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Smart Summary

Factual and Procedural Background

The appellant, possessing an LL.M. degree (1977) and later a Ph.D., was first engaged by the then Udaipur University (now Mohan Lal Sukhadia University) as an ad hoc Assistant Professor of Law from 14-11-1977 to 31-5-1983. After failing to secure a regular appointment, he was re-engaged on 23-2-1984 as a Legal Assistant on a temporary, terminable basis. The post was redesignated “Legal Associate” in 1987, with payment made on a consolidated salary. His services were terminated on 3-3-1990 because he had left to pursue doctoral studies, but he was again appointed on 8-2-1990 (with effect to 31-3-1991), and that appointment was periodically extended until 31-3-2003.

During this period, the University implemented an earlier Supreme Court direction in a batch of writ petitions (1993 Supp (2) SCC 375) by granting Research Associates a salary notionally linked to the minimum of the ₹700-1600 scale, though without treating them as regular staff. Acting on a committee recommendation, the University nevertheless placed the appellant in the higher UGC pay scale of ₹8000-275-13,500 from 1-1-1996. On 13-1-2003 the Registrar issued a show-cause notice seeking recovery of “excess payment”, and on 25-4-2003 informed the Dean that the appellant’s temporary tenure had not been extended beyond 31-3-2003.

The appellant challenged both the non-extension of service and the recovery notice by way of a writ petition. A learned Single Judge directed reinstatement with all consequential benefits and ordered absorption on a regular post from the date of vacancy. On appeal, a Division Bench partly modified the order: it declined automatic regularisation but required the University to consider the appellant for selection, give weightage for past service, and ignore over-age. Both sides sought further relief in the present civil appeals before the Supreme Court.

Legal Issues Presented

  1. Whether the appellant is entitled to regularisation/absorption in the University’s regular cadre despite his engagements being expressly temporary and ad hoc.
  2. Whether the University’s demand for recovery of alleged “excess payment” of salary, said to be contrary to the 1993 Supreme Court order, is legally sustainable.

Arguments of the Parties

Appellant's Arguments

  • The appellant is highly qualified (LL.M. and Ph.D.) and has rendered more than a decade of uninterrupted, unblemished service; denying regularisation would be inequitable and unjust.
  • The University has mis-read the 1993 Supreme Court order; the payment of UGC scale was lawful and therefore no excess payment was ever made.

Respondents' (University) Arguments

  • The Division Bench of the High Court correctly applied governing principles and rightly refused regularisation.
  • The recovery notice for excess payment was justified because the 1993 Supreme Court order permitted only a consolidated salary linked to ₹700, not the UGC scale.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gopal Krishna Sharma case, 1993 Supp (2) SCC 375 (1993) 24 ATC 371 Research Associates to be paid a consolidated salary worked out on the minimum of ₹700-1600 scale; suggestion (not mandate) that Universities consider a scheme for absorption when vacancies arise. Used to examine whether the appellant’s placement in the higher UGC scale was contrary to the earlier order. The Court found the University’s interpretation incorrect and held that recovery on this basis was unsustainable.
Secretary, State of Karnataka v. Umadevi (3), (2006) 4 SCC 1 Sets out the constitutional limits on regularisation of ad hoc/temporary employees; emphasises adherence to recruitment rules and equal-opportunity principles. Relied upon to uphold the High Court’s refusal to grant automatic regularisation to the appellant.

Court's Reasoning and Analysis

Regularisation: The Supreme Court observed that the principles laid down in Umadevi (3) govern regularisation. Employment obtained and continued on purely temporary or ad hoc basis cannot mature into a right to be regularised unless statutory rules so provide. Therefore, the Division Bench was correct in limiting relief to consideration under applicable recruitment rules rather than ordering absorption.

Recovery of Alleged Excess Payment: The Court scrutinised the 1993 decision concerning Research Associates and noted it mandated only a consolidated salary based on minimum pay but did not expressly prohibit a University from granting higher emoluments pursuant to its own committee recommendations. The appellant’s UGC-scale placement stemmed from such a recommendation (order dated 27-12-1999). Consequently, the University’s assertion that payments violated the 1993 judgment was “not correct and cannot be maintained.” The show-cause notice for recovery therefore lacked legal foundation.

Holding and Implications

DISPOSED OF.

