26.02.2026 vs Bhupinder Singh Mehta & Ors on 17 March, 2026

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    ADVERTISEMENT

    Himachal Pradesh High Court

    Reserved On : 26.02.2026 vs Bhupinder Singh Mehta & Ors on 17 March, 2026

                                                                                                       2026:HHC:7508 )
    
    
    
            IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
    
                                                                                LPA No.841 of 2025
                                                                                Reserved on : 26.02.2026
                                                                                Decided on : _17.03.2026
    
    
    
    
                                                                                                       .
    
        State of HP and Others                                                                    ...Petitioners.
    
                                                               Versus
    
    
    
    
    
        Bhupinder Singh Mehta & Ors.                                                              ...Respondents.
        Coram
        Hon'ble Mr. Gurmeet Singh Sandhawalia, Chief Justice.
    
    
    
    
                                                                       of
        Hon'ble Mr. Justice Bipin Chander Negi, Judge.
    
        Whether approved for reporting?1
    
        For the petitioners
                                  rt      :             Mr. Pranay Pratap
                                                        Advocate General.
                                                                                                   Singh,    Additional
    
        For the respondent(s) :                         M/s. Onkar Jairath, Anshul Jairath and
                                                        Piyush Mehta, Advocates.
    
        Bipin Chander Negi, Judge
    

    The present appeal has been preferred against the

    impugned order dated 18.03.2025, passed by the learned

    SPONSORED

    Single Judge in CWPOA No.2979 of 2020, titled Bhupinder

    Singh Mehta and Ors. Vs. State of Himachal Pradesh and

    Others, whereby the learned Single Judge has directed the

    present appellants to regularize the services of the present

    respondents, in terms of communication/instructions

    pertaining to regularization of contractual appointees issued

    by the Personnel Department of the Government of Himachal

    Pradesh, dated 04.05.2017 (Annexure A-VI in CWPOA

    1
    Whether the reporters of the local papers may be allowed to see the Judgment? Yes

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    No.2979 of 2020) on completion of 3 years from the date of

    their respective contractual engagements by appellant No.3.

    .

    Further the respondents herein have been held entitled to all

    consequential benefits from the date of regularization of the

    respective services as they had approached the Court in the

    year 2017 itself.

    of

    2. Admittedly, in the case at hand, the present

    respondents had
    rt been initially appointed as Computer

    Operators on a contract basis with effect from 01.03.2004

    (Respondents No.1 and 3) and 08.03.2004 (Respondent No.2)

    till 30.06.2012. The aforesaid appointments had been made

    under the Upper Satluj Valley Watershed Development Society

    (USVWDS) Rampur (for short “Society”), constituted vide

    notification dated 23.10.2002 (page 140 of the paper book).

    3. The “Society” had been created for implementation

    of the catchment area treatment plans of all hydel projects

    coming up or in existence in the Satluj Valley basin. Its staffing

    pattern was determined in the first governing body meeting

    held on 18.12.2002 (page 174 of the paper book). Therein

    need for adequate staff was determined keeping in view the

    fact that every hydel project above 10MW requires a

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    catchment area treatment plan and besides the existing hydel

    projects many hydel projects were under investigation and

    .

    formulation in the Satluj Valley basin. Amongst other posts,

    six posts of computer operators were approved to be filled in

    on a contractual basis as catchment area treatment plans of

    all hydel projects were to be implemented in a time bound

    of
    manner.

    4. The present respondents had been selected as
    rt
    computer operators post their names being sponsored by the

    employment exchange and after an interview for the said post.

    The name of the “Society” was changed to Satluj Valley

    Watershed Development Society on 18.12.2008. The

    aforesaid Society was closed vide notification dated

    05.05.2012 with effect from 30.06.2012.

    5. Before closure of the society the conservator of

    forest Rampur circle vide letter dated 30.05.2012 had

    requested for the accommodation of the computer operators

    engaged in the society in his office as work of the society after

    its closure was to be looked after by his office and payment to

    the computer operators was sought to be made from

    Compensatory Afforestation Fund Management and Planning

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    Authority (for short, “CAMPA”) (page 183 of the paper book).

    On account of closure of the aforesaid Society, services of the

    .

    present respondents had been terminated with effect from

    30.06.2012.

    6. Previously vide CWP No.8534 of 2011, the present

    respondents had approached this Court, seeking the following

    of
    reliefs:-

    rt
    “i) That the respondents may kindly be directed to
    grant the salary at par with the HP Electronic

    Corporation i.e. Rs.13,500/- instead of Rs.7,810/- per
    month w.e.f. 01.12.2009 with all consequential
    benefits.

    ii) That respondents may kindly be directed to absorb
    the petitioners in the forest department, as is done in
    the case of Sh. Devinder Chauhan.”

    7. Since a writ of mandamus was being sought in CWP

    No.8534 of 2011, therefore, the Court had directed the

    present respondents to approach the authorities concerned for

    redressal of their grievances. Therefore, the aforesaid writ

    petition bearing No.8534 of 2011 was disposed of, vide order

    dated 22.11.2011. Subsequent thereto the respondents had

    approached the authorities, vide order dated 29.02.2012

    (page 129 of the paper book) the authority concerned had

    rejected the claim of regularization made by the present

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    respondents.

    8. The reason for rejection being that the respondents had

    .

    been engaged on contract basis in a Society and in terms of

    rules/bye laws of the Society, the services of the respondents

    could not be regularized as Computer Operators in the Forest

    Department of Himachal Pradesh. Other than the aforesaid, in

    of
    the rejection order it was categorically stated that there exist

    no sanctioned/created post of Computer Operators in the
    rt
    Forest Department of Himachal Pradesh.

    9. Subsequent to the aforesaid, the present

    respondents had been re-engaged under the Himachal

    Pradesh “CAMPA” on contract basis with effect from

    05.02.2013. The contract in this respect had been entered

    into between the present respondents and appellant No.3. On

    04.05.2017, instructions were issued by the Additional Chief

    Secretary (Personnel) to the Government of Himachal Pradesh

    qua regularization of contractual employees (page 125 of the

    paper book).

