Holding

The High Court’s blanket directions for unconditional regularisation of all ad‑hoc/temporary employees were unconstitutional, but the specific conditions in the State Government orders were valid and the appeals are allowed.

Summary

The Supreme Court heard appeals by the States of Punjab and Haryana against a Punjab‑Haryana High Court judgment that ordered the regularisation of large numbers of ad‑hoc, temporary, work‑charged, daily‑wage and casual labour employees. The petitioners argued that the High Court had exceeded its jurisdiction by amending government orders, fixing arbitrary dates for service calculation, and directing unconditional regularisation without regard to vacancies, qualifications or reservation policy. The Court held that the creation and abolition of posts is an executive prerogative and that the conditions prescribed in the various government orders – including service‑date cut‑offs, employment‑exchange sponsorship and qualification requirements – were reasonable and not arbitrary. It further held that the High Court’s blanket direction to regularise all employees with one year of service was untenable, as it ignored vacancy constraints and could violate reservation and merit principles. Consequently, the Court set aside the High Court’s directions (except for the scheme‑framing direction) and dismissed the writ petitions, allowing the appeals.

Issues considered

The extent of judicial interference permissible in service matters and regularisation policies of the executive.
Whether the dates fixed by the State Governments for calculating qualifying service are arbitrary, unreasonable or discriminatory.
Whether the requirement of employment‑exchange sponsorship for regularisation is valid under Articles 14 and 16.
Whether a blanket direction to regularise all ad‑hoc/temporary employees after one year of service, irrespective of vacancy, qualification or reservation, is constitutionally valid.

Legislation cited

Constitution of Indias. Article 136, s. Article 14, s. Article 16, s. Article 226, s. Article 309, s. Article 32
Industrial Disputes Act, 1947
Kerala Water Supply and Sewerage Act

Subjects

regularisationad‑hoc employeestemporary appointmentservice lawArticle 14Article 16Article 309employment exchangereservation policyequal pay for equal work

Judgment

)-

A STATE OF HARYANA AND ORS. ETC.ETC.
v.
PIARA SINGH AND ORS. ETC. ETC.

AUGUST 12, 1992

B [A.M. AHMADI, KULDIP SINGH AND B.P. JEEVAN REDDY, JJ.]

Civil Services :

Constitution of India, 1950:
c Articles I4, 16, 32, 136, 226 and 309-Regularisation/absorption of ad
hoc and temporary employees of State Governments and work-charged
employees, daily wage workers and casual labou-,.-{)irections of High
Court-Justification of-Orders of State Government prescribing eligibility
criteria for regularisation-Whether arbitrary, unreasonable and discriminatory-
D Interference by Court in service matters-when w01Tanted- Guidelines for
regularisation issued

Over the last several years a large number of appointments were
made to Class III and IV services in the two appellant States on ad hoc
basis, i.e., without reference to Public Service Commission or the Subor-
E
dinate Services Selection Board and without adhering to employment
exchange requireinents. As a result, a large number of ad hoc employees
were continuing for several years without being regularised and were
agitating for their regularisation. To meet the situation, both the appel-
lant Governments issued orders from time to time for regu,larisation of
F such employees subject to certain conditions.

In pursuance of these orders a number of persons, wh~ satisfied the.
conditions prescribed in each ofthose orders were regularised, but many
could not be, for the reason that they did not satisfy one or the other of
G the conditions prescribed in the said orders. They were, however, allowed·
to continue in service. This category of people approached the High Court
praying for issuance of writ, order or direction for regularisation of their
service. They contended that the conditions in the said orders were ar-
bitrary,. discriminatory and unrelated to the object.

H The work-charged employees, daily-wagers, casual labour and those
826
STATE v. PIARA SINGH 827

~- employed in temporary/time-bound projects also approached the High A
Court for regularisation of their senices·. Some of the petitioners also
pleaded for equal pay for equal work.

Accepting the pleas of the petitioners, the High Court gave certain .
directions to the appellant-States for regularisation of these employees.
B
Aggrieved by the High Court's orders, the two appellant States filed
appeals before this Court. Some of the employees also filed Writ PetitiOns
before this Court directly, contending that they too were governed by '~e
directions given by the High Court and that they should be given the
benefit of the same. c
On behalf of the appellants the validity and correctness of the
directions given by the High Court were questioned on the grounds that
the High Court had exceeded its jurisdiction in virtually amending the
Government orders and was not justified in holding that the faxation of a D
particular date in the respective Government orders was arbitrary and/or
that it· was unrelated to the object sought to be achieved; that the High
Court also erred in holding that the requirement of having been spon-
sored by the Employment Exchange was invalid; that the High Court was
not justified in directing that all persons who had put in one year's senice
should be regularised unconditionally; and that such a direction would E
give rise to several difficulties and complications for the administration,
that there could not be a direction for regularisation, without a post or a
vacancy and the Government could not be directed to create postS without
number, and it was beyond the capacity of any Government to comply wit~
such directions; that the direction with respect to work-charged estab- F
lishment, casual labour and daily wagers was equally unsustainable ·in
law; that the rule prescribing minimum qualifying senice of one year in
one State could not be thrust upon the other State; that because of the
directions in question, while regularly selected persons would be kept out
of jobs, unqualified ineligible persons who had come through back ·door'.
and whose records of senice might also not be satisfactory would be G
regularised at one go and the rule of reservation would also be violated·.
and that it was the prerogative of the Executive to create and abolish '
posts, and that the Government could not be compelled to create posts ·.
where there was no need for such posts or where the need is no longer '
~ . H
)-

828 SUPREME COURT REPORTS (1992) 3 S.c.R.

A It was contended on behalf or the respondents and tile writ _)__
·petitioners that the directions had been given with a view to ant. die
arliitrarlness or the authorities and with a view to give a satldadory
solution to a human problem created by the policies or the Gowrameats
themselves, that the work-charged employees should be treated - par
with ad hoc employees and ought to be regularised on the 1st or April or
B each year, and all those persons who were working in the permanent posts
ought to be i-egularised.

Disposing or the cases, this Court,

c post isHELD : U. Ordinarily speaking, the creation and abolltioll of a
the prerogative of the Executive. It is the Executive again ...t lays
down the conditions or service subject, or course, to a la~ made by the
appropriate legislature. This power to prescribe the conditions of senk:e
can be exercised either by making Rules under the proviso to Artkle 309
/~-
or the Constitution or (in the absence or such Rules) by issuing ltu)es/ha.
D structions in exercise or its executive power. The court comes into the
picture only to ensure observance or fundamental rights, statutory
provisions, Rules and other instructions, if any, governing the conditions
of service. The main concern or the court in such matters is to ensure the
Rule or law and to see that the executive acts fairly and gives a fair deal
E to Its employees consistent with the requirements or Articles 14 and 16. It
also means that the State should not exploit its empIOyees nor sh0'8hl It
-,,
seek to take advantage or the helplessness and misery or either die an-
employed persons or the employees, as the case may be. (847 F-H]
_,_.....
1.2. The State must be a model employer. It is for this reason it ls
F held that equal pay must be given· for equal work, which is indeed one or
the directive principles of the Constitution and that a person should not
4
be kept in a temporary or ad hoc status for long. [848AJ

1.3. Where a temporary or ad hoc appointment is continued for Iona,
die court presumes that there is need and warrant for a regular post and
G
accordingly directs regularisation. While all the situations in which the
ceart may act to ensure fairness cannot be detailed, it is sufficient to
indicate that the guiding principles are the ones indicated above. [848B] r-
Dharwad Distt. P. W.D. Literature Daily Wage Employees' Association
H v. State of Kamataka and Ors., (1990) 2 S.C.C. 396 and Jacob v. Kera/a
STATE v. PIARA SINGH . 829

Water Authoriiy, (1990] Suppl. 1 S.C.R. 562, referred to. A
2.1. The court must, while giving directions, act with due ca.re and
caution. It must first ascertain the relevant facts, and must be cognizant
of the several situations and eventualities that may arise on account or
such directions. A practical and pragmatic view has to be taken, inasm~ch
as every such direction not only tells upon the public exchequer but a~o B
has the effect or increasing the cadre strength of a particular service, class
or category. [852A,B]

2.2. In the instant case apart from the fact that the High Court •
not right in holding that the several 'conditions imposed by the two C
Governments in their respective or~ers relating to regularisation were.
arbitrary, not valid and justified, it acted rather hastily in directing
aolesome regularisation of all such persons who have put in one year's
s~ and that too unconditionally. Several problems will arise if such
directions become the norm. Therefore, there is need for fulled consider&"'., - -
tion ud due circumspection while giving such directions. [852C] / . D

3.1. 11te Government orders in question were issued by the Govena- .. - - - -
meat from time to time. These orders are not in the nature or a statate
wlaida is applicable to all existing and future situations. They wen issaed
to meet a given situation facing the Government at a given point of. time. E
la tM circumstances, therefore, there was nothing wrong in prescribing a
plll1kalar d8te by which the specified period of service (whether it is one
)al' or two years) ought to have been put in. [853G]

3.2. 11le first order dated 1st January, 1980 issued by one of. die
States says, a person must have completed two years of service as oa 311t F
Deciember, · 1979, i.e., the day previous to the issuance of the order. It
cannot be said that rmng of such a date is arbitrary and ~onaWe.
Silllilarly, the order dated 3rd January, 1983--f'axes. 15th September, 1982
as the relevant date. This notification/order does two things. Firstly, it
excludes Class III posts of clerks from the purview of the S.S.S.B. in case
of those who have completed a minimum of two years of service as on 15tla G
September, 1982, and secondly, it provides for their regularisation subject
to certain conditions. No particular attack was made as to this date in the
Hip Court. Consequently, the Government had no opportunity of ex·
p\aining as to why this particular date was faxed. Without giving such an
opportunity it cannot be '1eld that the fixation of the said date is arbitrary. ff
j

830 SUPREME COURT REPORTS [1992) 3 S.C.R.

A What is more relevant is that the High Court has not held that this
I
particular date is 'arbitrary. According to it, fIXation of any date what·
soever was arbitrary, because, in its opinion, the order must say that any
and every person who completes the prescribed period of service must be
regularised on completion of such period of service. The next order dated
24th Mat"ch, 1987 prescribes the date as 31.12.1986, i.e., the end of the
B previous year. In the circumstances, there is no basis for holding .that
fixation of the date can be held to be arbitrary in the facts and circumstan·
ces of the case. [854A-D]

Dr. Sushma Shanna v. State of' Rajasthan, [1985) S.C. 1367 and Inder
C Pal Yadav & Ors. etc. v. Union of India & Ors. etc., [1985) 3 S.C.R. 837,
referred to.

