# A. MANJULA BHASHINI & OTHERS v. THE MANAGING DIRECTOR, AP. WOMEN'S COOPERATIVE FINANCE CORPORATION LTD. AND ANOTHER

- **Citation:** [2009] 10 S.C.R. 634
- **Court:** Supreme Court of India
- **Decided:** 2009-07-06
- **Case number:** Civil Appeal No. 3702 of 2006
- **Bench:** B.N. Agrawal, G.S. Singhvi
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/a-manjula-bhashini-others-v-the-managing-director-ap-women-s-cooperative-24863
- **Pages:** 70

## Headnote

c
Andhra Pradesh (Regulation of Appointments to Public
Services and Rationalization of Staff Pattern and Pay
Structure) Act, 1994:
Amending Act No.3 and 27 of 1998 - Constitutional
validity of - Held : Not ultra vires the Constitution.
".
~-
D
Sections 7, 7 A:
Persons employed on daily wage basis or nominal
muster roll or consolidated pay or as contingent worker on full
E time basis in different departments of the Government of
Andhra Pradesh and its agencies/instrumentalities -
Entitlement to be regularised in service on completion of five
years - Helq : The policy of regularisation contained in first
.
...
proviso to Section 7 of Act No.27of1998 is one time measure
F - Intended to benefit only those daily wage employees, etc.
who .completed 5 years continuous service on or before
25.11.1993. The employees who completed 5 years service
after 25. 11. 1993 cannot claim regularization - Declaration
made by the Division Bench that the ban on regularisation
G will be effective from 19.8.1998 i.e. the date on which Act
No.27 of 1998 came into force and that all persons who have
completed 5 years service as on that date would be entitled
to be considered for regularisation of service is set aside -
The daily wage employees and others who are covered by
H
634
.~
-,,,,.
.
_..,
A MANJULA BHASHINI v. MANAGING DIRECTOR, AP. WOMEN'S 635
COOPERATIVE FINANCE COPRN. LTD.
Section 7 of the 1994 Act (amended) and whose services
have not been regularised so far, shall be entitled to be
considered for regularisation and their services shall be
regularised subject to fulfillment of the conditions enumerated
in G. 0. dated 22.4. 1994 -
The policy did not confer an
indefensible right upon all daily wage employees to be
regularized dehors the date of enforcement of the Act - Hence
it cannot be said that the Legislature has taken away an
accrued or vested right of the daily wage employees -
Insertion of Section 7 A does not amount to encroachment on
the court's power of judicial review.
Cut off date - Fixing of - Cut off date prescribed as the
date of commencement of the main Act - Cannot be dubbed
as arbitrary, unreasonable, irrational or discriminatory -
Constitution of India, Article 14.
Constitution of India, 1950:
Articles 245, 246 - Plenary powers conferred on
Legislatures - Though Legislature cannot overrule, reverse
or override a judicial decision, it can render a judicial decision
ineffective by enacting a valid law fundamentally altering or
1 changing the conditions on which such a decision is based -
Such law can also be given retrospective effect with a
deeming date or with effect from a particular date.
Legislative Intent - Ascertaining of - External aid -
Statement of objects and reasons can also be looked into as
an external aid to appreciate the true intent/object sought to
be achieved by enactment of the particular Act or for judging
reasonableness of the classification made by such Act.
Judicial Review:
Section 7A of the amending Act 27 of 1998, amending
the Andhra Pradesh (Regulation of Appointments to Public
Services and Rationalization of Staff Pattern and Pay
A
B
c
D
E
F
G
H
636
SUPREME COURT REPORTS
[2009] 10 S.C.R.
A Structure) Act, 1994 - Does not amount to encroachment on
the Court's power of judicial review.
In the appeals, some of which have been filed by the
State Government and its agencies/instrumentalities and
some by the employees, who could not succeed before
8 the Andhra Pradesh Administrative Tribunal and/or the
High Court to accept their prayer for issue of a mandamus
to the concerned authorities to regularise their services,
the questions which arose for consideration were:
c
D
E
(i)
Whether the persons employed on daily wage
basis or nominal muster roll or consolidated
pay or as contingent worker on full time basis
in different departments of the Government of
Andhra
Pradesh
and
its
agencies/
instrumentalities are entitled to be regularised
in service on completion of 5 years; and
(ii)
whether amendments made in

## Text

_Characters 0–39,777 of 133,588. This is a partial read: ask again with offset=39777 for what follows._

[2009] 10 S.C.R. 634
A
A. MANJULA BHASHINI & OTHERS
v.
THE MANAGING DIRECTOR, AP. WOMEN'S
COOPERATIVE FINANCE CORPORATION LTD. AND
ANOTHER
B
(Civil Appeal No. 3702 of 2006)
JULY 6, 2009
[B.N. AGRAWAL AND G.S. SINGHVI, JJ.]
c
Andhra Pradesh (Regulation of Appointments to Public
Services and Rationalization of Staff Pattern and Pay
Structure) Act, 1994:
Amending Act No.3 and 27 of 1998 - Constitutional
validity of - Held : Not ultra vires the Constitution.
".
~-
D
Sections 7, 7 A:
Persons employed on daily wage basis or nominal
muster roll or consolidated pay or as contingent worker on full
E time basis in different departments of the Government of
Andhra Pradesh and its agencies/instrumentalities -
Entitlement to be regularised in service on completion of five
years - Helq : The policy of regularisation contained in first
.
