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Son Of Benudhar Sahoo vs Central Electricity Supply Utility Of ...
2025 Latest Caselaw 1683 Ori

Citation : 2025 Latest Caselaw 1683 Ori
Judgement Date : 25 July, 2025

Orissa High Court

Son Of Benudhar Sahoo vs Central Electricity Supply Utility Of ... on 25 July, 2025

              ORISSA HIGH COURT : CUTTACK

                   W.P.(C) No.13753 of 2020
                               &
                   W.P.(C) No.13752 of 2020

  In the matter of an Application under Articles 226 and 227
               of the Constitution of India, 1950

                               ***

W.P.(C) No.13753 of 2020

1. Pabitra Kumar Mallick, Aged about 39 years Son of Kashinath Mallick Presently residing At: Kakarudrapur, Via: Balipatna District: Khordha.

2. Sukanta Kumar Biswal Aged about 33 years Son of Sadasiba Biswal At: Sunapada, P.O.: Haripur Via: Pipili, District: Puri.

3. Biswajit Satapathy Aged about 42 years Son of Late Purna Chandra Satapathy At/PO: Biswanathapur Via: Balipatna, District: Khordha.

4. Susanta Kumar Sahoo Aged about 38 years Son of Sankar Sahoo At: Raghunathpur Patna P.O.: Gholapur District: Cuttack.

5. Santanu Kumar Sahoo Aged about 38 years

Son of Benudhar Sahoo At: Champabasta, P.O.: Balipatna District: Khordha.

6. Kalandi Senapati Aged about 51 years Son of Siba Senapati At: Kunchapada P.O.: Banamalipur District: Khordha.

7. Deepak Kumar Mohapatra Aged about 47 years Son of Sarata Chandra Mohapatra At: Sibabrahmapur P.O.: Banamalipur District: Khordha.

8. Brundaban Chinara Aged about 42 years Son of Late Ghanashyama Chinara At: Athanpur At/P.O./District: Khordha. ... Petitioners.

-VERSUS-

1. Central Electricity Supply Utility of Odisha Represented through Chief Executive Officer Having its Head Office At 2nd Floor, IDCO Towers Janapath, Bhubaneswar.

2. Senior General Manager (HR), At 2nd Floor, IDCO Towers, Janapath, Bhubaneswar.

3. Manager (Electrical), Nimapara Electrical Division Nimapara (NED)

At/P.O.: Dighalo, Nimapara District: Puri.

4. Tata Power Limited Represented though CEO & Managing Director Having its Registered Office At Bombay House, 24, Homi Mody Street Mumbai, Maharashtra.

5. Tata Power Central Odisha Distribution Ltd.

(TPCODL) Represented though Chairman Having its Registered Head Office At 2nd Floor, IDCO Tower Janpath, Bhubaneswar District: Khordha. ... Opposite parties.

Jiten Kumar Behera, Aged about 30 years, Son of Late Gagan Bihari Behera, presently residing at Taila, P.O.: Dhanetri, P.S.: Konark, District: Puri. ... Petitioner.

-VERSUS-

1. Central Electricity Supply Utility of Odisha Represented through Chief Executive Officer, having its Head Office At 2nd Floor, IDCO Towers Janapath, Bhubaneswar.

2. Senior General Manager (HR), At 2nd Floor, IDCO Towers, Janapath, Bhubaneswar.

3. Manager (Electrical), Bhubaneswar City Distribution Division-1 (BCDD-1), At/P.O.: Bhubaneswar, District: Khordha.

4. Tata Power Limited Represented though CEO & Managing Director Having Registered Office At Bombay House 24, Homi Mody Street, Mumbai Maharashtra.

5. Tata Power Central Odisha Distribution Ltd.

(TPCODL), represented though Chairman Having its Registered Head Office At 2nd Floor, IDCO Tower Janpath, Bhubaneswar, District: Khordha. ... Opposite parties.

Counsel appeared for the parties:

For the Petitioners : Mr. Budhadev Routray, Senior Advocate assisted by M/s. S.D. Routrary, B.R. Pattanayak, Shakti Sekhar, Jagdish Biswal, A.K. Das and M.M. Panda, Advocates

For the Opposite party : M/s. Bijaya Kumar Dash, Nos.1, 2, 4 & 5 Rajbhusan Dash, Smruti Ranjan Dash, Ramesh Chandra Sethy and Kishor Nayak, Advocates

For the Opposite Party : None No.3

For the Petitioner : Mr. Budhadev Routray, Senior Advocate assisted by M/s. S.D. Routrary, B.R. Pattanayak, Shakti Sekhar, Jagdish Biswal, A.K. Das and M.M. Panda, Advocates

For the Opposite party : M/s. Bijaya Kumar Dash, Nos.1, 2, 4 & 5 Rajbhusan Dash, Smruti Ranjan Dash, Ramesh Chandra Sethy and Kishor Nayak, Advocates

For the Opposite Party : None No.3

P R E S E N T:

HONOURABLE MR. JUSTICE MURAHARI SRI RAMAN

Date of Hearing : 23.07.2025 :: Date of Judgment : 25.07.2025

J UDGMENT

MURAHARI SRI RAMAN, J.--

THE WRIT PETITIONS:

Assailing the order dated 04.01.2020 of the Senior General Manager (HR)-opposite party No.2, by which the petitioners are denied regularisation in service notwithstanding the bipartite settlement dated 08.06.2010, by virtue of which other similarly placed

Non-ITI workers engaged through outsourcing agency were regularized, but the petitioners are left out, these writ petitions, being W.P.(C) Nos.13753 of 2020 and 13752 of 2020, are filed craving to invoke extraordinary jurisdiction under Articles 226 and 227 of the Constitution of India with the following prayer(s)1:

"It is therefore, most humbly prayed that this Hon‟ble Court be graciously pleased to:

     i)     Admit the writ application.

     ii)    Call for the record.

iii) Issue Rule Nisi calling upon the opposite parties more particular opp. Party no.2 to show cause as to why the letter dated 04.01.2020 issued by the opposite party No.2 under Annexure-8 shall not be quashed;

iv) If the opposite parties more particularly opp. Party no.2 do not show cause or show insufficient cause issue a writ in the nature of certiorari or any other appropriate writ/writs, order/orders, direction/ directions by quashing the letter dated 04.01.2020 issued by the opposite party No.2 under Annexure-8;

v) Issue a writ in the nature of mandamus or any other appropriate writ/writs, order/orders, direction/ directions directing the opp. Party No.2 to appoint the petitioners ("petitioner" in WP(C) No.13752 of 2020) to the post of Helper Trainee and subsequently regularize the services of the

1 Identical prayers are made in both the writ petitions being W.P.(C) Nos.13753 of 2020 and 13752 of 2020.

petitioners ("service of the petitioner" in WP(C) No.13752 of 2020) as agreed upon by the union of the petitioners and opposite party No.1 management in the bi-partite settlement dated 08.06.2010 under Annexure-3;

vi) Issue a writ in the nature of mandamus of any other appropriate writ/writs, order/orders, direction/ directions directing the opp. Party no.2 to grant all consequential service benefits to the petitioners ("petitioner" in WP(C) No.13752 of 2020) as has already been extended to their counterparts from the date of their appointment to the post of Trainee Helper as per the bi-lateral settlement dated 08.06.2010 under Annexure-3;

vii) And/or pass any other order/orders, direction/ directions as this Hon‟ble Court deems fit and proper for the ends of justice.

And for this act of kindness, the petitioner as in duty bound shall ever pray."

Factual matrix:

2. The facts emanated from the pleadings reveal that the petitioners, Non-ITI, engaged to work as Helper through outsourcing agency, namely, Maa Tarini Security Services in the year 2005 under the Central Electricity Supply Utility of Odisha-opposite party No.1, being not regularized in service, through their Union placed grievance for resolution on 03.12.2009 between the Management and the representatives of the Union. The charter of demands inter alia at Serial No.6 contained

regularization of all categories of contract workers, such as, ITI, Non ITI (Helper), Data Entry Operator, Office Assistant, Attendant and others workers. The opposite party No.1 settled the said dispute vide Bi-partite Settlement dated 08.06.2010, wherein at paragraph-3 it is decided as under:

"3. Outsourced Non-ITI working in O & M:

Those Non-ITIs working in Operation and Maintenance activities and have already completed one year engagement in CESU through outside agency would be considered as Helper (Trainee) and would be placed on 3½ years training period. The stipend payable during the training period is given in Annexure-B. On successful completion of training period, they will be placed in Regular Pay Scale of Scale of Rs.4440-10200 with grade pay of Rs.1750/- and their basic pay will be fixed at Rs.4440/-. Before they are taken as Trainee, they are subjected to qualifying the Viva-voce & practical desk-top test."

2.1. The opposite party No.2-Senior General Manager (HR) on 09.08.2010 issued a letter to all the General Managers, Deputy General Manager, Additional General Manager and Managers in-Charge of Circles/Divisions stating that the Management of CESU had decided to bring all the outsourced helpers (Non-ITIs excluding security guards) engaged in Operation and Maintenance activities and Peons/Attendants (Non-ITIs excluding security guards) to the trainee fold of CESU subject to qualifying

interview and practical desktop test and also vide Letter dated 15.02.2011 provided the date and venue of desk- top test and interview for the post of Helper (trainee).