    10. Immediately thereafter on 25.05.2017 a case of

    regularization of the present respondents was forwarded by

    the Principal Chief Conservator of Forest (Hoff) HP to the

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    Additional Chief Secretary (Forest) (page 121 of the paper

    book) on the grounds that the names of the respondents had

    .

    been sponsored by the employment exchange wherein after

    they had been selected through an interview by the society

    concerned and they have rendered almost 14 years of service.

    11. On 23.06.2017, the Additional Chief Secretary

    of
    (Forests) informed the Principal Chief Conservator of Forest

    (Hoff) Himachal Pradesh that the matter of regularization of
    rt
    the respondents had been examined in consultation with the

    Finance Department who had advised that the respondents be

    permitted to continue where they are working (page 131 of

    the paper book). The said case was rejected by the Additional

    Chief Secretary Forest on 5.09.2017 (page 124 of the paper

    book) on the ground that the respondents are employees of a

    Society engaged in CAT plan/CAMPA under CCF Rampur,

    hence not eligible for regularization in Government

    Departments.

    12. It is in the aforesaid backdrop that the present

    respondents had invoked the jurisdiction of the Erstwhile State

    Administrative Tribunal, seeking regularization of their

    services. On the closure of the State Administrative Tribunal,

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    the Original Application filed by the respondents was

    transferred to this Court and was registered as CWPOA

    .

    No.2979 of 2020.

    13. The case of the present respondents was

    vehemently opposed by the present appellants. In the reply

    filed, it was categorically stated that the present respondents

    of
    are employees of a Society and hence, are not eligible for

    regularization in the Forest Department.

    rt

    14. Learned Single Judge after assessing the nature of

    the services of the present respondents, the fact that the

    services had been utilized by the appellants for about last 22

    years, further the fact that the Society/CAMPA was nothing

    but an extended wing of the Government and keeping in view

    the legitimate expectation of the present respondents held

    that the present respondents in terms of

    communication/instructions pertaining to regularization of

    contractual appointees issued by the personnel department of

    the Government of Himachal Pradesh dated 04.05.2017

    (Annexure A-VI in CWPOA No.2979 of 2020), on completion

    of three years from the date of contractual engagement by the

    present appellants, were entitled to regularization.

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    15. The first and foremost contention raised on behalf

    of the appellants is that the respondents are employees of

    .

    Society/CAMPA and are hence, not entitled for regularization

    in the Forest Department. In the factual and legal matrix

    narrated herein below the said contention needs to be

    rejected.

    of

    16. For an effective implementation of the Catchment

    Area Treatment Plans (for short, “CAT Plans”) of all Hydro
    rt
    Electric Projects in the Satluj Basin in public interest a

    “Society” was constituted vide Notification dated 23.10.2002.

    Eight CAT Plans were being implemented in the jurisdiction of

    the Rampur Circle. Out of a total capital outlay of Rs.132

    crores in the aforesaid eight CAT Plans Rs.63 crores had been

    utilized upto 31.03.2012, during the last 10 years. Besides the

    eight CAT Plans which were being implemented by the Rampur

    Circle six CAT Plans were in the pipeline which in the near

    future would also be executed by the same Circle. The

    aforesaid facts are evident from the letter dated 17.05.2012

    addressed by the DFO CAT plan Nichar at Rampur to the

    secretary of the Society Rampur (page 119/120 of the paper

    book). Vide notification dated 05.05.2012 (page 118 of the

    paper book), the said Society was ordered to cease functioning

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    latest by 30.06.2012.

    17. From a perusal of the Notification dated

    .

    05.05.2012, it is evident that the Conservator of Forest

    Rampur was to be the “Successor” of the Society. Subsequent

    to 30.06.2012, in terms of the aforesaid notification dated

    05.05.2012, the CAT Plans and Compensatory Afforestation of

    of
    all Hydro Electric Projects in Satluj River Basin were to be

    implemented through the concerned Conservator of Forests.

    rt

    18. In the aforesaid Society, the present respondents

    had been engaged as Computer Operators in the month of

    March, 2004. From letter dated 17.05.2012 (page 119 of the

    paper book) addressed by the DFO CAT Plan Nichar at Rampur

    to Member Secretary of the Society, it is evident that

    Computer Operators i.e. present respondents were engaged

    in the preparation of computerized forms, progress reports of

    CAT Plan activities (monthly, quarterly and annual),

    preparation of accounts, summary of funds utilized,

    preparation/compilation of APO’s of CAT Plan, reconciliation of

    progress of funds with Project Officers of the Society,

    preparation of balance sheet, documentation of works

    executed and other office routine works assigned by the

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    concerned project officer. On account of the closure of the

    aforesaid project, the services of the respondents had been

    .

    terminated.

    19. From letter dated 17.05.2012 (page 119 of the

    paper book), addressed by the DFO CAT Plan, it is evident that

    the work being carried out by the present respondents on

    of
    closure of the Society was now required to be performed by

    the existing staff posted in the Rampur Forest Circle and
    rt
    Division. In the letter it has been highlighted that there is an

    acute shortage of staff in the Rampur Circle. Besides the

    aforesaid, in the letter it has further been highlighted that

    there is a provision to engage contractual staff under ongoing

    various CAT Plans and for the same funds to the tune of almost

    Rs.69 crores were lying unutilized which can be utilized to

    engage staff of the erstwhile Society in CAMPA.

    20. Besides the aforesaid in the letter it has been

    mentioned that the Computer Operators i.e. present

    respondents have an experience of about 8 years, during the

    period they were engaged on contract basis where they were

    looking after CAT Plan work at project level in the Society.

    Their conduct while working in the society had remained

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    satisfactory.

    21. It is in the aforesaid backdrop that the respondents

    .

    had been once again engaged on contractual basis by the

    present appellant No.3 i.e. the Chief Conservator of Forest.

