Satya Narayan Panda vs State Of Odisha & Others on 7 July, 2026

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    Orissa High Court

    Satya Narayan Panda vs State Of Odisha & Others on 7 July, 2026

    Author: Biraja Prasanna Satapathy

    Bench: Biraja Prasanna Satapathy

    AFR           IN THE HIGH COURT OF ORISSA AT CUTTACK
    
                              W.P.(C) No.36764 of 2020
    
            In the matter of an application under Articles 226 and 227
          of the Constitution of India.
                                               ..................
    
           Satya Narayan Panda                        ....                     Petitioner
    
    
                                               -versus-
    
           State of Odisha & Others                   ....             Opposite Parties
    
    
                    For Petitioner         :       Mr. K.K. Swain, Advocate
    
                    For Opp. Parties :          Mr. P.K. Panda, ASC
    
    
    
          PRESENT:
    
               THE HONBLE JUSTICE BIRAJA PRASANNA SATAPATHY
          ---------------------------------------------------------------------------------
           Date of Hearing:07.07.2026 and Date of Judgment:07.07.2026
          --------------------------------------------------------------------------------
    
             Biraja Prasanna Satapathy, J.
    

    1. Heard Mr. K.K. Swain, learned counsel for the

    petitioner and Mr. P.K. Panda, learned Addl. Standing

    SPONSORED

    Counsel for the State.

    2. The present Writ Petition has been filed inter alia

    with the following prayer

    “Under the above circumstances, it is humbly
    prayed that the writ petition may be allowed;

    // 2 //

    (A) a writ of mandamus or an appropriate writ
    may be issued quashing/setting aside the impugned
    order dated. 01.12.2020 passed by the opposite party
    No.1-Additional Chief Secretary to Government under
    Annexure-10 and necessary direction may be made to
    opposite parties, more particularly to the opposite party
    No.1 to regularize the services of the petitioner as per the
    Odisha Pharmacist Service (Method of Recruitment and
    Conditions of Service) Rules, 2019 by taking into account
    his period of service from 17.02.2011 till date as
    Contractual Pharmacist which is more than ten years
    under the State Government with all consequential
    service benefits;

    (B) And any other order/orders or
    direction/directions may be issued so as to give complete
    relief to the petitioner.”

    3. Learned counsel for the petitioner contended that

    pursuant to notice issued under Annexure-1 on

    03.11.2007 by the Medical Officer, Singhpur, P.H.C., in

    the district of Jajpur to fill up the post of Pharmacist

    under the Rogi Kalyan Samiti (RKS), petitioner was

    engaged as a Pharmacist on daily wage basis vide order

    dated 13.11.2007 under Annexure-2.

    3.1. It is contended that while continuing as such on

    daily wage basis, petitioner vide order dated

    15.02.2011 so issued by O.P. No.3 under Annexure-7,

    was appointed on contractual basis. It is contended

    that such an order was passed by the Opp. Party No.3

    basing on an order passed by the Tribunal in a batch of

    Page 2 of 28
    // 3 //

    Original Applications on 01.10.2020 in O.A. No.3077(C)

    of 2009 and batch.

    3.2. It is however contended that seeking parity when

    some of the similarly situated employees approached

    the Tribunal for being provided with contractual

    appointment and the Tribunal directed for

    consideration of their claim, Govt. without proper

    appreciation of the Tribunal’s order, passed an order

    on 09.01.2013 so enclosed as Annexure-20 to the Addl.

    Affidavit, wherein the order of appointment issued in

    favour of the petitioner on contractual basis was set-

    aside and petitioner was allowed to continue on daily

    wage basis under RKS.

    3.3. It is contended that such an order passed by the

    Govt.-O.P. No.1 on 09.01.2013 was assailed by the

    petitioner by filing O.A. No.171(C) of 2013. However,

    the said matter after being transferred to this Court

    due to abolition of the Tribunal, was disposed of vide

    order dated 29.09.2022 under Annexure-21 to the

    Addl. Affidavit.

    Page 3 of 28

    // 4 //

    3.4. It is contended that even though this Court did

    not interfere with the order passed by the Govt.-O.P.

    No.1 under Annexure-20, but while not interfering with

    the same, directed for consideration of the petitioner’s

    claim to get the benefit of regularization, in terms of the

    provisions contained under the Odisha Pharmacist

    Service (Method of Recruitment and Conditions of

    Service) Rules, 2019.

    3.5. However, such direction of this Court, so

    contained in order dated 29.09.2022 under Annexure-

    21 to the additional affidavit, was also not properly

    appreciated and claim of the petitioner to get the

    benefit of regularisation was rejected vide order dated

    21.02.2023 under Annexure-22, on the ground that

    petitioner being an appointee as a daily wager under

    RKS and petitioner since is continuing as a contractual

    employee because of an interim order passed in

    W.P.C(OAC) No.171 of 2013, petitioner is not eligible

    and entitled to get the benefit of regularization.

