2000 Supreme(Raj) 1075
RAJASTHAN HIGH COURT
Rajesh Balia, Mohd.Yamin, JJ.
Dalamchand and others - Appellant
Versus
The State of Rajasthan - Respondent
Civil Special Appeal No. 21 of 1997.
Decided On : 14-03-2000
Advocates:
For the Appellant:M. S. Singhvi, Advocate.
For the Respondent:S. G. Ojha, Advocate.
The State Govt. is obligated to act fairly and without arbitrariness in altering employment terms, and any alteration must adhere to the principles of natural justice.
Headnote:
Contractual Appointment - Employment Terms - Guidelines Annexure/1 dated 24-12-1994 - Summary of Acts and Sections: Guidelines Annexure/1 dated 24-12-1994, Clauses (4), (5), (6), (7), (8), (9), and (15)
Fact of the Case:
The petitioners were retrenched employees of a public sector undertaking and were appointed on a contractual basis for a fixed term. The State Govt. later altered the terms of their appointment, resulting in a reduction in pay and recoveries from their salaries. The petitioners filed a writ petition seeking relief.
Finding of the Court:
The court held that the State Govt. had acted unfairly and in violation of natural justice by altering the terms of appointment without notice or opportunity for the petitioners to be heard. The court set aside the impugned orders and directed the State Govt. to consider renewal of the petitioners' contract appointments.
Issues: Unfair alteration of employment terms, reduction in pay, recoveries from salaries, breach of natural justice, renewal of contract appointments
Ratio Decidendi: The State Govt. is obligated to act fairly and without arbitrariness in altering employment terms, and any alteration must adhere to the principles of natural justice. The court also emphasized that the State Govt. must consider renewal of contract appointments based on satisfactory conduct and work of the employees.
Final Decision: The appeal was allowed, the impugned judgment was set aside, and the State Govt. was directed to consider renewal of the petitioners' contract appointments.
JUDGMENT
1. :- This appeal is directed against the Judgment dated 4-12-1996 passed by the learned single Judge in S. B. Civil Writ Petition No. 4364 of 1996, whereby the writ petition filed by the petitioners-appellants was dismissed.
2. The brief facts leading to this appeal are : that the petitioners-appellants were employees of Rajasthan Small Industries Corporation in its Unit at Churu, which is a public sector undertaking. On account of the closure of the said Company, the petitioners were retrenched from service on 30-11-1994. Thereafter, on 24-12-1994, the State Govt. laid down guidelines for engaging retrenched employees of the Public Sector Undertakings on contract. The Preamble of the said Guidelines (Annexure/1) dated 24-12-1994 reads as under :It has been decided in the State Bureau of Public Enterprises Department that retrenched employees of Public Sector Undertakings may be engaged as far as possible in State Govt. Departments on contract basis. The question of framing guidelines detailing the terms of contractual appointment of such employees has been under consideration of the Govt. and the following Guidelines have been framed which are hereby circulated for the information of all the Departments of the Government :"
3. The above Preamble of the Guidelines (Annexure/1) dated 24-12-1994 goes to show that these guidelines were of general nature concerning offering appointments to employees who were retrenched from different Public Sector Undertakings within the State.
4. In pursuance of these guidelines, the petitioners were appointed as Class IV employees in the pay scale of Rs. 750-940 on contract basis for a period of five years or until completion of 58 years of age, whichever is earlier vide order (Annexure/3) dated 22-4-1995 and they were given postings at different places vide order Annexure/4 dated 28-4-1995. Their pay fixation was made vide order (Annexure/5) dated 26-5-1995. From the perusal of the order (Annexure/5) dated 26-5-1995. it appears that the pay of petitioners Jagdish Prasad Deora, Satya Narain Soni, Dalamchand Soni and Chhaganlal Sharma was fixed in the pay scale of 730-1250 whereas the pay of other petitioners viz., Ghasilal Sharma, Peeru Khan, Hariram Mali, Lai Chand Prajapat, Bhanwarlal Saint, Mustaq Khan, Satyanarain, Om Prakash Prajapat, Keshar Deo Saint, Balkrishna Sharma and Mohanlal Soni was fixed in the pay scale of 700-865. After fixation of their pay, the petitioners were getting their salary Inclusive of their basic pay, Dearness Allowance and other allowances as granted by the State Govt. from time to time. However, after about one year and four months from the date of their fixation of pay, in supersession of previous order Annexure/5 dated 26-5-1995 the petitioners were granted salary inclusive of their Basic pay and the fixed amount of Dearness as mentioned therein and Rs. 50/- per month were also ordered to be paid to the petitioners as Medical Allowance. It was also ordered that no deductions shall be made from the salary of the petitioners and if any amount is paid in excess to above, the same was ordered to be recovered.
5. Against this order (Annexure/6) dated 9-9-1996, the petitioners made representations to the respondents but when nothing was done in the matter, they preferred S. B. Civil Writ Petition No. 4364 of 1996 before this Court inter alia seeking following reliefs :a. by an appropriate writ, order or direction, the order dated 9-9-1996 (Annexure/ 6) may kindly be declared illegal and be quashed with all consequential benefits to the petitioners. The respondents may be directed to refund the amount recovered from the petitioners in pursuance of the order dated 9-9-1996;b. by an appropriate writ, order or direction, the conditions No. 5 and 7 of the order dated 24-12-1994 be declared illegal and struck down and the respondents be directed to treat the petitioners as regular Govt. employees with entitlement to all benefits which are admissible to other Govt. empl
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