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State Of Karnataka And Others v. G.V Chandrashekar .
Factual and Procedural Background
Several groups of employees (typists, forest watchers, drivers, sweepers, mazdoors, etc.) working for the State of Karnataka had been engaged on an ad-hoc, daily-wage or other non-statutory bases since the late 1970s and 1980s. After completing more than ten years of continuous service, they sought regularisation with consequential benefits. Their requests were rejected by the departmental authorities.
The aggrieved employees approached the Karnataka Administrative Tribunal (KAT), which in each case directed the State to examine and decide their claims—usually within 90 days. The State challenged those orders in separate writ petitions before the Karnataka High Court. The High Court dismissed the writ petitions, relying mainly on its earlier decision in Premakala Shetty v. Common Cadre Committee (and, in some cases, State of Karnataka v. T.B. Manjunath), and again directed the State to consider regularisation.
The State of Karnataka sought relief before the Supreme Court through multiple Special Leave Petitions (SLPs). Given the common question of law, all SLPs were heard together and decided by this common judgment.
Legal Issues Presented
- Whether employees appointed on an ad-hoc or daily-wage basis, in violation of the statutory recruitment rules, acquire a right to be regularised merely because they have rendered long years of service.
- Whether paragraph 53 of the Constitution Bench decision in State of Karnataka v. Umadevi (3) (2006) 4 SCC 1 permits regularisation of such employees as a one-time measure.
Arguments of the Parties
Appellants’ Arguments (State of Karnataka)
- All initial appointments were made dehors the recruitment rules and are therefore illegal under Articles 14 and 16 as explained in Umadevi (3).
- They relied on the Supreme Court order in Madanbi v. Director of Horticulture, where similar claims were rejected following Umadevi (3).
Respondents’ Arguments
- Placed reliance on the order in State of Karnataka v. S.K. Halappa, where a Division Bench had remitted the matter to the High Court for reconsideration in light of Umadevi (3) rather than outright dismissal.
- Urged that paragraph 53 of Umadevi (3) allows regularisation of employees who have completed ten years of service in sanctioned posts.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| State of Karnataka v. Umadevi (3) (2006) 4 SCC 1 | Appointments made contrary to recruitment rules are illegal; courts cannot direct regularisation except the limited one-time measure in para 53. | Treated as binding; formed the cornerstone for denying regularisation to the respondents. |
| Para 53 of Umadevi (3) | Permits a one-time regularisation of “irregular” (not illegal) appointees who worked ten years or more in sanctioned posts. | Court held the respondents’ appointments were “illegal,” so para 53 relief was unavailable. |
| Official Liquidator v. Dayanand (2008) 10 SCC 1 | Reaffirmed that Umadevi (3) is binding (Art. 141) and criticised deviations from it. | Relied upon to stress judicial discipline and to reject contrary two-judge bench views. |
| National Fertilizers Ltd. v. Somvir Singh (2006) 5 SCC 493 | Distinction between illegal and irregular appointments; illegal appointees have no right to regularisation. | Cited to characterise respondents’ appointments as illegal. |
| Punjab Water Supply & Sewerage Board v. Ranjodh Singh (2007) 2 SCC 491 | Policy circulars cannot override recruitment rules; reiterated difference between irregular and illegal appointments. | Used to reinforce that executive instructions relied on by the High Court could not confer rights. |
| Post Master General v. Tutu Das (Dutta) (2007) 5 SCC 317 | Para 53 of Umadevi (3) inapplicable to illegal appointments. | Quoted to reject respondents’ reliance on para 53. |
| State of M.P. v. Lalit Kumar Verma (2007) 1 SCC 575 | No right to regularisation where no sanctioned vacancy exists; Umadevi applied. | Referenced to illustrate consistent application of Umadevi (3). |
| Employees’ Union v. Mineral Exploration Corp. Ltd. (2006) 6 SCC 310 | Directed tribunal to decide claims strictly per Umadevi (3). | Shown as an example of correct approach post-Umadevi. |
| U.P. S.E.B. v. Pooran Chandra Pandey (2007) 11 SCC 92 | Two-judge bench observation suggesting Umadevi is limited by Maneka Gandhi. | Declared by the Court to be obiter and not binding. |
| Maneka Gandhi v. Union of India (1978) 1 SCC 248 | Executive action must be reasonable and non-arbitrary under Article 14. | Cited only to show that it does not override the specific holding in Umadevi (3). |
