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Supreme Court of India

UNION OF INDIA AND ORS.versusVARTAK LABOUR UNION

Citation
2011 INSC 182
Decided
4 March 2011
Disposal
Appeal(s) allowed

Holding

The Office Memo is not a final scheme and cannot be treated as an enforceable right; casual workers are not entitled to regularisation absent a proper statutory scheme, and the High Court’s directions are set aside.

Summary

The Vartak Labour Union, representing casual workers of the Border Roads Organisation (BRO), sought a writ directing the Union of India to regularise its members who had worked for up to forty years. The Gauhati High Court, relying on a 2001 Office Memo, ordered regularisation, which was later modified and upheld by a Division Bench. On appeal, the Supreme Court examined whether the Office Memo constituted a final, enforceable scheme and whether casual workers could be regularised absent a statutory recruitment process. The Court held that the Memo was merely an inter‑departmental communication, not a sanctioned scheme, and that casual employment terminates when discontinued; therefore, length of service alone does not create a right to regularisation. Consequently, the High Court’s directions were set aside, and the appeals were allowed. The Court suggested that the Union of India consider enacting an appropriate regulation for regularising such workers.

Issues considered

  • Whether the Office Memo dated 2 February 2001 is a final, legally enforceable scheme for regularisation of BRO casual workers or merely an inter‑departmental communication.
  • Whether a court can direct the regularisation of casual employees in the absence of a scheme approved under the relevant recruitment rules.
  • Whether casual workers, despite long periods of service, are entitled to regularisation under Articles 14, 16 and 21 of the Constitution.

Subjects

regularisationcasual labourinter‑departmental communicationadministrative lawemployment lawBorder Roads Organisationpolicy schemeconstitutional rightsArticles 14, 16, 21

Judgment

•                   [2011] 4 S.C.R. 509


              UNION OF INDIA AND ORS. ·                     A
                            V.
                  VARTAK LABOUR UNION
          (Civil Appeal Nos.2129-2130 of 2004)
                     MARCH 4, 2011
                                                            B
           [D.K. JAIN AND H.L. DATIU, JJ.]

    Labour Law:

     Regularization - Border Roads Organization (BRO) - c
Respondent-trade union filed writ petition seeking
regularization of casual labourers employed by BRO - High
Court directed appellant No. 1 to regularize such casual
workers on basis of an Office Memo, purportedly issued by
the appellants - Direction challenged - Held: The High Court 0
erroneously construed the said Office memo as an approved
scheme for absorption and regularization of the casual
workers - The said Office Memo was merely in the nature of
an inter-department communication between the Border
Roads Development Board headquarters and its officials - E
Claim for regularization of casual workers; merely because
they had been working for BRO for a considerable period of
time, cannot be granted - Casual employment terminates
when the same is discontinued, and merely because a
temporary or casual worker was engaged beyond the period
of his employment, he would not be entitled to be absorbed F
in regular service or made permanent, if the original
appointment was not in terms of the process envisaged by the
relevant rules.

     Regularisation - Casual workers engaged by Border G
Roads Organization (BRO) for thirty to forty years, with short
breaks - Need for appropriate regulation/scheme - Union of
India to consider enacting an appropriate regulation/scheme

                            509                             H
    510     SUPREME COURT REPORTS                [2011] 4 S.C.R.    •
A for absorption and regularization of the services of the casual
  workers engaged by BRO.
        Administrative Law - Administrative policy - Inter-
  departmental communications and notings in departmental
8 files - Held: Do not have the sanction of law and do not create
  a legally enforceable right.
         The respondent, a registered trade union comprising
    of casual workers employed by the Border Roads
    Organization (BRO), filed writ petition before the High
C   Court praying for issuance of a writ, inter-alia, directing ·
    appellant No.1 viz. Union of India to regularize the
    services of the members of the respondent. A Single
    Judge of the High Court allowed the writ petition, and
    directed appellant No.1 to regularize the services of the
D   members of the respondent who had been in service for
    more than five years. In writ appeal, the Division Bench
    of the High Court modified the order of the Single Judge
    on the basis of circular dated 25th May, 1988 issued by
    D.C' G. (P&V), for and on behalf of the Director General
E   Border Roads, New Delhi to all Chief Engineers for
    consideration of regularizat •.ln of casually paid labourers
    employed by the BRO. Aggrieved by the directions of the
    Division Bench, the appellants preferred appeal before
    this Court. This Court remanded the matter back to the
F   Division Bench.

