Supreme Court orders ₹1 lakh compensation for daily-wage workers in Bihar dues case

This case concerns the resolution of three specific issues left open by the Supreme Court in a previous order regarding the payment of dues to employees of five state-owned corporations in Bihar and Jharkhand following the state's reorganization. The core issues involve the verification of untraced employees, the entitlement of daily-wage workers to compensation, and the calculation of interest on delayed payments.

Who it concerns: Petitioners: Bihar State Ardha Sarkari Arjpati Karamchari Maha Sangh and others; Respondents: State of Bihar and others; Bench: Justice Mehta.

What the court decided

• The Court noted the compliance affidavits filed by the States of Bihar and Jharkhand regarding the disbursement of principal dues.
• The Court directed the States to take all necessary steps to complete the implementation of previous directions at the earliest.
• The Court identified three specific issues for determination: (i) identification/verification of remaining employees, (ii) entitlement of daily-wage workmen to compensation, and (iii) entitlement to interest on delayed payments.
• The document text provided ends before the Court's final operative orders or specific compensation amounts are detailed in the 'Conclusion and Directions' section.

Also in the document

• The case arises from the reorganization of the erstwhile State of Bihar pursuant to the Bihar Reorganisation Act, 2000.
• The Court previously accepted recommendations from a Committee chaired by Retd. Justice Dinesh Maheshwari in an order dated 29th May, 2026.
• Compliance affidavits indicate that while substantial compliance has been reported, some claims remain pending due to untraceable claimants or missing documentation.