AMICUS AI
Citation Codes
Neutral Citations
2007 INSC 56
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • The Societies Registration Act
  • Administrative Tribunals Act, 1985
  • Article 142 of the Constitution of India
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Cites
Cited by
Citation Codes
Neutral Citations
2007 INSC 56
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • The Societies Registration Act
  • Administrative Tribunals Act, 1985
  • Article 142 of the Constitution of India
Smart Summary

Factual and Procedural Background

The Indian Council of Medical Research (“ICMR”), a society registered under the Societies Registration Act, operated a project titled “National Nutrition Monitoring Bureau” in several States. The Central Government funded this project through grant-in-aid released on a year-to-year basis.

The respondent was appointed on 1-4-1975 to work on this project under an offer of appointment that, like the project itself, was expressly “year-to-year.” Over time, the respondent sought regularisation of her services. When that request was rejected, she filed a writ petition before the High Court of Madras. After the establishment of the Central Administrative Tribunal (“CAT”), the matter was transferred there.

The CAT observed that authorities had contemplated making the project permanent and, consequently, ordered regularisation of the respondent with effect from 25-2-1998 (the date of the writ petition). ICMR filed a writ petition before the Madras High Court challenging the CAT’s order, while the respondent filed a cross-petition seeking regularisation from her initial appointment date. The High Court dismissed ICMR’s petition and allowed the respondent’s, directing regularisation from 1-4-1975. By that time, the respondent had already retired on 31-5-2004 at the age of 58.

ICMR appealed to the Supreme Court, resulting in the present decision.

Legal Issues Presented

  1. Whether the respondent’s services could be regularised when her appointment and the underlying post were explicitly on an ad-hoc, year-to-year basis tied to Central Government funding.
  2. Whether the CAT and the High Court erred in directing regularisation without the Union of India—whose executive authority was required to sanction a permanent post—being a party to the proceedings.

Arguments of the Parties

Appellant’s Arguments (ICMR)

  • The project was ad hoc and funded annually; therefore, no permanent post existed, and the respondent’s year-to-year appointment could not be regularised.
  • Creation or sanction of a permanent post is an executive function requiring Central Government approval, which was neither sought nor obtained.

Respondent’s Arguments

  • The CAT correctly relied on evidence that authorities had already decided to make the project permanent, eliminating any obstacle to regularisation.
  • Principles of fairness demanded that long service rendered by the respondent be recognised through regularisation from her initial appointment date.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court underscored that the Union of India, not joined as a party, had exclusive authority to create or sanction permanent posts. Because the project was funded strictly on an annual, grant-in-aid basis, ICMR lacked power to regularise employees or convert the project into a permanent establishment.

The Tribunal and High Court therefore exceeded their jurisdiction by effectively directing the creation of a permanent post and regularising the respondent. The Court further held that, in these circumstances, the “doctrine of fairness” could not override statutory and constitutional principles governing creation of posts in public service.

Consequently, the orders of the CAT and the High Court, which mandated regularisation from 1-4-1975, were legally unsustainable.

Holding and Implications

APPEAL ALLOWED; High Court and CAT orders set aside.

The respondent’s services will not be treated as regularised. However, any amounts already paid to her will not be recovered, by virtue of the Court’s power under Article 142 of the Constitution. The decision affects only the parties and does not set a new precedent on regularisation, reaffirming that creation of posts remains an executive function requiring proper governmental sanction.

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    Indian Council Of Medical Research And Others v. K. Rajyalakshmi .

