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Labour & Industrial LawSupreme Court of India

APSRTC & Ors. v. K. Sathaiah

Civil Appeal · 2018 INSC 1172Decided 7 Dec 2018
Civil Appeal No. 12242 of 2018
Dr. Justice D.Y. Chandrachud · Justice M.R. Shah

Background

A contract driver employed by the Andhra Pradesh State Road Transport Corporation (APSRTC) was dismissed after a disciplinary enquiry found him guilty of unauthorised absence. During a later departmental review, he was given a fresh contract appointment, but he never challenged either his original termination or the terms of this fresh appointment. He instead went to the High Court seeking "continuity of service", i.e., that his employment be treated as unbroken from the date of his original termination to his re-engagement, for seniority and regularisation purposes. Both the Single Judge and a Division Bench of the Andhra Pradesh High Court ruled in his favour, relying on an earlier batch judgment covering similarly placed workers.

Decision Breakdown

The Supreme Court held that continuity of service can only be granted when the underlying termination order is itself set aside, since the workman had not challenged his termination or his fresh appointment, there was no legal basis to treat his service as continuous through the gap. It found the High Court had mechanically applied directions meant for a batch of differently-situated workers (some terminated without any enquiry at all) to this case, without examining that here a full enquiry had, in fact, been held and never challenged. The Court set aside both the Single Judge's and the Division Bench's orders and held that the respondent's seniority would run only from the date of his fresh appointment, not from his original date of joining.

Lesson Learnt

An employee who accepts a fresh appointment without ever legally challenging the termination that preceded it cannot later claim "continuity of service" through the gap: seniority and related benefits will run only from the date of re-appointment, not the earlier termination date.

APSRTC & Ors. v. K. Sathaiah – Legal Case Shots | LegalAware