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Issues involved: Regularization scheme for employees, applicability of scheme to contract employees, validity of termination of services, interpretation of policy decision, legality of circular letter extending scheme to autonomous bodies.
Regularization Scheme Applicability: The case involved a scheme formulated by the State of Punjab for the regularization of its employees. The question before the court was whether the appellant was obligated to apply the scheme to its own employees. The High Court opined that the respondent was covered by the policy decision and entitled to its benefits. Validity of Circular Letter: The State extended the regularization scheme to public sector undertakings, corporations, boards, and autonomous bodies through a circular letter dated 23.01.2001. However, the court found that the circular letter was not made in accordance with the Constitution of India and lacked legal authority to be applied to statutory corporations like the appellant. Termination of Services: The respondent's services were terminated on the grounds of not being required further, leading to a legal challenge. The High Court directed the appellant to reconsider the case in light of the regularization scheme, but the respondent's claim was rejected based on a clarification that the scheme did not apply to contract employees. Interpretation of Policy Decision: The court analyzed whether the workmen engaged on a contract basis were covered by the scheme. It was highlighted that the terms and conditions of the appellant's employees were governed by statutory rules and could only be altered through rule amendments, not by a state policy decision or circular letter. Legal Precedents and Conclusion: Citing legal precedents, the court emphasized that regularization is not permissible if appointments have been made in contravention of statutory rules. The judgment was set aside, and the appeal was allowed with no costs. The court clarified that the regularization scheme could only apply to irregular appointments, not illegal ones, as per established legal principles.
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