2.2. In the meantime, the Odisha State Electricity Board Shramik Maha Sangha and one Security Guard, who was working in the Bhubaneswar City Distribution Division No.1 of CESU filed writ petition being WP(C) No.4188 of 2011 before this Court, wherein vide order dated 23.02.2011 notices were issued with interim protection staying the selection process of post of Helper (Trainee). Therefore, the desk-top and interview test of the Non-ITI workers could not proceed in view of interim order passed by this Court. However, vide order dated 11.08.2011 said writ petition came to be dismissed and, consequently, the interim order stood vacated.

2.3. After dismissal of the aforesaid writ petition, certain Helpers (Trainees) after successful completion of three and half years of training under CESU, were regularized in service vide Office Order dated 30.10.2014, while the petitioners are side tracked.

2.4. The Board of CESU in its 42nd Meeting held on 10.06.2014 again decided to bring the existing left out outsourced personnel engaged prior to 31.05.2010 in Operation and Management and other activities to the fold of CESU as Helper Trainee and they will be regularized regularly after completing three and half

years of training. Seamlessly working as such, waiting for further eight years with the hope of consideration of their regularization, the petitioners made representation on 17.11.2019 before the Ministry of Energy Department, which was forwarded to the opposite party No.2 on 17.12.2019 for consideration and the opposite party No.2 vide order dated 04.01.2020 instead of regularizing the petitioners as per the bi-partite settlement dated 08.06.2010 stemming on which other Non-ITI workers engaged through outsourced agencies, like the present petitioners, were regularized, but taking shelter of State of Karnataka Vrs. Umadevi, (2006) 4 SCC 1, the opposite party No.2 instead of regularizing the present petitioners in service, decided to give weightage to the petitioners whenever fresh recruitment for relevant post would be made.

2.5. The text of Letter dated 04.01.2020 of CESU (Annexure-

8), impugned in the writ petitions, is quoted hereunder:

"Central Electricity Supply Utility of Odisha Head office: 2nd Floor, IDCO Towers, Janapath, Bhuabneswar-751022 Telephone-2541 727, Fax-2543 125.

Ref.No.CESU/HR/18-11/2012(Vol-II)/259, Date-4th January, 2020

To The Additional Secretary to Government Department of Energy, Government of Odisha.

Sub: Regularisation of 121 Non-ITI personnel working in O&M Activities to the post of Helper Trainee.

Ref: Your office letter No.ENG-RR-DISTCOM-0025-2017/10144/En, dtd.26.11.2019.

Sir,

In inviting reference to the subject cited above and the letter under reference it is to intimate you that the Management Board of CESU in it 45 th meeting held on 02.09.2015 decided that the case of regularisation of the 121 Non-ITI personnel working in O&M Activities to the post of Helper (Trainee) cannot be considered in view of the judgment passed by the Hon‟ble Apex Court in Secretary, State of Karnataka and others Vrs. Umadevi (3) and others Vide Case No. Appeal(Civil) 3595-3612 of 1999 and reported in (2006) 4 SCC 1.

Further, the Board Members in the 49th Board meeting held on 24.09.2016, again deliberated on the matter of regularisation of the 121 outsourced personnel and re-confirmed that their case for regularisation cannot be considered in light of above stated judgments of the Apex Court. However, it was also decided that they may be given some weightage whenever fresh recruitment for relevant posts will be done by CESU. These decisions of the Management board of CESU have been communicated to their Union i.e. Odisha Rajya Bidyut Shramika Karmachari Engineers Ekta Manch & OSEB Employee Federation vide letter no.17555 dtd 01.08.2016 and 24558 dtd.24.10.2016 respectively.

This is for your kind information please.

Yours faithfully.

Sd/-

Sr. General Manager (HR)"

2.6. To ventilate grievance, the present petitioners have approached this Court by way of filing writ petitions, registered as W.P.(C) Nos.13753 of 2020 and 13752 of 2020.

Hearing:

3. On consent of the counsel for respective parties, analogous hearing of the writ petitions was taken up as the pleadings in both the matters are complete and issue involved in both the cases is identical.

3.1. Accordingly, heard Sri Budhadev Routrary, learned Senior Advocate assisted by Sri Jagdish Biswal, learned Advocate appearing for the petitioners in both the writ petitions and Sri Bijay Kumar Dash, learned Advocate for the opposite party Nos.1, 2, 4 & 5.

3.2. On conclusion of hearing, the matters are kept reserved for preparation and pronouncement of the judgment/ order.

Rival contentions and submissions:

4. Sri Budhadev Routrary, learned Senior Advocate along with Sri Jagdish Biswal, learned counsel appearing for the petitioners drawing attention of this Court to paragraph-9 of the counter affidavit filed by opposite party No.5 submitted that the stand taken by the opposite party that the petitioners do not have the

requisite qualification and not involved in the Operation and Maintenance activities, is not borne on record.

4.1. It is submitted that the opposite parties could not deny regularization in service of the petitioners who have been engaged to perform the work of Helper since 2005 and the CESU authorities should have adhered to the terms of bi-partite settlement of the year 2010. Even otherwise, since the petitioners have requisite qualification and have been continuing to discharge the work entrusted to them without any blemish, turning down their claim is unwholesome, illogical and irrational.

4.2. Drawing attention of this Court to Minutes of discussion held on 03.12.2009 between the Management of CESU and the Odisha State Electricity Board Employees Federation submitted that all pros and cons were examined by the Management with respect to "all categories of contract workers" including the "ITI and Non-ITI (Helper)" who have already been "engaged in the job of perennial nature" for regularization. Settlement has been arrived at between the Management of CESU and the Odisha State Electricity Board Employees Federation on 08.06.2010 with respect to outsourced Non-ITIs, working in Operation and Maintenance activities; and those who had already completed one year engagement in CESU through outside agency. Since the

petitioners have the requisite qualification, their case cannot be ignored.

4.3. A Letter dated 09.08.2010 was issued by the opposite party No.2 requiring all General Managers and Other Managers of Circles and Divisions to forward filled in application from eligible candidates. A writ petition being W.P.(C) No.4188 of 2011 was filed at the behest of one security guard and the OSEB Shramika Mahasangha in which the selection process of post of Helper (Trainee) was stayed. However, said case was dismissed by order dated 11.08.2011. Thereafter, the opposite parties regularized services of similarly situated Non-ITI Helpers of different Divisions.

4.4. Having utilized the services of the petitioners for such a long period and making them await for consideration of their regularization in service with assurance that the benefit of bi-partite settlement would be extended to them as has already been worked out for certain other similarly situated personnel, by taking shelter of Secretary, State of Karnataka Vrs. Umadevi (3), (2006) 4 SCC 1, at this distance of time would not only violate right to be considered for employment but also impinge avowed object of protection conferred under the Constitution of India through Article 14.

5. Sri Bijay Kumar Dash, learned Advocate for the opposite parties would defend the rejection of claim of the

petitioners vide Letter No.04.01.2020 issued by the Senior General Manager (HR) of Central Electricity Supply Utility of Odisha, wherein the reason ascribed is this:

"***

Further, the Board Members in the 49th Board Meeting held on 24.09.2016, again deliberated on the matter of regularisation of the 121 outsourced personnel and re- confirmed that their case for regularization cannot be considered in light of above stated judgment of the Apex Court. However, it was also decided that they may be given some weightage whenever fresh recruitment for relevant posts will be done by CESU. These decisions of the Management Board of CESU have been communicated to their Union, i.e., Odisha Rajya Bidyut Shramika Karmachari Engineers Ekta Manch and OSEB Employees Federation vide Letter No.17555, dated 01.08.2016 and 24558, dated 24.10.2016 respectively. ***"

5.1. Learned counsel for the opposite parties laid emphasis on the stance taken in paragraph-9 of the counter affidavit, which is extracted hereunder:

"9. That with regard to the averments made in para-9 of this application, it is humbly submitted that it is not a fact that because of the interim stay, the cases of 121 of Non-ITI persons were not considered. The communication dated 09.08.2010 was purely intended to invite applications from outsourced helpers engaged in Operation & Maintenance activities for the post of Helper (Trainee) vide Letter No.37660, dated 09.08.2010 (Annexure-4 to the writ

petition). Only shortlisted candidates were called for Desk-top test and interview. Since the petitioners had no relevant experience in Operation & Maintenance activities, their cases were not considered for the post of Helper (Trainee).

The Hon‟ble High Court vide order 04.08.2011 in WP(C) No.4188 of 2011 has mentioned that the settlement applies to those Non-ITI‟s who are actually working in Operation & Maintenance activities and the Security Guards have never participated in Maintenance & Operation activities. And, hence cannot take the advantage of settlement and claim for regularization.

In the similar circumstances since the petitioners, do not have experience in Operation and Maintenance activities their cases were not considered for regularization."

5.2. With such assertion, Sri Bijay Kumar Dash, learned Advocate for the opposite parties urged to dismiss the writ petition, being sans merit.

