The Bakhra Beas Management Board and Ors. Vs Gopal Singh and Ors.

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

(109+248)
1. LPA-635-2024(O&M) Date o	f Decision: 20.07.2026
The Bhakhra Beas Management Board & Ors. Versus	--Appellants
Gopal Singh & others	--Respondents
2. LPA-664-2024(O&M)
The Bhakhra Beas Management Board & Ors. Versus	--Appellants
Kirandeep Singh & others	--Respondents
3. LPA-673-2024(O&M)
The Bhakhra Beas Management Board & Ors. Versus	--Appellants
Jarnail Singh & others	--Respondents
4. LPA-682-2024(O&M)
The Bhakhra Beas Management Board & Ors. Versus	--Appellants
Jitender Singh Sahota & others	--Respondents
5. LPA-713-2024(O&M)
The Bhakhra Beas Management Board & Ors. Versus	--Appellants
Amritpal Singh & others	--Respondents
6. LPA-721-2024(O&M)
The Bhakhra Beas Management Board Versus	--Appellant
Arun Singh & others	--Respondents
7. LPA-723-2024(O&M)
The Bhakhra Beas Management Board & Ors. Versus	--Appellants
Jagseer Ram & others	--Respondents

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LPA-635-2024(O&M) & connected appeals -2-

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8. LPA-729-2024(O&M) The Bhakhra Beas Management Board & Ors. --Appellants

Versus

Sunil Dutt & others

--Respondents

9. LPA-730-2024(O&M) The Bhakhra Beas Management Board & Ors. --Appellants

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Versus

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Harinder Singh & others --Respondents 10. LPA-735-2024(O&M) The Bhakhra Beas Management Board & Ors. --Appellants Versus Rajesh Kumar & others --Respondents 11. LPA-756-2024(O&M) The Bhakhra Beas Management Board & Ors. --Appellants Versus

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Neeraj & others --Respondents

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12. LPA-759-2024(O&M)

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The Bhakhra Beas Management Board & Ors.

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--Appellants

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Versus

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Sandeep Kumar & others --Respondents

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13. LPA-719-2024(O&M)

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The Bhakhra Beas Management Board & Ors. --Appellants

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Versus

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Jagtar Singh & others --Respondents

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14. LPA-727-2024(O&M)

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The Bhakhra Beas Management Board & Ors. --Appellants

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Versus

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Ranbir Singh Chauhan & others --Respondents

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CORAM:- HON'BLE MR. JUSTICE HARSIMRAN SINGH SETHI. HON'BLE MR. JUSTICE AMARINDER SINGH GREWAL.

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Present:Mr. Rajesh Garg, Sr. Advocate with Ms. Neha Matharoo, Advocate and Mr. Mandeep Singh, Advocate for the appellant(s).

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Mr. R.K. Arora, Sr. Advocate with Mr. Jugam Arora, Advocate and

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LPA-635-2024(O&M) & connected appeals

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-3-

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Mr. Shivam Ahuja, Advocate for the respondents in LPA Nos.635, 682 and 759 of 2024.

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Mr. Shobit Phutela, Advocate with Ms. Arundhati, Advocate for respondents in LPA-730-2024.

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Mr. Rahul Rampal, Addl. A.G., Punjab.

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Ms. Anju Arora, Advocate for respondents in LPA-723-2024.

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HARSIMRAN SINGH SETHI.J (Oral)

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In the present bunch of appeals, the challenge is to the orders passed by the learned Single Judge vide order dated 15.11.2023 in CWP9237-2023 by which, the direction has been given to the appellants to consider and regularize the services of the respondents herein (writ petitioners before the learned Single Judge), keeping in view the fact that they have already worked for more than a decade.

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It may be noticed that Centralized Staff Selection Committee issued an advertisement inviting applications for recruitment to various posts vide Advertisement No.2/2014, which fell under the Class-III and Class-IV category. The respondents herein applied in pursuance to the said advertisement and after considering the claim of all eligible candidates, they were selected and ultimately appointed on contract basis. The said contract has been extended from time to time and even as of now the respondents are performing the duties with the appellants.

