Supreme Court Sets Aside High Court Order Directing Preference to Heir of Deceased Halt Contractor. Contract Expired in 2010, No Right to Preference Under Circular 17.05.1999.

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Case Note & Summary

The dispute arose from the appointment of a halt contractor at Pirtala Halt Station. The respondent's father was appointed as a halt contractor, but the contract expired in 2010 and was not renewed. The father died on 5 December 2016. During his father's illness, the respondent was allowed to sell tickets on humanitarian grounds. In February 2017, the Railways issued an advertisement inviting applications for the contract. The respondent applied and was shortlisted but was not selected after a draw of lots. He then filed a writ petition in the Calcutta High Court, claiming preference under Clause VI of Circular dated 17.05.1999, which provides that heirs of deceased halt contractors may be given preference if all other things are equal. The learned Single Judge dismissed the petition, holding that the contract had expired. However, the Division Bench allowed the appeal and directed the Railways to give preference and appoint the respondent. The Supreme Court, in appeal, set aside the Division Bench's order. The Court noted that the contract expired in 2010 and was not renewed. The respondent's temporary permission to work did not make him an existing contractor. Moreover, the respondent participated in the selection process and only challenged it after being unsuccessful. The Court held that no fundamental right was violated and that the High Court erred in directing preference. The appeal was allowed with no order as to costs.

Headnote

A) Railway Law - Halt Contractor Appointment - Preference to Heirs - Clause VI of Circular dated 17.05.1999 - The respondent's father's contract expired in 2010; respondent was allowed to work temporarily on humanitarian grounds. The Supreme Court held that the respondent cannot claim preference as an heir because the contract had expired and he was not an existing contractor. The High Court's direction to grant preference was set aside (Paras 9-11).

B) Administrative Law - Estoppel - Participation in Selection Process - The respondent participated in the selection process for appointment as halt contractor but was unsuccessful. The Supreme Court held that having participated, he cannot later challenge the appointment of another contractor (Para 10).

C) Fundamental Rights - No Violation - The Supreme Court held that no fundamental right of the respondent was violated to warrant a direction for appointment as halt contractor (Para 11).

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Issue of Consideration

Whether the respondent, as heir of a deceased halt contractor whose contract expired in 2010, is entitled to preference in appointment as a halt contractor under Clause VI of Circular dated 17.05.1999.

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Final Decision

Civil appeal allowed; impugned order of Division Bench set aside; no order as to costs.

Law Points

  • Preference to heirs of deceased halt contractors is not a right when the original contract has expired
  • Participation in selection process estops later challenge
  • Temporary permission to work does not create contractual rights
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Case Details

2019 LawText (SC) (2) 106

Civil Appeal No. 1382 of 2019 (Arising out of S.L.P.(C) No. 22212 of 2018)

2019-02-01

R. Banumathi, R. Subhash Reddy

Ms. Pinky Anand, Additional Solicitor General assisted by Mrs. Anil Katiyar for appellants; Mr. R.K. Gupta assisted by Mr. Shekhar Kumar for respondent

Union of India & Ors.

Md. Samim Azad

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Nature of Litigation

Civil appeal against High Court order directing preference in appointment of halt contractor

Remedy Sought

Appellants sought setting aside of High Court order directing preference and appointment of respondent as halt contractor

Filing Reason

Respondent claimed preference as heir of deceased halt contractor under Circular dated 17.05.1999

Previous Decisions

Single Judge dismissed writ petition; Division Bench allowed appeal and directed preference

Issues

Whether respondent is entitled to preference as heir of deceased halt contractor when the contract expired in 2010 Whether respondent can challenge appointment after participating in selection process

Submissions/Arguments

Appellants argued that contract expired in 2010, no right to preference, respondent participated in selection Respondent argued that he was allowed to work and is entitled to preference under Circular

Ratio Decidendi

An heir of a deceased halt contractor cannot claim preference for appointment when the original contract has expired and was not renewed. Temporary permission to work does not confer contractual rights. Participation in the selection process estops the candidate from later challenging the outcome.

Judgment Excerpts

Clause VI of the circular dated 17.05.1999: 'Appointment of heirs and successors of deceased halt contractors, in the event of death of the halt contractor, may be considered along with other applicants and preference will be given to the heirs, all other things being equal.' Merely because the respondent-original petitioner was permitted by the appellant-Railway authorities to work in the place of his ailing father, he cannot, as a matter of right, claim preference as an heir of contractor.

Procedural History

Writ Petition No. 12126(W) of 2017 filed before Calcutta High Court; dismissed by Single Judge on 25.04.2017; appeal allowed by Division Bench on 31.08.2017 in F.M.A. No. 878 of 2017; SLP filed before Supreme Court; leave granted and Civil Appeal No. 1382 of 2019 decided on 01.02.2019.

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Supreme Court Supreme Court Sets Aside High Court Order Directing Preference to Heir of Deceased Halt Contractor. Contract Expired in 2010, No Right to Preference Under Circular 17.05.1999.
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