    The engagement of the present respondents had been done in

    terms of Agreement dated 06.02.2013 (page 108 of the paper

    of
    book). In the contract so entered, it had been categorically

    mentioned that
    rt the respondents shall remain in the

    deployment of CAMPA in the office of the Chief Conservator

    HP and State CAMPA was stated to be a separate legal entity

    (autonomous body). The appointment in terms of the contract

    was stated to be non-Governmental, which was not to

    continue after the expiry of the contract period. Emoluments

    to the respondents were to be paid by the DFO(Hqrs).

    22. Vide notification dated 23.4.2004, issued by MoEF,

    in exercise of the powers conferred by sub-section (3) of

    Section 3 of the Environment Protection Act an authority

    known as “CAMPA” for the purpose of management of money

    towards compensatory afforestation, NPV and any other

    money recoverable in pursuance of the apex Court’s orders

    and in compliance with the conditions stipulated by the Central

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    Government while according approval under the FC Act for

    non-forestry uses of the forest land was constituted.(See T.N.

    .

    Godavarman Thirumulpad (87) v. Union of India,

    (2006) 1 SCC 1, at page 16). The jurisdiction of CAMPA so

    notified is throughout India. (See T.N. Godavarman

    Thirumulpad v. Union of India, (2014) 6 SCC 150, at

    of
    page 159).

    23. On 2.4.2009 MoEF has issued “the Guidelines of
    rt
    State Compensatory Afforestation Fund Management and

    Planning Authority (State CAMPA)”. The State CAMPA has

    been set up as an instrument to accelerate activities for

    preservation of natural forests, management of wildlife,

    infrastructure development in the sector and other allied

    works. (See T.N. Godavarman Thirumulpad v. Union of

    India, (2014) 6 SCC 150, at page 162).

    24. By order dated 10.7.2009 (2009) 16 SCC 481 the

    apex Court directed that the guidelines and structure of the

    State CAMPA as prepared by MoEF may be notified and

    implemented. The State CAMPA has been constituted for each

    State/Union Territory. It has a three-tier structure. The

    Executive Committee functions under the chairmanship of the

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    Principal Chief Conservator of Forests and is responsible for

    the Annual Plan of Operation (APO) for various works planned

    .

    to be undertaken during each year. The Steering Committee

    under the chairmanship of the Chief Secretary is responsible

    for approving the APO for each year. The Chief Minister is the

    Chairman of the governing body which is responsible for

    of
    overall guidance and policy issues. (See T.N. Godavarman

    Thirumulpad v. Union of India, (2014) 6 SCC 150, at

    page 162).

    rt

    25. Statutory recognition to the State Compensatory

    Afforestation Fund and Management and Planning Authority

    was given under the Compensatory Afforestation Fund Act,

    2016, which came into effect on 30.09.2018 (herein after for

    purpose of brevity referred to as the act). The State Authority

    so constituted was to consist of a governing body, a Steering

    Committee and an Executive Committee. For the purpose of

    present appeal, we are concerned with Section 11(5) of the

    Act, which deals with the creation of posts in the State

    Authority. The same reads as follows:-

    11. Steering committee and executive

    committee of State Authority.

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    (5) The governing body of the State Authority may

    with the prior concurrence of the State Government

    create posts in the State Authority at the level of

    .

    Assistant Conservator of Forests and other officials to

    assist the steering committee and executive

    committee in performance of its functions under the

    Act.

    of

    26. In this respect, it would be appropriate to refer to

    relevant rules framed under the Act i.e. Rules 10,b12 and 13
    rt
    of the Compensatory Afforestation Fund Rules, 2018, (herein

    after for purpose of brevity referred to as the rules) whereby

    pay and allowances of officials appointed on deputation or

    contract basis under Section 11(5) of the Act have been

    provided for. The same are reproduced herein below:-

    10. Appointment of Officers of State

    Authority:- The officers referred to in sub-Section

    (4) and sub-Section (5) of Section 11 shall be

    appointed on deputation basis by the State

    Government.

    12. Pay and Allowances of officials:- The

    officials referred to in sub-Section (5) of Section 9 and

    sub-Section (5) of Section 11 and appointed on

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    deputation basis shall be entitled to such pay and

    allowances as are admissible to the equivalent

    officials of the central government of Group “B” or

    .

    Group “C”, as the case may be.

    13. Pay and Allowances of officials appointed

    on Contract Basis:- The officials referred to in sub-

    Section (5) of Section 9 and sub-Section (5) of

    of
    Section 11 and appointed on contract basis shall be

    entitled to such pay and allowances as are specified
    rt
    in their contract.

    27. Hence, after the promulgation of the

    Compensatory Afforestation Fund Act, 2016, since 30.09.2018

    the governing body of the State CAMPA may with the prior

    concurrence of the State Government create posts in the State

    Authority. As per the rules framed under the act the officers

    referred to in sub-Section (4) and sub-Section (5) of Section

    11 are to be filled in on deputation. In terms of the rules

    framed officials appointed on deputation basis are held

    entitled to such pay and allowances as are admissible to the

    equivalent officials of the central government. Insofar as

    officials appointed on a contract basis are concerned rules do

    not expressly provide for such a parity, however keeping in

    view principles of equality, fairness and equity similar parity

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    cannot be denied to officials appointed on a contract basis. In

    posts created for other officials under sub-Section (5) of

    .

    Section 11 of the act there is no express or implied bar to

    Regular recruitment.

