SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(MP) 644

IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
JAI KUMAR PILLAI, J.
Durgaprasad & Three Others – Petitioners 
Versus
The State Of Madhya Pradesh And Others – Respondents
Writ Petition No. 5807 of 2019, Writ Petition No. 7554 of 2019, Writ Petition No. 7558 of 2019
Decided On : 28-01-2026

Advocates Appeared:
For the Petitioners:Shri L. C. Patne, Advocate.
For the Respondents: Shri Pradyumna Kibe, G.A.

Contractual employees appointed to sanctioned posts cannot be terminated by administrative orders targeting unauthorized engagements. Where state policy mandates due process for contractual service, termination without notice or hearing is arbitrary and void.

Headnote:(A) Constitution of India - Articles 14, 16 and 226 - Mahatma Gandhi National Rural Employment Guarantee Act, 2005 - Termination of contractual employment - Application of administrative orders - Interpretation of restrictive clauses - Employees appointed against sanctioned posts - Protection against arbitrary termination - Principles of natural justice - Requirement of notice and hearing - State policy providing parity and protection to contractual employees. (Paras 13, 16, 19, 20)

(B) Termination of service - Distinction between termination simpliciter and punitive termination - If an employee has a right to the post under contract or rules, termination without good cause or due process is wrongful. (Paras 21, 22)

Facts of the case:
Contractual employees were appointed to sanctioned posts of Technical Assistant under a rural employment scheme following a due selection process, including notification and interviews. A subsequent administrative order directed that contractual employees should not be continued after a specific date. The employees were discontinued based on this order, leading to the present petitions challenging the arbitrary nature of the termination and the lack of due process.

Findings of Court:
The impugned order was intended to regulate and discontinue unauthorized daily wage/contract employees engaged without State approval or against non-sanctioned posts. Since the petitioners were appointed against sanctioned posts created and approved by the State Government, the order did not apply to them. Furthermore, a State policy granted these contractual employees protections and remuneration parity akin to regular employees, necessitating adherence to due process, including a show-cause notice and hearing, which was not followed in the present case.

Issues: Whether a general government order to discontinue contractual employees applies to those appointed against sanctioned posts and whether such employees are entitled to the protection of natural justice and specific state policies governing their service.

Ratio Decidendi: An administrative order prohibiting the engagement of "such employees" must be interpreted in conjunction with the preceding clauses defining the category of employees targeted. If the order is directed at unauthorized or non-sanctioned engagements, it cannot be used to terminate those holding sanctioned, State-approved posts. Where a state policy confers specific service protections and mandates a procedure for termination, failure to provide a hearing or notice renders the termination procedurally unsustainable and arbitrary.

Result: Writ petitions allowed. Impugned orders quashed. Respondents directed to reinstate petitioners with consequential benefits and back wages.

Legal Category Hierarchy

  • constitutional law
    • writ jurisdiction under article 226 (Para 1)
    • fundamental rights
      • equality and non-discrimination (Para 6)
  • administrative law
    • principles of natural justice (Para 20, 21, 22)
    • state executive instructions and policy (Para 18, 19)
    • interpretation of administrative orders (Para 10, 11, 12, 13, 23)
  • service law
    • public employment
      • contractual appointment (Para 3, 14, 15, 16)
    • termination of service
      • termination of contractual employees (Para 25, 26)
    • regularization (Para 24, 28)
    • reinstatement and back wages (Para 27)

Table of Contents

1. Writ petitions under Article 226 challenge discontinuance of contractual Technical Assistants under the Mahatma Gandhi National Rural Employment Guarantee Scheme as arbitrary and contrary to Articles 14 and 16. (Para 1 , 3 , 4 )

2. Petitioners asserted contractual employees on sanctioned posts could not be discontinued without due process; respondents asserted temporary contractual appointees have no right to continue. (Para 5 , 6 , 7 , 8 )

3. Writ petitions allowed; impugned orders quashed; petitioners reinstated with consequential benefits, notional pay fixation and back wages, without opinion on regularization. (Para 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 )

4. Does a general administrative order discontinuing 'no such employees' under MNREGS apply to all contractual staff?

No; the prohibition refers only to daily-wage/contract employees engaged without State-level approval or on non-sanctioned posts, not to employees appointed against sanctioned, State-approved posts. (Para 10 , 11 , 12 , 13 , 23 )

