[CASE NUMBER] [ENTITY] IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL [CASE NUMBER] FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE [ENTITY] 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the [ACT] or any order made thereunder ? [ENTITY] Petitioner(s) Versus [ENTITY] & 3 Respondent(s) Appearance: MR [ENTITY], ADVOCATE for the Petitioner(s) No. 1 MR [ENTITY], AGP for the Respondent(s) No. 1 - 2 RULE SERVED for the Respondent(s) No. 3 - 4 CORAM: HONOURABLE MR.JUSTICE [ENTITY] Date : 29/06/2016 ORAL [ENTITY]
1 BythiswritapplicationunderArticle226oftheConstitutionof India,thewritapplicant,servingasaClerk,intheofficeoftheDistrict Registrar, Cooperative Societies, Amreli, has prayed for the following reliefs:
HC-NIC Page 1 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] "13(A) YourLordshipsmaybepleasedtoissueawritofmandamus oranyotherappropriatewrit,orderordirectiondirectingtherespondents hereintodeclarethepetitionerasaGovernmentServantandfurtherto absorb the services ofthe petitioner inthe Government service with all consequentialbenefitsofagovernmentservant.
(B) Pending hearing and final disposal of this writ petition, Your Lordships may be pleased to direct the respondents herein not to terminate the services of the petitioner and further to allow him to continueinthesaidpostandtodischargehisdutiesasusualuntilfurther orders.
(C) Suchotherandfurtherreliefsasdeemedjustandexpedientinthe interestofjusticemaykindlybegranted."
2 ItakenoticeoftheorderpassedbyalearnedSingleJudgeofthis Courtdated28thJune2005,whichreadsasunder:
"[ENTITY],learnedadvocateappearingforthepetitionerrelieson thecommon judgment delivered ingroup ofmatters being SpecialCivil Application No.2815 of 1983, against which the Letters Patent Appeal No.481of1995ispreferredbytheStateofGujarat,whichispendingas perthestatusreportsubmittedbythelearnedadvocate.
Inthefactsandcircumstancesofthiscase,thisSpecialCivilApplicationis tobeplacedontheboardbytheOfficewhenthenoteinthisregardisfiled bythelearnedadvocateforthepetitioner."
3 Ialsotakenoticeoftheorderdated13th December2006,which readsasunder:
"InviewofthependencyoftheLettersPatentAppealNo.481of1995, Officeisdirectedtonotifythismatteronlyafterthedisposalofthesaid Appeal."
4 Ialsotakenoticeofoneorderdated9thMarch2010passedbya learnedSingleJudgeintheSpecialCivilApplicationNo.9919of1995, whichreadsasunder:
"1.ThepetitionerhereinhasprayedtodeclarehimasaCivilServantand toregularisethepetitionerattheplacewhereheisworking.Thepetitioner has also sought for identical relief given by this court in Special Civil HC-NIC Page 2 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] [CASE NUMBER] 1987,4207&3775of1986videorderdated0708.03.1995atAnnexure 'K'tothepetition.
2.Onaperusalofrecords,itisborneoutthatthepresentpetitioneris similarlysituatedasthepetitionersinSpecialCivilApplicationNo.2815 of1983withSpecialCivilApplicationNos.6313of1987,4207&3775of 1986.Thus,thepetitionerisalsorequiredtobegrantedthebenefitgiven tothepetitionersintheaforesaidSpecialCivilApplications.
3.Therefore,forthereasonssetoutinthesaidjudgement,thepetitioner shallbegovernedbythejudgmentandorderdated0708.03.1995passed bythiscourtinSpecialCivilApplicationNos.2815of1983withSpecial CivilApplicationNos.6313of1987,4207&3775of1986.Accordingly, thefollowingdirectionsareissued:
i. Therespondentsaredirectedtoconsiderthecaseofthepetitioner, frameanappropriateschemeforregularisationand/orabsorption ofhisserviceandposthimattheplacewheretheworkisavailable bytreatinghimcivilservantintheappropriategradesofscale. ii. The respondents shall treat only that employee as Government Employee who is appointed either by the Registrar or by the LiquidatorwhohimselfistheGovernmentemployee.Itisclarified that,[ENTITY]lawyerisaliquidatorandhasappointedits/his stafftocarryouttheworkofwindingupofsocietyinliquidation, suchstaffwillnotbetreatedasGovernmentEmployee. iii.The respondents shall formulate an appropriate Scheme for regularisation and/or absorption in services of such employees, includingthepetitioner,inlightoftheobservationsmadeinthis judgementwithinaperiodofthreemonthsfromthedateofreceipt ofwritofthiscourt.
4.Withtheabovedirections,petitionisallowed.Ruleismadeabsolute accordingly."
