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2026 Supreme(Mad) 1257
IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. Suresh Kumar, N.Senthilkumar, JJ.
V.Mani, S/o.Vellappa Gounder - Appellant
Versus
The Government of Tamil Nadu Represented by Additional Chief Secretary to Government, Rural Development and Panchayat Raj Department – Respondent
WA No. 937 of 2026, WA No. 944 of 2026,WA No. 998 of 2026, WA No. 945 of 2026,WA No. 986 of 2026,WA No. 960 of 2026
Decided On : 22-04-2026
For the Appellant : Mr. R. Nandha Kumar,
For the Respondent: Mr. S. Yeshwanth, Additional Government Pleader, Mr.I.Abrar Mohammed Abdullah, Standing Counsel
Government proposals for employee absorption are recommendatory and discretionary; no entitlement for retired TNPSC-governed employees.
Headnote:The Government constituted Dharmapuri District Development Corporation Limited under Companies Act, 1956 via G.O.Ms.No.672 dated 15.04.1975. Employees appointed therein sought absorption into Rural Development and Panchayat Raj Department post winding up via G.O.Ms.No.14 dated 21.01.2000 and subsequent orders like G.O.Ms.No.61 dated 26.02.2001 and G.O.Ms.No.57 dated 20.08.2013, which absorbed only non-TNPSC category employees in service. Court found proposals recommendatory, not binding, and ineligible for retired TNPSC-governed employees. Issues framed: Whether absorption and regularization from initial appointment possible for TNPSC posts post-retirement. Ratio: Proposals from authorities are discretionary for Government; no mandate to accept, especially for superannuated employees under TNPSC purview (paras 8, 11-12). Writ Appeals dismissed, upholding Writ Court order refusing absorption and regularization.
| Table of Content |
|---|
| 1. intra-court appeals challenge writ dismissal on absorption. (Para 1 , 2) |
| 2. history of corporation winding up and absorption proposals. (Para 3 , 4 , 6) |
| 3. prior proceedings and writ court findings on discretion. (Para 7 , 8) |
| 4. arguments rejected; proposals non-binding for retirees. (Para 9 , 10 , 11 , 12) |
JUDGMENT :
N.SENTHILKUMAR, J.
These intra court appeals have been filed challenging the common order passed by the Writ Court in WP.No.2636 of 2025, WP.No.2690 of 2025, WP.No.2656 of 2025, WP.No.2649 of 2025, WP.No.2696 of 2025, WP.No.2692 of 2025 and WP.No.2645 of 2025 dated 11.11.2025.
2.The subject Writ Petitions were filed challenging the orders passed by the Government of Tamil Nadu, thereby rejecting the request made by the petitioners to absorb them in the Rural Development and Panchayat Raj Department and also to regularise their service from the date of their initial appointment in the Dharmapuri District Development Corporation Limited.
3.The case of the Appellants herein/writ petitioners in the writ Petition was that the Government of Tamil Nadu passed an order in G.O.Ms.No.672, Rural Development and Local Administration Department dated 15.04.1975, whereby a company designated as the Dharmapuri District Development Corporation Limited (hereinafter referred to as “DDDCL”) was constituted under the Companies Act, 1956. After constitution of DDDCL, the Appellants were temporarily appointed in various posts from the year 1975. Thereafter, they were promoted to the post of Junior Engineer and then as Assistant Executive Engineer and they have retired from service on attaining the age of superannuation, in the year of 2014 itself. In the meantime, the Government of Tamil Nadu passed an order in G.O.Ms.No.14, Rural Development (SGSY) Department dated 21.01.2000 and directed the 2nd respondent to wind up the DDDCL and to establish District Rural Development Agency in its place.
4.It is the further case of the Appellants that a proposal was sent by the 2nd and 3rd respondents to the 1st respondent seeking to absorb the staff of the DDDCL as Government servants with protection of pay and continuity of service for pensionary and other benefits. In this regard, the 1st respondent issued an order in G.O.Ms.No.61 Rural Development (E1) Department dated 26.02.2001, permitting the 2nd respondent to take three Assistant Executive Engineers, one Assistant Engineer and twelve Junior Engineers of the DDDCL on deputation basis in the panchayat development unit till their absorption.
5.Thereafter, the 3rd respondent had also sent proposals for absorption of the staff in the Rural Development and Panchayat Raj Department and other agencies. Pending proposals, the 1st respondent passed another order in G.O.Ms.No.61 Rural Development (SGSY) Department, dated 06.06.2003 ordering the formation of Dharmapuri District Socio Economic Development Society and directing that the absorption of the employees of the erstwhile DDDCL either in the newly formed society or in the Rural Development Department would be decided by the 3rd respondent in consultation with the 2nd respondent.
6.The proposal of the absorption of the employees of the DDDCL sent by the 2nd and 3rd respondents was thereafter scrutinised by the 1st respondent, who classified the employees under two categories viz., the employees who come under the purview of Tamil Nade Public Service Commission (hereinafter referred to as “TNPSC”) and the employees who do not. Based on such classification, the Government issued G.O.Ms.No.57, Rural Development and Panchayat Raj (E5) Department dated 20.08.2013, absorbing only those employees who do not come under the purview of TNPSC and who were in service as on the date of the said Government Order. Accordingly, certain categories such as Office Assistants, Drivers and Watchman were absorbed and their services were regularised from the date of their initial appointment in the erstwhile corporation. However, the posts held by the appella