| S.V. Narayanappa AIR 1967 SC 1071; R.N. Nanjundappa (1972) 1 SCC 409; B.N. Nagarajan (1979) 4 SCC 507 | Explain “irregular” appointments. | Referred to within para 53 of Umadevi (3); used to draw line between irregular and illegal. |
| Madanbi v. Director of Horticulture (SC, order) | Appeals allowed following Umadevi (3). | Relied upon by the appellants. |
| State of Karnataka v. S.K. Halappa (SC, order) | Remitted matter to High Court for reconsideration in light of Umadevi (3). | Cited by respondents, but Court preferred the stricter approach in Madanbi. |
Court's Reasoning and Analysis
The Supreme Court began by noting that a Constitution Bench in Umadevi (3) constitutes binding law under Article 141. That decision declared appointments made in contravention of recruitment rules “wholly illegal and without jurisdiction,” and limited the power of courts to direct regularisation, except as a one-time measure for irregular (not illegal) appointments described in paragraph 53.
After surveying subsequent case-law—including Somvir Singh, Lalit Kumar Verma, Ranjodh Singh, Tutu Das and especially the three-judge-bench ruling in Official Liquidator v. Dayanand—the Court emphasised judicial discipline and the necessity of following Umadevi. It treated the contrary observations in Pooran Chandra Pandey as non-binding obiter.
Applying these principles, the Court found:
- The respondents were appointed without adherence to statutory recruitment rules, selection procedures or reservation policies; hence their appointments were illegal, not merely irregular.
- Because the initial appointments were illegal, paragraph 53 of Umadevi (3) could not be invoked to grant regularisation.
- Orders of the KAT and High Court, which had relied on earlier Karnataka decisions (Premakala Shetty, T.B. Manjunath) without considering Umadevi, were contrary to binding precedent.
Consequently, the impugned High Court judgments could not stand.
Holding and Implications
Appeals Allowed; High Court judgments set aside; no order as to costs.
The immediate effect is that the respondents’ claims for regularisation are rejected. The judgment reinforces the binding force of Umadevi (3) and signals that courts and tribunals must distinguish between “illegal” and “irregular” appointments, granting relief only within the narrow confines of paragraph 53. No new legal doctrine is created, but the decision fortifies existing precedent against inconsistent lower-court orders.
S.B Sinha, J.— Leave granted. These appeals involving similar questions of law and facts were taken up for hearing together and are being disposed of by this common judgment.
2. The short question which arises for consideration herein is as to whether the respondents herein having been appointed on an ad hoc basis could be treated to have been regularised in their services. We may notice individual fact of the matters before us.
Civil appeal arising out of SLP (C) No. 24124 of 2004
3. The respondent herein was appointed as a typist on 5-9-1985 and worked for more than ten years without break in service. Under these circumstances, he sought direction from the appellants herein to regularise his services with all consequential benefits. His claim was denied by the appellants.
4. Aggrieved by the same, the respondent approached the Karnataka Administrative Tribunal which by its order dated 22-9-2003 directed that the question of regularisation of the services of the respondent be examined by the appellants with reference to records and the decision thereon be taken within 90 days thereafter.
5. Challenging the order of the Tribunal, the appellant State approached the High Court which by its order dated 9-8-2004 dismissed the same and directed the appellant to consider the claim of the respondent in terms of the judgment in Premakala Shetty v. Common Cadre Committee.
Civil appeals arising out of SLPs (C) Nos. 24985-5042 of 2006
6. The respondents were working in the Forest Department for over ten years as gate watchman, driver, wireless operator and computer operator and sought for regularisation of their services from the authorities of the Department with all consequential benefits. Their claim was denied by the appellants.
7. Aggrieved by the same, the respondents approached the Karnataka Administrative Tribunal which by its order dated 24-9-2003 directed that the question of regularisation of the services of the respondent be examined by the appellants with reference to records and the decision thereof may be taken within 90 days.
