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Citation Codes
Neutral Citations
2008 INSC 546
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 70 of the Contract Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 12 of the Constitution of India
  • Para 53 of the Constitution Bench decision
  • Section 99 read with Sections 20, 21, 79, 80 and 83 of the Andhra Pradesh Education Act, 1982
  • Section 53 and 12 of the judgment by the Constitution Bench in Secy., State of Karnataka v. Umadevi (3)
  • Articles 14 and 16 of the Constitution of India
  • Article 226 or 32 of the Constitution, Article 142 of the Constitution
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Cites
Cited by
Citation Codes
Neutral Citations
2008 INSC 546
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 70 of the Contract Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 12 of the Constitution of India
  • Para 53 of the Constitution Bench decision
  • Section 99 read with Sections 20, 21, 79, 80 and 83 of the Andhra Pradesh Education Act, 1982
  • Section 53 and 12 of the judgment by the Constitution Bench in Secy., State of Karnataka v. Umadevi (3)
  • Articles 14 and 16 of the Constitution of India
  • Article 226 or 32 of the Constitution, Article 142 of the Constitution
Smart Summary

Factual and Procedural Background

Seven teachers were appointed as Secondary Grade Teachers in the Church of South India Upper Primary Elementary School, a private, minority-run institution. Their appointments were made without complying with the Andhra Pradesh Educational Institutions (Establishment, Recognition, Administration and Control of Schools under Private Managements) Rules, 1993—particularly the requirements of prior permission, public advertisement, notification to the employment exchange and subsequent approval by the District Education Officer (DEO) laid down in G.O. Ms. No. 1 dated 1-1-1994. Because approval was never granted, the teachers did not receive salaries. Their representations were rejected by the DEO on 10-12-1999, prompting them to file writ petitions before the High Court.

A learned Single Judge, citing equitable considerations and Ashok Kumar Yadav v. State of Haryana, set aside the DEO’s rejection and directed payment of salaries. A Division Bench dismissed the State’s intra-court appeal, upholding the Single Judge’s view. The State then appealed to the Supreme Court.

Legal Issues Presented

  1. Whether the State Government is liable to bear the financial burden of paying salaries to teachers appointed by a private minority school without following the mandatory statutory recruitment procedure.
  2. Whether such teachers are entitled to regularisation of their services notwithstanding the procedural violations in their appointments.

Arguments of the Parties

Appellant – State of Andhra Pradesh

  • The appointments lacked statutory compliance and therefore were not approved; the State has no liability to pay salaries.
  • Paragraph 53 of the Constitution Bench judgment in Secy., State of Karnataka v. Umadevi (3) does not apply because the litigation has been pending since 2000.

Respondents – Teachers

  • They were selected through a process the management considered valid, have served for many years and performed satisfactorily.
  • Given the long lapse of time and their continual service, the Supreme Court should refrain from disturbing the High Court’s relief.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ashok Kumar Yadav v. State of Haryana (1985) 4 SCC 417 Court may grant relief if candidates have long continued in service and possess requisite qualifications despite procedural lapses. Relied upon by the High Court; the Supreme Court distinguished and declined to extend the equitable relief against the State.
Secy., State of Karnataka v. Umadevi (3) (2006) 4 SCC 1 Regularisation permissible only for “irregular” (not illegal) appointments meeting conditions in para 53; illegality cannot be ratified. Central to decision; the Court held the teachers’ appointments were illegal, litigation was pending, hence para 53 inapplicable and no regularisation or State liability could arise.
Employees’ Union v. Mineral Exploration Corpn. Ltd. (2006) 6 SCC 310 Illustrates remittal of matters to tribunals for reconsideration in light of Umadevi (3). Cited to show divergent judicial approaches; not followed because appointments here were held illegal.
Municipal Corpn., Jabalpur v. Om Prakash Dubey (2007) 1 SCC 373 Distinction between “irregular” and “illegal” appointments. Quoted to reinforce that total non-compliance with recruitment rules renders appointments illegal.
S.V. Narayanappa AIR 1967 SC 1071; R.N. Nanjundappa (1972) 1 SCC 409; B.N. Nagarajan (1979) 4 SCC 507 Earlier cases explaining circumstances under which irregular appointments may be considered for regularisation. Referred to within para 53 of Umadevi (3); Supreme Court found the present case outside their permissive scope.
Punjab Water Supply & Sewerage Board v. Ranjodh Singh (2007) 2 SCC 491; Punjab State Warehousing Corpn. v. Manmohan Singh (2007) 9 SCC 337; Post Master General v. Tutu Das (Dutta) (2007) 5 SCC 317 Subsequent cases applying the illegal/irregular distinction post-Umadevi (3). Cited illustratively; reaffirm the Court’s approach that illegality cannot be regularised.
Dharwad District PWD Literate Daily Wage Employees’ Assn. v. State of Karnataka (1990) 2 SCC 396 Referenced in Umadevi (3) regarding limits of “equal pay for equal work”. Used to support the conclusion that equitable pay principles cannot override constitutional recruitment mandates.

