Dharam Singh & Ors. v. State of U.P. & Anr.
Background
Six workers were engaged by the U.P. Higher Education Services Commission between 1989 and 1992 as daily-wage Class-IV attendants and a driver, performing continuous ministerial duties for the Commission for decades. The Commission itself repeatedly asked the State Government to sanction permanent posts for them, but the State refused in 1999 and again in 2003, citing "financial constraints." The High Court (Single Judge and then Division Bench) dismissed their case, holding there were no rules for regularisation and no vacancies, relying on the Supreme Court's earlier Umadevi judgment.
Decision Breakdown
The Supreme Court held that the lower courts had wrongly reduced the case to a bare regularisation plea instead of examining whether the State's refusal to sanction posts was itself arbitrary. It found the State's "financial constraints" reasoning to be a non-speaking, unreasoned rejection that ignored decades of genuine, perennial need for the work being done, and that record evidence (an RTI response and an unrebutted court application) actually showed vacant posts existed, contradicting the "no vacancy" claim. The Court distinguished Umadevi, noting it does not shield the State from being held accountable for indefinitely extracting permanent work under a "daily-wage" label. It quashed the State's refusals and ordered full regularisation of all appellants effective from 24.04.2002, with arrears, pension benefits for retired/deceased workers, and a compliance affidavit within fixed timelines.
Lesson Learnt
Government bodies cannot rely indefinitely on daily-wage or ad hoc labour to perform work that is genuinely permanent and then hide behind "financial constraints" or the Umadevi ruling to deny regularisation. Courts will scrutinise such refusals for arbitrariness and can order regularisation with back pay when the refusal is not genuinely reasoned.