Supreme Court Partially Allows Union of India's Appeal Against Regularization of Casual Workers. Regularization of Seniors Upheld but Direction for Absorption in Other Establishments Set Aside.

  • 3
Judgement Image
Font size:
Print

Case Note & Summary

The Union of India appealed against a judgment of the Allahabad High Court which upheld a direction of the Central Administrative Tribunal to regularize the services of eighteen casual workers at the Regional Training Institute, Allahabad, under the Comptroller and Auditor General of India. The dispute originated from an earlier round of proceedings where the Tribunal in 2006 directed preparation of a seniority list based on days worked and consideration of regularization against vacant Group 'D' posts. The High Court confirmed this order in 2006. Subsequently, the casual workers filed a fresh application in 2008 alleging that despite the directions, the Union of India had regularized persons junior to them in the seniority list. The Tribunal in 2013 found that four persons junior to the applicants had been regularized and directed that the applicants be given the same benefit from the same date as their juniors, with notional fixation of pay but no back wages. The High Court affirmed this and further directed that if posts were not available at the Institute, the applicants could be considered in other establishments. The Supreme Court held that the direction for absorption in other establishments was not justified, as the issue was confined to regularization at the Institute. However, the Court upheld the regularization of the seniors who were overlooked, noting that the Union of India had breached the earlier orders by regularizing juniors. The Court relied on the decisions in Malathi Das v. Suresh and Prem Ram v. Managing Director Uttarakhand Pey Jal and Nirman Nigam Dehradun, which held that where juniors have been regularized, seniors cannot be denied the same benefit, even after the decision in Secretary, State of Karnataka v. Uma Devi (3). The appeal was partly allowed, setting aside the direction for absorption in other establishments but upholding the regularization of the applicants at the Institute.

Headnote

A) Service Law - Regularization of Casual Workers - Seniority List - The Tribunal had directed preparation of a seniority list and consideration of regularization against vacant posts. The Union of India regularized juniors while ignoring seniors, breaching the earlier orders. The Supreme Court upheld the direction to regularize the seniors from the same date as juniors, with notional fixation of pay but no back wages. (Paras 1-8)

B) Service Law - Regularization - Applicability of Uma Devi - The Constitution Bench decision in Secretary, State of Karnataka v. Uma Devi (3) (2006) 4 SCC 1 was rendered after the initial orders. However, the Court held that where juniors have been regularized, seniors cannot be denied the same benefit, relying on Malathi Das v. Suresh (2014) 13 SCC 249 and Prem Ram v. Managing Director Uttarakhand Pey Jal and Nirman Nigam Dehradun (2015) 11 SCC 255. (Paras 6-8)

C) Service Law - Regularization - Direction for Absorption in Other Establishments - The High Court directed that if posts are not available at the Institute, the applicants could be considered in other places. The Supreme Court set aside this direction, holding it was not justified as the issue was limited to regularization in the establishment of the Regional Training Institute. (Paras 5-6)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the High Court was justified in directing regularization of casual workers in other establishments where Group 'D' posts are available, and whether the regularization of seniors who were overlooked in favor of juniors was valid.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court partly allowed the appeal. It set aside the direction of the High Court that the applicants could be considered for regularization in other establishments. However, it upheld the direction of the Tribunal to regularize the applicants from the same date as their juniors, with notional fixation of pay but no back wages, subject to availability of vacancies in respective categories.

Law Points

  • Regularization of casual workers
  • Seniority list
  • Breach of court orders
  • Applicability of Uma Devi
  • Direction for absorption in other establishments
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 LawText (SC) (1) 107

Civil Appeal Nos.175-176 of 2019 (@SLP(C) Nos.37798-37799 of 2013)

2019-01-08

Dr Dhananjaya Y Chandrachud, J.

Mr Vikramjit Banerjee, learned Additional Solicitor General for the appellant; Ms. Preetika Dwivedi for the respondent

Union of India & Ors.

Sant Lal & Ors. etc. etc.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil appeal against a judgment of the Allahabad High Court upholding a direction for regularization of casual workers.

Remedy Sought

The Union of India sought to set aside the direction for regularization and the direction for absorption in other establishments.

Filing Reason

The Union of India was aggrieved by the High Court's judgment affirming the Tribunal's direction to regularize the respondents and consider them for absorption in other establishments.

Previous Decisions

The Central Administrative Tribunal in OA No. 1191 of 2004 (dated 6 January 2006) directed preparation of a seniority list and consideration of regularization. The Allahabad High Court in Civil Miscellaneous Writ Petition No. 15825 of 2006 (dated 23 March 2006) upheld the Tribunal's order. Subsequently, the Tribunal in OA No. 1052 of 2008 (dated 2 April 2013) directed regularization of the applicants from the same date as their juniors. The High Court affirmed this and added a direction for absorption in other establishments.

Issues

Whether the High Court was justified in directing that the applicants could be considered for regularization in other establishments where Group 'D' posts are available. Whether the regularization of seniors who were overlooked in favor of juniors was valid despite the decision in Uma Devi.

Submissions/Arguments

The Union of India argued that no posts were available at the Institute for regularization and that the Multi-Tasking Rules of 2011 had come into force, and at best, age relaxation could be given. The respondents argued that the Union of India had breached the earlier orders by regularizing juniors while ignoring seniors, and relied on Malathi Das and Prem Ram to support regularization.

Ratio Decidendi

Where a court order directs consideration of regularization and the employer regularizes juniors while ignoring seniors, the seniors are entitled to regularization from the same date as juniors, even after the decision in Uma Devi, as per Malathi Das and Prem Ram. However, a direction for absorption in other establishments beyond the specific organization is not justified.

Judgment Excerpts

We find merit in the contention that the direction to consider the casual workers for regularization in other establishments was not justified. The Tribunal has entered a finding of fact that the persons who were regularized were junior to those who ranked above them in the seniority list. In Malathi Das, this Court noted that, as a matter of fact, the authorities had granted regularization to various other individuals who were similarly placed.

Procedural History

The first round began with OA No. 1191 of 2004 before the Central Administrative Tribunal, which on 6 January 2006 directed preparation of a seniority list and consideration of regularization. The Union of India challenged this in Civil Miscellaneous Writ Petition No. 15825 of 2006 before the Allahabad High Court, which on 23 March 2006 upheld the Tribunal's order. Subsequently, the casual workers filed OA No. 1052 of 2008 alleging breach of the earlier order, and the Tribunal on 2 April 2013 directed regularization. The Union of India challenged this before the High Court, which on 19 July 2013 affirmed the Tribunal's order and added a direction for absorption in other establishments. The Union of India then appealed to the Supreme Court by way of SLP(C) Nos. 37798-37799 of 2013, which were converted into Civil Appeal Nos. 175-176 of 2019.

Acts & Sections

  • Industrial Dispute (Central) Rules, 1957: Rule 77
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Restoration of Possession in Criminal Case Under Section 456 CrPC Despite Delay. Trial Court's Original Order for Restoration Stands, Limitation Not Applicable When Order Already Passed at Conviction.
Related Judgement
Supreme Court Supreme Court Partially Allows Union of India's Appeal Against Regularization of Casual Workers. Regularization of Seniors Upheld but Direction for Absorption in Other Establishments Set Aside.