Govt. of Tamil Nadu & Anr. Etc. Etc. vs. Tamil Nadu Makkal Nala Paniyalargal & Ors. Etc. Etc.
Background
Tamil Nadu ran a village-level worker scheme called "Makkal Nala Paniyalargal" (MNP) starting in 1989, which the government repeatedly disbanded and revived over the years, finally scrapping it altogether in 2011 to save costs. The affected workers challenged the disbandment in the High Court, which ordered the State to create posts and absorb them (or pay them wages for a further six months). The State appealed to the Supreme Court against this direction.
Decision Breakdown
The Supreme Court held that the MNPs were never appointed against any regular sanctioned post in the government establishment (they were engaged under a scheme-based honorarium arrangement, not through a proper recruitment process) so no right to regularisation or absorption could arise, relying on the Constitution Bench ruling in Secretary, State of Karnataka v. Umadevi (3). The Court found the High Court's direction to create posts and reinstate the workers legally unsustainable and set aside that judgment. However, it directed that workers who had not already been re-engaged under a later 2022 scheme could still claim a modest honorarium (about Rs. 25,851 each) for the six-month gap period, without interest.
Lesson Learnt
Long or repeated engagement under a government welfare/honorarium scheme does not by itself create a right to a regular government post or automatic regularisation: that right depends on appointment against a sanctioned post through due process, as settled in the Umadevi line of cases.