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1999 Supreme(SC) 144

1999(1) Supreme 355
Supreme Court of India
(From Rajasthan High Court)
Mrs. Sujata V. Manohar & R.C. Lahoti, JJ.
Rajendra & Ors. etc. -Appellants
versus
State of Rajasthan & Ors. -Respondents
Civil Appeal Nos. 5476-83 of 1998
With
Civil Appeal Nos. 5484-5494 of 1998
With
Writ Petition (C) No. 540 of 1998
Decided on 5-2-1999
Counsel for the Parties :
For the Appellants : V.A. Mohta, Sr. Advocate, Kailash Vasdev, Advo­cate.
For the Appellant/Petitioner in C.A. Nos. 5484-94/98 and W.P. No. 540/98 : Surya Kant, Advocate.
For the Respondents : Aruneshwar Gupta and S.N. Rath, Advocates.

Important Point
When the posts tempo­rarily created for fulfilling the needs of a particular pro­ject or scheme limited in its duration come to an end on account of the need for the project itself having come to an end either because the project was fulfilled or had to be abandoned wholly or partially for want of funds, the employer cannot by a writ of mandamus be directed to continue employing such employees as have been dislodged because such a direction would amount to requisition for creation of posts though not required by the employer and finding such posts though the employer did not have the funds available for the purpose.

Headnote:Service Law-Employment under District Rural Development Agen­cies Scheme (DRDA)-Termi­nation of Class III and Class IV posts-Validity of-Rajasthan Government abolishing 273 Class III and Class IV posts on basis of re­commendation of committee’s report on availability of funds for scheme-Challenge to termination order-Plea that they were in fact employee’s of State Government and even if need for such employment had come to an end with DRDA Societies of different dis­tricts they could be regularised and absorbed and accommodated by Govt. in other departments-Single Judge quashing order on reasoning DRDA Societies terminated employment without application of mind on basis of decision of Govt.-Direction to absorption in various other departments - Division Bench set aside decision-Whether correct-Posts temporarily created for fulfilling needs of particular project or scheme-Project came to an end or abandoned for want of fund-Employer cannot be directed to continue employing such employees-Such direction would amount to requisition for creation of posts though not required by employees-Order of Division Bench upheld.

       Held : When the posts tempo­rarily created for fulfilling the needs of a particular project or scheme limited in its duration come to an end on account of the need for the project itself having come to an end either because the project was fulfilled or had to be abandoned wholly or partially for want of funds, the employer cannot by a writ of mandamus be directed to continue employing such employees as have been dislodged because such a direction would amount to requisition for creation of posts though not required by the employer and finding such posts though the employer did not have the funds available for the purpose. (Para 13)

       The decision taken by the respondent-State to abolish the posts was a bona fide decision taken after due applica­tion of mind by appointing an Expert Commitees which went deep into all relevant considerations and made re­commendations in the interest of rationalization. The decision is based on administrative and finan­cial considerations. There is nothing wrong in the societies having acted on the policy decision of the State Government. Really speaking there was hardly anything left to be done by the DRDA societies at their own end. Inasmuch as the societies did not have any funds of their own independent of those made available by the State Government how could the societies have continued with the posts and the incumbents thereon though they were left with no means to pay salaries attaching with the posts. (Para 13)

       An attempt was made by the petitioners to bring in some new mate­rial on record to raise a plea that a few years after the abolition of the posts, the res­pondents have opened new avenues of employment where against the peti­tioners could be accommodated. The res­pondents have disputed such stand taken on behalf of the petitioners. We find it difficult to entertain such plea taken at this stage and sustain the same when no reliable material has been placed before us to uphold such plea of the petitioners. In fact a similar attempt was made before the Division Bench also by the petitioners moving an applica­tion for review of the judgment of the Division Bench but the review, petition was dismissed by the Division Bench forming an opinion that a new plea was not open for consideration in review jurisdiction of the court and if at all there was any substance in such plea of the peti­tioners then it provided a new cause of action enabling the petition­ers to file a fresh petition. In our opinion, the Division Bench was right in taking the view which it did. From the affidavit filed on behalf of State of Rajasthan and the figures placed before us in the form of a tabular statement we are satisfied that the State has already made effort at accommodating dislodged employees of one DRDA in other DRDAs as far as possible. There are no transferees/deputationists from Government occupying posts meant for LDCs or Class-IV in DRDAs and therefore the peti­tioners’ plea that they may be accommodated by repatriating such governmental employees has no merit and no foundation. (Para 14)

