Bhola Nath v. The State of Jharkhand & Ors.
Background
Junior Engineers hired on repeatedly-renewed one-year contracts against sanctioned posts for roughly a decade were abruptly denied further renewal without explanation.
Decision Breakdown
The Supreme Court held the State, as a "model employer," cannot keep employees on contractual status for a decade against sanctioned posts and then discard them without a reasoned order: this was "manifestly arbitrary." Since they were selected through a proper rules-based process, they were entitled to regularisation, which the Court ordered.
Lesson Learnt
A government employer cannot keep an employee on repeatedly-renewed "temporary" status for years against a permanent sanctioned post and then walk away without reasons.