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2026 Supreme(Mad) 1041

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
N. SATHISH KUMAR, M. JOTHIRAMAN, JJ.
K. Vinoth Kumar – Appellant
Versus
The Director of Agriculture, Chennai – Respondent
W.A. (MD) Nos. 267 of 2023, 1842 to 1845 of 2024, 360 of 2026, C.M.P. (MD) Nos. 3221 of 2023, 13939, 13944, 13950, 13954 of 2024, 3309 of 2026
Decided On : 02-06-2026

Advocates Appeared:
For the Appellant : T. Lajapathi Roy
For the Respondents: Veerakathiravan, A. Kannan

Contractual employees engaged through outsourcing agencies without public recruitment protocols hold no vested right to continue service. Their termination, particularly during investigations into fraudulent activities, is legally valid and not subject to interference under writ jurisdiction absent proof of perversity or illegality.

Headnote:(A) Constitution of India - Article 226 - Judicial review - Termination of service - Contractual employees under a government scheme - High Court exercising jurisdiction over termination of contractual staff - Termination of contractual engagement for alleged involvement in fraudulent activities does not require elaborate departmental inquiry, provided principles of natural justice are met at a minimum level. (Paras 9, 26)

(B) Service Law - Contractual appointment - Recruitment through outsourcing agencies - Absence of recruitment via standard government norms (e.g., public service commission or employment exchange) - Employees engaged through private outsourcing agencies have no legitimate right to continue in service when breach of contract occurs or when systemic irregularities/scams are identified. (Paras 11, 19, 23)

Facts of the case:
The respondents were engaged as contractual staff under a centrally sponsored government scheme through private outsourcing agencies. Following allegations of fraudulent activities regarding beneficiary enrollment in a government welfare portal, the official respondents initiated termination of their services. The writ petitions challenged these terminations, with the writ court in some instances setting aside the terminations for failure to adhere to principles of natural justice, while dismissing one petition on the ground that the appointment was purely contractual.

Findings of Court:
The court observed that the petitioners were engaged through outsourcing agencies with specific terms stating no claim to employment or compensation. Given the serious nature of the allegations involving misuse of portal credentials and financial fraud, the termination orders issued by the competent authority were found to be within the scope of the contract and devoid of illegality or perversity.

Issues: Whether the termination of contractual employees engaged through outsourcing agencies, without a formal departmental inquiry, violates principles of natural justice, and whether such termination is subject to judicial review under Article 226 when there is no permanent employment right.

Ratio Decidendi: Contractual employees, especially those recruited via outsourcing agencies without adhering to standard public recruitment procedures, possess no vested right to service. Where an appointment is purely temporary and governed by contractual terms, and where serious allegations of administrative impropriety exist, the employer retains the right to terminate the contract. Judicial review is limited to cases of illegality or perversity, which was not established in these instances.

Result: Appeal WA.(MD)No.267 of 2023 dismissed; other appeals (WA.MD.Nos.1842 to 1845 of 2024 and 360 of 2026) allowed; impugned orders set aside.

Table of Content
1. consolidation of multiple writ appeals involving common issues for a joint hearing and disposal. (Para 1 , 2)
2. factual background regarding the atma scheme, the contractual nature of the employees, and the allegations of fraud leading to termination. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 13 , 14 , 15 , 16 , 17)
3. contentions regarding the applicability of natural justice to contract employees versus the validity of terminal action based on contractual breach. (Para 10 , 11)
4. contractual employees have no inherent right to regular employment and their termination is valid per contract terms when misconduct occurs. (Para 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26)
5. formal court order: dismissal of the appeal by the petitioner and allowance of state appeals against reinstatement. (Para 27)

JUDGMENT :

M. JOTHIRAMAN, J.

1. The present intra Court appeals have been instituted challenging the writ orders passed in the writ petitions on different dates. Since the issues to be considered are common, these writ appeals have been tagged together, heard together and are being disposed of by this common judgment.

2. The unsuccessful writ petitioner has preferred writ appeal in WA.(MD)No.267 of 2023. All other writ appeals have been filed by the unsuccessful official respondents.

3. It is the case of the appellant/writ petitioner in WP.(MD)No.14175 of 2020 that Centrally Sponsored Scheme namely "Support to State Extension Program for Extension Reforms Scheme (SSEPERS)- Agricultural Technology Management Agency (ATMA)” is being implemented to operate the Agricultural Extension Reforms across the country. This scheme is being implemented in 385 blocks of all 31 Districts of Tamil Nadu except Chennai, following the guidelines issued by the Government of India. In the guidelines, the State Government is permitted to engage the Block Technology Manager (BTM) and Assistant Technology Manager (ATM) on contract basis through the mechanism identified by the State with graduate in Agriculture/Allied Sector as educational qualification. The Government of India has released the required funds for implementation of the said Scheme in the ratio of 60:40 between the Central Government and the State Government. As per ATMA Guidelines, the posts of Block Technology Manager and the Assistant Technology Managers can be engaged at block level on contract basis to carry out the extension activities. As per the said scheme, the New Life Placements Private Limited appointed the petitioner as Block Technology Manager in Budalur Block, Thanjavur District. Initially, he was appointed as Assistant Technology Manager and it was in temporary basis. He was paid with monthly honorarium of Rs. 20,000/- and monthly allowance of Rs.5000/-. Periodically, his contract employment was extended by the New Life Placements Private Limited and the appellant is continuously working as Block Technology Manager at Agricultural Technology Management Agency (ATMA) Project in the office of the Assistant Director of Agriculture, Budalur Block, Thanjavur District. However, all of a sudden, without issuing any notice and conducting any enquiry, the service of the appellant was terminated by the second respondent. The learned Writ Court by an order dated 23.01.2023 dismissed the writ petition on the ground that the appellant was engaged only based on the scheme and no appointment order was issued to him. Hence, the termination order issued by the officials is perfectly valid and there is no need to issuing show cause notice before issuing the order of termination. Aggrieved over the same, the writ petitioner has preferred WA.(MD)No.267 of 2023.

4. The first respondent in WA.(MD)No.360 of 2026/ K.Chandramohan has challenged the termination order issued by the officials. According to him, he was working as temporary contractual employee under ATMA scheme. By the impugned order dated 29.09.2020 by the District Collector, Dindigul, he was terminated from service. The learned Writ Cou

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