    28. The nature of the work performed by the

    respondents is neither temporary nor occasional. Rather the

    of
    recurring nature of duties reflects the nature of the work

    performed by the respondents was perennial and fundamental
    rt
    to the functioning of the CAMPA. In the aforesaid backdrop a

    fair and humane resolution becomes paramount when tasks

    inherently required to be performed on a regular basis for a

    prolonged, continuous period are performed as have been

    done in the case at hand by unblemished service. Absence of

    regular posts would be of no consequence. Moreover, refusing

    regularization would be contrary to principles of fairness and

    equity. In this respect it would be appropriate to refer to the

    authoritative pronouncement of the apex court in Jaggo

    Versus Union of India and Others, 2024 INSC

    1034(SLP(C) No.5580 of 2024). The relevant extract

    thereof reads as under:-

    “13. The claim by the respondents that these were not

    regular posts lacks merit, as the nature of the work

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    performed by the appellants was perennial and

    fundamental to the functioning of the offices. The

    recurring nature of these duties necessitates their

    .

    classification as regular posts, irrespective of how

    their initial engagements were labelled. It is also

    noteworthy that subsequent outsourcing of these

    same tasks to private agencies after the appellants’

    of
    termination demonstrates the inherent need for these

    services. This act of outsourcing, which effectively
    rt
    replaced one set of workers with another, further

    underscores that the work in question was neither

    temporary nor occasional.

    20. It is well established that the decision in Uma Devi

    (supra) does not intend to penalize employees who

    have rendered long years of service fulfilling ongoing

    and necessary functions of the State or its

    instrumentalities. The said judgment sought to

    prevent backdoor entries and illegal appointments

    that circumvent constitutional requirements.

    However, where appointments were not illegal but

    possibly “irregular,” and where employees had served

    continuously against the backdrop of sanctioned

    functions for a considerable period, the need for a fair

    and humane resolution becomes paramount.

    Prolonged, continuous, and unblemished service

    performing tasks inherently required on a regular

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    basis can, over the time, transform what was initially

    ad-hoc or temporary into a scenario demanding fair

    regularization. In a recent judgement of this Court in

    .

    Vinod Kumar and Ors. Etc. Vs. Union of India & Ors,

    it was held that held that procedural formalities

    cannot be used to deny regularization of service to an

    employee whose appointment was termed

    of
    “temporary” but has performed the same duties as

    performed by the regular employee over a
    rt
    considerable period in the capacity of the regular

    employee. The relevant paras of this judgement have

    been reproduced below:

    “6. The application of the judgment in Uma

    Devi (supra) by the High Court does not fit
    squarely with the facts at hand, given the
    specific circumstances under which the

    appellants were employed and have continued

    their service. The reliance on procedural
    formalities at the outset cannot be used to
    perpetually deny substantive rights that have

    accrued over a considerable period through
    continuous service. Their promotion was based
    on a specific notification for vacancies and a
    subsequent circular, followed by a selection
    process involving written tests and interviews,
    which distinguishes their case from the
    appointments through back door entry as
    discussed in the case of Uma Devi (supra). 7.
    The judgement in the case Uma Devi (supra)
    also distinguished between “irregular” and

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    “illegal” appointments underscoring the
    importance of considering certain
    appointments even if were not made strictly in

    .

    accordance with the prescribed Rules and

    Procedure, cannot be said to have been made
    illegally if they had followed the procedures of
    regular appointments such as conduct of

    written examinations or interviews as in the
    present case…”

    of

    21. The High Court placed undue emphasis on the

    initial label of the appellants’ engagements and the
    rt
    outsourcing decision taken after their dismissal.

    Courts must look beyond the surface labels and

    consider the realities of employment: continuous,

    long-term service, indispensable duties, and absence

    of any mala fide or illegalities in their appointments.

    In that light, refusing regularization simply because

    their original terms did not explicitly state so, or

    because an outsourcing policy was belatedly

    introduced, would be contrary to principles of fairness

    and equity.

    26. While the judgment in Uma Devi (supra) sought

    to curtail the practice of backdoor entries and ensure

    appointments adhered to constitutional principles, it

    is regrettable that its principles are often

    misinterpreted or misapplied to deny legitimate

    claims of long serving employees. This judgment

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    aimed to distinguish between “illegal” and “irregular”

    appointments. It categorically held that employees in

    irregular appointments, who were engaged in duly

    .

    sanctioned posts and had served continuously for

    more than ten years, should be considered for

    regularization as a one-time measure. However, the

    laudable intent of the judgment is being subverted

    of
    when institutions rely on its dicta to indiscriminately

    reject the claims of employees, even in cases where
    rt
    their appointments are not illegal, but merely lack

    adherence to procedural formalities. Government

    departments often cite the judgment in Uma Devi

    (supra) to argue that no vested right to regularization

    exists for temporary employees, overlooking the

    judgment’s explicit acknowledgment of cases where

    regularization is appropriate. This selective

    application distorts the judgment’s spirit and purpose,

    effectively weaponizing it against employees who

    have rendered indispensable services over decades.”

    29. The duties being performed by the respondents in

    the case at hand are integral to the day-to-day functioning of

    the organization. The practice adopted by appellants of

    engaging the respondents under the nominal labels of

    “contractual” in perpetuity and thereby exploiting them by not

    regularizing their positions is highly deprecable. Government

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    departments are expected to lead by example in ensuring fair

    and stable employment. In the case at hand the appellants

    .

    have continued for years the exploitative engagement without

    undertaking regular recruitment. The culture of ad-hocism

    being perpetrated by the appellants is also highly deprecable.

    The Apex Court on several occasions has deprecated the

    of
    practice of engaging employees under the nominal labels of

    “contractual” or “temporary” and has cautioned against a
    rt
    mechanical and blind reliance on Umadevi, and has strongly

    deprecated the culture of ad-hocism. In this respect reference

    can be made to the apex court judgement in Bhola Nath

    Versus State of Jharkhand and Others, 2026 INSC 99

    (SLP(C) No.30762 of 2024). The relevant extract reads as

    under:-

    13……………

    13.6. This Court has, on several occasions,
    deprecated the practice adopted by States of
    engaging employees under the nominal labels of
    “part-time”, “contractual” or “temporary” in
    perpetuity and thereby exploiting them by not
    regularizing their positions. In Jaggo v. Union of
    India, this Court underscored that government
    departments must lead by example in ensuring fair
    and stable employment, and evolved the test of
    examining whether the duties performed by such

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    temporary employees are integral to the day-to-day
    functioning of the organization.