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Further it may be noticed that the Bhakhra Beas Management Board (hereinafter to be referred to as the 'Board') is being financed by the States of Punjab, Haryana, Himachal Pradesh and Rajasthan and till such LUCKY States which are financing the working of the Board agree, any decision 2026.07.28 15:47 I attest to the accuracy and authenticity of this order/judgement High Court chandigarh

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which has financial implications, the same cannot be decided without sorting the said issue raised by any of the State financing the Board.

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After rendering nearly about decade of service, the employees approached this Court for regularization of their services on the ground that their initial appointment was not illegal but irregular and therefore such irregular appointments should be regularized keeping in view the directions given by the Hon'ble Supreme Court of India in Secretary, State of Karnataka and Others Vs. Umadevi (3) and others (2006) 4 SCC 1 and that they should be treated as regular employees for all intents and purposes.

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The learned Single Judge has considered the said prayer and a direction has been issued to regularize such employees who have worked for the last more than 12 years up to now. 6. The Board is before this Court in appeal to challenge the direction given by the learned Single Judge for regularizing the services of such employees/respondents, as covered by the judgement in Umadevi's case (supra), and contend that instructions issued by the Govt. of Punjab, which were being followed by Punjab State Power Corporation Ltd., cannot be made applicable for regularization of the service of the respondent employees.

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It is further argued by the learned senior counsel appearing on behalf of the appellants-Board that any instructions which have been issued by any of the State who is funding the Board, cannot be made applicable ipso facto to the employees of the Board and the Board has to have its own policy for regularization which can only be done in case all the participating States agree to the same and in fact in the present case, the State of Punjab has objected to the same on the ground of financial liability, hence the

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direction given by the learned Single Judge is liable to be set aside.

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Learned counsels appearing on behalf of respondents submit that as per the settled principle of law which exists now, any employee who has rendered more than 10 years of service and is continuing in such service, is entitled to be considered for regularization keeping in view the interpretation given by the Constitution Bench of Hon'ble Supreme Court of India in Umadevi's case (supra).

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Learned counsels appearing on behalf of the respondentsemployees submit that the contention that the State funding the Board would have to bear additional financial expenses and has raised objections qua the relief of regularization of services, cannot be accepted and the same cannot be made a ground to deny the benefit as per the settled principle of law, especially when such employees are entitled for regularization of their services even if the employer does not have any regularization policy.

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Learned counsels for respondents further argue that the order passed by the learned Single Judge is perfectly valid and legal, the law on the same issue has further been crystalized by the Hon'ble Supreme Court of India in Jaggo Versus Union of India and others, 2024 INSC 1034, Shripal and another v. Nagar Nigam, Ghaziabad, 2025 INSC 144 and Dharam Singh and others v. State of U.P. and another , whereby the Hon'ble Apex Court ruled in favour of regularizing long-term, temporary or ad hoc employees. The Court determined that denying job permanency to workers, who perform continuous, essential duties, for over a decade is exploitative and discriminatory.

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We have heard learned senior counsels appearing on behalf of the respective parties and have gone through the records.

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As mentioned earlier, the posts against which the respondentsemployees were appointed, were not only advertised but were filled, though, on contractual basis, after considering the claim of all eligible candidates and after scrutinizing such candidates/appointees fulfilled the requisites of the posts against which they had been appointed. Once the claim of all eligible candidates was considered and scrutinized before appointment of the employees/respondents, it cannot be said the respondents, who are working on such service and seeking regularization of their posts from the appellants, were seeking back door entries so as to speed march over the others, who were waiting to get appointment against the posts against which the respondents employees were selected and appointed.

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The question which arises is whether after rendering 12 years of service, such employees are entitled for regularization keeping in view the law as it exists now.

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Hon'ble Supreme Court of India recently in Jaggo's case (supra) held that where the State/an authority appoints an employee on contractual or temporary basis and allows such employee to continue on such post on temporary basis for a period of one decade or more, such employer has a responsibility and liability to regularize the services of such employees and such employer cannot keep the employees working on temporary basis be unregularized despite there being an existence of requirement of their duties to be discharged in the institution. The relevant paragraphs of judgement are as under:-

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“ 22. The pervasive misuse of temporary employment contracts, as exemplified in this case, reflects a broader systemic issue that adversely affects workers' rights and job security. In the private sector, the rise of the gig

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economy has led to an increase in precarious employment arrangements, often characterized by lack of benefits, job security, and fair treatment. Such practices have been criticized for exploiting workers and undermining labour standards. Government institutions, entrusted with upholding the principles of fairness and justice, bear an even greater responsibility to avoid such exploitative employment practices. When public sector entities engage in misuse of temporary contracts, it not only mirrors the detrimental trends observed in the gig economy but also sets a concerning precedent that can erode public trust in governmental operations.