5 ItappearsthatonaccountofthependencyofoneLettersPatent [CASE NUMBER] writapplicationhasnotbeenheardand disposedofsofar.ItalsoappearsthattheLettersPatentAppealNo.481 of1995isbeingheardalongwiththeotherappeals.Thoseappealsare filedbytheStateofGujarat.On3rdNovember2015,theDivisionBench ofthisCourtpassedthefollowingorder:
HC-NIC Page 3 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] Pursuant toorders dated07.10.2015 and21.10.2015 passedby thisCourt,furtheraffidavitdated03.11.2015isfiledbyMr.[ENTITY],JointRegistrar[Admn.],CooperationDepartment,StateofGujarat, whichisorderedtobetakenonrecord.
Inpara2oftheaboveaffidavit,itisstatedasunder:
2.Thedeponenthumblysubmitsthat,thedepartmentisinprocess of finalizing the scheme to comply with the directions dated 08.01.1996.Asaninterimmeasure,thedepartmenthaddeclared togiveRs.50,000/toeachoftherespondentssubjecttothefinal outcomeoftheLettersPatentAppeals.Thedepartmentassuresthis Hon'ble High Court and respondents herein that the interim amountofRs.50,000/willbepaidtotherespondentsonorbefore 11.11.2015.
In view of the above, the Registry is directed to place all these mattersforfurtherorderon9thDecember,2015."
6 Mr. [ENTITY], the learned Assistant Government Pleaderappearingfortherespondents-Statesubmitsthatallendevours are being made to see that the Letters Patent Appeal is heard and disposedofsothattheissueissettledonewayortheother.SinceIdo notproposetopassanymandatoryorderorissueanywrit,asprayedfor inthispetition,itwouldnotbenecessaryforthisCourttowaitforthe disposal of the Letters Patent Appeals, more particularly, the [CASE NUMBER].
7 Thecontroversyraisedinthiswritapplicationisinaverynarrow compass.ThepetitionercametobeappointedasaClerktoassistthe Liquidator,DistrictRegistrar,CooperativeSocieties,Amreli,videorder dated21st September1990.Afterputtinginserviceofaboutsixyears, thewritapplicantrequestedtheauthoritiestoregularizehiminservice. Atthatpointoftime,healsoapprehendedterminationfromservice,and insuchcircumstances,hehadtocomebeforethisCourt,prayingforthe HC-NIC Page 4 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] followingreliefs:
"13(A) YourLordshipsmaybepleasedtoissueawritofmandamus oranyotherappropriatewrit,orderordirectiondirectingtherespondents hereintodeclarethepetitionerasaGovernmentServantandfurtherto absorb the services ofthe petitioner inthe Government service with all consequentialbenefitsofagovernmentservant.
(B) Pending hearing and final disposal of this writ petition, Your Lordships may be pleased to direct the respondents herein not to terminate the services of the petitioner and further to allow him to continueinthesaidpostandtodischargehisdutiesasusualuntilfurther orders.
(C) Suchotherandfurtherreliefsasdeemedjustandexpedientinthe interestofjusticemaykindlybegranted."
8 The petitioner continues in service as on date, of course, as a adhoctemporaryemployee.SincehewasappointedbytheLiquidatorto assistintheliquidationproceedings,anissuewouldarisewhethersuch anemployeecouldbetermedasagovernmentservantandwhetherthe servicesofsuchemployeeshouldberegularizedornot.Thisveryissue fellfortheconsiderationofthisCourtinthecaseof [ENTITY] observationsinparas8to28:
"8.Thepetitionershavecontendedthatinviewofthedutiesandfunctions being discharged by them and the work which they are doing being perennialinnature,theyareGovernmentservantsandareentitledtobe treated on par with the Government servants. Petitioners [CASE NUMBER] have contended that they are getting the pay scales as admissibletotheGovernmentservantsforthepostofClerktogetherwith theotherbenefitsofdearnessallowance,compensatorylocalallowances, leaveencashmentadmissibletoClerksintheGovernmentand,therefore, thereisnoreasonnottotreatthemonparwiththeGovernmentservants.
Ontheotherhand,therespondentshavecontendedthatthestaff appointed by the concerned Liquidators for assisting them as per their requirements cannot be said to be the staff of the Government by any HC-NIC Page 5 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] stretchofimaginationastheyareappointedbytheconcernedLiquidator and not by the District Registrar or the Government. The respondents contendedthatthestaffsoappointedbytheconcernedLiquidatorcannot be said to have been appointed by the District Registrar or the State Governmentastheyarenotappointed/recruitedasperRecruitmentRules afterfollowingtheproperprocedure.Itisfurthercontendedthatneither their appointments have been made on the posts sanctioned by the GovernmentnortheirsalaryispaidfromtheGovernmentexchequer.