    Page 4 of 28

    // 5 //

    3.6. It is contended that even though challenging order

    dated 21.02.2023, petitioner had filed W.P.(C) No.6377

    of 2023, but this Court permitted the petitioner to

    withdraw the said Writ Petition with liberty to

    prosecute the present Writ Petition vide order dated

    05.12.2025.

    3.7. It is however fairly contended that even though

    order of appointment appointing the petitioner on

    contractual basis was set aside by the State-O.P. No.1

    vide order dated 09.01.2013, but petitioner as on date

    is continuing as a contractual Pharmacist in the

    establishment of Opp. party No.3 and drawing his

    remuneration as due and admissible.

    3.8. Learned counsel for the petitioner contended that

    since petitioner was initially engaged as a daily wage

    Pharmacist vide order dated 20.11.2007 under

    Annexure-2 and subsequently was appointed as a

    contractual Pharmacist vide order dated 15.02.2011

    under Annexure-7, and there is no dispute that

    petitioner is continuing as a contractual Pharmacist

    Page 5 of 28
    // 6 //

    since then on the face of the order passed by the Govt.-

    O.P. No.1 on 09.01.2013 under Annexure-20 to the

    additional affidavit, in view of the recent decisions of

    the Hon’ble Apex Court in the case of Jaggo vs. Union

    of India & Ors., 2024 SCC OnLine SC 3826; Shripal

    & Anr. vs. Nagar Nigam, Ghaziabad, 2025 SCC

    OnLine SC 221, as well as Dharam Singh & Ors. vs.

    State of U.P. & Anr. (Civil Appeal No(s).8558 of

    2018 and another decision of the Apex Court in the

    case of Bhola Nath Vs. State of Jharkhand and

    Others, 2026 INSC 99 as well as in the case of

    Sukhendu Bhatacharjee & Ors. vs. the State of

    Assam & Ors. reported in 2026 INSC 523, petitioner is

    eligible and entitled to get the benefit of regularisation

    which has been illegally rejected vide order dated

    01.12.2020 under Annexure-10.

    3.9. View expressed by the Hon’ble Apex Court in the

    case of Jaggo in Para-22 to 25 and 27 reads as

    follows:-

    “22. The pervasive misuse of temporary
    employment contracts, as exemplified in this case,
    reflects a broader systemic issue that adversely
    Page 6 of 28
    // 7 //

    affects workers’ rights and job security. In the
    private sector, the rise of the gig economy has led to
    an increase in precarious employment
    arrangements, often characterized by lack of
    benefits, job security, and fair treatment. Such
    practices have been criticized for exploiting workers
    and undermining labour standards. Government
    institutions, entrusted with upholding the principles
    of fairness and justice, bear an even greater
    responsibility to avoid such exploitative employment
    practices. When public sector entities engage in
    misuse of temporary contracts, it not only mirrors
    the detrimental trends observed in the gig economy
    but also sets a concerning precedent that can erode
    public trust in governmental operations.

    23. The International Labour Organization (ILO), of
    which India is a founding member, has consistently
    advocated for employment stability and the fair
    treatment of workers. The ILO’s Multinational
    Enterprises Declaration6 encourages companies to
    provide stable employment and to observe
    obligations concerning employment stability and
    social security. It emphasizes that enterprises
    should assume a leading role in promoting
    employment security, particularly in contexts where
    job discontinuation could exacerbate long-term
    unemployment.

    24. The landmark judgement of the United State in
    the case of Vizcaino v. Microsoft Corporation7
    serves as a pertinent example from the private
    sector, illustrating the consequences of
    misclassifying employees to circumvent
    providing benefits. In this case, Microsoft classified
    certain workers as independent contractors, thereby
    denying them employee benefits. The U.S. Court of
    Appeals for the Ninth
    Circuit determined that these workers were, in fact,
    common-law employees and were entitled to the
    same benefits as regular employees. The Court
    noted that large Corporations have increasingly
    adopted the practice of hiring temporary employees
    or independent contractors as a means of avoiding
    payment of employee benefits, thereby increasing
    their profits. This judgment underscores the
    principle that the nature of the work performed,
    rather than the label assigned to the worker, should
    determine employment status and the
    corresponding rights and benefits. It highlights the
    judiciary’s role in rectifying such misclassifications
    and ensuring that workers receive fair treatment.

    Page 7 of 28

    // 8 //

    25. It is a disconcerting reality that temporary
    employees, particularly in government institutions,
    often face multifaceted forms of exploitation. While
    the foundational purpose of temporary contracts
    may have been to address
    short-term or seasonal needs, they have
    increasingly become a mechanism to evade long-
    term obligations owed to employees. These practices
    manifest in several ways:

    • Misuse of “Temporary” Labels:

    Employees engaged for work that is essential,
    recurring, and integral to the functioning of an institution are
    often labeled as “temporary” or “contractual,” even when
    their roles mirror those of regular employees. Such
    misclassification deprives workers of the dignity, security,
    and benefits that regular employees are entitled to, despite
    performing identical tasks.

