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2025 Supreme(Del) 212

IN THE HIGH COURT OF DELHI AT NEW DELHI
Vibhu Bakhru, Tejas Karia, JJ.
 
Vandana Sharma & Ors. - Appellants 
Versus
Union Of India & Ors. - Respondents
LPA 321 of 2024 CM APPL. 23754 of 2024 CM APPL. 52912 of 2024, LPA 806 of 2024 CM APPL. 47710 of 2024
Decided On : 02-04-2025

Advocates Appeared:
For the Appellant :Mr. Rahul Shukla and Mr. Ramandeep Singh, Advocates
For the Respondent:Ms. Avshreya Pratap Singh Rudy, SPC, Ms. Usha Jamwnal, Ms. Harshita Chaturvedi, Mr. Siddhant Nagar, Advocates for Ms. Avnish Ahlawat, SC Mr. Nitesh Kumar Singh, Ms. Laavanya Kaushik, Ms. Aliza Alam, Mr. Mohnish Sehrawat, Advocates GNCTD.

The court upheld the Respondents' decision to close a health project and ruled that contractual employees are not entitled to regularization despite benefits received.

Headnote:

(A) Constitution of India - Entry 6, List II of Seventh Schedule - Employment Law - The Appellants, engaged as contractual employees in a health project, sought regularization and challenged the closure of the project. The court upheld the Respondents' decision to close the project based on comprehensive reports and policy considerations. (Paras 1, 19, 20, 21)

(B) Employment Rights - The court recognized the Appellants' service conditions but ruled that their contractual status did not change despite benefits received. The direction for consideration for regular appointments with age relaxation was upheld. (Paras 23, 24)

Facts of the case:
The Appellants were employed in a health project from 1999 to 2013 on a contractual basis. The project was discontinued in 2023, leading to the appeals against the dismissal of their writ petitions.

Findings of Court:
The court found no merit in the Appellants' claims regarding the continuation of the project and upheld the Respondents' decision to close it.

Issues: The main issues included the nature of the Appellants' employment, the legality of the project's closure, and the implications for regularization.

Ratio Decidendi: The court ruled that the decision to close the project was a policy decision and upheld the Respondents' discretion in employment matters.

Result: Appeals dismissed.

JUDGMENT :

TEJAS KARIA, J.

1. The present Appeals are preferred by the Appellants being aggrieved by the orders and judgments dated 28.02.2024 in W.P.(C) No. 13727/2023 and W.P.(C) No. 103/2024 respectively passed by the learned Single Judge of this Court ('impugned order') disposing of the said petitions while observing that since the Appellants have been serving the Respondents as “contractual employees” for many years, they would be considered for regular appointments in similar departments where regular recruitment drives are initiated.

2. The impugned order also directed that the Appellants shall be given due age relaxation in accordance with the rules and the years of actual service rendered towards experience shall also be considered relying upon the ratio laid down by the Hon'ble Supreme Court in Secretary, State of Karnataka & Ors. vs. Umadevi & Ors., (2006) 4 SCC 1 and University of Delhi vs. Delhi University Contract Employees Union & Ors., (2021) 16 SCC 71.

FACTUAL BACKGROUND

3. The Appellants were selected as part of the National Iodine Disease Deficiency Control Programme ('Project') and were appointed at Iodine Deficiency Disorder ('IDD') Lab established in the premises of Guru Tegh Bahadur Hospital, Shahdara, Delhi in the capacity of "Lab Technician", "Lab Assistant", "Technical Officer" and "Statistical Assistant" between the years 1999 to 2013 on "contractual basis." The terms of the appointment carried the benefits of pay scales applicable to Government of NCT of Delhi ('GNCTD'), including the other benefits and leaves.

4. On 30.06.2015, Respondent No.2/GNCTD through respondent No.4/Delhi State Health Mission ('DSHM') decided to have financial and administrative merger of the Project. As part of the financial merger, Respondent No.1, Union of India released the funds to Respondent No.2/GNCTD through Respondent No.4/DSHM. Consequent to the structural integration and merger, DSHM worked as an executive arm of Respondent No.3, State Health Society, Delhi. The merger recognized that the service conditions of the Appellants were different from other contract employees of DSHM.

5. Until 2018-19, the Appellants were paid emoluments in accordance with the terms agreed to under the appointment letters issued by Respondent No.2.

6. However, the dispute on engagement and release of wages to Appellant Nos. 3 & 4 was raised by Respondent Nos. 2 & 4 by describing their engagement "on Deputation Basis" and by disengaging Appellant Nos.1 & 2 in the financial year 2020-21.

7. Being aggrieved by the action of the Respondents, the Appellants preferred W.P.(C) 8851/2019, W.P.(C) 9619/2019, W.P.(C) 8143/2020, W.P.(C) 8144/2020, W.P.(C) 3096/2020 and W.P.(C) 3115/2020 before this Court. This Court, by various orders passed in the said writ petitions, protected the contractual employment and the salaries of the Appellants. However, by way of a common judgment dated 28.02.2024, the said writ petitions were dismissed by this Court.

8. By virtue of the order dated 03.10.2023 passed by Respondent No. 4, DSHM, the Project was discontinued w.e.f. 03.10.2023. The Appellants challenged the said direction dated 03.10.2023 by way of W.P. (C) 13727/2023 before this Court. During the pendency of the said writ petition, on account of certain facts emerging from the record/pleas raised in the said petition, writ petition being W.P.(C)103/2024 was preferred by the Appellants before this court seeking the directions as under:

“(i) requiring respondent no.1 to produce its decision on merger of NIDDCP into NHM as part of RCH Flexible pool in the year 2015 involving working and service conditions of petitioners identified and selected for petitioners working into said programme; and

(ii) requiring respondent no. 2 to 4 to produce its records relating to merger of NIDDCP into RCH Flexible Pool vide order dated 28.04.2023 and 03.10.2023 vis-a-vis petitioner’s engagement, and by directing respondents to continue petitioners engagements in the activities of NIDDCP

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