3.3. The Government orders say that all those who had been spon·
sored by Employment Exchange or had been appointed after issuing a
public advertisement alone should ·be regularised. There is no on- -"-
D reasonableness or invalidity in the same. It is a reasonable and wholesome
provision and a requirement designed to curb and discourage back door
entry and irregular appointments and ought not to have been invalidated.
Moreover, these are not cases where the writ petitioners were appointed
only after obtaining a non-availability certificate from the Employment
E Exchange. [855E·F]
Union of India v. Hargopal, 1987 S.C. 1227, referred to. ·

3.4. The further. requirement prescribed ·in the orders, viz., that the
employees must have possessed the prescribed .q~alifications for. the post
F at the time of his app_ointment on ad hoc basis is equally a valid condition.
[855G·H]

3.5. The High Court was not justified in holding that inasmuch as
the two States were sister States and because prior to 1966 one State was
G a part of the other State, the rule relating to length of service requisite for
regularisation should be uniform in both the States. They are two different
States having their own Governments; merely because one Government
chooses to say that one year's temporary ad hoc service is enough for ..,.... -
regularisation it cannot be said that the other State must also prescribe
the very same period or that it cannot prescribe a longer or shorter
H period. The fact that there is a single High Court for both the States and
. '
STATE v. PJARA SINGH 8~1

the Union Territory of Chandigarh is no ground for saying that the orders A
-J... issued by them should be uniform. [856A·C]

3.6. It is not necessary to alter or modify the directions of the ~ligh
Court, in so far as one of the States was concerned, that Class III and IV.
posts which were within the purview of the S.S.S.B. should equally be
within the purview of regularisation ol'ders issued by iL If any of the .
B
petitioners have been excluded from consideration (for regularisation) on
the basis that most of the Class III and IV posts were kept out of the
--< purview of the S.S.S.B. they may be considered and appropriate orders
passed. [856D·EJ
c
- 3.7. The High Court was also not justified in giving the direction
that all those ad hoc/temporary employees who had continued for more
than one year should be regularised. The direction bas been given without
reference to the existence of a vacancy. It, in effect, means that every ad
/j_
hoc/temporary employee who has been continued for one year should be D
. regularised even though (a) no vacancy is available for him -which means
creation of a vacancy (b) he was not sponsored by the Employment
Exchange nor was be appointed in pursuance of a notification calling for
applications which means be had entered by a back-door (c) be was not
eligible and/or qualified for the post at the time of his appointment and
(d) his record of service since his appointment is not satisfactory. E
'r Moreover, from the mere continuation of an ad hoc employee for one year,
it cannot be presumed that there is need for a regular post. Such a
presumption may be justified only when such continuance extends to
several years. Further, there can be no 'rule of thumb' in such matters.
Conditions and circumstances of one unit may not be the same as of the F
other. Just because in one case, a direction was given to regularise
1--. employees who have put in one year's service as far as possible and subject
to fulfilling the qualifications, it cannot be held that in each and every case
such a direction must follow irrespective of and without taking into ac·
count the other relevant circumstances and considerations. The relief
must be moulded in each case having regard to all the relevant facts and G
circumstances of that case. It cannot be a mechanical act but a judicious
one. Judged from this stand point, the directions under challenge must be
"'"{
held to be totally untenable and unsustainable. [856F-H, 857AnC]

3.8. So far as the members of the work-charged establishment are H
832 SUPREME COURT REPORTS [1992) 3 S.C.R.

A concerned, though the work-charged employees are denied certain
benefits, they are industrial workers and are entitled to the benefits of the
provisions contained in the Industrial Disputes Act. Their rights Oow
from. that special enactment under which even contracts of employment
are open to adjustment and modification. The work-charged employees,
therefore, are in a better ·position than temporary servants like_ the other
B petitionP\"S who are liable to be thrown out of employment without any
kind of compensatory benefits. [857D, 858A-B]

Jaswant Singh v. Union of India, (1980) 1 S.C.R. 426, referred to.

C 3.9. In view of the orders issued on 24th March, 1987 and 6th April,
1990 by one of the States, the direction given by the High Court becomes
unnecessary. Though no orders have been issued in this regard by the
other State, a scheme of regularisation of these employees is stated to have
been prepared by that State in pursuance of the judgment under cbal-
D lenge. The said scheme is, however, not made conditional upon the result /~-
of these appeals against the judgment. The scheme is a reasonably fair
one. I~ is hoped and trusted that irrespective of the result of these appeals,
the said scheme would be given effect to by the other State concerned.
[858C-D]

E 3.10. The High Court has directed that all those employees who fell
within the definition of 'workmen' contained in the Industrial Disputes Act
would also be entitled to regularisation on par with the work-charged
employees t. ·d that they should be regularised on completing five years of
service in one State and four years of service in the other State. This
F direction is given in favour of those casual labour and daily wagers who
fall within the definition of workmen. Insofar as work-charged employees,
daily-wage workers and casual labourers who did not fall within the
definition of work-men are concerned, the High Court bas directed their
regularisation on completion of one year's service. This direction is as
untenable as in tbl. case of ad hoc/temporary employees. The direction
G regarding persons belonging to the above categories and who fall within
the definition of workmen, the terms in which the direction has been given
cannot be sustained. While it is true that persons belonging to these
categories conti• .ing over a number of years have a right to claim
regularisation and the authorities are under an obligation to consider
H their case for regularisation in a fair manner, keeping in view the prin-
-.\

STATE v. PIARA SINGH 833

_ _;. ciples enunciated by this Court, the blanket direction given cannot .be A
sustained. However, in view of the orders of one of the State Governments
contained in the letter dated 6.4.1990 which provided for regularisation of
these persons on completion or ten years, no further directions are called
for at this stage. The other State Government, of course, has not issued
any such orders governing these categories. Accordingly, the State
B
Government concerned should verify the vacancy position in the
categories or daily-wagers and casual labour and frame a scheme of
absorption in a fair and just manner providing for regularisation of these
persons, having regard to their length of service and other relevant condi·
tions. As many persons as possible shall be absorbed. The scheme should
c
-
be framed within six months. [858 F·H, 859 A-CJ

4. Further orders had been issued by one of the State Governments,
after the filing of the writ petitions and during the pendency of the Special:
Leave Petitions in this Court for reguiarisation of ad hoc/work-charged·.
_;
employees. The other State Government has agreed by an affidavit before
this Court, to adopt the same mutatis mutandis so far as Class III ·.
D
employees are concerned. It is hoped that many of the ei.Dployees would .
get regularised under the orders aforementioned issued by both the
Governments. [859D, 86SF, 867E)

5.1. The instant case is not a case where the Governments have E
failed to take any steps for regularisation of their ad hoc employees
working over the years. Every few years they have been issuing orders
providing for regularisation. In such a case, there is no occasion for the
court to issue any directions for regularising such employees more par-
ticularly when none of the conditions prescribed in the said orders can be
F
said to be either unreasonable, arbitrary or discriminatory. The court
~ cannot obviously help those who cannot get regularised under these or-
ders for their failure to satisfy the conditions prescribed therein. Issuing
general declaration of indulgence is no part of jurisdiction of this Court.
In case of such persons it is for the respective Governments to consider
the feasibility of giving them appropriate n:lief, particularly in cases where G
persons have been continuing over a long number of years. and were
eligible and qualified on the date of their ad hoc appointment and further
- --(
whose record of service is satisfactory. [867 F-HJ

5.2. The normal rule, is regular recruitment through the prescribed H
834 SUPREME COURT REPORTS r1992) 3 S.C.R.

A agency but exigencies of administration may sometimes call for an ad hoc
or temporary appointment to be made. In such a situation, effort should
·always be to replace such an ad hoc/temporary employee by a regualrly
selected employee as early as possible. Such a temporary employee may
also compete along with others for such regular selection/appoin~ent. If
he gets selected, well and good, but if he does not, he must give way to the
B regularly selected candidate. The appointment of the regularly selected
candidate. The appointment of the regularly selected candidate cannot be
withheld or kept in abeyance for the sake of such an ad hoc/temporary
employee. Secondly, an ad hoc or temporary employee should not be
replaced by another ad hoc or temporary employee; he must be replaced
c only by a regularly selected employee.· This is necessary to avoid arbitrary
action on the part of the appointing authority. Thirdly, even where an ad
hoc or temporary employnient is necessitated on account of the exigencies
of administration, he should ordinarilly be drawn from the employment
exchange unless it· cannot brook delay in which case the pressing cause
D must be stated on the file. If no candidat~ is available or is not sponsored
by the employment exchange, some appropriate method consistent with
the requirments of Article 16 should be followed. In other words, there
must be a notice published in the appropriate manner calling for applica-
tions and all those who apply in response thereto should be considered
fairly. An unqualified person ought to be appointed only when qualified
E persons are not available throught the above processes. If for any reason
an ad hoc or temporary employee is continued for a fairly long spell, the
authorities must consider his case for regularisaction provide he is
eligible and qualified according to rules and his service record is satisfac-
tory and bis appointment does not run counter to the reservation policy
F of the State. [868D-H, 869A-C]

5.3. The proper course would be that each State prepares a scheme;
if one is not already in vogue, for regularisation of such employees consis-
tent with its reservation policy and if a scheme is alre.a.dy framed, the same
may be made consistent with the observations herein so as to reduce
G avoidable litigation in this behalf. If and when such person is regularised
he should be placed immediately below the lasi regularly appointed
employee in that category, class or service, as the case may be. [869D] .

S.4 .So far as the work-charged employees and casual labour are
H concerned,. the effort must be to regularise them as far as possible and as
STATE v. PIARA SINGH 835

early as possible subject to their fulfilling the qualification, if any, A
prescribed for the post and subject also to availability of work. If a casual
labourer is continued for a fairly long spell - say two or three years ~ a
presumption may arise that there is regular need for his services. In such
a situation it becomes obligatory for the concerned authority to examine
the feasibility of his regularisation. While doing so, the authorities ought
B
to adopt a positive approach coupled with an empathy for the person.
Security of tennre is necessary for an employee to give his best to the job.
In this behalf, this Court commends the orders of one of the State
Governments, contained in its letter dated 6.4.1990 both in relation to
work-charged employees as well as casual labour. [869 E-G]
c
- S.S. The orders issued by both the Governments providing for'.
regularisation of ad hoc/temporary employees who have put in two.
years/one year of service are quite generous and leave no room for any
legitimate grievance by any one. [869H]

~.6. These observations are not exhaustive nor can they be under- , D
stood as immutable. Each Government or authority has to devise its own
criteria or principles for regularisation having regard to all the relevant
circumstances, but while doing so, it should bear in mind the observations
made herein. [870 A-BJ
E
r 6.1. So far as the employees and workmen employed by Statutory/
Public Corporations are concerned, they have not issued any orders akin
to those issued by the two State Governments. Even so, it is but ap-
propriate that they adopt as far as possible, keeping the exigencies and
requirements of their administration in view, the criteria and principles
underlying the orders issued by their Government in the matter of F
regularisation and pass appropriate orders. The orders contained in the
letter dated 6.4.1990, as supplemented by the orders in the Notification
dated 28.2.1991 issued by one of the States should be followed by the
Statutory/Public Corporations located in that State, whereas the
Statutory/Public Corporations located in the other State should follow the
criteria and principles stated in the affidavit of the Government of that G·
· State filed before this Court. [870 C-D]
--'{
6.2. These directions would not, however, apply to these Statutory/
Public Corporations, functioning within these States as are under the
· control of the Government of India. These Corporations would evolve an H
836 SUPREME COURT REPORTS (1992) 3 S.C.R.