    • Arbitrary Termination: Temporary employees are
    frequently dismissed without cause or notice, as seen in the
    present case. This practice undermines the principles of
    natural justice and subjects workers to a state of constant
    insecurity, regardless of the quality or duration of their
    service.

    • Lack of Career Progression: Temporary employees
    often find themselves excluded from opportunities for skill
    development, promotions, or incremental pay raises. They
    remain stagnant in their roles,
    creating a systemic disparity between them and their regular
    counterparts, despite their contributions being equally
    significant.

    • Using Outsourcing as a Shield:

    Institutions increasingly resort to outsourcing roles
    performed by temporary employees, effectively replacing one
    set of exploited workers with another. This practice not only
    perpetuates exploitation but also demonstrates a deliberate
    effort to bypass the obligation to offer regular employment.

    • Denial of Basic Rights and Benefits:

    Temporary employees are often denied fundamental benefits
    such as pension, provident fund, health insurance, and paid
    leave, even when their tenure spans decades. This lack of
    social security subjects them and their families to undue
    hardship, especially in cases of illness, retirement, or
    unforeseen circumstances.

    xxxx xxxx xxxx xxxxx

    27. In light of these considerations, in our opinion, it is
    imperative for government departments to lead by example
    Page 8 of 28
    // 9 //

    in providing fair and stable employment. Engaging workers
    on a temporary basis for extended periods, especially when
    their roles are integral to the organization’s functioning, not
    only contravenes international labour standards but also
    exposes the organization to legal challenges and undermines
    employee morale. By ensuring fair employment
    practices, government institutions can reduce the burden of
    unnecessary litigation, promote job security, and uphold the
    principles of justice and fairness that they are meant to
    embody. This approach aligns with international standards
    and sets a positive precedent for the private sector to follow,
    thereby contributing to the overall betterment of labour
    practices in the country.”

    3.10. Hon’ble Apex Court in the case of Shripal in

    Para-14, 15, 17 & 18(IV) has held as follows:-

    “14. …… More importantly, Uma Devi cannot serve
    as a shield to justify exploitative engagements
    persisting for years without the Employer undertaking
    legitimate recruitment.

    15. ……. Indian labour law strongly disfavors
    perpetual daily-wage or contractual engagements in
    circumstances where the work is permanent in nature.

    xxxx xxxxx xxxxx xxxxxx

    17. Indeed, bureaucratic limitations cannot trump
    the legitimate rights of workmen who have served
    continuously in de facto regular roles for an extended
    period.

    18.(IV) The Respondent Employer is directed to
    initiate a fair and transparent process for regularizing
    the Appellant Workmen within six months from the
    date of reinstatement, duly considering the fact that
    they have performed perennial municipal duties akin
    to permanent posts. In assessing regularization, the
    Employer shall not impose educational or procedural
    criteria retroactively if such requirements were never
    applied to the Appellant Workmen or to similarly
    situated regular employees in the past. To the extent
    that sanctioned vacancies for such duties exist or are
    required, the Respondent Employer shall expedite all
    necessary administrative processes to ensure these
    longtime employees are not indefinitely retained on

    Page 9 of 28
    // 10 //

    daily wages contrary to statutory and equitable
    norms.”

    3.11. Placing reliance on the decision in the case of

    Jaggo and Shripal, Hon’ble Apex Court in the case

    of Dharam Singh, in Paragraph-13, 14, 15 & 17, 18,

    19 & 20 has held as follows:

    “13. As we have observed in both Jaggo (Supra)
    and Shripal (Supra), outsourcing cannot become a
    convenient shield to perpetuate precariousness and
    to sidestep fair engagement practices where the work
    is inherently perennial. The Commission’s further
    contention that the appellants are not “full-time”

    employees but continue only by virtue of interim
    orders also does not advance their case. That interim
    protection was granted precisely because of the long
    history of engagement and the pendency of the
    challenge to the State’s refusals. It neither creates
    rights that did not exist nor erases entitlements that
    may arise upon a proper adjudication of the legality
    of those refusals.