8. Challenging the order of the Tribunal, the appellant State approached the High Court which dismissed the writ petition by reason of an order dated 21-7-2004 and directed the appellant to consider the claim of the respondents following the judgment in Premakala Shetty v. Common Cadre Committee.
Civil appeal arising out of SLP (C) No. 12223 of 2006
9. The respondents were appointed as sweepers on 1-4-1980 and 29-4-1978 respectively and sought for regularisation of their services with all consequential benefits as they had put in more than ten years of service. Their claim was denied by the appellants.
10. Aggrieved by the same, the respondents approached the Karnataka Administrative Tribunal which by its order dated 10-1-2003 directed that regularisation of the respondents be made from the day they had completed 10 years of continuous service, as against the posts on which they had been irregularly recruited, with all consequential benefits.
11. Challenging the order of the Tribunal, the appellant State approached the High Court by filing a writ petition which dismissed the writ petition by reason of an order dated 5-1-2004 directing it to consider the claim of the respondents following the judgments in State of Karnataka v. T.B Manjunath and Premakala Shetty v. Common Cadre Committee.
Civil appeals arising out of SLPs (C) Nos. 15115-19 of 2004
12. The respondents herein have been working as forest watchers for more than 10 years, having been inducted as daily wagers. As their applications for regularisation was rejected by the appellants, they approached the Karnataka Administrative Tribunal which by its order dated 19-12-2002 directed that in the event of the respondents filing fresh application with supportive evidence, their claim for regularisation may be taken up and appropriate orders thereon may be passed within three months from the date of representation.
13. Challenging the order of the Tribunal, the appellant State approached the High Court by filing a writ petition which rejected the writ petition by reason of an order dated 28-1-2004 and directing it to consider the claim of the respondents following the judgments in State of Karnataka v. T.B Manjunath and Premakala Shetty v. Common Cadre Committee.
Civil appeals arising out of SLPs (C) Nos. 16273-76 of 2004
14. The respondents have been working as mazdoors and sought for regularisation of their services having completed more than 10 years of service. As their applications for regularisation was denied by the appellants, they approached the Karnataka Administrative Tribunal which by its order dated 24-7-2003 directed that the claim of the respondents be examined and decided within 90 days from the date of receipt of the order and in the event of having completed 10 years of service, on any subsequent date, on any day prior to or after the date of filing of the application, the appellants shall consider the claim for regularisation.
15. Challenging the order of the Tribunal, the appellant State approached the High Court by way of writ which was rejected by reason of order dated 28-1-2004 and directing it to consider the claim of the respondents following the judgments in State of Karnataka v. T.B Manjunath and Premakala Shetty v. Common Cadre Committee.
Civil appeals arising out of SLPs (C) Nos. 17865-73 of 2004
16. The respondents were appointed as forest watcher, literate assistant and board driver and sought for regularisation of their services with all consequential benefits. As their applications for regularisation was denied by the appellants, they approached the Karnataka Administrative Tribunal which ordered on 11-11-2002 that the appellants shall consider the claim of the respondents but subject to verification of the claim of their having completed ten years of continuous service be examined and decided within 90 days from the date of receipt of the order.
17. Challenging the order of the Tribunal, the appellant State approached the High Court by way of a writ petition which was rejected by reason of order dated 12-1-2004 and directing it to consider the claim of the respondents in terms of the judgments in State of Karnataka v. T.B Manjunath and Premakala Shetty v. Common Cadre Committee, and directed to comply with the order within two months.
Civil appeals arising out of SLPs (C) Nos. 16527-34 of 2004
18. The respondents herein were appointed as first division assistant, stenographer, watchman and have approached KAT for the regularisation of their services. The Tribunal by way of order dated 23-9-2003 allowed the application of the respondents herein and directed compliance within 90 days from the date of receipt of the order. Challenging the order of the Tribunal, the appellant State approached the High Court by way of a writ petition which was rejected by reason of order dated 17-3-2004 and directing it to consider the claim of the respondents.
