Case Note & Summary
The dispute arose between the Punjab Water Supply & Sewerage Board and certain employees regarding the regularisation of their services. The employees were engaged on a contract basis for maintenance work in various municipal projects, and their services were terminated. They sought regularisation under a policy issued by the State of Punjab, which the Board rejected. The employees filed writ petitions, which the High Court allowed, directing their reinstatement and regularisation. The Board appealed, arguing that the policy did not apply to them as a statutory body. The Supreme Court analyzed the legal framework surrounding the regularisation of services, emphasizing that statutory rules govern recruitment and that any policy decision by the State must align with constitutional provisions. The court referenced previous judgments that clarified the distinction between irregular and illegal appointments, concluding that the employees' appointments were illegal due to non-compliance with statutory procedures. The court set aside the High Court's order, stating that the employees had no legal right to regularisation based on the flawed appointments. The appeals were allowed without costs.
Headnote
A) Employment Law - Regularisation of Services - Applicability of State Policy - Article 162 of the Constitution of India - The court held that the purported policy decision of the State regarding regularisation was not applicable to the statutory board as it did not comply with statutory recruitment rules. The High Court's direction for regularisation was set aside as it failed to consider the legality of the appointments made without following proper procedures (Paras 6-7).
Issue of Consideration
Whether the purported policy decision of the State regarding regularisation of services applied to the employees of the Punjab Water Supply & Sewerage Board.
Final Decision
The Supreme Court set aside the High Court's order, ruling that the purported policy for regularisation was not applicable to the statutory board and that the employees had no legal right to regularisation due to illegal appointments. Appeals were allowed without costs.
Law Points
- Applicability of state policy
- regularisation of services
- statutory rules
- constitutional provisions
- illegal appointments


