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2016 Supreme(SC) 556

SUPREME COURT OF INDIA
T.S. THAKUR, CJI., R. BANUMATHI, UDAY UMESH LALIT, JJ.
STATE OF MAHARASHTRA & ORS. – Appellants
Versus
ANITA & ANR ETC. – Respondents
CIVIL APPEAL NOS. 6132-33 OF 2016 (Arising out of SLP(C) Nos. 34788-34789 of 2012) With CIVIL APPEAL NOS. 6134, 6135-36, 6137,6138,6139,6140,6141-42,6143,6144,6145,6146,6147-48,6149, 6150,6151,6152-53,6154,6155,6156,6157 OF 2016 (Arising out of SLP(C) Nos. 34792/12, 35146-35147/12, 36965/12, 36967/12, 36968/12, 38636/12, 39133-39134/12, 4482/13, 4484/13, 4588/13, 4592/13, 4594-4595/13, 8580/13, 11864/13, 17329/13, 17331-17332/13, 36070/13, 9282/14, 13647/14 and 14974/16)
Decided On : 12-07-2016

IMPORTANT POINT
After having accepted contractual appointment respondents are estopped from challenging terms of their appointment.

Headnote:Service Law—Appointment—On posts of Legal Advisors, Law Officers and Law Instructors on contractual basis—Appointment could be made maximum three times and extension of contract beyond third term is not allowed—If competent authority is of opinion that reappointment of such candidates is necessary then such candidates would again have to face selection process—Appointments were purely contractual and respondents shall not be entitled to claim any right or interest of permanent service in government—Appointments of respondents were made initially for eleven months but were renewed twice and after serving maximum contractual period services of respondents came to an end and Government initiated a fresh process of selection—Conditions of respondents’ engagement is governed by terms of agreement—After having accepted contractual appointment respondents are estopped from challenging terms of their appointment—Respondents are not precluded from applying for said posts afresh subject to satisfaction of other eligibility criteria—When government has taken a policy decision to fill up 471 posts of Legal Advisors, Law Officers and Law Instructors on contractual basis, Tribunal and the High Court ought not to have interfered with policy decision to hold that appointments are permanent in nature—Impugned judgment of High Court set aside. (Paras 14, 16, 17 and 18)

       Facts of Case:

       This batch of appeals has been filed against the order dated 28.03.2012 and other impugned orders passed by the High Court of Bombay Bench at Aurangabad whereby 471 posts of Legal Advisors, Law Officers and Law Instructors created by Government Resolutions dated 21.08.2006 and 15.09.2006 for appointment on contractual basis under the Director General of Police and Commissioner of Police, Greater Mumbai, were held to be permanent in nature.

       State of Maharashtra vide Government Resolution dated 21.08.2006 approved creation of 471 posts in various cadres including Legal Advisors, Law Officers and Law Instructors under the establishment of Director General of Police and Commissioner of Police, Greater Mumbai. As per clause (3) of the said Government Resolution, posts shall be filled up on contractual basis as per terms and conditions prescribed by the Government. By a subsequent Resolution dated 15.09.2006, the Government maintained that 471 posts created vide resolution dated 21.08.2006 shall be filled up on contractual basis by payment of consolidated pay. As per conditions of service laid down in Government Resolution dated 15.09.2006, appointment was initially for eleven months and with a provision of extension up to maximum of three terms each term being of eleven months. After expiry of third term, candidates are required to face fresh selection process once again. After expiry of term of respondents, their appointments automatically came to an end. In pursuance of expiry of terms of respondents, State issued fresh advertisements for recruitment of Legal Advisors, Law Officers and Law Instructors on 05.12.2009, 13.01.2010 etc.

       Findings of Court:

       High Court did not keep in view various clauses in Government Resolutions dated 21.08.2006 and 15.09.2006 and also terms of agreement entered into by respondents with government. Creation of posts was only for administrative purposes for sanction of the amount towards expenditure incurred but merely because the posts were created, they cannot be held to be permanent in nature. When government has taken a policy decision to fill up 471 posts of Legal Advisors, Law Officers and Law Instructors on contractual basis, Tribunal and High Court ought not to have interfered with policy decision to hold that appointments are permanent in nature.

       Result — Appeals allowed.

JUDGMENT

R. BANUMATHI, J.

Delay condoned. Leave granted.

2. This batch of appeals has been filed against the order dated 28.03.2012 and other impugned orders passed by the High Court of Bombay Bench at Aurangabad whereby 471 posts of Legal Advisors, Law Officers and Law Instructors created by Government Resolutions dated 21.08.2006 and 15.09.2006 for appointment on contractual basis under the Director General of Police and Commissioner of Police, Greater Mumbai, were held to be permanent in nature. For convenience, appeals arising out of SLP(C) No.34788-34789 of 2012 are taken as the lead case.

3. State of Maharashtra vide Government Resolution dated 21.08.2006 approved creation of 471 posts in various cadres including Legal Advisors, Law Officers and Law Instructors under the establishment of Director General of Police and Commissioner of Police, Greater Mumbai. As per clause (3) of the said Government Resolution, the posts shall be filled up on contractual basis as per the terms and conditions prescribed by the Government. By a subsequent Resolution dated 15.09.2006, the Government maintained that 471 posts created vide resolution dated 21.08.2006 shall be filled up on contractual basis by payment of consolidated pay. As per the conditions of service laid down in the Government Resolution dated 15.09.2006, the appointment was initially for eleven months and with a provision of extension up to maximum of three terms each term being of eleven months. After expiry of third term, the candidates are required to face fresh selection process once again. After the expiry of the term of respondents, their appointments automatically came to an end. In pursuance of the expiry of terms of respondents, the State issued fresh advertisements for recruitment of Legal Advisors, Law Officers and Law Instructors on 05.12.2009, 13.01.2010 etc.

4. On expiry of the contractual period and being aggrieved by publication of fresh advertisement, the respondents approached the Maharashtra Administrative Tribunal challenging the conditions in the Government Resolutions dated 21.08.2006 and 15.09.2006, which laid down that the appointment of the law officers/law instructors shall be contractual, is arbitrary and that the respondents should have been appointed on regular pay scale and not on consolidated pay. The tribunal partly allowed the claim of the respondents and the tribunal struck down those provisions by holding that clause (3) of the Government Resolution dated 21.08.2006 and the clauses 'A', 'B', and 'C' in the Government Resolution dated 15.9.2006 suffered from arbitrariness and unreasonableness. However, no direction was issued by the tribunal directing the State Government to regularise the respondents.

5. Aggrieved thereof, respondents filed writ petitions before the High Court seeking for a direction to the State Government to regularise their services. State Government also filed writ petition challenging the order of the tribunal striking down the clauses in the said Government Resolutions as arbitrary and for setting aside the order of the tribunal.

6. The High Court vide impugned judgment dismissed all the writ petitions filed by the State Government as well as by the respondents.

The High Court took the view that 471 posts created by the State Government in various cadres are permanent posts and thus the appointments thereon must also be permanent. However, considering the fact that the appointment of the respondents were not made in regular manner under the constitutional scheme, the High Court held that the respondents/original applicants cannot claim permanency and/or regularisation.

7. Being aggrieved, the State as well as the applicants have preferred these appeals. Vide order dated 02.11.2012, this Court has granted stay of operation of the impugned judgment dated 28.03.2012 passed by the High Court as well as the order dated 06.05.2010 passed by the Maharashtra Administrative Tribunal, Aurangabad Bench and this Court directed
























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