A appropriate policy of regularisation in the light of this judgment, if they ~·
/
have not already evolved one, or make their existing policy consistent with
the judgment to avoid litigation. [870E]

7. As regards, equal pay for equal work, the judgment is singularly
devoid of discussion. The direction given by the High Court is totally
B vague. It does not make it clear who will get what pay and on what basis.
Hence, this direction is set aside.

Delhi Development Horticulture Employees' Union v. Delhi Ad- :_..-
ministration, (1992) 1J.T.394, referred to.
c CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2979 of
1992 etc. etc.

From the Judgment and order dated 26.9.1988 of the Punjab and
--
Haryana High Court in C.W.P. No. 72 of 1988.
D
H.L. Sibal, D.S. Tewatia, D.S. Mehra, M.S. Gujral, M.K. Ramamur-
thy, Hardev Singh, K.T.S. Tulsi, S.K. Bagga, S.P. Goyal, J.K. Sibal, H.S.
Mattewal, Adv. Genl. Punjab, Mrs. Jai Shree Ananda, D.A.G., Punjab,
Rajesh, S.K. Mehta, Dhruv Mehta, Aman Vachher, H.S. Munjral, G.K.
Bansal, H.S. Sohal, P.P. Singh, Ms. Mridula Ray, Kartar Singh, H.M. Singh,
E S.C. Paul, R.K. Agnihotri, G.K. Chatrath, P.L. Syngal, N.A. Siddiqui, R.K.
Kapoor, Syed Ali Ahmed, K.C. Bajaj, Ms. Rupinder Sodhi Daulat, M.R. 1
Bidsar, K.K. Gupta, Syed Tanweer Ahmed, Mohan Pandey, Jitender Shar-
ma, Naresh Kaushik, Mrs, Lalitha Kaushik, Shankar Divate, S.S. Khanduja,
Yash Pal Dhingra, Baldev Krishan Satija, Kirpal Singh, R.D. Upadhyay,
F S.N. Bhardwaj, J.D. Jain, S.Bala Krishnan, Ms. Madhu Mool Chandani,
R.S. Sodhi, Prem Malhotra, Mrs. J.S. Wad, S.D. Sharma, B.S. Gupta, Ms.
Geetanjali Mohan, A.K. Mahajan, S.K. Gambhir, T.N. Singh, B.M. Sharma,
N.K. Aggarwal, S.M. Ashri, A.K. Goel, N.N. Sharma, M.K. Dua, E.C.
Agarwala, Ms. Kamini Jaiswal, C.V. Subba Rao, K.R. Nagaraja, Manoj
G Swarup, P.K. Chakraborty, P.N. Puri, Ashok Grover, P. Gaur, Mrs. Chan-
dan Ramamurthi, M.A. Krishnamoorthy, B.S. Malik, Pankaj Katra, A.M.
Khanwilkar, Dr. Meera Aggarwal, R.C. Misra, Gian Singh, S.C. Patel, M/s
Mitter & Mitter & Co., M/s Agarwal Mishra & Co. Mahabir Singh, R.C.
Kaushik, K.K. Mohan, Mrs. Naresh Bakshi, R.S. Suri, Sudershan Goel,
R.K. Chopra, Ravinder Chopra, Mrs. Sureshtha Bagga, Sanjay Bansal, Ms.
H Kanwaljit Kochhar, Ms. Indu Malhotra, R. C. Gubrele, Ms. Renu George,
STATE v. PIARA SINGH [REDDY, J.] 8;37

J R.P. Sharma, D.K. Garg, Vishnu Mathur, Ms. Madhu Tewatia, Ms. Karnak- A
shi S. Mehlwal, Indeevar Goodwill, Ranbir Singh, Ms. Savita Prabhakar,
Uijal Singh, Ms. Kusum Choudhary, J.L. Puri, T.S. Arora for the appearing
parties. Ramesh Chand and Kuldeep Singh appeared in person.

The Judgment of the Court was delivered by
B
B.P. JEEVAN REDDY, J. 1. This batch of Special Leave Petition5
are directed against the judgment of a Division Bench of Punjab an4
·~
Haryana High Court in a batch of writ petitions, the first among them bein~
Writ Petition (C) No.72 of 1988 (Piara Singh and Anr. v. State of Haryana
c
- and Ors.). A large number of writ petitions arising from both the States of
Punjab and Haryana were heard together and a common judgment,
delivered giving certain directions in the matter of regularisation of the,
adhoc/temporary employees, members of work charged establishments,.
daily-wagers, casual labour and those engaged temporarily in temporary'
J,
schemes. We have heard all the counsel appearing in this batch at quite·
D
some length.

Leave granted in all the Special Leave Petitions.

2. Over the last several years a large number of appointments were
y made to Class III and IV services in the States of Punjab and Haryana on E
ad hoc basis i.e., without reference to Public Service Commission or the
Subordinate Services Selection Board and without adhering to employment
exchange requirements. They were initially appointed for a period of six
months or so but were continued for years together under orders passed
from time to time. (In so far as the State of Haryana is concerned, most F
of the class III posts in the Education Department were kept out of the
-~~
purview of the S.S.S.B. during the period 1970 to 1987. For a period of 10
years, it is stated, there was no Board in existence in the State. Only in
March 1987, almost all the posts in Education Department and other
Departments were brought within the purview of the S.S.S.B.). As a result
of the above policy, a large number of ad hoc employees came into G
existence in both the States, who were continuing over several years without
being regularised and were agitating for their regularisation. To meet the
- '"' situation, both the Governments issued orders from time to time for
regularisation of such employees subject to centain conditions. The orders
issued by the Government of Punjab are the following: H
_,.)-

838 SUPREME COURT REPORTS (1992) 3 S.C.R.

A S.No. Date of issue Substance of the Order ~··
1 2 3
1. 3.3.1969 Regularisation of ad hoc employees oompleting
one year service on 28.2.1969.
2. 29.1.1973 Regularisation of ad hoc employees completing
B one hear service on 1.1.1973.
3. 3.5.1977 Regularisation of ad hoc employees completing
one year service on 1.4.1977.
~
4. 20.10.1980 Regularisation of ad hoc employees. completing
one year service on U0.1980.
c 5. 20.10.1982 Regularisation of ad hoc employees completing
one year service on 26.10.1982
6. 29.3.1985 Regularisation of ad hoc employees completing
two years service on 1.4.1985
7. 8.8.1985 Modifying the order issued on 29.3.1985 and "'--
D
directing that all Class III ad hoc employees
having one year service on 1.4.1985 may be
regularised.
8. 1.9.1986 Regularisation of Class III ad hoc employees
appointed after 1.4.1984.
E
The orders issued by the Government of Haryana are the following: 1"
S.No. Date of issue Substance of the Order
1 2 3
F 1 1.1.1980 Regularisation of all Class. III ad hoc
employees who have completi:d two years
service on 31.3.1979. )r'
2. 3.1.1983 Regularisation of ad hoc Clerks in Class III
who have completed two years service on
G 15.9.1982.
3. 19.1.1984 Regularisation of Class III ad '1oc employees
who have completed two years of service on
15.9.1982. (The employees who were left out ·r-
in the orders dt. 3.1.1983 were brought within
the purview of this order.)
H
STATE v. PIARA SINGH [REDDY, J.] 839

4. 15.2.1987 Regularisation of all Class III ad hoc A
employees other than teachers working
against posts which have been taken out of
the purview of the S.S.S.B. and who 1'.ave
completed two years service on 1.11.1986~
B
In pursuance of the above orders a number of persons who satisfied
the conditions prescribed in each of those orders were regularised 'but
many could not be. Their services could not be regularised for the rea~on
that they did not satisfy one or the other of the conditions prescribed in
the said orders. They were, however, allowed to continue in service: It is
this category of people. who approached the High Court· of Punjab a~d C

-- Haryana praying for issuance of Writ, Order of Direction for regularisation
of their service.

3. At this stage, it would be appropriate to notice the conditions
prpscribed by the aforesaid orders which were not satisfied by the writ
p6titioners and on account of which they were not regularised. The order D
of the Government of Haryana dated 1st January, 1980 prescribed the
following conditions for regularisation:

(1) He must have put in a minimum service of two years on
31.12.1979. E
(2) He must have been recruited through the Employment Exchange. '

(3) The service and conduct of such emplyee should be of an overall '
good category.

(4) He must have possessed the prescribed qualifications for the post F
at the time of his appointment on ad hoc basis.

In the Order dated 3rd January 1983, a further condition, besides the
aforesaid conditions.· was imposed viz.. that the employee must bel~ng to
. the category for which the post stands reserved. G
Similarly in the Order dated 29th March, 1985 issued in the case of
Goverilm.ent of Punjab (issued by the President of India) the conditions
prescribed.were the following:

(1).He must have completed a niinimum of two years service on 1st fl
840 SUPREME COURT REPORTS £1992] 3 S.C.R.

A April, 1985. ~
(2) He must have fulfilled the conditions for eligibility (a~demic
qualifications, experience and age) at the time of his first adhoc/tentpnrary
appointment.

B (3) He must have been recruited through the Employment Exchange
or by open advertisement.
}-
(4) His record of service has been satisfactory.

(5) He is found medically fit for entering the Government service;
c his character and antecedent have been duly verified and found suitable
fQr Government service.

(6) A regular post/vacancy is available for regularisation. ,L_
D (7) He has been found fit for regularisation by the Departmental
Selection Committee.

(8) Among the persons regularised, interse seniority would be ob-
served. All these persons would be placed junior to those working on
regular basis.
E
These are the conditions common to all the orders issued from time
1
to time by the Governments of Punjab and Haryana. Only those ad hoc/tern-
porary employees who could not be regularised for want of satisfy,ing one or ,,,....,..
the other of the conditions prescribed in the respective orders that had
F approached the High Court by way of Writ Petitions. They contended that
the conditions prescribed in the said orders were arbitrary, discriminatory )r
and unrelated to the object. It -is this contention which was .examined at
some length and accepted by the high Court.

