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SUBBA REDDY SATTI
Kota Simhachalam, S/O K. Laxmu – Appellant
Versus
State of AP, Rep. By Its Special Chief Secretary For Municipal Administration and Urban Development – Respondent
ORDER :
Subba Reddy Satti, J.
The above writ petition is filed, impugning the proceedings issued by the 2nd respondent vide Rc.No.76/LDM/APTIDCO/Admin/2017 dated 26.06.2024, dispensing with the services of petitioners with effect from 30.06.2024, as illegal and arbitrary.
2. Averments in the affidavit, in brief, are that the petitioners joined the office of the 2nd respondent on different dates on contractual agreements. The services of petitioners were utilized to collect beneficiary allotment data from the Municipality Department and loan allotment data through MEPMA etc. The petitioners further assisted the office of the 2nd respondent in conducting social analysis, social audit and community participation in analyzing the affordability of housing loans to the poor etc. Due to the change of political governance in the State, the 2nd respondent by proceedings impugned (Ex.P1) dispensed with the services of petitioners. The petitioners immediately approached the 2nd respondent and made representations to continue services. The 2nd respondent assured that appropriate action would be taken and intimate to the petitioners. However, nothing was materialized. The impugned order of termina
Termination of contractual employees by government agencies is valid unless shown to be arbitrary or in violation of fundamental rights.
Termination of contractual employment must adhere to principles of fairness and non-arbitrariness, ensuring equal treatment under Articles 14 and 16 of the Constitution.
The court upheld the contractual nature of the petitioners' services and found the appointment of the private agency to be in compliance with the NULM scheme.
Termination of outsourced employees merged into APCOS deemed illegal; court directed continuation of services and payment of due salaries.
The main legal point established is that the termination of a service contract for contractual employees must be in compliance with the terms of the contract and the Indian Contract Act, 1872.
The failure to provide notice and an opportunity for a hearing before revoking the contract constitutes a violation of natural justice principles in outsourcing matters.
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