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25. It is a disconcerting reality that temporary employees, particularly in government institutions, often face multifaceted forms of exploitation. While the foundational purpose of temporary contracts may have been to address short-term or seasonal needs, they have increasingly become a mechanism to evade long-term obligations owed to employees. These practices manifest in several ways:

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Misuse of “Temporary” Labels:

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Employees engaged for work that is essential, recurring, and integral to the functioning of an institution are often labelled as “temporary” or “contractual,” even when their roles mirror those of regular employees. Such misclassification deprives workers of the dignity, security, and benefits that regular employees are entitled to, despite performing identical tasks. Arbitrary Termination: Temporary employees are frequently dismissed without cause or notice, as seen in the present case. This practice undermines the principles of natural justice and subjects workers to a state of constant insecurity, regardless of the quality or duration of their service.

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• Lack of Career Progression: Temporary employees often find themselves excluded from opportunities for skill development, promotions, or incremental pay raises. They

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remain stagnant in their roles, creating a systemic disparity between them and their regular counterparts, despite their contributions being equally significant.

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• Using Outsourcing as a Shield: Institutions increasingly resort to outsourcing roles performed by temporary employees, effectively replacing one set of exploited workers with another. This practice not only perpetuates exploitation but also demonstrates a deliberate effort to bypass the obligation to offer regular employment.

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• Denial of Basic Rights and Benefits: Temporary employees are often denied fundamental benefits such as pension, provident fund, health insurance, and paid leave, even when their tenure spans decades. This lack of social security subjects them and their families to undue hardship, especially in cases of illness, retirement, or unforeseen circumstances.”” 12. We also note the Commission’s affidavit filed in 21.04.2025 pursuant to the order of this Court dated 27.03.2025, wherein reference has been made to a supervening reorganisation in 2024, whereby the U.P. Higher Education Services Commission was merged into the U.P. Education Services Selection Commission and, by a Government Order of 05.07.2024, certain Group-C posts were sanctioned while Class-IV/Driver requirements were proposed to be met through outsourcing. We must point out however, that supervening structural change cannot extinguish accrued claims or pending proceedings. The successor body steps into the shoes of its predecessor subject to liabilities and obligations arising from the prior regime. More fundamentally, a later policy to outsource Class- IV/Driver functions cannot retrospectively validate earlier arbitrary refusals, nor can it be invoked to deny consideration to workers on whose continuous services the establishment relied for decades.

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13. As we have observed in both Jaggo (Supra) and Shripal (Supra), outsourcing cannot become a convenient shield to perpetuate precariousness and to sidestep fair engagement

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practices where the work is inherently perennial. The Commission’s further contention that the appellants are not “fulltime” employees but continue only by virtue of interim orders also does not advance their case. That interim protection was granted precisely because of the long history of engagement and the pendency of the challenge to the State’s refusals. It neither creates rights that did not exist nor erases entitlements that may arise upon a proper adjudication of the legality of those refusals.

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14. The learned Single Judge of the High Court also declined relief on the footing that the petitioners had not specifically assailed the subsequent decision dated 25.11.2003. However, that view overlooks that the writ petition squarely challenged the 11.11.1999 refusal as the High Court itself directed a fresh decision during pendency, and the later rejection was placed on record by the respondents. In such circumstances, we believe that the High Court was obliged to examine the legality of the State’s stance in refusing sanction, whether in 1999 or upon reconsideration in 2003, rather than dispose of the matter on a mere technicality. The Division Bench of the High Court compounded the error by affirming the dismissal without engaging with the principal challenge or the intervening material. The approach of both the Courts, in reducing the dispute to a mechanical enquiry about “rules” and “vacancy” while ignoring the core question of arbitrariness in the State’s refusal to sanction posts despite perennial need and long service, cannot be sustained.

