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2025 Supreme(HP) 1303

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Ranjan Sharma, J.
Gauri Shankar - Petitioner
Versus
Himachal Road Transport Corporation and another - Respondents
CWPOA Nos.2838 and 2884 of 2020
Decided On : 10-10-2025

Advocates:
Advocate Appeared:
For the Petitioners:Mr. Vikas Rajput, Advocate
For the Respondents:Mr. Raman Jamalta, Advocate

Contractual employees appointed before service regulations permitted such mode entitled to deemed regularization after one year with retrospective consequential benefits on parity, arrears limited to 3 years prior to filing.

Headnote:(A) Road Transport Corporations Act, 1950 - Section 45 - Service Regulations, 1996 - Contractual appointments of conductors made in 2004-2005 prior to amendment incorporating contractual mode on 03.08.2006, which applies prospectively - No provision for contractual appointment at time of initial engagement - Entitlement to regularization after completion of one year contractual service with all consequential benefits like seniority, pay fixation, arrears - Retrospective regularization from date of one year completion - Parity with similarly placed employees mandated, treating equals as unequals violates Articles 14 and 16 - Arrears limited to 3 years prior to filing per settled law - Interest at 6% if delayed. (Paras 3, 7, 10, 11)

(B) Estoppel - Cannot operate against statutory right to regular appointment under service regulations in force at time of appointment - Executive decisions cannot retrospectively alter statutory regulations without amendment. (Paras 8, 16)

Facts of the case:
Petitioners, conductors appointed on contract basis in 2004-2005 when service regulations permitted only regular appointments, regularized after 8 years in 2012. Seek retrospective regularization from completion of one year service with benefits, relying on practice and prior judgments where similarly placed granted relief, affirmed by higher courts.

Findings of Court:
Petitioners entitled to all service benefits as extended to others, including retrospective regularization from one year completion date, pay fixation, seniority, ACPs; arrears for 3 years prior to filing; benefits by 31.12.2025, else 6% interest.

Issues: Entitlement to retrospective regularization and benefits for pre-amendment contractual appointees; applicability of parity and non-discrimination; limitation on arrears.

Ratio Decidendi: Service regulations in force at appointment time govern; contractual mode introduced prospectively cannot prejudice earlier appointees; consistent practice of one-year regularization binds; equals must be treated equally to avoid constitutional violation.

Result: Writ petitions allowed.

Table of Content
1. pre-2006 contract appointments entitle one-year regularization. (Para 1 , 2)
2. appointments valid under 2003 government policy. (Para 4)
3. precedents grant retrospective regularization after one year. (Para 5)
4. respondents concede benefits to similar employees. (Para 6 , 7)
5. 1996 regulations require regular pay; 2006 prospective; no estoppel. (Para 8)
6. parity mandates equal treatment for similarly situated. (Para 9 , 10)
7. retrospective benefits with three-year arrears limit. (Para 11)

JUDGMENT :
Ranjan Sharma, Judge

The petitioners in both the petitions, being Conductors in the Respondent-Corporation have come up before this Court, seeking similar following reliefs:-

i) The respondent may kindly be directed to regularize the services of applicant after completion of one year with all consequential benefits like seniority, pay fixation and arrears etc in view of R&P rules/policy applicable at the time of their appointments.

ii) That respondents may kindly be directed to implement their own memo/communication dated 4.2.2017 (annexure A-3) in its true and letter and spirit.

iii) That orders passed by the respondent vide which representations of the applicants have been rejected, may be declared null and void as contrary to factual as well legal aspect of the matter, and same may be quashed and set aside.

iv) Any other or further orders which this Administrative Tribunal deem fit and proper in the facts and circumstance of the case may kindly be passed in favour of the applicants and against the respondents under law.

v) That order passed by the respondents on the representation of applicants may be declared as void and same may be quashed and set aside being contrary to the rules and settled legal position.

vi) That entire relevant record of the case may very kindly be summoned from respondents for kind perusal of this Hon’ble Court.”

FACTUAL MATRIX:

2. Precisely, the case set by Mr. Vikas Rajput, Advocate, is that the petitioners were appointed as Conductors on contract basis in Respondent-Corporation, upon due selection/interview held in the year 2004-2005.

3(i). Grievance of petitioners is that at the time of their initial appointment on contract basis, there was no provision in the Recruitment and Promotion Regulations for appointment on contract basis. The aforesaid provision for contractual appointments was incorporated in the Service Regulations, by the Respondent-Corporation on 03.08.2006 [Annexure A-1]. It is the case of the petitioners that once the Respondent- Corporation has given the benefit of regular appointment/regularization after completion of one year’s of contractual service, as per existing practice in the Corporation, then the action of Respondent- Corporation in regularizing the petitioners after about 8 years in the month of December, 2012 was improper.

3(ii). In the above backdrop, Learned Counsel, submits that Respondent-Corporation had appointed petitioners as Conductors, on contract basis, during the years 2004-2005 when, no such provision for appointment on contractual basis existed in the Recruitment and Promotion Regulations notified by the Respondent-Corporation at the relevant time. It is further submitted that the Respondent-Corporation took a decision for making contractual employment only on 03.08.2006 and that too the aforesaid contractual mode of employment, incorporated in the regulations was to apply prospectively and the same could not have been applied retrospectively as has been done in the instant case. In these circumstances, it is submitted by learned counsel for the petitioners that the petitioners are entitled to be treated as regular Conductors on completion of one year of contractual service but were regularized in December, 2012 and they are also entitled for service benefits like pay fixation, ACPs, seniority and monetary benefits, etc. in terms of the judgement passed by the Division Bench of this Court in Vikram Singh versus Himachal Road Transport Corporation , CWP



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