Supreme Court Dissenting Opinion Sets Aside Blanket Termination of Daily Wage Employees in Bihar Anti-Tuberculosis Programme. Casual Labourers Held Not Holders of Posts, Thus Not Subject to 1980 Office Memorandum; Regularisation Protected Under Articles 14 and 16, and Blanket Termination Violates Article 21.

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Case Note & Summary

The case involved a batch of appeals before the Supreme Court of India arising from the termination of 1363 daily wage employees appointed under an anti-tuberculosis programme in the State of Bihar. Dr. A.A. Mallick, Deputy Director (Tuberculosis), had been vested with almost absolute powers to achieve targets set by the Government of India. He appointed a large number of class III and IV employees, causing the number of appointees to rise from about 2500 sanctioned posts to around 6000. Questions were raised in the Legislative Assembly by 1987, and employees who were not paid salaries approached the Patna High Court in about 250 writ petitions. The High Court directed an inquiry and appropriate orders for payment of salary for the period actually worked, subject to fulfilment of criteria. A high-powered committee was constituted, issued notices for personal hearing between 17.8.92 and 29.9.92, and submitted a report. Based on this report, a blanket termination order was issued on 30.4.93 terminating services of all employees. The affected employees challenged the termination before the High Court, which dismissed virtually all writ petitions on May 6, 1994. They then appealed to the Supreme Court under Article 136 of the Constitution. The main legal issues were whether the initial appointments were in accordance with law, whether the services were duly regularised, and whether natural justice was complied with before termination. Appellants argued that they were daily wage earners engaged for a crash programme, not appointed to posts, so the Office Memorandum dated 3.12.1980 did not apply. They also contended that regularisation is a constitutionally protected right under Dharwad's case. The State argued that even initial appointments required following the OM procedure and relied on Union of India v. Deepchand Pandey. Hansaria J, in his opinion, held that a casual labourer is not the holder of a post, as per the Constitution Bench in State of Assam v. Kanak Chandra Dutta, and distinguished Deepchand Pandey as not deciding that casual workers hold posts. He thus held that the OM procedure was not required for initial daily wage appointments. On regularisation, he noted the constitutionally protected right and the norms summarised in State of Haryana v. Piara Singh. He emphasised that Article 21 requires a cautious approach to protect livelihood and that only wrong-doers should be punished, not those with mere doubt. Consequently, Hansaria J opined that the impugned blanket termination order deserved to be set aside, disagreeing with the other judge who upheld the termination.

Headnote

A) Service Law - Daily Wage Appointments - Applicability of Recruitment Procedure - Constitution of India, Article 16 - The initial appointments were made on daily wage basis to implement a crash anti-tuberculosis programme, not against sanctioned posts. The Office Memorandum dated 3.12.1980 prescribed procedure for appointment to posts, but as held in State of Assam v. Kanak Chandra Dutta, a casual labourer is not holder of a post. Union of India v. Deepchand Pandey did not decide that casual workers hold posts. Held that the OM procedure was not required for initial daily wage appointments (Paras 7-11).

B) Service Law - Regularisation - Constitutionally Protected Right - Constitution of India, Articles 14 and 16 - Regularisation of ad-hoc/temporary employees is a constitutionally protected right as per Dharwad's case (1990) 2 SCC 396. The law summarised in State of Haryana v. Piara Singh (1992) 4 SCC 118 requires regular recruitment through prescribed agency, replacement of ad hoc by regular appointees, employment exchange sponsorship, publication of notice, and reservation for SC/ST. Held that regularisation claims must be examined in light of these norms, and procedural requirements should not defeat the protected right (Paras 13-15).

C) Constitutional Law - Natural Justice - Blanket Termination of Services - Constitution of India, Article 21 - The blanket termination order of 30.4.1993 affected 1363 employees and took away livelihood. Hansaria J emphasized that Article 21 requires a cautious approach and that only wrong-doers should be punished, not those with mere doubt. He opined that the impugned termination order deserved to be set aside rather than upheld, differing from the other judge. Held that termination must comply with natural justice and individual consideration (Paras 1, 2, 2A).

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Issue of Consideration

Whether the initial appointments of the appellants were in accordance with law; whether the services of the appellants were duly regularised; whether natural justice had been complied with before their services were terminated

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Final Decision

Hansaria J held that the initial appointments of the appellants were not to any posts, being daily wage engagements for a crash programme, so the procedure under the 1980 Office Memorandum did not apply. He further opined that the blanket termination order dated 30.4.93 deserved to be set aside, and the appeals should be allowed, as the State had not complied with legal requirements and natural justice.

