Supreme Court Dismisses SAI's Appeal Against High Court Order Upholding Tribunal's Direction to Consider Respondents as Initial Constituents Under 2022 Recruitment Rules. Concession Made by Counsel Before High Court Cannot Be Resiled From Absent Fraud or Lack of Authority.

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Case Note & Summary

The case involves Sports Authority of India (SAI) and its contractual physiotherapists. SAI was created in 1984 under the Societies Registration Act, 1860, and framed recruitment rules in 1992 and 2022. The 1992 Rules and 2022 Rules contain provisions for 'initial constitution,' which allow employees working on ad hoc basis to be deemed appointed under the rules. The respondents were contractual physiotherapists since 20.02.2021. In 2022, SAI notified new recruitment rules and advertised vacancies for physiotherapists on contractual basis, not renewing the respondents' contracts. The respondents participated in the selection process but were not selected. They challenged the recruitment process before the Central Administrative Tribunal, which allowed their Original Application on 04.11.2023, directing SAI to consider them as 'initial constituents' under the 2022 Rules and quashing their termination. SAI challenged this order before the Delhi High Court. During arguments, SAI's counsel stated that they would not press the writ petition on merits and sought extension of time to comply with the Tribunal's directions. The High Court disposed of the writ petition on 28.02.2024, extending time by eight weeks. SAI then filed recall applications against this order, claiming that the counsel misunderstood the Tribunal's order. The High Court dismissed the recall applications, holding that the only escape from a concession is if the client states on affidavit that the counsel was not instructed, which SAI did not do. SAI appealed to the Supreme Court. The Supreme Court dismissed the appeal, holding that once an order is passed on a concession, the party cannot challenge it unless there is fraud or deception. The Court also upheld the Tribunal's reasoning that the respondents should be considered as initial constituents, as they were working on ad hoc basis and possessed the prescribed qualifications. The Court noted that SAI did not allege lack of authority or fraud, and the counsel's misunderstanding was not a valid ground to recall the order.

Headnote

A) Service Law - Recruitment Rules - Initial Constitution - Concession by Counsel - The Supreme Court held that once an order is passed on a concession or compromise by a party, that party cannot challenge the order before a higher court unless there is fraud or deception. The Court also held that the only escape from a concession granted by counsel is if the client states on affidavit that the counsel was not instructed or authorized to make such a concession. (Paras 10-11)

B) Service Law - Recruitment Rules - Initial Constitution - Protection of Ad Hoc Employees - The Supreme Court upheld the Tribunal's direction to consider the respondents as 'initial constituents' under the Sports Authority of India Executive Cadre (Grade

A) Staff Recruitment Rules 2022, as they were working on ad hoc basis and possessed the prescribed qualifications. The Court agreed with the Tribunal's reasoning that the respondents' appointment was irregular but not illegal, and they should be considered as part of the initial constitution. (Paras 3-4, 11)

C) Service Law - Recall of Order - Consent Order - The Supreme Court held that the High Court rightly dismissed the recall applications filed by SAI, as SAI did not allege that the concession was made without instructions or that the order was erroneous. The only ground taken was that the counsel misunderstood the Tribunal's order, which was rejected. (Paras 9-10)

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Issue of Consideration

Whether the High Court erred in dismissing the recall applications filed by SAI against its order dated 28.02.2024, which was passed on the basis of a concession made by SAI's counsel, and whether the Tribunal's direction to consider the respondents as 'initial constituents' under the 2022 Rules was correct.

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Final Decision

The Supreme Court dismissed the appeal, upholding the High Court's order dismissing the recall applications and the Tribunal's direction to consider the respondents as 'initial constituents' under the 2022 Rules.

Law Points

  • Concession by counsel binding on client
  • Recall of order on concession not permissible without fraud or lack of authority
  • Initial constitution provisions in recruitment rules protect ad hoc employees
  • Scope of judicial review of consent orders
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Case Details

2025 LawText (SC) (3) 45

CIVIL APPEAL NO(S).22892291 OF 2025 WITH CIVIL APPEAL NO(S). 22962298 OF 2025

2025-03-04

Sudhanshu Dhulia

For Appellant(s): Mr. Rakesh Kumar Khanna, Sr. Adv. Mr. Sandeep Kumar Mahapatra, Adv. Mr. Sugam Kumar Jha, Adv. Mr. Sreedass K. P., Adv. Mr. Aditya P. Khanna, Adv. Mr. Raghav Tandon, Adv. Ms. Awantika Manohar, AOR For Respondent(s): Ms. Kamini Jaiswal, Adv. Ms. Rani Mishra, Adv. Ms. Sridevi Panikkar, Adv. Mr. Abhimanue Shrestha, AOR Mr. Pritesh Patni, Adv.

Sports Authority of India

DR. KULBIR SINGH RANA

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Nature of Litigation

Service matter - challenge to recruitment process and termination of contractual employees

Remedy Sought

Respondents sought to be considered as 'initial constituents' under the 2022 Recruitment Rules and quashing of termination orders

Filing Reason

SAI did not renew contracts of respondents and advertised vacancies for physiotherapists on contractual basis, despite respondents being eligible for initial constitution

Previous Decisions

Central Administrative Tribunal allowed OA on 04.11.2023 directing SAI to consider respondents as initial constituents; Delhi High Court on 28.02.2024 extended time for compliance on SAI's concession; High Court dismissed recall applications on 10.09.2024

Issues

Whether the High Court erred in dismissing the recall applications against its order dated 28.02.2024 passed on concession Whether the Tribunal's direction to consider respondents as initial constituents under the 2022 Rules was correct

Submissions/Arguments

SAI argued that its counsel misunderstood the Tribunal's order and therefore the concession was not binding Respondents argued that the concession was made voluntarily and SAI cannot resile without alleging fraud or lack of authority

Ratio Decidendi

An order passed on a concession or compromise by a party cannot be challenged by that party before a higher court unless there is fraud or deception. The only escape from a concession granted by counsel is if the client states on affidavit that the counsel was not instructed or authorized to make such a concession. Additionally, employees working on ad hoc basis who possess prescribed qualifications and were selected through open competition should be considered as part of the initial constitution under recruitment rules, as their appointment is irregular but not illegal.

Judgment Excerpts

This petition ought to be dismissed on the mere ground that once the order has been passed on a kind of a compromise or concession given by a party, that party cannot turn back and challenge the order before a higher court, unless it is a case of fraud or deception. Even otherwise, the appellants do not have any case, and the Original Application of the respondents has been rightly allowed. We totally agree with the reasoning given by the Tribunal.

Procedural History

Respondents filed OA before CAT, allowed on 04.11.2023. SAI challenged before Delhi High Court, which disposed of writ petition on 28.02.2024 extending time for compliance on SAI's concession. SAI filed recall applications, dismissed by High Court on 10.09.2024. SAI appealed to Supreme Court.

Acts & Sections

  • Societies Registration Act, 1860:
  • Sports Authority of India (Sports Sciences and Sports Medicine) Staff Recruitment Rules, 1992: 4
  • Sports Authority of India Executive Cadre (Grade A) Staff Recruitment Rules, 2022: 4
  • Sports Authority of India (Service) Bye Laws and Conditions of Service Regulations, 1992: 81
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