       During the course of fresh hearing of the writ appeal
  before the Division Bench, the Central Government
  counsel on behalf of the appellants stated that pursuant
  to circular dated 25th May 1988, the appellants had
G framed a scheme vide Office Memo No.Sectt. BRDB ID
  No. BRDB/04(90)/99-GE-11 dated 2nd February, 2001, for
  the welfare of casually paid employees. Upon perusal of
  the scheme and recording the satisfaction of the counsel
  appearing for the respondent-Union, the Court observed
H
•   UNION OF INDIA AND ORS. v. VARTAK LABOUR
                      UNION
                                                        511


 that the scheme had been framed on a rational basis.          A
 Accordingly, disposing of the writ appeal on the basis of
 the said office memo, the Division Bench directed
 appellant no.1 to regularize the services of the members
 of the respondent Union, employed by BRO, as
 postulated in Office Memo No. Sectt. BRDB ID No. BRDB/        B
 04(90)/99-GE-11 dated 2nd February, 2001. Review
 application filed by the appellants was dismissed.

       In the instant appeals, the question which arose for
  consideration were: 1) whether the office memo dated C
  2nd February, 2001 was merely in the nature of an inter-
. departmental communication between the Border Roads
  Development Board headquarters and its officials and the
  High Court erred in treating such communication as a
  final scheme for regularization of the casual labourers
  and 2) whether formulation of any scheme for D
  regularisation being a matter of policy, it is not within the
  domain of the Court to direct regularisation of temporary
  appointees de hors the recruitment rules.
      Allowing the appeals, the Court                          E
      HELD:1. It is trite that inter-departmental
 communications and notings in departmental files do not
 have the sanction of1 law, creating a legally enforceable
 right. The Division Bench of the High Court erroneously
 construed the Office memo dated 2nd February, 2001 as         F
 an approved scheme for absorption and regularization of
 the casual workers. It is manifest from a bare reading of
 the said memo that it was merely in the nature of an inter-
 departmental communication between the Border Roads
 Development Board headquarters and its officials. There       G
 is no substance in the stand of the respondent that the
 appellants are withholding the approved scheme from
 this Court. The plea of the respondent that a final scheme
 did come into existence on 2nd February 2001, stands
                                                               H
   512     SUPREME COURT REPORTS              [2011] 4 S.C.R.    •
A belied from the letter of the Border Roads Development
  Board dated 22nd July 2002. [Paras 13, 14) (519-C-E; 520-
  B-C]

       Sethi Auto Service Station & Anr. Vs. Delhi Development
B Authority & Ors. (2009) 1 SCC 180; Jasbir Singh Chhabra &
  Ors. Vs. State of Punjab & Ors. (2010) 4 SCC 192 - relied
   on.

       Indian Drugs & Pharmaceuticals Ltd. Vs. Workmen,
  Indian Drugs & Pharmaceuticals Ltd. (2007) 1 SCC 408; R.
C Viswan & Ors. Vs. Union of India & Ors. (1983) 3 SCC 401 -
   referred to.

       2. The respondent Union's claim for regularization of
  its members merely because they have been working for
D BRO for a considerable period of time cannot be granted
  in light of several decisions of this Court, wherein it has
  been consistently held that casual employment
  terminates when the same is discontinued, and merely
  because a temporary or casual worker has been
E engaged beyond the period of his employment, he would
  not be entitled to be absorbed in regular service or made
  permanent, if the original appointment was not in terms
  of the process envisaged by the relevant rules. In light
  of the settled legal position and on a conspectus of the
  factual scenario, the impugned directions by the High
F Court cannot be sustained. These are set aside
  accordingly. (Paras 16, 19) [521-A-B; 523-A-B]

