1. Daily wage employees on a central scheme dispensed with services upon project closure — High Court direction for re-engagement challenged. (Para 3 )
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1996 Supreme(SC) 14
SUPREME COURT OF INDIA
G.B.Pattanaik : K.Ramaswamy
State Of H.P.
Versus
Ashwani Kumar
Case No. : .
Date of Decision : 1/3/96
Advocates Appeared: Dutta B. : Sharma Naresh Kumar : Singh Devendra
Temporary employment on a daily wage basis does not create a vested right to regularization. Courts cannot direct the State to regularize services or create new posts in the absence of existing vacancies or available work.
Headnote:(A) Service Law - Temporary Employment - Regularisation - Daily wage employees engaged on muster-roll basis in a central scheme - Scheme closed due to non-availability of funds - High Court directed re-engagement of employees elsewhere - No vested right is created in temporary employment - Directions cannot be given to regularise services in the absence of existing vacancies nor can directions be given to create posts by the State to a non-existent establishment - Court must adopt a pragmatic approach - Directions to continue employment despite non-availability of work are illegal. (Para 4)
Facts of the case:
Respondents were engaged as daily wage workers on a muster-roll basis for a central scheme funded by the central government. Following the closure of the scheme, their services were terminated. The High Court had issued directions for their re-engagement elsewhere.
Findings of Court:
The directions issued by the High Court to regularise the respondents or continue them in other places were found to be absolutely illegal as they amounted to the creation of posts in the absence of work and vacancies.
Issues: Whether temporary employees engaged on a daily wage basis in a closed project have a vested right to be regularised or re-engaged in other posts.
Ratio Decidendi: Temporary employment does not create a vested right to permanent absorption. In the absence of existing vacancies, the court cannot direct the State to regularise services or create new posts for a non-existent establishment.
Result: Appeal allowed.
Legal Category Hierarchy
-
administrative law
-
service law
- regularization of temporary employment (Para 4)
-
service law
Table of Contents
2. Whether temporary employees on a closed project are entitled to regularization or re-engagement in other posts. (Para 3 , 4 )
3. Temporary employees must leave when a project closes due to fund unavailability; courts cannot order regularization without vacancies or create non-existent posts. (Para 4 )
4. No vested right to regularization or continued employment is created through temporary employment. (Para 4 )
5. Appeal allowed and High Court order set aside. (Para 5 )
6. Does temporary employment create a vested right to regularization?
No, no vested right is created in temporary employment. (Para 4 )
7. Can a court direct the State to create posts or regularize services in the absence of vacancies?
No, directions cannot be given to regularize services in the absence of existing vacancies, nor can directions be given to create posts by the State to a non-existent establishment. (Para 4 )
8. What is the status of employees when a project is closed due to non-availability of funds?
When a project is completed and closed due to non-availability of funds, the employees must go along with the closed project. (Para 4 )
(1) LEAVE granted.
(2) HEARD counsel on both sides.
(3) THE facts are that the respondents were engaged on daily wages on muster-roll basis in central Scheme and were paid out of the funds provided by the central government. It is stated that after the scheme was closed their services were dispensed with. When the respondents filed the writ petition in the High court, the High court gave interim direction dated 6/1/1993 and directed them to be re-engaged elsewhere. Pursuant to the interim direction the writ petition came to be disposed of on 9/3/1993. Thus this appeal by special leave.
(4) IT is seen that when the project is completed and closed due to non- availability of funds, consequently, the employees have to go along with the closed project. The High court was not right in giving the direction to regularise them or to continue them in other places. No vested right is created in temporary employment. Directions cannot be given to regularise their services in the absence of any existing vacancies nor can directions be given to create posts by the State to a non-existent establishment. The court would adopt pragmatic approach in giving directions. The directions would amount to creating of posts and continuing them in spite of non-availability of the work. We are of the considered view that the directions issued by the High court are absolutely illegal warranting our interference. The order of the High court is set aside.
(5) THE appeal is allowed. No costs.