4. Besides the ad hoc/temporary employees, certain other categories
G of persons also approached the High Court whose cases too have been
dealt with in the judgment under appeal. They are work-charged employees
daily~wagers, casual labour and those employed rin temp0rary/time-bound
projects. They too wanted to be regularised. A plea of equal pay for equal
r -
work was also advanced by certain petitioners. These pleas too were
H considered and upheld.
STATE v. PIARA SINGH [REDDY, J.] 841

5. The reasons for which the High Court held the conditions A
prescribed in the orders of regularisation aforementioned, as bad are to
the following effect:

(a). VALIDITY OF FIXING A PARTICULAR DATE BY WHICH
THE SPECIFIED PERIOD OF SERVICE SHOULD HA VE BEEN COM-
PLETED. B

The High Court held, "th~re is no magic in fixing a date by which an
employee was to complete the prescribed tenure of service for regularisa-
tion ..........fixing of a date has no reasonable basis or intelligible different.a
C

-
for the object to achieve ........ following that view (the view taken by this
Court in lnder Pal Yadav, (1985] 3 S.C.R. 837) we hold that the dates fixed
for the policies of regularisation of the two Governments are di~
criminatory......we hold that the various dates fixed from time to time in
their regularisation policies are hit by Articles 14 and '16 of the Constitutiol)
of India."
D
(b) VALIDITY OF THE REQUIREMENT THAT THE EMPLOYEE
SHOULD HAVE BEEN SPONSORED BY EMPLOYMENT EX-.
CHANGE.

The High Court held that this Court has, in the Union of India v..
Hargopal (1987 S.C. 1227), held that "if at a given moment suitable E
candidates amongst candidates sponsored by the Employment Exchanges
are not available or no candidate has been sponsored by the Employment
Exchange and recruitment is made on ad hoc basis from the sources other
than employment exchange, it cannot be said in regularisation policy that
such candidates would not -be entitled to be regularised. The basic policy ' F
decision is that ad hoc employees who have worked for quite some time
- and_ .have gained experience should be regularised and in case they are
shunted out, hardship wouid be caused in numerous ways........we find no
justification in the policy of regularisation that the eandidates sponsored
through the Employment Exchanges alone would be entitled to regularisa- G
tion." No finding was, however, recorded that the petitioners or any of them
were appointed without reference to the Employment Exchange only after
the Employment Exchange intimated the concerned authority that no
suitable candidate is available with it.

(c) VALIDITY OF THE REQUIREMENT THAT THE CON- ff ·-
)-
.,/

842 SUPREME COURT REPORTS (1"992] 3 S.C.R.

A CERNED POSTS SHOULD NOT BE WITHIN THE PURVIEW OF ~
S.S.S.B.

The High Court held that inasmuch as most of the Class III and Class
IV posts were kept out of the purview of the S.S.S.B. in the State of
Haryana during the period 1970 to March, 1987 and also because for a
B period of ten years there was no S.S.S.B. in existence in this State, imposi-
tion of this condition by the Government of Haryana is unreasonable and
arbitrary.
r,.
6. Having expressed the opinions above-mentioned, the High Court
c referred to certain decisions of this court and of its own, and expressed the

~
view that continuing employees on adhoc basis for more than one year
without regularising them is arbitrary and unreasonable. This principle was
also held applicable to other categories of employees like daily wagers,
casual labour and others, who were ---'"workmen" as defined in the In-
-
dustriaf Disputes Act. The court further opined that inasmuch as the State ,~
D of Haryana was prescribing one year's service for regularisation (in its
orders) the Punjab Government cannot prescribe two years qualifying
service. Thus, one year service was declared as the norm for all such
employees to become entitled to regularisation.

7. The directions ultimately granted by the High Court while allowing
E
the batch of writ pettitions are to the following effect: '1'
(1) The State Government should avoid making any ad hoc
appomtments. If they do so, it shall be for initial period of six ~
months and not be extended beyond other six months. If their
F term is .extended beyond one year, to such employees the
benefits arising from· our following conclusions will apply, ac-
)r-
cording to the group in which they fall.

(2) The Punjab State employees covered by Group No. 1 would
be considered as regular members of the service on eompletion
G of more than one year after ignoring notional and permissible
breaks in service, as noticed by the Supreme Court in various
judgments and also by our Full Banch in Jagdish Lal's case 'y -
I
(supra). However, the concerned departments would pass or-
dets for their regularisation and they would be entitled to .all
H benefits of service from the date of their. initial appointments.
-\

STATE v. PIARA SINGH [REDDY, J.) 843

As regards Haryana employees covered by Group No. l on A
completion of cwo years of service they would be considered
as regular members of service after ignoring their notional and
permissible breaks as noticed by the Supreme Court in various
judgments and also by our Full Bench ~ Jagdish Lat's case
(supra), and the concerned departments would pass orders for
B
their regularisation. In case of those, who have completed more
than one year of service, their services shall not be terminated
till the new policy for regularisation in accordance with our
judgment, i,s framed, in which a direction has been issued ~o
re-frame the policy for regularisation on completion of more
than one year of service, and without the condition which may c
hamper the policy of regularisation, irrespective of the fa~t
whether or not their names were sponsored by the Employment
Exchange or thal'their posts are within or outside the purview
of the S.S.S.B. In case such petitioners complete tWo years, then
on completion of two years, they will be considered as regular
D
members of service and appropriate orders for their regularisa·
tion will be passed by the concerned departments, and such
employees would be entitled to all service benefits from the,
date of their initial appointments.

(3) The services of work charged, daily wage workers and E
y casual labolirers (other than those who fall within the definition ,
of workman under the 1947 act covered by Group III) Serving ·
'•
in the different departnlents of Governmen! of Punjab and
Haryana, as also their corporations who have.put in more than ,
one year of service, would continue to serve and their services F
will not be dispensed with. The ci>ncerned departments shall
frame scheme for their absorption, as regular employees on
completion of more than one year of service, and their services
shall be regularised under those schemes. On regularisation
they would be entitled to all service benefits from the date of
intial appointments. ,a

-, As regards work charged employees, who have completed five
years of service, they shall be considered to be regular
employees under the scheme of regularisation framed by the
State of Punjab and order for their regularisation shall be a
}

844 SUPREME COURT REPORTS (1992) 3 S.C.R.

A passed. As regards work charged employees of the State of
Haryana, on completion of four years of service they shall be -~
considered to be regular under the regularisation scheme
framed by the State and appropriate orders for their regularisa-
tion shall be passed. However, they would be entitled to all
service benefits from the date of initial appointments.
B
(4) The persons falling in group (III) are those who come within
the definition of 'workman' under the 1947 Act. On completion
~
of 240 days, which shall be counted keeping in view the· decision r
of the Supreme Court in The Workmen of American Express
c International Bank Corporation v. The Management ofAmerican
Express, A.l.R. 1986 S.C. 458, they would be entitled to benefits
of all the provisions of Chapter V-a of the 1947 Act, ,and their
services should not be dispensed with without following the
procedure laid in that Chapter. For the purposes of regularisa-
tion, what has been stated for the employes falling in Group II,
-D would also be applicable to the employees falling in this group.
On regularisation they would be entitled to the benefits of
provisions of the 1947 Act as also the Service Rules, from the
date of their initial appointments, as applicable to the depart-
ments concerned from time to time.
E
(5) The ad hoc temporary employees in temporary organisa- -,,
tions like the Adult Education Scheme and Intergreted Child
Development Scheme, covered by Group IV, who have con-
tinued in service for more than one year with notional breaks
would be entitled to the benefits of service and benefit of the
F directions issued by the Supreme Court in Bhagwan Dass's case
supra, and the service of none of them would be terminated
except on abandonment of the scheme.

(6) In case serVices of an employee, who come within the ambit
of Groups I to III, have already been terminated on the com-
G
pletion of his more than one year of service, he shall have to
be taken back in service iri case of a request being made by
him to the concerned department of the government before the 'r -
I

expiry of three years and two months of such termination.

H Some of the petitioners, who had put in more than one year of
STATE v. PIARA SINGH [REDDY, J.) 845

service are out. They would be reinstated forthwith with con- A
tinuity of service and all benefits.

(7) In case some posts are abolished or some persons are found
surplus, junior most would be out on the rule of Last come first
go? But if later on vacancies arise or posts are created, they
will have to be caUed back first in the order of seniority, that B
is, on the rule of last go first come and if still some vacancies
remain, new incumbents through S.S.S.B. may be accom-
modated.

(8) The learned counsel for the State was asked to point out if C

..... the claim made by the petitioners for equal pay for equal work
as being paid to their counterparts, in view of the decision t~en
by the Supreme Court in various cases, was not justified. He
was not able to point out if the claim so made was not correct.
Accordingly, they would be paid wages as claimed from the
date of initial appointments in service. The arrears should be D
paid within six months from today.

It is again made clear that till regularisation policies are framed ·
as directed by us and regularisation orders are passed, the
employees shall continue and their services shall not be ter- E
minated."

8. The States of Punjab and Haryana are questioning the validity and
correctness of the above directions in these appeals. Some employees have
also directly approached this court by way of writ petitions contending that
they too are governed by the directions given by the High Court and should F
be given the benefit of the same. The respondents in these appeals and
-<:, such writ petitioners are supporting the judgment and directions aforesaid.

Mr. Sibal, learned counsel for the appellants questioned the validity
and correctness of the directions given by the High Court on the following G
grounds:

(1) That the High Court has exceeded its jurisdiction in virtuitlly
-~
amending the Government orders on the subject of regularisation. The
learned Judges were not justified in holding that the fixation of a partic*1ar
date in the respective G.Os. was arbitrary and/or that it was un-relate4 to H
I
}-

846 SUPREME COURT REPORTS (1992] 3 S.C.R.

A the object. The learned Judges have also erred in holding that the requie.- ~-
ment of having been sponsored by the Employment Exchange was invalid.

(2) The learned Judges were not justified in law in directing that all
persons who have put in one year's service should be regularised uncondi- ....
tionally. No court has gone so far nor is there any warrant for giving such
B a direction. Such a direction gives rise to several difficulties and complica-
tions for the administration which were evidently not taken into considera-
tion by the learned Judges while giving the said directions.
·:,r
(3) For regularisation, the first pre-condition is that there must be a
c vacancy, whether permanent or temporary. Such a vacancy must either be
existing or may be created but it must be there. There cannot be a direction:
for regularisation without a post or a vacancy and the Government cannot
be directed to create posts without number. It is beyond the capatjty of
---
any Government in India to comply with such directions.
.>t..
D (4) The dir~ction with respect to work-charge establishment is equal-
ly unsustainable in law. So is the direction with respect to casual labour
and daily wagers. -:"

(5) The learned Judges erred in directing the Government of Punjab
to reduce the minimum qualifying service to one year just because the c•.
E
Haryana Government has been prescribing only one year's qualifying ser-
vice in its orders. Both are independent States and the rule in one State
1
connot be thrust upon the other.

