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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAGESH BHEEMAPAKA
Bharathi Human Capital Resources (OPC) Pvt. Ltd. – Appellant
Versus
State of Telangana Rep. by its Principal Secretary, Labour and Employment Department – Respondent
ORDER :
Nagesh Bheemapaka, J.
Petitioner is a company duly incorporated under the provisions of the Companies Act, 2013 and is an empanelled outsourcing agency authorized to provide manpower services to various Government departments on contractual basis. It is their specific case that it has been entrusted with the responsibility of providing outsourcing manpower to various ESI Dispensaries functioning under the Insurance Medical Services Department in Sangareddy District commencing from 2023- 2024. The said engagement was renewed for the subsequent year 2024-2025, and Petitioner continued to render services uninterruptedly during the entire period.
1.1. It is asserted that throughout its tenure, Petitioner discharged its contractual obligations diligently and efficiently; no complaints were raised either by the departmental authorities or by the outsourced employees regarding payment of salaries, statutory deductions, or quality of services. On the contrary, the record demonstrates that Petitioner ensured prompt payment of wages as well as timely remittance of statutory contributions towards Employees' Provident Fund and Employees' State Insurance, thereby safeguarding the interests
The failure to provide notice and an opportunity for a hearing before revoking the contract constitutes a violation of natural justice principles in outsourcing matters.
Administrative actions, especially in outsourcing contracts, must observe principles of natural justice, ensuring fair procedures and justifications for cancellations.
The court held that absence of statutory obligation for contract renewal negated claims of legitimate expectation, affirming that the empanelment process was transparent and legally compliant.
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