    13.7. In Shripal v. Nagar Nigam, and Vinod

    .

    Kumar v. Union of India, this Court cautioned

    against a mechanical and blind reliance on Umadevi
    (supra) to deny regularization to temporary

    employees in the absence of statutory rules. It was
    held that Umadevi (supra) cannot be employed as a
    shield to legitimise exploitative engagements

    of
    continued for years without undertaking regular
    recruitment. The Court further clarified that Umadevi
    itself draws a distinction between appointments that
    rt
    are “illegal” and those that are merely “irregular”, the
    latter being amenable to regularization upon

    fulfilment of the prescribed conditions.

    13.8. In Dharam Singh v. State of U.P., this Court
    strongly deprecated the culture of “ad-hocism”

    adopted by States in their capacity as employers. The
    Court criticised the practice of outsourcing or

    informalizing recruitment as a means to evade regular
    employment obligations, observing that such

    measures perpetuate precarious working conditions
    while circumventing fair and lawful engagement

    practices.

    13.9. The State must remain conscious that part-time
    employees, such as the appellants, constitute an
    integral part of the edifice upon which the machinery
    of the State continues to function. They are not
    merely ancillary to the system, but form essential
    components thereof. The equality mandate of our
    Constitution, therefore, requires that their service be
    reciprocated in a manner free from arbitrariness,
    ensuring that decisions of the State affecting the

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    -23-

    careers and livelihood of such part-time and
    contractual employees are guided by fairness and
    reason.

    .

    30. The aforesaid contract, has been entered into

    between parties in the case at hand who are not equal in

    bargaining power. The inequality of bargaining power in the

    of
    case at hand is the result of the great disparity in the economic

    strength of the contracting parties. The respondents in the
    rt
    case at hand have no choice, or rather no meaningful choice,

    but to give their assent to the contract no matter however

    unfair, unreasonable and unconscionable the clauses in the

    contract may be. In the said backdrop to secure social,

    economic justice and in order to conform to the mandate of

    the equality clause in Article 14 courts will not enforce and

    will, when called upon to do so, strike down an unfair and

    unreasonable contract, or an unfair and unreasonable clause

    in a contract, entered into between parties who are not equal

    in bargaining power. In the facts of the present case in view

    of the aforementioned it can safely be said that the mighty

    State (present appellants) and ordinary computer operators

    (present respondents), who are seeking regularisation, have

    an un-equal bargaining power. We are, therefore, of the

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    -24-

    considered view that the reliance placed on the terms of

    Agreement dated 06.02.2013 (page 108 of the paper book)

    .

    would be of no assistance to the case of the appellants. In this

    respect, reference can be made to Bhola Nath Versus State

    of Jharkhand and Others, 2026 INSC 99 (SLP(C)

    No.30762 of 2024). The relevant extract reads as follows:-

    of
    Unconscionable Agreements- Contract between
    Lion and Lamb:

    12. In Central Inland Water Transport Corpn. v. Brojo
    rt
    Nath Ganguly, this Court acknowledged the increasing

    imbalance in the bargaining power of contracting parties.

    The Court held thus: –

    “89. . . . We have a Constitution for our country. Our

    judges are bound by their oath to “uphold the
    Constitution and the laws”. The Constitution was
    enacted to secure to all the citizens of this country

    social and economic justice. Article 14 of the

    Constitution guarantees to all persons equality
    before the law and the equal protection of the
    laws. The principle deducible from the above

    discussions on this part of the case is in
    consonance with right and reason, intended to
    secure social and economic justice and
    conforms to the mandate of the great equality
    clause in Article 14. This principle is that the
    courts will not enforce and will, when called
    upon to do so, strike down an unfair and
    unreasonable contract, or an unfair and
    unreasonable clause in a contract, entered into
    between parties who are not equal in bargaining

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    -25-

    power. It is difficult to give an exhaustive list of
    all bargains of this type. No court can visualize
    the different situations which can arise in the

    .

    affairs of men. One can only attempt to give

    some illustrations. For instance, the above
    principle will apply where the inequality of
    bargaining power is the result of the great

    disparity in the economic strength of the
    contracting parties. It will apply where the

    of
    inequality is the result of circumstances,
    whether of the creation of the parties or not. It
    will apply to situations in which the weaker
    rt
    party is in a position in which he can obtain
    goods or services or means of livelihood only

    upon the terms imposed by the stronger party
    or go without them. It will also apply where a
    man has no choice, or rather no meaningful
    choice, but to give his assent to a contract or to

    sign on the dotted line in a prescribed or
    standard form or to accept a set of rules as part

    of the contract, however unfair, unreasonable
    and unconscionable a clause in that contract or

    form or rules may be. This principle, however, will
    not apply where the bargaining power of the

    contracting parties is equal or almost equal. This
    principle may not apply where both parties are
    businessmen and the contract is a commercial
    transaction. In today’s complex world of giant
    corporations with their vast infrastructural
    organizations and with the State through its
    instrumentalities and agencies entering into almost
    every branch of industry and commerce, there can be
    myriad situations which result in unfair and
    unreasonable bargains between parties possessing

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    -26-

    wholly disproportionate and unequal bargaining
    power. These cases can neither be enumerated nor
    fully illustrated. The court must judge each case on its

    .

    own facts and circumstances.” (emphasis laid)

    Therefore, the Court has held that the Constitution
    obliges courts to advance social and economic justice and to

    give effect to the equality mandate under Article 14.
    Consequently, courts will neither enforce nor hesitate to
    invalidate contracts, or contractual clauses, that are unfair

    of
    or unreasonable when entered into between parties with
    unequal bargaining power.

    rt
    12.1. Relying on the aforesaid reasoning, another two Judge
    Bench in Pani Ram v. Union of India, reiterated that the

    guarantee of equality under Article 14 extends even to
    situations where a person has no meaningful choice but to
    accept imposed contractual terms, however unfair or
    unreasonable they may be. Applying this principle to the

    facts before it, the Court observed thus: –

    “23. As held by this Court, a right to equality

    guaranteed under Article 14 of the Constitution

    of India would also apply to a man who has no
    choice or rather no meaningful choice, but to
    give his assent to a contract or to sign on the

    dotted line in a prescribed or standard form or
    to accept a set of rules as part of the contract,
    however unfair, unreasonable and
    unconscionable a clause in that contract or form
    or rules may be. We find that the said observations
    rightly apply to the facts of the present case. Can it
    be said that the mighty Union of India and an ordinary
    soldier, who having fought for the country and retired
    from Regular Army, seeking re-employment in the
    Territorial Army, have an equal bargaining power. We

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    are therefore of the considered view that the reliance
    placed on the said document would also be of no
    assistance to the case of the respondents.”

