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2024 Supreme(Online)(CAT) 9315

CENTRAL ADMINISTRATIVE TRIBUNAL
Ramesh Singh Thakur, Judicial Member, Rashmi Saxena Sahni, Administrative Member
Narinder Singh – Appellant
Versus
Union Territory of Chandigarh – Respondent
ORIGINAL APPLICATION NO.60/801/2021



Advocates:
For the Appellants/Petitioners: Sh. Raman B. Garg
For the Respondents: Sh. D. K. Sehgal

Prospective outsourcing policy cannot deny regularization to pre-policy contractual employees validly selected through open process on sanctioned posts with long unblemished service.

Headnote:(A) Administrative Tribunals Act, 1985 - Section 19 - Service Law - Contractual employment - Regularization - Applicant appointed on contract basis against regular vacant sanctioned post through open advertisement and merit selection in 2007, continued for over 14 years with unblemished record - Termination letters quashed - Outsourcing policy prospective and inapplicable to pre-existing contractual employees - No evidence of reduced workload or replacement - Equity demands similar treatment as similarly situated employees - Directions for reappointment with immediate effect and regularization as one-time measure counting past service notionally for seniority and entitlements, no pay for break period. (Paras 12, 14, 17, 18)

(B) Constitutional Law - Articles 14 & 16 - Equality - Contractual employees selected per recruitment rules through competitive process not backdoor entrants - Cannot be denied regularization merely due to subsequent outsourcing policy - State obligation under one-time measure for long-serving employees on sanctioned posts. (Paras 4, 16, 17)

(C) Service Jurisprudence - Outsourcing - Policy instructions for Group D posts prospective - Cannot dilute rights of employees appointed prior thereto against regular vacancies - Continuation and regularization directed pending regular recruitment. (Paras 12, 14)

Facts of the case:
Applicant engaged as peon on contract basis since 2007 against regular vacant sanctioned post, selected through advertisement, interview and merit list, continued with extensions and notional breaks for over 14 years without complaints. Services terminated in 2021 citing outsourcing policy, despite no replacement and vacant post. Sought quashing of termination and regularization citing long service, unblemished record and similar cases.

Findings of Court:
Termination letters quashed; applicant directed to be reappointed immediately to vacant post; services regularized within six months as one-time measure, past service counted notionally for seniority, pension etc., no remuneration for service break.

Issues: Whether contractual employee appointed through proper process against regular post entitled to continuation and regularization after long unblemished service despite subsequent outsourcing policy; applicability of prospective outsourcing to pre-existing employees; equity vis-à-vis similarly situated cases.

Ratio Decidendi: Outsourcing policy prospective, inapplicable to contractual employees appointed prior thereto through valid selection on sanctioned posts; no backdoor entry where open competitive process followed; equity and long service warrant reappointment and one-time regularization without pay for break, post remains vacant without reduced exigency.

Result: Original Application allowed.

Table of Content
1. applicant's reliefs and factual background (Para 1 , 2)
2. regularization policies and precedents (Para 3 , 4 , 5)
3. termination and similar cases (Para 6 , 7 , 8)
4. respondents' defense against regularization (Para 9 , 10)
5. court analysis of equity and policies (Para 12 , 13 , 14 , 15 , 16 , 17)
6. reappointment and one-time regularization (Para 18 , 19)

ORDER

PER: RASHMI SAXENA SAHNI, MEMBER (A)

1. Present original application has been filed by the applicant under Section 19 of the Administrative Tribunals Act, 1985, seeking following relief:-

“i) The letters dated 27.7.2021 (Annexure P-18) and dated 29.7.2021 (Annexures P-21) be quashed being illegal, unlawful, arbitrary, unconscionable & unconstitutional

ii) The respondents No.1 and 2 may kindly be directed not to replace the applicant with another casual/temporary/ outsourcing employee on the existing post of peon with the respondent department and permitting him to continue on the said post keeping in view excellent performance of the applicant since 30.7.2007 after his lawful selection amongst all eligible candidates in consonance with recruitment rules and Articles 14 & 16 of the Constitution of India.

iii) The respondents No. 1 and 2 may kindly be directed to regularise the services of the applicant on the existing vacant post of peon with the respondent department keeping in view unblemished and excellent service and conduct of the applicant in his more than one decade service beginning from 30.7.2007 after his lawful selection amongst all eligible candidates in consonance with recruitment rules and Articles 14 & 16 of the Constitution of India.”

2. Facts of the case according to the applicant are as follows. The respondent department issued an advertisement in two newspapers namely ’Indian Express’ and Dainik Bhaskar’ on dated 2.6.2007 (Annexure A-1), besides placing requisition with the Regional Employment Exchange, U.T. Chandigarh, for appointment on the post of Peon on contract basis against consolidated salary against a regular vacant sanctioned post of Peon with the respondent department. It was also specified in the advertisement that the candidate must be Middle pass from a recognised Board/Institution and the age limit was prescribed as 18 to 25 years. The applicant being matriculate and fully eligible in terms of the advertisement (Annexure A-1) applied for the post and was accordingly interviewed with all other eligible candidates on 12.7.2007. The applicant was recommended for appointment by Recruitment Committee by placing him at No.1 in the merit. Accordingly, the respondent No.2 appointed the applicant as the Peon on contract basis for a period of 6 months by the appointment letter dated 27.7.2007 (Annexure A-2). Since then, the applicant has been continuing to hold the post of Peon on contract basis as his terms have been extended by the respondent no.2 from time to time after giving notional break keeping in view his excellent and commendable work (Annexures A-3 to A-9). Last term was extended upto 29.7.2021. During the entire service career of the applicant with the respondent department, there was no deficiency in the work and conduct of the applicant. The applicant had been performing his duty regularly, without any break even during the break period as well as on holidays including Saturdays and Sundays. There was no complaint ever made against the applicant nor the applicant was ever punished or reprimanded in any manner. The entire service record of the applicant is neat and clean (Annexures A-10 and A-11). The applicant has been working since 27.7.2007 i.e. for more than 14 years. Despite this fact, the services of the applicant have not been regularized till date.

3. The respondent Chandigarh Administration as well as various Boards, Corporations and Councils working there under have been regularizing its contractual employees on completion of 10 years service. Some of the examples are as under:-

i. The Chandigarh Administration issu

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