CONSIDERATION OF RIVAL CONTENTIONS:

6. It is fact that the petitioners are Non-ITI Workers/ Helpers engaged through outsourcing agency during 2005-07. Since then they have been rendering service to the opposite parties (erstwhile Organisation as also present Organisation). Scrutiny of documents enclosed to the writ petition as Annexure-1 series relating to experience certificates issued by authorities demonstrates that these Non-ITI workers have been

utilised in the performance of maintenance of 11 KV Line, LT Line and also as electricians in Operation and Maintenance work. Such documents, which apparently show that they have gained experience in the Operation and Maintenance Work, have been relied on by the petitioners and the same are not denied or disputed by the opposite parties in the counter affidavit. Nonetheless, the opposite parties have emphatically disputed the fact that only Non-ITI Workers who had experience in Operation and Maintenance activities were considered for Helper (Trainee) in the selection process.

6.1. Be that as it may, it has been averred in the rejoinder of the petitioners that it is the Bi-partite Settlement which is binding inter se parties in view of Section 18(3) of the Industrial Disputes Act, 1947.

POSITION AS TO REGULARISATION IN SERVICE:

7. It is pertinent to notice following observation made in Dr. Prasana Kumar Mishra Vrs. State of Odisha, W.P.(C) No.11148 of 2005, reported at 2016 (I) ILR-CUT 373:

"7. In Binan Kumar Mohanty Vrs. Water and Land Management Institute (WALMI), 2015 (I) OLR 347 referring to Kapila Hingorani Vrs. State of Bihar, (2003) 6 SCC 1 the apex Court held that the Government companies/public sector undertakings being „States‟ would be constitutionally liable to respect life and liberty of all persons in terms of Article 21 of the Constitution of India. Therefore, if

the petitioner has rendered service for around 20 years, keeping in view the ratio decided in Kopila Hingorani (supra), this Court issues direction to the opposite parties to mitigate the hardship of the employees. Financial stringency is no ground for not issuing requisite directions when there is violation of fundamental rights of the petitioner. Allowing a person to continue for a quite long period of 20 years of service and exploiting him on the pretext of financial crunch in violation of Article 21 of the Constitution of India is sheer arbitrariness of the authority which is highly condemnable.

8. In Narendra Kumar Ratha and Others Vrs. State of Odisha and Others, 2015 (I) OLR 197, this Court has taken into consideration the object of Article 16 of the Constitution of India to create a constitutional right to equality of opportunity and employment in public offices. The word „employment or appointment‟ cover not merely the initial appointment, but also other attributes like salary, increments, revision of pay, promotion, gratuity, leave pension and age of superannuation etc. Appointment to any post under the State can only be made in accordance with the provisions and procedure envisaged under the law and guidelines governing the field.

9. In Prabodh Verma and Others Vrs. State of U.P. and Others, (1984) 4 SCC 251, the apex Court held that Article 16 is an instance of the application of the general rule of equality laid down in Article 14, with special reference to the opportunity for appointment and employment under the Government.

10. Similar view has also been taken by the apex Court in Km. Neelima Mishra Vrs. Harinder Kaur Paintal and Others, (1990) 2 SCC 746 = AIR 1990 SC 1402 and E.P. Royappa Vrs. State of Tamil Nadu and Another, (1974) 4 SCC 3. Clause (1) of Article 16 guarantees equality of opportunity for all citizens in the matters of employment or appointment to any office under the State. The very concept of equality implies recourse to valid classification for preference in favour of the disadvantaged classes of citizens to improve their conditions so as to enable them to raise themselves to positions of equality with the more fortunate classes of citizens. This view has also been taken note of by the apex Court in the case of Indra Sawhney Vrs. Union of India, 1992 Supp. (3) SCC 217 = AIR 1993 SC 477."

7.1. The case of Prasana Kumar Mishra (supra) was carried in appeal before the Division Bench, giving arise to W.A. No.4 of 2016, which was dismissed vide Order dated 11.12.2019. Said matter, being carried further to the Hon'ble Supreme Court of India, vide Order dated 07.08.2020, the S.L.P.(C) No.4945 of 2020, filed at the behest of Biju Patnaik University of Technology, stood dismissed.

7.2. So far as regularization of services, in a catena of decisions the Hon'ble Supreme Court of India dealing illuminatingly with the concept of regularization, in the case of Narendra Kumar Tiwari Vrs. State of Jharkhand, (2018) 8 SCC 238, said as follows:

"The purpose and intent of the decision in Umadevi (3) was therefore twofold, namely, to prevent irregular or illegal appointments in the future and secondly, to confer a benefit on those who had been irregularly appointed in the past. The fact that the State of Jharkhand continued with the irregular appointments for almost a decade after the decision in Umadevi (3), (2006) 4 SCC 1 is a clear indication that it believes that it was all right to continue with irregular appointments and whenever required, terminate the services of the irregularly appointed employees on the ground that they were irregularly appointed. This is nothing but a form of exploitation of the employees by not giving them the benefits of regularisation and by placing the sword of Damocles over their head. This is precisely what Umadevi and Kesari sought to avoid."

7.3. In Sunil Barik Vrs. State of Odisha, 2021 (II) OLR 469, it has been discussed as follows:

"12. As it appears from the record itself, the case of the petitioner is squarely covered by the exception carved out in paragraph 53 of the judgment rendered in Umadevi (3) mentioned supra. Meaning thereby, against an existing sanctioned vacancy in the post of Barber, the petitioner having been engaged by following due procedure of selection in the post of Home Guard and continued for a quite long period, which is not disputed by the opposite parties-State as per the pleadings available in the counter affidavit and, as such, the petitioner is still continuing, the same cannot be treated as an „illegal engagement‟, rather it may be nomenclatured as an „irregular engagement‟.

13. In State of Jammu and Kashmir Vrs. District Bar Association, Bandipora, MANU/SC/1566/2016 = (2017) 3 SCC 410, wherein a distinction has been made with regard to „irregular‟ and „illegal‟ engagement, referring to the exception carved out in Umadevi (3) mentioned supra, in paragraph 12 of the said judgment it has been stated as follows:

„12. The third aspect of Umadevi (3) which bears notice is the distinction between an „irregular‟ and „illegal‟ appointment. While answering the question of whether an appointment is irregular or illegal, the Court would have to enquire as to whether the appointment process adopted was tainted by the vice of non-adherence to an essential prerequisite or is liable to be faulted on account of the lack of a fair process of recruitment. There may be varied circumstances in which an ad hoc or temporary appointment may be made. The power of the employer to make a temporary appointment, if the exigencies of the situation so demand, cannot be disputed. The exercise of power however stands vitiated if it is found that the exercise undertaken

(a) was not in exigencies of administration; or

(b) where the procedure adopted was violative of Articles 14 and 16 of the Constitution; and/or

(c) where the recruitment process was overridden by the vice of nepotism, bias or mala fides."

7.4. In Suvendu Mohanty Vrs. State of Odisha, 2015 SCC OnLine Ori 267, it has been observed as follows:

"9. With regard to the regularization of the services of the petitioners, a mention has been made in Annexure-4 that the petitioners being irregular recruits, their regularization is not permissible under the State Government Rules. But this condition made in the restructuring order in Annexure-4 so far as it relates to the petitioners cannot be applicable in view of the fact that the petitioners have been appointed against regular vacancies available in the regular scale of pay admissible to the post. But in view of their continued service for more than 10 years, their cases are covered by the ratio of the judgment of the apex Court in Secretary, State of Karnataka Vrs. Umadevi, (2006) 4 SCC 1 = AIR 2006 SC 1806, wherein the apex Court has held that the appointments made against temporary or ad-hoc basis are not to be regularized. In paragraph 53 of the said judgment, it is provided that irregular appointment of duly qualified persons against sanctioned posts, who have worked for 10 years or more can be considered on merits and steps to be taken as one time measure to regularize them. In Paragraph 53 of the said judgment, the apex Court has held as follows:

***

10. The object behind the exception carved out in this case was to permit regularization of such appointments, which are irregular but not illegal, and to ensure security of employment of those persons who served the State Government and their instrumentalities for more than ten years. Similar

question came up for consideration before the apex Court in Civil Appeal No. 2835 of 2015 (arising out of SLP (Civil) No. 20169 of 2013 disposed of on 13.3.2015 [Amarkant Rai Vrs. State of Bihar, (2015)

8 SCC 265]. In paragraphs 12 and 13, the apex Court has held as follows:

„12. Elaborating upon the principles laid down in Umadevi‟s case (supra) and explaining the difference between irregular and illegal appointments in State of Karnataka Vrs. M.L. Kesari, (2010) 9 SCC 247, this Court held as under:

„7. It is evident from the above that there is an exception to the general principles against "regularisation" enunciated in Umadevi (3), if the following conditions are fulfilled:

(i) The employee concerned should have worked for 10 years or more in duly sanctioned post without the benefit or protection of the interim order of any court or tribunal. In other words, the State Government or its instrumentality should have employed the employee and continued him in service voluntarily and continuously for more than ten years.

(ii) The appointment of such employee should not be illegal, even if irregular. Where the appointments are not made or continued against sanctioned posts or where the

persons appointed do not possess the prescribed minimum qualifications, the appointments will be considered to be illegal. But where the person employed possessed the prescribed qualifications and was working against sanctioned posts, but had been selected without undergoing the process of open competitive selection, such appointments are considered to be irregular.‟

13. Applying the ratio of Umadevi‟s case, this Court in Nihal Singh Vrs. State of Punjab, (2013) 14 SCC 65 directed the absorption of the Special Police Officers in the services of the State of Punjab holding as under:

„35. Therefore, it is clear that the existence of the need for creation of the posts is a relevant factor with reference to which the executive government is required to take rational decision based on relevant consideration. In our opinion, when the facts such as the ones obtaining in the instant case demonstrate that there is need for the creation of posts, the failure of the executive government to apply its mind and take a decision to create posts or stop extracting work from persons such as the appellants herein for decades together itself would be

arbitrary action (inaction) on the part of the State.

