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2024 Supreme(Online)(AP) 20098

HIGH COURT OF ANDHRA PRADESH
K Manmadha Rao, J
Jonnalagadda Srinivasa Rao, and Others – Appellant
Versus
Life Insurance Corporation Of India and Others – Respondent
Writ Petition No: 5496/2021, 2346/2018, 9666/2013, 16752/2013, 17230/2013, 19262/2011 and 37210/2013



Advocates:
For the Appellants/Petitioners: KAVITHA GOTTIPATI
For the Respondents: BATHULA RAJ KIRAN (SC FOR LIC)

The court reaffirmed that temporary employees claiming regularization must provide adequate proof of their employment status, and backdoor entries into public service violate constitutional principles of equal opportunity.

Headnote:(A) Minimum Wages Act, 1948 - Life Insurance Corporation (Employment of Temporary Staff) Instructions, 1993 - Temporary Class IV employees claiming regularization as peons - Petitioners engaged for years without appointment letters, seeking status as permanent - Allegations of wage payments in dummy names and non-compliance with minimum wage requirements - Court found that petitioners failed to provide proof of continuous employment and filed petitions outside the stipulated timeframe. (Paras 2, 22, 23)

(B) Public Employment - Constitutional principles of Articles 14 and 16 - Back-door entries into public service are not permissible; public employers must follow a fair recruitment process. Court held LIC is bound to follow laid-down procedures strictly. (Para 14)

Facts of the case:
Petitioners engaged by LIC as temporary Class IV employees since 1996, alleging irregularities and seeking regularization through a one-time recruitment process initiated post Supreme Court directives. Respondents contended that petitioners lacked eligibility for regularization and failed to maintain required proof of employment.

Findings of Court:
Petitioners did not establish their claims regarding length of service or eligibility and hence were found ineligible for regularization as permanent employees.

Issues: The main issues included the legality of the employment and wage payment practices of LIC, and the eligibility of petitioners for regularization as continued employees.

Ratio Decidendi: The court ruled that petitioners must substantiate their claims of eligibility with proper documentation; the lack of evidence and circumvention of employment regulations by LIC rendered their petitions unsustainable.

Result: Writ petitions dismissed.

Table of Content
1. engagement of workers without appointment letters. (Para 2)
2. counter arguments against petitioners' claims. (Para 4 , 5)
3. legal procedures for recruitment emphasized. (Para 6 , 14)
4. historical context of employment practices. (Para 7 , 18)
5. court's reasoning for dismissal based on evidence. (Para 19 , 20 , 22)
6. conclusion and dismissal of writ petitions. (Para 21 , 23 , 24)

COMMON ORDER :

As the issue involved in all these writ petitions is one and the same, they are being taken up for hearing as well as disposed of by way of this Common Order.

2. The grievance of the petitioners in all these writ petitions is that, LIC of India engaged the petitioners herein as temporary Class IV employees (peons/watchmen) from 1996 at its offices in Nellore, Machilipatnam and Visakhapatnam Divisions in Andhra Pradesh without issuing appointment letters. Wages were paid to them in dummy names every month in order to avoid regularization of their services. Minimum wage requirements as mandated by the Minimum Wages Act, 1948 were also circumvented. As a result, no proper records of wage payment and attendance of the Petitioners were maintained until 2011. All the Petitioners have worked with the LIC for more than 5 years as on 18.01.2011. The petitioners have joined in LIC of India after completion of 10th standard because of financial problems of their families. Most of the petitioners belong to SC/ST/OBC communities. Due to less education and social backwardness the petitioners do not know the implications of wage payments in Dummy names. In some of the offices the officials used to prepare a consolidated payment Voucher for all the temporary workmen by debiting other Miscellaneous Expenses Account and the Officials in OS department used to disburse the wage payment to the Temporary Workmen. At that time the workmen were not aware of whether their names are mentioned in the consolidated Miscellaneous Payment Voucher or not. It is further stated that on 10.07.2010, the Insurance Employees' Union, Machilipatnam Division wrote to the Regional Manager (P&IR), South Central Zonal Office, LIC of India bringing to their notice the practice of paying wages to temporary Class IV employees in dummy names and requested that wages be paid in the employees" original names. As per rules, Temporary Workmen or Badli Worker or Daily wager or whatever the name may be, are to be appointed as per LIC of India (Temporary Employment) Instructions 1993 and these instructions are notified by Ministry of Finance in Gazette of India in 1993. These instructions specified that workmen should be engaged for maximum period of 120 days only. To continue the same workmen for years together, the LIC offices have started wage payments in Dummy names every month by violating their own Rules and Regulations. Further, the audit and Inspections conducted from 1993 to 2011 are also silent about the wage payments in Dummy names and the associated corruption in wage payments in Dummy names. No records are maintained about the number of workmen engaged in that particular month and thus violated the labour laws.

While the matter stood thus, in accordance with the Supreme Court's order dated 18.01.2011 in D.V. Anil Kumar [C.A. No. 953-968 of 2005], LIC of India issued a notification on 20.05.2011 for appointment of peons. The said notification was applicable as a One-Time measure for recruitment of all eligible temporary Class-IV employees who had been working with LIC of India for more than 5 years as on 18.01.2011. The selection procedure included a written examination and interview of candidates short listed through the examination. It is further stated that the written examination was to be held on 26.06.2011. The Petitioners being temporary Class-IV employees meeting the eligibility criteria, applied to appear in the examination in accordance with the notification dated 20.05.2011. Accordingly, they had submitted their applications to the respective Branch M

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