The Supreme Court affirmed the High Court’s refusal to grant the appellant automatic regularisation but set aside the recovery notice regarding alleged excess salary. Thus, the appellant may participate in any regular selection process with due weightage for past service and without age bar, and no recovery can be pursued against him for salary already paid. The decision applies established principles from Umadevi and does not create new precedent; its primary impact is confined to the parties involved.

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    Yamuna Shankar Sharma v. State Of Rajasthan And Others

    Dr. Arijit Pasayat, J.— Leave granted.

    2. Challenge in these appeals is to the judgment rendered by a Division Bench of the Rajasthan High Court at Jodhpur, partly allowing the civil special appeal filed by the present Vice-Chancellor, Mohan Lal Sukhadia University (in short “the University”) and others questioning correctness of the order passed by the learned Single Judge. By the order which was impugned before the Division Bench, the learned Single Judge held that order dated 25-4-2003 passed by the University was not sustainable and both the Vice-Chancellor and the University were directed to take back the present appellant in service as Legal Assistant with all consequential benefits. The Single Judge directed the University and the Vice-Chancellor to absorb the present appellant on a regular post from the date when the vacancy arose pursuant to the order of this Court dated 16-9-1992 1993 Supp (2) SCC 375, (1993) 24 ATC 371.

    3. Background facts in a nutshell are as follows:

    The appellant acquired LLM degree in the year 1977. The Udaipur University, rechristened as Mohan Lal Sukhadia University, appointed him as Assistant Professor of Law in its College of Law, Udaipur on ad hoc basis in the regular pay scale of Assistant Professor. The post also entitled the appellant to regular annual grade increments, which were consequently given during the course of his service in his capacity as Assistant Professor. Later, in the year 1983 the appellant was interviewed for the purposes of selection to the post of Assistant Professor on regular basis. He, however, was not selected and as a result whereof, his services were not continued after 31-5-1983. Thus, he worked as Assistant Professor from 14-11-1977 until 31-5-1983 in the regular pay scale of Assistant Professor on ad hoc basis in the College of Law, Udaipur University. After a gap of about nine months, he was again appointed in the University on 23-2-1984 against the post of Legal Assistant but the appointment was liable to be terminated without notice. Subsequently, the post of Legal Assistant was redesignated as Legal Associate by the order of the University dated 19-9-1987. As Legal Assistant/Legal Associate, the appellant was paid a consolidated salary of Rs 1200 per month. By the order dated 19-6-1987 the consolidated salary was enhanced to Rs 1620 per month. On 3-3-1990, the University terminated the services of the appellant with effect from 14-11-1988 on account of the absence of the appellant from duty. The absence was occasioned by the fact of his having proceeded for undertaking PhD work at University of Delhi.

    4. After he acquired the PhD degree, the appellant was again appointed by the University on the post of Legal Assistant by its order dated 8-2-1990 on fixed salary of Rs 2070 per month as stop-gap arrangement until 31-3-1991 or till the selection and appointment of a candidate to the post of Legal Associate, whichever was earlier. The appointment as Legal Associate was extended from time to time and the final extension was granted to him until 31-3-2003. After 31-3-2003 services were not extended, with the result that the appellant ceased to be an employee of the University. In this regard the Registrar of the University by its letter dated 25-4-2003 informed the Dean, College of Law, Udaipur that the term of temporary appointment of the appellant as Legal Associate has not been extended beyond 31-3-2003.

    5. In order to complete the narration of facts, it is necessary to refer to a development which took place as a result of filing of a batch of writ petitions before this Court by Research Assistants/Associates on account of refusal of the University to grant to them the scale of Rs 700-1600 recommended by the University Grants Commission with effect from 1-1-1973. Even though the University had implemented the UGC recommendations and granted UGC scales in the case of members of teaching staff, it failed to grant the benefit of UGC scale to the Research Assistants/Associates.

    6. The appellant was also one of the writ petitioners before this Court. In that batch of writ petitions this Court rejected the demand of the petitioners for placement in the scale of Rs 700-1600. This Court, however, directed that the Research Associates be allowed a consolidated salary to be worked out by placing them at a basic salary of Rs 700 per month, which was the minimum of the scale of Rs 700-1600. This Court also allowed monetary benefits in the form of allowances admissible to regular employees drawing a basic pay of Rs 700 per month. It was clarified that the appointments will continue to be what they were and the incumbents will not belong to the cadre of Research Assistants merely because their consolidated salary is ordered to be worked out on the minimum of the timescale allowed to Research Assistants. It was further clarified that they will not be equated with Lecturers/Assistant Professors. They were to continue to carry on the same duties, which they were carrying out including assisting Assistant Professors. The benefit of the revised consolidated salary was made available to them from the date of their appointment as Research Associates. On behalf of the petitioners it was urged before this Court that even though they had put in long years as Research Associates they were still treated as ad hoc employees with no security of service. This Court, keeping in view the plea of the petitioners, observed as follows: (Gopal Krishna Sharma case 1993 Supp (2) SCC 375, (1993) 24 ATC 371)