Court's Reasoning and Analysis

The Supreme Court began by stating that a teacher’s right to salary must stem either from a statutory mandate or a valid contract with the school; the State’s reimbursement obligation arises only when statutory conditions are met. Because the institution ignored every mandatory step under the 1993 Rules—no permission, no advertisement, no notification, no DEO approval—the appointments were not merely “irregular” but illegal, rendering them void and incapable of ratification.

Examining paragraph 53 of Umadevi (3), the Bench held it applies exclusively to cases of “irregular” appointments where no litigation was pending for ten years or more. Here, litigation had been ongoing since 2000 and the appointments themselves violated the constitutional scheme; therefore para 53 could not rescue the respondents. The Court further rejected reliance on the “equal pay for equal work” doctrine, reiterating the Constitution Bench’s caution that this principle cannot justify permanent absorption of illegally appointed personnel.

Acknowledging that the teachers did work, the Court invoked Section 70 of the Contract Act (quasi-contract) to hold that the school management—not the State—must compensate them for services rendered. The doctrine could not, however, be extended against the State, as no statutory or contractual basis existed for such liability.

Holding and Implications

APPEAL ALLOWED IN PART. The Supreme Court set aside the High Court’s direction fastening salary liability on the State. The teachers’ claim for wages lies solely against the school management, which remains free to act in accordance with Umadevi (3). No order as to costs.

Implications: The judgment reaffirms that the State is not financially responsible for salaries arising from appointments made in blatant violation of statutory recruitment procedures. It underscores the post-Umadevi (3) distinction between “irregular” and “illegal” appointments and signals that quasi-contractual relief, if any, must be sought from the appointing private body, not the exchequer. No new precedent is set, but the ruling consolidates existing jurisprudence limiting State liability in education sector employment disputes involving illegal appointments.

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    Government Of Andhra Pradesh And Others v. K. Brahmanandam And Others

    S.B Sinha, J.— Leave granted.

    2. Whether the State or the educational institution is liable to bear the financial burden for payment of wages to the respondents herein concerned is the question involved in this appeal which arises out of a judgment and order dated 25-8-2005 passed by the High Court of Andhra Pradesh in Writ Appeal No. 1321 of 2001.

    3. The respondents, seven in number, were appointed as Secondary Grade Teachers in Church of South India, Upper Primary Elementary School. Allegedly, the provisions of the rules had not been followed in recruiting the teachers. Indisputably, such rules of recruitment had been laid down by GOMs No. 1 dated 1-1-1994. The said rules were framed by the State in exercise of its power conferred upon it under Section 99 read with Sections 20, 21, 79, 80 and 83 of the Andhra Pradesh Education Act, 1982 known as the Andhra Pradesh Educational Institutions (Establishment, Recognition, Administration and Control of Schools under Private Managements) Rules, 1993 (for short “the Rules”).

    4. The Rules categorised several schools; upper primary schools being one of them. The Rules define the “educational agency” in Rule 2(1)(b) to mean “the society/trust/association including endowment, board/wakf board and Christian Mission (church/diocese or congregation) and the like, sponsoring/managing/running the schools”. “Minority educational institution” has been defined in Rule 2(1)(f) of the Rules to mean “any educational agency of which at least 2/3rd members belong to a religious/linguistic minority”.

    5. Rule 7 of the Rules provides for scrutiny and grant of permission on an application filed therefor by the institution in question. Rule 9 provides for the manner in which recognition can be granted. Rule 10 provides for the conditions for grant of permission and recognition. Rule 12 provides for the appointment of staff. Sub-rule (3) of Rule 12 mandates that advertisement for recruitment shall be made at least in two newspapers having large circulation. The employment exchange is also required to be notified in regard to the vacancies. A Staff Selection Committee constituted for undertaking the recruitment process is to consist of a nominee of the District Education Officer not below the rank of Deputy Education Officer. Sub-rule (8) of Rule 12 provides that all appointments should be subject to the approval of the competent authority.

