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2011 Supreme(Mad) 3666

High Court of Judicature at Madras
K. CHANDRU
Tamilnadu Arasu Paniyalar Sangam rep. by its President & Others
Versus
The Government of Tamilnadu rep. by its Secretary Health and Family Welfare Department & Others
W.P.Nos.13001 of 2008 & 3742 to 3748 of 2009
Decided on : 17-08-2011

Advocates appeared:
For the Petitioner:V. Ajoy Khose, M. Ravi, Advocates.
For the Respondents: V. Subbiah, Special Government Pleader.

The main legal point established in the judgment is that all government employments must adhere to recruitment rules, and the High Court cannot grant direction for the absorption of employees engaged through contractors.

Headnote:

Outsourced Employees - Employment Dispute - G.O.(D) No.15, Health and Family Welfare Department, dated 22.3.2005 - Rule 10(a)(i) of the General Rules - State of Karnataka v. Uma Devi(3), [2006] 4 SCC 1 - Steel Authority of India Limited and others v. National Union Waterfront Workers and others, [2001] 7 SCC 1

Fact of the Case:

The case involved a dispute regarding the absorption of outsourced employees in time scales of pay and other attendant benefits. The petitioners, a government employees association, sought direction for the absorption of outsourced employees, while the impleaded respondents challenged the termination of their services.

Finding of the Court:

The court dismissed the petition seeking absorption of outsourced employees, citing the policy decision to fill vacancies through outsourcing and the lack of connection between the government and the outsourced candidates. The court set aside the termination of directly recruited petitioners, noting that the termination was prompted by the pendency of another case and directed the respondents to pass appropriate orders if their services were not required for reasons other than the pending case.

Issues: The main issue was the maintainability of the writ petition and the termination of the directly recruited petitioners. The court also considered the conflicting interests of the outsourced and directly recruited employees.

Ratio Decidendi: The court relied on the State of Karnataka v. Uma Devi(3) case, emphasizing that all government employments must be made in accordance with recruitment rules. It also cited the Steel Authority of India Limited case, highlighting that the High Court cannot grant direction for the absorption of employees engaged through contractors.

Final Decision: The court dismissed the petition seeking absorption of outsourced employees, set aside the termination of directly recruited petitioners, and allowed the impleaded respondents' petitions. No costs were awarded.

JUDGMENT :-

1. In the first writ petition (W.P.No.13001 of 2008), the petitioner is a government employees association, by name Tamilnadu Arasu Paniyalar Sangam, represented by its President. The prayer in the writ petition is for a direction to respondents 1 to 7 to absorb the services of the outsourced employees in time scales of pay and other attendant benefits.

1.2. When the writ petition came up on 27.5.2008, this Court, after noting that in similar circumstances the Madurai Bench had given a direction to maintain status-quo and also in view of the fact that the members of the petitioner/association are liable to be terminated at any time, granted an order of status-quo. The writ petition was subsequently admitted on 15.7.2008. Pending the writ petition, interim injunction was granted until further orders and liberty was also given to the respondents to file a vacate stay petition. In the petition for grant of interim injunction restraining the respondents from making any fresh appointment, only notice was ordered and subsequently, on a vacate stay petition being filed, this Court rejected the vacate stay petition and the petition to restrain the respondents from making fresh appointment was also rejected. It was thereafter respondents 8 to 17 got themselves impleaded by filing a petitions in M.P.Nos.1 and 2 of 2009. On notice from this Court, the first respondent/ State has filed a counter affidavit dated 29.8.2008.

1.3. In the meanwhile, the matter was tagged along with W.A.No.426 of 2008 before a Division Bench, but however the Division Bench, by order dated 30.3.2010, directed the matter to be delisted from being heard along with the writ appeal and directed the matter to be dealt with by a Single Judge.

2.1. Even while the said writ petition was pending, the impleaded respondents, viz., L.Vivekanandan (11th respondent), G.Ravichandran (12th respondent), P.Sivaperuman (13th respondent), V.Sankar (14th respondent), V.Baskaran (15th respondent), R.Muthukumaran (16th respondent) and S.Muthuraman (17th respondent), filed W.P.Nos.3742 to 3748 of 2009. In that writ petitions, they have challenged the orders dated 9.3.2009 passed by the Deputy Director of Health Services, Nagapattinam, terminating the service of those petitioners. It was stated that though those petitioners were appointed on being sponsored through the employment exchange as Drivers under Rule 10(a)(i) of the General Rules for Tamil Nadu State and Subordinate Services and posted to the office of the Deputy Director and were working in the station, their services were terminated with effect from 9.3.2009, for want of vacancies and due to administrative reasons.

2.2. When those writ petitions came up on 4.7.2011, it was directed to be posted along with W.P.No.13001 of 2008. The writ petitions were admitted subsequently on 17.3.2009 and interim stay was granted of the termination until further orders. This Court passed the following order:

"15. In view of the above, the following order is passed in all the above miscellaneous petitions:

(a) There will be an interim stay of operation of the orders of termination dated 9.3.2009 passed by the Deputy Director of Health Services and Family Welfare, Nagappattinam against the petitioners in W.P.No.3742 to 3748 of 2009, until further orders.

(b) The interim injunction granted in M.P.N o.2 of 2008 in W.P.No.13001 of 2008 on 15.7.2008 is modified, to the effect that those appointed as Drivers in the Office of the Deputy Director of Health, Nagappattinam through outside agencies may be accommodated to the extent possible, in posts over and above the posts of Drivers occupied by the Employment Exchange sponsored candidates.

(c) It will be open to the respondents to come up with any application for modification, depending upon any contingency that may arise as a result of implementation of this order."

3. Thus, by the interim order, a peculiar situation was created, wherein in respect of the same post of driver, there were two s





































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