    “We would leave it to the authorities to consider the feasibility of preparing a scheme whereunder such Research Associates can be absorbed in the regular cadre of Research Assistants as and when vacancies arise. Since the educational requirements, process of selection and jobs charts are almost identical such a scheme can be of mutual benefit to the employees as well as the university, the employees getting security of tenure and university getting experienced hands. We would expect the university to examine the feasibility of preparing such a scheme at an early date.”

    7. Keeping in view the order passed by this Court and on the recommendation of the Committee constituted by the Board of Management, the Vice-Chancellor allowed the UGC pay scales to the appellant. An undertaking was given on 27-12-1999 pursuant to the aforesaid order. Though initially the appellant was allowed to draw the UGC pay scale, on 13-1-2003 notice was issued to show cause as to why the excess payment made was not to be recovered from him. Notice referred to the order of this Court dated 16-9-1992 1993 Supp (2) SCC 375, (1993) 24 ATC 371 by which it was directed that Research Associates were to be allowed a consolidated salary to be worked out by placing them on a basic salary of Rs 700 per month. It was indicated that the UGC scale was wrongly allowed to the appellant which resulted in excess payment. Subsequently, Registrar of the University informed the Dean, College of Law, Udaipur that the term of temporary appointment to the appellant was not extended beyond 31-3-2003 as per the decision of the Board of Management. This order and the show-cause notice formed subject-matter of challenge before the learned Single Judge who as noted above allowed the writ petition.

    8. The order was challenged before the Division Bench which as noted above partly modified the order and held that regularisation was not to be granted as claimed but directed that the appellant's case was to be considered on following the criteria as per the applicable rules. It was further directed that while subjecting the appellant for selection process, past service rendered by him was to be given due weightage. It was further directed that he was not to be denied regularisation on the ground that he has become overage. But no other relief was given.

    9. In support of the appeals learned counsel for the appellant submitted that the High Court did not consider the effect of the fact that the appellant was highly qualified and had rendered uninterrupted and unblemished service of more than a decade. To deny regularisation would be inequitable and unjust. It was further submitted that the notice on the ground that excess payment has been made is without basis. The conclusion that overpayment has been made is really not correct. This Court's order is being wrongly interpreted.

    10. A review petition was filed before the High Court which was dismissed. But, however, time for compliance was fixed.

    11. Learned counsel for the respondents on the other hand supported the judgment of the High Court.

    12. The manner in which the claim for regularisation has to be dealt has been the subject-matter of this Court's decision in several cases. In Secy., State of Karnataka v. Umadevi (3) (2006) 4 SCC 1, a Constitution Bench of this Court has considered the matter at great length. In view of what has been held therein, the conclusions of the High Court in the matter of regularisation suffered from no infirmity.

    13. The residual question is whether the University's view regarding the alleged overpayment is correct. In the order dated 27-12-1999 it was indicated that the appellant will be placed in the pay scale of Rs 8000-275-13,500 w.e.f 1-1-1996. He was also treated to be entitled in the scale equivalent to Assistant Professor for the purpose of scale only not for designation. This Court in its order dated 16-9-1992 1993 Supp (2) SCC 375, (1993) 24 ATC 371 directed that the consolidated salary be worked out by placing the petitioners in the scale of Rs 700-1600 which was the minimum in the scale and allowing benefits thereof in the form of such allowance allowed to a regular employee drawing a basic pay of Rs 700 per month.

    14. The order passed by the University was on the basis of the recommendations of the Committee to pay the UGC pay scale at a particular scale which was applicable at the relevant point of time and revised pay scale. That being so, the view that he had been paid contrary to the order of this Court is not correct and cannot be maintained. Accordingly, the notice for recovery cannot be maintained. To that extent, the appellant is entitled to the benefit.

    15. The appeals are disposed of. No costs.

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    Yamuna Shankar Sharma v. State Of Rajasthan And Others
    (Jan 9, 2007)