    6. It is stated that the management of the institution, before the recruitment of the respondents, neither obtained any prior permission from the District Education Officer nor made advertisement in two newspapers nor notified the vacancies to the employment exchange. Even no order of approval as regards the said appointments was obtained from the District Education Officer.

    7. The State contends that the selection process had been undergone hurriedly which created a lot of suspicion.

    8. The respondents, however, contend that they were appointed as Secondary Grade Teachers at different places through due selection process and they had been performing their duties to the utmost satisfaction of the authorities of the schools concerned. Indisputably, their salaries had not been paid. They made representations therefor. Their representations were rejected by the District Education Officer by an order dated 10-12-1999.

    9. The respondents thereafter filed writ petitions before the High Court. The State filed a counter-affidavit wherein it was inter alia contended that the respondent-writ petitioners had been appointed through side door(s) by the then Correspondent Rev. Prasad Rao in collusion with the teachers concerned as also the then Education Officer.

    10. A learned Single Judge of the High Court relying on the principles laid down by this Court in Ashok Kumar Yadav v. State of Haryana (1985) 4 SCC 417 as also on the premise that the said respondents have been working for several years and as furthermore they possessed minimum qualification, held that only because the procedural aspects had not been followed as per the said GOMs No. 1 dated 1-1-1994 and other directions from time to time, the same would not be a bar for grant of relief in their favour, stating:

    “In my considered view, the same principle will also apply to the facts of this case. Admittedly, the petitioners are continuing in service for more than eight years and it would be inequitable to disturb them at this distance of time.”

    11. On an intra-court appeal having been filed, a Division Bench of the said Court dismissed the appeal, stating:

    “The main grievance of the respondents is that though they were appointed as Secondary Grade Teachers, through due selection process, neither their appointments were approved nor were they paid any salary till date. In earlier round of litigation, in WP No. 9616 of 1995, this Court directed the authorities concerned to consider the proposals sent by the management on 1-4-1996 and take appropriate decision. In pursuance thereof, the fourth appellant passed orders on 10-12-1999 rejecting the cases for approval. The case of the respondents is that they have put up sufficient length of service. The learned Single Judge placed reliance on the judgment cited supra and held that it would be unjust to disturb the respondents after eight years of service and accordingly set aside the impugned order passed by the fourth appellant. In the above background of the case, we are of the opinion that the learned Single Judge has arrived at a just conclusion and the same, in our considered opinion, deserves no interference.”

    12. Mr R. Sundaravardan, learned Senior Counsel appearing on behalf of the appellants, would submit that the State has no liability to pay the salary of the teachers concerned keeping in view the fact that their services had not been approved. The learned counsel would further contend that it is not even a case where para 53 of the Constitution Bench decision of this Court in Secy., State of Karnataka v. Umadevi (3) (2006) 4 SCC 1 would apply.

    13. Mr G. Ramakrishna Prasad, learned counsel appearing on behalf of the respondents, on the other hand, would contend that in view of the passage of time and particularly in view of the fact that the respondents had been continuing to work for a long time, this Court should not interfere with the impugned judgment.

    14. The liability of the State to pay salary to a teacher appointed in the recognised schools would arise provided the provisions of the statutory rules are complied with, subject to just exception. The right to claim salary must arise under a contract or under a statute. If such a right arises under a contract between the appointee and the institution, only the latter would be liable therefor. Its right in certain situation to claim reimbursement of such salary from the State would only arise in terms of the law as was prevailing at the relevant time. If the State in terms of the statute is not liable to pay the salary to the teachers, no legal right accrues in favour of those who had been appointed in violation of mandatory provisions of the statute or statutory rules.

    15. The equality clause contained in Articles 14 and 16 of the Constitution of India, it is trite, must be scrupulously followed. The court ordinarily would not issue a writ of or in the nature of mandamus for regularisation of the service of the employee which would be violative of the constitutional scheme.

    16. Appointments made in violation of the mandatory provisions of a statute would be illegal and, thus, void. Illegality cannot be ratified. Illegality cannot be regularised, only an irregularity can be.

