Case: U.P. Co-op. Spinning Mills Fedn. Ltd. and Ors Vs. Amar Nath Dwivedi and Ors

1. Respondent No. 1 was appointed on contractual basis on the post of a Training Officer in the U.P. Co-operative Spinning Mills Federation Limited vide letter of Appointment dated 07.09.1998. As per agreement, the contract of appointment was for a period of one year from 25.09.1998 to 24.09.1999, which stood terminated on 24.09.1999. After being relieved from service, the Respondent No. 1 filed the Civil Misc. Writ Petition No. 35625 of 2000 before the High Court of Allahabad which was dismissed on 17.01.2002. However, the order of the learned Single Judge was set aside by the Division Bench in Special Appeal No. 282 of 2002 vide order dated 05.07.2002 and the matter was remanded to the learned Single Judge for a fresh consideration. Thereafter, the learned Single Judge allowed the writ petition of the Respondent and reinstated him in service with back wages vide order dated 16.07.2002. It was held that the conditions in the appointment letter of the Respondent, treating the appointment as contractual was arbitrary. This view has been upheld by the Division Bench by the impugned judgment2. While issuing notice on 20.11.2006, this Court stayed the operation of the impugned order which was continued while granting leave5. This appeal has been preferred by the State of U.P. against the direction in the impugned order to the effect that employees working on deputation belonging to Public Sector Undertakings, (which had become sick) were required to be protected. The Respondent claimed to have been sent on deputation to the State of U.P. by the U.P. Co-operative Spinning Mills Federation Limited. According to the Respondent his appointment with the U.P. Co-operative Spinning Mills as of permanent nature which claim was accepted by the High Court in its judgment dated 08.08.2007. The said judgment has been set aside in Civil Appeal No. 5491 of 2007.

Court's reasoning:
3. We have heard learned Counsel for the parties4. It is clear from the letter of appointment dated 07.09.1998 that the appointment of the Respondent was on contractual basis and in terms of Agreement dated 25.09.1988 the contract of appointment was for a period of one year which was never extended6. In view of above, the claim of the Respondent that he was in permanent employment of the U.P. Co-operative Spinning Mills Federation Limited and in that capacity he was on deputation falls to the ground. On that basis his entitlement to claim absorption in the State services cannot be sustained.