    14. The learned Single Judge of the High Court also
    declined relief on the footing that the petitioners had
    not specifically assailed the subsequent decision
    dated 25.11.2003. However, that view overlooks that
    the writ petition squarely challenged the 11.11.1999
    refusal as the High Court itself directed a fresh
    decision during pendency, and the later rejection was
    placed on record by the respondents. In such
    circumstances, we believe that the High Court was
    obliged to examine the legality of the State’s stance in
    refusing sanction, whether in 1999 or upon
    reconsideration in 2003, rather than dispose of the
    matter on a mere technicality. The Division Bench of
    the High Court compounded the error by affirming the
    dismissal without engaging with the principal
    challenge or the intervening material. The approach
    of both the Courts, in reducing the dispute to a
    mechanical enquiry about “rules” and “vacancy”
    while ignoring the core question of arbitrariness in
    the State’s refusal to sanction posts despite perennial
    need and long service, cannot be sustained.

    15. Therefore, in view of the foregoing observations,
    the impugned order of the High Court cannot be
    sustained. The State’s refusals dated 11.11.1999
    Page 10 of 28
    // 11 //

    and 25.11.2003,in so far as they concern the
    Commission’s proposals for sanction/creation of
    Class-III/Class-IV posts to address perennial
    ministerial/attendant work, are held unsustainable
    and stand quashed.

    xxx xxx xxx

    17. Before concluding, we think it necessary to recall
    that the State (here referring to both the Union and
    the State governments) is not a mere market
    participant but a constitutional employer. It cannot
    balance budgets on the backs of those who perform
    the most basic and recurring public functions. Where
    work recurs day after day and year after year, the
    establishment must reflect that reality in its
    sanctioned strength and engagement practices. The
    long-term extraction of regular labour under
    temporary labels corrodes confidence in public
    administration and offends the promise of equal
    protection. Financial stringency certainly has a place
    in public policy, but it is not a talisman that overrides
    fairness, reason and the duty to organise work on
    lawful lines.

    18. Moreover, it must necessarily be noted that “ad-
    hocism” thrives where administration is opaque. The
    State Departments must keep and produce accurate
    establishment registers, muster rolls and outsourcing
    arrangements, and they must explain, with evidence,
    why they prefer precarious engagement over
    sanctioned posts where the work is perennial. If
    “constraint” is invoked, the record should show what
    alternatives were considered, why similarly placed
    workers were treated differently, and how the chosen
    course aligns with Articles 14, 16 and 21 of the
    Constitution of India. Sensitivity to the human
    consequences of prolonged insecurity is not
    sentimentality. It is an institutional discipline that
    should inform every decision affecting those who
    keep public offices running.

    19. Having regard to the long, undisputed service of
    the appellants, the admitted perennial nature of their
    duties, and the material indicating vacancies and
    comparator regularisations, we issue the following
    directions:

    i. Regularization and creation of Supernumerary
    posts: All appellants shall stand regularized with
    effect from 24.04.2002, the date on which the High
    Court directed a fresh recommendation by the
    Commission and a fresh decision by the State on
    sanctioning posts for the appellants. For this purpose,
    the State and the successor establishment (U.P.
    Education Services Selection Commission) shall
    create supernumerary posts in the corresponding
    cadres, Class-III (Driver or equivalent) and Class-IV

    Page 11 of 28
    // 12 //

    (Peon/Attendant/Guard or equivalent) without any
    caveats or preconditions. On regularization, each
    appellant shall be placed at not less than the
    minimum of the regular pay-scale for the post, with
    protection of last-drawn wages if higher and the
    appellants shall be entitled to the subsequent
    increments in the pay scale as per the pay grade. For
    seniority and promotion, service shall count from the
    date of regularization as given above.
    ii. Financial consequences and arrears: Each
    appellant shall be paid as arrears the full difference
    between (a) the pay and admissible allowances at
    the minimum of the regular pay-level for the post from
    time to time, and (b) the amounts actually paid, for
    the period from 24.04.2002 until the date of
    regularization /retirement/death, as the case may
    be. Amounts already paid under previous interim
    directions shall be so adjusted. The net arrears shall
    be released within three months and if in default, the
    unpaid amount shall carry compound interest at 6%
    per annum from the date of default until payment.
    iii. Retired appellants: Any appellant who has
    already retired shall be granted regularization with
    effect from 24.04.2002 until the date of
    superannuation for pay fixation, arrears under clause

    (ii), and recalculation of pension, gratuity and other
    terminal dues. The revised pension and terminal
    dues shall be paid within three months of this
    Judgment.

    iv. Deceased appellants: In the case of Appellant No.
    5 and any other appellant who has died during
    pendency, his/her legal representatives on record
    shall be paid the arrears under clause (ii) up to the
    date of death, together with all terminal/retiral dues
    recalculated consistently with clause (i), within three
    months of this Judgement.

    v. Compliance affidavit: The Principal Secretary,
    Higher Education Department, Government of Uttar
    Pradesh, or the Secretary of the U.P. Education
    Services Selection Commission or the prevalent
    competent authority, shall file an affidavit of
    compliance before this Court within four months of
    this Judgement.