(6) Because of the impugned directions, regularly selected persons
F are being kept out of jobs. The effect of the impugned directions is that
unqualified ineligible persons who have come through back do~r and
whose records of service · may also not be satisfactory are all beiiig 1

regularised at one go. The rule of reservation is also being violated by the
said directions.
G (7) It is the prerogative of the Executive to create and abolish posts.
The Government cannot be compelled to create posts where there is no
need for such posts or where the need is no longer there.
:r
(8) The above contentions are supported and reiterated by the
H counsel appearing for the State of Punjab.
STATE v. PIARA SINGH [REQDY, J.J 847

9. On the other hand, -it is contended by the counsel for the respon- A
dents and the counsel for the writ petitioners that the directions given are
perfectly warranted in all the circumstances of the case and have been
given following the decisions of this court. It is submitted that the said
directions have been given with a view to curb the arbitrariness _of the
authorities and with a view to give a satisfactory solution to a human B
problem created by the policies of the Governments themselves. It is 1

submitted by Shri R.KGarg that the work-charged employees should be ,
treated on par with ad hoc employees and ought to be regularised on the
1st of April of each year. All those persons who are working in the
permanent posts ought to be regularised, says the counsel. Sri M.K. '
Ramamurthy, appearing for the work charged employees contended that C 1

the general concept as to work charge employees, viz., that the employment
is confined to a particular work or project is not correct. He submitted that
this is a legacy left behind by the British. He submitted that the work charge
employees are employees of the work charge establishment and so long as
one or the other work iS there, they sl,10uld be continued. Inasmuch as the
Government, particularly at the present· stage of development, is never · D
, without a project or work, these employees must also be regularised. '
Indeed, according to the counsel the concept of work charge establishment 1

is a mere matter of accountancy. It is distinct from project employment. It
is really temporary employment which in the nature of things must be
treated as regular. Other counsel appearing for the respondents in the, E
y appeals and for the writ petitioners supported these contentions.

10. Ordinarily speaking, the creation and abolition of a post is the '
prerogative of the Executive. It is the Executive again that lays down the ,
conditions of service subject, of course, to a law made the appropriate , F
legislature. This power to prescribe the conditions of service can be exer-·
cised either by making Rules under the proviso to Article 309 of the!
Constitution or (in the absence of such Rules) by issuing Rules/i.11structions1
in exercise of its executive power. The court comes into the picture only,
to ensure obsezyance of fundamentat rights, statutory provisions, Rules and
other instructions: if any, governing the conditions of service. The main' G
concern of the court in such matters is to ensure the Rule of law and to
-~ see that the executive acts fairly and gives a fair deal to its employee~
consistent with the requirements of Articles 14 and 16. It also means that
the State should not exploit its employees nor should it seek to ·take
advantage of the helplessness and misery of either the unemployed persons H
. I '
848 SUPREME COURT REPORTS (1992) 3 S.C.R.

A or the employees, as the case may be. As is often said, the State must be
a model employer. It is for this reason, it is held that equal pay most be
given for equal work, which is indeed one of the directive principles of the
Constitution. It is for this very reason it is held that a person should not
be kept in a temporary or ad hoc status for long. Where a temporary or
ad hoc. appointment is continued for long the court presumes that there is
B need and warrant for a regular post and accordingly directs regularisation.
While all the situations in which the court may act to ensure fairness cannot
be detailed here, it is sufficient to indicate that the guiding principles are
the ones stated above. The principles relevant in this behalf are stated by
this Court in several decisions, of which it would be sufficient to mention
C two decisions having a bearing upon the issue involved her~. They are
Dharwad Distt. P. W.D. Literature Daily ·Wage Employees Association v.
State of Kamataka and Ors., [1990) 2 S.C.C. 396 and Jacob v. Kera/a Waw
Authority. [1990) Supp. 1 S.C.R. 562. In the first case, it was alleged that
about 50,000 persons were being employed on daily- rated or t;m monthly-
D rated basis over a period of 15 to 20 years, without regularising them. It
was contended that the very fact that they are continued over such a long
period is itself proof of the fact that there is regular need for such ·
employment. In that view of the matter, following directions were given,
after reviewing the earlier decisions of this court elaborately.

E "From amongst the casual and daily rated employe.es who have
completed ten years of service by December 31, 1989, 18,600
shall immediately be regularised with effect from January 1,
1990 on the basis of seniority-cum-suitability.

There shall be no examination but physical infirmity shall
F mainly be the test of suitability.

The remaining monthly rated employees covered by' the para-
graph 1 who have completed ten years of service as on Decem-
ber 31, 1989 shall be regularised before December 31, 1990, in
a · phased manner on the basis of seniority-cum-suitability,
G
suitability being understood in the same way as above.

The balance of casual or daily rated employees who become
entitled to absorption on the basis of completing ten years of
· service shall be absorbed/regularised in a phased manner on
H the same principle as above on. or before December 31, 1997.
STATE v. PIARA SINGH [REDDY, J.] 849

At the point of regularisation, credit shall be given for every A
unit of five years of service in excess of ten years and one
additional increment in the time scale of pay shall be allowed
by way of weightage.

There was a direction that the claims on other heads would be
considered at the time of final disposal. We have come to the B
conclusion that apart from these reliefs no other would be
admissible."

Having given the said direction, the Bench (Ranganath Misra,
M.M.Punchhi and S.CAgarwal,JJ.) made the following observations: C
"We are alive to the position that the scheme which we have
finalised is not the ideal one but as we have already stated, it
is the obligation of the court to individualise justice to suit a
given situation in a set of facts that are placed before it. Under
the scheme of the constitution the purse remains in the hands D
of the executive. The legislature of the State controls the
Consolidated Fund out of which the expenditure to be incurred,
in giving effect to the scheme, will have to be met. The flow
into the Consolidated Fund depends upon the ·policy of taxation
depending perhaps on the capacity of the payer. Therefore, E
unduly burdening the State for implementing the constitutional
obligation forthwith would create problems which the State may
not be able to stand. We have, Therefore, made our directions
with judicious restraint with the hope and trust that both parties
would appreciate and understand the situation. The instrumen-
tality of the State must realise that it is charged with a big trust. F
The money that flows into the Consolidated Fund and con-
stitutes the resources of the State comes from the people and
the welfare expenditure that is meted out goes from the same
Fund back to the people. May be that in every situation the
same tax payer is not beneficiary. That is an incident of taxation G
and a necessary concomitant of living within a welfare society."

11. The second case (Jacob) arose from Kerala. Upon the estab-
Jishment of Kerala Water Authority under Kerala Water Supply and
Sewetage Act, 1986, all the functions of Public Health Engineering Depart-
ment were also transferred to the Authority. All the employees of the said H
850 SUPREME COURT REPOR11S ' (1992] 3 S.C.R.

E

F In the light of the said principle and in the li~t of the principles
emerging from the decisions of this court - which were elaborately dis-
cussed-the following directions were given:
I
j

"(1) The Authority will with immediate ~ffect regularise the
services of all ex-PHED employees as per i~s Resolution of30th
G '-
January, 1987 without waiting for State Government approval. I

(2) The services of workers emplQyed by the Authority between
1st April, 1984 and 4th AuguSt, 1986 will be regularised with
immediate effect if they possess the requisite qualification~ for
H the post prescribed on the date of appointment of the con-
I
~

STATE v. PIARA SINGH [REDDY, J.] 851.

cerned worker. A

(3) The services of workers appointed after 4th August, 1984
and possessing the requisite qualifications should be regulated
in accordance with Act 19 of 1970 provided they have put in
continuous service of not less than one year, artificial breaks,
if any, to be ignored. The Kerala Public Service Commission B
will take immediate steps to regularise their services as a
separate block. In doing so the Kerala Public Service Commis-
sion will take the age bar as waived.

- (4) The Kerala Public Service Commission will consider the
question of regularisation of the services of workers who pos-
sess the requisite qualifications but have put in less than one
year's service, separately. In doing so the Kerala Public Service
C

commission will take the age bar as waived. If they are found
fit they will be placed on the list along with the newly recruited D
candidates in the order of their respective merits. The Kerala
Public Service commission will be free to rearrange the list
· accordingly. Thereafter fresh appointments will issue depend-
ing on the total number of posts available. If the posts are
inadequate, those presently in employment will make room for
the selected candidates but their names will remain on the list E
· and they will be entitled to appointment as and when their turn
arrives in regular course. The list will enure for such period as
is permissible under the extant rules.

(5) The Authority will be ~t liberty to deal with the services of F
the workers who do not possess the requisite qualifications as
it may consider appropriate. in accordance with law.

(6) Those workers whose services ·have been terminated in
violation of this Court's order in respect of which Contempt 1

Petition No. 156 of 1990 is taken out shall be entitled to the G
benefit of this order as if they continue in service and the case
of each worker will be governed by the clause applicable to him
depending on the category to which he belongs and if he is
fourid eligible for regularisation he will be restored to service
and assigned his proper place." 1H
)

852 SUPREME COURT REPORTS (1992) 3 S.C.R.

A 12. As would be evident from the observations made and directions
given in the above two cases, the court must, while giving such directions,
act with due care and caution. It must first ascertain the relevant facts, and
must be cognizant of the several situations and eventualities that may arise
on account of such directions. A practical and pragmatic view has to be
taken, inasmuch as every such direction not only tells upon the public
B exchequer but also has the effect of increasing the cadre strength of a
particular service, class or category. Now, take the directions given in the
judgment under appeal. Apart from the fact the High Court was not right-
as we shall presently demonstrate in holding that the several conditions
imposed by the two Governments in their respective orders relating to
c regularisation are arbitrary not valid and justified - the high Court acted
rather hastily in directing wholesome regularisation of all such persons who
have put in one year's service, and that too unconditionally. We may
venture to point out the several problems that will arise if such directions
become the norm:
D
(a) Take a case where certain vacancies are existing or expected and
steps are taken for regular recruitment either through Public Service
Commission or other such body, as the case may be. A large number of
persons apply. Inevitably there is bound to be some delay in finalising the
selections and making the appointments. Very often the process of selec-
E tion is stayed or has to be re-done for one or the other reason. Meanwhile
the exigencies of administration may require appointment of temporary
hands. It may happen that these temporary hands are continued for mor.e
than one year because the regular selection has not yet been finalised. Now
according to the impugned direction the temporary hands completing one
F year's service will have to be regularised in. those posts which means
frustating the - regular selection. There would be no post left for regularly
selected persons even if they are selected. Such cases have indeed come to
this court from these very two States.

(b) In some situations, the permanent incumbent of a post may be
G absent for more than a year. Examples of this are not wanting. He may go
on deputation, he may go on Faculty Improvement Programme (F.1.P.), or
he may be suspended pending enquiry. into charges against him and so on. r
There may be any number of such situations. If a person is appointed
temporarily in his place and after one year he is made permanent where
H will the permanent incumbent be placed on his return? Two persons cannot
STATE v. PIARA SINGH [REDDY, J.) 853

..J. hold the same post on a regular or permanent basis. A
(c) It may also happen that for a particular post a qualified person
is not available at a given point of time. Pending another attempt at
selection later on an unqualified person is appointed temporarily. He may
continue for more than one year. If he is to be regularised, it would not
only mean foreclosing of appointment of a regular qualified person, it B
would also mean appointment of an Unqualified person.
~ (d) Such directions have also the effect of disregarding and violating
the rule relating to reservation in favour of backward class of citizens made
under Article 16(4). What cannot be done directly cannot be allowed to
be done in ·such indirect manner.
a
(e) Many appointments may have been made irregularly - as in this
case - in the sense that the candidates were neither sponsored by the
_,)..
Employment Exchange nor were they appointed after issuing a proper
advertisement calling for applications. In short, it may be a back door entry. D
A direction to regularise such appointments would only result in en-
couragement to such unhealthy practices..

