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2025 Supreme(Online)(CAT) 10373

CENTRAL ADMINISTRATIVE TRIBUNAL
M. Swaminathan, M(J), Sangam Narain Srivastava, M(A)
K. Govindarajan – Appellant
Versus
Union of India – Respondent
OA/310/00958/2019



Advocates:
For the Appellants/Petitioners: M/s.Row & Reddy
For the Respondents: Mr.C.V.Ramachandramurthy

An employee's long-term service establishes a right to regularization, and denying this based on outsourcing policy constitutes discrimination.

Headnote:(A) Administrative Tribunals Act, 1985 - Regularization of services - Application for regularization denied due to alleged non-availability of vacancy but substantial evidence of continuous service and available post presented - Court adjudicates that discontinuation based on an outsourcing policy is unjustified given service history. (Paras 8-12)

(B) Legal Principle of Equality - Treating similarly situated employees differently constitutes discrimination and undermines established policy for service continuity. (Paras 11-12)

Facts of the case:
The applicant worked as an Electrician since 11.07.1996 in the Respondent Corporation, faced termination, and sought regularization citing a recommendation from management and similar cases of peers.

Findings of Court:
No justifiable reasons were found to deny regularization, confirming existing vacancy and the applicant’s long uninterrupted service.

Issues: The primary issue was whether the applicant was entitled to regularization given the existing sanctioned post amid a policy of outsourcing.

Ratio Decidendi: The court held that the applicant’s long-term service necessitated regularization, which should not be denied based on later outsourcing decisions; the lack of vacancy argument was rejected.

Result: Orders dated 26.09.2018 and 17.07.2019 quashed, directing the respondents to grant regularization with benefits from 16.05.2017.

Table of Content
1. continued service justifies regularization. (Para 2 , 3)
2. employment continuity supports permancy qualification. (Para 5 , 6 , 11)
3. outsourcing policy cannot deny justified appointments. (Para 8 , 10 , 12)
4. final ruling favours applicant's regularization. (Para 13 , 14)

ORDER

(Pronounced by Hon'ble Mr.Sangam Narain Srivastava, Member(A))

The applicant has filed the present OA under Section 19 of the Administrative Tribunals Act , 1985, seeking the following relief:

“(i) to set aside the order bearing ref. No. 512A/12/2011/Vol.III (Electrician) d. 17.07.2019 passed by the 4th respondent in dispensing with his services w.e.f 20.07.2019 as malafide, arbitrary and contrary to the order dt. 16.05.2017 passed in O.A. No. 99 of 2013 and;

(ii) to set aside the order bearing Ref. No. C-18/11/6/2015/Med-VI(integ) dt. 26.09.2018 passed by the 2nd respondent in rejecting the request of the Applicant for regularisation on the ground that there is no vacancy for the post of Electrician and;

(iii) to direct the Respondent Corporation to regularise the services of the Applicant with effect from 05.10.2004 the date on which the Medical Superintendent made a recommendation to the 2nd respondent with all other consequential benefits including the monetary benefit and;

(iv) to count the service rendered on daily wages basis by the Applicant for the purpose of pension, terminal benefits and all other benefits and;

(v) to pass such other orders or directions as this Hon'ble Tribunal may deem fit and proper in the circumstances of the case, award costs and thus render justice.”

2. The brief facts of the case as stated by the applicant are as follows: The applicant has been working in the Respondent Corporation since 11.07.1996 as an Electrician with deliberate breaks in service. On 01.04.1991, when the ESI hospital which was originally under the control of Govt. of Tamil Nadu, was taken over by the Respondent Corporation there were two vacancies of Electrician. When the respondents called for application from employment exchange, the applicant, after due selection process was appointed on daily wages basis with deliberate breaks in service and his services continued as such till 26.01.2013. While so, the Medical Superintendent of the Respondent Corporation, vide letter dated 05.10.2004 recommended to the 2nd respondent for the regularisation of the applicant's services. When there was no response, the applicant filed OA 99/2013 for regularisation of his services as an Electrician and the said OA was allowed after taking into consideration that in the case of a similarly placed person Ramesh Chander before the Principal Bench of CAT, with a direction that the applicant may be considered for the post of Electrician on regular basis, in case if there is a regular vacancy exists. In response, the respondent initially passed an order dated 19.08.2017 stating that there is no possibility for regularisation as there was no vacancy but the said also was withdrawn on 30.08.2017. A contempt petition in CA No. 84/2018 has been filed by the applicant against the respondents wherein the respondents filed a status report enclosing a copy of the order dated 26.09.2018 rejecting the applicant's request for regularisation on the ground that the work of Electrician has been entrusted to an outside agency. When statutory notice was ordered by this Tribunal on 02.07.2019, the respondents passed an order dated 17.07.2019 terminating the services of the applicant on the alleged ground that the contractual appointment comes to an end on 20.07.2019. The applicant in support of his case has relied upon the judgment of the Hon. Apex Court in the case of Jaggo Vs. Union of India & Ors dated 20.12.2024 reported in 2024 INSC 1034. Being aggrieved, the applicant has filed the present OA seeking the afore said relief.

3. After notice, the respondents have entered appearance through their counsel and filed their reply statement refuting all the averments made in th

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