       Held consequently : Appeals and writ petition are dismissed subject to the observation that in the event of any additional posts being creat­ed in future due to some new scheme/programmes being introduced, petitioners/appellants may be given preference according to their seniority subject to eligibility after of age in view of the service so far rendered by each one of them in the DRDAs. (Para 16)

       

Judgment

R.C. Lahoti, J.-In the early eighties, the Government of Rajasthan introduced various programmes and allied schemes for poverty elimina­tion, employment generation etc. It brought into existence bodies known as District Rural Development Agencies (hereinafter referred to as ‘DRDAs’) registered under the Societies Registration Act, 1860. The main object of these agencies was to plan and administer the area develop­ment programme aiming at integrated Rural Development. In the year 1992, these DRDAs were concerned with the following schemes:

Limit of Admn. Expenses

(i) I.R.D.P. (Antyodaya) 10.15%

(ii) Desert Development Programme 5%

(iii) Jawahar Rozgar Yojna 2%

(iv) Indira Avas Yojna 2%

(v) Apna Gaon Apana Kam 2%

(vi) Bio-gas Plants -

(vii) Development of Women                and Children of Rural Areas. -

2. The main object of the Agencies was to implement such Schemes and to identify beneficiaries including small and marginal farmers, agri­cultural labourers and other persons eligible for assistance under these Schemes. The agencies also co-ordinated execution of these plans for the benefit of the identified participants through the existing agencies engaged in this direction in the field whether private, public or co-operative. Each District Rural Development Agency was an independent entity with a District Collector as ex-officio Chairman and a Project Director as the Chief Executive Officer.

3. There are 33 districts in the State of Rajasthan and as such there were 33 DRDAs in the State with an ex-officio Chairman and a Project Director. Subject to the allocation of the fund by the State of Rajas­than to each DRDA for implementation of particular scheme, persons were employed on various posts pursuant to the State Rural Development Agency Employees Service Regulation, 1983. Each DRDA was an independ­ent Agency located in each district. The appointments were made locally and seniority of the employees was also maintained on district basis. There was no inter se seniority. The jobs were not interchange­able or transferable from one DRDA to another. The services of the employees strictly depended on funds made available to individual DRDA for implementating its scheme for only a fixed administrative expenses were met out of the same.

4. In the year 1992, looking to the availability of the funds, the Government of Rajasthan took a decision to abolish 273 posts in the entire State of Rajasthan belonging to different DRDAs. The DRDAs were accordingly informed. This led to termination of several LDCs, and Class-IV (Peons). The petitioners in Civil Appeal Nos. 5476-83 of 1988 and Civil Appeal Nos. 5484-5494 of 1988 are such Class-III and Class-IV em­ployees.

5. Several petitions were filed before the High Court of Rajasthan challenging such termination of the employees. The principal grounds of challenge were that the petitioners having been appointed regularly against different posts, their services could not have been so termi­nated unceremoniously; that the petitioners though outwardly appointed in several societies were in fact the employees of the State Govern­ment inasmuch as their salaries were being paid from the funds made available by the State Government and even if the need for such em­ployment had come to an end with the societies, there were several vacancies available with the State Government against which the peti­tioners could have been accommodated and regularized; that the DRDA was ‘industry’ within the meaning of Section 2(j) of the Industrial Disputes Act, 1947 and yet the pro















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