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Supreme Court of India

SPORTS AUTHORITY OF INDIA & ANR.versusDR. KULBIR SINGH RANA

Citation
2025 INSC 319
Decided
4 March 2025
Disposal
Dismissed

Holding

A concession or compromise made by a party before a court cannot be withdrawn on appeal unless fraud or deception is established, and the Tribunal’s interpretation of the recruitment rules to treat the respondents as Initial Constituents is correct.

Summary

The Sports Authority of India (SAI) challenged a Central Administrative Tribunal (CAT) order that directed it to treat two physiotherapists as "Initial Constituents" under the 2022 Recruitment Rules, converting them from contractual to regular employees. In the Delhi High Court, SAI’s counsel sought only an extension of time to comply with the Tribunal’s direction, and the High Court disposed of the writ petition accordingly. SAI later filed two recall applications to overturn the High Court’s order, alleging a misunderstanding of the Tribunal’s order, but provided no affidavit disavowing the concession made by its counsel. The Supreme Court held that a party cannot rescind a concession or compromise made before a court unless fraud or deception is shown, and therefore dismissed the recall applications. It affirmed the CAT’s interpretation that the respondents’ appointments were irregular, not illegal, and that they must be considered Initial Constituents, making them regular employees. Consequently, the appeals were dismissed and the Tribunal’s order upheld.

Issues considered

  • Whether a party can recall a court order that was passed based on a concession or compromise made by its counsel without evidence of fraud or deception.
  • Whether the Central Administrative Tribunal correctly interpreted the 2022 Recruitment Rules to deem the respondents as ‘Initial Constituents’ of SAI.

Legislation cited

Headnote

Issue for Consideration Whether the High Court was justified in dismissing an application for recalling an order passed on a concession made by the Appellant’s counsel? Whether the Central Administrative Tribunal has correctly interpreted the recruitment rules while directing the Respondents as ‘Initial Constituents’? Headnotes† Concession made by a party in Court – Recall application against order passed based on such concession rightly rejected – Recall permissible in case of fraud or deception – Impugned judgment upheld –

Subjects

ConcessionCompromiseRecall applicationInitial ConstitutionRecruitment Rules

Judgment

                 [2025] 3 S.C.R. 1547 : 2025 INSC 319

                    Sports Authority of India & Anr.
                                   v.
                        Dr. Kulbir Singh Rana
                  (Civil Appeal No(s). 2289-2291 of 2025)
                                04 March 2025
     [Sudhanshu Dhulia* and Ahsanuddin Amanullah, JJ.]


                            Issue for Consideration
       Whether the High Court was justified in dismissing an application
       for recalling an order passed on a concession made by the
       Appellant’s counsel?
       Whether the Central Administrative Tribunal has correctly
       interpreted the recruitment rules while directing the Appellant to
       treat the Respondents as ‘Initial Constituents’?

                                   Headnotes†
       Concession made by a party in Court – Recall application
       against order passed based on such concession rightly
       rejected – Recall permissible in case of fraud or deception –
       Impugned judgment upheld – Appeals dismissed:
       Held: Sports Authority of India, the Appellant, challenged an order
       of the Central Administrative Tribunal directing the Respondents to
       be considered as ‘Initial Constituent’ under the 2022 Recruitment
       Rules before the High Court – During the hearing, counsel for
       the Appellant said it would not like to press the petition on merits,
       and prayed for time to comply with the Tribunal’s directions – Writ
       petition disposed of by High Court as per request – Appellant did not
       consider Respondents as ‘initial constituents’ as directed – Instead
       filed two recall applications against the High Court’s order – Only
       ground taken by Appellant’s counsel was that it had misunderstood
       the Tribunal’s order – No affidavit by client to say that counsel was
       not authorised or instructed to give a concession – Applications
       dismissed by High Court vide impugned judgment – Held, recall
       applications rightly rejected – When order has been passed on a
       kind of a compromise or concession given by a party, that party
       cannot turn back and challenge the order before a higher court,
       unless it is a case of fraud or deception. [Paras 9 and 10]

* Author
1548                                                          [2025] 3 S.C.R.

