THE DIVISIONAL MANAGER APSRTC & ANR.versusB. VENKATAIAH

                        [2018] 14 S.C.R. 1257                              1257


        THE DIVISIONAL MANAGER APSRTC & ANR.                               A
                                   v.
                         B. VENKATAIAH
                   (Civil Appeal No. 12246 of 2018)
                        DECEMBER 07, 2018                                  B
        [DR. DHANANJAYA Y CHANDRACHUD AND
                         M. R. SHAH, JJ.]
       Labour Laws: Continuity of service – Benefit of – On facts,
respondent appointed as driver on contract – Allegation of
misconduct – Disciplinary enquiry against workman – Termination            C
from service – However in departmental review, workman granted
fresh appointment/re-engagement – Writ petition by workman seeking
continuity of service from date of the earlier termination until re-
engagement – Allowed by the Single Judge of the High Court relying
on the order in earlier case – Upheld by the Division Bench – On
appeal, held: Continuity can be granted when an order of                   D
termination is set aside, to ensure that there is no hiatus in service –
On facts, workman did not choose to assail either the termination
of his services following the enquiry or the fresh appointment –
Hence, once a fresh appointment was given to the respondent and
neither the termination nor the fresh engagement was challenged,           E
the grant of continuity of service by the High Court was
misconceived – Furthermore, the Single Judge as well as the Division
Bench lost sight of the facts of each individual case.
        Disposing of the appeal, the Court
      HELD: 1.1 The order of the Single Judge was exclusively              F
based on the earlier decision dated 29.02.2012. The judgment of
the Single Judge indicates that the earlier case also dealt with
persons who were working as contract employees who were
appointed after a regular selection. In some cases, termination
orders were passed without an enquiry on allegations of
misconduct while in other cases, an enquiry was conducted.                 G
[Para 7][1260-E-F]
      1.2 In the instant case, the workman did not choose to assail
either the termination of his services following the enquiry or
the fresh appointment. All that was sought was that he should
have the benefit of continuity of service from the date of the earlier     H
                                 1257
1258               SUPREME COURT REPORTS                  [2018] 14 S.C.R.


 A     termination until re-engagement. Such a direction could not have
       been issued by the Single Judge without the termination being
       put into question. Grant of continuity was not sustainable for the
       simple reason that unless the order of termination and of the
       fresh appointment were challenged and adjudicated upon,
       seniority would necessarily have to count with effect from the
 B     date of the fresh appointment. As a matter of principle, continuity
       can be granted when an order of termination is set aside, to ensure
       that there is no hiatus in service. [Para 8, 9][1261-F-H; 1262-A]
             1.3 The appellant recruited personnel like the present
       respondent on contract after a regular process of selection.
 C     Eventually, the contract employees are to be regularised. Granting
       continuity of service to a person such as the respondent, who
       was found to have committed misconduct, would place him on
       the same footing as other contractual employees who have a
       record without blemish. Hence, once a fresh appointment was
       given to the respondent and neither the termination nor the fresh
 D     engagement was placed in issue, the grant of continuity of service
       by the High Court was manifestly misconceived. [Para 10]
       [1262-A-B]
             1.4 The earlier order of the Single Judge was in a batch of
       cases, where termination orders were issued without holding an
       enquiry in certain cases and after holding an enquiry in others,
 E     though in violation of the principles of natural justice. It was in
       that view of the matter that the direction contained in the
       operative order provided that in cases where no enquiry was
       conducted, the Corporation would be at liberty to conduct an
       enquiry in accordance with law, on the allegations of misconduct.
 F     There is a considerable degree of merit in the submission that in
       deciding the entire batch of cases by a common order, the Single
       Judge as well as the Division Bench unfortunately lost sight of
       the facts of each individual case. [Para 11, 12][1262-C-F]
             CIVIL APPELLATE JURISDICTION : Civil Appeal No. 12246
       of 2018.
 G           From the Judgment and Order dated 30.12.2013 of the High Court
       of Judicature of Andhra Pradesh at Hyderabad in Writ Appeal No.
       1959 of 2013.
             Gourab Banerji, Sr. Adv., Sriharsha Peechara, Arjun Krishnan,
       Ashish Tiwari, Ms. Manisha Singh, Ms. Raka, C.S.N. Mohan Rao,
 H     Tanmaya Agarwal, A.N. Arora, Raj Kishor Choudhary, Advs. for the
       appearing parties.
       THE DIVISIONAL MANAGER APSRTC & ANR. v.                                 1259
                    B. VENKATAIAH