    20. We have framed these directions
    comprehensively because, case after case, orders of
    this Court in such matters have been met with fresh
    technicalities, rolling “reconsiderations,” and
    administrative drift which further prolongs the
    insecurity for those who have already laboured for
    years on daily wages. Therefore, we have learned
    that Justice in such cases cannot rest on simpliciter
    directions, but it demands imposition of clear duties,

    Page 12 of 28
    // 13 //

    fixed timelines, and verifiable compliance .As a
    constitutional employer, the State is held to a higher
    standard and therefore it must organise its perennial
    workers on a sanctioned footing, create a budget for
    lawful engagement, and implement judicial directions
    in letter and spirit. Delay to follow these obligations
    is not mere negligence but rather it is a conscious
    method of denial that erodes livelihoods and dignity
    for these workers. The operative scheme we have set
    here comprising of creation of supernumerary posts,
    full regularization, subsequent financial benefits, and
    a sworn affidavit of compliance, is therefore a
    pathway designed to convert rights into outcomes
    and to reaffirm that fairness in engagement and
    transparency in administration are not matters of
    grace, but obligations under Articles 14, 16 and 21 of
    the Constitution of India.”

    3.12. It is contended that in the recent decision of the

    Hon’ble Apex Court in the case of Bhola Nath so cited

    (supra), Hon’ble Apex Court in Para-13.5 to 14 of the

    judgment has held as follows:-

    “13.5. Such a decision must necessarily be a conscious
    and reasoned one. An employee who has satisfactorily
    discharged his duties over several years and has been
    granted repeated extensions cannot, overnight, be treated
    as surplus or undesirable. We are unable to accept the
    justification advanced by the respondents as the
    obligation of the State, as a model employer, extends to
    fair treatment of its employees irrespective of whether
    their engagement is contractual or regular.

    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 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
    Page 13 of 28
    // 14 //

    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 continued for years without
    undertaking regular recruitment. The Court further
    clarified that Umadevi itself draws a distinction between
    appointments that 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 careers and livelihood of such part-time and
    contractual employees are guided by fairness and
    reason.

    13.10. In the aforesaid backdrop, we are unable to
    persuade ourselves to accept the respondent-State’s
    contention that the mere contractual nomenclature of the
    appellants’ engagement denudes them of constitutional
    protection. The State, having availed of the appellants’
    services on sanctioned posts for over a decade pursuant
    to a due process of selection and having consistently
    acknowledged their satisfactory performance, cannot, in
    the absence of cogent reasons or a speaking decision,
    abruptly discontinue such engagement by taking refuge
    behind formal contractual clauses. Such action is
    manifestly arbitrary, inconsistent with the obligation of
    the State to act as a model employer, and fails to
    withstand scrutiny under Article 14 of the Constitution.

    FINAL CONCLUSION:

    14. In light of our discussion, in the foregoing
    paragraphs, we summarize our conclusions as follows:

    I. The respondent-State was not justified in continuing
    the appellants on sanctioned vacant posts for over a
    Page 14 of 28
    // 15 //

    decade under the nomenclature of contractual
    engagement and thereafter denying them consideration
    for regularization.

    II. Abrupt discontinuance of such long-standing
    engagement solely on the basis of contractual
    nomenclature, without either recording cogent reasons or
    passing a speaking order, is manifestly arbitrary and
    violative of Article 14 of the Constitution.

    III. Contractual stipulations purporting to bar claims for
    regularization cannot override constitutional guarantees.
    Acceptance of contractual terms does not amount to
    waiver of fundamental rights, and contractual
    stipulations cannot immunize arbitrary State action from
    constitutional scrutiny.

    IV. The State, as a model employer, cannot rely on
    contractual labels or mechanical application of Umadevi
    (supra) to justify prolonged ad-hocism or to discard long-

    serving employees in a manner inconsistent with
    fairness, dignity and constitutional governance.

    V. In view of the foregoing discussion, we direct the
    respondent-State to forthwith regularize the services of all
    the appellants against the sanctioned posts to which they
    were initially appointed. The appellants shall be entitled
    to all consequential service benefits accruing from the
    date of this judgment.”

    3.13.:- Hon’ble Apex Court in Para 73 to 79 of the

    decision in the case of Sukhendu Bhatacharjee

    has held as follows:-

    73. As regards the contention of Shri Gupta that
    after the decision in Umadevi (supra) no
    regularization can be effected in respect of
    employees who were not appointed against duly
    sanctioned posts, we are unable to accept such a
    sweeping proposition in the facts of the present
    case. The submission proceeds on the premise that
    Umadevi (supra) lays down an absolute and
    inflexible embargo against all forms of
    regularization irrespective of the surrounding
    circumstances. Such an interpretation, in our
    considered view, does not reflect the true scope
    and ratio of the decision.