9 Forthepurposeofdeciding thedisputebetween theparties,itis necessary to consider certain provisions of the [ACT] (hereinafter referred toas"the Act"). Under [SECTION] against a society (i) after holding inquiry under [SECTION] or an inspectionunderSection87oronthereportoftheauditorauditingthe accountsofthesociety;or(ii)onreceiptofanapplicationmadeupona resolution carried by threefourth of the members; or (iii) of his own motioninthecaseofasocietywhichhasnotcommencedworkingorhas ceasedworkingetc.orhasceasedtocomplywithanyconditionsunderthe Actortherulesorthebyelawsordirectionsissued.TheRegistrar,after communicating theinterimorderandaftercallingforexplanation, and aftergivinganopportunitytoitofbeingheard,shallmakeafinalorder vacating or confirming the interim order. [SECTION] deals with appointment and fixation of remuneration of the Liquidator by the RegistraraftertheorderpassedunderSection107oftheAct.[SECTION],providesthatthe LiquidatorshallsubjecttothegeneralcontroloftheRegistrar,exerciseall oranyofthepowersmentionedinSection110.UnderSubsection(5)the Liquidatorisvestedwiththewholeoftheassetsofthesociety.Subsection (6) provides for handing over the property, effects, actionable claims, books,recordsandotherdocumentsofthesocietytotheofficers,inthe eventoftheinterimorderbeingvacatedbytheLiquidator.[SECTION] provides for appealagainsttheorder ofwinding up.[SECTION] deals withvariouspowersoftheLiquidatorincludingthepowertosummonand enforcetheattendanceofwitnessesandtocompeltheproductionofany books,accounts,documents,securities,cashorotherpropertiesbelonging toorinthecustodyofthesocietybythesamemeansandinthesame mannerasprovidedinthecaseofaCivilCourtundertheCodeofCivil Procedure,1908.SectionIlldealswitheffectsoforderofwindingupand it,interalia,statesthatwhenawindinguporderbecomeseffective,the Liquidator shall proceed to realise the assets of the society by sale or otherwiseandnodisputeshallbecommencedorifpendingatthedateof the winding up order, be proceeded with against the society, except by leave of the Registrar and subject to such terms as the Registrar may impose. The Registrar may of his own motion, however, entertain or disposeofanydisputebyoragainstthesociety.Section112dealswithbar HC-NIC Page 6 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] of suit in winding up and dissolution matters. The Liquidator has to presenttotheRegistraranaccountintheprescribedformofhisreceipts andpayments;furnishvouchersandinformation.Section114dealswith terminationofliquidationproceedingsanditisprovidedthatthewinding upproceedingsofasocietyshallbeclosedwithinthreeyearsfromthedate of the order of the winding up, unless the period is extended by the Registrar. [SECTION] provides thatnotwithstanding anything contained inSubsection (1)the Registrar shall terminate the liquidationproceedingsonreceiptofthefinalreportfromtheLiquidator, and the final report of the Liquidator shall state that the liquidation proceedingsofthesocietyhavebeenclosedandalsostatehowthewinding uphasbeenconducted andthepropertyandclaimsofthesocietyhave beendisposedoff,andshallincludeastatementshowingasummaryofthe accountofthewindingupincludingthecostofliquidation,theamount,if any, standing tothe credit ofthe society, after paying offitsliabilities including the share or interest of members and shall suggest how the surplusshouldbeutilised.Section115dealswithdisposalofsurplusassets andafterdevotingtoanyobjectorobjectsprovidedinthebyelawsofthe society.
10 Nowletusseethedutiesandfunctionsofthepetitioners.Theyhave toassisttheLiquidatorsintheofficework,draftingincludingnoticesto theparties,givingreplytothemembersofthesocietiesunderliquidation, toundertakejourneystovariousplacestoassisttheLiquidator,takeover charge of the society from the officers of the society under liquidation, prepare balancesheet, chargesheet, prepare list of debtors of society, verifyduesagainstthemincludingcalculationofinterest,prepareclaims forandagainstthesocietyinliquidation,preparecaseforinitiateaction against debtors, serve them notices for hearing under [SECTION](h), record statements of members and officers concerned in case misappropriationisfoundout,preparecertificateunderSection103for executionagainsttheconcernedmember,preparefinalaccountattheend ofeverycooperativeyearandforwardthesametotheproperauthorities, undertake journey as and when directed by the Liquidator, prepare balancesheetregularlytwiceayearminimum,toreceivepaymentsmade by the members and issue receipts and give account to the Liquidator, writedownaccountsandpreparenecessarydocuments,maintainbooksof accountsandgetthemaudited,attendbankfordepositingreceiptsandthe amount recovered as liquidation fees, prepare listofdead stock, assets, liabilities,machineriesetc.,topreparepublicnoticefordisposalofdead stock arid other assets and machineries, move either alone or withthe Liquidator from village