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Judgment Summary — Navin Sinha, J.

Factual and Procedural Background

The appeal arises from an order dated 26.9.2012 in MJC No. 930 of 2012 which disposed the matter with certain directions. The respondent had earlier filed CWJC No. 8883 of 1996, which was disposed on 21.11.2008. In that writ petition the respondent sought regularisation, alleging service on daily wage from 8.2.1989 to 5.5.2001. The principal basis of the claim was an asserted agreement between the State Government and Drivers in the district of Madhubani that those possessing the requisite qualification and who had worked for 240 days would be regularised; eleven persons were stated to have been regularised on that footing.

The respondent challenged an administrative decision dated 23.6.2011 that declined his regularisation. The High Court had remanded the matter to the Collector, Madhubani to determine vacancy in the year 1996 and to consider regularisation if vacancies in the general category were available when other similarly situated persons had been regularised. Subsequently, in contempt proceedings founded on alleged non-compliance, directions were given to consider regularisation according to seniority rather than category of vacancy.

Two interlocutory applications were filed in the present appeal: I.A. No. 2059 of 2013 to condone a delay of approximately 131 days, and I.A. No. 2060 of 2013 seeking a stay of the operation of the judgment under appeal. The court condoned the delay and, having taken up the appeal for final disposal, declined to pass a separate order on the stay application.

Legal Issues Presented

  1. Whether the Letters Patent Appeal (LPA) under the High Court's intra-court jurisdiction was maintainable against orders made in contempt proceedings (i.e., whether remedy lay only by way of an appeal under Section 19 of the Contempt of Courts Act where orders were made in the jurisdiction under Article 215 of the Constitution).
  2. Whether completion of 240 days of service (and reliance on a district-level agreement) constituted a legally sufficient ground for regularisation of employment.
  3. Whether directions for regularisation given on 21.11.2008 could stand in view of the Supreme Court's ruling in Secretary, State of Karnataka v. Uma Devi (2006), which changed the law on regularisation.

Arguments of the Parties

Appellant's Arguments

  • Counsel for the appellant relied on the decision in Midnapore Peoples' Co-op. Bank Ltd. v. Chunilal Nanda (2006) to contend that where a High Court in contempt proceedings decides issues or makes directions related to the merits, such orders are open to challenge by an intra-court appeal (or by SLP under Article 136 in other cases), supporting the maintainability of the LPA in the present case.

Respondent's Arguments

  • A preliminary objection was raised that against an order passed in the jurisdiction under Article 215 of the Constitution the appropriate remedy lies under Section 19 of the Contempt of Courts Act and therefore the present LPA was not maintainable.
  • The respondent's counsel also contended that the respondent had been appointed against a regular sanctioned vacant post and had completed 240 days of service, satisfying the requirements relied upon for regularisation.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Midnapore Peoples' Co-op. Bank Ltd. v. Chunilal Nanda, (2006) 5 SCC 399; AIR 2006 SC 2190 Where a High Court in contempt proceedings decides an issue or makes directions relating to the merits, the aggrieved person may challenge such an order by intra-court appeal (if available) or by Special Leave to Appeal under Article 136. The court quoted paragraph 11(v) of this decision to address the maintainability objection and to support the proposition that orders impinging on merits in contempt proceedings are challengeable within the court's appellate framework.
Dhampur Sugar Mills Ltd. v. Bhola Singh, (2005) 2 SCC 470 Discusses limits of entitlement arising from short-duration or daily-wage service; used regarding whether completion of 240 days can be relied upon for regularisation. The court relied on the discussion in this case to reject the submission that completion of 240 days of service alone constitutes a ground for regularisation.
Secretary, State of Karnataka v. Uma Devi, (2006) 4 SCC 1 Established a substantive change in the law on regularisation, holding that directions or judgments contrary to its principles are rendered ineffective ("denuded"). The court held that after Uma Devi the law on regularisation had undergone substantive change and that directions for regularisation given after that pronouncement could not stand; the court treated Uma Devi as the controlling authority on the subject.
Ram Sewak Yadav v. The State of Bihar, 2013 (1) PLJR 964 (Full Bench of this Court) Considered and discussed the law on regularisation in the light of Uma Devi and subsequent interpretations, confirming the effect of Uma Devi. The court noted the Full Bench's consideration of the entire law and relied on it to support the conclusion that directions for regularisation given after Uma Devi were not sustainable.

Court's Reasoning and Analysis

The court proceeded in a sequence of analytical steps:

  1. Interlocutory applications: The court condoned the delay of approximately 131 days (I.A. No. 2059 of 2013). Because the appeal was being taken up for final disposal, no separate order was made on the stay application (I.A. No. 2060 of 2013).
  2. Factual review: The court examined the record of CWJC No. 8883 of 1996 (placed before it) and observed that the respondent's claim for engagement relied on a certificate dated 30.6.1990 stating he was working on daily wage. The court found no pleading that the respondent had been appointed to a sanctioned vacant post through a process consistent with Article 14 (i.e., by competitive selection).
  3. Maintainability issue: Addressing the preliminary objection that the LPA was not maintainable because the proper remedy lay under Section 19 of the Contempt of Courts Act for orders made in the jurisdiction under Article 215, the court relied on Midnapore Peoples' Co-op. Bank Ltd. v. Chunilal Nanda to observe that where a High Court, in contempt proceedings, decides matters relating to the merits or makes directions on the merits, such orders are challengeable by intra-court appeal or SLP under Article 136. The citation was used to deal with the objection to the maintainability of the LPA.
  4. Merits — 240 days argument: The court rejected the contention that completion of 240 days of service by itself justified regularisation. It observed that while 240 days might be relevant for certain purposes under the Industrial Disputes Act, it does not constitute a ground for regularisation. The court referred to the discussion in Dhampur Sugar Mills Ltd. v. Bhola Singh in support of this conclusion.
  5. Legal landscape on regularisation: The court emphasized that the law on regularisation had been substantively altered by the Supreme Court's decision in Secretary, State of Karnataka v. Uma Devi (2006). It further noted that a Full Bench of this Court in Ram Sewak Yadav v. State of Bihar (2013) had reviewed the law comprehensively, confirming that judgments and directions contrary to Uma Devi were effectively denuded. Applying this principle, the court concluded that the direction for regularisation given on 21.11.2008 could not have been valid after Uma Devi.
  6. Conclusion based on the above: Because the material did not show appointment to a sanctioned vacant post through a process consonant with Article 14, and because post-Uma Devi law forbids the kind of regularisation ordered, the court set aside the impugned order.

