2005 (12) TMI 598 - SC - Service Tax

Summary

Issues Involved:
1. Legality of the selection process for Class IV employees.
2. Validity of the High Court's decision to quash the selection process.
3. Legitimacy of the respondents' claim for regularization of their services.
4. Applicability of prior judgments and legal precedents.

Detailed Analysis:

1. Legality of the Selection Process for Class IV Employees:
The selection process initiated by the Civil Surgeon, Nawanshahar, was scrutinized due to allegations of favoritism and lack of transparency. The advertisement for the posts was issued on 07.05.1997, and interviews were conducted on 12/13.05.1997. The High Court found that no criteria were fixed for evaluating candidates, and 20 out of 30 marks were arbitrarily allocated for interviews without any clear parameters. The High Court noted, "It may also be mentioned here that according to the notification... the committee which was conducting the interview was given no guidelines... it had an absolute and arbitrary discretion regarding how they were to access and award marks during the time of interview." This lack of a structured evaluation process led to discriminatory treatment and an unclear merit list.

2. Validity of the High Court's Decision to Quash the Selection Process:
The High Court, after examining the selection process, set aside the entire selection on the grounds of arbitrariness and lack of transparency. The Court observed, "This would bring the projected time which the Board wanted to spend on interview of one candidate to less than 30 seconds, which would include the time for calling in of a candidate, making him sit down, ask him questions and then requesting him to leave." The Supreme Court upheld this decision, stating, "We have not got the slightest doubt in the greatest abuse of power by the officer concerned. The High Court is entirely correct in taking the decision which it did."

3. Legitimacy of the Respondents' Claim for Regularization of Their Services:
The respondents argued that they were appointed on an ad hoc basis long before the selection process and were only appearing before the Interview Board for regularization. They contended that they were not parties to the earlier writ petition and thus not bound by its decision. However, the Supreme Court held that since the respondents participated in the flawed selection process, they could not claim regularization based on a different premise. The Court stated, "Once the respondents herein had participated in the selection process and became selected, they could not have filed a writ petition on a different premise, namely, they having been appointed on ad hoc basis long time back, their services should have been regularized."

4. Applicability of Prior Judgments and Legal Precedents:
The respondents relied on judgments such as Prabodh Verma and Arun Tewari to support their claims. However, the Supreme Court found these cases inapplicable. The Court emphasized that the High Court's earlier judgment, which quashed the selection process, was binding and could not be bypassed. The Court stated, "Generally legal positions laid down by the court would be binding on all concerned even though some of them have not been made parties nor were served nor any notice of such proceedings given."

Conclusion:
The Supreme Court set aside the impugned judgment of the High Court, which had allowed the respondents' writ petitions and directed the regularization of their services. The appeal was allowed, and the Court reiterated the importance of adhering to judicial precedents and ensuring transparency and fairness in the selection process. The decision underscored that the flawed selection process could not be legitimized through subsequent claims of regularization.