    Page 15 of 28

    // 16 //

    74. This Court in Jaggo (supra), deprecated the
    tendency of the State to take mechanical shelter
    under Umadevi (supra) to deny relief to employees
    who had been performing work of a permanent
    and essential nature for long years. This Court
    observed as follows: –

    “12. Despite being labelled as “part-time
    workers,” the appellants performed these
    essential tasks on a daily and continuous
    basis over extensive periods, ranging from
    over a decade to nearly two decades. Their
    engagement was not sporadic or temporary
    in nature; instead, it was recurrent, regular,
    and akin to the responsibilities typically
    associated with sanctioned posts. Moreover,
    the respondents did not engage any other
    personnel for these tasks during the
    appellants’ tenure, underscoring the
    indispensable nature of their work.

    13. The claim by the respondents that these
    were not regular posts lacks merit, as the
    nature of the work 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’ termination
    demonstrates the inherent need for these
    services. This act of outsourcing, which
    effectively replaced one set of workers with
    another, further underscores that the work in
    question was neither temporary nor
    occasional.

    19. It is evident from the foregoing that the
    appellants’ roles were not only essential but
    also indistinguishable from those of regular
    employees. Their sustained contributions
    over extended periods, coupled with absence
    of any adverse record, warrant equitable
    treatment and regularization of their services.
    Denial of this benefit, followed by their
    Page 16 of 28
    // 17 //

    arbitrary termination, amounts to manifest
    injustice and must be rectified.

    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 basis can, over the time,
    transform what was initially ad-hoc or
    temporary into a scenario demanding fair
    regularization. In a recent judgment of this
    Court in Vinod Kumar v. Union of India, it
    was held that held that procedural
    formalities cannot be used to deny
    regularization of service to an employee
    whose appointment was termed “temporary”

    but has performed the same duties as
    performed by theregular employee over a
    considerable period in the capacity of the
    regular employee.

    22. The pervasive misuse of temporary
    employment contracts, as exemplified in this
    case, reflects a broader systemic issue that
    adversely affects workers’ rights and job
    security. In the private sector, the rise of the
    gig economy has led to an increase in
    precarious employment arrangements, often
    characterized by lack of benefits, job
    security, and fair treatment. Such practices
    have been criticized for exploiting workers
    and undermining labour standards.

    Government institutions, entrusted with
    upholding the principles of fairness and
    justice, bear an even greater responsibility to
    Page 17 of 28
    // 18 //

    avoid such exploitative employment
    practices. When public sector entities engage
    in misuse of temporary contracts, it not only
    mirrors the detrimental trends observed in
    the gig economy but also sets a concerning
    precedent that can erode public trust in
    governmental operations.

    25. It is a disconcerting reality that
    temporary employees, particularly in
    government institutions, often face
    multifaceted forms of exploitation. While the
    foundational purpose of temporary contracts
    may have been to address short-term or
    seasonal needs, they have increasingly
    become a mechanism to evade long-term
    obligations owed to employees. These
    practices manifest in several ways:

    • Misuse of “Temporary” Labels: Employees
    engaged for work that is essential, recurring,
    and integral to the functioning of an
    institution are often labeled as “temporary”
    or “contractual,” even when their roles mirror
    those of regular employees. Such
    misclassification deprives workers of the
    dignity, security, and benefits that
    regularemployees are entitled to, despite
    performing identical tasks.

    • Arbitrary Termination: Temporary
    employees are frequently dismissed without
    cause or notice, as seen in the present case.
    This practice undermines the principles of
    natural justice and subjects workers to a
    state of constant insecurity, regardless of the
    quality or duration of their service.

    • Lack of Career Progression: Temporary
    employees often find themselves excluded
    from opportunities for skill development,
    promotions, or incremental pay raises. They
    remain stagnant in their roles, creating a
    systemic disparity between them and their
    regular counterparts, despite their
    contributions being equally significant.

    Page 18 of 28

    // 19 //

    • Using Outsourcing as a Shield: Institutions
    increasingly resort to outsourcing roles
    performed by temporary employees,
    effectively replacing one set of exploited
    workers with another. This practice not only
    perpetuates exploitation but also
    demonstrates a deliberate effort to bypass
    the obligation to offer regular employment.

    • Denial of Basic Rights and Benefits:

    Temporary employees are often denied
    fundamental benefits such as pension,
    provident fund, health insurance, and paid
    leave, even when their tenure spans
    decades. This lack of social security subjects
    them and their families to undue hardship,
    especially in cases of illness, retirement, or
    unforeseen circumstances.

    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 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 onetime measure.
    However, the laudable intent of the judgment
    is being subverted when institutions rely on
    its dicta to indiscriminately reject the claims
    of employees, even in cases where 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
    Page 19 of 28
    // 20 //

    against employees who have rendered
    indispensable services over decades.

