Case Note & Summary
The dispute arose from the Bihar State Electricity Board's failure to absorb trainee engineers into regular employment despite prior representations. The appellants, who joined as Apprentice Engineers in April 1977 under an 'Employment Promotion Programme', were assured by the Board that they would be appointed as Assistant Electrical Engineers or Junior Engineers after their training. However, the Board later indicated that training did not guarantee employment. After a series of representations and a high-level meeting in March 1979, the Board decided to provisionally appoint the trainees post-training, but this decision was not implemented. The High Court dismissed petitions challenging the Board's actions, leading to appeals to the Supreme Court. The Court found that the Board, as a statutory authority, was bound by its representations under the doctrine of promissory estoppel. It ruled that the Board's reliance on its own rules to deny regularization was misplaced. The Court directed the Board to regularize the appellants' appointments within three months, ensuring they ranked below earlier recruits but above those appointed after 1983. The appeals were allowed, reversing the High Court's decision, and costs were awarded to the appellants.
Headnote
A) Service Law - Promissory Estoppel - Applicability of promissory estoppel to State employees - Electricity (Supply) Act, 1948, Section 79 - The Court held that the principle of promissory estoppel applied as the Board had made representations to the trainee engineers regarding their absorption into regular employment, which they relied upon to their detriment. The Board's defense based on its own rules was rejected as it could not shield against the equitable doctrine. (Paras 612-613).
Issue of Consideration
Whether the Bihar State Electricity Board was bound by its representations to absorb the trainee engineers into regular employment.
Final Decision
The Supreme Court allowed the appeals, directed the Bihar State Electricity Board to regularize the appointments of the appellants within three months, and established their seniority relative to other recruits.
Law Points
- Promissory estoppel
- statutory authority
- employment rights
- seniority
- regularization of service