tovillage torecover duesfrommembers and to preparedocuments,etc. 11 ReadingtheaforesaidprovisionsofthesaidActandconsideringthe dutiesandfunctionsoftheLiquidatorsinrespectoftheworkofeffecting HC-NIC Page 7 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] windingup,theRegistrarappointspersonstoassisttheLiquidators.The dutiesandfunctionsoftheclerksappointedtoassiststheLiquidatorsare, as stated above, in consonance with the duties and functions of the Liquidatorandtheyhavetoworkunderthecontrolandsupervisionofthe concerned Liquidator. The Liquidator may be a Government officer, a Bankofficeroralawyeretc.Hehaspower,subjecttotherulesandthe generalsupervision,controlanddirectionoftheRegistrar,asenumerated inSection110ofthesaidAct.Therefore,forcarryingoutthewindingup ofthesocietyinliquidation,theLiquidatorneedstheservicesofclericsand peonswhoareappointedbytheLiquidator,subjecttotheapprovalofthe DistrictRegistrarorbytheDistrictRegistrarhimself.TheDistrictRegistrar has also the power to remove the Liquidator and to appoint another person in his place without assigning any reason. The fact that the Liquidator hastopresent tothe Registrar anaccount inthe prescribed formofhisreceiptsandthepaymentsandtosubmitthefinalreportofthe liquidation proceedings is an adequate factor to suggest that the Liquidator acts under the control and supervision ofthe Registrar. The powers enumerated in [SECTION] can be exercised by the Liquidator, subjecttotherulesandgeneralsupervision,controlanddirectionsofthe Registrar,andinexerciseofsuchpowersforthepurposeofwindingup proceedings,whentheLiquidatorneedsassistance,withthepriorapproval oftheRegistrar, heisentitled tomake appointment ofsuchpersons as clerks or peons. This position has not been disputed. The duties and functions which the clerks soappointed either bythe Liquidator or the DistrictRegistrar,arealsonotcontrovertedintheaffidavitinreplyfiled onbehalfoftherespondents.Itisalsonotdisputed,ascanbeseenfrom the affidavitinreply filed in [CASE NUMBER] by [ENTITY], DistrictRegistrar ofCooperative Societies,Baroda,thatconsidering the extentofliquidationworktheGovernmentcreatedapostofCooperative Officer (Liquidation) and such officer is required to complete the liquidation of various cooperative societies in liquidation. In fact the Registrar, Cooperative societies has issued a circular on 961976 permitting the Liquidators to appoint clerks to assist them in the liquidation work on certain terms and conditions. One of the terms providedinthatsaidcircularisthatforthepurposeofaccountswork,the Government officers, with the prior approval of the District Registrar/ AssistantDistrictRegistrar,canavailoftheservicesofoutsidersaccording to their requirements and their remuneration shall be debited to the accountofthesocietyinliquidation.Inviewoftheabove,itbecomesclear that though the Liquidator appoints clerks and peons, he is not the appointingauthorityastheappointmentsmadebyhimarealwayssubject totheapprovaloftheRegistrar.ThefactthattheRegistrarapprovedthe appointments;grantedincrements,otherbenefitsandevenpetitionersof S.C.A.No.4207of1986havealsobeenplacedinthegradeofRs.2606 308EB83268350EB839010400 together with the benefits of dearnessallowance,compensatorylocalallowance,bonus,etc.admissible totheclerksintheGovernmentservices,wouldleavenomannerofdoubt HC-NIC Page 8 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] thatthepowerofappointmentisexercisedbytheDistrictRegistraralone.
Inviewofthis,itisnotpossibleforthisCourttoacceptthesubmissionof therespondentsthatthepetitioners,areappointedonlybytheLiquidator andnotbytheRegistrar.Thepowersexercisable,anddutiesandfunctions as enumerated in [SECTION] of the Act by the Liquidator are quasi judicial in nature and any action or inaction on the part of the clerk dischargingdutiesinaccordancewiththerulesandinstructionsunderthe generalsupervision,controlanddirectionoftheLiquidatorhastheeffect ontheprocessofthewindingupproceedings.
Onbehalfofthepetitioners,itiscontendedthatthepetitionersare for all practical purposes Government servants. To substantiate this, relianceisplacedonthefollowingcircumstances:
(i)Thenatureoftheworkperformedbythepetitionersispublicservice, i.e.,Governmentwork.
(ii) The Officer under whom the petitioners are working isastatutory authority.
(iii) The works which the petitioners are performing in respect of liquidation of societies are as per the provisions of the [ACT], the Rules and the Byelws framed thereunder.
(iv)TheappointmentsaremadebytheDistrictRegistrarwhohasgranted riseinpay,payscalesandotherbenefits.
(v) Circular dated 1651986 issued by the Registrar, Cooperative Societies,Gujarat,eventhoughstatesthatitisnotaGovernmentwork and that the appointment is temporary or the appointment is unauthorised,thesaidcircular,however,directstogivebreakinserviceto theclerksappointedtocarryouttheworkofwindingup.