       Secretary, State ofKarnataka & Ors. Vs. Umadevi (3) &
  Ors. (2006)4 SCC 1; Official Liquidator Vs. Dayanand & Ors.
G 2008) 10 SCC 1; State of Karnataka & Ors. Vs. Ganapathi
  Chaya Nayak & Ors. (2010) 3 SCC 115; Union of India & Anr.
  Vs. Kartick Chandra Monda/ & Anr.; Satya Prakash & Ors. Vs.
  State of Bihar & Ors. (2010) 4 SCC 179; Rameshwar Dayal
  Vs. Indian Railway Construction Company Umited & Ors.
H (201 O) 11 sec 733 - relied on.
•    UNION OF INDIA AND ORS. v. VARTAK LABOUR
                       UNION
                                                         513


     3. The conduct of the appellants in engaging casual A
workers for a period of less than six months, and giving
them artificial breaks so as to ensure that they do not
become eligible for permanent status, does not behove
the Union of India and its instrumentalities, which are
supposed to be model employers. Therefore, in the facts B
and circumstances of the instant case. where members
of the respondent Union have been employed in terms
of the Regulations and have been consistently engaged
in service for the past thirty to forty years, of course with
short breaks, this Court feels, the Union of India would c
consider enacting an appropriate regulation/scheme for
absorption and regularization of the services of the
casual workers engaged by BRO for execution of its on-
going projects. [Paras 20 and 21] [523-B-C; 524-A-B]
                        Case Law Reference:                    D

       c2001) 1 sec 408      referred to   Para 11
       (1983) 3 sec 401      referred to   Para 12
       (2009) 1 sec 100      relied on     Para 14             E
       (2010) 4 sec 192      relied on     Para 15
       c2006) 4 sec 1        relied on     Paras 16,17,18
       (2008) 1o sec 1       relied on     Paras 16,18
                                                               F
       (2010) 3 sec 11s      relied on     Para 16
       (201 O) 4 sec 119     relied on     Para 16
       (201 O) 11 sec 733    relied on     Para 16
                                                               G
        CIVIL APPELLATE JURISDICTION : Civil Appeal Nos.
    2129-2930 of 2004.

    From the Judgment & Order dated 27.3.2001 of the High
Court of Guwahati In Writ Appeal No. 548 of 1996 and order
dated 22.1.2003 in RP. No. 25 of 2001.                         H
    514      SUPREME COURT REPORTS                  (2011) 4 S.C.R.
                                                                        •
A       Vivek Tankha, ASG, T.S. Doabia, Rashmi Malhotra,
    Vaibhav Srivastava, D.S. Mahra, Anil Katiyar, B. Krishna
    Prasad for the Appellants.

      Dr..Krishan Singh Chauhan, Tej Singh, Varun, Ajit Kumar
B Ekka, Kartar Singh, lrshad Ahmad for the Respondent.

          The Judgment of the Court was delivered by

       D.K. JAIN, J. 1. Challenge in these appeals, by special
  leave, is to the judgments and orders dated 27th March, 2001 .,
C and 22nd January, 2003 delivered by a Division Bench of the
  Gauhati High Court at Guwahati in Writ Appeal No. 548of1996
  whereby it has directed appellant No.1 viz. Union of India to
  regularize the services of the members of the respondent Union,
  employed by the Border Roads Organization (for short the
D "BRO"), as postulated in Office Memo No. Sectt. BRDB ID No.
  BRDB/04(90)/99-GE-ll dated 2nd February, 2001. Appellants
  No. 2 to 17 are the functionaries of appellant No. 1.

        2. Shorn of unnecessary details, the facts essential for
    adjudication of the present appeals may be stated as follows:
E
        The respondent is a registered trade union comprising of
  casual workers employed by the BRO, in terms of paragraph
  503 of the Border Road Regulations (for short "the
  Regulations"), some of whom have been working with the BRO
F for the last thirty years. In the year 1993, the respondent filed a
  writ petition before the Gauhati High Court praying for issuance
  of a writ, inter-alia, directing appellant No.1 to regularize the
  services of the members of the respondent.