...
proviso to Section 7 of Act No.27of1998 is one time measure
F - Intended to benefit only those daily wage employees, etc.
who .completed 5 years continuous service on or before
25.11.1993. The employees who completed 5 years service
after 25. 11. 1993 cannot claim regularization - Declaration
made by the Division Bench that the ban on regularisation
G will be effective from 19.8.1998 i.e. the date on which Act
No.27 of 1998 came into force and that all persons who have
completed 5 years service as on that date would be entitled
to be considered for regularisation of service is set aside -
The daily wage employees and others who are covered by
H
634
.~
-,,,,.
.
_..,
A MANJULA BHASHINI v. MANAGING DIRECTOR, AP. WOMEN'S 635
COOPERATIVE FINANCE COPRN. LTD.
Section 7 of the 1994 Act (amended) and whose services
have not been regularised so far, shall be entitled to be
considered for regularisation and their services shall be
regularised subject to fulfillment of the conditions enumerated
in G. 0. dated 22.4. 1994 -
The policy did not confer an
indefensible right upon all daily wage employees to be
regularized dehors the date of enforcement of the Act - Hence
it cannot be said that the Legislature has taken away an
accrued or vested right of the daily wage employees -
Insertion of Section 7 A does not amount to encroachment on
the court's power of judicial review.
Cut off date - Fixing of - Cut off date prescribed as the
date of commencement of the main Act - Cannot be dubbed
as arbitrary, unreasonable, irrational or discriminatory -
Constitution of India, Article 14.
Constitution of India, 1950:
Articles 245, 246 - Plenary powers conferred on
Legislatures - Though Legislature cannot overrule, reverse
or override a judicial decision, it can render a judicial decision
ineffective by enacting a valid law fundamentally altering or
1 changing the conditions on which such a decision is based -
Such law can also be given retrospective effect with a
deeming date or with effect from a particular date.
Legislative Intent - Ascertaining of - External aid -
Statement of objects and reasons can also be looked into as
an external aid to appreciate the true intent/object sought to
be achieved by enactment of the particular Act or for judging
reasonableness of the classification made by such Act.
Judicial Review:
Section 7A of the amending Act 27 of 1998, amending
the Andhra Pradesh (Regulation of Appointments to Public
Services and Rationalization of Staff Pattern and Pay
A
B
c
D
E
F
G
H
636
SUPREME COURT REPORTS
[2009] 10 S.C.R.
A Structure) Act, 1994 - Does not amount to encroachment on
the Court's power of judicial review.
In the appeals, some of which have been filed by the
State Government and its agencies/instrumentalities and
some by the employees, who could not succeed before
8 the Andhra Pradesh Administrative Tribunal and/or the
High Court to accept their prayer for issue of a mandamus
to the concerned authorities to regularise their services,
the questions which arose for consideration were:
c
D
E
(i)
Whether the persons employed on daily wage
basis or nominal muster roll or consolidated
pay or as contingent worker on full time basis
in different departments of the Government of
Andhra
Pradesh
and
its
agencies/
instrumentalities are entitled to be regularised
in service on completion of 5 years; and
(ii)
whether amendments made in the Andhra
Pradesh (Regulation of Appointments to
Public Services and Rationalization of Staff
Pattern and Pay Structure) Act, 1994 by
Amendment Act Nos.3 and 27 of 1998 are ultra
vires the provisions of the Constitution.
Dismissing the ,appeals filed by the employees and
F allowing the appeals filed by the State Government and
agencies/instrumentalities of the State, the Court
HELD : 1.1. The Andhra Pradesh (Regulation of
Appointments to Public Services and Rationalisation of
G Staff Pattern and Pay Structure) Act, 1994 was enacted
in the backdrop of the decision taken by the State
Government to curb irregular appointments, to rationalise
the staff pattern and pay structure and thereby reduce
unnecessary expenditure and also to ensure that only
H those selected by the specified recruiting agencies are
.
~·
A MANJULA BHASHINI v. MANAGING DIRECTOR, A.P. WOMEN'S 637
COOPERATIVE FINANCE COPRN. LTD .
..
appointed against the sanctioned posts. This is clearly A
"-..
discernible from the statement of objects and reasons
contained in the Bill which led to enactment of the 1994
Act and provisions contained therein. [Para 16] [670-GH; 671-A]
1.2. The statement of objects and reasons can also
B
be looked into as an external aid fot'appreciating the true
intent of the legislature and/or fhe object sought to be
achieved by enactment of the particular Act or for judging
reasonableness of the classification made by such Act. c
[Para 22) [675-E-F]
Delhi Development Horticulture Employees' Union v.
Delhi Administration (1992) 4 SCC 99; State of Haryana v.
-........,
Piara Singh (1992) 4 SCC 118; District Collectorv. M.L. Singh
1998 (2) ALT 5 (SC); D. Sesharani v. Managing Director, A.P.
D
Women's Co-op. Finance Corporation 2001 (2) ALT 607;
Minerva Mills Limited v. Union of India (1980) 2 SCC 591;
L. Chandra Kumar v. Union of India (1995) 1 SCC 400; S.S.
Bola v. B.D. Sardana 1997 (8) SCC 522; Gujarat Agricultural
University v. Rathod Labhu Bechar 2001 (3) SCC 574; Indra
E
Sawhney v. Union of India 2000 (1) SCC 168; Madan Mohan
Pathak vs. Union of India (1978) 2 SCC 50; State of Gujarat
.
vs. Raman Lal Keshav Lal Soni (1983) 2 SCC 33; Chairman,
~
Railway Board vs. C.R. Rangadhamaiah (1997) 6 SCC 623;
Govt. of Andhra Pradesh vs. G. V.K. Girls High School (2000)
8 sec 370; ASWINI KUMAR GHOSE II. ARAB/NOA BOSE
F
AIR 1952 SC 369; A. Thangal Kunju Musaliar v. M.
