Citation : 2026 Latest Caselaw 2734 Jhar
Judgement Date : 7 April, 2026
2026:JHHC:9928
IN THE HIGH COURT OF JHARKHAND AT RANCHI
Cont. Case (Civil) No. 969 of 2025
.........
1. Priya Kumari, aged about 37 years, wife of Prabhat Kumar Agrawal, resident of Santman Nagar, Road No.02, Old HB Road, Imam Kothi, Deepatoli, P.O. & P.S. Bariatu, District Ranchi.
2. Subodh Kumar Upadhyay, aged about 51 years, son of Bipin Bihari Upadhyay, resident of Siyaram Nagar, Ranchi Road, P.O. Marar, P.S. Mandu, District Ramgarh, presently residing at Flat No.503, Anjali Apartment (Behind K.C. Roy Memorial Hospital), P.O. & P.S. - Lalpur, Ranchi.
3. Mahwish Zabeen, aged about 38 years, daughter of Mohammad Imtiyaz Alam, resident of near Ranchi Public School, Firdous Colony, L.F. Road, Hindpiri, P.O., G.P.O. & P.S. Hindpiri, District Ranchi. ..... Petitioner (s) Versus
1. The State of Jharkhand.
2. Prem Kumar Tiwary son of Ramakant Tiwary presently posted and working as General Manager, Administration, Jharkhand State Mineral Development Corporation Limited, having its office at Khanij Nigam Bhawan, P.O. & P.S. Doranda, District Ranchi.
3. Pradeep Kumar Sah son of Ramdhani Sah, presently posted and working as Establishment In-Charge, Jharkhand State Mineral Development Corporation Limited, having its office at Khanij Nigam Bhawan, P.O. & P.S. Doranda, District Ranchi.
..... Contemnor(s)/Opposite Party(s) with
.........
1. Priya Kumari, aged about 37 years, wife of Prabhat Kumar Agrawal, resident of Santman Nagar, Road No.02, Old HB Road, Imam Kothi, Deepatoli, P.O. & P.S. Bariatu, District Ranchi.
2. Subodh Kumar Upadhyay, aged about 51 years, son of Bipin Bihari Upadhyay, resident of Siyaram Nagar, Ranchi Road, P.O. Marar, P.S. Mandu, District Ramgarh, presently residing at Flat No.503, Anjali Apartment (Behind K.C. Roy Memorial Hospital), P.O. & P.S. -
2026:JHHC:9928
Lalpur, Ranchi.
3. Mahwish Zabeen, aged about 38 years, daughter of Mohammad Imtiyaz Alam, resident of near Ranchi Public School, Firdous Colony, L.F. Road, Hindpiri, P.O., G.P.O. & P.S. Hindpiri, District Ranchi. ..... Petitioner (s) Versus
1. The State of Jharkhand, through the Secretary, Mines & Geology Department, Government of Jharkhand, having its office at Nepal House, P.O. & P.S. Doranda, District Ranchi.
2. Jharkhand State Mineral Development Corporation Limited, through its Managing Director, having its office at Khanij Nigam Bhawan, P.O. & P.S. Doranda, District Ranchi.
3. The General Manager, Administration, Jharkhand State Mineral Development Corporation Limited, having its office at Khanij Nigam Bhawan, P.O. & P.S. Doranda, District Ranchi.
4. M/s Evergreen Services, through its Authorized Representative, having its registered office at Shop No.F- 9, Housing Board Marketing Complex, P.O. & P.S. Argora, District Ranchi.
5. In-Charge Establishment, Jharkhand State Mineral Development Corporation Limited, having its office at Khanij Nigam Bhawan, P.O. & P.S. Doranda, District Ranchi. ..... Respondent(s) .........
CORAM: HON'BLE MR. JUSTICE DEEPAK ROSHAN .......
For the Petitioner(s) : Mr. Rupesh Singh, Advocate For the Respondent(s): Mr. Gyan Prakash Tiwari, A.C. to G.P.-III Mr. Indrajit Sinha, Advocate M/s. Deepak Kumar Dubey, Rashi Sharma, Ruhi Dueby, Advocate .........
C.A.V. ON: 19/01/2026 PRONOUNCED ON:07/04/2026
1. Heard learned counsel for the parties.
2. The petitioners have challenged the letter bearing
No. 582 dated 09.05.2025 issued by the Jharkhand State
Mineral Development Corporation Limited (hereinafter
2026:JHHC:9928
referred to as "JSMDC") by which an outsourced agency
namely M/s Evergreen Services has been directed to
provide a list of 8 eligible candidates for appointment on
the post of Accountant in the JSMDC by 19.05.2025 and
the candidates should appear alongwith their bio-data in
the interview for engagement on contractual basis.
The petitioners have further prayed for a direction
not to disengage them by replacing one set of contractual
employees by another set of contractual employees and
further the benefits of enhanced dearness allowance have
also been claimed in view of the Resolution dated
18.02.2022 and 03.05.2023 issued by the Department of
Finance, Government of Jharkhand.
Brief Facts
3. The petitioners were appointed on the basis of an
annual contract to discharge the function of an Accountant
during the period 2017-2019, pursuant to advertisement
bearing Advertisement Notice No. 02/ 2016 and
Recruitment Notice No. 02/2018 on a consolidated monthly
remuneration of Rs. 29,060/-. The services of the
petitioners have been extended from time to time.
Case of the petitioners
4. The grievance of the petitioners is that though they
were working on contractual basis as Accountants under
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JSMDC from 2017 or 2019, however, the JSMDC was
replacing one set of contractual employees by appointing
another group of contractual employees for the post of
Accountant, which is contrary to the decisions of the
Hon'ble Apex Court.