Civil appeal arising out of SLP (C) No. 11893 of 2006
19. The respondent's husband was appointed as a driver on 30-5-1980 and he died on 15-8-1992. The respondent sought for regularisation of his services with all consequential benefits. The Tribunal on 10-7-2003 relying upon the decision on Bidu v. State of Karnataka ILR 2000 Kant 2405 directed to pass appropriate orders within 90 days, including consideration of claim for compassionate appointment. Challenging the order of the Tribunal the appellants came up with a writ petition before the High Court which was dismissed by reason of order dated 9-11-2004, placing reliance on State of Karnataka v. Karnataka Casual and Daily Rated Workers' Union ILR 2001 Kant 1178, State of H.P v. Suresh Kumar (1996) 7 SCC 562, (1996) 33 ATC 336, AIR 1996 SC 1565, Randhir Singh (1982) 1 SCC 618, D.S Nakara (1983) 1 SCC 305 and Dharwad (1990) 2 SCC 396, (1990) 12 ATC 902, etc.
Civil appeal arising out of SLP (C) No. 11894 of 2006
20. The respondents herein were appointed as literate assistant, hand pump helper, typist and sought for regularisation of services with all consequential benefits from their authorities. The High Court dismissed the writ petition filed by the State, which challenged the Tribunal's order dated 9-6-2003 and directed the appellant to consider the claim of the respondents.
21. Indisputably, a Constitution Bench of this Court in State of Karnataka v. Umadevi (3) (2006) 4 SCC 1 having regard to the provisions contained in Articles 14 and 16 of the Constitution of India opined that any appointment made in contravention of any recruitment rules framed in terms of the proviso appended to Article 309 of the Constitution of India would be wholly illegal and without jurisdiction, holding:
“26. With respect, why should the State be allowed to depart from the normal rule and indulge in temporary employment in permanent posts? This Court, in our view, is bound to insist on the State making regular and proper recruitments and is bound not to encourage or shut its eyes to the persistent transgression of the rules of regular recruitment. The direction to make permanent—the distinction between regularisation and making permanent, was not emphasised here—can only encourage the State, the model employer, to flout its own rules and would confer undue benefits on a few at the cost of many waiting to compete. With respect, the direction made in para 50 (of SCC) of Piara Singh (1992) 4 SCC 118, (1992) 21 ATC 403 is to some extent inconsistent with the conclusion in para 45 (of SCC) therein. With great respect, it appears to us that the last of the directions clearly runs counter to the constitutional scheme of employment recognised in the earlier part of the decision. Really, it cannot be said that this decision has laid down the law that all ad hoc, temporary or casual employees engaged without following the regular recruitment procedure should be made permanent.
33. It is not necessary to notice all the decisions of this Court on this aspect. By and large what emerges is that regular recruitment should be insisted upon, only in a contingency can an ad hoc appointment be made in a permanent vacancy, but the same should soon be followed by a regular recruitment and that appointments to non-available posts should not be taken note of for regularisation. The cases directing regularisation have mainly proceeded on the basis that having permitted the employee to work for some period, he should be absorbed, without really laying down any law to that effect, after discussing the constitutional scheme for public employment.