Venkatachalam Potti AIR 1956 SC 246; Central Bank of India
v. Workmen AIR 1960 SC 12; Bhaiji v. Sub-Divisional Officer,
Thandla (2003) 1 SCC 692; B. Banerjee v. Smt. Anita Pan
G
,.
~
(1975) 1 SCC 166; K.P. Varghese v. /TO, Emakulam (1981)
4 SCC 173; Chem Taong Shang v. S. D. Baija/ (1988) 1 SCC
507; Utkal Contractors and Joinery v. State of Orissa 1987
(3) SCC 279 and Gurudevdatta VKSSS Maryadit v. State of
Maharashtra (2001) 4 SCC 534, referred to.
H
638
SUPREME COURT REPORTS
[2009] 10 S.C.R.
A
2. If the State Government had sincerely implemented
the provisions of the 1994 Act, it may have succeeded in
cleansing the mess created due to irregular employment
of thousands of persons and, thereby, saved
considerable revenue which could be utilized tor
B execution of welfare schemes and development
programmes. By ensuring that appointments against the
sanctioned posts are made only from among the
candidates selected by the specified recruiting agencies
like Public Service Commission/College Service
c Commission etc. or from among the candidates
sponsored by the employment exchanges, the State
Government could have demonstrated its commitment to
the system established by rule of law and determination
to comply with the equality clause enshrined in the
0 Constitution and other relevant statutory provisions in
their true spirit. Unfortunately, that did not happen
because, inspite of the prohibition contained in Section
7 against regularisation of the existing daily wage
employees and persons appointed on temporary basis,
the State Government wilted under the pressure exerted
E by the vested interests and issued G.O. dated 22.4.1994
incorporating therein policy for regularisation of the
services of those appointed on daily wages or nominal
muster roll or consolidated pay, who had continuously
worked for 5 years and were continuing on 25.11.1993,
F i.e., the date of enforcement of the 1994 Act. This was
intended to be one time measure and not an ongoing
process/scheme for regularisation of the services of all
daily wage employees on their completing 5 years. [Para
G
H
241 [678-F-H; 679-A-D]
Union of India v. Mohan Pal (2002) 4 SCC 573; Union
of India v. Gagan Kumar 2005 (6) SCC 70 and Director
General, Doordarshan, Mandi House v. Manas Dey 2005 (13)
sec 437, referred to.
A. MANJULA BHASHINI v. MANAGING DIRECTOR, AP. WOMEN'S 639
COOPERATIVE FINANCE COPRN. LTD.
3.1. In order to remove the ambiguity and A
imperfectness in the language of G.O. dated 22.4.1994
and make the policy of regularisation an integral part of
the 1994 Act, the legislature enacted Amendment Act
Nos.3 of 1998 and 27 of 1998. The purpose of making the
policy of regularisation a part of the 1994 Act was not to B
dilute the main object of the 1994 Act, i.e., to curb the
menace of irregular appointments and also ensure that
appointments are made against the sanctioned posts
only from among the candidates selected by the
designated recruiting agencies but also to harmonize the c
same with the prohibition contained in Section 7 against
regularisation of daily wage and temporary employees.
The preface of Act No.27 of 1998 clearly shows that the
policy contained in G.O. dated 22.4.1994 was intended to
be one time measure for regularisation of the. persons D
employed on daily wages or nominal muster roll or
consolidated pay, who completed 5 years continuous
service on or before 25.11.1993, i.e., the date of
enforcement of the 1994 Act and it was not a continuing
scheme for regularisation of all 'daily wage employees' E
as and when they were to complete 5 years period. The
language of first proviso to Section 7 by which the policy
of regularisation was engrafted in the 1994 Act shows
that the amendments were made with the sole object of
removing the ambiguity in the policy contained in G.O.
dated 22.4.1994 and the same were not intended to nullify F
or override the judgment in District Collector vs. M.L •.
Singh. [Para 26] [681-F-H; 682-A-C]
3.2. There is no doubt that if the language of the
policy contained in G.O. dated 22.4.1994 was similar to G
the one contained in newly inserted proviso to Section 7
and there was no ambiguity in it, the courts would not
have interpreted the same in a manner which would
entitle all persons employed on daily wages before
25.11.1993 to claim regularisation irrespective of the date H
640
SUPREME COURT REPORTS
[2009] 10 S.C.R.
>
A of completion of 5 years service. The policy contained in
•
G.O. dated 22.4.1994 did not confer an indefeasible right
upon all daily wage employees (as the term has been
..A
defined in Section 2(ii) of the 1994 Act) to be regularised
in service de-hors the da!e of enforcement of the Act.
B Therefore, it cannot be said that by incorporating the
policy of regularisation in the 1994 Act, the legislature has
taken away an accrued or vested right of the daily wage
employees. [Para 26] [682-C-F]
A,.
c
District Collector vs. M.L. Singh 1998 (2) ALT 5 (SC) -
referred to.