    27. In light of these considerations, in our
    opinion, it is imperative for government
    departments to lead by example in providing
    fair and stable employment. Engaging
    workers on a temporary basis for extended
    periods, especially when their roles are
    integral to the organization’s functioning, not
    only contravenes international labour
    standards but also exposes the organization
    to legal challenges and undermines employee
    morale. By ensuring fair employment
    practices, government institutions can reduce
    the burden of unnecessary litigation, promote
    job security, and uphold theprinciples of
    justice and fairness that they are meant to
    embody. This approach aligns with
    international standards and sets a positive
    precedent for the private sector to follow,
    thereby contributing to the overall betterment
    of labour practices in the country.”

    75. Recently, this Court in Bhola Nath (supra)
    while relying on the judgment of Jaggo (supra),
    Shripal (supra), and Dharam Singh (supra)
    observed as follows:-

    “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 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

    Page 20 of 28
    // 21 //

    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
    continued for years without undertaking
    regular recruitment. The Court further
    clarified that Umadevi itself draws
    adistinction between appointments that 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
    “adhocism” 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 careers and livelihood of
    such part-time and contractual employees
    are guided by fairness and reason.”

    76. What emerges from the principles enunciated
    in the aforesaid decisions is that the State cannot
    rely upon the mere form of engagement to deny
    fair and equitable treatment to employees who
    have served it for long years. The consistent
    thread runningthrough these judgments is that
    Umadevi (supra) cannot be invoked as a blanket
    barrier to justify prolonged and continued
    Page 21 of 28
    // 22 //

    engagements of a temporary or ad hoc nature,
    especially where the employees have been
    discharging essential and recurring functions of
    the State. The Court has repeatedly emphasised
    that the distinction between “illegal” and
    “irregular” appointments must be kept in view,
    that long and continuous service is a relevant
    consideration, and that the State, as a model
    employer, is under a constitutional obligation to act
    with fairness, consistency and reasonableness.
    The practice of retaining employees for decades
    under deceptively titled designations, while
    simultaneously extracting regular work integral to
    the administration, has been disapproved
    consistently.

    77. Applying these principles to the present case, it
    is evident that engaging workers on muster rolls
    was a consistently employed policy of the State
    which continued for prolonged period of time. The
    appellants were not engaged for sporadic or
    seasonal purposes but were taken on muster rolls
    and have rendered continuous service for decades
    in departments performing regular
    governmentalfunctions. The State itself
    acknowledged the magnitude of the issue and
    framed a Cabinet policy to regularize similarly
    situated workers, acting upon it in respect of
    nearly 30,000 employees. In such circumstances,
    to deny consideration to the fraction of remaining
    eligible workers including the appellants, by
    taking shelter under a rigid reading of Umadevi
    (supra) would defeat the very principles of fairness
    and non-arbitrariness that this Court has
    consistently upheld.

    78. In the aforesaid backdrop, we are unable to
    accept the contention of the State that the
    appellants cannot be granted regularization on the
    ground that they were not initially appointed
    against duly sanctioned posts. The State, having
    engaged the appellants prior to 1st April, 1993,
    utilised their services continuously for decades,
    and having itself framed and implemented a
    Cabinet policy regularizing nearly 30,000 similarly
    situated workers, cannot now exclude the
    appellants by taking shelter behind a rigid or
    Page 22 of 28
    // 23 //

    technical reading of Umadevi (supra). In absence
    of any cogent distinction or reasoned decision
    justifying such exclusion, the action of the State is
    manifestlyarbitrary. It is inconsistent with its
    obligation to function as a model employer and
    does not withstand scrutiny under Article 14 of the
    Constitution.

    79. In view of the discussion made hereinabove,
    the impugned judgment dated 8th June, 2017
    passed by the Division Bench cannot be sustained
    and is set aside and the judgment of the learned
    Single Judge dated 20th December, 2013 is
    affirmed. Consequently, we pass the following
    directions:-

    I. The appellants shall be treated as
    regularised in service in terms of the Cabinet
    decision dated 22nd July, 2005 and from the
    date on which similarly placed 30,000
    employees were given benefit of the said
    Cabinet decision.

    II. The State of Assam shall identify and
    verify the eligible appellants and, where
    necessary, create supernumerary posts to
    facilitate their regularization.

    III. Upon regularization, the appellants shall
    be entitled to all consequential benefits,
    including fixation of pay in the regular scale,
    continuity of service, and all applicable
    pensionary and postretiral benefits in the
    same terms, as wereextended to similarly
    situated 30,000 employees.

    IV. In case of retired appellants, they shall be
    granted notional regularization with
    consequential monetary benefits and arrears
    from the relevant date until their
    superannuation for the purpose of
    recalculating pension, gratuity, and terminal
    dues.

    V. In case of deceased appellants, arrears
    and other benefits shall be released to their
    legal heirs in accordance with law.