       3. Vide judgment dated 27th August, 1996, the High Court
G allowed the writ petition, and directed appellant No.1 to
  regularize the services of the members of the respondent who
  have been in service for more than five years, within six months
  of the date of order.
H
•     UNION OF INDIA AND ORS. v. VARTAK LABOUR
                 UNION [D.K. JAIN, J.]
                                                                   515


          4. Being aggrieved, appellants filed a writ appeal before        A
    a Division Bench of the Gauhati High Court. The Division
    Bench, while partly allowing the appeal, modified the order of
    the Single Judge on the basis of a circular dated 25th May,
    1988 issued by one Brig. S.K. Mehta, D.D.G. (P&V), for and
    on behalf of the Director General Border Roads, New Delhi to           B
    all Chief Engineers for consideration of regularization of casually
    paid labourers employed by the B,RO. The Division Bench held
    that:                              ·

         "There shall be a writ of mandamus issued to the appellant        C
         herein with a direction to consider the case of these
         employees who are working in the above Organization/
         Institution who have put in more than 5 (five) years and
         above period of service for the purpose of regularization
         of their service in the light of the Circular referred to above
         keeping in view of the requirements of Articles 14, 15 and        D
         16 for the purpose of maintaining the reservation Policy
         followed by the Govt. of India.

         In so far as the casual labourers working in the
         organization/Institution are concerned, they shall continue       E
         to work till they attain the eligibility coming within the
         purview of the Circular for being considered."

         5. At this juncture, it would be expedient and useful to
    extract relevant portions of the said circular, which read as
    follows:
                                                                           F

         "REGULARISATION OF CASUALLY PAID LABOURERS
         EMPLOYED IN BORDER ROADS ORGANIZATION-
         CONSTITUTION OF BOARD OF OFFICERS TO
         EXAMINE THE PROBLEtl(lS.                                          G
         1. Border Roads Organisation has been employing a
         large number of Casual Labourers for the past 28 years.
         There have been cases where Labour Unions have been
         formed though not recognized by us, as also there have            H
    516       SUPREME COURT REPORTS                 [2011] 4 S.C.R.
                                                                        •
A         been demands for their regularization. A large number of
          Court cases are also pending, connected with this issue.

          2. Ministry of Surface Transport (BRDB) has offered a
          Board of Officers to examine various aspects. The terms
          of reference of the Board are at appendix 'A'.
B
          3. Before the Board examines the terms of reference as
          also other connected aspects, certain data is required
          from the Projects which is discussed in the succeeding
          paragraphs.
c
          7. It may be appreciated that the recommendations of the
          Board of Officers have far reaching consequences. Your
          views and suggestions are, therefore should be deliberate
D         and keeping in view the long term implications of the
          suggestions made. CEs are therefore, requested to kindly
          give personal thought to these problems and make their
          recommendations accordingly.

E         8. We would expect your reply by 20 June 88 positively."

       6. Being aggrieved by the directions of the Division Bench,
  the appellants preferred an appeal, by special leave, before this
  Court. Vide order dated 19th February, 1999, this Court, while
F allowing the appeal and remanding the matter back to the
  Division Bench, observed thus:

          "It appears that there was some bona fide
          misunderstanding by learned counsel who appeared
          before the Division Bench on behalf of the appellants. Even
G         that apart, the Circular dated 25.05.1988 on which reliance
          was placed requires a closer scrutiny of the Division Bench
          of the High Court. This was unfortunately not done because
          of the aforesaid misunderstanding. Hence, without
          expressing any opinion on the merits of the controversy
H
•     UNION OF INDIA AND ORS. v. VARTAK LABOUR
                 UNION [D.K. JAIN, J.]
                                                                 517


        between the parties, we deem it fit in the interest of justice   A
        to allow this appeal and set aside the order of the Division
        Bench."

          7. During the course of fresh hearing of the writ appeal
    before the Division Bench, senior Central Government standing        B
    counsel appearing on behalf of the appellants stated that
    pursuant to circular dated 25th May 1988, the appellants had
    framed a scheme vide Office Memo No. Sectt. BRDB ID No.
    BRDB/04(90)/99-GE-ll dated 2nd February, 2001, for the
    welfare of casually paid employees. Upon perusal of the
    scheme and recording the satisfaction of the counsel appearing       C
    for the respondent-Union, the Court observed that the scheme
    had been framed on a rational basis. Accordingly, disposing
    of the writ appeal on the basis of the said office memo, the
    Division Bench directed the appellants to implement the said
    office memo dated 2nd February, 2001.                                D

         8. Still being aggrieved, the appellants preferred a review
    application before the High Court. Vide the impugned order,
    the Division Bench declined to entertain the said application.
                                                                         E
        9. Hence, the present appeals against the main judgment
    and the order in review.