36. The other factor which the State is required to keep in mind while creating or abolishing posts is the financial implications involved in such a decision.

The creation of posts necessarily means additional financial burden on the exchequer of the State. Depending upon the priorities of the State, the allocation of the finances is no doubt exclusively within the domain of the legislature. However in the instant case creation of new posts would not create any additional financial burden to the State as the various banks at whose disposal the services of each of the appellants is made available have agreed to bear the burden. If absorbing the appellants into the services of the State and providing benefits on a par with the police officers of similar rank employed by the State results in further financial commitment it is always open for the State to demand the banks to meet such additional burden. Apparently no such demand has ever been made by the State. The result is-- the various banks which avail the services of these appellants enjoy the supply of cheap labour over a period of decades. It is also pertinent to notice that these banks are public sector banks.‟***"

7.5. Reference can also be had to Amarendra Kumar Mohapatra Vrs. State of Odisha, (2014) 4 SCC 583 = AIR

2014 SC 1716; Subrata Narayan Das Vrs. State of Odisha, W.P.(C) No.18659 of 2016, vide Judgment dated 12.07.2022.

7.6. In the case of Union of India Vrs. Central Administrative Tribunal, (2019) 4 SCC 290 the following is the observation:

"25. The Court noted in the above judgment that if a strict and literal interpretation was given to the decision in Umadevi, no employee from the State of Jharkhand appointed on an irregular basis could ever be regularized as the State was formed on 15 November 2000 and the cut-off date had been fixed as 10 April 2006. The intent of the Court was to grant similarly-placed employees who had put the requisite years of service as mandated by Umadevi, the benefit of regularization. The Court thus held that the Jharkhand Sarkar ke Adhinasth Aniyamit Rup se Niyukt Ewam Karyarat Karmiyo ki Sewa Niyamitikaran Niyamawali, 2015 („the Regularisation Rules‟) must be interpreted in a pragmatic manner and employees of the State who had completed 10 years of service on the date of promulgation of the rules, ought to be regularized. In doing so, the Court ensured that employees in the State of Jharkhand who had completed the same years of service as employees from other States, are granted parity in terms of regularization. The spirit of non-discrimination and equity runs through the decisions in Umadevi [(2006) 4 SCC 1], ML Kesari [(2010) 9 SCC 247] and Narendra Kumar Tiwari [(2018) 8 SCC 238].

26. In this background, the issue which now arises before this Court is in regard to the effective direction which would govern the present case. The High Court has directed the Union of India to absorb the casual workmen, if it is not possible at the Institute in question, then in any other establishment. The latter part of the direction, as we have already noted, cannot be sustained. Equally, in our opinion, the authorities cannot be heard to throw their hands in despair by submitting that there are no vacancies and that it had already regularized such of the persons in the seniority list, who reported for work. The Tribunal has entered a finding of fact that this defence is clearly not borne out of the record. Accordingly, we are of the view that having decided to implement the decision of the Tribunal, which was affirmed by the High Court, the Union of India must follow a rational principle and abide strictly by the seniority list in proceeding to regularize the workmen concerned. Accordingly, we direct that the case for regularization shall be considered strictly in accordance with the seniority list in pursuance of the directions which were issued by the Tribunal and confirmed by the High Court and such of the persons, who are available for regularization on the basis of vacancies existing at present, shall be considered in accordance with law. The Tribunal has denied back-wages but has ordered a notional fixation of pay and allowances. While affirming that direction, we also direct that persons who have crossed the age of superannuation will be entitled to the computation and payment of their retiral dues on that basis. This exercise shall be carried out within a period of three months from the receipt of a copy of

the judgment. If it becomes necessary to grant age relaxation to the concerned workmen, the Appellants shall do so."

7.7. In Vibhuti Shankar Pandey Vrs. State of Madhya Pradesh, 2023 LiveLaw (SC) 91 = (2023) 3 SCC 639, it has been stated as follows:

"*** The Division Bench rightly held that the learned Single Judge has not followed the principle of law as given by this Court in Secretary, State of Karnataka and Others Vrs. Umadevi and Others, (2006) 4 SCC 1, as initial appointment must be done by the competent authority and there must be a sanctioned post on which the daily rated employee must be working. ***"

7.8. It may be apt to refer to Ranjeet Kumar Das Vrs. State of Odisha, 2018 (I) ILR-CUT 695, wherein relevant portion of the Judgment runs as follows:

"7. Before delving into the niceties of the order passed by the tribunal, this Court deems it proper to examine the claims of the petitioner on the basis of the factual matrix available on record itself. On the basis of the pleadings available before this Court, no doubt the petitioner had approached the tribunal seeking regularization of his services. Regularization in service law connotes official formalisation of an appointment, which was made on temporary or ad hoc or stop gap or casual basis or the like, in deviation from the normal rules of applicable norms of appointment. Such formalisation makes the appointment regular. The ordinary meaning of

regularisation is "to make regular" according to The Shorter Oxford English Dictionary, 3rd Edition, and according to Black‟s Law Dictionary, 6th Edition, the word "regular" means:

„Conformable to law. Steady or uniform in course, practice, or occurrence; not subject to unexplained or irrational variation. Usual, customary, normal or general. Gerald Vrs. American Cas. Co of Reading, Pa., D.C.N.C., 249 F, Supp. 355, 357. Made according to rule, duly authorised, formed after uniform type; built or arranged according to established plan, law, or principle. Antonym of "casual" or "occasional," Palle Vrs. Industrial Commission, 79 Utah 47, 7 P. 2d. 248, 290.‟

8. The above being the meaning of "regular", as per the common parlance given in dictionary, in B.N. Nagarajan, Vrs. State of Karnataka, AIR 1979 SC 1676 = (1979) 4 SCC 507, the apex Court held that the effect of such regularization would depend on the object or purpose for which the regularization is made or the stage at which it is made. Once regularized, the procedural infirmities which attended the appointment are cured. Regularization, however, does not necessarily connote permanence.

9. The word „regular‟ or „regularisation‟ do not connote permanence and cannot be construed so as to convey an idea of the nature of tenure of appointments. They are terms calculated to condone any procedural irregularities and are meant to cure only such defects as are attributable to methodology followed in making the appointments. Relying on the Judgments of the apex Court in B.N. Nagarajan Vrs.

State of Karnataka, AIR 1979 SC 1676 = (1979) 4 SCC 507, the Constitution Bench of the apex Court in State of Karnataka Vrs. Umadevi (3), (2006) 4 SCC 1 has also taken the same view, which has also been followed by the apex Court in Hindustan Petroleum Corpn. Ltd. Vrs. Ashok Ranghba Ambre, (2008) 2 SCC 717 and also in Hindustan Aeronautics Ltd. Vrs. Dan Bahadur Singh, (2007) 6 SCC 207.

10. Temporary or ad hoc or stop gap or casual basis or the like appointments are made for various reasons. An emergent situation might make it necessary to make such appointments. Since the adoption of the normal method of regular recruitment might involve considerable delay regulating in failure to tackle the emergency. Sometimes such appointments were to be made because although extra hands are required to meet the workload, there are no sanctioned posts against which any regular recruitment could be made. In fact in the case of ad hoc or casual appointees, the appointments, are in the majority of cases, not against sanctioned posts and the appointments are made because of the necessity of workload and the constraints of sanctioning such post (mainly on financial consideration) on permanent basis. Needless to say that filling up vacancies against sanctioned posts by regularisation is against the constitutional provisions of equality of opportunity in the matter of public employment violating Articles 14 and 16 of the Constitution by not making the offer of employment to the world at large and allowing all eligible candidates equality of opportunity to be considered on merits. If that be so, considering the emergent

necessity of filling up of vacancies and allowing the petitioner to continue for a quite long period, even if with one day break in service, cannot be stated to be a reasonable one, rather, this is an unfair and unreasonable action of the authority concerned.

***

12. In view of above constitutional philosophy, whether Courts can remain as mute spectator, is a matter to be considered to achieve the constitutional goal in proper perspective. But all these questions had come up for consideration and decided by the Constitution Bench of the apex Court in Umadevi (3) mentioned supra. The factual matrix of the case in Umadevi (3) arose for consideration from a judgment of Karnataka High Court. In some of the cases, the Karnataka High Court rejected the claims of persons, who had been temporarily engaged as daily wagers but were continued for more than 10 years in the Commercial Taxes Department of the State of Karnataka for regularization as permanent employees and their entitlement to all the benefits of regular employees. Another set of civil appeals arose from the order passed by the same High Court on a writ petition challenging the order of the government directing cancellation of appointments of all casual workers/daily rated workers and seeking a further direction for the regularization of all such daily wage earners engaged by the State or local bodies. These claims were rejected by the Division Bench of the Karnataka High Court on appeal from the judgment of the learned Single Judge. The reason for the mater being considered by the Constitution Bench arose because of two earlier orders of reference made by a Bench of two-Judge and subsequently by

a Bench of three-Judge- Secretary, State of Karnataka Vrs. Umadevi (1) (2004) 7 SCC 132, and Secretary, State of Karnataka Vrs. Umadevi (2) (2006) 4 SCC 44, respectively, as they noticed the conflicting opinions expressed by the earlier 3 Bench judgments in relation to regularization."