43. Thus, it is clear that adherence to the rule of equality in public employment is a basic feature of our Constitution and since the rule of law is the core of our Constitution, a court would certainly be disabled from passing an order upholding a violation of Article 14 or in ordering the overlooking of the need to comply with the requirements of Article 14 read with Article 16 of the Constitution. Therefore, consistent with the scheme for public employment, this Court while laying down the law, has necessarily to hold that unless the appointment is in terms of the relevant rules and after a proper competition among qualified persons, the same would not confer any right on the appointee. If it is a contractual appointment, the appointment comes to an end at the end of the contract, if it were an engagement or appointment on daily wages or casual basis, the same would come to an end when it is discontinued. Similarly, a temporary employee could not claim to be made permanent on the expiry of his term of appointment. It has also to be clarified that merely because a temporary employee or a casual wage worker is continued for a time beyond the term of his appointment, he would not be entitled to be absorbed in regular service or made permanent, merely on the strength of such continuance, if the original appointment was not made by following a due process of selection as envisaged by the relevant rules. It is not open to the court to prevent regular recruitment at the instance of temporary employees whose period of employment has come to an end or of ad hoc employees who by the very nature of their appointment, do not acquire any right. The High Courts acting under Article 226 of the Constitution, should not ordinarily issue directions for absorption, regularisation, or permanent continuance unless the recruitment itself was made regularly and in terms of the constitutional scheme. Merely because an employee had continued under cover of an order of the court, which we have described as ‘litigious employment’ in the earlier part of the judgment, he would not be entitled to any right to be absorbed or made permanent in the service. In fact, in such cases, the High Court may not be justified in issuing interim directions, since, after all, if ultimately the employee approaching it is found entitled to relief, it may be possible for it to mould the relief in such a manner that ultimately no prejudice will be caused to him, whereas an interim direction to continue his employment would hold up the regular procedure for selection or impose on the State the burden of paying an employee who is really not required. The courts must be careful in ensuring that they do not interfere unduly with the economic arrangement of its affairs by the State or its instrumentalities or lend themselves the instruments to facilitate the bypassing of the constitutional and statutory mandates.
”
22. While saying so, however, the Constitution Bench with a view to give some relief to those employees in respect of whom the process of regularisation had been completed and by way of one-time measure, held as under: [Umadevi (3) case (2006) 4 SCC 1]
“53. One aspect needs to be clarified. There may be cases where irregular appointments (not illegal appointments) as explained in S.V Narayanappa AIR 1967 SC 1071, R.N Nanjundappa (1972) 1 SCC 409 and B.N Nagarajan (1979) 4 SCC 507 and referred to in para 15 above, of duly qualified persons in duly sanctioned vacant posts might have been made and the employees have continued to work for ten years or more but without the intervention of orders of the courts or of tribunals. The question of regularisation of the services of such employees may have to be considered on merits in the light of the principles settled by this Court in the cases abovereferred to and in the light of this judgment. In that context, the Union of India, the State Governments and their instrumentalities should take steps to regularise as a one-time measure, the services of such irregularly appointed, who have worked for ten years or more in duly sanctioned posts but not under cover of orders of the courts or of tribunals and should further ensure that regular recruitments are undertaken to fill those vacant sanctioned posts that require to be filled up, in cases where temporary employees or daily wagers are being now employed. The process must be set in motion within six months from this date. We also clarify that regularisation, if any already made, but not sub judice, need not be reopened based on this judgment, but there should be no further bypassing of the constitutional requirement and regularising or making permanent, those not duly appointed as per the constitutional scheme.”
(emphasis in original)
The question which arises for consideration herein is as to whether having regard to the aforementioned law as laid down by the Constitution Bench the respondents herein are entitled to any relief or not.
23. Mr Sanjay R. Hegde, learned counsel appearing on behalf of the appellants and Mr Girish Ananthamurthy, learned counsel appearing on behalf of the respondents, on the other hand, relied upon two orders passed by this Court; one Madanbi v. Director of Horticulture, wherein all appeals have been allowed following Umadevi (2006) 4 SCC 1, whereas in State of Karnataka v. S.K Halappa another Division Bench of this Court directed as under:
“We have perused the order passed by the High Court dated 29-3-2004 whereby the Division Bench has directed that the Government will consider each case independently in accordance with law, within ten weeks from today for regularisation. Suffice it to say that Respondent 1 (herein) was appointed on daily wages and he continued for quite some time and thereafter he filed writ petition before the High Court for regularisation on permanent basis with all consequential benefits. The High Court directed the State to consider the case of Respondent 1 in accordance with law and within 10 weeks.
Aggrieved against this order, the State is in appeal by way of special leave petition. We have heard learned counsel for the parties and perused the record. In our view, the point involved in this appeal has been decided by this Court in State of Karnataka v. Umadevi (3) (2006) 4 SCC 1. The regularisation has now been held to be bad in law. But certain observations have been made in the aforesaid judgment. Therefore, in the fitness of things, we set aside the order of the High Court and remit the matter back to the High Court for fresh consideration in light of the law laid down in Umadevi case (3) (2006) 4 SCC 1.”
