Petitioners cannot claim payments under an expired contract; administrative actions must arise from statutory rights, not mere participation in tender processes.

ORDER :

NAGESH BHEEMAPAKA, J.

Petitioners are aggrieved by the action of the 2^nd respondent - District Collector, Suryapet District in issuing Memo No. C5/2052-3/2025, dated 03.09.2025, directing the official respondents not to prepare or process the salary bills pertaining to the outsourcing employees engaged through petitioners who are working in various Government Departments of Suryapet District. Petitioners contend that such action is illegal, arbitrary, violative of the principles of natural justice and contrary to the guidelines framed under G.O.Rt.No.4459, dated 27.12.2006 and G.O.Rt.No.4271, dated 01.11.2008 as well as Articles 14, 19 and 21 of the Constitution of India.

2. Petitioners submit that they are registered outsourcing service providers, each holding valid and subsisting registrations issued by the competent authorities under the relevant statutory enactments governing employment, labour and establishment activities. The 1^st petitioner is a registered cooperative society bearing Registration No. 708/TH, the 2^nd petitioner is a firm registered under No. SEA/SUR/ALO/SP/53293/2017 and the 3^rd petitioner is a proprietary concern registered under No. SEA/SUR/ALO/SP/0159747/2019. All the petitioners possess valid licences to undertake manpower and outsourcing services and have periodically renewed the same without default.

2.1. Petitioners state that they have been continuously providing outsourcing and contract manpower to various Government Departments within Suryapet District for several years including the offices of the District Collector, District Medical & Health Officer, Government General Hospital, Panchayat Raj Engineering Department, Fisheries Department and other district-level offices. Their performance has been consistently satisfactory and no adverse remarks or complaints have ever been recorded against them. They assert that their firms have discharged their duties diligently and in strict adherence to the terms and conditions of the contracts executed from time to time.

2.2. It is stated, petitioners were duly empanelled by the 4^th respondent under the aegis of the District Employment Officer, Suryapet District Outsourcing Committee, for providing outsourcing services during the financial year 2024-25. The said empanelment was made after following due procedure, including scrutiny of documents, verification of statutory registrations and approval by the District Level Selection Committee, in accordance with the guidelines issued under G.O.Rt.No.4459, dated 27.12.2006 and G.O.Rt.No 4271 dated 01.11.2008. Pursuant thereto, petitioners were allotted various outsourcing works in different Government Departments of Suryapet District and they executed the said services up to the expiry of the contract period on 31.03.2025.

2.3. Petitioners further state that prior to expiry of the said period and also immediately thereafter, they submitted several representations to Respondents 2 and 4 requesting that their contracts be extended for the succeeding financial year 2025-26, in view of their satisfactory performance and the continued need for the services rendered by their employees. They specifically requested the authorities to release the monthly salary budget for the employees deployed by them, pending formal extension of the contract period, so as to avoid disruption of essential services in hospitals, welfare hostels, and administrative offices.

2.4. According to petitioners, though no formal proceedings extending their contracts were issued, the departments concerned orally instructed them to continue deploying their existing workforce and to ensure uninterrupted services. Acting on such instructions, petitioners continued to maintain their manpower and dis