'.fhese are but a few problems that may arise, if such directions
become the norm. There may be many such and other problems that may
y arise. All this only emphasises the need for a fuller consideration and due E
circumspection while giving such directions.

--.:. 13. Now we shall proceed to examine whether the High Court was
right in holding that the several conditions prescribed in ~he orders issued
by the two Governments from time to time are bad. In particular, whether F
the High Court was right in holding that prescribing a particular date by
--.:
I

which the prescribed period of service should have been put in and the
further condition that the candidate must have been sponsored by Employ-
ment Exchange, are arbitrary and unreasonable. These G.Os. were issued
by the Government from time to time. These orders are not in the nature
of a statute which is applicable to all existing and future situations. Tliey G
were issued to meet a given situation facing the Government at a given
--, point of time. In the circumstances therefore, there was nothing wrong in
prescribing a particular date by which the specified period of service
(whether it is one year or two years) ought to have been put in. Take for
example, the orders issued by the Haryana Government. The first order is H
)

854 SUPREME COURT REPORTS [1992] 3 S.C.R.

A dated 1st January, 1980. It says, a person must have completed two years
of service as on 31st December, 1979, i.e., the day previous to the issuance
of the order. How could it be said that fixing of such a date is arbitrary
and unreasonable? Similarly the order dated 3rd January, 1983 fixes 15th
September, 1982 as the relevant date. This notification/order does two
things. Firstly; it excludes class III posts of clerks from the purview of the
B S.S.S.B. in case of those who have completed a minimum of two years of
service as on 15th September, 1982, and secondly, it provides for their
regularisation subject to certain conditions. No particular attack was made
as to this date in the High Court. Consequently the Government of
Haryana had no opportunity of explaining as to why this particular date
C was fixed. Without giving such an opportunity, it cannot be held that the
fixation of the said date is arbitrary. What is more relevant is that the High
Court has not held that this particular date is arbitrary. According to it,
fixation of any date whatsoever is arbitrary, because in its opinion the order
must say that any and every person who completes the prescribed period
D of service must be regularised on completion of such period of service. The
next order dated 24th March, 1987 prescribes the date as 31.12.1986 i.e.,
the end of the previous Y.ear. In the circumstances, we see no basis for
holding that fixation of the date can be held to be arbitrary in the facts and
circumstances of the case. In this. connection, reference may be made to
the decision of this court in Dr. Sushma Shanna v. State of Rajasthan,
E (1985) S.C. 1367. The Governor of Rajasthan had issued an ordinance
stating that "all t~mporary lecturers as were appointed as such on or before
the 25th day of June 1975 and are continuing as such at the commencement
of the Rajasthan Universities Teachers (Absorption of Temporary Lec-
turers) Ordinance, 1978 (Ordinance No. 5 of 1978) shall be considered by
F the University concerned for their absorption and substantive appointment
on the recommendation of the Screening Committee constituted under
section 4 subject to their fulfilling the conditions of eligibility including
minimum qualifications prescribed by the University concerned under the
relevant law as applicable on the respective dates of their temporary
appointments and subject also the availability of substantive vacancies of
G lecturers in the department concerned."

\
The validity of the said ordinance was questioned on the ground that
the fixation of the date, 25th day of June, 1975, was arbitrary and has been
r
chosen only because that was the date on which internal emergency was
H proclaimed. It was also submitted that the further requirement that the

<·
STAIB v. PIARA SINGH [REDDY, J.) 855
I
lecturer appointed should be continuing as such on the date of commen- · A
cement of the ordinance (12.6.1978) is an equally arbitrary and un-
reasonable condition. Both these contentions were rejected by this court.
The court negatived the contention that the prescription of the said date
· and the further requirement of being in service on the date of ordinance
have th.e effect of excluding persons who have put in long years of service B
but were not continuing on the date of ordinance, making the said condi-
tions discriminatory. Such possibilities, it was held, were not enough to
castigate the said condition as arbitrary. It was observed that there was no
evidence to show any attempt on the part of the Government to separate
or penalise pre-emergency appointees or for that matter any particular
class of appointees. In this context, we must remember that what is in issue •C
is not the wisdom of the executive in issuing a particular order or orders I
but the validitY thereof. The court may think it more desirable that the
order should be in particular terms as indicated by it, but that is not
enough.

14. The next question is whether the orders issued by the two
b
Government were arbitrary and unreasonable in so far as they prescribed
that only those employees who had been sponsored by Employment Ex-
change should alone be regularised. In our opinion, ti.tis was a reasonable 1

and wholesome requirement designed to curb and discourage back door
entry and irregular appointments. The Government orders say that all E
y those who have been sponsored by Employment Exchange or have been
appointed after issuing a public advertisement alone should be regularised. 1

We see no unreasonableness or invalidity in the same. As stated above, it
is a wholesome provision and ought not to haye been invalidated.
Moreover, as pointed out hereinbefore, it is not found by the High Court F'
that the writ petitioners were appointed ..only after obtaining a non-
availability certificate from the Employment Exchange. The decision relied
upon by the High Court does not say that even without such a certificate
from Employment Exchange, an appointment can be made or that such
appointment should be consistent with the man~te of Articles 14 and 16.
a
We must also say that the further requirement prescribed in the
orders viz., that the employees must have possessed the prescribed
· qualifications for the post at the time of his appointment on ad hoc basis
is equally a valid condition. Indeed, no exception is taken to it by the High
Court. H
,.
)

856 SUPREME COURT REPORTS [1992) 3 S.C.R.

A 15. We may now consider whether the High Court w-as justified in
holding that inasmuch as Haryana and Punjab are sister States and because
prior to 1966 Haryana was a part of Punjab, the rule relating to length of
service requisite for regularisation should be uniform in both the states.
We see absolutely no basis for the said holding. They are two different
States having their own Governments, merely because one Government
B chooses to say that one year's temporary or ad hoc service is enough for
regularisation it cannot be said that the other state must also prescribe the
very same period or that it cannot prescribe a longer or shorter period.
The fact that there is a single High Court for both the States and the Union
Territory of Chandigarh is no ground for saying that the orders issued by
c them should be uniform.

16. The learned Judges have further directed that in so far as the
State of Haryana is concerned class III and IV posts which were within the
purview of the S.S.S.B. shall equally be within the purview of regularisation
D orders issued by it. The learned Judges have pointed out that for a period
of 10 years there was no such Board functioning and further that from the
year 1970 to 1987 "most of the class III and IV posts with which we are
concerned were kept out of the purview of the S.S.S.B." The correctness
of the said factual statement is not questioned before us. It is therefore,
not necessary to alter or modify the direction made by the High Court on
E this aspect. In fact, no arguments were addressed to us with respect to the
said direction made by the High Court. If any of the petitioners have been
excluded from consideration (for regularisation) on the basis of the above
condition, they may be considered and appropriate orders passed.

F 17. Now coming to the direction that all those adhoc/temporary
employees who have continued for more than an year should be
regularised, we find it difficult to sustain it. The direction has been given
without reference to the existence of a vacancy. The direction in effect
means that every adhoc/temporary employee who has been continued for
G one year should be regularised even though (a) no vacancy is available for
him - which means creation of a vacancy (b) he was not sponsored by the
Employment Exchange nor was he appointed in pursuance of a notification \
~-
calling for applications - which means he had entered by a back-door (c)
he was not eligible and/or qualified for the post at the time of his appoint-
.ment (d) his record of service since his appointment is not satisfactory. ...
H These are in addition to some of the problems indicated by us in pare 12,
STATE v. PIARA SINGH [REDDY, J.] 857

which would arise from giving of such blanket orders. None of the decisions A
relied upon by the High Court justify such whole-sale, unconditional or- 1

ders. Moreover, from the mere continuation of an adhoc employee for one
year, it cannot be presumed that there is need for a regular post. Such a
presumption may be justified only when such continuance extends to
several years. Further, there can be no 'rule of thumb' in such matters. 1B
Conditions and circumstances of one unity may not be the same as of the
other. Just because in one case, a direction was given to regularise
employees who have put in one year's service as far as possible and subject
to fulfilling the qualifications, it cannot be held that in each and every case ,
such a direction must follow irrespective of and without taking into account ·
the other relevant circumstances and considerations. The relief must be C
moulded in each case having regard to all the relevant facts and cir-
cumstances of that case. It cannot be a mechanical act but a judicious one.
Judged from this stand point, the impugned directions must be held to be
totally untenable and unsustainable.

18. So far as the members of the work-charged establishment are D
concerned, the nature of their employment is already pronounced upon by
this court in Jaswant Singh v. Union of India, [1980] 1 S.C.R. 426.

It is statd therein:

"A work-charged establishment broadly means an astablish-
E
me.nt of which the expenses, including the wages and allowances
of the staff, are chargeable to "works". The pay and allowances
of employees who are borne on a work-charged establishment
are generally shown as a separate sub-head of the estimated
cost of the work. F
The entire strength of labour employed for the purposes of
the Beas Project was work-charged. The work-charged
employees are engaged on a temporary basis and their appoint-
ments are made for the execution of a specific work. From the I

very nature of their employment, their services automatically G
come to an end on the completion of the works for the sole
purpose of which they are employed. They do not get any relief
under the Payment of Gratuity Act nor do they receive any
retrenchment benefits or any benefits under the Employees
State Insurance Schemes. H
j

858 SUPREME COURT REPORTS (1992) 3 S.C.R.

A But though the work-charged employees are denied these
benefits, they are industrial workers and are entitled to the
benefits of' the provisions contained in the Industrial Disputes
Act. Their rights flow (rom that special enactment under which
even contracts of employment are open to adjustment and
modification. The work-charged employees, therefore, are in a
B better position than temporary servants like the other
petitioners who are liable to be thrown out of employment
·without any kind of compensatory benefits."

Be that as it may, so far as the State of Haryana is concerned, this
C contention has become of academic interest in view of the orders issued
on 24th March, 1987 and 6th April 1990, which we shall presently notice.
In view of the said orders, the direction given by the High Court becomes
unnecessary. Though the State of Punjab has not issued any such orders,
it appears from the affidavit filed on its behalf (sworn to by Sri P.C.Sangar,
D Deputy Secretary to the Government, Department· of Personnal dated
19.3.1991) that a scheme of regularisation of these employees has been
prepared in pursuance of the impugned judgment. The said scheme is,
however, not made conditional upon the result of these appeals against the
judgment. On a perusal of the scheme, we find it to be a reasonably fair
scheme. We hope and trust that irrespective of the result of these appeals,
E the said scheme shall be given effect to by the State of Punjab.