                         Supreme Court Reports


    Appointment of Respondents – Tribunal found the appointment
    not to be illegal but only irregular – Therefore, Respondents
    entitled to be considered as ‘Initial Constituents’ under 2022
    recruitment rules – Held, as they are to be considered as ‘initial
    constituent’, they are to be treated as regular employees of
    Appellant – Reasoning of Tribunal correct – No merit in appeals:
    Held: Tribunal directed the Appellant to consider the Respondents
    as ‘initial constituent” under the 2022 Recruitment Rules after
    observing that their appointment was not illegal, but only irregular –
    There is provision under the recruitment rules to consider them
    as ‘Initial Constituents’ – Reasoning of Tribunal correct – Once
    an employee is considered as an ‘Initial Constituent’ of Appellant,
    no longer to be treated as a contractual employee but as a
    regular employee – Concession regarding their status as ‘Initial
    Constituents’ already been made by Appellant before the High
    Court – No merit in appeals. [Paras 11, 12 and 13]

                                List of Acts
    Sports Authority of India (Sports Sciences and Sports Medicine)
    Staff Recruitment Rules, 1992; Sports Authority of India (Service)
    Bye Laws and Conditions of Service Regulations 1992.

                             List of Keywords
    Concession; Compromise; Recall application.

                            Case Arising From
    CIVIL APPELLATE JURISDICTION: Civil Appeal No(s). 2289-2291
    of 2025
    From the Judgment and Order dated 28.02.2024 in WP(C) No.
    2920 of 2024 and dated 26.11.2024 in CMAPPL No(s). 45440 and
    45441 of 2024 by the High Court of Delhi at New Delhi
    With
    Civil Appeal No(s). 2296-2298 of 2025

                        Appearances for Parties
    Advs. for the Appellants:
    Rakesh Kumar Khanna, Sr. Adv., Sandeep Kumar Mahapatra,
    Sugam Kumar Jha, Sreedass K. P., Aditya P. Khanna, Raghav
    tandon, Ms. Awantika Manohar.
[2025] 3 S.C.R.                                                                                    1549

          Sports Authority of India & Anr. v. Dr. Kulbir Singh Rana


      Advs. for the Respondent:
      Ms. Kamini Jaiswal, Ms. Rani Mishraa, Abhimanue Shrestha,
      Ms. Sridevi Panikkar, Pritesh Patni, Nishant Kumar.

                      Judgment / Order of the Supreme Court

                                             Judgment

      Sudhanshu Dhulia, J.

1.    Sports Authority of India (for short ‘SAI’) was created in the year 1984
      and was registered as a society under the Societies Registration
      Act, 1860. The necessity for creating a society is reflected in a
      resolution dated 25th January, 1984 of the Department of Sports,
      Government of India, wherein the objective of the society was stated
      to be ‘promotion of sports and games in India’. SAI is directly under
      the administrative and financial control of the Government of India.
2.    Rules have been framed for regulating the method of recruitment
      to the post of Sports Sciences & Sports Medicine Staff (including
      the post of physiotherapist), which are known as Sports Authority
      of India (Sports Sciences and Sports Medicine) Staff Recruitment
      Rules, 1992 (hereinafter ‘1992 Rules’) and under the Sports Authority
      of India (Service) Bye Laws and Conditions of Service Regulations
      1992, where employees can also be directly recruited as per provision
      81. There is also a provision which is defined as “initial constitution”
      under the 1992 Rules which reads as under:
              ‘4) INITIAL CONSTITUTION:
              (a)All the employees in SAI working on ad-hoc basis on
              any of the post mentioned in the schedule on the date
              these rules come into force shall, after the approval by
              a duly constituted Committee, shall be deemed to have
              been appointed under these rules with effect from a date
              as may be decided by the said Screening Committee in
              each individual case.


1    METHOD OF RECRUITMENT: Recruitment to a post under the Society may be made by any one or more
     of the following methods: (a) Promotion (b) Direct Recruitment (c) Deputation (d) By re-employment of a
     retired employee of the Society or Central/ State Government or any other Organization. (e) On Contract
     for a specified period of technical personnel on specific terms as approved by Vice-Chairperson, SAI
1550                                                        [2025] 3 S.C.R.