7.9. In Patitapaban Dutta Dash Vrs. State of Odisha, W.P.(C) No. 19951 of 2020, vide Judgment dated 09.09.2021, a Single Bench of this Court has made the following observation:

"8. It is worthwhile to mention here that the Court comes into picture only to ensure observance of fundamental rights, and to ensure the rule of law and to see that the executive acts fairly and gives a fair ideal to its employees consistent with requirements of Articles 14 and 16 of the Constitution, and that the authority should not exploit its employees nor should it seek to take advantage of the helplessness and misery of either the unemployed persons or the employees, as the case may be. For this very reason, it is held that a person should not be kept in contractual, temporary or ad hoc status for a long period. Where a contractual, temporary or ad hoc appointment is continued for long, the Court presumes that there is need of a regular post and accordingly directs for regularization. While issuing direction for regularization, the Court must first ascertain the relevant fact, and must be cognizant of the several situations and eventualities that may arise on account of such direction. If for any reason, a contractual, ad hoc or temporary employee is continued for a fairly long spell,

the authorities must consider his case for regularization, provided he is eligible and qualified according to rules and his service record is satisfactory and his appointment does not run counter to the reservation policy of the State. Even though a casual labourer is continued for a fairly long spell, say two or three years, a presumption may arise that there is regular need for his service. In such a situation, it becomes obligatory for the concerned authority to examine the feasibility of his regularization. While doing so, the authorities ought to adopt a positive approach coupled with empathy for the person."

7.10. Aforesaid Judgment rendered by the Single Judge of this Court in Patitapaban Dutta Dash (supra) got the seal of approval of this Court being carried in appeal bearing W.A. No. 777 of 2021 before the Division Bench, which came to be disposed of vide Judgment dated 12.04.2023 [see, (2023) (I) ILR-CUT 906]. While directing the State of Odisha to implement the direction of the Single Judge "in letter and spirit", this Court in the ultimate held as follows:

"44. Going by the above legal position, in the present cases, at the highest, the respondents could be considered to be „irregularly‟ appointed and therefore would, even on the touchstone of Umadevi (supra), be eligible for regularization. The law in M.L. Kesari (supra), has been reiterated in Amarkant Rai Vrs. State of Bihar, (2015) 8 SCC 265, Sheo Narain Nagar Vrs. State of U.P., (2018) 13 SCC 432 = AIR

2018 SC 233 and Rajnish Kumar Mishra Vrs. State of U.P., (2019) 17 SCC 648."

7.11. Noticing the Judgment of the Hon'ble Supreme Court in the case of Secretary, State of Karnataka and Others Vrs. Umadevi (3), (2006) 4 SCC 1, in Niranjan Nayak Vrs. State of Odisha & Others, 2023 (I) OLR 407 the observation of this Court runs as follows:

"12. Similarly, in the case of Amarendra Kumar Mahapatra and Others Vrs. State of Odisha and Others, (2014) 4 SCC 583 = AIR 2014 SC 1716, the Supreme Court was of the opinion that the appellants were entitled to regularization in service having regard to the fact that they have rendered long years of service on ad hoc basis.

13. In the case at hand, it can be ascertained that the petitioner was appointed against a substantive vacant post and he had been discharging his duties in the said post since 1993. The appointment was made on an ad hoc basis and was extended from time to time. Since the petitioner was appointed against substantive vacancy and the post was sanctioned by higher authorities, the petitioner should have been extended the benefit of regulatisation like other similarly situated persons."

7.12. This Court wishes to take notice of recent view of Hon'ble Supreme Court of India expressed in the case of Jaggo Vrs. Union of India, 2024 SCC OnLine SC 3826, wherein it has been observed as follows:

"20. It is well established that the decision in Umadevi (supra) does not intend to penalize employees who have rendered long years of service fulfilling ongoing and necessary functions of the State or its instrumentalities. The said judgment sought to prevent backdoor entries and illegal appointments that circumvent constitutional requirements. However, where appointments were not illegal but possibly "irregular," and where employees had served continuously against the backdrop of sanctioned functions for a considerable period, the need for a fair and humane resolution becomes paramount. Prolonged, continuous, and unblemished service performing tasks inherently required on a regular basis can, over the time, transform what was initially ad-hoc or temporary into a scenario demanding fair regularization. In a recent judgment of this Court in Vinod Kumar Vrs. Union of India, (2024) 1 SCR 1230, it was held that held that procedural formalities cannot be used to deny regularization of service to an employee whose appointment was termed "temporary" but has performed the same duties as performed by the regular employee over a considerable period in the capacity of the regular employee. The relevant paras of this judgment have been reproduced below:

„6. The application of the judgment in Umadevi (supra) by the High Court does not fit squarely with the facts at hand, given the specific circumstances under which the appellants were employed and have continued their service. The reliance on procedural

formalities at the outset cannot be used to perpetually deny substantive rights that have accrued over a considerable period through continuous service. Their promotion was based on a specific notification for vacancies and a subsequent circular, followed by a selection process involving written tests and interviews, which distinguishes their case from the appointments through back door entry as discussed in the case of Umadevi (supra).

7. The judgment in the case Umadevi (supra) also distinguished between "irregular" and "illegal" appointments underscoring the importance of considering certain appointments even if were not made strictly in accordance with the prescribed Rules and Procedure, cannot be said to have been made illegally if they had followed the procedures of regular appointments such as conduct of written examinations or interviews as in the present case. ***"

21. The High Court placed undue emphasis on the initial label of the appellants‟ engagements and the outsourcing decision taken after their dismissal. Courts must look beyond the surface labels and consider the realities of employment: continuous, long-term service, indispensable duties, and absence of any mala fide or illegalities in their appointments. In that light, refusing regularization simply because their original terms did not explicitly state so, or because an outsourcing policy was belatedly introduced, would be contrary to principles of fairness and equity.

22. The pervasive misuse of temporary employment contracts, as exemplified in this case, reflects a broader systemic issue that adversely affects workers‟ rights and job security. In the private sector, the rise of the gig economy has led to an increase in precarious employment arrangements, often characterized by lack of benefits, job security, and fair treatment. Such practices have been criticized for exploiting workers and undermining labour standards. Government institutions, entrusted with upholding the principles of fairness and justice, bear an even greater responsibility to avoid such exploitative employment practices. When public sector entities engage in misuse of temporary contracts, it not only mirrors the detrimental trends observed in the gig economy but also sets a concerning precedent that can erode public trust in governmental operations.

23. The International Labour Organization (ILO), of which India is a founding member, has consistently advocated for employment stability and the fair treatment of workers. The ILO‟s Multinational Enterprises Declaration [International Labour Organization-- Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy] encourages companies to provide stable employment and to observe obligations concerning employment stability and social security. It emphasizes that enterprises should assume a leading role in promoting employment security, particularly in contexts where job discontinuation could exacerbate long-term unemployment.

24. The landmark judgment of the United State in the case of Vizcaino Vrs. Microsoft Corporation, 97 F.3d 1187 (9th Cir. 1996) serves as a pertinent example from the private sector, illustrating the consequences of misclassifying employees to circumvent providing benefits. In this case, Microsoft classified certain workers as independent contractors, thereby denying them employee benefits. The U.S. Court of Appeals for the Ninth Circuit determined that these workers were, in fact, common-law employees and were entitled to the same benefits as regular employees. The Court noted that large Corporations have increasingly adopted the practice of hiring temporary employees or independent contractors as a means of avoiding payment of employee benefits, thereby increasing their profits. This judgment underscores the principle that the nature of the work performed, rather than the label assigned to the worker, should determine employment status and the corresponding rights and benefits. It highlights the judiciary‟s role in rectifying such misclassifications and ensuring that workers receive fair treatment.

25. It is a disconcerting reality that temporary employees, particularly in government institutions, often face multifaceted forms of exploitation. While the foundational purpose of temporary contracts may have been to address short-term or seasonal needs, they have increasingly become a mechanism to evade long-term obligations owed to employees. These practices manifest in several ways:

Misuse of "Temporary" Labels:

Employees engaged for work that is essential, recurring, and integral to the functioning of an

institution are often labeled as "temporary" or "contractual," even when their roles mirror those of regular employees. Such misclassification deprives workers of the dignity, security, and benefits that regular employees are entitled to, despite performing identical tasks.

Arbitrary Termination:

Temporary employees are frequently dismissed without cause or notice, as seen in the present case. This practice undermines the principles of natural justice and subjects workers to a state of constant insecurity, regardless of the quality or duration of their service.

Lack of Career Progression:

Temporary employees often find themselves excluded from opportunities for skill development, promotions, or incremental pay raises. They remain stagnant in their roles, creating a systemic disparity between them and their regular counterparts, despite their contributions being equally significant.

Using Outsourcing as a Shield:

Institutions increasingly resort to outsourcing roles performed by temporary employees, effectively replacing one set of exploited workers with another. This practice not only perpetuates exploitation but also demonstrates a deliberate effort to bypass the obligation to offer regular employment.

