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2026 Supreme(Online)(Tel) 9066

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Aparesh Kumar Singh, CJ, G. M. Mohiuddin, J
National Insurance Company Limited – Appellant
Versus
N.Balaiah – Respondent
WRIT APPEAL No.980 of 2025



Advocates:
For the Appellants/Petitioners: D.Rama Krishna Reddy
For the Respondents: G.Allabakash

Regularization of service is not permissible where the engagement is purely contractual, substantiated by written agreements granting commercial independence, and lacking evidence of a formal recruitment process. Disputes regarding the existence of an employer-employee relationship are essentially factual and not amenable to writ jurisdiction under Article 226.

Headnote:(A) Constitution of India - Article 226 - Writ jurisdiction - Regularization of services - Engagement based on series of written contracts - Petitioner engaged as 'Caretaker' with permission to run ancillary commercial services - Determination of employer-employee relationship - Evidence of contractual nature versus employment - TDS deduction as a factor - Held, nature of work and terms of agreement clearly establish independent contractor status - Writ Court cannot adjudicate disputed questions of fact regarding existence of employment relationship; appropriate forum is Industrial Tribunal or Civil Court - (Paras 13, 17, 26, 27)

(B) Service Law - Regularization of casual/contractual engagement - Prerequisite of valid entry into service - Absence of advertisement, selection list, or appointment order - Compliance with constitutional scheme of appointment - (Paras 14, 23, 24)

Facts of the case:
Respondent claimed to be a 'Caretaker' appointed in 2003 through a selection process. Appellants contended he was an independent contractor engaged for housekeeping and maintenance through periodic agreements, permitted to retain profits from ancillary services (canteen/laundry). The learned Single Judge directed regularization, which was challenged in appeal.

Findings of Court:
The Court held that the engagement was purely contractual (a 'contract for service'), noting the absence of standard employment indicators like Provident Fund, service rules, fixed working hours, or superannuation clauses. The Court found the respondent failed to prove a regular selection process existed.

Issues: Whether the respondent was entitled to regularization of services and whether a writ petition is the appropriate remedy for determining the existence of an employer-employee relationship in a disputed contractual arrangement.

Ratio Decidendi: A person who enters into explicit commercial agreements, retains profits from ancillary services, and lacks evidence of a formal selection process cannot claim the status of a regular employee; furthermore, unresolved factual disputes regarding employment status are not amenable to writ jurisdiction.

Result: Appeal allowed; impugned order set aside.

Table of Content
1. overview of the factual background and nature of contractual arrangements between the parties. (Para 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. summary of rival contentions regarding the nature of the engagement as either employment or a contract for commercial service. (Para 9 , 10 , 11)
3. court's analysis of the evidence, including written agreements and the absence of traditional employment indicators. (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
4. examination of precedents and the limitation of writ jurisdiction in resolving disputed factual claims. (Para 21 , 22 , 23 , 24 , 25 , 26)
5. conclusion that the relationship was purely contractual and not entitled to regularization. (Para 27 , 28)

JUDGMENT

Heard Sri D.Rama Krishna Reddy, learned counsel for the appellants and Sri G.Allabakash, learned counsel for the respondent and perused the record.

2. This writ appeal, preferred under Clause 15 of the Letters Patent, assails the order dated 17.12.2024 passed by the learned Single Judge in W.P.No.4986 of 2019. By the said order, the learned Single Judge allowed the writ petition filed by the respondent (writ petitioner) and directed the appellants to regularize the services of the respondent as sub-staff or in any such post carrying the same scale of pay as prevalent in 2003, with all attendant benefits.

Factual matrix (in brief)

3. As per the respondent, in the year 2003, the appellants issued a newspaper notification inviting applications for the posts of Caretaker and Helpers, pursuant to which the respondent participated in the selection process comprising an interview and a practical test, and was declared successful. It is respondent’s specific case that notwithstanding such selection, no formal order of appointment was issued; instead, the appellants caused an agreement dated 13.10.2003 to be executed, which arrangement was periodically renewed from time to time.

4. The record discloses that the relationship between the parties was governed by a series of written agreements executed at different points of time. The particulars of such agreements brought on record are tabulated hereinbelow for ready reference:

S.No. Date of Agreement Period of Contract
1. 01.02.2011 13.10.2010 to 12.10.2011
2. 01.02.2012 13.10.2011 to 12.10.2012
3. 06.02.2013 13.10.2012 to 12.10.2013
4. 06.06.2014 01.04.2014 to 31.03.2015
5. 21.02.2018 01.11.2017 to 31.10.2018

5. A perusal of the aforesaid agreements reveals that the arrangement between the parties was expressly characterized as one pertaining to “housekeeping and maintenance” of a transit flat/guest house belonging to the appellants. The respondent was designated as “Caretaker” and was entrusted with duties inter alia including maintenance and cleaning of the premises, attending to the needs of occupants/guests, collection of lodging charges, and maintenance of a register of guests.

6. Significantly, the terms and conditions embodied in the said agreements, in clear and unambiguous language, indicate the nature of the arrangement and may be summarized as follows:

a. The respondent was permitted to run ancillary services such as a canteen and laundry for the benefit of guests, with the stipulation that the profits accruing therefrom would be retained exclusively by him.

b. The arrangement was terminable at the instance of either party by giving one month’s prior notice, thereby indicating its contractual and non-permanent character.

c. The agreements did not prescribe any pay scale, increments, working hours, maintenance of attendance, or disciplinary framework, as would ordinarily be applicable to regular employees.

d. There was no provision for deduction or contribution towards Provident Fund or other statutory benefits, which are ordinarily mandatory in the case of regular employment.

e. The agreements did not contemplate or prescribe any age of superannuation.

7. The appellants, on 01.03.2019, issued a notification inviting applications from outsourcing agencies

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