    17. The said legal principle has been enunciated by a Constitution Bench of this Court in Umadevi (3) (2006) 4 SCC 1, para 53 whereof reads as under:

    “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 supplied)

    18. We are not unmindful of the fact that the said paragraph has been interpreted differently by different Benches. Some Benches have remitted the matter back to the tribunal/authorities for consideration of the matter afresh in the light of the said observations e.g in Employees' Union v. Mineral Exploration Corpn. Ltd. (2006) 6 SCC 310, it was directed:

    “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 Secy., 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.”

    19. On the other hand, in some of the cases, the said paragraph, for example, in the decision of this Court in Municipal Corpn., Jabalpur v. Om Prakash Dubey (2007) 1 SCC 373 had been applied to the following effect:

    “11. The question which, thus, arises for consideration, would be: Is there any distinction between ‘irregular appointment’ and ‘illegal appointment’? The distinction between the two terms is apparent. In the event the appointment is made in total disregard of the constitutional scheme as also the recruitment rules framed by the employer, which is State within the meaning of Article 12 of the Constitution of India, the recruitment would be an illegal one; whereas there may be cases where, although, substantial compliance with the constitutional scheme as also the rules have been made, the appointment may be irregular in the sense that some provisions of the rules might not have been strictly adhered to.”

    [See also Punjab Water Supply & Sewerage Board v. Ranjodh Singh (2007) 2 SCC 491, Punjab State Warehousing Corpn. v. Manmohan Singh (2007) 9 SCC 337, (2007) 3 Scale 401 and Post Master General v. Tutu Das (Dutta) (2007) 5 SCC 317, (2007) 6 Scale 453.]

    20. In the light of the decision of this Court in Umadevi (3) (2006) 4 SCC 1, para 53 thereof would be applicable subject to the condition that the matter had not been pending before any court or tribunal. Indisputably, the litigation between the parties was pending since January 2000. The institution's application for approval of the said appointments had been rejected. Therefore, para 53 of Umadevi (3) (2006) 4 SCC 1 has no application.

    21. Even in relation to application of the concept of equal pay for equal work, the Constitution Bench held: [Umadevi (3) case (2006) 4 SCC 1]

    “44. The concept of ‘equal pay for equal work’ is different from the concept of conferring permanency on those who have been appointed on ad hoc basis, temporary basis, or based on no process of selection as envisaged by the rules. This Court has in various decisions applied the principle of equal pay for equal work and has laid down the parameters for the application of that principle. The decisions are rested on the concept of equality enshrined in our Constitution in the light of the directive principles in that behalf. But the acceptance of that principle cannot lead to a position where the court could direct that appointments made without following the due procedure established by law, be deemed permanent or issue directions to treat them as permanent. Doing so, would be negation of the principle of equality of opportunity. The power to make an order as is necessary for doing complete justice in any cause or matter pending before this Court, would not normally be used for giving the go-by to the procedure established by law in the matter of public employment. Take the situation arising in the cases before us from the State of Karnataka. Therein, after Dharwad decision (1990) 2 SCC 396, (1990) 12 ATC 902 the Government had issued repeated directions and mandatory orders that no temporary or ad hoc employment or engagement be given. Some of the authorities and departments had ignored those directions or defied those directions and had continued to give employment, specifically interdicted by the orders issued by the executive. Some of the appointing officers have even been punished for their defiance. It would not be just or proper to pass an order in exercise of jurisdiction under Article 226 or 32 of the Constitution or in exercise of power under Article 142 of the Constitution permitting those persons engaged, to be absorbed or to be made permanent, based on their appointments or engagements. Complete justice would be justice according to law and though it would be open to this Court to mould the relief, this Court would not grant a relief which would amount to perpetuating an illegality.”

    22. In view of the decision in Umadevi (3) (2006) 4 SCC 1, we are of the opinion that the question of regularising the services of the respondents does not arise. The respondent-writ petitioners (teachers), however, are entitled to salary from the school authorities as they have worked even if no valid contract had come into being. The salary amount would be payable in terms of Section 70 of the Contract Act. The principles of quasi-contract, however, must apply keeping in view the relationship between the parties. The doctrine of quasi-contract cannot be applied in a situation of this nature as against the State.

    23. For the reasons aforementioned, the appeal is allowed to the aforementioned extent. It would, however, be open to the school authorities to take such action, as it may deem fit and proper, in the light of the decision of this Court in Umadevi (3) (2006) 4 SCC 1. No costs.

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    Government Of Andhra Pradesh And Others v. K. Brahmanandam And Others
    (Apr 29, 2008)