Denial of Basic Rights and Benefits: Temporary employees are often denied fundamental benefits such as pension, provident fund, health insurance, and paid leave, even when their tenure spans decades. This lack of social security subjects them and their families to undue hardship,

especially in cases of illness, retirement, or unforeseen circumstances.

26. While the judgment in Umadevi (supra) sought to curtail the practice of backdoor entries and ensure appointments adhered to constitutional principles, it is regrettable that its principles are often misinterpreted or misapplied to deny legitimate claims of long-serving employees.

This judgment aimed to distinguish between "illegal" and "irregular" appointments. It categorically held that employees in irregular appointments, who were engaged in duly sanctioned posts and had served continuously for more than ten years, should be considered for regularization as a one-time measure. However, the laudable intent of the judgment is being subverted when institutions rely on its dicta to indiscriminately reject the claims of employees, even in cases where their appointments are not illegal, but merely lack adherence to procedural formalities. Government departments often cite the judgment in Umadevi (supra) to argue that no vested right to regularization exists for temporary employees, overlooking the judgment's explicit acknowledgment of cases where regularization is appropriate. This selective application distorts the judgment's spirit and purpose, effectively weaponizing it against employees who have rendered indispensable services over decades.

27. In light of these considerations, in our opinion, it is imperative for Government departments to lead by example in providing fair and stable employment. Engaging workers on a temporary basis for extended periods, especially when their roles are integral to the organization's functioning, not only

contravenes international labour standards but also exposes the organization to legal challenges and undermines employee morale. By ensuring fair employment practices, Government institutions can reduce the burden of unnecessary litigation, promote job security, and uphold the principles of justice and fairness that they are meant to embody. This approach aligns with international standards and sets a positive precedent for the private sector to follow, thereby contributing to the overall betterment of labour practices in the country."

7.13. In the case of Shripal Vrs. Nagar Nigam, 2025 SCC OnLine SC 221 referring to observations rendered in Jaggo (supra), the Hon'ble Supreme Court of India has been pleased to clarify that:

"16. The High Court did acknowledge the Employer‟s inability to justify these abrupt terminations. Consequently, it ordered re-engagement on daily wages with some measure of parity in minimum pay. Regrettably, this only perpetuated precariousness: the Appellant Workmen were left in a marginally improved yet still uncertain status. While the High Court recognized the importance of their work and hinted at eventual regularization, it failed to afford them continuity of service or meaningful back wages commensurate with the degree of statutory violation evident on record.

17. In light of these considerations, the Employer‟s discontinuation of the Appellant Workmen stands in violation of the most basic labour law principles.

Once it is established that their services were terminated without adhering to Sections 6E and 6N of the U.P. Industrial Disputes Act, 1947, and that they were engaged in essential, perennial duties, these workers cannot be relegated to perpetual uncertainty. While concerns of municipal budget and compliance with recruitment rules merit consideration, such concerns do not absolve the Employer of statutory obligations or negate equitable entitlements. Indeed, bureaucratic limitations cannot trump the legitimate rights of workmen who have served continuously in de facto regular roles for an extended period.

18. The impugned order of the High Court, to the extent they confine the Appellant Workmen to future daily- wage engagement without continuity or meaningful back wages, is hereby set aside with the following directions:

I. The discontinuation of the Appellant Workmen‟s services, effected without compliance with Section 6E and Section 6N of the U.P. Industrial Disputes Act, 1947, is declared illegal. All orders or communications terminating their services are quashed. In consequence, the Appellant Workmen shall be treated as continuing in service from the date of their termination, for all purposes, including seniority and continuity in service.

II. The Respondent Employer shall reinstate the Appellant Workmen in their respective posts (or posts akin to the duties they previously performed) within four weeks from the date of this judgment. Their entire period of absence

(from the date of termination until actual reinstatement) shall be counted for continuity of service and all consequential benefits, such as seniority and eligibility for promotions, if any.

III. Considering the length of service, the Appellant Workmen shall be entitled to 50% of the back wages from the date of their discontinuation until their actual reinstatement. The Respondent Employer shall clear the aforesaid dues within three months from the date of their reinstatement.

IV. The Respondent Employer is directed to initiate a fair and transparent process for regularizing the Appellant Workmen within six months from the date of reinstatement, duly considering the fact that they have performed perennial municipal duties akin to permanent posts. In assessing regularization, the Employer shall not impose educational or procedural criteria retroactively if such requirements were never applied to the Appellant Workmen or to similarly situated regular employees in the past. To the extent that sanctioned vacancies for such duties exist or are required, the Respondent Employer shall expedite all necessary administrative processes to ensure these longtime employees are not indefinitely retained on daily wages contrary to statutory and equitable norms."

7.14. In Prafull Kumar Behera Vrs. State of Odisha, 2025 SCC OnLine Ori 2416 relying on the General Administration

Department Resolution dated 17.09.2013, it has been observed as follows:

"8.6. In Sheo Narain Nagar Vrs. State of Uttar Pradesh, (2017) 11 SCR 138, the Hon‟ble Supreme Court recognized such employment on temporary status as on exploitative terms. The pertinent observation made in the said case is quoted hereunder:

„8. When we consider the prevailing scenario, it is painful to note that the decision in Umadevi (Supra) has not been properly understood and rather wrongly applied by various State Governments. We have called for the data in the instant case to ensure as to how many employees were working on contract basis or ad-hoc basis or daily-wage basis in different State departments. We can take judicial notice that widely aforesaid practice is being continued. Though this Court has emphasised that incumbents should be appointed on regular basis as per rules but new devise of making appointment on contract basis has been adopted, employment is offered on daily wage basis etc. in exploitative forms. This situation was not envisaged by Umadevi (supra). The prime intendment of the decision was that the employment process should be by fair means and not by back door entry and in the available pay scale. That spirit of the Umadevi (supra) has been ignored and conveniently over looked by various State Governments/ authorities. We regretfully make the observation that Umadevi (supra) has not

been implemented in its true spirit and has not been followed in its pith and substance. It is being used only as a tool for not regularizing the services of incumbents. They are being continued in service without payment of due salary for which they are entitled on the basis of Article 14, 16 read with Article 34(1)(d) of the Constitution of India as if they have no constitutional protection as envisaged in D.S. Nakara Vrs. Union of India, (1983) 1 SCC 305 = AIR 1983 SC 130 from cradle to grave. In heydays of life they are serving on exploitative terms with no guarantee of livelihood to be continued and in old age they are going to be destituted, there being no provision for pension, retiral benefits etc. There is clear contravention of constitutional provisions and aspiration of down trodden class.

They do have equal rights and to make them equals they require protection and cannot be dealt with arbitrarily. The kind of treatment meted out is not only bad but equally unconstitutional and is denial of rights. We have to strike a balance to really implement the ideology of Umadevi (supra). Thus, the time has come to stop the situation where Umadevi (supra) can be permitted to be flouted, whereas, this Court has interdicted such employment way back in the year 2006. The employment cannot be on exploitative terms, whereas Umadevi (supra) laid down that there should not be back door entry and every post should be filled by regular employment, but a new device has been adopted for making appointment on

payment of paltry system on contract/ adhoc basis or otherwise. This kind of action is not permissible, when we consider the pith and substance of true spirit in Umadevi (supra).

9. Coming to the facts of the instant case, there was a direction issued way back in the year 1999, to consider the regularization of the appellants. However, regularization was not done. The respondents chose to give minimum of the pay scale, which was available to the regular employees, way back in the year 2000 and by passing an order, the appellants were also conferred temporary status in the year 2006, with retrospective effect on 2.10.2002. As the respondents have themselves chosen to confer a temporary status to the employees, as such there was requirement at work and posts were also available at the particular point of time when order was passed. Thus, the submission raised by learned counsel for the respondent that posts were not available, is belied by their own action. Obviously, the order was passed considering the long period of services rendered by the appellants, which were taken on exploitative terms.

10. The High Court dismissed the writ application relying on the decision in Uma devi (supra).

But the appellants were employed basically in the year 1993; they had rendered service for three years, when they were offered the service on contract basis; it was not the case of back door

entry; and there were no Rules in place for offering such kind of appointment. Thus, the appointment could not be said to be illegal and in contravention of Rules, as there were no such Rules available at the relevant point of time, when their temporary status was conferred with effect from 02.10.2002. The appellants were required to be appointed on regular basis as a one-time measure, as laid down in paragraph 53 of Umadevi (supra). Since the appellants had completed 10 years of service and temporary status had been given by the respondents with retrospective effect in the 02.10.2002, we direct that the services of the appellants be regularized from the said date i.e. 02.10.2002, consequential benefits and the arrears of pay also to be paid to the appellants within a period of three months from today.‟

8.7. It is manifest from record that by now the petitioner Appellant, being appointed by duly authorized Appointing Authority, has completed more than 10 years of service, which is requisite length of service for consideration of regularization in service as per Umadevi (3), (2006) 4 SCC 1 [although the Government of Odisha has accepted six years of satisfactory service for regularization in terms of Resolution dated 17.09.2013 read with Resolution dated 16.01.2014] and the authorities of the Regional Transport Officer employed the petitioner- Appellant and extended his terms in service

voluntarily and continuously for more than ten years."

Analysis:

8. Conspectus of legal perspective leads this Court to opine that the rejection of claim of the petitioners as communicated in Letter dated 04.01.2020 (Annexure-8) taking shelter of Umadevi (3) (supra) is unjustified in view of Jaggo (supra) and Shripal (supra).