19. The High Court has also directed that all those employees who
fall within the definition of 'workmen' contained in the Industrial Disputes
Act will also be entitled to regularisation on par with the work-charged
F employees in whose case it is directed that they should be regularised on
completing five years of service in Punjab and four. years of service in
Haryana. This direction is given in favour of those cas'ual labour and daily
wagers who fall within the definition of workmen. In so far as work-charged
employees, daily wage workers and casual labourers who do not fall within
the definition of workmen are concerned, the High Court had directed
G their regularisation on ·completion of one year's service. We find this
direction as untenable as the direction in the case of adhoc/temporary
employees. In so far as the persons belonging to the above categories and
who fall within the definition of Workmen are concerned, the terms in
which the· direction has been given by the High Court cannot be sustained.
H While we agree that persons belonging to these categories continuing over
' STATE v. PIARA SINGH [REDDY, J.] 859

a number of years have a right to claim regularisation and the authorities A
are under an obligation to consider their· case for regularisation in a fair
manner, keeping in view the principles enunciated by this court, the blanket
direction given cannot be sustained. We need not, however, pursue this
discussion in view of the orders of the Government of Haryana contained
in the letter dated 6.4.1990 which provide for regularisation of these
B
persons on completion of ten years. We shall presently notice the contents
. of the said letter. In view of the same, no further directions are called for
at this stage. The Government of Punjab, of course, does not appear to
~ have issued any such orders governing these categories. Accordingly, there
shall be a direction to the Government of Punjab to verify the vacancy
position in the categories of daily wagers and casual labour and frame a c
- scheme of absorption in a fair and just manner providing for regularisation
of these persons, having regard to their length of service and other relevant
·conditions. As many persons as possible shall be absorbed. 'fhe scheme
shall be framed within six months from today.
~~-
20. So far as temporary or time-bound schemes are concerned, the D
matter is exhaustively dealt with and pronounced upon in Delhi Develop-
ment Horticulture Employees Union v. Delhi Administration, (1992) 1 J.T.
394. We need not add to it. In any event, the direction given by the High
Court with respect to this category has not been assailed before us.
E
y 21. We may also point out that after the filing of the writ petitions
and during the pendency of the Special Leave Petitions in this court, the
Government of Haryana has issued certain further orders to which refer-
ence may now be made.

(i) On 24th March 1987 the Chief Secretary to the Government of F
Haryana wrote to all the Heads of Departments and others stating the
"'<'. following : "the matter relating to the regularisation of the work charged
employees was engaging attention of the Government for some fime past.
After careful consideration it has now been decided that the services of all
the work charge employees working in the Haryana State who have com-
G,
pleted four years or more continuous service on 31.12.1986 should be
regularised". All the authorities were directed to take immediate ap-
propriate action in that behalf. (We have no reason to believe that the said
'"'\
orders will not be given effect to iµ full).

(ii) On 5th February; 1990 the Chief Secretary to the Government of H
86u SUPREME COURT REPORTS (1992) 3 S.C.R

A Haryana wrote to all the Heads of Departments and others apprising them
of the new policy and procedure evolved by the Government in the matter
of making adhoc appointments. The letter says that no adhoc appointment
shall be made in future on any posts unless a proper requisition has been
sent to Haryana Public Service Commission/Subordinate Services Selection
Board. It says further that if any ad hoc appointment is required to be made
B it shall be made only through Employment Exchange or by advertising such
post in a daily newspaper after obtaining a N.A.C. certificate from the
Employment Exchange. Such appointment even if made shall not last
beyond nine months and will be subject to a regular appointment being
inad~ by H.P .S.C./S.S.S.B.
c
(iii) In pursuance of the interim orders passed by this court in this
batch (recording the undertaking given by the· counsel for the State of
Haryana to frame a scheme for absorption) the Government of Haryana
did frame such a scheme contained in the Chief Secretary's letter dated~
6.4.1990 addressed to all the Heads of Department: It coverslhe ad hoc >.-_
D employees, work charged employees, casual workers/daily rated employees,
workmen, ad hoc/temporary employees in temporary organisation as also
seasonal workers. It is but appropriate that we set out the said letter in full:

No. 6/4/90-2GSI

E From
-,-:
The Chief Secretary to Govt., Haryana

To ,....
F 1. All Head of Departments, Commissioner Ambala, Hisar,
Rohtak and Gurgaon Divisions and all the Deputy Commis-
sions in the State.
7
2. The Registrar, Punjab and Haryana High Court, Chandigarh.

G Dated Chandigarh, the

Subject: Policy regarding regularisation of adhoc/work-charged
employees and causal/daily wagers etc.
r
·········································
H Sir,

...
~
STATE v. PIARA SINGH [REDDY, J.) 861

I am directed to refer to the subject noted above and to state A
that the matter regarding laying down the policy with regard
-i. to regularization of the services of Class-III ad hoc employee&,
work-charged/daily wagers etc. has been under comideration
of Govt. for some time past. After careful consideration, it has
been decided that the regularization of these employees shall
B
be .on the following terms and conditions:-

Category-I, Adhoc employees

(i) Only such afDwc class-III employees, who have completed
two years service on 30.9.1988, shall be regularized to the
'C
extent of available regular posts/vacancies on that date.

(ii) The work and conduct of such employees should have been
over-all good category and no disciplinary proceedings are
pending against them.
A (iii) The employees possess the prescribed qualifications for
D
.. the post at the time of their appointment on adhoc basis.

(iv) The regularization will be against the posts/vacancies of the
relevant categories only and in case, the employees belong-
ing to general category have been appointed against E
reserved category posts/vacancies the services of such adhoc
appointees shall not be regularized and their services shall
be terminated in case, no general category vacancy/post (s)
is available on 30.9.88.

(v) The recommendees of the SSS Board shall be absorbed F
against the remaining vacancies if any. The names of such
remaining recommendees as cannot be absorbed shall be
'-< returned to the Board to enable it to recommend their
names to other departments for appointment against the
clear vacancies.
G
(vi) After !egularization of adhoc amployees under the policy,
if some posts/vacancies still remain unfilled, these shall be
filled in from· the recommendees of the SSS Board, if any.
'i If some shortfall remains even after than, the procedure laid
down in the insts. issued vide No.50/35/88-5GSI, dated H
862 SUPREME COURT REPORTS [1992] ,3 S.C.R.

A 5.2.90 shall be followed, for making up the shortfall, if fek
necessary.

(vii) The employees, who are not covered under the above
policy, their services shall be terminated.

B (viii) The seniority of the adhoc class-III employees so
regularised viz-a-viz class-III employees appointed on
regular basis shall be determined w.e.f. 30.9.88. The inter-se
seniority of such adhoc Class-III employees shall be deter-
mined in accordance with the date of joining the post on
adiJ.o_c basis. If the date of joining the post (s), on adhoc
c ~basis by such adhoc employees was the same, then the elder
employee shall rank senior to an employe younger in age.
If the date of joining the direct recruit and the date of
regularization is the same, the direct recruit shall be senior.

D Categary-IL Work-Charged employees.

The work-charged employees who have completed 4 or
more years of continuous service as on 30.9.88 shall be
regularised. On regularization these employees shall be liable
for transfer anywhere in the State of Haryana on any
E project/work.

Category-Ill Casual Workers/Daily rated employees

With regard to these employees, the following policy will be
followed:
F
(i) Casual/daily rated employees appointed on or before
30.9.1983 shall be treated as monthly rated established
employees on a fixed pay of Rs. 750 (minimum of Class-IV
pay scale) or the rates as fixed by the Deputy Commission
concerned p.m. without any allowance w.e.f. 1.10.88. They
G shall be entitled to an annual increment of Rs: 12 till their
services are regularized. On regularization, they shall be put
in the time scale of pay applicable to the lowest Group 'D'
in the Govt. and they would be entitled to all other allowan-
ces and benefits available to regular Govt. servants of the
H corrosponding grade.
~

STATE v. PIARASINGH (REDDY,J.] 863

(ii) The casual or daily rated employees, who have completed A
10 years or more of service on 30.9.88 shall be regularized
w.e.f. 1.10.88 on the basis of seniority-cum- suitability.

(iii) In respect of all such daily rated employees who have not
yet completed 5 years service, a special review should be
carried out regarding the requirement of their continuance B
or retrenchment as the case may be.

(iv) In the case of those, who are required to be continued in
service, the same t~rms and conditions will be applicable as
in sub-paras (i) & (ii) above on completion of 5 years and
10. years service respectively.
c
I

(v) In the case of those whose services are no longer required,
they may be relieved of their duties at the earliest possible.
_A
Category-W. Workmen.
0
The employee, who come within the definition of 'Work-
men'under the Industrial Disputes Act, shall be entitled to the
benefits under the Act and their services should be dispensed
· with only after following the procedure laid down in the Act
and after granting the requisite retrenchment benefits. E
y
Category-V. Ad/we/temporary employees in temporary organiza-
tion.
~
The services of the employees working in temporary or-
ganization can be terminated at the abandonment of the F
scheme and they will not be eligible for regularization.

Category-VI. Seasonal workers.

The services of seasonal workers appointed as daily wager
or on work-charged basis shall not be regularized and they will G
be retrenched on completion/abandonment of the work.

-<. 2. The above policy may be brought to the notice of all con-
cerned for strict compliance.

Yours faithfully, H
864 SUPREME COURT REPOR'fS [1992] 3 S.C.R.

A sd/-
Under Secretary General Administration
for Chief Secretary to Government, Haryana.

(iv) On 28th February, 1991, yet another order has been issued by
the Governor of Haryana under the proviso to Article 309 of the Constitu-
B tion providing for regularisation of class III employees who have put in
service of two years on 31st December, 1990 subject to usual conditions.
This order reads as follows:

"Notification
c The 28th February, 1991

No. G.S.R. 11/Const./Art. 309/91.- In exercise of the powers
conferred by the proviso to article 309 of the Constitution of
India read with the proviso to clause 6 of Haryana Government,
General Administrati.on Department (General Services),
D notification No. 523-3 GSI-70/2068, dated the 28th January,
1970 the Governor of Haryana hereby specifies such Class III
posts as have been held for a minimum period of two years on
the 31st December, 1990, by Class III employees on ad hoc
basis to be taken out of the purview of the Subordinate Services ·
E Selection Board, Haryana and their services shall be
regularised if they fulfil the following conditions, namely:-

(i) that the employees have completed two years service on 31st
December, 1990, and were in service on 31st December,
1990;
F
(ii) that the employees shall be regularised against the
posts/vacancies of relevant categories. The employees of
general category may be regularised in excess of their quota
with the clear stipulation that in futlire recruitments only
the candidates from reserve categories will be appointed
G
until the back log arising out of utilisation of reserve
category vacancies by ge1:1eral category ad hoc employees is
cleared:

(iii) that the employees should have been recruited through the
H Employment Exchange or directly appointed by the ap-
STATE v. PIARA SINGH [REDDY, J.] 865

pointing authority after obtaining the non-availability cer- A
tificate from the Employment Exchange;

(iv) that the work and conduct of such employees shall be of
over all good category and no disciplinary proceedings are
pending against them, and
B
(v) that the employees possessed the prescribed qualifications
for the post at the time of their appointment on ad hoc
basis.