24. Our attention has also been drawn to the order dated 9-6-2003 passed by the learned Single Judge of the High Court of Karnataka, Bangalore in Writ Petitions Nos. 10332-42 of 2003 (S-Reg) by Mr Ananthamurthy, which reads as under:
“1. The respondents are directed to consider the cases of the petitioners who have completed ten years of continuous service for regularisation subject to the petitioners fulfilling the eligibility criteria for the posts to which they seek regularisation.
2. In the event of any of the petitioners being found not to have the qualification for regularisation to the post in which they are presently working, they may be considered for regularisation to the next lower post for which they have qualification or they should be given a reasonable time for acquiring the qualification. The respondents may not dispense their services merely on the ground that they do not have necessary qualification.
3. The respondents may also consider the request of the petitioners for extension of regular pay scales applicable to regular employees discharging the same functions, wherever such pay scales are not extended already.
4. The respondents are given three months' time from today to comply with the direction given above.”
25. Interpretation of para 53 in Umadevi case (2006) 4 SCC 1 had come up for consideration before this Court in a large number of decisions. In Employees' Union v. Mineral Exploration Corpn. Ltd. (2006) 6 SCC 310 wherein this Court, while following Umadevi (3) (2006) 4 SCC 1 invoked para 53 of the said decision to opine: (Mineral Exploration case (2006) 6 SCC 310)
“39. We, therefore, direct the Tribunal to decide the claim of the workmen of the Union strictly in accordance with and in compliance with all the directions given in the judgment by the Constitution Bench in State of Karnataka v. Umadevi (3) (2006) 4 SCC 1 and in particular, paras 53 and 12 relied on by the learned Senior Counsel appearing for the Union. The Tribunal is directed to dispose of the matter afresh within 9 months from the date of receipt of this judgment without being influenced by any of the observations made by us in this judgment. Both the parties are at liberty to submit and furnish the details in regard to the names of the workmen, nature of the work, pay scales and the wages drawn by them from time to time and the transfers of the workmen made from time to time, from place to place and other necessary and requisite details. The above details shall be submitted within two months from the date of the receipt of this judgment before the Tribunal.”
26. However, in National Fertilizers Ltd. v. Somvir Singh (2006) 5 SCC 493 this Court held:( and 25-26)
“23. The contention of the learned counsel appearing on behalf of the respondents that the appointments were irregular and not illegal, cannot be accepted for more than one reason. They were appointed only on the basis of their applications. The Recruitment Rules were not followed. Even the Selection Committee had not been properly constituted. In view of the ban on employment, no recruitment was permissible in law. The reservation policy adopted by the appellant had not been maintained. Even cases of minorities had not been given due consideration.
25. Judged by the standards laid down by this Court in the aforementioned decisions, the appointments of the respondents are illegal. They do not, thus, have any legal right to continue in service.
26. It is true that the respondents had been working for a long time. It may also be true that they had not been paid wages on a regular scale of pay. But, they did not hold any post. They were, therefore, not entitled to be paid salary on a regular scale of pay. Furthermore, only because the respondents have worked for some time, the same by itself would not be a ground for directing regularisation of their services in view of the decision of this Court in Umadevi (3) (2006) 4 SCC 1.”
27. In State of M.P v. Lalit Kumar Verma (2007) 1 SCC 575 this Court held:
“20. The decision to implement the judgment was evidently subject to the decision of this Court. But, the special leave petition is barred by limitation. The question, inter alia, which arises for consideration before us is as to whether we should condone the delay or allow the respondent to continue to occupy the permanent post.
21. The legal position somehow was uncertain before the decision rendered by the Constitution Bench of this Court in Umadevi (3) (2006) 4 SCC 1. It has categorically been stated before us that there was no vacant post in the Department in which the respondent could be reinstated. The State had also adopted a policy decision regarding regularisation. The said policy decision also has no application in the case of the respondent. Even otherwise, it would be unconstitutional being hit by Article 16 of the Constitution of India.”