    S.B Sinha, J.— Appellant 1 Indian Council of Medical Research (“ICMR”) is a society registered under the Societies Registration Act. It is engaged in research activities in the field of medicine. It carries out various research activities through various schemes/projects. One of such projects is called “National Nutrition Monitoring Bureau”. The said project was carried out in the States of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Madhya Pradesh, Orissa, West Bengal and U.P

    2. For the aforementioned purpose, the Central Government admittedly grants grant-in-aid on year-to-year basis.

    3. The respondent herein was appointed by reason of an offer of appointment dated 1-4-1975. The terms of appointment demonstrate that the same was also on year-to-year basis. The post was also on year-to-year basis as the grant-in-aid of the Central Government in relation to the said project was on that basis. However, the project continued for a long time for one reason or the other. The respondent prayed for regularisation of her services, but the same having been rejected, she approached the High Court of Madras seeking for a direction to the respondents to regularise her services with retrospective effect from such date as it deemed fit and proper. The said writ petition was ultimately transferred to the Central Administrative Tribunal, Madras, in view of a notification issued by the Central Government under the Administrative Tribunals Act, 1985.

    4. The Tribunal noticed that although a decision was taken that the project should be made a permanent one and its activities should be expanded but no such order was passed. It was in the aforementioned backdrop, the Tribunal opined that the services of the respondent herein should be directed to be regularised. It was so directed from the date of filing of the writ petition i.e from 25-2-1998.

    5. The appellants herein preferred a writ petition thereagainst before the High Court of Judicature at Madras. The respondent also filed a writ petition questioning that part of the order whereby regularisation was directed to be made w.e.f the date of filing of the writ petition and not from the date of her initial appointment. Both the writ petitions were heard together. By reason of the impugned judgment dated 10-2-2005 the High Court, while allowing the writ petition of the respondent, dismissed the writ petition of the appellants herein and directed that the services of the respondent should be regularised from the date of her initial appointment i.e 1-4-1975.

    6. It has been accepted at the Bar that the respondent has since retired on 31-5-2004 on reaching the age of superannuation of 58.

    7. The submission of Mr Raju Ramachandran, learned Senior Counsel appearing on behalf of the appellants is that in view of the fact that the project was an ad hoc one as also in terms of the offer of appointment made to the respondent, her services could not have been directed to be regularised.

    8. Mr V. Prakash, learned Senior Counsel appearing on behalf of the respondent, on the other hand, would submit that the Tribunal granted the relief of regularisation of the services of the respondent, inter alia having regard to the fact that there could have been no reason for not making the project a permanent one. Our attention was drawn to the findings of the learned Tribunal to the effect, which has also been noticed herein by us, that a decision has been taken by the authorities concerned to make the project a permanent one. On the said premise it was submitted that the doctrine of fairness demands that the direction issued by the Tribunal and upheld by the High Court should be directed to be implemented.

    9. Before the Tribunal, the Union of India was not impleaded as a party-respondent. No prayer, thus, in our opinion, could have been made for a direction to the Union of India to make the project a permanent one. The question, therefore, which was required to be taken into consideration by the Tribunal was as to whether, despite the fact that a long number of years have passed, the services of the respondent could have been directed to be regularised despite the fact that her appointment was on a purely ad hoc basis on a temporary post.

    10. It has not been denied or disputed that the project being on an yearly basis, post could not have been sanctioned on a regular basis. Having regard to the fact that the appellant herein was bound to implement the project of the Central Government in terms of the grant-in-aid scheme, it could not have taken a decision on its own for making the project a permanent one. In absence of the Union of India, therefore, in our opinion, the Tribunal and consequently the High Court committed a manifest error in entertaining the question as to whether the project should have been made a permanent one or not.

    11. Keeping in view the fact that the project could not have been directed to be made a permanent one at the instance of the appellant, the question of invoking the doctrine of fairness, in our opinion, did not arise. In service jurisprudence, it is well known, that creation or sanction of a post is essentially an executive function.

    12. We are, therefore, of the opinion that it is not a fit case where the impugned direction could have been issued by the Tribunal and consequently by the High Court. The impugned judgment, therefore, cannot be sustained and it is set aside accordingly.

    13. However, we direct that any amount paid to the respondent by the appellant herein shall not be recovered. This direction we are passing in exercise of our jurisdiction under Article 142 of the Constitution of India.

    14. The appeal is allowed. No costs.

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    Comments

    Indian Council Of Medical Research And Others v. K. Rajyalakshmi .
    (Jan 17, 2007)