8.1. This Court proceeds to consider the plight of the petitioners vis-à-vis similarly situated persons whose cases being taken up, are regularised in service. With reference to Deepak Kumar Mohanty Vrs. TP Central Odisha Distribution Limited, W.P.(C) No.2688 of 2016, vide Judgment dated 06.04.2021 it has been submitted by the learned Senior Counsel for the petitioners that since by virtue of Bi-partite Settlement certain personnel having been considered for regularisation in service, the same benefit should have been extended to the case of the petitioners. This Court appreciates vociferous argument advanced on behalf of the petitioners that as the services of the petitioners, Non-ITI Workers, having been utilised for the purpose of Operation and Maintenance, and they have been working till date uninterruptedly since 2005-07, the authorities should have maintained parity in treatment without any reservation on technical considerations. The opposite

parties could not assert additional factor/ground by way of counter affidavit to supplement the order of rejection.

In the Letter dated 04.01.2020 (Annexure-8) it has been admitted by the CESU that the 121 Non-ITI personnel are "working in Operation and Maintenance Activities", yet their case for regularisation was not considered using the shield of Umadevi (3) (supra). However, in view of subsequent decision of the Hon'ble Supreme Court as discussed in the foregoing paragraphs would make it clear that the petitioners are entitled to be considered for regularisation.

8.2. The claim of the petitioners for regularisation with such additional ground cannot be considered in this writ proceeding in view of settle position of law laid down in Mohinder Singh Gill Vrs. Chief Election Commissioner, AIR 1978 SC 851. The Hon'ble Supreme Court in paragraph 8 of said reported decision observed as follows:

"8. The second equally relevant matter is that when a statutory functionary makes an order based on certain grounds, its validity must be judged by the reasons so mentioned and cannot be supplemented by fresh reasons in the shape of affidavit or otherwise. Otherwise, an order bad in the beginning may, by the time it comes to court on account of a challenge, get validated by additional grounds later brought out. We may here draw attention to the observations of Bose, J. in Commissioner of Police, Bombay Vrs. Gordhandas Bhanji, 1951 SCC 1088 = AIR 1952 SC 16:

„Public orders, publicly made, in exercise of a statutory authority cannot be construed in the light of explanations subsequently given by the officer making the order of what he meant, or of what was in his mind, or what he intended to do. Public orders made by public authorities are meant to have public effect and are intended to affect the actings and conduct of those to whom they are addressed and must be construed objectively with reference to the language used in the order itself.‟ ***"

8.3. Reliance is placed by the learned Senior Counsel on the following paragraphs of Judgment rendered in Deepak Kumar Mohanty (supra):

"7. For the aforesaid direction and keeping in view the development through the Tripartite Settlement as well as the development through Annexure-1 allowing the petitioners to participate in a Written Test finding them qualified in such Written Test further they have been called upon to attend the viva-voce test and such viva-voce test has not only been conducted but result thereof has also been kept in sealed cover. This Court is unable to appreciate the application of Umadevi (supra) to the case of the petitioners and rejecting their case thereby. It is for the aforesaid development up till allowing the petitioners to attend the viva-voce test and after holding the viva-voce test in terms of the settlement at Clause-6 of the Tripartite 8 Settlement involved herein, it is open to the Competent Authority to declare the result of the petitioners in the viva voce test and dependant on their merit in the viva-voce test vis-a-vis the interview altogether. Action as appropriate for

regularization should have been taken only in terms of Tripartite Settlement. It is in this view of the matter and for wrong application of Umadevi (supra) to the case of the petitioners, this Court finds the impugned order at Annexure-4 is a mechanical and illegal disposal one and it is in this view of the matter this Court sets aside the order at Annexure-4 and while allowing the Writ Petition directs the Competent Authority, the contesting opposite parties or substituted owner in the meantime if any to open the sealed cover involving the petitioners, in the viva- voce test dependant on the outcome in the viva-voce test take decision in the matter of interview involving the petitioners on the aspect of their regularization in the post of Clerk-B (trainee) by undertaking the complete exercise within a period of one and half months from the date of communication of the order by either party."

8.4. With the aforesaid backdrop, while it is reflected in the Letter dated 04.01.2020 that, the petitioners, Non-ITI personnel are working in Operation and Maintenance Activities, they should not have been discriminated while certain other similarly situated counterparts have been considered for regularisation.

8.5. In this connection Ravi Verma and others Vrs. Union of India and others, 2018 SCC OnLine SC 3860 may fruitfully be referred to, wherein the following are the observations of Hon'ble Supreme Court:

"4. The appellants were appointed as casual employees in the Income Tax Department in the year 1993-1994

since then they were working continuously. On 30th January 2004 with respect to other similarly situated employees, temporary status was granted. The respondent No. 4 on 30th December 2004 recommended the case of the appellants for temporary status/regularization. Again it was recommended for regularization on 14.06.2005. In the meantime, the decision in the State of Karnataka Vrs. Umadevi, (2006) 4 SCC 1 was pronounced by this Court, the same provided that the employees who had rendered services continuously for ten years without the cover of the court‟s order be regularized as the one-time measure.

8. Again on 07.11.2007/19.11.2007 information was forwarded along with a recommendation for the regularization of services of the appellant and again on 01.01.2008 and 31.01.2008 also, recommendations were made. However services were not regularized, through Chief Commissioner, Income Tax, U.P. West, Ghaziabad regularized similarly placed 88 casual employees on 30.01.2009. The Chief Commissioner, Income Tax Orissa, Bhubaneshwar also regularized similarly situated eight employees on 12.03.2009; orders of regularization have been placed on record respectively as Annexures P1 and P2. However, similar treatment was not accorded to the appellants.

9. On 01.06.2009 appellants 1, 2 and 3 were sanctioned minimum of regular pay scale of Group D employees with Dearness Allowance in accordance with DoPT Circular dated 31.05.2004 and in terms of the orders of CCIT dated 07.11.2007 and 06.12.2007 on conferral temporary of status on the

employees. On 22.09.2009, Chief Commissioner, Income Tax, Kolkata also regularized 111 similarly situated casual employees and 17 employees on 15.10.1990 and Chief Commissioner, Income Tax, Lucknow regularized 59 similarly situated casual employees on 22.01.2010. There was further regularization of 35 employees of the office of Chief Commissioner, Income Tax, Patna on 20.08.2010. However, the claim of the appellants was rejected by respondent No. 3 though they had served continuously for more than ten years and fulfill the requisite criteria for the purpose of regularization in terms of the circulars of DoPT and the decision rendered by this Court in Umadevi (supra). The appellants have also given the vacancy position.

12. Having heard learned counsel for the parties at length, we are of the considered opinion that appointments were only irregular one, this Court observed in para 53 Umadevi (supra) thus:

„53. One aspect needs to be clarified. There may be cases where irregular appointments (not illegal appointments) as explained in S.V. Narayanappa, (1967) 1 SCR 128 = AIR 1967 SC 1071, R.N. Nanjundappa, (1972) 1 SCC 409 = (1972) 2 SCR 799 and B.N. Nagarajan, (1979) 4 SCC 507 = (1979) 3 SCR 937 and referred to in para 15 above, of duly qualified persons in duly sanctioned vacant posts might have been made and the employees have continued to work for ten years or more but without the intervention of orders of the courts or of tribunals. The question of regularisation of the services of such employees may have to be

considered on merits in the light of the principles settled by this Court in the cases above-referred to and in the light of this judgment. In that context, the Union of India, the State Governments and their instrumentalities should take steps to regularise as a one-time measure, the services of such irregularly appointed, who have worked for ten years or more in duly sanctioned posts but not under cover of orders of the courts or of tribunals and should further ensure that regular recruitments are undertaken to fill those vacant sanctioned posts that require to be filled up, in cases where temporary employees or daily wagers are being now employed. The process must be set in motion within six months from this date.

We also clarify that regularisation, if any already made, but not sub judice, need not be reopened based on this judgment, but there should be no further bypassing of the constitutional requirement and regularising or making permanent, those not duly appointed as per the constitutional scheme.‟

13. In view of the aforesaid decision, the circulars and regularization of the similarly situated employees at other places and various recommendation that were made the services of the appellants ought to have been regularized in the year 2006; discriminatory treatment has been meted out to them. As per the decision of Umadevi (supra), they were entitled to regularization of services; they did not serve under the cover of court's order.

Illegality has been committed by not directing regularization of services."

8.6. Reference is also made to paragraphs 4 and 8 of Raman Kumar and others Vrs. Union of India and others, 2023 SCC OnLine SC 1018, wherein the following are the observations:

"4. The matter arises out of regularization of the employees. The Chief Commissioner of Income Tax in his report dated 14.02.2013 found that, in the exercise conducted in pursuance of the judgment of this Court in the case of Secretary, State of Karnataka Vrs. Umadevi, (2006) 4 SCC 1, though 65 employees were found to be entitled for regularization, only 35 employees were regularized. This was done since only 35 vacancies were available.

8. Indisputably, the appellants herein have completed service of more than ten years. Even this Court in the case of Ravi Verma Vrs. Union of India (Civil Appeal No(s).2795-2796 of 2018) decided on 13.03.2018 found that the act of regularizing the services of some employees and not regularizing the services of the others is discriminatory and violative of Article 14 of the Constitution of India."