        10. We have heard learned counsel for parties and
    perused the documents/circulars referred to and relied upon by_
    the High Court as also some office notings produced before F
    us by learned counsel appearing for the appellants.

         11. Mr. Vivek Tankha, the learned Additional Solicitor
    General of India, strenuously urged that the High Court
    committed serious error in law in treating communication dated       G
    2nd February 2001, as a final scheme framed for regularization
    of the casual labourers engaged by BRO for a maximum period
    of 6 months at a time. According to the learned counsel, it is
    evident from communication dated 2nd February 2001, that as
    on that date the Border Roads Development Board was still in         H
    518      SUPREME COURT REPORTS                   [2011] 4 S.C.R.


A the process. of collecting information from other departments
  of the Central Government, particularly from the Railways for the
  purpose of examining if any of such schemes could be adopted
  in the BRO. In support of his stand that so far no scheme for
  absorption or regularization of casual labourers had been
B devised, learned counsel placed before us some
  correspondence exchanged between the Headquarters of the
  Border Roads Development Board and the office of the
  Director General Border Roads, which shows that in view of
  the guidelines issued by the DOPT, it has not been possible
c to frame and implement any policy or scheme for regularization
  of muster roll working in BRO. It was asserted that circular
  dated 25th May 1988, on which emphasis is laid on behalf of
  the respondent, was merely a proposal which has been
  misconstrued by the High Court as a scheme. It was urged that
D the proposals or suggestions by the field officers in favour of
  the respondent Union did not result in creating any enforceable
  right in their favour. Placing reliance on the decision of this Court
  in Indian Drugs & Pharmaceuticals Ltd. Vs. Workmen, Indian
  Drugs & Pharmaceuticals Ltd. 1, learned counsel submitted that
E formulation of any scheme for regularization being a matter of
  policy, it is not within the domain of the court to direct
  regularization of temporary appointees in the absence or
  dehors the recruitment rules.

        12. Per contra, Dr. K.S. Chauhan, in his written
F submissions, has submitted that even if it is assumed that there
  is no approved proposal or scheme for regularization of the
  casual labourers, on the touchstone of Articles 14, 16 and 21
  of the Constitution of India, this Court is empowered to examine
  whether the action of the appellants is not opposed to principles
G of reasonableness evolved by this Court, as the casual
  labourers have been working with BRO for the last twenty to
  thirty years. It is alleged that the appellants are intentionally
  withholding the scheme dated 2nd February 2001 and,
  therefore, an adverse inference must be drawn against them.
H 1. c2001i 1 sec 40s.
•   1
         UNION OF INDIA AND ORS. v. VARTAK LABOUR
                    UNION [D.K. JAIN, J.]
  In support of his submission that there is clear discrimination
                                                                 519


                                                                        A·
  betWeen the members of the Union and the General Reserve
  Engineering Force (GREF), who have been declared to be
  members of the Armed Forces in R. Viswan & Ors. Vs. Union
· of India;§. Ors. 2 , it is pointed out that the members of the
  respondent Union are facilitating the GREF in hard positions          B
  and dangerous locations. in hilly areas to perform their functions.
  It is thus, argued that the directions issued by the High Court
  are fully justified and should be implemented.

         13. We are of the opinion that there is force in the
    contentions urged on behalf of the appellants and these must        C
    prevail. We are convinced that the Division Bench has
    erroneously construed the Office memo dated 2nd February,
    2001 as an approved scheme for absorption and regularization
    of the casual workers. lt is manifest from a bare reading of the
    said memo that it was merely in the nature of an inter-             D
    department communication between the Border Roads
    Development Board headquarters and its officials. We do not
    find any substance in the stand of learned counsel for the
    respondent that the appellants are withholding the approved
    scheme from this Court. This plea of the respondent that a final    E
    scheme did come into existence on 2nd February 2001, stands
    belied from the letter of the Border Roads Development Board
    dated 22nd July 2002. It would be useful to extract the relevant
    portion of the said letter, which reads:
                                                                        F
          "In the year 1993, a Labour Welfare Scheme i.e. Scheme
          for Grant of Temporary Status and Regularisation of Casual
          Workers was formulated. Thus, when we approached
          DOPT for approval to the scheme proposed by DGBP,
          they did not support our proposal and advised us that if      G
          we felt that there are sufficient grounds to formulate a
          separate scheme which is at variance with the scheme of
          DOPT, we may approach the Cabinet for approval of such
          scheme. The Secretariat delved into the issue at length and
    2.   (1983) 3 sec 401.                                              H
A
    520       SUPREME COURT REPORTS                 [2011] 4 S.C.R.