      The Judgment of the Court was delivered by                               A
      M. R. SHAH, J.
      1. Leave granted.
       2. Feeling aggrieved and dissatisfied with the judgment and order
dated 30.12.2013 passed by the Division Bench of High Court of judicature
of Andhra Pradesh at Hyderabad in Writ Appeal No.1959 of 2013 by               B
which the Division Bench has affirmed the judgment and order passed
by the learned Single Judge dated 01.08.2012 passed in Writ Petition
No. 23552 of 2012, the original respondent-appellants herein-corporation
have preferred the present appeal.
      3. The facts leading to the present appeal in nutshell are as under:     C
       a. That the respondent herein was appointed as driver on contract,
after undergoing a process of selection. He was working in Mushirabad-
I Depot, Hyderabad.
      b. That a departmental enquiry was initiated against the workman.
      c. That following the report of the Enquiry Officer his service          D
came to be terminated.
       d. After the dismissal of the departmental appeal and in the course
of the departmental review, the Divisional Manager issued an order for
the re-engagement of the respondent on contract on 27.04.2011.
       e. After his re-engagement the respondent initiated the jurisdiction    E
of the High Court under article 226 of the Constitution of India and
prayed to consider the order/proceedings dated 27.04.2011 and prayed
for the continuity of service appointment benefits and all consequential
benefits including regularization.
        4. The learned Single Judge allowed the petition, holding that the     F
matter was not res integra and was covered by an earlier judgment of
a learned Single Judge dated 29.02.2012 in Writ Petition No.2786 of
2012. Though on behalf of the Corporation an effort was made to
distinguish the earlier decision on the ground that in the present case a
full-fledged enquiry has been held, this distinction did not find acceptance
                                                                               G
by the learned Single Judge. On the contrary, it was held that in the
previous case, the learned Judge had found that the enquiry was not in
keeping with the principles of natural justice. Moreover, in the view of
the Single Judge, once the Corporation had granted a largesse in the
form of a fresh employment, the workman should not be deprived of the
benefit of continuity of service for the limited purpose of regularisation.    H
1260                 SUPREME COURT REPORTS                      [2018] 14 S.C.R.


 A     Hence, in terms of the direction in the earlier decision, the petition was
       disposed of by directing the Corporation to extend the benefit of continuity
       of service to the workman from the date of termination until the date of
       his re-engagement except for the period when he was absent. This was,
       however, without any monetary benefit and was directed to count only
       for regularisation.
 B
             5. The above order of the learned Single Judge was affirmed by
       the Division Bench in a Writ Appeal.
              6. Mr. Gourab Banerji, learned senior counsel appearing on behalf
       of the appellants submits that there was a manifest error on the part of
       both the learned Single Judge and the Division Bench. In the present
 C     case, a disciplinary enquiry was held against the workman after which
       an initial decision was taken to terminate him from service. In a
       departmental review, he was granted fresh appointment. Neither the
       termination nor the order granting him fresh appointment as a contract
       driver were challenged. As a matter of fact, it has also been submitted
 D     that in certain other cases, the workmen had taken recourse to
       proceedings before the Industrial Court but in the present case that was
       not done. Be that as it may, the learned Single Judge relied on the earlier
       decision and issued directions, to govern the entire batch of cases. This
       direction was confirmed by the Division Bench without having regard to
       the facts of individual cases.
 E
              7. Since the order of the learned Single Judge in the present case,
       was exclusively based on the earlier decision dated 29.02.2012, a copy
       of that judgment has been placed on the record. The judgment of the
       Single Judge indicates that the earlier case also dealt with persons who
       were working as contract employees who were appointed after a regular
 F     selection. In some cases, termination orders were passed without an
       enquiry on allegations of misconduct while in other cases, an enquiry
       was conducted. The learned Single Judge, issued the following directions
       in terms as agreed in that case:
                “(1) In cases where the appellate/revisional authority has
 G           directed re-engagement of the contract employees as fresh
             employees, such employees shall be entitled to benefit of continuity
             of service from the date of termination till the date of
             re-engagement, except for the period during which they were
             absent, and the said continuity of service granted to the employees
             shall be without any monetary benefit and shall be counted only
 H           for the purpose of regularization at a future date.
       THE DIVISIONAL MANAGER APSRTC & ANR. v.                                 1261
             B. VENKATAIAH [M. R. SHAH, J.]