(vi)Thenatureofworkisperennialanditisnotatemporarywork.
12 Ontheotherhand,itiscontendedonbehalfoftherespondents thatastheappointmentofthepetitionersismadeontemporarybasistill thecompletionofthewindingupproceedingsand,therefore,thenatureof workisnotperennial.ItisalsocontendedthattheofficeoftheDistrict RegistrarisincludedinSchedule"B"totheGujaratNonSecretariatClerks, ClerkcumTypists, Typists (Direct Recruitment Procedure) Rules, 1970 (CentralisedRecruitmentScheme),itisthecontentionoftherespondents thatalltheappointmentsarerequiredtobemadeunderthesaidRules and any appointment made contrary to the provisions of the Rules is illegal.Therespondentshave,therefore,contendedthatasthepetitioners havenotbeenappointedontheestablishmentoftheofficeoftheDistrict RegistrarandthatnoneofthemhasbeenselectedundertheCentralised HC-NIC Page 9 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] nor any one of them has been sponsored by the EmploymentExchange,noratanypointoftimetheirsalarywaspaidby theGovernment,theyarenotentitledtoclaimthestatusofaGovernment servant,norcantheybeabsorbedintheGovernmentservicesandtheir servicescannotberegularisedassuch.
13 Thus,onlyquestionwhicharisesinthesepetitionsiswhetherthe petitionershaveacquiredthestatusofaGovernmentservantandwhether their services are required to be regularised. As stated above, the liquidation proceedings are quasijudicial proceedings. They are carried out by the Liquidator appointed by the District Registrar under the provisions of the Act. The Liquidator is vested with the powers as enumeratedunderSection110oftheAct.Heexercisesthesaidpowers, subjecttotherulesandthegeneralsupervision,controlanddirectionof the Registrar. For the purposes of smooth working of the winding up proceedings,theGovernmentissuedacircularunderwhichtheLiquidator, with the approval of the District Registrar, or the District Registrar, himself, canappointpersons toassisttheLiquidator inthewinding up proceedings.
14 Forthepurposeofputtingtherecordstraightandwithaviewto examine whether the work of winding up of societies is perennial in nature, this Court called for the relevant details of the registered co operativesocieties oftheStateandorthesocietiesundertheprocess of windingupintheStatefromthelearnedAssistantGovernmentPleader. According to the statement supplied by the Statistical Officer to the Registrar ofCooperative Societies, Gujarat, there are49,594 registered societies ason3061994 outofwhichthesocieties inliquidations are 1,411 inthe year 1993. This clearly suggests thatthe work which the petitionersaredoingisofapermanentnature.Forthesakeofargument, assumingthattheworkofwindingupofsocietiesinaparticularcity"A"is over,theservicesofthepersonsengagedforwindingupcanbeutilisedfor the similar work in city "B" where there is work. The fact that the petitionersaredoingworkunderthedirectcontrolandsupervisionofa quasijudicialstatutoryauthyorityandperformingstatutoryfunctionsisa relevant factor toholdthatthepetitionersarecivilservants whose acts anddeedshavetheeffectontheprocessofwindingupproceedings.
15 In [PRECEDENT], the Supreme Court has explainedthemeaningandscopeof'CivilPost'underArticle311ofthe ConstitutionofIndia.ThequestionbeforetheSupremeCourtwaswhether aMauzadarintheAssamValley,whoisnotawholetimeemployeenot drawingsalarybutpaidcommission,holdsacivilpostundertheStateof Assam and is entitled to the protection of [SECTION] of the Constitution?Inthatcontext,theSupremeCourtheldthatthefactthathe HC-NIC Page 10 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] wasnorwholetimeemployeenotdrewasalarybutcommission,didnot alterstatusofhispostaspostoutsideregularlyconstitutedservicesneed notnecessarilycarrydefiniterateofpay,norsuchpostmustnecessarilybe awholetimeemployment.Inpraragraph9ofitsjudgment,theSupreme Courtobserved, AcivilpostisdistinguishedinArticle310fromapostconnected with defence. It is a post on the civil as distinguished from the defence side of the administration, an employment in a civil capacityundertheUnionoraState InArticle311,amemberof acivilserviceoftheUnionoranallIndiaserviceoracivilservice ofaStateismentionedseparately,andacivilpostmeansapost notconnectedwithdefenceoutsidetheregularcivilservices.Apost isaserviceoremployment.ApersonholdingapostunderaStateis apersonservingoremployedundertheState Theheadingand thesubheadingofPartXIVandChapterIemphasisetheelementof service.Thereisarelationshipofmasterandservantbetweenthe Stateandapersonsaidtobeholdingapostunderit.Theexistence ofthisrelationship isindicated bytheState's righttoselectand appointtheholderofthepost,itsrighttosuspendanddismisshim, itsrighttocontrolthemannerandmethodofhisdoingthework andthepaymentbyitofhiswagesorremuneration.Arelationship ofmasterandservantmaybeestablishedbythepresenceofallor someoftheseindicia,inconjunctionwithothercircumstancesand itisaquestionoffactineachcasewhetherthereissucharelation betweentheStateandtheallegedholderofapost.