    .

    (emphasis laid)

    Therefore, it is clear that Courts are empowered to
    invalidate unconscionable elements of a contract where the

    parties lack the ability to exercise any real or meaningful
    choice in negotiating its terms. In the present case, the
    appellants were left with no alternative but to accept the

    of
    conditions unilaterally prescribed by the respondent-State in
    order to secure their livelihood and sustain a source of
    income. It would be entirely unrealistic to assume that, in
    rt
    such circumstances, an employee seeking temporary
    employment could meaningfully negotiate or assert a

    position against the overwhelming might of the State
    machinery.

    12.2. At this juncture, the analogy of apples and oranges

    serves as a useful reminder that certain relationships are
    inherently incapable of being assessed on an equal plane. A

    contract between the State and an employee stands on a
    similar footing. The State, in such a relationship, assumes

    the role of a metaphorical lion, endowed with overwhelming
    authority, resources and bargaining strength, whereas the

    employee, who is yet an aspirant, is reduced to the position
    of a metaphorical lamb, possessing little real negotiating
    power. To suggest parity between the two, i.e. the lion and
    the lamb, would be to ignore the stark imbalance that
    defines the relationship.

    12.3. Therefore, where a lion contracts with a lamb, the
    inequality is not incidental but structural, and it is precisely
    this disproportion that calls for judicial sensitivity. In such
    situations, the conscience of Constitutional Courts must
    inevitably tilt in favour of protecting the lamb. We have no

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    -28-

    hesitation in holding that Constitutional Courts are duty-
    bound to act to safeguard those who are vulnerable to
    exploitation, so that employees are not compelled to meekly

    .

    submit to the demands of a vastly dominant contracting

    party like the State, but are instead assured that
    constitutional protections will intervene to prevent such
    exploitation.

    of

    31. To buttress the appellants first submission, reliance

    has been placed on T.M. Sampath v. Ministry of Water
    rt
    Resources, (2015) 5 SCC 333 .

    The appellants therein before the apex court were
    employees of National Water Development Agency
    (“NWDA”) which was established as a society in July 1982
    and was registered under the Societies Registration Act,

    1860. The Society NWDA, fell under the aegis and control,
    both administrative and financial, of the Ministry of Water

    Resources, was fully funded by the Government of India,
    headed by the Union Minister for Water Resources as the

    President. NWDA had framed rules and regulations for its
    smooth functioning.

    The Governing Body of NWDA in its 3rd meeting held on 31-
    3-1983 had approved introduction of Contributory Provident
    Fund Scheme for the employees of NWDA on the lines of the
    Contributory Provident Fund Rules (India), 1962. NWDA did
    not make any distinct CPF rules. The same were duly
    approved by the Governing Body of NWDA.

    Pursuant to the recommendation of the Fourth Central Pay
    Commission, an Office Memorandum dated 1-5-1987 was
    issued by the Ministry of Personnel, Public Grievances and

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    -29-

    Pensions, Department of Pensions and Pensioners’ Welfare,
    for switch-over of employees from Contributory Provident
    Fund Scheme to Pension Scheme, according to which all

    .

    Contributory Provident Fund (CPF) Scheme beneficiaries,

    who were in service of the Central Government on 1-1-1986,
    were deemed to have come over to the Pension Scheme
    unless they specifically opted out to continue under CPF

    Scheme. This Pension Scheme was formulated by the
    Government under the 1972 Pension Rules. The above

    of
    switch-over was applicable to all the Central Government
    employees who were subscribing to the Contributory
    Provident Fund under the Contributory Provident Fund
    rt
    Rules, 1962.

    The Governing Body of NWDA rejected the proposal for

    introduction of Pension-cum-GPF-DCRG Scheme in NWDA.
    The said rejection by the Governing Body, was assailed. The
    petitioners’ before the apex court raised a specific contention

    that their fundamental rights under Articles 14 and 16 had
    been violated by not treating them on a par with their similar
    counterparts in the Central Government, when NWDA falls

    within the meaning of “State” as defined in Article 12 of the

    Constitution. The said contention was rejected by holding
    that NWDA is an autonomous body which has framed its own
    bye-laws for governing its employees and it has been time

    and again reiterated by the apex court that courts must
    adopt an attitude of total non-interference or minimal
    interference in the matter of interpretation of rules framed
    by autonomous institutions. Further it was held that NWDA
    cannot be treated as an instrumentality of the State under
    Article 12. Besides the aforesaid even if it is presumed that
    NWDA is “State” under Article 12 of the Constitution, the
    apex court was of the view that the appellants therein have
    failed to prove that they are on a par with their counterparts,
    with whom they claim parity. The relevant extract of the

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    -30-

    judgement reads as follows;

    15. In light of the facts and circumstances of this case and
    the submissions made by the learned counsel on both sides,

    .

    it can be concluded that NWDA had framed its regulation:

    the CPF Rules, 1982 and they were duly approved by the
    Governing Body of NWDA. As NWDA is an autonomous body

    under the Ministry of Water Resources, it has framed its own
    bye-laws governing the employees. It has been time and
    again reiterated that the court must adopt an attitude of

    of
    total non-interference or minimal interference in the matter
    of interpretation of rules framed by autonomous institutions.
    In Kerala SRTC v. K.O. Varghese (2007) 8 SCC 231, this
    rt
    Court held: (SCC pp. 240-41, paras 18 & 21)

    “18. … KSRTC is an autonomous corporation established
    under the Road Transport Corporations Act, 1950. It can
    regulate the services of its employees by making appropriate
    regulations in that behalf.

