Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(HP) 570

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Satyen Vaidya, J.
Bhupinder Singh Mehta and Ors. - Petitioners
Versus
State of Himachal Pradesh and Ors. - Respondents
CWPOA No. : 2979 of 2020
Decided On : 18-03-2025

Advocates:
Advocate Appeared:
For the Petitioner:Mr. Onkar Jairath, Advocate.
For the Respondent:Mr. Hemant Kumar Verma, Deputy Advocate General

The court established that contractual employees performing governmental functions are entitled to regularization under state policy, reinforcing the principles of equality and legitimate expectation.

Headnote:
(A) Constitution of India - Articles 14 and 16 - Regularization of services - Petitioners, after serving for 22 years in various capacities, sought regularization under the State's policy for contractual employees after completing three years of service - Respondents denied regularization based on the petitioners' engagement in CAMPA, asserting their non-governmental status - Court found that the petitioners were performing governmental functions and were entitled to regularization based on legitimate expectation and equality principles. (Paras 22, 25, 26)

(B) Legitimate Expectation - The court emphasized that the denial of regularization to petitioners, who performed governmental functions, violated their legitimate expectations and was arbitrary and discriminatory. (Paras 22, 25)

Facts of the case:
Petitioners were initially appointed as Computer Operators on a contractual basis and later engaged by CAMPA. They claimed entitlement to regularization after completing three years of service as per the State's policy. (Paras 2, 4, 9)

Findings of Court:
The court ruled that the petitioners were entitled to regularization as they had been performing governmental functions for a substantial period, and the denial of their regularization was arbitrary and discriminatory. (Paras 25, 26)

Issues: Whether the respondents' denial of regularization to the petitioners, who had served for 22 years, was justified, considering their engagement in CAMPA. (Paras 25, 26)

Ratio Decidendi: The court held that the petitioners' long service and performance of governmental functions entitled them to regularization under the State's policy, and the denial was against the principles of equality and legitimate expectation. (Paras 22, 25)

Result: Petition allowed; respondents directed to regularize the services of the petitioners.

JUDGMENT :

Satyen Vaidya, J.

By way of instant petition, petitioners have prayed for following substantive relief(s):

“That the respondents may be directed to regularize the services of the applicants on completion of three years of service with all consequential benefits.”

2. Petitioners were appointed as Computer Operators on contract basis in Sutlej Valley Watershed Development Society (for short “Society”) in the month of March 2004. The Society was closed vide notification dated 05.05.2012 and consequently the services of petitioners also came to end w.e.f. 30.06.2012.

3. Thereafter, petitioners were engaged by respondent No. 3 as computer operators on contract basis and were deputed with Compensatory Afforestation Fund Management and Planning Authority (for short, “CAMPA”). Petitioners are continuing to work in the same capacity till now.

4. Petitioners are seeking regularization of their services on completion of three years of contract service with respondents under the regularization policy of the State Government dated 04.05.2017 (A-7).

5. The specific case of the petitioners is that after closure of project their services have been utilized by respondents through respondent No. 3 on contractual basis. The contract for such purpose was entered into between the petitioners and the 3rd respondent.

6. Respondents have contested the claim of the petitioners on the ground that the petitioners have been re-engaged under CAMPA on contract basis w.e.f. 05.02.2013 and as per Clause-6 of the contract signed by the petitioners, it was made clear that their appointment was non-governmental. Further by making reference to Caluse-9 of the contract, it has been asserted that the petitioners had entered into a contract by agreeing not to claim any right for regular employment. The facts with respect to initial engagement of petitioners as Computer Operators on contract basis in the society and the closure of the society have not been denied.

7. Respondents have further submitted that the CAMPA is a also society constituted for the implementation of Catchment Area Treatment Plans (CAT Plans) for various Hydro Electric Projects being executed in Sutlej Valley Basin. The services of petitioners are stated to be governed by the bye laws of CAMPA.

8. I have heard learned counsel for the parties and have also gone through the record of the case carefully.

9. Noticeably, petitioners are not seeking any benefit of service rendered by them in the society. They are placing reliance on the communication dated 04.05.2017 (A-7), addressed by Additional Chief Secretary (Personnel) to the Government of Himachal Pradesh, whereby the decision of the government to regularize the services of those contractual appointees who had completed three years continuous services as on 31.03.2017, had been conveyed. Petitioners claimed that since, they had also completed three years continuous services on contract with respondents, they were also entitled to be regularized on completion of period of three years.

10. The only objection of respondents is that because the services of the petitioners have been engaged for the CAMPA, hence communication dated 04.05.2017, was not applicable to them.

11. In order to assess the true nature of the services of petitioners, it is necessary to have a glance at relevant material available on record as under:

11.1 On 17.05.2012, a communication was sent by DFO CAT Plan, Nichar at Rampur to Member Secretary of the Society-cum-Conservator of Forests, Rampur seeking guidance as to how the staff engaged in the project after its closure was to be treated. It was highlighted that the staff in the project was engaged due to shortage of departmental staff posted in CAMPA. The availability of funds to engage contractual staff under various ongoing CAT Plans was also mentioned. It was stated that the fund transferred to society had earned interest of about Rs. 1 Crore, which could be utilized to re-engage the staff of the society in CAMPA. As per sa