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2023 Supreme(SC) 1785

SUPREME COURT OF INDIA
Aniruddha Bose, Bela M.Trivedi, JJ.
Ganesh Digamber Jambhrunkar & Ors.
Vs
The State of Maharashtra & Ors.
Petition(s) for Special Leave to Appeal (C) No.2543 of 2023
Decided On : 12-09-2023

Advocates:
Advocate Appeared:
For the Petitioner: Ms. Manisha T.Karia, AOR, Ms.Nidhi Nagpal, Mr.Rohan Trivedi, Ms.Riya Kharab, Mr.Swapnil B.
For the Respondent: Mr. Aaditya Aniruddha Pande, AOR, Mr.Siddharth Dharmadhikari, Mr.Bharat Bagla, Mr.Sourav Singh, Mr.Aditya Krishna, Mr.Shrirang B.Varma, Mr.Anand Dilip Landge, AOR, Mr.Mrigank Prabhakar, AOR, Mr.Manoj Ranjan Sinha, Mr.Deepak Sain, Ms.Rachna Ranjan

Headnote:(A) Constitution of India - Articles 14, 16, and 34(1)(d) - Regularization of service - Petitioners appointed on a contractual basis in 2011 sought regularization. Court emphasized that employment should be regular and not exploitative, following precedent set in Sheo Narain Nagar v. State of Uttar Pradesh, highlighting a deviation from the principles established in Umadevi - Appointment on contract undermines constitutional rights. (Paras 3, 4, 5)

(B) Employment Rights - Continuous working on a contractual basis does not confer a vested legal right for regularization - Failure of State Governments to comply with previous rulings leads to constitutional contravention. (Paras 6, 7)

Facts of the case:
Petitioners worked at an educational institution under contractual appointments since 2011. They sought regularization citing unfair practices adopted by the State.

Findings of Court:
No vested legal right was found to exist for the petitioners to demand regularization. The High Court’s rejection of their claim was upheld.

Issues: Whether long-term contractual work provides a legal right to regular appointment.

Ratio Decidendi: Continuous employment does not create a legal entitlement to regularization of posts, and the court reiterated the necessity for proper regularization processes in line with constitutional mandates.

Result: Petition dismissed.

Table of Content
1. employment based on contractual terms and lack of regularization (Para 3)
2. no legal right to regularization from prolonged contract work (Para 4 , 5)
3. final dismissal of the petition and related applications (Para 6 , 7)

ORDER :

1. Upon hearing the counsel the Court made the following Order

2. Heard learned counsel for the petitioners and the respondent-State.

3. The petitioners were all appointed in Shri Guru Govind Singh Institute of Engineering and Technology on contractual basis and their appointments were made sometime in the year 2011. They are aggrieved as a regular recruitment process has started and we are apprised by learned counsel for the respondent-State that at present such process stands completed now but appointment letters are yet to be issued. The petitioners want to be regularized in the post for which such appointment process has been started and in this regard, learned counsel for the petitioners has relied on a judgment of this Court in the case of Sheo Narain Nagar and Others Vs. State of Uttar Pradesh and Another: 2018(13) SCC 432. Paragraph ‘7' of this judgment reads as under:

    "7. When we consider the prevailing scenario, it is painful to note that the decision in Umadevi has not been properly understood and rather wrongly applied by various State Governments. We have called for the data in the instant case to ensure as to how many employees were working on contract basis or ad hoc basis or daily-wage basis in different State departments. We can take judicial notice that widely aforesaid practice is being continued. Though this Court has emphasised that incumbents should be appointed on regular basis as per rules but new devise of making appointment on contract basis has been adopted, employment is offered on daily-wage basis, etc. in exploitative forms. This situation was not envisaged by Umadevi . The prime intendment of the decision was that the employment process should be by fair means and not by back door entry and in the available pay scale. That spirit of the Umadevi has been ignored and conveniently overlooked by various State Governments/authorities. We regretfully make the observation that Umadevi has not been implemented in its true spirit and has not been followed in its pith and substance. It is being used only as a tool for not regularising the services of incumbents. They are being continued in service without payment of due salary for which they are entitled on the basis of Articles 14, 16 read with Article 34(1)(d) of the Constitution of India as if they have no constitutional protection as envisaged in D.S.Nakara V. Union of India, from cradle to grave. In heydays of life they are serving on exploitative terms with no guarantee of livelihood to be continued and in old age they are going to be destituted, there being no provision for pension, retiral benefits, etc. There is clear contravention of constitutional provisions and aspiration of downtrodden class. They do have equal rights and to make them equals they require protection and cannot be dealt with arbitarily. The kind of treatment meted out is not only bad but equally unconstitutional and is denial of rights. We have to strike a balance to really implement the ideology of Umadevi . Thus, the time has come to stop the situation where Umadevi can be permitted to be flouted, whereas, this Court has interdicted such employment way back in the year 2006. The employment cannot be on exploitative terms, whereas Umadevi laid down that there should not be back door entry and every post should be filled by regular employment, but a new device has been adopted for making appointment on payment of paltry system on contract/ad hoc basis or otherwise. This kind of action is not permissible when we consider the pith and substance of true spirit in Umadevi ."

4. The issue with which we are concerned in this petition is as to whether by working for a long period of time on contractual basis, the petitioners have acquired any ves

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