    * * *

    21. The High Court … is not correct in thinking that there is
    any compulsion on KSRTC on the mere adoption of Part III

    of KSR to automatically give all enhancements in pension
    and other benefits given by the State Government to its

    employees.”

    Thus, as the appellants are governed by the CPF Rules,
    1982, the OM applicable to the Central Government
    employees is not applicable to them.

    16. On the issue of parity between the employees of NWDA
    and Central Government employees, even if it is assumed
    that the 1982 Rules did not exist or were not applicable on
    the date of the OM i.e. 1-5-1987, the relevant date of parity,
    the principle of parity cannot be applicable to the employees

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    -31-

    of NWDA. NWDA cannot be treated as an instrumentality of
    the State under Article 12 of the Constitution merely on the
    basis that its funds are granted by the Central Government.

    .

    In Zee Telefilms Ltd. v. Union of India (2005) 4 SCC 649, it

    was held by this Court that the autonomous bodies having
    some nexus with the Government by itself would not bring
    them within the sweep of the expression “State” and each

    case must be determined on its own merits. Thus, the plea
    of the employees of NWDA to be treated on a par with their

    of
    counterparts in the Central Government under sub-rule
    (6)(iv) of Rule 209 of the General Financial Rules, merely on
    the basis of funding is not applicable.

    rt

    17. Even if it is presumed that NWDA is “State” under Article
    12
    of the Constitution, the appellants have failed to prove

    that they are on a par with their counterparts, with whom
    they claim parity. As held by this Court in UT, Chandigarh v.
    Krishan Bhandari
    (1996) 11 SCC 348, the claim to equality

    can be claimed when there is discrimination by the State
    between two persons who are similarly situated. The said
    discrimination cannot be invoked in cases where

    discrimination sought to be shown is between acts of two

    different authorities functioning as State under Article 12.
    Thus, the employees of NWDA cannot be said to be “Central
    Government employees” as stated in the OM for its

    applicability.

    18. Thus, by reason that the employees are governed by the
    NWDA CPF Rules, 1982, the OM dated 1-5-1987 is not
    applicable to the appellant employees. Further, as they have
    not established that they are the Central Government
    employees, on a par with their counterparts, their claim of
    parity with the Central Government employees is also
    defeated.

    32. The ratio that courts must adopt an attitude of total

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    -32-

    non-interference or minimal interference in the matter of

    interpretation of rules framed by autonomous institutions has

    .

    no applicability in the case at hand as the respondents in the

    case at hand had initially been engaged in a society in March

    2004. In terms of the notification dated 05.05.2012 whereby

    the society was ordered to be closed, the CAT Plans and

    of
    Compensatory Afforestation of all Hydro Electric Projects in

    Satluj River Basin were to be implemented through the
    rt
    concerned Conservator of Forests.

    33. Moreover, after the society ceased to function on

    30.06.2012 work being done by the respondents in the

    erstwhile society was now required to be performed by the

    existing staff posted in the Rampur Forest Circle and Division.

    Admittedly there was an acute shortage of staff in the Rampur

    Circle hence a fresh contract was entered into with the

    respondents. The conservator of forest Rampur circle vide

    letter dated 30.05.2012 had requested for the accommodation

    of the computer operators engaged in the society in his office

    as work of the society after its closure was to be looked after

    by his office and payment to the computer operators was

    sought to be made from “CAMPA” (page 183 of the paper

    book).

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    -33-

    34. Besides funds to the State CAMPA are provided by

    the statutory national body CAMPA. As per the contract

    .

    entered into between the parties the respondents were in the

    deployment of CAMPA in the office of the Chief Conservator

    HP. Once the Compensatory Afforestation Fund Act, 2016,

    came into vogue on 30.09.2018 the governing body of the

    of
    State CAMPA could with the prior concurrence of the State

    Government create posts in the State Authority. With respect
    rt
    to such posts created there exists no bar for regular

    recruitment nor pay parity with equivalent post holders in the

    government especially when officers appointed on deputation

    have been given the benefit of pay parity with their equivalent

    counterparts. Hence even on the question of pay parity the

    judgement referred to by the appellants has no applicability.

    35. The State CAMPA is performing governmental

    functions. Primarily consists of government functionaries. It is

    mainly funded by the national body. No fault can, therefore,

    be found with the finding returned that the State CAMPA is an

    extension of the government.

    36. Other than the aforesaid, reliance has been placed

    on 2023 SCC Online SC 1417 titled Ganesh Digamber

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    -34-

    Jambhrunkar and others versus State of Maharashtra

    and others to deny the claim of regularisation being raised in

    .

    the case at hand. In the said case contractual appointment of

    the petitioners before the apex court had been made in the

    year 2011. Aggrieved by the regular recruitment initiated

    which had reached its culmination the same was assailed by

    of
    the petitioners before the high court in 2016 who sought

    regularisation. The plea of regularisation was rejected by the
    rt
    apex court as there existed no policy for regularisation. The

    said judgement is clearly distinguishable as in the case at hand

    there exists a policy for regularisation.

    37. Next reliance is placed on Chanchal Goyal (Dr) v.

    State of Rajasthan, (2003) 3 SCC 485 to contend that the

    principle of legitimate expectation has no application in the

    case at hand.

