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2025 Supreme(Ori) 95

IN THE HIGH COURT OF ORISSA, CUTTACK
Harish Tandon, C.J., Murahari Sri Raman, J.
Odisha Industrial Infrastructure, Development Corporation and ors. - Appellants
Versus
State of Odisha represented through Secretary, Department of Industry and ors. - Respondents
W.A. No.569 of 2025 & W.A. No.643 of 2025
Decided On : 29-07-2025

Advocates Appeared:
For the Appellant :Mr. Pradipta Kumar Mohanty, Senior Advocate assisted by M/s. Pronoy Mohanty, S.K. Sahu, K.T. Mudali, P. Pani, K. Panda, Advocates
For the Respondent:Mr. Bimbisar Dash, Additional Government Advocate, Mr. Asok Mohanty, Senior Advocate assisted by Mr. Sanjib Mohanty, Advocate

The court ruled that the petitioner is entitled to financial benefits reflecting the completion of six years of contractual service upon regularization, while affirming that promotional benefits remain contingent on fulfilling eligibility criteria.

Headnote:(A) Odisha Industrial Infrastructure Development Corporation (Method of Recruitment & Conditions of Service) Regulations, 2019 - Odisha Group-C and Group-D Posts (Contractual Appointment) Rules, 2013 - Financial benefits for regularized employees - Court held that regularization of service should be backdated to reflect completion of six years of contractual service, entitling the petitioner to corresponding financial benefits, while confirming the refusal of benefits for promotion until eligibility is met. (Paras 11, 12, 6.12)

(B) Writ Appeal - Scope & powers - Writ Court is to ensure fair application of service regulations and maintain service equity, particularly regarding regularization and benefits derived from completed service years. (Paras 6.10, 6.11)

Facts of the case:
Petitioners were contracted Junior Engineers for years, challenging delays and seeking acknowledgment of their complete service duration for financial benefits post-regularization, denied due to internal regulations.

Findings of Court:
The petitioner's services should be counted for benefits post regularization but no promotional benefits owed until the proper eligibility is met.

Issues: Did the learned Single Judge err in not granting full financial benefits upon regularization?

Ratio Decidendi: Service benefits are a statutory right; regularization must recognize prior service engagements, but promotion benefits are conditional on meeting defined eligibility criteria.

Result: Writ Appeal No. 569 dismissed; Writ Appeal No. 643 modified to include financial benefits from the date of regularization.

Table of Content
1. details of pkp's employment and regularization process (Para 2)
2. pkp's claims for benefits post-regularization (Para 3)
3. arguments regarding statutory compliance and financial claims (Para 4 , 5)
4. judicial analysis based on factual record and governing regulations (Para 6)
5. judgment on appeals and clarifications on financial benefits (Para 7)
6. conclusion and orders of the court (Para 8 , 9)

ORDER :

MURAHARI SRI RAMAN, J.

Industrial Infrastructure Development Corporation, Odisha and others (opposite parties in the writ petition) and Prasant Kumar Panigrahi (petitioner in the writ petition) have challenged the judgment dated 17th December, 2024 passed in W.P.(C) No.21376 of 2022 in the instant Writ Appeals, being W.A. Nos.569 of 2025 and 643 of 2025 respectively.

As both the instant Writ Appeals arise out of the same judgment dated 17th December, 2024 passed in W.P.(C) No.21376 of 2022, they were taken up together for hearing and are disposed of by this common order.

THE FACTS IN W.A. NO.569 OF 2025:

2. Facts as detailed by Industrial Infrastructure Development Corporation, Odisha (for brevity “IDCO”) reveal that the respondent No.6 (Prasant Kumar Panigrahy, for convenience, hereinafter referred to as “PKP”) appointed in the year 2007 as Junior Engineer (Civil) on contractual basis, claimed for regularization by way of a writ petition, registered as W.P.(C) No.934 of 2016, which was disposed of by an order dated 16th September, 2019 with a direction to consider the case of PKP for regularization in service and extension of consequential benefits. The service of PKP along with other similarly situated employees was absorbed in regular establishment against Junior Engineer (Civil) post with effect from 13th March, 2020 by office order dated 26th June, 2020.

2.1. For antedating the date of absorption in service upon completion of six years of contractual service from the date of initial appointment, a writ petition, W.P.(C) No.9701 of 2022, being filed, was disposed of vide order dated 29.04.2022 with a direction to consider the representation by affording an opportunity of hearing to PKP. Having afforded opportunity of hearing while rejecting the claim for antedating the date of regularization for the reason that his claim for promotion would be governed by the Odisha Industrial Infrastructure Development Corporation (Method of Recruitment & Conditions of Service) Regulation, 2019 (for short “IDCO Service Regulations, 2019”), whereunder minimum five years of service in Junior Engineer (Civil) is specified as the eligibility criteria for promotion to the post of Assistant Manager (Civil).

2.2. As PKP is regularized in service on 13th March, 2020, he having not fulfilled the eligibility criteria for promotion in the rank of Assistant Manager (Civil), the Authority has taken a decision not to act according to Rule 9 of the Odisha Diploma Engineers Service (Method of Recruitment & Conditions of Service) Rules, 2012 (for short “Rules, 2012”) as notified by the Government of Odisha in the Water Resources Department read with amendment thereto vide Notification dated 29th August, 2015.

2.3. Challenging such refusal, PKP and others approached this Court by way of filing W.P.(C) No.934 of 2016, wherein prayer was made to quash the orders dated 21st November, 2015 and 16th December, 2015 with a direction to the concerned Authorities to regularize their services in terms of Rule 10 of the Odisha Group-C and Group-D Posts (Contractual Appointment) Rules, 2013 (for short “Rules, 2013”) in view of the decision taken in 101st and 79th Board meetings held on 19th May, 2015 and 29th March, 2010 respectively. Having recorded the submission that the petitioners therein had already rendered more than ten years of service, this Court in said W.P.(C) No.934 of 2016 passed the following order:

“***

Since the petitioners are continuing as contractual Junior Engineers for more than 13 years, their cases have to be considered for regularizatio

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