Supreme Court Allows State's Appeal in Service Regularization Case, Finding High Court Erred in Ordering Regularization of Contractual Driver. Regular Employee's Repatriation Justified Termination of Contractual Services Through Third-Party Society Under Administrative Law Principles.

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Case Note & Summary

The dispute originated from the Rajasthan Agriculture Department where Lalu Ram Meena held the regular post of Driver, with his services regularized effective October 16, 2002. While Lalu Ram Meena was on deputation, the department engaged the respondent, Shiv Charan Meena, on a contract basis through the Jaipur Ex-Servicemen Welfare Cooperative Society Ltd. in 2009. The arrangement involved the Society raising monthly consolidated bills for payment. When Lalu Ram Meena was repatriated to the department in 2015, the respondent's contractual services were terminated, and he was directed to hand over charge of the vehicle to Lalu Ram Meena. The respondent challenged this termination by filing a writ petition before the High Court, seeking regularization of his services and alleging that his position was being filled by another contractual employee. The Single Judge allowed the writ petition with costs of Rs.25,000/-, and the Division Bench dismissed the department's appeal. The State of Rajasthan appealed to the Supreme Court. The core legal issue was whether the High Court correctly ordered regularization when the regular employee had returned from deputation. The Supreme Court analyzed the facts and found that the case involved the repatriation of a regular employee, not the substitution of one contractual employee with another. The Court reasoned that the respondent's engagement was purely contractual through a third-party society, and his disengagement upon the regular employee's return was justified. Consequently, the Supreme Court allowed the appeal, set aside the High Court's orders, and dismissed the original writ petition. Additionally, the Court directed the appellant to pay a further sum of Rs.25,000/- to the respondent within four weeks, considering the peculiar facts of the case.

Headnote

A) Service Law - Contractual Employment - Regularization - Rajasthan Agriculture Department - The respondent was engaged as a driver on contract basis through Jaipur Ex-Servicemen Welfare Cooperative Society Ltd. in 2009 while regular employee Lalu Ram Meena was on deputation - When Lalu Ram Meena was repatriated in 2015, the respondent's services were disengaged - The Supreme Court held that this was not a case of substituting one contractual employee with another but rather a regular employee returning to his position, thus the High Court erred in ordering regularization (Paras 1-2).

B) Service Law - Costs - Additional Compensation - The Supreme Court allowed the appeal and set aside the High Court's order while directing the appellant to pay an additional Rs.25,000/- to the respondent within four weeks, in addition to the costs already awarded by the High Court (Para 2-3).

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Issue of Consideration

Whether the High Court was correct in directing regularization of a contractual driver's services when the regular employee was repatriated to his parent department

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Final Decision

Supreme Court allowed the appeal, set aside the impugned order passed by the High Court, and dismissed S.B. Civil Writ No.7637 of 2015. Directed appellant to pay additional Rs.25,000/- to respondent within four weeks.

Law Points

  • Contractual employment through third-party society
  • regularization of services
  • repatriation of regular employee
  • substitution of contractual employee
  • judicial review of administrative decisions
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Case Details

2021 LawText (SC) (9) 94

Civil Appeal No.5747 of 2021 (Arising out of SLP (Civil) No.27737 of 2018)

2021-09-17

Uday Umesh Lalit, S. Ravindra Bhat, Bela M. Trivedi

State of Rajasthan & Others

Shiv Charan Meena

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Nature of Litigation

Civil appeal challenging High Court judgment regarding regularization of contractual driver's services

Remedy Sought

Appellant State seeking reversal of High Court order that directed regularization of respondent's services and awarded costs

Filing Reason

Appellant aggrieved by High Court judgment allowing respondent's writ petition for regularization

Previous Decisions

Single Judge of High Court allowed writ petition with costs on 09.05.2017; Division Bench dismissed appeal on 16.11.2017

Issues

Whether the High Court was correct in directing regularization of contractual driver's services when regular employee was repatriated

Ratio Decidendi

When a regular employee returns from deputation to his parent department, the termination of contractual services of a substitute employee engaged through a third-party society is justified and does not entitle the contractual employee to claim regularization.

Judgment Excerpts

The post of Driver in the Agriculture Department of the State Government at the relevant time was occupied by one Lalu Ram Meena, whose services were regularized w.e.f. 16.10.2002 services of the respondent herein were engaged on contract basis through Jaipur Ex-Servicemen Welfare Cooperative Society Ltd. The services of the respondent were disengaged after said Lalu Ram Meena was repatriated to the concerned Department it was not a case of another contractual or ad hoc employee being appointed in place of the respondent but rather it was a case of regular appointee getting repatriated to the parent department

Procedural History

Respondent filed S.B. Civil Writ No.7637 of 2015 before High Court; Single Judge allowed writ petition on 09.05.2017; Division Bench dismissed appeal (D.B. Civil Special Appeal (Writ) No.1342 of 2017) on 16.11.2017; Supreme Court granted leave and heard appeal (Civil Appeal No.5747 of 2021 arising from SLP (Civil) No.27737 of 2018)

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Supreme Court Supreme Court Allows State's Appeal in Service Regularization Case, Finding High Court Erred in Ordering Regularization of Contractual Driver. Regular Employee's Repatriation Justified Termination of Contractual Services Through Third-Party Society U...
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