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2025 Supreme(Jhk) 1055

IN THE HIGH COURT OF JHARKHAND AT RANCHI 
SUJIT NARAYAN PRASAD, RAJESH KUMAR, JJ.
Aita Oraon, son of Somra Oraon - Appellant 
Versus
The State of Jharkhand  - Respondent 
L.P.A. No. 485 of 2024, L.P.A. No. 544 of 2024, L.P.A. No. 547 of 2024
Decided on : 28-04-2025

Advocates:
Advocate Appeared:
For the Appellant :Mr. Ajit Kumar, Sr. Advocate, Mr. Shresth Gautam, Advocate, Mr. Yogendra Yadav, Advocate
For the Respondent:Mr. Sunil Kumar, Advocate, Mr. Indranil Bhaduri, SC-IV, Mr. J.F. Toppo, GA-V, Mr. Prashant Kumar Singh, Advocate

The court established that contractual employees do not have an automatic right to continued employment beyond the expiration of their contract, affirming the exclusive nature of terms defined in said contracts.

Headnote:(A) Constitution of India - Article 226 - Letters Patent Appeal - Appellants were terminated after the contract period under the 14th Finance Commission and did not secure reappointment under the 15th Finance Commission, leading to dismissal of writ petitions. Courts ruled that contractual appointments lack entitlement to continuation post-contract expiration. (Paras 10, 26, 30, 46)

(B) Service Law - Contractual employment - A contractual employee does not possess inherent rights to continued employment once the term expires. Courts emphasized that unilateral changes in employment agreements contravene the terms of the original contract. (Paras 10, 40, 45)

Facts of the case:
Appellants, appointed under the 14th Finance Commission for a limited period, contested termination after the contract's expiry, citing eligibility for roles under the 15th Finance Commission. They argued for continued service based on satisfactory performance and eligibility.

Findings of Court:
It was determined that the appellants were merely contractual employees with no entitlement to extension beyond their contract and had been granted the opportunity to apply for new roles but failed to qualify.

Issues: Whether the appellants had any accrued rights to continued employment post-contract and if positive direction could be granted for reappointment upon engaging in a new selection process.

Ratio Decidendi: The court found that contractual rights do not confer the right to continuation in service after the contractual period, ruling that appointments are defined strictly by contract terms, and employees cannot claim rights beyond those provisions.

Result: Appeals dismissed.

Table of Content
1. common appeals heard together. (Para 1 , 2)
2. facts regarding contractual appointments. (Para 4 , 5 , 6 , 7 , 8)
3. arguments for continuation of service. (Para 11 , 12 , 13)
4. court's observations on contractual agreements. (Para 15 , 16 , 19 , 21 , 22 , 24)
5. rights under contract not absolute. (Para 25 , 26 , 33 , 34)
6. distinction between contract and ad hoc appointments. (Para 36 , 38 , 44)
7. appeals dismissed; judgment upheld. (Para 46 , 48 , 49)

JUDGMENT :

Sujit Narayan Prasad, J.

1. All the appeals are since arising out of the common order and as such directed to be heard together and accordingly listed together for its analogous hearing.

2. The matter has been heard together with the consent of the learned counsel appearing for the parties.

3. All the appeals are under Clause 10 of the Letters Patent Appeal directed against the common order dated 18.06.2024 passed by learned Single Judge of this Court in writ petition being W.P.(S) No. 1164 of 2021 with W.P.(S) No. 2892 of 2021 and W.P.(S) No. 3542 of 2021, whereby and whereunder, the prayer for consideration of continuation in service of the writ petitioners-appellants has been denied by dismissing the writ petitions.

4. The brief facts of the case as per the pleading are that under the aegis of 14th Finance Commission launched by the Government of India, the Government of Jharkhand in its Department of Rural Development (Panchayati Raj), sanctioned various posts of Accounts Clerk-cum Computer Operator, Junior Engineers, Assistant Engineers and Executive Engineers. By notification contained in Memo No. 80 dated 28.4.2016, the State Government laid down the requisite qualifications for appointment and examination process as well as service conditions. Thereafter, the concerned Deputy Commissioners of the district issued a press release on 30.5.2016 inviting applications for the posts of Junior Engineers/Accounts Clerk-cum-Computer Operator. Similar advertisements for appointment on various posts were also published by other districts of the State. Being eligible in all respects, the petitioners applied for appointment on the post of Junior Engineers/Accounts Clerk-cum Computer Operators. All the petitioners were called for efficiency test and computer test and after being found successful in all the tests, they were appointed on the post of Junior Engineers/Accounts Clerk-cum-Computer Operators. Thereafter, all the petitioners were posted in different blocks and were discharging their duties with full satisfaction of the authorities. It is specific case of the petitioners that though they were appointed under the 14th Finance Commission for a period of five years, which was supposed to come to an end on 31.03.2020, but their services were extended till 31.12.2020 with assurance that they shall further be continued. However, the State Government vide notification dated 19.2.2021 initiated fresh selection process on the posts against which the petitioners are continuing on contractual basis for implementation, monitoring and execution of the works related to scheme under 15th Finance Commission on same set of eligibility criterion. Hence, the petitioners were constrained to knock the door of this Court with utmost apprehension that their services might be discontinued.

5. It is evident from the factual aspect, as per the pleading made as referred hereinabove, is that the appellants had been appointed as Junior Engineers/Accounts Clerk-cum-Computer Operators, on contractual basis, on the basis of the decision taken in the 14th Finance Commission.

6. The appellants had started discharging their duties, based upon the contract entered in between the employer, the state functionary and the one or the other appellants.

7. After expiry of the tenure of the 14th Finance Commission, which was replaced by 15th Finance Commission the services of the appellants were not continued, rather an advertisement has been floated to engage another appointee, however, the appellant

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