Law Points

  • Casual labourer is not holder of a post
  • daily wage appointments for crash programme not subject to Office Memorandum procedure
  • regularisation of ad hoc/temporary employees is constitutionally protected
  • recruitment norms from State of Haryana v. Piara Singh apply
  • natural justice and Article 21 protect livelihood
  • blanket termination without individual consideration invalid
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Case Details

1995 LawText (SC) (11) 95

Civil Appeal Nos 10760-11058, 11062-66 of 1995

1995-11-16

K. Ramaswamy, B.L. Hansaria

JT 1995 (8) 563, 1995 SCALE (6) 779

Shri Shanti Bhushan, Shri Verma

Ashwani Kumar & Ors.

State of Bihar & Ors.

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Nature of Litigation

Challenge by terminated daily wage employees to blanket termination order issued by State of Bihar

Remedy Sought

Appellants sought setting aside of the termination order dated 30.4.93 and reinstatement/continuation of service with consequential benefits

Filing Reason

State Government issued a blanket order terminating services of all employees after a high-powered committee found irregularities in appointments; appellants challenged this before High Court and then Supreme Court under Article 136

Previous Decisions

High Court of Judicature at Patna dismissed virtually all writ petitions by order dated May 6, 1994; earlier High Court had directed enquiry into individual cases for payment of salary for period worked

Issues

Whether the initial appointments of the appellants were in accordance with law? Whether the services of the appellants were duly regularised? Whether natural justice had been complied with before their services were terminated?

Submissions/Arguments

Appellants argued that initial appointments were made on daily wage basis to implement a crash anti-tuberculosis programme, not against sanctioned posts, and thus the Office Memorandum dated 3.12.1980 did not apply. Appellants contended that regularisation of ad hoc/temporary employees is a constitutionally protected right as per Dharwad's case and should not be defeated by procedural requirements. State argued that even initial appointments required following the procedure prescribed in the Office Memorandum dated 3.12.1980. State relied upon Union of India v. Deepchand Pandey to contend that even casual workers on daily wages are holders of posts requiring compliance with OM. State also relied on State of Haryana v. Piara Singh to assert that regularisation must follow prescribed procedure including employment exchange sponsorship, advertisement, and reservation.

Ratio Decidendi

A casual labourer is not the holder of a post, as held in State of Assam v. Kanak Chandra Dutta; therefore, the recruitment procedure prescribed by the Office Memorandum for appointment to posts does not apply to daily wage appointments for a crash programme. Regularisation of ad hoc/temporary employees is a constitutionally protected right under Dharwad's case, subject to norms summarised in State of Haryana v. Piara Singh. Blanket termination affecting livelihood must comply with natural justice and Article 21; punishing wrong-doers should not visit innocent persons with mere doubt. Union of India v. Deepchand Pandey is distinguishable as it did not decide that casual workers hold posts.

Judgment Excerpts

A wrong-doer, a sinner, has to be punished; so too those who aid, abet or instigate him. But not those regarding whom only a doubt is created. A casual labourer is not the holder of a post. The normal rule, of course, is regular recruitment through the prescribed agency but exigencies of administration may sometimes call for an ad hoc or temporary appointment to be made.

Procedural History

The State Government in Health Department noticed some anti-tuberculosis centres were not working as per directions of Dr. A.A. Mallick, Deputy Director (Tuberculosis). Dr. Mallick, vested with almost absolute powers, appointed large numbers of persons as class III/IV employees, leading to appointments ballooning from about 2500 sanctioned posts to 6000. Questions arose in the Assembly by 1987. Persons not paid salary approached the High Court of Judicature at Patna, around 250 writ petitions. The High Court directed an enquiry and appropriate orders for payment of salary for actual work if criteria fulfilled. A high-powered committee was formed, issued notices for personal hearing between 17.8.92 to 29.9.92, and submitted a report. On 30.4.93, a blanket order terminated services of all employees. The employees challenged this before the High Court, which dismissed virtually all writ petitions on May 6, 1994. The affected employees filed appeals under Article 136 of the Constitution in the Supreme Court. Hansaria J delivered a dissenting opinion, holding that the termination order should be set aside.

Acts & Sections

  • Constitution of India: Article 21, Article 323-A, Article 16
  • Administrative Tribunals Act, 1985:
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