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2025 Supreme(SC) 2043

SUPREME COURT OF INDIA
AHSANUDDIN AMANULLAH, K. VINOD CHANDRAN, JJ.
Jai Narain Vyas University, Jodhpur & Anr. – Appellants
Versus
Bhanwar Singh – Respondent
Civil Appeal No. of 2025 (@Special Leave Petition (C) No. 25004 of 2023)
Decided On : 04-12-2025

Advocates appeared:
For the Petitioner(s): Mr. Vipin Sanghi, Sr. Adv. Ms. Adwaita Sharma, Adv. Mr. Vikalp Mudgal, AOR Mr. Abhishek Chaudhary, Adv. Mr. Kshitij Mudgal, Adv. Mr. Ansh Mittal, Adv. Mr. Amit Jay Singh, Adv. Mr. Piyush Sharma, Adv.
For the Respondent(s): Mr. Devashish Bharuka, Sr. Adv. Ms. Chitrangda Rastravara, Adv. Mr. Abhijeet Singh, Adv. Mr. Anirudh Singh, Adv. Mr. Aishwary Mishra, Adv. Mr. Dhananjai Shekhwat, Adv. Ms. Sakshi Aggarwal, Adv. Mr. Yuvraj Singh, Adv. Ms. Pearl Pundir, Adv. Mr. Dashrath Singh, Adv. Mr. Gp. Capt. Karan Singh Bhati, AOR Ms. Parul Shukla, AOR Mr. Rajesh Kumar, AOR Mr. Nihar Jain, Adv. Mr. Krishan Kant Kumar, Adv. Mr. K. Paari Vendhan, AOR Mr. Rishabh Sancheti, Adv. Ms. Padma Priya, Adv. Mr. Sparsh Saxena, Adv. Mr. Aquib Ali Khan, Adv. Mr. Nishant Kumar Singh, Adv. Mr. Nishant Kumar, Adv. Mr. Prachet Sharma, Adv. Mr. Jasmeet Singh, Adv. Mr. Mohit Choudhary, Adv. Mr. R. S. Saluja, Adv. Mr. Mahinder Singh Hura, Adv. Ms. Rusheet Saluja, AOR Mr. Achraj Saluja, Adv. Mr. Saif Ali, Adv. Mr. Pushpendra Singh Bhadoriya, Adv. Mr. Vijay Sharma, Adv. Mr. Ajith Williams, Adv. Mr. Bilal, Adv. Mr. Pranav Menon, Adv. Mr. Saurav, Adv.

The refusal of regularization after reinstatement is untenable when termination is deemed illegal under the Industrial Disputes Act.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 33C(2) and 17B - Reinstatement and regularization of claimed employment - The appellant-University mishandled litigation and misinterpreted orders, leading to a delay in reinstatement - The Labour Court found the termination of the respondent illegal as per Section 25F - Despite reinstatement, regularization was denied based on misinterpretation of the law - The Court emphasized the finality of the Labour Court's order and the mistaken reliance on irrelevant precedents. (Paras 2, 3, 11, 14, 19)

(B) Employment Law Principle - The court reinforced that continuance of an employee post-reinstatement without formal regularization can lead to entitlement to regular pay scales - The pattern of employment established prior to termination did not grant the employer a right to deny regularization - The Court clarified that the nature of the respondent's employment is distinguishable from 'litigious employment'. (Paras 17, 21)

Facts of the case:
The respondent was employed as a Junior Clerk, with termination in 1997 improperly conducted, leading to a Labour Court ruling for reinstatement, which the University failed to comply with in a timely manner.

Findings of Court:
The respondent must be regularized due to the finality of the Labour Court's order and its findings of previous illegal termination - The University must pay arrears within six months with specific interest provisions for delays.

Issues: Whether the respondent is entitled to regularization post-reinstatement after illegal termination and whether the University misinterpreted prior judgments regarding employment status.

Ratio Decidendi: The court ruled that the Labour Court's decision on illegal termination must be upheld, establishing the necessity for regularization based on the finality of reinstatement orders, asserting the inapplicability of unrelated precedents.

Result: Appeal dismissed.

