored the Division Bench judgement. Justice Singh had granted "liberty to the petitioner to challenge the order passed by the Commissioner of Labour in accordance with law before the appropriate forum."
The appellant-Union is representing the casual workers engaged in the Bihar State Road Transport Corporation. The case as narrated by the appellant is that altogether 925 persons were appointed in ‘the Corporation’ on the casual basis prior to 1985. Out of them, 425 were regularized in the first phase subsequent to the settlement arrived at in the year 1988, but the remaining 500 members who were supposed to be taken in the second phase were not considered by ‘the Corporation’.
The first round of litigation started in the year 1985 when the petitioner-Union approached this Court by filing writ application bearing CW.J.C No. 3460 of 1985 with the prayer for regularization of their services. The said writ application was dismissed vide an order dated September 2, 1985. Against the said order of dismissal, Civil Appeal no. 1509 of 1987 was preferred before the Supreme Court of India. It was disposed of on December 16, 1987 with three fold directions:
a) to prepare reasonable scheme for the regularization of casual employees who have been working for more than a year;
b) the salaries and allowances be paid to them at par with the minimum pay in the pay scale of regularly paid employees in the corresponding cadres of the Corporation;
c) to pay all the arrears payable pursuant to the order.
Subsequent to the said order, a Review petition (C) no. 381/1988 was preferred by respondents. However, side by side the respondent authorities also took steps for an amicable settlement with the petitioner-Union and finally they entered into an agreement/settlement on July 11, 1988 whereby it was agreed to regularize 425 casual labourers in the first phase. In view of the compromise arrived at between the parties, Supreme Court declined to interfere/entertain the review application and disposed it of on October 30, 1990. However, as the respondents failed to act further, a letter was sent by the Union to the then the Chief Justice, Patna High Court. It came to be registered as CWJC No. 973 of 1993 which was disposed of vide an order dated February 21, 1994 directing the respondents to implement the order of Supreme Court in four months. The SLP preferred by the State Government against the order dated February 21, 1994 was also dismissed by the Supreme Court. However, as no regularization process took place and ‘the Corporation’ vide an order dated September 2, 2009 instead decided for the removal of the casual workers w.e.f September 10, 2009 citing its financial condition. The claim of the petitioner-Union is/was that till then, work was being taken by ‘the Corporation’ intermittently and they were not permanently disengaged at any point of time. Being aggrieved with the said order dated September 2, 2009, C.W.J.C No. 12926 of 2009 was preferred before Patna High Court. It was disposed of vide an order dated October 6, 2009 with the observations/directions that ‘the Corporation’ will look into the aspect that no statutory mandate is violated and if any person claims that they have been paid less than the Minimum Wages Act, then it would be open for them to raise those claims and ‘the Corporation’ would be bound to consider the same. The other observations given by the Writ Court against the removal was that it would be open for the employees to take steps under the Industrial Dispute Act. Aggrieved by the said order dated October 6, 2009 passed in C.W.J.C No. 12926 of 2009, the appellant -Union filed LP.A no. 1412 of 2009 which too came to be dismissed vide an order dated April 8, 2010. Against the said order dated April 8, 2010 passed in LP.A No. 1412 of 2009, appellant-Union preferred SLP (Civil) No. 22998 of 2010. It was disposed of on February 16, 2015/February 16, 2015 with the observation that appellant may approach the Commissioner of Labour for settlement of their claims. Thereafter, the appellant-Union filed Contempt Petition (Civil) no. 481 of 2016 before the Supreme Court as respondents were not taking steps towards the compliance of order dated February 16, 2015/March 16, 2015 passed in SLP (Civil) No. 22998 of 2010. During the pendency of contempt application, Commissioner of Labour, Bihar Patna passed the impugned order dated September 23, 2016 with the direction to retrench the members of appellant-Union under 25 N(A) of Industrial Disputes Act with following observations:
(i) the dues payment will be made in accordance with the Minimum Wages Act as fixed by the Bihar Government;
(ii) Gratuity amount will be paid in terms of payment of Gratuity Act, 1972.
Thereafter the contempt application taken up was directed to be closed by the Supreme Court vide an order dated July 17, 2017 after taking note of the said order dated September 23, 2016 passed by Labour Commissioner with further observation: It would be open for the petitioner to challenge the order passed by the Commissioner of Labour in accordance with law. The appellant-petitioner thereafter moved in writ
petition before the Patna High Court with the following prayers:
i) to issue writ in the nature of certiorari to quash memo no. 3/D- 39/2015-310 dated 23.09.2016 passed by the Labour Commissioner, Bihar (respondent no 5) in an arbitrary manner and misconstruing/misinterpreting the order dated 16.02.2015 read with order dated 16.03.2015 passed by Hon'ble Apex court in Special Leave to Appeal (C) no. 22998/2010 by invoking section 25 N (a) of the Industrial Dispute Act to retrench them and further prayer to make payment of due amount on the basis of minimum wages fixed by Bihar Government.
ii) to issue writ to quash the newspaper publication issued by ‘the Corporation’ in consequence of the order dated 23.09.2016 passed by respondent no. 5;
iii) to issue further writ in the nature of mandamus directing the respondents especially respondent no. 5 to Act in a manner circumscribed by Hon'ble Apex Court in Special Leave to Appeal (C) no. 22998/2010 an well as the earlier settlement made in the year 1988 and 1990.
iv) to issue writ in the nature of mandamus directing respondent no. 5 to consider the settlement of the year 1988 and 1990 and if "corporation" is proposing for one time settlement then the long service rendered be also considered and the settlement be done after giving a proper and reasonable compensation so that they may be able to maintain their livelihood. The matter was taken up by the writ court on April 2, 2018 and having gone through the facts of the case, the Single Judge dismissed the writ petition. This judgement was upheld by Justice Roy as part of the Division Bench, which has now been set aside by the Supreme Court.