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15. Therefore, in view of the foregoing observations, the impugned order of the High Court cannot be sustained. The State’s refusals dated 11.11.1999 and 25.11.2003, in so far as they concern the Commission’s proposals for sanction/creation of Class-III/Class-IV posts to address perennial ministerial/attendant work, are held unsustainable and stand quashed.

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16. The appeal must, accordingly, be allowed.

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17. Before concluding, we think it necessary to recall that the State (here referring to both the Union and the State governments) is not a mere market participant but a constitutional employer. It cannot balance budgets on the backs of those who perform the most basic and recurring public functions. Where work recurs day after day and year after year, the establishment must reflect that reality in its sanctioned strength and engagement practices. The long-term extraction of regular labour under temporary labels corrodes confidence in public administration and offends the promise of equal protection. Financial stringency certainly has a place in public policy, but it is not a talisman that overrides fairness, reason and the duty to organise work on lawful lines.

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18. Moreover, it must necessarily be noted that “ad-hocism” thrives where administration is opaque. The State Departments must keep and produce accurate establishment registers, muster rolls and outsourcing arrangements, and they must explain, with evidence, why they prefer precarious engagement over sanctioned posts where the work is perennial. If “constraint” is invoked, the record should show what alternatives were considered, why similarly placed workers were treated differently, and how the chosen course aligns with Articles 14 , 16 and 21 of the Constitution of India. Sensitivity to the human consequences of prolonged insecurity is not sentimentality. It is a constitutional discipline that should inform every decision affecting those who keep public offices running.

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19. Having regard to the long, undisputed service of the appellants, the admitted perennial nature of their duties, and the material indicating vacancies and comparator regularisations, we issue the following directions: i. Regularization and creation of Supernumerary posts: All appellants shall stand regularized with effect from 24.04.2002, the date on which the High Court directed a fresh recommendation by the Commission and a fresh decision by

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the State on sanctioning posts for the appellants. For this purpose, the State and the successor establishment (U.P. Education Services Selection Commission) shall create supernumerary posts in the corresponding cadres, Class-III (Driver or equivalent) and Class-IV (Peon/Attendant/Guard or equivalent) without any caveats or preconditions. On regularization, each appellant shall be placed at not less than the minimum of the regular pay-scale for the post, with protection of last-drawn wages if higher and the appellants shall be entitled to the subsequent increments in the pay scale as per the pay grade. For seniority and promotion, service shall count from the date of regularization as given above. ii. Financial consequences and arrears: Each appellant shall be paid as arrears the full difference between (a) the pay and admissible allowances at the minimum of the regular paylevel for the post from time to time, and (b) the amounts actually paid, for the period from 24.04.2002 until the date of regularization /retirement/death, as the case may be. Amounts already paid under previous interim directions shall be so adjusted. The net arrears shall be released within three months and if in default, the unpaid amount shall carry compound interest at 6% per annum from the date of default until payment.

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iii. Retired appellants: Any appellant who has already retired shall be granted regularization with effect from 24.04.2002 until the date of superannuation for pay fixation, arrears under clause (ii), and recalculation of pension, gratuity and other terminal dues. The revised pension and terminal dues shall be paid within three months of this Judgement.

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iv. Deceased appellants: In the case of Appellant No. 5 and any other appellant who has died during pendency, his/her legal representatives on record shall be paid the arrears under clause (ii) up to the date of death, together with all terminal/retiral dues recalculated consistently with clause (i), within three months of this Judgement.

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v. Compliance affidavit: The Principal Secretary, Higher Education Department, Government of Uttar Pradesh, or the Secretary of the U.P. Education Services Selection Commission or the prevalent competent authority, shall file an affidavit of compliance before this Court within four months of this Judgement.