28. In Punjab Water Supply & Sewerage Board v. Ranjodh Singh (2007) 2 SCC 491 this Court held:
“19. In the instant case, the High Court did not issue a writ of mandamus on arriving at a finding that the respondents had a legal right in relation to their claim for regularisation, which it was obligated to do. It proceeded to issue the directions only on the basis of the purported policy decision adopted by the State. It failed to notice that a policy decision cannot be adopted by means of a circular letter and, as noticed hereinbefore, even a policy decision adopted in terms of Article 162 of the Constitution of India in that behalf would be void. Any departmental letter or executive instruction cannot prevail over statutory rule and constitutional provisions. Any appointment, thus, made without following the procedure would be ultra vires.”
29. In Post Master General v. Tutu Das (Dutta) (2007) 5 SCC 317 this Court held as under:
“20. The statement of law contained in para 53 of Umadevi (3) (2006) 4 SCC 1 cannot also be invoked in this case. The question has been considered by this Court in a large number of decisions. We would, however, refer to only a few of them.
21. In Punjab Water Supply & Sewerage Board v. Ranjodh Singh (2007) 2 SCC 491 referring to paras 15, 16 and 53 of Umadevi (3) (2006) 4 SCC 1 this Court observed: (Ranjodh Singh case (2007) 2 SCC 491 paras 17-18)
‘17. A combined reading of the aforementioned paragraphs would clearly indicate that what the Constitution Bench had in mind in directing regularisation was in relation to such appointments, which were irregular in nature and not illegal ones.
18. Distinction between irregularity and illegality is explicit. It has been so pointed out in National Fertilizers Ltd. v. Somvir Singh (2006) 5 SCC 493 in the following terms:
“23. The contention of the learned counsel appearing on behalf of the respondents that the appointments were irregular and not illegal, cannot be accepted for more than one reason. They were appointed only on the basis of their applications. The Recruitment Rules were not followed. Even the Selection Committee had not been properly constituted. In view of the ban on employment, no recruitment was permissible in law. The reservation policy adopted by the appellant had not been maintained. Even cases of minorities had not been given due consideration.
24. The Constitution Bench thought of directing regularisation of the services only of those employees whose appointments were irregular as explained in State of Mysore v. S.V Narayanappa AIR 1967 SC 1071, R.N Nanjundappa v. T. Thimmiah (1972) 1 SCC 409 and B.N Nagarajan v. State of Karnataka (1979) 4 SCC 507 wherein this Court observed: [Umadevi (3) case (2006) 4 SCC 1]
‘16. In B.N Nagarajan v. State of Karnataka (1979) 4 SCC 507 this Court clearly held that the words “regular” or “regularisation” do not connote permanence and cannot be construed so as to convey an idea of the nature of tenure of appointments. They are terms calculated to condone any procedural irregularities and are meant to cure only such defects as are attributable to methodology followed in making the appointments.’
25. Judged by the standards laid down by this Court in the aforementioned decisions, the appointments of the respondents are illegal. They do not, thus, have any legal right to continue in service.” '
(See also State of M.P v. Yogesh Chandra Dubey (2006) 8 SCC 67 and State of M.P v. Lalit Kumar Verma (2007) 1 SCC 575.)”
30. The controversy, if any, in our opinion, has been given a quietus by a three-Judge Bench of this Court in Official Liquidator v. Dayanand (2008) 10 SCC 1, holding:
“75. By virtue of Article 141 of the Constitution, the judgment of the Constitution Bench in State of Karnataka v. Umadevi (3) (2006) 4 SCC 1 is binding on all the courts including this Court till the same is overruled by a larger Bench. The ratio of the Constitution Bench judgment has been followed by different two-Judge Benches for declining to entertain the claim of regularisation of service made by ad hoc/temporary/daily wage/casual employees or for reversing the orders of the High Court granting relief to such employees — Indian Drugs and Pharmaceuticals Ltd. v. Workmen (2007) 1 SCC 408, Gangadhar Pillai v. Siemens Ltd. (2007) 1 SCC 533, Kendriya Vidyalaya Sangathan v. L.V Subramanyeswara (2007) 5 SCC 326 and Hindustan Aeronautics Ltd. v. Dan Bahadur Singh (2007) 6 SCC 207. However, in U.P SEB v. Pooran Chandra Pandey (2007) 11 SCC 92 on which reliance has been placed by Shri Gupta, a two-Judge Bench has attempted to dilute the Constitution Bench judgment by suggesting that the said decision cannot be applied to a case where regularisation has been sought for in pursuance of Article 14 of the Constitution and that the same is in conflict with the judgment of the seven-Judge Bench in Maneka Gandhi v. Union of India (1978) 1 SCC 248.”