16 Judged in this light, let us consider the case on hand. The petitionersworkingasclerksareholdersofacivilpostundertheStateas theDistrictRegistrarthroughtheLiquidator,hasthepowerandtheright toselectandappointaclerkandthepowertosuspendanddismisshim. The petitioners are subordinate public servants working under the supervisionandcontroloftheDistrictRegistrarthroughtheLiquidators. The petitioners receive remuneration, of course, from the funds of the societies in liquidation. However, this would not change the position. ThereisarelationshipofmasterandservantbetweentheStateandthe petitioners.Thepetitionersareholdingofficeoncooperativesideofthe administrationtowhichspecificandonerousdutiesinconnectionwiththe affairsoftheStateareattached.Theyareresponsibleandanswerableto theLiquidatorswhoareexercising statutorypowersundertheAct.Itis only because of the existing system of their recruitment and/or employmentandfunctionsthattheyaredeniedthestatusofacivilpost under theState. The factthatthepetitioners arenotselected nor their appointmentshavebeenmadefollowingtheprocedureforselectionsetout undertheCentralisedRecruitment Scheme orthe1970 Rulesforwhich theycannotbeblamed,cannotcomeintheirwaybecausealthroughout theyhavenotbeenconsideredasGovernmentservantseventhoughthey HC-NIC Page 11 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] were appointed either by the District Registrar or by him through the Liquidator. [SECTION] of the [ACT] provides that every year the offices situated in the respective Districts and offices of Heads of Departments/offices mentioned in Appendix "B" shall send a statementtotheCollectorconcernedandtheconveneroftheDepartmental Selection Committee concerned, respectively notlater thanthe1stMay, indicatingtheirrequirementsofnewrecruitsforappointmenttotheposts ofClerks, Clerktypists and Typists for the next year commencing from October to September with such particulars, as the Collectors and the Conveners oftheDepartmental Selection Committee may,bygeneralor specialorderdirect.Itisfurtherprovidedthattheestimateofanticipated requirements of selected candidates shall not depend merely upon the actualnumberofvacanciesexistingorlikelytoariseonsomeparticular date.Buttheofficestowhichtheserulesapplyshallprepareanestimateof their probable requirements by past experience depending upon the probable vacancies on account of resignations and other grounds and creation of new posts owing to anticipated development. Thus, this estimateshallnotmerelybeanestimateofexactnumberofpoststhatmay fallvacantduringparticularperiod,butshallbeanexhaustivenumerical estimateofanticipatedrequirementsofClerks,ClerktypistsandTypists. In view of the pending winding up proceedings in the State and the perennial nature of the work, the Registrar, Cooperative Societies, GujaratwasexpectedtosendastatementtotheCollectorindicatinghis requirements for new recruits. Since the proposals were not made, the chanceofthepetitionersbeingselectedandappointeddidnotmaterialise andbythistimethepetitionershavebecomeoverage.Inanycase,ifthe DistrictRegistrarappointsaprivatepersonasClerkdirectlyorthrough theLiquidatorconsideringtheperennialnatureofthework,therewasno reasonforhimnottoseeksanctionfornewrecruitsaspertheRecruitment Rules.InviewofthisIseenomeritinthesubmissionoftherespondents that as the petitioners have not been appointed by following the due procedure,theyarenotcivilservants.Inviewofwhatisdiscussedabove,I holdthatthepetitionersareforallpurposesGovernmentservants.
17 Nextquestionwhicharisesforconsiderationiswhethertheservices ofthepetitionerscanberegularisedbythisCourt?In [PRECEDENT], the Supreme Court directed the State Government to frame a more rationalschemeforabsorbingasmanycasualworkersandmonthlyrated GangmenandSowdiesaspossibleinregularcadres.Pursuanttothesaid direction, the State filed a draft scheme and considering the same the SupremeCourtdirectedthatthedaily/monthlyratedorcasualworking continuously for long under Instrumentalities of the State must be regularised inservice andtheScheme wasfinalisedbytheCourtgiving directionsinteraliaforimmediatelyregularisingservicesof18,600outof HC-NIC Page 12 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] 50,000workerswhocompletedtenyears'serviceandforregularisingthe remaining such workers in phased manner. It is observed in the said judgment:
"We are alive to the position that the scheme which we have finalisedisnottheidealonebutaswehavealreadystated,itisthe obligation of the Court to individualise justice to suit a given situation in a set of facts that are placed before it. Under the schemeoftheConstitutionthepurposeremainsinthehandsofthe executive. The legislature of the State controls the Consolidated Fundoutofwhichtheexpendituretobeincurredingivingeffectto the scheme will have to be met. The flow into the Consolidated Funddependsuponthepolicyoftaxationdependingperhapsonthe capacity ofthe payer. Therefore, unduly burdening the State for implementingtheconstitutionalobligationforthwithwouldcreate problems which the State may not be able to stand. We have, therefore, made our directions with judicious restraint with the hopeandtrustthatbothpartieswouldappreciateandunderstand thesituation "
18 In [PRECEDENT]Inthesaidcase,the appointments of the employees by way of stopgap arrangement were madetillregularappointmentsweremade.Itappearsthattheemployees appointedbywayofstopgaparrangementcontinuedformorethantwo years and were also possessing requisite qualifications. The Supreme Court, inthatcontext, held thattheyare entitled tohave their service regularised.
