The Executive Engineer Vs Prakash Chand — Himachal Pradesh HC (2026) — LawSathi Research

The Executive Engineer Vs Prakash Chand — Himachal Pradesh HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Delay of 7 days in filing the appeal condoned and the application disposed of; appeal ordered registered with connected appeals to be tagged; appellate authority directed not to disburse the already-deposited amount till further orders; notice to the sole respondent, returnable on or before the next date of hearing; listed on 27.08.2026 alongwith LPA No.403 of 2026.

Issue for consideration

Whether the period of daily wage service rendered before regularization is to be counted for the purpose of gratuity or not, under the Payment of Gratuity Act, 1972 (framed as the issue in question; not resolved here, the matter having been previously referred to larger Benches).

Court's answer

Keeping in view the pending larger-Bench references on the pre-regularization daily-wage service/gratuity question, this Court directs the appellate authority not to disburse the amount, which already stands deposited, till further orders.

Ratio / Principle

Delay of 7 days in filing the appeal is condoned, the application (CMP(M) No.1026 of 2026) being supported by the affidavit of the official, and the application stands disposed of.

Key takeaways

Office is directed to give a report regarding pendency of the Reference as per order dated 05.09.2018.obiter¶17

Detailed headnote1 paragraphs

The Executive Engineer (State) v. Prakash Chand - LPA No.____ of 2026 with CMPST No.36018 of 2026; CMP(M) No.1026 of 2026. Orders dated 16.07.2026 (G.S. Sandhawalia, Chief Justice and Bipin C. Negi, Judge): delay of 7 days in filing the appeal condoned on the strength of the official's affidavit and the application disposed of; appeal ordered registered and connected appeals to be tagged therewith. The point in issue - whether daily-wage service rendered before regularization counts for gratuity under the Payment of Gratuity Act, 1972 - has been the subject of earlier referrals to larger Benches (referral to a Larger Bench in Dhansai Sahu v. State of Chhattisgarh, 2020 (2) SCALE 310; Coordinate Bench referral in CWP No.2661 of 2016, State of HP and Anr. v. Bhoop Ram and Anr.; Reference as per order dated 05.09.2018 pending), and the impugned judgment of the learned Single Judge had relied on CWP No.15443 of 2024 (State of HP and Ors., decided on 24.02.2026) and CWP No.4632 of 2025, Bindumati v. State of HP (decided on 07.11.2025), the latter referring to the Apex Court pronouncement in Net Ram Sahu v. State of Chhattisgarh, 2018 (5) SCC 430. Accordingly, the appellate authority is directed not to disburse the amount already deposited till further orders; Office to report on the pendency of the Reference; notice to the sole respondent; listed for 27.08.2026 alongwith LPA No.403 of 2026.

The Executive Engineer Vs. Prakash Chand

Item No.S-7

CMP(M) No.1026 of 2026

16.07.2026 Present : Mr. Varun Chandel, Additional Advocate General,

for the appellants/State.

Keeping in view the averments made in the application, duly supported by the affidavit of the official, delay of 7 days in filing the appeal is condoned.

The application stands disposed of.

LPA No. of 2026 & CMPST No.36018 of 2026

Appeal be registered.

Learned Addl. Advocate General submits that

the connected appeals have also been filed. Office to tag the other appeals along with the present appeal.

Inter alia submits that the issue in question is whether the period of daily wage service rendered before regularization is to be counted for the purpose of gratuity or not, under the Payment of Gratuity Act, 1972. It is, thus, submitted that the learned Single Judge has relied upon the judgments passed by this Court in CWP No.15443 of 2024, titled State of HP and Ors ., decided on 24.02.2026 and CWP No.4632 of 2025, titled Bindumati Vs. State of HP and Ors. , decided on 07.11.2025.

Perusal of the judgment passed in Bindumati’s case (Supra), would go on to show that a reference was made to the authoritative pronouncement

of the Apex Court in Net Ram Sahu versus State of Chhattisgarh 2018 (5) SCC 430 . It is also to be noticed that the matter had been referred to a Larger Bench in Dhansai Sahu Vs. State of Chhattisgarh and Ors. , 2020 (2) SCALE 310.

It is further submitted that even earlier the Coordinate Bench of this Court in CWP No.2661 of 2016, titled State of HP and Anr. Vs. Bhoop Ram and Anr. along with connected matters, had also referred the matter for constitution of a larger Bench.

Keeping in view the above, we direct the appellate authority not to disburse the amount, which already stands deposited, till further orders.

Office shall also give a report regarding pendency of the Reference as per order dated 05.09.2018.

On taking steps within three days, issue notice to the sole respondent, returnable on or before the next date of hearing.

List on 27.08.2026 a/w LPA No.403 of 2026.

(G.S. Sandhawalia) Chief Justice

(Bipin C. Negi) Judge

16^th July, 2026 (Gaurav Rawat)