Can Outsourced or Contractual Employees Seek Regularization When They Have Not Completed Ten Years of Service? Reaffirmation of Umadevi (3) Doctrine by High Courts—Binding Authority and Limits on Equitable Relief

The Madras High Court conclusively applies the Supreme Court’s ratio in Umadevi (2006) to dismiss claims for regularization by outsourced employees lacking ten years of continuous service, even when sponsored by Employment Exchange; distinguishes recent Supreme Court decisions involving longer service periods. The judgment is binding precedent for service law matters involving government contract staff, reasserting limits on regularization jurisprudence.

 

Summary

Category Data
Case Name WP(MD)/16026/2021 of ANAND Vs THE STATE OF TAMILNADU
CNR HCMD010674332021
Date of Registration 03-09-2021
Decision Date 28-10-2025
Disposal Nature DISMISSED
Judgment Author HONOURABLE MR JUSTICE ABDUL QUDDHOSE
Court Madras High Court
Bench Single Judge
Precedent Value Binding on subordinate courts in Tamil Nadu; persuasive for other High Courts
Overrules / Affirms Affirms Supreme Court’s decision in State of Karnataka v. Umadevi (2006)
Type of Law Service Law—Regularization of Contract/Outsourced Employees
Questions of Law Whether an outsourced/contract employee, not having completed ten years of continuous service, is entitled to regularization of service in government departments.
Ratio Decidendi The Court, applying the Supreme Court decision in Umadevi (2006), held that outsourced employees without ten years of continuous service have no vested right to regularization. Merely being sponsored by the Employment Exchange or having served less than the prescribed period does not create such entitlement. The judgment further distinguished the Jaggo SLP (2024) on facts, emphasizing that only in cases involving more than ten years’ service and performance of core governmental functions, exceptional relief may be granted per Supreme Court’s directions. Otherwise, the bar under Umadevi applies squarely.
Judgments Relied Upon State of Karnataka v. Umadevi & Ors, (2006) 4 SCC 1; Jaggo v. Union of India & Ors, SLP(C) No.5580/2024
Logic / Jurisprudence / Authorities Relied Upon by the Court The Court followed the binding precedent of the Supreme Court in Umadevi (2006), holding that courts cannot order regularization contrary to that law. Surveyed ratio of Jaggo SLP, but distinguished it on the ground of longer, uninterrupted service and equivalence of work to regular employees.
Facts as Summarised by the Court Petitioner was appointed in 2005 as Driver via outsourcing agency; claimed to be sponsored by Employment Exchange. Department rejected regularization plea as post unfilled since 2008, no vacancies, and no preference for outsourced staff. Petitioner had not completed ten years’ continuous service.

Practical Impact

Category Impact
Binding On All subordinate courts in Tamil Nadu in matters of government service regularization
Persuasive For Other High Courts and service tribunals; supports use of Umadevi principles nationally
Distinguishes Jaggo v. Union of India & Ors, SLP(C) No.5580/2024
Follows State of Karnataka v. Umadevi & Ors, (2006) 4 SCC 1

What’s New / What Lawyers Should Note

  • Reiterates that mere sponsorship by Employment Exchange or short-term service via outsourcing does not entitle for regularization.
  • Clarifies application of Umadevi (2006) remains strict except in factual situations involving over ten years of continuous service and performance of core government functions.
  • Cites and distinguishes Jaggo SLP (2024) as fact-specific; cannot be invoked in routine cases of incomplete service period.
  • Department’s rejection of regularization for lack of vacancy and non-fulfilment of eligibility criteria is upheld.
  • Affirms that policy limitations and Supreme Court precedent deprive contractual/outsourced employees of regularization rights in absence of clear qualification under Umadevi.

Summary of Legal Reasoning

  • The Court examined the nature of the petitioner’s employment—appointed via an outsourcing agency and not directly by the department.
  • Emphasized that as per State of Karnataka v. Umadevi & Ors (2006), regularization can only be considered if employees have completed at least ten years of continuous service and have been appointed against sanctioned posts through proper procedure.
  • Noted petitioner had not attained ten years’ continuous service, nor was outsourcing a route approved for regularization.
  • Addressed Jaggo v. Union of India (2024), observing that case involved factually different circumstances: those petitioners had completed over ten years and were engaged in core functions, thus qualifying for exceptional relief.
  • Reiterated that “outsourced employees cannot be given preference over direct recruits or regular appointments” and that the “absence of vacancy” is a legitimate ground for rejection.
  • Concluded that, absent fulfilment of Umadevi’s requirements, there is no vested right to seek regularization.

Arguments by the Parties

Petitioner

  • Claimed entitlement to regularization as Driver in the Medical Department.
  • Asserted he was sponsored by the Employment Exchange.
  • Cited Jaggo v. Union of India (2024) to support regularization for similarly placed employees.

Respondent

  • Submitted that the petitioner was engaged through an outsourcing agency, not as a direct appointee.
  • Pointed out that the post of Driver had not been filled since 2008 and that no vacancies existed.
  • Asserted that preference cannot be given to outsourced employees.
  • Relied on Umadevi (2006) to argue no right to regularization in such circumstances.

Factual Background

The petitioner was appointed as a Driver through an outsourcing agency on 22.09.2005 in the respondent department. He claimed that his appointment was sponsored by the Employment Exchange. The department had not filled the post of Driver since 2008, and the petitioner’s request for regularization was rejected on 14.10.2019 on the grounds of lack of vacancy and departmental policy against giving preference to outsourced staff. The petitioner had not completed ten years of continuous service at the time of filing the writ petition.

Statutory Analysis

  • The Court analyzed the constitutional power under Article 226 for issuance of writs and whether it extends to ordering regularization contrary to Supreme Court precedent.
  • Interpreted and applied the Supreme Court’s directions in Umadevi (2006) regarding regularization in public employment, particularly the requirement of ten years’ continuous service.
  • Addressed the administrative discretion to fill posts and its limits under service jurisprudence.

Dissenting / Concurring Opinion Summary

No dissenting or concurring opinions recorded in the judgment.

Procedural Innovations

No new procedural innovations, guidelines or changes to established evidentiary or procedural rules were recorded in the judgment.

Alert Indicators

  • ✔ Precedent Followed – Existing Supreme Court precedent (Umadevi) strictly followed and affirmed.

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