4. The distinction between legislative and judicial
functions is well known. Within the scope of its legislative
competence - and subject to other constitutional
D limitations, the power of legislature to enact laws is
,-
!'""
plenary. In exercise of that power, the legislature can
enact law prospectively as well retrospectively. The
adjudication of the rights of the parties according to law
enacted by the legislature is a judicial function. In the
E performance of that function, the court interprets and
gives effect to the intent and mandate of the legislature
as embodied in the statute. If the court finds that the·
particular statute is ultra vires the power of legislature or
.;
any provision of the Constitution, then the same can be
F struck down. It is also. well settled that the legislature
cannot by bare declaration, without anything more,
directly overrule, reverse or override a judicial decision.
However it can, in exercise of the plenary powers
conferred upon it by Articles 245 and 246 of the
G Constitution, render a judicial decision ineffective by
enacting a valid law fundamentally altering or changing
the conditions on which such a decision is based. Such
law can also be given retrospective effect with a deeming
date or with effect from a particular date. [Para 27) [684H
A-E]
A. MANJULA BHASHINI v. MANAGING DIRECTOR; A.P. WOMEN'S641
"""
COOPERATIVE FINANCE COPRN. LTD.
Government of A.P. v. H.M. T. Ltd. 1975 (2) SCC 274; A
...
Indian Aluminium Co. v. State of Kera/a 1996 (7) SCC 637;
......
Chakolas Spinning and Weaving Mills Ltd. vs. K.S.E. Board
1988 (2) KLT 680; Prithvi Cotton Mills Ltd. v. Broach Borough
Municipality 1969 (2) SCC 283; Patel Gordhandas
Hargovindas v. Municipal Commissioner 1964 (2) SCR 608; B
Orient Paper Miffs Ltd. v. State of Orissa AIR 1961 SC 1438;
Mis. Misrilal Jain v. State of Orissa 1977 (3) sec 212; Tirath
Ram Rajendra Nath v. State of U.P. 1973 (3) sec 585; l.N.
Saksena v. State of M.P. 19.76 (4) sec 750; A.N. Sehgal v.
Raje Ram Sheoran 1992 Supp (1) SCC 304; S.~. Chopra c
v . ..State of Haryana 1992 Supp (1) SCC 391; Zohrabi v.
Arjuna 1980 (2) SCC 203; Chairman, Railway Board vs. C.R.
Rangadhamaiah (1997) 6 SCC 623 and My/apore Club v.
State of T.N. 2005 (12) SCC 752, referred to.
""'-..,
5. The amendments made in the 1994 Act by Act D
Nos.3 of 1998 and 27 of 199.8 do not have the effect of
nullifying or overriding the judgment in District Collector
vs. M.L. Singh. Further, the policy of regularization
contained in first proviso to Section 7 of Act No.27 of
1998 is one time measure intended to benefit only those E
daily wage employees, etc. who completed 5 years
continuous se~(lice on or before 25.11.1993 and the
),
employees wh<> completed 5 years service after
25.11.1993 cannot claim regularization. [Para 37) {697~-
H; 698-A-B]
F
District Collector vs. ML Singh 1998 (2) ALT 5 (SC),
referred to.
6. The 1994 Act was enforced with effect from
25.11.1993, i.e., the date on which the Ordinance was G
published in the official Gazette. Therefore, that date had
direct bearing on the policy of regularisation circulated
vide G.O. dated 22.4.1994, which was issued by the State
Government in exercise of its executive power under
H
642
SUPREME COURT REPORTS
[2009] 10 S.C.R.
...
A Article 162 of the Constitution. When that policy was
engrafted in the 1994 Act in the form of proviso to Section
•
7, the legislature could not have fixed any date other than
,.
25.11.1993 for determining the eligibility of daily wage
employees who fulfilled the requirement of 5 years
B continuous service. If any other date had been fixed for
counting 5 years service of daily wage employees for the
purpose of provis.o to Section 7, the object sought to be
achieved by enacting the 1994 Act would have been
defeated, inasmuch as the regular recruitment could not
c have been made for appointment against the sanctioned
posts and back door entrants would have occupied all
the posts. Therefore, the cut off date i.e. 25.11.1993
prescribed by the legislature for determining the eligibility
of daily wage employees and others covered by Section
D 7 of the 1994 Act cannot be dubbed as arbitrary,
unreasonable, irrational or discriminatory. [Para 39) [698-
~ <'
F-H; 699-A-C]
7.1. A reading of paragraphs 54, 67, 68 and 72 of the
impugned judgment shows that even though the Division
E Bench did not find the cut off date i.e. 25.11.1993 specified
in first proviso to Section 7 for determining the eligibility
of daily wage employees for regularisation to be arbitrary,
irrational or discriminatory, yet it changed the said date
from 25.11.1993 to 19.8.1998 solely on the premise that
t
F
Act No. 27of1998 was enforced with effect from that date.
Once the Division Bench negatived the challenge to the
validity of Act Nos.3 of 1998 and 27 of 1998, there was
no warrant for altering the date of eligibility specified in
first proviso to Section 7 of the 1994 Act and thereby
G extend the zone of eligibility of daily wage employees who
could be considered for regularisation. [Para 42] (702-DG]
,.
7.2. The declaration made by the Division Bench that
H
the ban on regularisation will be effective from 19.8.1998

644
SUPREME COURT REPORTS
[2009] 10 S.C.R.