31. The Court in Dayanand case (2008) 10 SCC 1 noticed that in U.P SEB v. Pooran Chandra Pandey (2007) 11 SCC 92 this Court held: (Pooran case (2007) 11 SCC 92)
“18. We may further point out that a seven-Judge Bench decision of this Court in Maneka Gandhi v. Union of India (1978) 1 SCC 248 has held that reasonableness and non-arbitrariness is part of Article 14 of the Constitution. It follows that the Government must act in a reasonable and non-arbitrary manner otherwise Article 14 of the Constitution would be violated. Maneka Gandhi case (1978) 1 SCC 248 is a decision of a seven-Judge Bench, whereas Umadevi (3) case (2006) 4 SCC 1 is a decision of a five-Judge Bench of this Court. It is well settled that a smaller Bench decision cannot override a larger Bench decision of the court. No doubt, Maneka Gandhi case (1978) 1 SCC 248 does not specifically deal with the question of regularisation of government employees, but the principle of reasonableness in executive action and the law which it has laid down, in our opinion, is of general application.”
However, the said observations were not called for.
32. The Bench in Dayanand case (2008) 10 SCC 1 noticed several judgments/orders of different Benches taking a view contrary to Umadevi (3) (2006) 4 SCC 1 to opine that those cases were illustrative of non-adherence to the rule of judicial discipline which is sine qua non for sustaining the system. It was opined: (Dayanand case (2008) 10 SCC 1)
“90. We are distressed to note that despite several pronouncements on the subject, there is substantial increase in the number of cases involving violation of the basics of judicial discipline. The learned Single Judges and Benches of the High Courts refuse to follow and accept the verdict and law laid down by coordinate and even larger Benches by citing minor difference in the facts as the ground for doing so. Therefore, it has become necessary to reiterate that disrespect to the constitutional ethos and breach of discipline have grave impact on the credibility of judicial institution and encourages chance litigation. It must be remembered that predictability and certainty is an important hallmark of judicial jurisprudence developed in this country in the last six decades and increase in the frequency of conflicting judgments of the superior judiciary will do incalculable harm to the system inasmuch as the courts at the grass roots will not be able to decide as to which of the judgments lay down the correct law and which one should be followed.
91. We may add that in our constitutional set up every citizen is under a duty to abide by the Constitution and respect its ideals and institutions. Those who have been entrusted with the task of administering the system and operating various constituents of the State and who take oath to act in accordance with the Constitution and uphold the same, have to set an example by exhibiting total commitment to the constitutional ideals. This principle is required to be observed with greater rigour by the members of judicial fraternity who have been bestowed with the power to adjudicate upon important constitutional and legal issues and protect and preserve rights of the individuals and society as a whole. Discipline is sine qua non for effective and efficient functioning of the judicial system. If the courts command others to act in accordance with the provisions of the Constitution and the rule of law, it is not possible to countenance violation of the constitutional principle by those who are required to lay down the law.
92. In the light of what has been stated above, we deem it proper to clarify that the comments and observations made by the two-Judge Bench in U.P SEB v. Pooran Chandra Pandey (2007) 11 SCC 92 should be read as obiter and the same should neither be treated as binding by the High Courts, tribunals and other judicial foras nor they should be relied upon or made basis for bypassing the principles laid down by the Constitution Bench.”
We feel bound by the observations made therein. Initial recruitment of the respondents being wholly illegal and contrary to the constitutional scheme of this country, the impugned judgment of the High Court cannot be upheld. It is set aside accordingly.
33. In the light of the decision in Umadevi (3) (2006) 4 SCC 1 and the interpretation given to para 53 therein by this Court in the abovementioned judgments, the appeals are allowed. However, in the facts and circumstances of the case, there shall be no order as to costs.
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