Holding and Implications

The appeal is allowed and the order under appeal dated 26.7.2012 is set aside.

Implications:

  • Direct effect: The directions for regularisation (issued in the proceedings under review) are vacated as impermissible in light of the governing law on regularisation as articulated in Secretary, State of Karnataka v. Uma Devi and as considered by the Full Bench in Ram Sewak Yadav.
  • Legal precedent: The court applied existing Supreme Court authority (Uma Devi) and this court's Full Bench treatment (Ram Sewak Yadav) to resolve the matter; the opinion does not announce any new legal principle beyond applying those authorities.

This summary is prepared strictly from the contents of the provided opinion and does not add or infer facts beyond those present in the text.

    The State Of Bihar & Ors. v. Pawan Kumar Singh .

    Navin Sinha, J.:— Heard learned Counsel for the appellants and the respondent.

    2. I.A No. 2059 of 2013 has been filed for condoning the delay of approximately 131 days in filing of the appeal. I.A No. 2060 of 2013 for stay of the operation of the judgment under appeal. We have heard Counsel for the parties and are satisfied to condone the delay. Since we are taking up the appeal for final orders no separate order need be passed on the stay application.

    3. The present appeal arises out of order dated 26.9.2012 passed in MJC No. 930 of 2012 disposing it with certain directions. The respondent had originally filed CWJC No. 8883 of 1996 disposed on 21.11.2008 The relief sought had been for regularisation on the pleas that he had worked on daily wage from 8.2.1989 to 5.5.2001 The sheet anchor of the claim was an agreement stated to have been reached between the State Government and the Drivers in the district of Madhubani with regard to those who possess requisite qualification and had worked for 240 days. Eleven are said to have been regularised. The respondent challenged the decision dated 23.6.2011 declining regularisation to him. The Court remanded the matter to the Collector, Madhubani for determining vacancy in the year 1996 and to consider regularisation if vacancy in the general category were available when other similarly situated are stated to have been regularised. In the contempt application arising out of the alleged non-compliance, directions were given to consider for regularisation as per seniority and not category of vacancy.

    4. Learned Counsel for the respondents raised a preliminary objection that remedy for the appellant against the order passed in the jurisdiction under Article 215 of the Constitution only lies in an appeal under Section 19 of the Contempt of Courts Act and the present LPA under the Letters Patent Appellate Jurisdiction of this Court was not maintainable.

    5. We can do no better than quote paragraph 11(v) of (2006) 5 SCC 399 : AIR 2006 SC 2190 (Midnapore Peoples' Co-op. Bank Ltd. v. Chunilal Nanda) relied upon by Counsel for the appellant:—

    “11(v). If the High Court, for whatsoever reason, decides an issue or makes any direction, relating to the merits of the dispute between the parties, in a contempt proceedings, the aggrieved Page: 242person is not without remedy. Such an order is open to challenge in an intra-court appeal (if the order was of a learned Single Judge and there is a provision for an intra-court appeal), or by seeking special leave to appeal under Article 136 of the Constitution of India (in other cases).”

    6. Learned Counsel for the respond ent submitted that he was appointed against regular sanctioned, vacant post and had completed 240 days in service according to the requirement of the appellants. This argument does not appeal to us. Completion of 240 days in service may be valid for certain purpose under the Industrial Disputes Act but it does not constitute any ground for regularisation. This discussion need not hold us further in view of the consideration in (2005) 2 SCC 470 (Dhampur Sugar Mills Ltd. v. Bhola Singh) on this aspect.

    7. We requested Counsel for the respondent to place before us for perusal copy of CWJC No. 8883 of 1996. On going through the same we find that the claim for engagement was based on certificate dated 30.6.1990 that he was working on daily wage. Apart from the same there is no pleading that the respondent was appointed on a vacant and sanctioned post by a process in consonance with Article 14 of the Constitution through a competitive selection process.

    8. The law on regularisation underwent a substantive change with the pronouncement in Secretary, State of Karrcataka v. Uma Devi, (2006) 4 SCC 1 : [2006 (2) PLJR (SC) 363].

    9. In 2013 (1) PLJR 964 (Ram Sewak Yadav v. The State of Bihar) a Full Bench of this Court has considered and discussed the entire law on this aspect including the decision that emerges from the Constitution Bench judgment referred to above and the interpretation of the same in subsequent judgments also. In Uma Devi (supra) it has been specifically held that all other judgments and directions contrary to this stands denuded. The present direction for regularisation could not have been given on 21.11.2008 after pronouncement in Uma Devi (supra).

    10. The order under appeal dated 26.7.2012 is set aside. The appeal stands allowed.

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    Comments

    The State Of Bihar & Ors. v. Pawan Kumar Singh .
    (Jun 25, 2013)