5. What establishes that posts are sanctioned and State-approved under MNREGS?

A State circular expressly creating contractual posts, prescribing eligibility, and allocating posts with reservation, followed by prescribed selection, establishes sanctioned posts; statutory and State recognition of the duties also shows the posts are core and essential. (Para 14 , 15 , 16 , 17 )

6. Is a contractual employee governed by a State policy entitled to notice and hearing before termination?

Yes; a State policy conferring protections akin to regular employees is binding, and termination without show-cause notice, hearing or inquiry is contrary to the policy and principles of natural justice; even non-regular employees are entitled to reasonable opportunity before a stigmatic termination. (Para 18 , 19 , 20 , 21 , 22 )

7. Does Umadevi create an absolute bar on regularization of contractual employees?

No; the governing precedent does not create an absolute bar and recognizes regularization may be permissible in exceptional, duly justified circumstances; however, no opinion was expressed on regularization of the petitioners. (Para 24 , 28 )

ORDER :

JAI KUMAR PILLAI, J.

These are a bunch of writ petitions filed by the petitioners under Article 226 of the Constitution of India challenging the common order/letter dated 02/03/2019 and 19/03/2019 issued by respondent directing that the services of persons appointed on contractual basis as Technical Assistants under the Mahatma Gandhi National Rural Employment Guarantee Scheme (hereinafter referred to as “MNREGS/MNREGA”) shall not be continued after 28/02/2019, pursuant to which consequential steps have been taken by the authorities for discontinuance of the petitioners from service.

2. Since the facts involved in all these writ petitions are similar and the questions of law raised are identical, they were heard together and are being decided analogously by this common order. As the facts involved in all the writ petitions are identical, the pleadings and annexures filed in W.P. No. 5807/2019 are treated as the lead case and are taken into consideration for adjudication of the entire bunch of writ petitions.

3. The facts of the case, briefly stated, are that under the Mahatma Gandhi National Rural Employment Guarantee Scheme, Madhya Pradesh a process was initiated for appointment of Technical Assistants on contractual basis by issuance of notification inviting applications thereafter vide letter No. 2504 dated 10/05/2010, the Directorate of Training, Madhya Pradesh, directed the concerned authorities, including the Principal, Industrial Training Institute, Khilchipur, to make appointments to the post of Technical Assistant on contractual basis under MNREGS. Pursuant thereto, applications were invited in the prescribed format, interviews were conducted, and eligible candidates were selected and appointed as Technical Assistants on contractual basis by order dated 24/06/2010.

4. Prior to issuance of the appointment orders, correspondence was made by the competent authority, which is placed on record as Annexure P/5. During the course of their engagement, the petitioners were assigned various duties, including election-related duties, under different orders. The petitioners continued to work as Technical Assistants under MNREGS pursuant to extensions granted from time to time. On 02/03/2019 and 19/03/2019, respondent authority issued a letter/order directing that persons working on contractual basis under MNREGS shall not be continued after 28/02/2019. In compliance of the aforesaid order, the subordinate authorities initiated proceedings to discontinue the services of the petitioners. Aggrieved by the issuance of the order dated 02/03/2019 and 19/03/2019 and the consequential action taken thereunder, the petitioners have approached this Court by filing the present batch of writ petitions.

5. Learned counsel for the petitioners submitted that the impugned orders dated 02/03/2019 and 19/03/2019 are illegal, arbitrary, and contrary to the settled principles of law, and infringes the constitutional rights of the petitioners. It is contended that the petitioners were appointed to the post of Technical Assistant after following due procedure, including issuance of notification, interview, and selection, and have continuously rendered services under MNREGS since the year 2010. It is further contended that the petitioners were appointed on sanctioned posts and their services were extended from time to time, reflecting satisfaction of the respondents with their performance. According to the petitioners, as per the governing terms and conditions, termination of contractual appointment can be effected only in accordance with prescribed procedure, including notice, whereas the impugned action has been taken abruptly and without due process.

6. It is submitted that the petitioners have rendered long years of service and their discontinuance without assigning any reason or fault is arbitrary and violative of Articles 14 and 16 of the Constitution of India. The petitioners further contended that the posts of Technical Assistant are sanctioned

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top