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MADHURESH PRASAD, CHAKRADHARI SHARAN SINGH
Indradeo Singh Seva Sansthan through its Secretary Rajgaurav – Appellant
Versus
State of Bihar through the Principal Secretary, Department of Health, Government of Bihar, Patna – Respondent
JUDGMENT :
CHAKRADHARI SHARAN SINGH. J,
1. It appears from the pleadings on record that the State of Bihar has, in policy, decided to outsource certain services for maintenance and functioning of the hospitals in the State e.g. sanitation cleaning, lighting and laundry. The petitioner asserts that it is a registered welfare society and the work for sanitation of hospitals, namely, Sadar Hospital, Bhabhua, Referral Hospital Mohania, Referral Hospital, Ramgarh, Referral Hospital, Aghaura, Primary Health Centres at Bhabhua, Chainpur, Chand, Kudra, Durgavati, Rampur, Bhagwanpur, Nuwao all in the District of Kaimur (Bhabhua) was outsourced to it after a notice inviting tender, pursuant to which it had participated amongst others and had become a success.
2. The work order was issued on 02.09.2020. The agreement was subsequently signed between the Society and the Civil Surgeon-cum-Secretary, District Health Society (DHS for short). Indisputably, the term of agreement was for one year. It was, however, provided in the agreement that in case of satisfactory performance of work, the District Magistrate-cum-Chairman, DHS could extend the period of contract for a maximum period of three years, o
Termination of outsourced employees merged into APCOS deemed illegal; court directed continuation of services and payment of due salaries.
Point of law: in the exigencies and the requirements of the State, the State can resort to award the contract on nomination basis and insisting the State in all circumstances to award the contract on....
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.
Contractual employees do not have an inherent right to contract renewal; their rights depend on explicit terms. Outsourcing policies are typically non-reviewable by courts.
The court affirmed the state's right to outsource non-core public employment functions, limiting judicial review to cases of extreme arbitrariness.
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