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2025 Supreme(AP) 372

IN THE HIGH COURT OF ANDHRA PRADESH
DR. K. MANMADHA RAO, J
Ganga Ravi Prasad - Appellant
Versus
The State of Andhra Pradesh - Respondent
WP 466 OF 2022
Decided On : 24-01-2025

Advocates:
Advocate Appeared:
Mr. Narra Srinivasa Rao,
GP for Services-IV

Termination of outsourced employees merged into APCOS deemed illegal; court directed continuation of services and payment of due salaries.

Headnote:

(A) Andhra Pradesh Corporation for Outsourced Services (APCOS) - G.O.Ms.No.136 dated 04.11.2019 - Termination of services of outsourced employees - Petitioners, working in various capacities at a government hospital, were terminated despite being merged into APCOS - Court found termination illegal and arbitrary, directing continuation of services and payment of due salaries. (Paras 10, 12, 13)

(B) Employment Law - Outsourced employees - The relationship between the petitioners and the government was established through the outsourcing agency, and the termination was deemed unlawful as the petitioners were merged into APCOS. (Paras 12, 13)

(C) Fundamental Rights - Article 21 - Petitioners claimed violation of their rights due to termination without due process, especially after serving during the pandemic. (Paras 6, 12)

(D) Regularization of Services - The court noted that the principles from the Umadevi case do not apply to the current facts, as the petitioners were not directly employed by the government. (Paras 12, 13) (E)

Issues: The main issues were the legality of the termination of services and the applicability of the Umadevi case principles. (Paras 12, 13) (F)

Findings of Court:
The court ruled that the termination was illegal and directed the respondents to continue the petitioners' services and pay their due salaries. (Paras 12, 13) (G)

Result: Writ petitions allowed.

ORDER :

K. MANMADHA RAO, J.

As the issue involved in both the writ petitions is one and the same, they are being taken up for hearing as well as disposed of by way of this Common Order.

2. Since the facts in all the writ petitions are similar and identical, therefore WP No.466 of 2022 is taken as lead case, and the facts therein hereinafter will be referred to for convenience.

3. The facts of the case are that all the Petitioners are working in various capacities on the outsourcing basis in the Government General Hospital, Kurnool City. Kurnool District. The Petitioners have been working as Electricians, Lift Operators, barbers. Plumbers. Carpenters, Male Nursing Orderly and Female Nursing Orderly and Front Desk Managers in the Government General Hospital, Kurnool City, Kurnool District initially from the month of October 2018 for a period of 3 years through the agency of Nakshatra House Keeping Services vide Agreement dated 30.07.2018. The Government of Andhra Pradesh issued G.O.Ms.No. 136 dated 04.11.2019 incorporating the Andhra Pradesh Corporation for Outsourced Services (APCOS) with an intention to streamline the appointments who have been working under various modes like outsourcing, contract and daily wages and to create transparent, accountable and sustainable outsourcing ecosystem in the State. It is stated that, duly recognizing the services of the Petitioners by the Respondents, in the month of July 2020, the Petitioners who were working in the Government General Hospital, Kurnool through the agency were merged into the said Corporation vide Placement Intimation Letter PL No. PIL- DC-KNL-003672- 230420210504 dated 23.04.2021. Thereafter, surprisingly, the 5th respondent vide Proceedings in Rc. No. SPL/18 dated 30.10.2021 terminated the Petitioners from the services, which is invalid under law as the Housekeeping Services has agency Nakshatra no role in employment of the Petitioners, as such, the Proceedings issued by the 5th Respondent has no legal sanctity. Questioning the same, the present writ petition came to be filed.

4. The counter affidavits are filed in both the matters, for convenience, the averments in counter in W.P.No.466 of 2022 are stated as under:

5. In the counter affidavit filed by 5th respondent in WP No.466 of 2022, wherein, while denying the allegations made in the petition, inter alia, stated that, for implementation facility management systems under G.O.Ms.No.123 HM&FW(1.1) Dept. Dt.04.04.2018, the Director of Medical Education, A.P. Vijayawada, decided to engage a single agency for all Government Hospitals to avoid payment of Different package rates for different hospitals in hiring the services of Data Entry Operators(Front Desk operators & Nursing orderly) department wise. Accordingly an agreement was entered by the DME on 31.07.2018 with M/s. Nakshatra House Keeping Services for supply of Manpower for a period 03 years for all Govt. Hospitals in the state. Basing on the same the agency supplied the manpower i.e., petitioners and they were continued up to 31.10.2021. In this regard, the outsourcing agency i.e., M/s. Nakshatra House Keeping Services, Nerrawada(v), Bhadripalli (p), Chapadu (m), Kadapa District been provided the following cadres outsourcing basis to Govt. General spital, Kurnool from November-2018 to 31.10.2021.

1. Front Desk Managers - 06 Members

2. Nursing Orderly - 42 Members

The DME Vide Rc.No.DME/P1/2018, Dt.21.08.2018, has issued directions to pay the contract amount to the agency from the Dr. YSR Aarogyasri - HDS Funds of the Concerned Institutes (In this case GGH, Kurnool) only. In respect of petitioners, who were appointed through agency purely on temporary basis and their salaries paid from Arogyasri funds. Further they were continued up to the tenure /agreement with the Nakshtra agency and their services have been disengaged. It is further stated that, now the Government released certain posts of various categories vide G.O.Ms.No.140 & 141 HM&FW(A1) Deptt., Dt.17.11.2021 and

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