A
1998 (2) ALT 5 (SC)
referred to
Para 7
"'
• 2001 (2) ALT 607
referred to
Para 12
(1980) 2 sec 591
referred to
Para 12
B
(1995) 1 sec 400
referred to
Para 12
1997 (8) sec 522
referred to
Para 13
2001 (3) sec 57 4
referred to
Para 13
2000 (1) sec 168
referred to
Para 13
c
(1978) 2 sec 50
referred to
Para 14
(1983) 2 sec 33
referred to
Para 14
(1997) 6 sec 623
referred to
Para 14
.D
(2000) 8 sec 3.70
referred to
Para 14
)" ~
AIR 1952 SC 369
referred to
Para 16
AIR 1956 SC 246
referred to
Para 16
E
AIR 1960 SC 12
referred to
Para 16
(2003) 1 sec 692
referred to
Para 16
(1975) 1 sec 166
referred to
Para 17
..
(1981) 4 sec 113
referred to
Para 18
..
F
(1988) 1 sec so1
referred to
Para 19
1987 (3) sec 219
referred to
Para 20
(20011 4 sec 534
referred to
Para 21
G
(20021 4 sec 573
referred to
Para 24
2005 (6) sec 10
referred to
Para 24
):'
2005 (13) sec 437
referred to
Para 24
H
A MANJULA BHASHINI v. MANAGING DIRECTOR, A.P. WOMEN'S 645
COOPERATIVE FINANCE COPRN. LTD.
-
1975 (2) sec 274
referred to
Para 28
A
\
1996 (7) sec 637
referred to
Para 29
'
1988 (2) KLT 680
referred to
Para 29
1969 (2) sec 203
referred to
Para 29
B
1964 (2) SCR 608
referred to
Para 29
_,,._).,
AIR 1961 SC 1438
referred to
Para 29
1977 (3) sec 212
referred to
Para 29 c
1973 (3) sec 585
referred to
Para 29
1976 (4) sec 750
referred to
Para 29
1992 Supp (1) sec 304 referred to
Para 30
_,...
D
..
1992 supp (1) sec 391
referred to
Para 30
1980 (2) sec 203
referred to
Para 30
2005 (12) sec 752
referred to
Para 31
(1975) 1 sec 305
relied on
Para 39
E
(1985) Supp. sec 45
relied on
Para 40
:.(.
(1994) 4 sec 212
relied on
Para 41
(1998) 5 sec 111
relied on
Para 41
F
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos.
3702 of 2006.
From. the Judgment & Order dated 28.4.2001 of the High
Court of Andhra' Pradesh at Hyderabad in W.A. Nos. 704, 720, G
727, 724, 741, 717, 707, 746, 734, 725, 745, 718 of 2001,
Judgment & Order dated 27.4.2001 in W.A. 550/2001 and
Judgment & Order Dated 28.4.2001 in W.A. Nos. 715, 703 and
713of2001.
H
646
SUPREME COURT REPORTS
(2009] 10 S.C.R.
A
WITH
...
C.A. Nos.3685, 3703, 3704, 3705, 3706, 3707, 3709, 3710,
3712,3713,3714,3715,3716,3717,3718,3721,3723,3724,
.
'
3726,3727,3728,3729,3730,3731,3732,3733,3734,3737,
B 3742, 3744, 3748, 3749, 3750, 3751, 3752, 3753, 3754 and
3755 of 2006.
Dipankar P. Gupta, R. Sundaravardhan, T.N. Rao, Manjeet
A."
Kirpal, Mitin Mahapatra, D. Bharathi Reddy, Roy Abraham,
Seema Jain, Vimlesh Kumar, Himinder Lal, S. Vallinayagam,
c Y. Ramesh, B.V. Niren, Y. Raja Gopala Rao, C.S.N. Mohan
Rao, R. Santhana Krishnan, K. Radha Rani, P. Vijaya Kumar,
D. Mahesh Babu, G. Ramakrishna Prasad, Suyodhan
Byrapaneni, Siddharth Patnaik, Amar Pal, L. Roshmani (for
P.S.N. & Co.), T.V. George, Dr. Roxna Swamy, RN. Keshwani,
D
T.V. Ratnam, Subhash Sharma, Annam D.N. Rao, K. Sarada
...
Devi, P. Venkat Reddy, Anil Kumar Tandale, Y. Ramesh, Y.
Vismai, D. Mahesh Babu, G. Ramakrishna Prasad, Amar Pal,
B. Sridhar, K. Ram Kumar, Shakil Ahmed Syed, Sudha Gupta,
Guntur Prabhakar, Rana Ranjit Singh, G. Seshagiri Rao, Anis
E
Ahmed Khan, T. Anamika, Asha Gopalan Nair, Naveen R. Nath
and Aribam Guneshwar Sharma for the appearing parties.
The Judgment of the Court was delivered by
J
G.S. SINGHVI, J. 1. Whether the persons employed on
F daily wage basis or nominal muster roll or consolidated pay or
as contingent worker on full time basis in different departments
of the Government of Andhra Pradesh and its agencies/
instrumentalities are entitled to be regularised in service on
completion of 5 years and whether amendments made in the
G Andhra Pradesh (Regulation of Appointments to Public
Services and Rationalization of Staff Pattern and Pay Structure)
Act, 1994 (for short 'the 1994 Act') by Amendment Act Nos.3
and 27 of 1998 are ultra vires the provisions of the Constitution
are the questions which arise for determination in these
H
appeals, some of which have been filed by the State
A MANJULABHASHINI v. MANAGING DIRECTOR, AP. WOMEN'S547
COOPERATIVE FINANCE COP.RN. LTD. [G.S. SINGHVI, J]
Government and its agencies/instrumentalities and some have
A
been filed by the employees, who could not convince the
Andhra Pradesh Administrative Tribunal (for short "the Tribunal")
and/or the High Court to accept their prayer for issue of a
mandamus to the concerned authorities to regularise their
services.
