Supreme Court Quashes Interim Order Restraining Corporation from Appointing New Contractual Employees. High Court's Order Set Aside for Lack of Reasons and Failure to Consider Absence of Employer-Employee Relationship.

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Case Note & Summary

The case involves an appeal by the Rajasthan State Road Development and Construction Corporation Ltd. against an interim order of the Rajasthan High Court. The respondent, Piyush Kant Sharma, was appointed as a Computer Operator on a contractual basis through a contractor, M/s Sahara Supreme Security Service. He filed a writ petition seeking regular pay scale and regularization, claiming he had served the Corporation for three years. The Corporation contended that there was no employer-employee relationship and no sanctioned post of Computer Operator. During the pendency of the writ petition, the Corporation issued a new e-tender and awarded a contract to M/s Rakshak Security (P) Ltd. for providing Computer Operators. The High Court, by an interim order dated 23.09.2019, restrained the Corporation from appointing new contractual employees in place of the writ petitioner. The Supreme Court found that the High Court passed the interim order without assigning any reasons and without considering the Corporation's submissions regarding the absence of an employer-employee relationship and sanctioned posts. The Supreme Court allowed the appeal, quashed the interim order, and directed that the writ petition be decided on merits without being influenced by the interim order.

Headnote

A) Service Law - Interim Order - Restraining Appointment - The High Court passed an interim order restraining the appellant Corporation from appointing new contractual employees in place of the writ petitioner without assigning any reasons and without considering that the writ petitioner was a contractor's employee with no employer-employee relationship with the Corporation - The Supreme Court held that such an interim order was erroneous and quashed it - (Paras 6-7).

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Issue of Consideration

Whether the High Court was justified in passing an interim order restraining the appellant Corporation from appointing new contractual employees in place of the writ petitioner without assigning reasons and without considering the absence of employer-employee relationship.

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Final Decision

The Supreme Court allowed the appeal, quashed and set aside the impugned interim order dated 23.09.2019 passed by the High Court in S.B. Civil Writ Petition No. 1924 of 2019. No costs.

Law Points

  • Interim orders must be reasoned
  • No interim relief without prima facie case
  • Employer-employee relationship must be established for regularization
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Case Details

2020 LawText (SC) (10) 34

Civil Appeal No. 3489 of 2020 (Arising out of SLP (C) No. 95 of 2020)

2020-10-15

Ashok Bhushan, R. Subhash Reddy, M. R. Shah

Rajasthan State Road Development and Construction Corporation Ltd.

Piyush Kant Sharma & Ors.

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Nature of Litigation

Civil appeal against an interim order of the High Court in a writ petition seeking regularization of services.

Remedy Sought

The appellant Corporation sought quashing of the interim order restraining it from appointing new contractual employees.

Filing Reason

The High Court passed an interim order without assigning reasons and without considering the Corporation's submissions.

Previous Decisions

The High Court passed an interim order dated 23.09.2019 in S.B. Civil Writ Petition No. 1924 of 2019.

Issues

Whether the High Court was justified in passing an interim order restraining the Corporation from appointing new contractual employees without assigning reasons. Whether the High Court erred in not considering the absence of employer-employee relationship and sanctioned posts.

Submissions/Arguments

Appellant Corporation argued that the writ petitioner was a contractor's employee with no employer-employee relationship and no sanctioned post existed. Respondent argued that similarly situated Computer Operators were continued and there was a requirement for Computer Operators.

Ratio Decidendi

An interim order restraining a party from appointing new contractual employees must be supported by reasons and a prima facie case. The High Court erred in passing such an order without considering the absence of employer-employee relationship and sanctioned posts.

Judgment Excerpts

We are of the opinion that the High Court has committed a grave error in passing such an interim order restraining the appellant Corporation from appointing new set of contractual employees in place of original writ petitioners. No reasons, whatsoever have been assigned by the High Court while passing the impugned interim order.

Procedural History

The respondent filed a writ petition before the Rajasthan High Court seeking regularization. During its pendency, the High Court passed an interim order restraining the Corporation from appointing new contractual employees. The Corporation appealed to the Supreme Court.

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Supreme Court Supreme Court Quashes Interim Order Restraining Corporation from Appointing New Contractual Employees. High Court's Order Set Aside for Lack of Reasons and Failure to Consider Absence of Employer-Employee Relationship.
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