Judgement Key Points

Key Points: - The respondent must be regularized due to the finality of the Labour Court’s order and its findings of illegal termination (!) . (!) - The University must pay arrears within six months with interest for delays; failure to pay triggers 6% interest on the arrears (!) . (!) - The respondent shall be deemed in service from 16.12.1994; period 31.12.1997 to 17.02.2003 not a break, but 40% back wages applicable for that period per Labour Court (!) . (!) - From 17.02.2003 to reinstatement, and thereafter, the respondent is entitled to regular pay scales; arrears computed by the University with prior payments deducted, within six months (!) (!) . (!) (!) - Section 17B payments (full wages during pending higher court proceedings) were considered but ultimately regularization was ordered; continuation under 17B does not bar regularization in this context (!) (!) . (!) (!) - The proceedings under Section 33C(2) have no further life insofar as the Labour Court award is to be complied with (!) . (!) - The appeal is dismissed with costs; pending applications disposed of (!) (!) . (!) (!)

What is the entitlement to regularization post-reinstatement after illegal termination under the Industrial Disputes Act?

What are the consequences of continuing an employee post-reinstatement with or without regularization for pay scales and back wages?

What is the status and effect of Section 17B and the finality of Labour Court orders on the regularization and arrears payments?


Table of Content
1. background of employment and reinstatement case (Para 2 , 6 , 12)
2. court's analysis on previous findings and orders (Para 3 , 7 , 8 , 9 , 13 , 14 , 15 , 16 , 17)
3. arguments on regularization of employment (Para 4 , 5 , 10)
4. entitlement of petitioner to regularization and back wages (Para 18 , 19)
5. final verdict and consequences of the ruling (Para 20 , 21 , 22 , 23)

ORDER :

Leave granted.

2. This is a classic case of the appellant-University having mishandled litigation, misinterpreted orders and mistook observations in contempt cases. The sole respondent had initiated his claim for reinstatement by a reference sought under the Industrial Disputes Act, 19471[for brevity ‘ID Act’] and had agitated his cause again under Section 33C (2) of the ID Act, both of which were challenged by the appellants. Though reinstatement as directed by the Labour Court was eventually carried out, after much delay, regularization was denied. A further litigation was initiated by the respondent for regularization challenging the order of the Syndicate denying it, which has now reached this Court, the High Court having permitted it by the impugned judgment.

3. There were a batch of Special Leave Petitions clubbed together on the ground that the very same claim of regularization was agitated against the University in all the said SLPs. Before commencement of arguments, it was pointed out that the present appeal stands distinct from others for reason of the respondent herein having approached the Labour Court at the first instance, which order has attained finality. According to the learned Senior Counsel appearing for the appellant-University, the others having not agitated their cause before the appropriate Authority are attempting to urge their claim on the basis of the claim of the respondent herein. None of the other petitioners have approached the Labour Court at the first instance and hence in such circumstances, we detached the above matter to be heard separately.

4. Shri Vipin Sanghi, learned Senior Counsel for the appellant-University submits that the impugned order was passed on the basis of the order in Jai Narain Vyas University , Jodhpur & Anr. v. Jitendra Kumar (Annexure P6) by a Division Bench of the High Court of Rajasthan at Jodhpur, which on facts is not at all applicable to the present case. It is submitted that therein, a person was continued for 20 years uninterruptedly, in which circumstance, it was held that his case would squarely fall within the dictum of State of Karnataka v. Uma Devi , (2006) 4 SCC 1. In the present case there was no such continuation for a period extending over 10 years and in any event the respondent was merely employed through a contractor, which does not give him any right for continuation or for regularization. The continuance of the respondent after he was reinstated was only on interim orders issued by the Writ Court, which cannot inure to the benefit of the respondent as has been held in Uma Devi, (supra). It is alternatively argued that even if his reinstatement is upheld, he cannot be granted regularization since the initial appointment was not in order and was illegal.

5. Shri Devashish Bharuka, learned Senior Counsel appearing for respondent points out that the challenge against the order of the Labour Court granting reinstatement was dismissed as infructuous. The University had granted reinstatement but had refused regularization, which goes against the spirit of the order of the Labour Court. The respondent was never appointed under a contractor as found by the Labour Court and he was paid directly by the University. The respondent has to be regularized and continued till his superannuation.

6. As we noticed at the outset, there are three layers of litigation. The respondent admittedly worked as a Junior Clerk between 16.12.1994 and 31.12.1997. He was terminated by an order of the Dean, Faculty of Law, who had also made the payment of salary to the respondent directly. The resp

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