    The only point involved in the said case before the Apex
    Court was whether Chanchal Goyal’s (Dr) termination from
    service was in order. Therein Chanchal Goyal’s (Dr)
    appointment dated 27-11-1974 as Lady Doctor under the
    Municipal Council, Ganganagar contained a stipulation
    appointment that she was being posted purely on temporary
    basis for the period of six months or till the candidate
    selected by the Rajasthan Public Service Commission is
    available, whichever is earlier. Her working period continued
    to be extended. The appointment was made in exercise of

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    -35-

    powers conferred under the relevant provisions of the
    Rajasthan Municipalities Act, 1959 read with the relevant
    Rajasthan Municipal Service Rules. In the interregnum she

    .

    was selected by the Service Commission in October 1976

    and August 1982 she did not join pursuant to such selection
    and continued on the basis of the orders of extension issued
    by the Local Self-Government Department of the

    Government. On 1-10-1988 her services were terminated on
    the ground that the candidate selected by the Service

    of
    Commission was available. The learned Single Judge held
    that termination of the appellant’s services was illegal since
    order was passed ignoring the fact that she had put in 14
    rt
    years of service. The authorities were directed to adjudge
    her suitability within a period of one month and regularize

    her services with all benefits available to a substantively
    appointed member of the service. In appeal the Division
    Bench held that Chanchal Goyal (Dr) continued merely as a
    temporary employee on the basis of appointment made

    under the relevant Rule and as she had not been selected by
    the Service Commission in accordance with the Rules. She

    had no right to hold the post. In terms of interim orders
    passed she was allowed to continue in the service during the

    pendency of the matter before the Rajasthan High Court.
    The plea of legitimate expectation raised in the aforesaid

    backdrop was rejected by the apex court in the below
    mentioned terms.

    It has not been shown as to how any act was done by the
    authorities which created an impression that the conditions
    attached in the original appointment order were waived.
    Mere continuance does not imply such waiver. No legitimate
    expectation can be founded on such unfounded impressions.
    It was not even indicated as to who, if any, and with what
    authority created such impression. No waiver which would
    be against requisite compliances can be countenanced.

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    -36-

    Whether an expectation exists is, self-evidently, a question
    of fact. Clear statutory words override any expectation,
    however founded. (See R. v. Director of Public Prosecutions,

    .

    ex p Kebilene (1999) 3 WLR 972 : (1999) 4 All ER 801 :

    (2000) 2 AC 326 (HL)).

    38. The appointment in the case at hand was not made

    on a temporary basis or till a candidate selected was available,

    of
    whichever is earlier. Rather in the case at hand the

    respondents have continued to discharge their duties on
    rt
    contractual posts for a considerable length of time. On account

    of repeated extensions the respondents have continued in

    service and have refrained from seeking alternative

    employment, notwithstanding the contractual nature of their

    engagement. In the aforesaid facts and attending

    circumstances it is but natural that a legitimate expectation

    arises that the appellants would, at some stage, recognize

    their long and continuous service. With respect to the

    legitimate expectation of the respondents in the case at hand,

    it would be relevant to refer to the binding judgement of the

    apex court in Bhola Nath (supra) wherein the case of

    similarly situated employees has been dealt with. The relevant

    extract thereof reads as under:-

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    -37-

    Legitimate Expectation of the employees: –

    13. Another facet requiring consideration in the case of
    contractual employees, such as the present appellants, is

    .

    the doctrine of legitimate expectation. Where employees

    have continued to discharge their duties on contractual
    posts for a considerable length of time, as in the present

    case, it is but natural that a legitimate expectation arises
    that the State would, at some stage, recognize their long
    and continuous service. It is in this belief, bolstered by

    of
    repeated extensions granted by the Executive, that such
    employees continue in service and refrain from seeking
    alternative employment, notwithstanding the contractual
    rt
    nature of their engagement. At this juncture, it is thus
    apposite to advert to the principles governing the doctrine

    of legitimate expectation as enunciated by this Court in
    Army Welfare Education Society v. Sunil Kumar Sharma,
    8 wherein it was held as follows: –

    “63. A reading of the aforesaid decisions brings
    forth the following features regarding the doctrine

    of legitimate expectation:

    63.1. First, legitimate expectation must be
    based on a right as opposed to a mere hope,

    wish or anticipation;

    63.2. Secondly, legitimate expectation must
    arise either from an express or implied
    promise; or a consistent past practice or custom
    followed by an authority in its dealings;

    63.5. Fifthly, legitimate expectation operates in
    the realm of public law, that is, a plea of

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    -38-

    legitimate action can be taken only when a
    public authority breaches a promise or
    deviates from a consistent past practice,

    .

    without any reasonable basis.

    64. The aforesaid features, although not
    exhaustive in nature, are sufficient to help us
    in deciding the applicability of the doctrine of

    of
    legitimate expectation to the facts of the case
    at hand. It is clear that legitimate expectation,
    jurisprudentially, was a device created in
    rt
    order to maintain a check on arbitrariness in
    State action. It does not extend to and cannot

    govern the operation of contracts between private
    parties, wherein the doctrine of promissory
    estoppel holds the field.”

    
    
    
                              (emphasis laid)
    
                                      It     is,    therefore,        not      difficult    to
    
    
    
    
    

    comprehend the expectation with which such

    contractual employees continue in the service of
    the State. The repeated conduct of the employer-
    State in expressing confidence in their performance

    and consistently granting monetary upgrades &
    tenure extensions reasonably nurtures an
    expectation that their long and continuous service
    would receive further recognition.

    39. Thus, we are of the considered view that the

    learned Single Judge has not erred in any manner in allowing

    the writ petition and we also do not find any plausible reason

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    -39-

    to take a different view. Therefore, the present appeal is

    dismissed being devoid of merit and the judgment passed by

    .

    learned Single Judge is upheld.

    The present appeal is disposed of in the aforesaid

    terms, so also the pending application(s), if any.

    
    
    
    
                                          of
        (G.S. Sandhawalia)                   (Bipin Chander Negi)
           Chief Justicert                             Judge
    
    
        17th March, 2026
    
          (Gaurav Rawat)
    
    
    
    
    
    
    
    
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