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26. While the judgment in Uma Devi (supra) sought to curtail the practice of back door entries and ensure appointments adhered to constitutional principles, it is regrettable that its principles are often misinterpreted or misapplied to deny legitimate claims of long-serving employees. This judgment aimed to distinguish between “illegal” and “irregular” appointments. It categorically held that employees in irregular appointments, who were engaged in duly sanctioned posts and had served continuously for more than ten years, should be considered for regularization as a one-time measure. However, the laudable intent of the judgment is being subverted when institutions rely on its dicta to indiscriminately reject the claims of employees, even in cases where their appointments are not illegal, but merely lack adherence to procedural formalities. Government departments often cite the judgment in Uma Devi (supra) to argue that no vested right to regularization exists for temporary employees, overlooking the judgment's explicit acknowledgment of cases where regularization is appropriate. This selective application distorts the judgment's spirit and purpose, effectively weaponizing it against employees who have rendered indispensable services over decades.

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27. In light of these considerations, in our opinion, it is imperative for government departments to lead by example in providing fair and stable employment. Engaging workers on a temporary basis for extended periods, especially when their roles are integral to the organization's functioning, not only contravenes international labour standards but also exposes the organization to legal challenges and undermines employee

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morale. By ensuring fair employment practices, government institutions can reduce the burden of unnecessary litigation, promote job security, and uphold the principles of justice and fairness that they are meant to embody. This approach aligns with international standards and sets a positive precedent for the private sector to follow, thereby contributing to the overall betterment of labour practices in the country.”

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A bare perusal of the above settled principle of law as settled by the Hon'ble Apex Court would show that even where there is no policy of regularization but an employee has continued working for more than a decade, while interpreting the judgement in Umadevi's case (supra), the Court has held that such employees are entitled for regularization, even if a post has to be created for such purpose of regularization. Same view was reiterated in Shripal and Dharam Singh's cases (supra). Learned senior counsel for the appellants has not been able to rebut the same.

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Hence, the employees of the appellant-Board, who have already completed 10 years of service are entitled to be considered for regularization of their services under the law mentioned hereinabove. 17. Qua the argument that one of the State i.e. the State of Punjab has objected to the grant of such benefit of regularization of their service due to the financial liability to be increased, it may be noticed that the right of an employee under law cannot be denied merely because it creates financial liability upon the employer.

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Under the garb of financial liability, the employer cannot ask the worker to perform the duties on a contractual or temporary basis, of which the work exists so as to create a situation, where the workers are being exploited and are made to work without there being any definite status in their life. Such argument of additional financial liability cannot

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override the entitlement of claim of regularizing to such employees.

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Even otherwise, the regularization has additional financial liabilities which the employer has to suffer, once the employer has been taking work from such employee continuously for a period of one decade and there is a requirement of the performance of the duties of such worker, benefit of regularization of the services of such appointees, cannot be denied.

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Hence, such objection of the State of Punjab will not debar the claim of the respondents employees claiming regularization, who are otherwise fully eligible to claim the same having cleared all the requisite process of appointment and even at the time of their initial appointment and the subsequent requirement of performing the duties by such respondent employees for more than one decade.

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Further, nothing has come on record that any of the employees seeking regularization as ordered by the learned Single Judge, are not fulfilling the requisite qualification or is a back door entry or his/her work and conduct was not satisfactory while performing such work. In the absence of any such pleading before this Court by the learned counsel for the appellant, it can be safely held that there is no impediment other than 'additional financial liability', which argument has already been dealt herein before and rejected so as to grant the benefit of regularization to such respondents employees, who have performed the duty with the appellants for more than 10 years as of now.

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Learned counsels for the respondents submit that some of the employees are yet to complete 10 years of service and are short by 6 months or so. In that regard, the Board will have the jurisdiction to decide that in

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case services of such employees are required and such services will continue beyond the period of 10 years from their date of initial appointment, the Board would be free to take such action immediately or upon completion of 10 years of service which liberty the Board will have to decide. No decision be taken with a closed mind to deny the benefit rather, a liberal approach should be taken by the employer, qua the employees, who are part of their family only and are making their organization to run and achieve its purpose.

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We have been told that the Board is sympathetic towards the employees and has recommended the same and in case the Board keeps the same observation, the Board will be free to regularize the services, as it deems fit even qua the employees, who are on the verge of completing 10 years of service as of now.

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Keeping in view the totality of the circumstances, the order passed by the learned Single Judge has not been proved to be perverse either on fact or on law, hence no ground is made out for any interference by this Court.

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