Case of the JSMDC
5. The petitioners are working for last 5 to 6 years
and their case cannot be considered for regularization as
there is no policy for regularization in JSMDC and in
absence of any policy, no contractual employee has any
vested right to claim regularization of service. The
contractual employees can only be employed for a period of
5 years maximum in view of the decision taken by the
Department of Personnel, Administrative Reforms and
Rajbhasha, Government of Jharkhand as contained in
Memo No. 4063 dated 18.05.2016. The policy decision has
been taken by the JSMDC for taking services from the
outsourced agency.
Issues.
6. The issues which arise for consideration before this
Court are as follows:-
i. Whether the services of the petitioners can be regularized in absence of any policy ? ii. Whether one set of contractual employees can be replaced by another set of contractual employees ?
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iii. Whether the petitioners are entitled for the benefits of enhanced dearness allowance in view of the Resolution dated 18.02.2022 and 03.05.2023 issued by the Department of Finance, Government of Jharkhand ?
Regularisation
7. Though the petitioners are working for last 5 to 6
years their case cannot be considered for regularization as
there is no policy for regularization under JSMDC and they
have not questioned the same. In absence of any
regularization policy, no contractual employee has any
vested right to claim regularization of service. It is well
settled principle of law that regularization cannot be
claimed as a matter of right unless there exists a specific
scheme or policy framed by the competent authority. The
engagement of the petitioners on contractual basis is purely
temporary in nature and does not confer any right for
regular appointment in the absence of compliance with
prescribed Recruitment Rules. The petitioners, being purely
contractual appointees, have no enforceable legal or
fundamental right to seek continuation, renewal, or
regularization of their services.
8. Admittedly, in the present case the petitioners have
not worked for more than 10 years and have not completed
the minimum period of service required in view of the
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judgment passed by the Hon'ble Supreme Court of India in
the case of Secretary, State of Karnataka versus Uma
Devi (3) reported in (2006) 4 SCC 1, and there is no
scheme or policy for regularization and hence, in the
present case the claim for regularization is rejected and no
directions can be given for framing a policy as the Courts
generally cannot issue a writ of mandamus to compel the
executive or legislature to frame a specific policy.
Replacement of Contractual Employees by another set
of Contractual Employees
9. It is well settled that a contractual employee has no
vested right to seek extension or renewal of contract. In
Yogesh Mahajan v. AIIMS reported in (2018) 3 SCC 218,
the Hon'ble Supreme Court of India has held that a
contractual employee cannot claim extension of service as a
matter of right. Similarly, in Institute of Management
Development v. Pushpa Srivastava reported in (1992) 4
SCC 33, it was held that upon expiry of the contractual
period, the right to continue in service comes to an end. In
the present case, the contracts of the petitioners have
expired in the year 2025.
10. The terms of appointment unequivocally stipulate
that the engagement was temporary, time-bound, and
would automatically come to an end upon expiry of the
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contractual period. It is a settled proposition of law that
contractual employment does not confer any right to
continuation or renewal beyond the stipulated term. The
relationship between the petitioners and the JSMDC is
governed strictly by the terms and conditions of their
respective contracts, which were for a fixed tenure and
stood terminated by efflux of time.
11. The engagement of the petitioners was not
continuous in the legal sense but consisted of a series of
fixed-term contracts. Each extension granted to the
petitioners constituted a fresh contractual engagement.
12. So far, the issue with respect to replacement of
contractual employees by another set of contractual
employees is concerned; there is decision taken by the
Government which is contained in Memo No. 4063 dated
18.05.2016 which prescribes a minimum tenure of three
years and a maximum tenure of five years for contractual
employees. The said decision is binding upon all State
instrumentalities, including the JSMDC. The JSMDC has
brought on record the decision of the Government, which
bars the JSMDC to engage any contractual employee for
more than five years.
The petitioners have neither challenged the validity
of the same; nor sought any relief against it.
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13. In the present case it is clearly established that the
contractual services of the petitioners are not being
replaced by another set of contractual employees; rather,
the same is being replaced by outsourcing agency and the
same is a policy decision and no challenge has been made
towards the policy and hence, no relief can be granted.
14. The petitioners are at liberty to apply to the
outsourced agency and their cases shall be considered
sympathetically and in accordance with the work
experience and qualifications and the admissible dues shall
be paid to them regularly. It is expected that the petitioners
shall work with utmost sincerity and integrity.
Enhanced Dearness
15. So far the claim of the petitioners with respect to
grant of enhanced dearness allowances are concerned; the
liberty is granted to the petitioners for making
representation to the Managing Director, JSMDC and the
same shall be considered by the Managing Director,
JSMDC in accordance with the circular of Department of
Finance, and if the petitioners are found to be entitled, the
benefits shall be extended to them and in the event any
adverse decision is taken the same shall be communicated
to the petitioner by a reasoned order.
Contempt Case (Civil) No. 969 of 2025
2026:JHHC:9928
16. By an order dated 25.06.2025, in W.P.(s) No. 2981
of 2025 an interim order was passed that the petitioners
shall not be disturbed by appointing any other employees
on contractual basis. Alleging non-compliance of this order
a contempt petition has been filed being Contempt Case
(Civil) No. 969 of 2025, which was heard parallelly and is
being disposed of by this common order.
17. The petitioners were removed/disturbed before the
interim order dated 25.06.2025 was passed by this Court,
hence there is no wilful, deliberate and intentional
disobedience to the Court's order which could have
amounted to contempt and consequently the instant
contempt is dropped. Pending IAs, if any, are closed.
(Deepak Roshan, J.) Dated:07/04/2026 Amardeep/ A.F.R
Uploaded on 09.04.2026
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