                        Supreme Court Reports


          (b) All the employees working on a regular basis on any
          of the post contained in the schedule to these rules will
          be deemed to have been appointed under these rules
          with effect from the date of initial appointment to the post.’
     Fresh set of rules were approved in 2022 for regulating recruitment
     to the posts of Executive cadre, called the Sports Authority of India
     Executive Cadre (Grade A) Staff Recruitment Rules 2022 (hereinafter
     ‘2022 Rules’), which contain a similar provision regarding “initial
     constitution”, which reads as under:
          ‘4. Initial Constitution: - All the employees in SAI working
          on any of the post mentioned In the Annexure-I on the
          date these rules come into force shall be deemed to have
          been appointed under these rules.’
3.   Under the above provision, an employee, who is working on ad hoc
     basis on any post mentioned in the 1992 Rules shall be deemed to
     be appointed under the said rules, after being duly approved for the
     “initial constitution” of SAI. In other words, he/she is not merely a
     daily wage or a contractual employee, but an employee of SAI. The
     respondent was continuing on contractual basis as a physiotherapist
     (grade II) since 20.02.2021.
4.   The 2022 Rules were notified and to bring into effect the cadre
     restructuring made therein, instead of renewing their contracts, the
     department advertised their vacancies which were to be filled by
     another set of physiotherapists on contractual basis. The respondents’
     name did not figure in the list. All persons earlier appointed on
     an ad hoc basis (including the respondents herein) were given
     an opportunity to apply against the newly sanctioned posts. The
     respondents participated in the selection process and on 09.02.2023,
     SAI issued a circular making a public disclosure of non-eligible
     candidates for High Performance Analysts on a contractual basis.
     This recruitment process was challenged by the respondents before
     the Central Administrative Tribunal, Principal Bench at New Delhi,
     by filing an Original Application, which was allowed on 04.11.2023,
     and the following directions were made:
          “28. Notwithstanding the above, the case remains that
          the applicants possessed the prescribed qualifications
          and they have been selected through a process of open
[2025] 3 S.C.R.                                                             1551

        Sports Authority of India & Anr. v. Dr. Kulbir Singh Rana


           competition, therefore, their appointment was not ‘illegal’
           but irregular and therefore they should be considered as
           part of the initial constitution as laid down in 2022 rules.
           Therefore, the right invested in the employees working
           on ad hoc basis remained intact. In this regard, we also
           placed reliance on S.S. Moghe and Others v Union of
           India and others wherein it was held that when a new
           service is proposed to be constituted by the Government,
           it is fully within the competence of the Government to
           decide as a matter of policy the sources from which
           the personnel required for manning the service are to
           be drawn.
           29. In the facts and circumstances of the case, the OA is
           allowed with direction to the competent authority amongst
           the respondents to consider the applicants as “Initial
           Constituent” as per 2022 (4) Rules notified on 03.08.2022
           and pass an appropriate reasoned order in this regard
           as expeditiously as possible and in any case within
           8 weeks of the receipt of a copy of this order and till service
           of such order(s), the applicants will not be terminated.
           Consequently the termination orders dated 09.02.2023
           and 10.02.2023 are quashed. No costs.’
5.   This order was challenged by SAI before the Delhi High Court. During
     arguments, a statement was made by the counsel appearing for SAI
     that they would not like to press the Writ Petition on merits and they
     would be satisfied if some more time is given to them to comply with
     the directions of the Tribunal for considering the case of respondents
     as “initial constituents” as per Section 4 of the 2022 Rules.
6.   The Writ Petition was disposed of on 28.02.2024 with the directions
     as prayed by SAI before the High Court. Reference to the following
     paragraphs of the High Court’s order becomes necessary:
           “3. After some arguments, learned counsel for the
           petitioners prays that instead of pressing the present
           petitions on merit, the petitioners would be satisfied if the
           time granted by the learned Tribunal for considering the
           case of the respondents as ‘Initial Constituents’ as per
           2022(4) Staff Recruitment Rules is extended by eight
           weeks.
1552                                                           [2025] 3 S.C.R.

                         Supreme Court Reports


          4. Learned counsel for the respondents has no objection
          to this limited request.
          5. In the light of the aforesaid, the writ petitions along with
          pending applications stand disposed of by extending the
          time granted by the learned Tribunal to the petitioners for
          passing orders after considering the case of the respondent
          as ‘Initial Constituents’ as per 2022(4) Staff Recruitment
          Rules dated 03.08.2022 by eight weeks from today.
          6. Needless to state, this court has not expressed any
          opinion on merits of the rival claims of the parties.”
7.   Their case for “initial constituents” was not considered by SAI, but
     instead it filed two recall applications against the above order of the
     High Court dated 28.02.2024.
8.   On the other hand, respondent filed a contempt petition before
     the Tribunal (being Contempt Petition No. 140 of 2024) for wilful
     disobedience of order dated 04.11.2023, passed by the Tribunal.
9.   The High Court, however, dismissed the recall applications and
     the reasons assigned were that it is not denied by the counsel
     appearing for SAI that the statement made by the counsel seeking
     time to comply with the order of the Tribunal, was made without the
     instructions from SAI and neither did SAI file an affidavit stating that
     they have not instructed their counsel to make such a statement,
     instead the only ground which was taken by the counsel for SAI was
     that they had actually misunderstood the order of the Tribunal. This
     plea was rejected at the very threshold by the High Court, and in
     our view rightly so. The relevant portions of the order in the recall
     application are reproduced below:
          ‘21. In that view of the matter, the explanation tendered by
          the learned Counsel in his affidavit dated 10 September
          2024 that his statement, as recorded in para 3 of the order
          dated 28 February 2024, was based on an erroneous
          understanding of the order dated 4 November 2023 of
          the Tribunal, cannot be accepted.
          22. In our opinion, the only escape from a concession
          granted by a Counsel on behalf of his client before the
          Court is if the client states, on affidavit, that the Counsel was
[2025] 3 S.C.R.                                                            1553

