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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Delhi Parshashan Vikas Vibhag Industrial Employees Union - Appellant
Versus
Department of Social Welfare - Respondent
W.P.(C) 8498 of 2021 & CM Appls. 26334-35 of 2021, W.P.(C) 8561 of 2021 & CM Appls. 26472-73 of 2021, W.P.(C) 7616 of 2021 & CM Appl. 23833 of 2021, W.P.(C) 7788 of 2021 & CM Appls. 24277-78 of 2021, W.P.(C) 7843 of 2021 & CM Appls. 24391-92 of 2021, W.P.
Decided On : 25-08-2021




Contractual employees lack permanent rights without regularization; existing employees must be retained under new contracts due to legal mandates.

Headnote:(A) Industrial Disputes Act, 1947 - Section 33 - General Financial Rules, 2017 - Writ petitions filed by Data Entry Operators (DEOs) challenging the issuance of new contracts for their roles via GeM portal while seeking regularization of their services due to apprehension of termination - The existing DEOs were assured retention under new contracts, ensuring their ongoing employment status. (Paras 6, 12, 16)

(B) Employment Contracts - Nature of contractual service indicates that DEOs cannot claim permanent rights; claims for regularization are subject to the outcomes of pending Labour Court proceedings. (Paras 12, 15)

(C) Administrative Actions - Respondents mandated by General Financial Rules to employ DEOs via competitive bidding; however, conditions stipulated for retention of existing DEOs to protect their employment rights. (Paras 5, 16)

Facts of the case:
DEOs associated with various departments were engaged on a contractual basis through agencies. They sought to maintain their service conditions amid new hiring processes initiated by the government under the GeM portal. (Paras 2-3, 5)

Findings of Court:
Existing DEOs will continue to be employed despite new contractor selection, provided satisfactory performance. The directives also emphasized compliance with Section 33 regarding service condition changes. The court did not assess the merits of the ongoing regularization proceedings. (Paras 16-18)

Issues: The primary issues were the contractual nature of DEOs' employment, apprehensions of termination due to new hires, and the applicability of Section 33 of the ID Act in pending regularization requests. (Paras 6, 8)

Ratio Decidendi: The court determined that contractual employees had no permanent rights unless regularized through the Labour Court, while ensuring retention of existing DEOs under new contracts was compliant with governmental mandates for competitive bidding. (Paras 12, 15)

Result: The writ petitions were disposed of with instructions for compliance regarding service conditions and retention of DEOs.

Table of Content
1. details of deo employment status (Para 2 , 3 , 4 , 5)
2. petitioners seek service condition stability (Para 6 , 7)
3. arguments presented by petitioners (Para 8 , 10)
4. court's reasoning on deo contracts (Para 11 , 12 , 13 , 14 , 15)
5. directions for contract retention (Para 16)
6. final order and disposition of petitions (Para 17 , 18)

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done through video conferencing.

2. These are writ petitions, which have been filed by Data Entry Operators (hereinafter "DEOs") engaged in various Departments forming part of the GNCTD, Delhi such as the Chief Electoral Officer, GNCTD; Department of Social Welfare, GNCTD; Department of Training and Technical Education, GNCTD etc.

3. The case of these DEOs is that they have been working in their respective Departments for several years and they were engaged through two different agencies, namely, NIELT and ICSIL in the various writ petitions. The services of these DEOs were extended from time to time for a period of one year. The last such extension, which is granted in each of the cases, is different. However, most extensions were ending sometime in May/June 2021

4. The brief background is that the Petitioners, in all these Petitions, were employed in their respective Departments on a contractual basis, through agencies, namely Intelligent Communication Systems India Limited (hereinafter, "ICSIL") and National Institute of Electronics and Information Technology (hereinafter, "NIELIT"), who have been impleaded in the respective writ petitions. The details of the same, in respect of each of the present petitions are captured below:

Writ Petition No.Government DepartmentAgencyDate of termination of contractCurrently continuing or discontinued
WP(C) 8498/2021Department of Social Welfare, GNCTDICSIL4th December 2020, or till regular incumbents are postedContinuing
WP(C) 8561/2021Chief Electoral OfficerNIELIT31st July 2021Discontinued however re- engaged due to an interim order by the High Court
WP(C) 7616/2021Chief Electoral OfficerNIELIT31st July 2021Discontinued, however re- engaged due to an interim order by the High Court
WP(C) 7788/2021Department of Social Welfare, GNCTDICSIL4th December 2020, or till regular incumbents are postedContinuing
WP(C) 7843/2021Chief Electoral OfficerNIELIT31st July 2021Discontinued, however re- engaged due to an interim order by the High Court
WP(C) 7847/2021Department of Social Welfare, GNCTDNIELIT1st April 2022 or till regular incumbents are postedContinuing
WP(C) 8068/2021Department of Training and Technical, GNCTDNIELIT27th November 2021 or till regular incumbents are postedContinuing
WP(C) 8903/2021Chief Electoral OfficerNIELIT31st July 2021Discontinued, however re- engaged due to an interim order by the High Court.
WP(C) 8951/2021District Magistrate, Central, GNCTDNIELITExpired on 30th June 2021 although extended from July 2021, till the GeM hiring is completedContinuing

5. The contracts qua each of the Petitioners/DEOs were extended from time to time by the Respondents. The Respondents then decided to issue fresh NITs to procure the services of DEOs, on the Government -e- Market (hereinafter, "GeM") portal, due to the operation of the General Financial Rules, 2017 (hereinafter, "GFR, 2017), which under Rule 149, makes it mandatory to procure goods and services from the said portal. Owing to the same, the Petitioners in all these petitions apprehended their termination from contractual service.

6. Due to the said apprehension, the Petitioner- DEOs approached the appropriate labour Authority under the Industrial Disputes Act, 1947 (hereinafter referred as "the ID Act") and sought regularization under the provisions of the ID Act. Section 33 of the ID Act, which provides that conditions of service etc. have to remain unchanged under certain circumstances, during pendency of proceedings, was also pressed by the DEOs. The Assistant Labour Commissioner (hereinafter, "ALC"), vide orders pa


























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