          came to the conclusion that there is not sufficient
                                                                         •
          justification for going to the Cabinet for approval of a
          separate scheme. This decision has already been
          communicated to the Dte GBR vide our letter No.BROS/
          04(129)/2000-GE.ll dated 24th June, 2002."
B      14. It is trite that inter-departmental communications and
  notings in departmental files do not have the sanction of law,
  creating a legally enforceable right. In Sethi Auto Service
  Station & Anr. Vs. Delhi Development Authority & Ors. 3, a
  Division Bench of this Court, in which one of us (D.K. Jain, J.)
C was a member has observed thus:

          "Needless to add that internal notings are not meant for
          outside exposure. Notings in the file culminate into an
          executable order, affecting the rights of the parties, only
0         when it reaches the final decision-making authority in the
          department, gets his approval and the final order is
          communicated to the person concerned."

         15. Similar views are echoed in Jasbir Singh Chhabra &
    Ors. Vs. State of Punjab & Ors. 4 . This Court has observed that:
E
          "It must always be remembered that in a democratic polity
          like ours, the functions of the Government are carried out
          by different individuals at different levels. The issues and
          policy matters which are required to be decided by the
F         Government are dealt with by several functionaries some
          of whom may record notings on the files favouring a
          particular person or group of persons. Someone may
          suggest a particular line of action, which may not be
          conducive to public interest and others may suggest
G         adoption of a different mode in larger public interest.
          However, the final decision is required to be taken by the
          designated authority keeping in view the larger public
          interest."
    3.   (2009) 1 sec 1oa.
H   4.   (2010) 4 sec 192
•    UNION OF INDIA AND ORS. v. VARTAK LABOUR
                            •




                 UNION [D.K. JAIN, J.]
                                                              521


      16. We are of the opinion that the respondent Union's claim· A
for regularization of its members merely because they have been
wo. king for BRO for a considerable period of time cannot be
granted in light of several decisions of this Court, wherein it has
been consistently held that casual employment terminates when
the same is discontinued, and merely because a temporary or B
casual worker has been engaged beyond the peri0d of his
employment, he would not be entitled to be absorbed in regular
s.ervice or madle permanent, if the original appointment was not
in terms of the process envisaged by the relevant rules. (See:
Secretary, State of Karnataka & Ors. Vs. Umadevi (3) & Ors. 5; c
Official Liquidator Vs. Dayanand & Ors. 6; State of Karnataka
& Ors. Vs. Ganapathi Chaya Nayak & Ors. 7; Union of India &
Anr. Vs. Kartick Chandra Monda/ & Anr.; Satya Prakash & Ors.
Vs. State of Bihar & Ors. 8 and Rameshwar Dayal Vs. Indian
Railway Construction Company Limited & Ors. 9 .)                    D
    17. In Umadevi (3) (supra), a Constitution Bench of this
Court had observed that