          (2) The continuity of service so ordered in para (1) shall not,      A
      however, be counted for the purpose of seniority and shall not be
      allowed to affect the seniority of regularly working employees or
      for other benefits, but shall be counted only for the purpose of
      considering their cases for regularization.
         (3) There are also cases where the orders of termination are          B
      challenged, either before the appellate/revisional authorities or
      before this Court, after six or seven years of date of termination.
      In all such cases the benefit of continuity of service without any
      monetary benefit and re-engagement so ordered in para (1) shall
      be available to only to such of those employees who have
      approached the appellate/revisional authorities or this Court within     C
      three years from the date of termination.
         (4) In cases where appeals/revisions or writ petitions are filed
      after three years of the orders of termination, it is directed that
      the such petitioner/s shall be considered for re-engagement as
      fresh contract employee/s, subject to medical fitness and other          D
      formalities, but he/they shall not be entitled to continuity of past
      service as under para-(1) above.
         (5) In cases where contract employees have preferred appeals/
      revisions, but no orders have been passed therein, the appellate/
      revisional authorities shall entertain and dispose of those appeals/
                                                                               E
      revisions in the light of the directions referred to above, preferably
      on or before 31st March, 2012.
          (6) In cases where no enquiry was conducted, the respondent
      - Corporation shall be free to conduct enquiry as per law into the
      allegations of unauthorised absence of its employees from duty or
      other allegations of misconduct.”                                        F
      8. In the present case, the workman did not choose to assail either
the termination of his services following the enquiry or the fresh
appointment. All that was sought was that he should have the benefit of
continuity of service from the date of the earlier termination until
re-engagement.                                                                 G
      9. Such a direction could not have been issued by the learned
Single Judge without the termination being put into question. The grant
of continuity was not sustainable for the simple reason that unless the
order of termination and of the fresh appointment were challenged and
adjudicated upon, seniority would necessarily have to count with effect        H
1262                  SUPREME COURT REPORTS                      [2018] 14 S.C.R.


 A     from the date of the fresh appointment. As a matter of first principle,
       continuity can be granted when an order of termination is set aside, to
       ensure that there is no hiatus in service.
               10. There is another reason why the judgment of the High Court
       cannot be sustained. It is common ground that the appellant has recruited
 B     personnel like the present respondent on contract after a regular process
       of selection. Eventually, the contract employees are to be regularised.
       Granting continuity of service to a person such as the respondent, who
       was found to have committed misconduct, would place him on the same
       footing as other contractual employees who have a record without
       blemish. Hence, once a fresh appointment was given to the respondent
 C     and neither the termination nor the fresh engagement was placed in
       issue, the grant of continuity of service by the High Court was manifestly
       misconceived.
              11. We may also note that the earlier order of the learned Single
       Judge dated 29.02.2012 was in a batch of cases, where termination
 D     orders were issued without holding an enquiry in certain cases and after
       holding an enquiry in others, though in violation of the principles of natural
       justice. It was in that view of the matter that the direction contained in
       Clause 6 of the operative order provided that in cases where no enquiry
       was conducted, the Corporation would be at liberty to conduct an enquiry
       in accordance with law, on the allegations of misconduct.
 E
             12. We find a considerable degree of merit in the submission of
       learned senior counsel appearing on behalf of the Corporation that in
       deciding the entire batch of cases by a common order, the learned Single
       Judge as well as the Division Bench unfortunately lost sight of the facts
       of each individual case.
 F            13. For the above reasons, we allow this appeal and accordingly,
       set aside the impugned judgment and order dated 30.12.2013 of the
       Division Bench passed in Writ Appeal No.1959 of 2013 as well as the
       judgment and order passed by the learned Single Judge which was
       impugned before the Division Bench in Writ Appeal No.1959 of 2013.
 G     The seniority of the respondent workman shall be counted with effect
       from the date of his fresh appointment in the service of the Corporation.
                The appeal is, accordingly, disposed of in the above terms. No
       costs.


 H     Nidhi Jain                                                   Appeal disposed of.