B
2. In 1970s, 80s and early 90s, the country witnessed an
,...Junusual phenomena in the field of public employment. Lakhs
of persons were engaged/employed under the Central and
State Governments in violation of the doctrine of equality c
enshrined in Articles 14 and 16 of the Constitution, Employment
Exchanges (Compulsory Notification of Vacancies) Act, 1959
(for short 'the 1959 Act') and the rules framed under proviso
to Article 309 of the Constitution. The officers who were
entrusted with the task of making appointments on Class Ill and
D
"
'
Class IV posts misused their power and employed their
favourites or all those who enjoyed political power without
considering the claims of other similarly situated persons. For
avoiding compliance of the mandate of the equality clause
enshrined in the Constitution and other statutory provisions, the
empowered authorities resorted to the mechanism of
E
employing the persons of their choice on daily wages or
nominal muster roll or contract or part time basis with the hope
..
that on some future date the Government will frame policy for
..
regularisation of such employees. In this manner, nepotism,
favoritism and even corruption became hallmark of the
F
appointments and a huge illegal employment market developed
in the country, a fact of whi.ch cognizance was taken by this
Court in Delhi Development Horticulture Employees' Union
v. Delhi Administration [(1992) 4 SCC 99].
3. Statei of Andhra Pradesh was no exception to the
G
',.J.
aforementioned malady. Thousands of persons were employed
in different departments of the Government and agencies/
instrumentalities of the State on daily wages or nominal muster
roll or consolidated pay or part time basis. In some cases,
H
648
SUPREME COURT REPORTS
[2009] 10 S.C.R.
A employment was given despite the fact that sanctioned posts
.lot
were not available. Even if the posts existed, the concerned
authorities neither issued advertisement nor sent requisition to
the employment exchange(s) and made appointments in
complete disregard of Articles 14 and 16 of the Constitution
8
and the relevant statutory provisions including the 1959 Act
depriving thousands of unemployed persons of their right to be
considered for appointment to public posts/offices.
"'-~
4. In order to check the menace of irregular appointments,
c
which was creating unwarranted financial burden on the State,
and, thereby adversely affecting the welfare schemes and
development programmes and also causing dissatisfaction
among the members of younger generation who were denied
the right of consideration for appointment, the Government of
D
Andhra Pradesh decided to bring a legislation for totally
banning appointment on daily wages, regulating appointment
"
on temporary basis and for rationalisation of staff pattern and
pay structure. In furtherance of that decision, the Governor of
Andhra Pradesh promulgated the Andhra Pradesh (Regulation
of Appointments to Public Services and Rationalisation of Staff
E Pattern and Pay Structure) Ordinance, 1993. The same was
published in the State Gazette dated 25.11.1993. The
Ordinance was replaced by the 1994 Act, which was enforced
with effect from 25.11.1993. The State Government's
,,
'
determination to curb irregular appointments and reduce burden
F on the State exchequer is clearly reflected in the statement of
objects and reasons contained in the bill presented before the
legislative assembly, the relevant portions of which are
extracted below:
G
" ............ The number of employees has been increasing
at an enormous rate. The census of Government employee
conducted by the State Government in 1976, 1981 and
i.·
1988 and as projected in 1993 shows that the number of
employees of the Government, Universities, Institutions
H
receiving Grant-in-Aid and Public Sector Undertakings,
A. MANJULA BHASHINI v. MANAGING DIRECTOR, A.P. WOMEN'S 649
COOPERATIVE FINANCE COPRN. LTD. [G.S. SINGHVI, J.)
:>..I
Local Bodies has increased from 6.78 lakhs in 1976 to
A
12.34 lakhs in 1993 which constituted an increase of 82%.
Out of this, the employees of the Departments of the State
alone increased from 2.85 lakhs to 5.56 lakhs representing
an increase of95%. The Public Sector Undertakings grew
at 128% from 1.44 lakhs to 3.28 lakhs. Among the
B
Government employees and Local Body employees, the
class IV and other categories constitute about 41 %.
>-.,.
The expenditure particulars show that the amount
spent on the salaries, allowances and pension of c
Government employees, Panchayat Raj employees,
employees paid out of the Grant-in-Aid, amounts to a
figure of Rs.4277 crores in 1993-94 salaries on the due
dates. Government considers that it is not fair that
people's interest should be neglected and even sacrificed
D
.....
by not taking up schemes just to pay salaries to its
...
employees.
In addition to the salary and pension commitment
there is a heavy debt servicing burden on the Government.
The debt also has been increasing from year to year. In
E
1983 the total outstanding debt was Rs.2543 crores. It has
now reached Rs.10970 crores during 1993-94. At present,
)
the Government are paying as much as Rs.1012 crores
for payment of interest and Rs.330 crores for repayment
-"
of principal amount every year. The total amount of nonF
plan items of expenditure in 1993-94 is amounting to
Rs.6222 crores, which cannot be avoided. The
Government are not able to complete a number of Irrigation
Projects and Power Projects because of lack of funds. For
the same reason productive assets like completed
G
irrigation projects and roads are not being properly
';.[
maintained resulting in wastage of assets whose
replacement will cost several hundreds of crores of rupees.