      "It was then contended that the rights of the employees thus
      appointed, under Articles 14 and 16 of the Constitution,       E
      are violated. It is stated that the State has treated the
      employees unfairly by employing them on less than
      minimum wages and extracting work from them for a pretty
      long period in comparison with those directly recruited who
      are getting more wages or salaries for doing similar work.     F
      The employees before us were engaged on daily wages
      in the department concerned on a wage that was made
      known to them. There is no case that the wage agreed
      upon was not being paid. Those who are working on daily
      wages formed a class by themselves, they cannot claim          G
5.   (2006) 4 sec 1.
6.   (2008) 10 sec 1.
1.   (2010) 3 sec 115.
8.   (2010) 4 sec 179.
9.   (2010) 11 sec 733.                                              H
A
    522       SUPREME COURT REPORTS                 [2011) 4 S.C.R.•
          that they are discriminated as against those who have been
          regularly recruited on the basis of the relevant rules. No
          right can be founded on an employment on daily wages
          to claim that such employee should be treated on a par
          with a regularly recruited candidate, and made permanent
B         in employment, even assuming that the principle c0uld be
          invoked for claiming equal wages for equal work. There
          is no fundamental right in those who have been employed
          on daily wages or temporarily or on contractual basis, to
          claim that they have a right to be absorbed in service. As
c         has been held by this Court, they cannot be said to be
          holders of a post, since, a regular appointment could be
          made only by making appointments consistent with the
          requirements of Articles 14 and 16 of the Constitution. The
          right to be treated equally with the other employees
          employed on daily wages, cannot be extended to a claim
D
          for equal treatment with those who were regularly
          employed. That would be treating unequals as equals. It
          cannot also be relied on to claim a right to be absorbed
          in service 13ven though they have never been selected in
          terms of the relevant recruitment rules. The arguments
E         based on Articles 14 and 16 of the Constitution are
          therefore overruled."

        18. Explaining the dictum laid down in Umadevi (supra),
  a three judge Bench in Official Liquidator (supra) has observed
F that:

          "In State of Karnataka v. Umadevi (3), the Constitution
          Bench again considered the question whether the State
          can frame scheme for regularisation of the services of ad
          hoc/temporary/daily wager appointed in violation of the
G
          doctrine of equality or the one appointed with a clear
          stipulation that such appointment will not confer any right
          on the appointee to seek regularisation or absorption in
          the regular cadre and whether the Court can issue
          mandamus for regularisation or absorption of such
H
•   UNION OF INDIA AND ORS. v. VARTAK LABOUR
               UNION [D.K. JAIN, J.]
      appointee and answered the same in negative."
                                                               523


                                                                       A

      19. In light of the settled legal position and on a conspectus
of .the factual scenario noted above, the impugned directions
by the High Court cannot be sustained. These are set aside
accordingly.
                                                                       B
       20. Before parting with the case, we are constrained to
observe that the conduct of the appellants in engaging casual
workers for a period of less than six months, and giving them
artificial breaks so as to ensure that they do not become eligible
for permanent status, as evidenced from the additional affidavit       C
dated 23rd April, 2010 does not behove the Union of India and
its instrumentalities, which are supposed to be model
employers. With anguish, we extract the relevant paragraph of
the said affidavit:
                                                                  D
      "Relying upon the provisions contained in Paragraph 501
      to 518 of the Regulation, it was contended that the casual·
      labourers are mustered on daily or monthly basis. If on
      monthly rates, the period of engagement shall be for a
      minimum period of six months. It is a fact that large E
      number of casual labourers have worked with Project
      Vartak for number of years but their period of
      engagement at no stage has existed more than six
      months at a time. Their services are terminated before
      completion of six month and as per requirement they are
      recruited afresh by publishing Part II order by Mustering
                                                                  F
      Unit. Due to the fact that they have not been in
      continuous engagement for more than six months they
      do not get the status of permanent employee and
      accordingly as per Paragraph 503 of the Regulation
      referred to above, the casual personnel are not eligible G
      for any other privileges for continued employment under
      the Government."

                                      (Emphasis supplied by us)
                                                                       H
A
    524      SUPREME COURT REPORTS                 [2011] 4 S.C.R.


       21. Therefore, in the facts and circumstances of the instant
                                                                        •
  case, where members of the respondent Union have been
  employed in terms of the Regulations and have been
  consistently engaged in service for the past thirty to forty years,
  of course with short breaks, we feel, the Union of India would
B consider enacting an appropriate regulation/scheme for
  absorption and regularization of the services of the casual
  workers engaged by BRO for execution of its on-going projects.

        22. In the final analysis, the appeals are allowed, and the
C imj!Jugned judgments and orders are set aside. However, in the
  circumstances of the case, the parties are left to bear their own
  costs.

    8.8.B.                                       Appeals allowed.


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