19 In [PRECEDENT] though held that the appointment was not proper, it directed the appointees to be treated as regularly appointed on humanitarianground.
20 ItisneedlesstosaythatthepetitionersbeforethisCourthaverelied ontheaforesaiddecisionstosubstantiatetheircontentions.
21 However, on behalf of the respondents reliance is placed on the following judgments. In [PRECEDENT]
HC-NIC Page 13 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] Iftheappointmentitselfisininfractionoftherulesorifitisin violationoftheprovisionsoftheConstitutionillegalitycannotbe regularised. Ratification or regularisation is possible of an act whichiswithinthepowerandprovinceoftheauthoritybutthere has been some noncompliance with procedure ormanner which doesnotgototherootoftheappointment.Regularisationcannot be said to be a mode of recruitment. To accede to such a propositionwouldbetointroduceanewheadofappointmentin defianceofrulesoritmayhavetheeffectofsettingatnaughtthe rules
22 In [PRECEDENT] the Jawaharlal Nehru Rozgar Yojna for their regularisation merely because they put in more than 240 days service.ItisobservedbytheSupremeCourt:
"IftheresourcesusedfortheJawaharRozgarYojnawereintheir entiretytobeusedforprovidingfullemploymentthroughoutthe year,theywouldhavegivenemploymentonlytoasmallpercentage ofthepopulationinneedofincome,theremainingvastmajority beingleftwithnoincomewhatsoever.[ENTITY],therefore,be found with the limited object of the scheme giving the limited resources atthedisposaloftheState.Those employed under the scheme, therefore, could not ask more than what the scheme intendedtogivethem.Togetanemploymentundersuchscheme and to claim on the basis of the said employment, a right to regularisationistofrustratetheschemeitself.NoCourtcanbea party to such exercise. It is wrong to approach the problems of thoseemployedundersuchschemewithaviewtoprovidingthem withfullemploymentandguaranteeingequalpayforequalwork. These concepts, in the context of such schemes are both unwarrantedandmisplaced.Theywilldomoreharmthangoodby deprivingthemanyofthelittleincomethattheymaygettokeep themfromstarvation.Theywouldbenefitafewatthecostofthe manystarvingpoorforwhomtheschemesaremeant.Theywould also force the State to wind up the existing schemes and forbid themfromintroducingthenewonesforwantofresources.Thisis not to say that the problems of the unemployed deserve no consideration or sympathy. This is only to emphasise that even amongtheunemployedadistinctionexistsbetweenthosewholive belowandabovethepovertyline,thoseinneedofpartialandthose inneedoffullemployment,theeducatedanduneducated,therural andurbanunemployedetc. HC-NIC Page 14 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY]
23 Therecannotbeanydisputeasregardstheprincipleslaiddownin thesaiddecision.However,thefactsofthepresentcasearequitedifferent fromthefactsbeforeSupremeCourt.Thefactthatthepetitionershaveput in240daysserviceisnottheonlygroundonwhichthepetitionersclaim regularisationorabsorptionand,therefore,theauthoritycitedonbehalf oftherespondentswillbeofnoassistancetothem.
24 In [PRECEDENT]
25 In [PRECEDENT], the Supreme Court observed that eligibility and continuousworkingforhowsoeverlongperiodshouldnotbepermittedto overreach the law. The requirement of rules of selection through Commissioncannotbesubstitutedbyhumane considerations.Lawmust takeitscourse.Consequentlytheappellantwasnotentitledtoclaimthat she should have been deemed tohave been regularised ifshe had been workingwithoutbreakfornineyears.
26 [PRECEDENT] where the appointments of employees including Junior Managers were made hastilybythethenManaging Director shortly25 daysbeforehisretirementforaprojectfordevelopmentofhandicraftsin contravention oftheGovernment instructions. Itappears thattheState Governmentprohibitedtheappointments.Inspiteofthatcertainpersons were appointed on temporary basis without such approval and the Governmentinturnterminatedtheservicesofsuchappointeesonaccount ofwantofrequisiteapproval.ItappearsthattheHighCourtquashedthe saidorder.TheSupremeCourtquashedtheorderoftheHighCourtonthe groundthattheappointmentsweremadehastilybythethenManaging Director shortly before his retirement. In my opinion, the facts of the present case are quite different and no reliance can be placed on this authorityalso.