2. The seniority of the ad hoc Cla-..:. ill employees so C 1

regularised, viz-a-viz, the Class Ill employees appointed on
regular basis shoUld be determined with effect from 31st
December, 1990. The inter-se-seniority of such ad hoc Class III
employees shall be determined in accordance with the date of
their joining the post on ad hoc basi~. If the date of joining the
post (s) on ad '1_oc basis by such ad hoc employees was the D
same, the an old employees shall rank senior tu an employee
younger in age. If the date of appointment of the direct recruit
and the date of regularisation of ad hoc employees is the same,
the direct recruit shall be senior.
E
KULWANT SINGH

Chief Secretary to Government
Haryana."

22. So far as the Punjab Government is concerned, an affidavit sworn F
~ to by Sri G.K. Bansal, Under Secretary to the Government, Department of
Personnal, Government of Punjab has been filed before us stating that the
instructions issued by the Haryana Government for regularisation of the
services of class III ad hoc employees contained in their notification dated
28.2.1991 shall be adopted by the Punjab Government mulatis mutandis. G
The relevant portion of the affidavit may be extracted herein below:

"The policy instructions for the regularisation of services of
Class-III adhoc employees issued by Haryana Government vide
their notification dated 28/2/91 mutatis mutandis will be
adopted as under:- H
866 SUPREME COURT REPORTS [1992) 3 S.C.R.

A (i) That the adhoc/temporarily appointed employees should
have completed a minimum of two years service on 31/12/1990
and was in service on 31/12/90. While calculating the period of
service, any break of notional nature not exceeding 30 days
falling between adhoc/temporarily appointments in the same
category of post (s) and in the same Department is to be
B ignored. However, the break in adhoc/temporary service would
be ignored in cases where:

(a) The employee concerned left service of his own volition
either to join some other Department or for some other
c reasons, or

(b) the adhoc/temporary appointment was against a post/vacan-
cy for which no regular recruitment was intended/required to
be made e.g. leave arrangements for filling of other short-term
vacancies.
D.
(ii) that they fulfil the conditions of eligibility as prescribed (i.e.
they have been recruited through the Employment Exchange
or by open advertisement) academic qualifications, experience
and the condition of age at the time of their first/adhoc/tem-
porary appointment in accordance with the Departmental ser-
E vice rules and instructions issued by the government.

(iii) that their record of service is satisfactory.

(iv) that they have been found medically fit for entry into
Govermnent service and that their character and antecedents
F
have also been duly verified and found suitable for Government
service;

(v) that a regular post/vacancy is available for regularisation;

(vi) that they have been. found fit for regularisation by the -
G
Departmental Selection Committees constituted in accordance
with the instructions contained in Government circular letter
No. 12/30/86/IGE/5139 dated 15/4/86; 'r
(vii) The seniority of the adhoc/temporarily appointed class-III
H employees so regularised vis-a-vis class-III employees ap-
STATE v. PIARA SINGH [REDDY, J.) 867

pointed on regular basis shall be determined w.e.f. 31.12.90. A
The inter-se seniority of such adhoc/temporarily appointed
class- III employees shall be determined in accordance with the
date of their joining the post on adhoc/temporary basis. If the
d~ie of joining the post(s) on adhoc/temporary basis by such
adhoc/temporarily appointed employees was the same then an
older emplo~ee shall rank senior to an employee younger in
B
age. If the date of joining of the direct recruit and the date of
regularisation of adhoc-temporarily appointed employee is the
same, the direct recruit shall be senior;

The cases of such adhoc/temporarily appointed employees who C
have already completed three years service on 31st December,
90 and have satisfactory record of service but who do not fulfil
the prescribed conditions with regard to qualifications, age or
mode of their initial recruitment will also be considered for
regularisation in relaxation of these conditions if the D
Departmental Service Rules applicable to these employees
provide for relaxation of these conditions of recruitment."

We are sure that many of the employees would get regularised under
the orders aforementioned issued by both the Governments.
E
23. This is not a case, we must reiterate, where the Governments have

-
failed to take any steps for regularisation of their adhoc employees working
over the years. Every few years they have been issuing orders providing for
regularisation. In such a case, there is no occasion for the court to issue
any directions for regularising such employees more particularly when none
F
of the conditions prescribed in the said orders can be said to be either
unreasonable, arbitrary or discriminatory. The court cannot obviously help
those who cannot get regularised under these orders for their failure to
satisfy the conditions prescribed ther~in. Issuing general declaration of
indulgence is no part of our jurisdiction. In case of such persons we can G
only observe that it is for the respective Governments to consider the
feasibility of giving them appropriate relief, particularly in cases where
persons have been continuing over a long number of years, and were
eligible and qualified on the date of their adhoc appointment and further
whose record of service is satisfactory. H
868 SUPREME COURT REPORTS (1992] 3 S.C.R.

A 24. With respect to direction No. 8 (equal pay fdr equal work) we
find the judgment singul~rly devoid of any discussion. The direction given ~
is totally vague. It does not make ·it clear who will get what pay and on
what basis. The said direction is liable to be set aside on this account and
is, accordingly, set aside.
B In the matters posted before and heard by us, there are several
S.L.Ps. preferred against orders of the High Court allowing writ petitions
folloWing the judgment in Piara Singh. Leave is granted in all such matters
·as well and the appeals allowed in the same terms as the appeals against
the judgment in Piara Singh.
c
25. Before parting with this case, we think it appropriate to say a few
words concerning the issue of regularisation of adhoc/temporary employees
in government service.

D The normal rule, of course, is regular recruitment through the
prescribed agency but exigencies of administration may sometimes call for
an adhoc or temporary appointment to be made. In such a situation, effort
should always be to replace such an adhoc/temporary employee by a
regularly selected employee as early as possible. Such a temporary
employee may also compete along with others for such regular selec-
E tion/appointment. If he gets selected, well and good, but if he does not, he
must give way to the regularly selected candidate. The appointment of the
regularly selected candidate cannot be witheld or kept in abeyance for the
sake of such an adhoc/temporary employee.

F Secondly, an adhoc or temporary employee should not be replaced
by another adhoc or temporary employee; he must be replaced only by a
re6Ularly selected employee. This is necessary to avoid arbitrary action on
the part of the appointing authority.

Thirdly, even where an adhoc or temporary employment is neces-
G sitated on account of the exigencies of administration, he should ordinarily
be drawn from the employment exchange unless it cannot brook delay in
which case the pressing cause must be stated on the file. If no candidate
is available or is not sponsored by the employment exchange, some ap- ~
propriate method consistent with the requirements of Article 16 should be
H followed. In other words, there must be a notice published in the ap-
STATE v. PIARA SINGH [REDDY, J.] 869

propriate manner calling for applications and all those who apply in A
response thereto should be considered fairly.

An unqualified person ought to be appointed only when qualified
persons are not available through the above processes.

If for any reason, an adhoc or temporary employee is continued tor
B
a fairly long spell, the authorities must consider his case for regularisation
provided he is eligible and qualified according to rules and his service
record is satisfactory and his appointment does not run counter to the
reservation policy of the State.
c
- The proper course would be that each State prepares a scheme, if
one is not already in vogue, for regularisation of such employees consistent
with its reservation policy and if a scheme is already framed, the same may
be made consistent with our observations herein so as to reduce avoidable
litigation in this behalf. If and when such person is regularised he should D
be placed immediately below the last regularly appointed employee in that
category, class or service, as the case may be.

So far as the work-charged employees and casual labc;mr are con-
cerned, the effort must be to regularise them as far as possible and as early
as possible subject to their fulfilling the qualifications, if any, prescribed E
for the post and subject also to availability of work. If a casual labourer is
continued for a fairly long spell - say two or three years - a presumption
may arise that there is regular need for his services. In such a situation, it
becomes obligatory for the concerned authority to examine the feasibility
of his regularisation. While doing so, the authorities ought to adopt a F
positive approach coupled with an empathy for the person. As has been
repeatedly stressed by this court, security of tenure is necessary for an
employee to. give his best to the job. In this behalf, we do commend the
orders of the Government of Haryana (contained in its letter dated 6.4.90
referred to hereinbefore) both in relation to work-charged employees as
well as casual labour. G

We must also say that the orders issued by the Governments of
Punjab and Haryana providing for regularisation of adhoc/temporary
employees who have put in two years/one year of service are quite generous
and leave no room for any legitimate grievance by any one. H
_j
/

870 SUPREME COURT REPORTS (1992) 3 S.C.R.

A These are but a few observations which we thought it necessary to
')(
make, impelled by the facts of this case, and the spate of litigation by such
employees .. They are· not exhaustive nor can they be understood as im-
mutable. Each Government or authority has to devise its own criteria or
principles for regularisation having regard to all the relevant circumstances,
but while doing so, it should bear in mind the observations made herein.
B
26. So far as the employees and workmen employed by Statutory/
Public Corporations are concerned, it may be noted that they have not
issued any orders akin to those issued by the Punjab and Haryana Govern- +
ments. Even so, it is but appropriate that they adopt as far as possible,
c
keeping the exigencies and requirements of their administration in view,
the criteria and principles underlyfug the orders issued by their Govern-
ment in the matter of regularisation and pas~ appropriate orders. In short,
the Statutory/Public Corporations in Haryana will follow the orders con-
tained in the letter dated 6.4.1990 referred to above, as supplemented by
the orders in the Notification dated 28.2.1991,"whereas the Statutory/Public ,l...
D
Corporations in Punjab shall follow the criteria and principles stated in the
affidavit of Sri G.K. Bansal, Under Secretary to the Government of Punjab,
Department of Personnel referred to in para 22 above. These directions
shall not, however, apply to these Statutory/Public Corporations function-
ing within these States as are under the control of the Government of India.
E These Corporations will do well to evolve an appropriate policy of
regularisation, in the light of this judgment, if they have not already evolved ~
one, or make their existing policy consistent with this judgment to avoid
litigation.
~

F 27. For the above reasons, all the appeals are allowed and the orders
under appeal are set aside. The directions given by the High Court in the .
judgment in W.P.(C) No .. 72/88 namely direction Nos. 1,2,3,4,6 and 8 are
set aside. The only direction given herewith is the one contained in para
r
19.

G The writ petitions seeking the benefits given in the judgment under
appeal are dismissed.

No costs. r
H N.P.V. Appeals disposed of.