Madan Singh & Others v. State of Haryana & Others
Background
Following the Supreme Court's landmark Umadevi judgment restricting "backdoor" regularisation of government employees, the State of Haryana issued a series of policy notifications (in 2011 and then in June and July 2014) seeking to regularise the services of Group B, C and D contractual/ad hoc employees who had completed a specified number of years of service, describing each round as a "one time measure." The Punjab and Haryana High Court struck down the 2014 notifications as illegal, holding that they amounted to repeated "backdoor entry" that violated the law against bypassing regular recruitment, and suspected the notifications were politically timed ahead of the October 2014 state elections; it allowed affected employees six months' continued service while regular recruitment was undertaken. Both the State and the affected employees appealed to the Supreme Court: this judgment disposes of a large consolidated batch of such appeals.
Decision Breakdown
The Supreme Court drew a distinction between the two rounds of notifications. It upheld the validity of the June 2014 notifications (for employees with roughly three years' service as on a fixed 2014 cut-off date), finding no rational infirmity in them, and set aside the High Court's ruling to the contrary, meaning beneficiaries under these notifications are entitled to regularisation. However, it agreed the July 2014 notifications were arbitrary and illegal, since they set an unjustified future cut-off date and were essentially aimed at absorbing ad hoc employees who had been engaged without any public advertisement or interview. Despite finding the July 2014 notifications illegal, the Court exercised its special discretionary power under Article 142 of the Constitution to protect the ad hoc employees who had already benefited from them and remained in service (given nearly 12 years had passed and their posts were confirmed not to affect fresh recruitment), directing that they continue in service but be placed at the lowest applicable pay scale.
Lesson Learnt
Even a government policy for regularising ad hoc/contractual staff must have a rational, present-day basis rather than repeatedly re-running "one time" exceptions with shifting future cut-off dates, but where employees have long relied in good faith on a scheme later found unlawful, the Supreme Court can use its Article 142 power to protect their continued employment (typically at a reduced pay scale) rather than displacing them after years of service.