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The Divisional Manager, APSRTC & Anr. v. B. Venkataiah

Civil Appeal · 2018 INSC 1177Decided 7 Dec 2018
Civil Appeal No. 12246 of 2018
Dr. Justice D.Y. Chandrachud · Justice M.R. Shah

Background

The respondent, a contract driver with Andhra Pradesh State Road Transport Corporation (APSRTC), was terminated after a departmental enquiry, but was later re-engaged on contract following a departmental review. He neither challenged his termination nor his fresh appointment, but sought a High Court order granting him "continuity of service" (for regularisation purposes) from the date of his original termination to his re-engagement. Relying on an earlier common judgment covering a batch of similar cases, a Single Judge and then a Division Bench of the Andhra Pradesh High Court ruled in his favour, prompting the Corporation to appeal to the Supreme Court.

Decision Breakdown

The Supreme Court allowed the Corporation's appeal, holding that continuity of service can only be granted when the underlying order of termination is itself challenged and set aside, since the respondent never contested his termination or his fresh appointment, there was no proper legal basis to treat him as continuously employed. The Court also noted that granting an employee found guilty of misconduct the same continuity benefit as blemish-free contract employees was inappropriate, and that the High Court had erred by mechanically applying a batch judgment meant for a different set of facts (some involving no enquiry or enquiries that violated natural justice) without examining this respondent's individual circumstances. The High Court's judgments were set aside, and the respondent's seniority was directed to count only from the date of his fresh appointment.

Lesson Learnt

An employee who does not challenge their own termination or the terms of a subsequent re-appointment cannot later claim continuity of service as if no break occurred: the two are legally intertwined, and continuity relief flows only from successfully contesting the termination itself. Court directions issued in "batch" litigation covering many similarly-situated people should not be mechanically extended to someone whose individual facts (such as a valid enquiry finding misconduct) differ materially.

Official source (sci.gov.in)View Judgment (PDF)

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