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No recruitment through backdoor; SC holds if appointments are illegal, then such employees have no legal right to continue in service

No recruitment through backdoor; SC holds if appointments are illegal, then such employees have no legal right to continue in service

By HRIOL News Service

NEW DELHI, JUNE 13, 2006 : THE issue pertaining to the right of temporary government employees for regular appointment was settled by the Constitution Bench of Apex Court in a landmark judgment reported in 2006-HRIOL-07-SC-SERVICE wherein it was held that temporary employees have no permanency rights. In the said case, after going through elaborate arguments and analysis thereof, the Supreme Court held that unless the appointment is in terms of relevant rules and after a proper competition among qualified persons, the same would not confer any right on the appointee. It was also held therein that any public employment has to be in terms of the constitutional scheme. A detailed write up on the said judgment was carried in the News N Views Section.

Another similar issue came under the scanner of the Hon'ble Apex Court. This time around, the Appellant is a public sector undertaking. A policy decision was taken by the Appellant not to recruit any one in their Marketing Division. Despite such ban, appointments on contractual basis were made, apparently at the instance of two officers of the Appellant. Before such appointment the employment exchange was not intimated about the vacancy in terms of the provisions of Employment Exchange (Compulsory Notification of Vacancies) Act, 1959. No advertisement for the vacancy was also issued . Writ Petitions were filed by 52 employees before several High Courts praying for regularization of their services. Different views were expressed by different High Courts. The writ petitions filed by S/Shri Somvir Singh, Hansraj Benewal, Malkiat Singh, Ranjit Singh were allowed directing the Appellant to regularise the said Respondents and pay them all monetary benefits in terms of the appointment letters. Aggrieved with the said Order of the High Court, the public sector undertaking took recourse to the Apex Court.

The Learned Counsel for the Appellant submitted that the matter relating to regularisation of services recruited on ad hoc basis is no longer res integra in view of the recent Constitution Bench decision of the Supreme Court in Secretary, State of Karnataka and Others vs. Umadevi and Others [2006 (4) SCALE 197] = [ 2006-HRIOL-07-SC-SERVICE ]. The Learned Counsel for the Respondents, on the other hand, submitted that the appointments of the Respondents may be irregular but not illegal and view of the same, the impugned judgments need not be interfered with.

After a detailed examination of the issue, Hon'ble Apex Court interalia held that

++ The Respondents herein were appointed only on applications made by them. Admittedly, no advertisement was issued in a newspaper nor the employment exchange was notified as regard existence of vacancies.

++ When Recruitment Rules are made, the employer would be bound to comply with the same.

++ Any appointment in violation of such Rules would render them as nullities.

++ It is also well-settled that no recruitment should be permitted to be made through backdoor .

The order of ban suggests that if any appointment was to be made due to exigencies of work, the approval of the Director (Finance) or Managing Director was to be obtained and the paper routed in respect thereof should be through the corporate office.

++ The Respondents contend that as at the point of time the Managing Director had been placed under suspension, the file was placed before the General Manager (Marketing). The said plea cannot be accepted for more than one reason. If the regular incumbent or the Managing Director was placed under suspension, somebody else must be incharge of the said post . Furthermore, the file be placed before the Director (Finance). The General Manager by no stretch of imagination could accord approval for appointment.

++ Regularisation is not a mode of appointment . If appointment is made without following the Rules, the same being a nullity the question of confirmation of an employee upon the expiry of the purported period of probation would not arise.

++ The contention of the learned counsel appearing on behalf of the Respondents that the appointments were irregular and not illegal, cannot be accepted for more than one reason. They were appointed only on the basis of their applications. The Recruitment Rules were not followed. Even the Selection Committee had not been properly constituted. In view of the ban in employment, no recruitment was permissible in law. The reservation policy adopted by the Appellant had not been maintained. Even cases of minorities had not been given due consideration.

++It is true that the Respondents had been working for a long time. It may also be true that they had not been paid wages on a regular scale of pay. But, they did not hold any post. They were, therefore, not entitled to be paid salary on a regular scale or pay. Furthermore, only because the Respondents have worked for some time, the same by itself would not be a ground for directing regularisation of their services in view of the decision of this Court in Uma Devi (supra).

++The appointments of the Respondents are illegal. They do not, thus, have any legal right to continue in service.

Before parting : Though the four respondents were directed to be relieved of their posts the said judgment also had a silver lining to the dark clouds. The Hon'ble Apex Court was considerate enough to observe that their cases may be considered for future appointment and age bar, and age bar, if any, in view of the policy decision of the Appellant itself may be relaxed to the extent they had worked. With an eye to avoid further litigation, Apex Court also held that the salary or any remuneration paid to them, however, may not be recovered.. May be the Appellant will consider the Respondents for appointment, if the need so arises!!! Or is it a case of hoping against hope for the Respondents!!! Only time will tell.

(See 2006-HRIOL-11-SC-Service )



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