8.7. Such being the position, it is unequivocal that the petitioners cannot be discriminated on the plea that the decision in Umadevi (3) (supra) poses a barrier for consideration of regularisation in service.

CONCLUSION & DECISION:

9. In the wake of discussions made above and views expressed through decisions of the Hon'ble Supreme Court of India as also this Court and other High Courts, taking into consideration the material available on record it is necessary that the opposite parties of the Central Electricity Supply Utility of Odisha are required to take fresh decision with respect to regularization in service of the petitioners.

9.1. Impugned in the present case is the decisions of 45th and 49th Board Meeting held on 02.09.2015 and 24.09.2016 respectively as reflected in Letter Ref.No. CESU/HR/18-11/2012 (Vol-II)/259, dated 04.01.2020 issued by Senior General Manager (HR) of Central Electricity Supply Utility of Odisha addressed to the Additional Secretary to the Government of Odisha in Department of Energy. Glance at said letter it reveals that the regularization of 121 Non-ITI personnel working in Operation and Management Activities being engaged through outsourcing agency in the light of judgment of the Hon'ble Supreme Court of India in the case of Secretary, State of Karnataka Vrs. Umadevi (3), (2006) 4 SCC 1 could not be considered. Bereft such reason, no other impediment has been cited by the Board. Further minute reading of said letter reveals that weightage would be given to those employees/workers in the future recruitment process.

9.2. As is apparent from said communication, no question is raised with respect to the experience of those workers in the Operation and Maintenance Activities. There is nothing in the said letter to show that they have not been engaged since 2005-07 as Non-ITI Helpers in erstwhile Central Electricity Supply Utility of Odisha. There is nothing on record placed by the opposite parties to suggest that they are not continuing with the work entrusted to them as on date. Rather the Board of Central Electricity Supply Utility of Odisha conscious to consider their experience and long standing contribution to the Organisation in the Operation and Maintenance Activities or otherwise by giving weightage in future recruitment that would be carried out by the opposite parties.

9.3. The view expressed by the Hon'ble Supreme Court of India post-Umadevi (3) (supra) in subsequent judgments as referred to in foregoing paragraphs including Jaggo and Shripal is relevant in the present context. This Court has also on earlier occasions and recently followed the same and directed the authorities concerned to consider the case of personnel engaged in the Organisations/Institutions by resorting to outsourcing process vis-à-vis roles performed by temporary employees/NMR/DLR/Contractual/ad hoc or any other name whatsoever. The Courts have deprecated replacement of one set of exploited workers with

another. With strong words, the Hon'ble Supreme Court observed that "This practice not only perpetuates exploitation but also demonstrates a deliberate effort to bypass the obligation to offer regular employment".

10. Regard being had to the decisions on the subject and the factual matrix as obtained from the pleadings of respective parties, diligently considering the arguments, contentions and submissions advanced by counsel for respective parties, this Court is of the strong opinion that the decision taken by the Board of Central Electricity Supply Utility of Odisha as communicated in Letter dated 04.01.2020 cannot withstand judicial scrutiny.

10.1. It may be worthy of notice at this juncture the following expression of the Hon'ble Supreme Court of India as found in Gujarat Agricultural University Vrs. Rathod Labhu Bechar, (2001) 3 SCC 574:

"17. From the aforesaid, it emerges that the learned Single Judge had concurred with the finding of the Tribunal that the contesting workmen have been working in the appellant University regularly for a long number of years. The existence of permanent nature of work was inferred on this account and also due to the vastness of the appellant‟s establishment. The regularisation is claimed only in respect of Class IV employees. The main objection which was raised earlier and is raised before us, is that a

person could only be regularised on any vacant post and if there be one he should be qualified for the same as per qualifications, if any, prescribed. In fact, the Tribunal has held that on the date of the award, most of the workmen had completed 10 years of their service. It is also well settled, if work is taken by the employer continuously from the daily-wage workers for a long number of years without considering their regularisation for its financial gain as against employees‟ legitimate claim, has been held by this Court repeatedly as an unfair labour practice. In fact, taking work from a daily-wage worker or an ad hoc appointee is always viewed to be only for a short period or as a stopgap arrangement, but we find that a new culture is growing to continue with it for a long time, either for financial gain or for controlling its workers more effectively with a sword of Damocles hanging over their heads or to continue with favoured ones in the cases of ad hoc employees withstalling competent and legitimate claimants. Thus we have no hesitation to denounce this practice. If the work is of such a nature, which has to be taken continuously and in any case when this pattern becomes apparent, whey they continue to work for year after year, the only option to the employer is to regularise them. Financial viability, no doubt, is one of the considerations but then such enterprise or institution should not spread its arms longer than its means. The consequent corollary is, where work taken is not for a short period or limited for a season or where work is not of a part-time nature and if

pattern shows that work is to be taken continuously year after year, there is no justification to keep such persons hanging as daily-rate workers. In such a situation a legal obligation is cast on an employer; if there be vacant post, to fill it up with such workers in accordance with rules, if any, and where necessary by relaxing the qualifications, where long experience could be equitable with such qualifications. If no posts exist then duty is cast to assess the quantum of such work and create such equivalent posts for their absorption."

10.2. Vide Sri Ganesh Chandra Patra Vrs. State of Odisha, 2025 (II) ILR-CUT 262 Division Bench of this Court has expressed the following through the observations of Hon'ble Madras High Court:

"It is apt to refer to the anxious consideration shown by the Madras High Court in N. Karunanidhi Vrs. Union of India, W.P. No. 12887 of 2016, vide Judgment dated 22.04.2022 rendered with respect to exploitation of service. The following benevolent observation has been made by said Court in favour of the employees, whose services have been utilized by the Government for a substantial length of time:

„18. If the Courts cannot give direction for their regularisation of service, in the constrained legal scenario what other remedies that are available to these unfortunate employees, who have been engaged in service for public purpose, without having any definite future to hold on? These petitioners cannot be kept on the tenterhooks of their employment for years together, by brushing aside and discarding their concerned

yearning for a definite future, with unresponsive indifference.

19. A welfare State grounded on constitutional values, cannot come up with apathetic and callous stand that despite continued employment of these petitioners for years together, no semblance of right is available to them. Such stand by the State is opposed to constitutional values as enshrined in Article 21 of the Constitution of India. The Courts of course have held that equal opportunity must be provided in public employment and entry through back door should be discountenanced.

When Article 21, being violated by the State, action towards its servants, the consideration of the Government must primarily be focussed on alleviating legitimate grievances of its employees. Even assuming that the recruitment of these writ petitioners had not been fully in consonance with the procedure for appointment in Government services, the fact remained that these persons have been consciously appointed by the Government for implementing public projects and the work has been extracted from them continuously for several years. It is therefore, not open to the Government after a period of time to turn around and contend that these writ petitioners have no right at all to seek any kind of guarantee for their future.

20. In the opinion of this Court, continued employment for several years, even on a projects meant to serve the State as a whole, certain rights would definitely accrue to them, atleast to the extent of making a claim for formulation of a scheme/towards their absorption. This Court is quite conscious of the fact that the

Government has been benevolent and had come up with several schemes in the past and directed regularisation of services of thousands of employees over a period of time. Such benevolence ought to permeate to the lowest levels to take within its sweep the desperate cry of the petitioners as well. As in the sublime words of the father of nation, Mahatma Gandhi, „A nation‟s greatness is measured by how it treats its weakest members‟. Merely because these writ petitioners have been employed in the projects, the policy makers may not shut their mind and close their eyes to their precarious plight having to serve public purpose but left in the lurch and unprotected, at the end of the day.‟ ***"

11. In view of above discussions with conspectus of legal approach of various Courts, this Court has no option but to observe that the decision of the Board in the 45th Meeting and the 49th Meeting held on 02.09.2015 and 24.09.2016 as reflected in the Letter dated 04.01.2020 (Annexure-8) is not in consonance with law and cannot be countenanced. Having thus observed, the decisions of the Board in its 45th Meeting dated 02.09.2015 and reaffirmed in its 49th Meeting dated 24.09.2016 are set aside. It is, therefore, directed that the competent authorities may take up the claim of the petitioners and consider their case for regularisation in service or absorb them in service.

11.1. Needless to state that while taking fresh decision, the opposite parties shall not be biased by any of the

constraints that prevailed in taking earlier decisions in the Meeting of the Board.

11.2. It is hoped and trusted that the opposite parties shall take pragmatic decision in the light of the above position of law. It may be observed that keeping in view that the petitioners have been waiting for their turn to be Signature Not regularised in service or absorption in positions in Verified Digitally Signed service for long since, being engaged during 2005-07, Signed by: ASWINI KUMAR SETHY Designation: Personal Assistant (Secretary-in-Charge) the opposite parties-competent authorities shall Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK complete the entire exercise within a period of three Date: 25-Jul-2025 13:56:59

months from date.

12. In the result, the writ petitions [W.P.(C) No. 13753 of 2020 and W.P.(C) No.13752 of 2020] stand disposed of along with all pending Interlocutory Applications, if any, but in the circumstances, there shall be no order as to costs.

(MURAHARI SRI RAMAN) JUDGE

High Court of Orissa, Cuttack The 25th July, 2025//Aswini/Bichi/Laxmikant

 
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