At present, the Government are spending 81 % of the debt
they receive from the Government of India, Market
H
.
.
650
SUPREME COURT REPORTS
[2009] 10 S.C.R.
A
borrowings and all other categories of loans for repayment;
...
which means only 19% of the total debt is being added to
our resources. But it is estimated that from next year
onwards the repayment will be more than the debt receipts.
If the Government are caught in such a debt trap the
B
amount available to the State Government will be limited
to its own tax and non-tax revenues and the devolutions
from the Government of India. The devolutions expected
from the Government of India is about Rs.1698 crores in
.._,
1993-94. Since the expenditure on establishment is
c
already 105% of the own tax and non-tax revenues of the
state, it can be seen that between this expenditure and
other non-plan expenditure the Government would have
exhausted the most of the resources leaving very little for
welfare schemes and developmental programmes. Since
D
no Government can i;illow such total neglect of welfare and
.rdevelopmental activities the employees of the State will not
'>
be getting salaries on time and eventually they will not be
getting their full salary also.
The irregular appointments are adversely affecting
E
the interest of several thousands of unemployed persons
who have registered in the employment exchange and
awaiting their turn for orders. It is also adversely affecting
the interests of Scheduled Castes, Scheduled Tribes and
backward Classes who have reservation in employment
'
,
F
since the N.M.R. appointments are not taking care of the
reservation for these categories. Government have
constituted District Selection Committees and some ad
hoc Selection Committees besides the Andhra Pradesh
Public Service Commission to take up recruitment in
G
accordance with law in Government Departments. Irregular
appointments are depriving these legitimate recruiting
bodies from performing their functions. Irregular
.:
appointments in excess of sanctioned strength will also
result in industrial undertakings becoming unviable and
H
eventually sick. When a unit goes sick, it results in
A. MANJULA BHASHINI v. MANAGING DIRECTOR, AP. WOMEN'S 651
COOPERATIVE FINANCE COPRN. LTD. [G.S. SINGHVI, J.]
retrenchment and even winding-up, thus, adversely
A
affecting the interests of the existing employees who are
recruited against sanctioned strength and through
authorised process of selection. Similarly unauthorised
appointments over and above the sanctioned strength in
Government Departments would also increase the number
B
of employees and to that extent militate against the
Government looking after the existing employees who have
,,.__.>
been recruited through proper channel. The Act will,
therefore, protect the interests of candidates in
Employment Exchanges, reserved categories, the existing c
employees who were recruited through proper channel and
the legitimate functions of the recruiting agencies.
From the above, it can be seen that the financial
position of the State arising out of excessive expenditure
D
-
on staff is so alarming that it cannot be tackled by ordinary
...
administrative actions and instructions. It is, therefore,
thought that a time has come when we have to provide for
deterrent action for illegal and irregular appointments by
enacting a law. It has accordingly been decided to enact
a law to achieve the following objects, namely:-
E
(a) totally banning such appointments in the institutions
covered by legislation;
(b) imposing stringent penalties for making appointments
F
by public servants on violation of the law;
(c) to protect public servants from being held for contempt
for non-compliance of the orders of Tribunal or High Court
and also for abatement of pending cases claiming
regularization of services which are already filed before
G
the courts of law by making a suitable provisions therefor;
and
(d) to protect the interests of candidates registered with
Employment Exchange, the reservation rights of Scheduled
H
652
SUPREME COURT REPORTS
[2009] 10 S.C.R.
A
Castes, Scheduled Tribes and Backward Classes, the
rights of the existing employees who are recruited through
proper channel and the functions of Andhra Pradesh
Public Service Commission, District Selection
Committees and other Selection Committees constituted
s
by the Government.
The legislation will prevent further deterioration of
finances of the State and at the same time conserve the
resources for the welfare and developmental activities."
C
5. For the sake of convenient reference, Sections 2(ii), 3,
D
E
F
G
H
4, 7 and 9 of the 1994 Act (unamended) are reproduced below:
"2(ii) 'daily wage employee' means any person who is
employed in any public service on the basis of payment
of daily wages and includes a person employed on the
basis of nominal muster roll or consolidated pay either, on
full-time or part-time or piece rate basis or as a
workcharged employee and any other similar category of
employees by whatever designation called other than
those who are selected and appointed in a sanctioned
post in accordance with the relevant rules on a regular
basis.
3. Prohibition of daily wage appointments and regulation
of temporary appointments. - ( 1) The appointment of any
person in any public service to any post, in any class,
category or grade as a daily wage employee is hereby
prohibited.
(2) No temporary appointment shall be made in any public
service to any post, in any class, category or grade without
the prior permission of the competent authority and without
the name of the concerned candidate being sponsored by
the Employment Exchange.
4. Regulation of recruitment.- No recruitment in any public
:. -
A. MANJULABHASHINI v. MANAGING DIRECTOR, AP. WOMEN'S 653
COOPERATIVE FINANCE COPRN LTD. [G.S. SINGHVI, J.]
service to any post in any class, category or grade shall
A
u
be made except, -
-..
(a) from the panel of candidates selec.ted and
recommended for appointment by the Public Service
Commission/College Service Commission where the post
B
is within the purview of the said Commission;
(b) from a panel prepared by any Selection Committee
~--
constituted for the purpose in accordance with the relevant
rules or orders issued in that behalf; and
c
(c) from the candidates having the requisite qualification
and sponsored by the Employment Exchange in other
cases where recruitment otherwise than in accordance with
-
clauses (a) and (b) is permissible.