    Page 23 of 28

    // 24 //

    VI. The entire exercise, including the
    calculation and payment of all financial
    arrears, shall be completed within a period of
    one year from the date of this judgment.

    VII. We make it clear that the benefit of the
    above directions shall only be applicable to
    the appellants who were working in the
    departments of the State before the cut-off
    date prescribed in Cabinet decision dated
    22nd July, 2005 i.e. before 1st April, 1993.”

    3.14. Making all these submissions, learned counsel

    for the petitioner contended that since petitioner is

    continuing as a Pharmacist initially on daily wage basis

    and subsequently on contractual basis w.e.f.

    13.11.2007 and has completed around 19 years of

    service, petitioner is eligible and entitled to get the

    benefit of regularisation in view of such long

    continuance and the decisions of the Hon’ble Apex

    Court so cited supra.

    4. Learned Addl. Standing Counsel on the other

    hand contended that since petitioner’s initial

    engagement is under RKS which is a society registered

    under the Societies Registration Act and service

    condition of the petitioner does not come under the

    provisions contained under the 2019 Rules, petitioner

    Page 24 of 28
    // 25 //

    is not eligible and entitled to get the benefit of

    regularisation.

    4.1. It is further contended that order of contractual

    appointment so issued vide order dated 15.02.2011,

    was set aside by the State-O.P. No.1 vide order dated

    09.01.2013 so enclosed as Annexure-20 to the

    additional affidavit. Even though petitioner challenging

    order dated 09.01.2013, approached the tribunal in

    O.A. No.171 of 2013, but this Court was not inclined

    to interfere with the said order and in the alternate,

    directed for consideration of the petitioner’s claim to get

    the benefit of regularisation in terms of the aforesaid

    2019 Rules.

    4.2. However, since the provisions contained under

    2019 is not applicable to the case of the petitioner,

    petitioner is not eligible and entitled to get the benefit

    which has been rightly rejected vide the impugned

    order dtd.01.12.2020 under Annexure-10.

    5. Having heard learned counsel for the parties and

    considering the submissions made, this Court finds

    Page 25 of 28
    // 26 //

    that petitioner pursuant to the notification issued

    under Annexure-1, was engaged as a daily wage

    pharmacist vide order dated 20.11.2007 under

    Annexure-2 under RKS. Subsequently, basing on the

    order passed by the Tribunal in a batch of Original

    Applications, petitioner though was appointed as a

    contractual Pharmacist vide order dated 15.02.2011

    under Annexure-7, but the same was set aside by the

    State-O.P. No.1 with passing of an order on 09.01.2013

    under Annexure-20 to the Addl. Affidavit.

    5.1. Even though such an order was assailed by the

    petitioner by filing W.P.C(OAC) No.171 of 2013, but this

    Court while disposing the matter vide judgment dated

    29.09.2022, was not inclined to interfere with order

    dtd.09.01.2013 and in the alternate, directed for

    consideration of the petitioner’s claim to get the benefit

    of regularisation in terms of the provisions contained

    under 2019 Rules.

    5.2. However, as found from the record, claim of the

    petitioner to get the benefit of regularisation was

    Page 26 of 28
    // 27 //

    initially rejected vide the impugned order dated

    01.12.2020 under Annexure-10. Not only that claim of

    the petitioner pursuant to the direction issued in

    W.P.C(OAC) No.171 of 2013, was also rejected vide

    order dated 21.02.2023 so enclosed as Annexure-22 to

    the additional affidavit.

    5.3. Since it is not disputed that petitioner is

    continuing as a Pharmacist on daily wage

    basis/contractual basis and in the meantime has

    already rendered service for around 19 years, placing

    reliance on the aforesaid decisions of the Hon’ble Apex

    Court in the case of Jaggo, Shripal, Dharam Singh,

    Bhola Nath and Sukhendhu Bhatacharjee so cited

    (supra), this Court is of the view that petitioner is

    eligible and entitled to get the benefit of regularisation.

    5.4. Therefore, while quashing order dated 01.12.2020

    so issued by O.P. No.1 under Annexure-10, this Court

    directs Opp. Party No.1 to regularise the services of the

    petitioner with passing of an appropriate order as a

    Pharmacist against any available vacancy within a

    Page 27 of 28
    // 28 //

    period of 3(three) months from the date of receipt of

    this order.

    Till a decision is taken as directed, no coercive

    action be taken against the petitioner.

    6. The Writ Petition stands dispose of accordingly.

    (Biraja Prasanna Satapathy)
    Judge
    Orissa High Court, Cuttack
    Dated the 7th July, 2026/Basudev

    Signature Not Verified
    Digitally Signed
    Signed by: BASUDEV SWAIN
    Reason: Authentication
    Location: High Court of Orissa, Cuttack
    Date: 13-Jul-2026 16:43:38

    Page 28 of 28



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