27 InJ&KPublicServiceCommissionv.Dr.[PRECEDENT], theSupreme Court setasidethedirections given bythe HighCourttoregularisetheservicesoftherespondentsonthegroundthat thesaiddirectionswerecontrarytotheprovisionsoftheRules.
28 Consideringthedecisionscitedhereinabove,itisamplyclearthat HC-NIC Page 15 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY]
theCourt,whileissuingdirectionofregularisationshouldkeepinmind the judicious restraint and try to avoid undue burdening the State for implementingthescheme.Inotherwords,theCourtshouldindividualise justicetosuitagivensituationinasetoffactsthatareplacedbeforeit. The Court should also see that the direction of regularisation may not conflictwiththeexistingrulesofrecruitment."
9 ThelearnedSingleJudge,inpara29,issuedcertaindirectionsand maderuleineachofthosepetitionsabsolute.Para29readsasunder:
"29. Keeping in mind the aforesaid principles of law and the findings arrivedatbythisCourtthatthepetitionersareheldtobecivilservants and for no fault of theirs they have been denied the absorption in the Governmentservices,especiallywhenitisheldintheinstantcasethatthe workstheyareperformingareperennialinnature.Iamoftheviewthat thepetitionershavemadeoutacaseofregularisationoftheirservicesand, therefore, following directions, this Court hopes, will serve the ends of justice:
1. The respondents are directed to consider the individual cases of the petitioners, frame an appropriate Scheme for regularisation and/or absorptionoftheirservicesandpostthemattheplaceswheretheworkis available by treating them civil servants in the appropriate grades of scales.
2. The respondents shall treat only those employees as Government employeeswhoareappointedeitherbytheRegistrarortheLiquidatorwho himselfistheGovernment employee. Itisclarified that,[ENTITY] lawyer isaLiquidator and has appointed its/his staff tocarry out the workofwindingupofsocietyinliquidation,suchstaffwillnotbetreated asGovernmentemployees.
3. The respondents shall formulate an appropriate Scheme for regularisationand/orabsorptioninservicesofsuchemployees,including thepetitioners,inlightoftheobservationsmadeinthisjudgmentwithina periodofthreemonthsfromthedateofreceiptofwritofthisCourt.
4. Till the finalisation of the Scheme and implementation thereof, the interim relief granted by this Court to the concerned petitioners shall continue.
Rule ineachofthese petitions ismade absolute totheaforesaid extent withcosts."
10 TheStateofGujarat,beingdissatisfiedwiththedirectionsissued by the learned Single Judge referred to above, preferred the Letters Patent Appeals. One of those is the [CASE NUMBER] Page 16 of 18 Created On Fri Jul 01 02:57:59 IST 2016 [CASE NUMBER] [ENTITY] 1995.ThesaidappealsarestillpendingforhearingbeforetheDivision Bench.
11 Inthemeantime,pursuanttothedirectionsissuedbythelearned Single Judge of this Court, the State Government prepared a draft scheme,andIamtoldthatthesaidschemehasbeenplacedbeforethe highestauthorityforappropriateconsideration.Thus,sofarastheState Governmentisconcerned,thematterisnowatthestageofconsidering thedraftscheme.Bethatasitmay,ifultimatelytheStateofGujarat succeeds in the appeals and the judgment and order passed by the learnedSingleJudgeissetaside,thentheissuepalesintoinsignificance whetheraperson,likethepetitionerhereinappointedbytheLiquidator, couldbetermedasagovernmentservantandtheirservicesshouldbe regularizedornot.IftheappealsfailandtheGovernmenthastoproceed further with the scheme, then obviously, the benefit of the scheme should go to the petitioner also, of course, after examining all other relevantaspectsofhisappointmentattherelevantpointoftime.
12 Iproposetodisposeofthiswritapplicationbyobservingthat,if ultimatelytheschemeisfinalized,subjecttotheoutcomeoftheappeals, whicharepending,andifthepetitioneriscoveredbythesaidscheme, thenthebenefitshouldgotohim.Itappearsthattheapprehensionof termination,whichwasexpressedbythepetitioner,waybackintheyear 1996,wasnotwellfounded.Hehascontinuedinservicetillthisdate and Ido not see anyreason why he should be discontinued all of a sudden.Therefore,heshallcontinueinserviceonthesametermsand conditions.Infuture,iftheschemetakesshapeandifthepetitioneris entitled to the benefit of the same, the authorities concerned shall considerhiscase.
13 With the above, this application is disposed of. Direct service is permitted.
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