        Sports Authority of India & Anr. v. Dr. Kulbir Singh Rana


           not instructed or authorised to make such a concession.
           Even in that circumstance, it would be for the Court to
           take a view as to whether to allow the Counsel to resile
           from the concession.
           23. It is not the case of the SAI that the concession made
           by Counsel, as recorded in para 3 of the order dated
           28 February 2024 was beyond the instructions granted to
           the Counsel or made without authorisation
           24. The only ground on which a volte face, from the said
           statement, is now being attempted, is that the Counsel
           misunderstood the order passed by the Tribunal. Such a
           contention, in our view, cannot constitute a basis to recall
           the order dated 28 February 2024, especially since, as
           we have already noted, the undertaking in para 3 was
           in the terms in which the directions had been issued by
           the Tribunal in para 29 of its order dated 4 November
           2023.
           25. It is not the case of SAI, in these applications, that the
           order dated 28 February 2024 is erroneous in any way, or
           that the Court was under a wrong impression while passing
           it. Nor do these applications seek to contend that there was
           some fact which could not be brought to the notice of the
           Court on 28 February 2024, which SAI now seeks to bring
           to the Court’s notice. Nor, even, is it SAI’s case that there
           have been any subsequent developments — except the
           filing of the contempt petition by the respondents - as would
           justify a revisitation of the order dated 28 February 2024.’
     The recall applications were thus dismissed, and that order is under
     challenge before this Court.
10. This petition ought to be dismissed on the mere ground that once
    the order has been passed on a kind of a compromise or concession
    given by a party, that party cannot turn back and challenge the order
    before a higher court, unless it is a case of fraud or deception. On
    principle as well as on law, this is not permissible.
11. Even otherwise, the appellants do not have any case, and the Original
    Application of the respondents has been rightly allowed. We totally
    agree with the reasoning given by the Tribunal.
1554                                                         [2025] 3 S.C.R.

                         Supreme Court Reports


12. At this stage, let us also elaborate upon the findings of the Tribunal
    with regard to the status of the respondents as “initial constituents”
    of SAI.
     The Tribunal took note of the provision governing “initial constitution”
     in the 1992 Rules as well as 2022 Rules. In that context, it held that
     while notifying the 2022 Rules, the 1992 Rules were not superseded
     insofar as the definition of “initial constitution” is considered, and as
     such, both rules continue to be in operation.
     Regarding the status of the present respondents as “initial constituents”,
     the Tribunal at the very outset noted that their recruitment was done as
     per relevant regulations following due selection process. The Tribunal
     then came to the conclusion that the appointments of the respondents
     were not ‘illegal’ but only irregular. Therefore, they are entitled to be
     considered as part of the “initial constitution” of SAI as laid down in
     the 2022 Rules. Ultimately, the Tribunal directed SAI to consider the
     case of applicants as “initial constituents” as per the 2022 Rules.
13. For all practical purposes, once an employee is considered as an
    “initial constituent” of SAI, it would mean that he is no longer to be
    treated as a contractual employee but as a regular employee, who
    comes under direct enrolment/control of SAI. The respondents have
    served SAI in the past, and as stated above, there is a provision
    under the rules under which they can be considered as “initial
    constituents” pursuant to which, the Tribunal gave such directions.
    The concession regarding their status as “initial constituents” has
    already been made by SAI before the High Court.
14. For the reasons stated hereinabove, we see no merit in these appeals
    and therefore, the appeals stand dismissed.
15. Pending application(s), if any, shall stand disposed of.

     Result of the case: Appeals dismissed.




     Headnotes prepared by: Adeeba Mujahid, Hony. Associate Editor
                             (Verified by: Shibani Ghosh, Adv.)


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SPORTS AUTHORITY OF INDIA & ANR. versus DR. KULBIR SINGH RANA — 2025 INSC 319 - Legal Desk AI