-I,
Explanation: - For the removal of doubts it is hereby
D
~
~
declared that nothing in this section shall apply to
compassionate appointments made in favour of son/
daughter/spouse of any person employed in public service
who dies in harness or who retires from service on medical
grounds, in accordance with the relevant orders issued
E
from time to time.
7. Bar for regularization of services.- No person who is a
daily wage employee and no person who is appointed on
a temporary basis under section 3 and is continuing as
F
such at the commencement of this Act shall have or shall
be deemed ever to have a right to claim for regularization
of services on any ground whatsoever and the services of
such person shall be liable to be terminated at any time
without any notice and without assigning any reason:
G
Provided that in the case of Workmen falling within the
scope of section 25-F of the Industrial Disputes Act, 1947,
one month's wages and such compensation as would be
payable under the said section shall be paid in case of
H
termination of services:
A
B
c
D
E
F
654
SUPREME COURT REPORTS
[2009] 10 S.C.R.
Provided further that nothing in this section shall apply to
the Workmen governed by Chapter V-8 of the Industrial
Disputes Act, 1947.
Explanation.- For the removal of doubts it is hereby
declared that the termination of services under this section
shall not be deemed to be dismissal or removal from
service within the meaning of article 311 of the Constitution
or of any other relevant law providing for the dismissal or
removal of employees but shall only amount to termination
simpliciter, not amounting to any punishment.
9. Abatement of claims.- Notwithstanding anything
contained in any judgment, decree or order of any court,
tribunal or other authority, the claims for regular
appointment of all daily wage employees and persons
appointed on a temporary basis, shall stand abated and
accordingly,-
(a) no suit or other proceeding shall be instituted,
maintained or continued in any court, tribunal or other
authority by the daily wage or temporary appointees
against the Government or any person or authority
whatsoever for the regularization of the services;
(b) no court shall enforce any decree or order directing the
regularization of the services of such persons; and
(c) all proceedings pending in any court or tribunal claiming
the regularization of services shall abate."
. 6. As soon as the 1994 Act was enacted, the beneficiaries
of illegal employment market and back door entrants became
G apprehensive of termination of their services in terms of
Section 7. Therefore, they approached the State Government
through their mentors and sympathizers in the political and
bureaucratic set up and succeeded in getting the rigor of that
section relaxed. This is evidenced from the fact that by taking
H shelter of the judgment of this Court in State of Haryana vs.
-
A MANJULA BHASHINI v. MANAGING DIRECTOR, AP. WOMEN'S 655
COOPERATIVE FINANCE COPRN. LTD. [G.S. SINGHVI, J.)
~ ...
Piara Singh [(1992) 4 sec 118] and using its executive power
A
under Article 162 of the Constitution, the State Government
-
issued G.O.Ms. No.212 dated 22.4.1994 (hereinafter referred
to as 'G.O. dated 22.4.1994') for facilitating regularisation of
the services of those employed on daily wages or nominal
muster roll or consolidated pay subject to the condition that
B
such persons had worked continuously for a minimum period
of 5 years and were continuing on 25.11.1993. The relevant
---··"'1'
portions of G.O. dated 22.4.1994 are reproduced below:
"
"Government notice that appointing authorities of the
Institutions and Establishments under the control of State c
Government, Local Authorities, Corporations owned and
controlled by the State Government and other bodies
-·
established by the State Government grossly violated the
instructions issued from time to time by the Government
D
J
and appointed persons indiscriminately to various
categories of services either on Daily Wage basis or
temporary basis without there being a post and without
being sponsored by Employment Exchange and without
observing the rule of reservation to the Scheduled Caste,
Scheduled Trib'e and Backward classes. In most of the
E
cases, the persons appointed for a specific work have
been continued even after their need ceased. After a lapse
':;
of some time, all these appointees have approached the
various Courts and Tribunals for regularization of their
services and Courts and Tribunals have been directing the
F
State Government to regularize the services on the ground
that they have a long service to their credit. This practice
has been causing considerable drain on the finances of
the State Government. Government have thought it
imperative to prohibit the unauthorised and irregular
G
appointments by a law in the public interest. Accordingly
·.-""'
the State Government have enacted law regulating the
appointments to Public Services and for Rationalisation of
the Staff Pattern and Pay Structure in the reference read
above. This will streamline the recruitment along healthy
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656
SUPREME COURT REPORTS
(2009] 10 S.C.R.
A
lines, to enforce Erriployment Exchanges (Compulsory
Notification of Vacancies) Act in its true letter and spirit,
... ,
to follow the rule of reservation enshrined in the Constitution
-
with utmost strictness and to punish those who are guilty
of violating the law. The above Act came into force with
B
effect from 25.11.1993.
2.
Though the reference 2nd cited, information has
been obtained from various Government Offices,
Local Bodies, Public Sector undertakings etc., from
'~
c
the information received by Government it is seen
that appointing authorities have violated the
instructions issued by Government and appointed
several individuals. Appointments have been made
indiscriminately in the Government Offices, Local
~
D
Bodies, Universities, Public Sector undertakings
and various other Bodies and Institutions operating
on Government finances. In fact, there is no need
to continue all these Daily Wage/Temporary
employees for the reasons that not all of them are
appointed in sanctioned posts and the recruitment
E
was in many cases not through Employment
Exchange. Their appointment was made without
following rule of reservation and in the case of
workcharged employees, there is no work for them
as the specific work for which they were appointed
' ..
F
has already been completed.