Repeated Extensions To Contractual Employees Creates Legitimate Expectation Of Regularisation: Himachal Pradesh High Court

The Himachal Pradesh High Court has upheld the regularization of contractual computer operators, holding that repeated extensions of service over a long period create a legitimate expectation of regularization, especially when the employees perform perennial and essential functions.A Division Bench of Chief Justice Gurmeet Singh Sandhawalia and Justice Bipin Chander Negi was hearing an appeal filed by the State against the order of a Single Judge directing regularization of the respondents, who had been working as computer operators since 2004 under a Society implementing catchment area treatment plans and were later re-engaged under Compensatory Afforestation Fund Management and Planning Authority (CAMPA).The Court noted that the respondents were initially appointed through a proper selection process and had rendered continuous service for over two decades. Even after the closure of the Society in 2012, they were re-engaged by the Forest Department under CAMPA and continued performing the same functions, indicating that their work was not temporary but perennial and integral to the functioning of the department.The Court also criticised the practice of the State of engaging employees on a contractual basis for long periods without initiating regular recruitment, terming it exploitative and contrary to principles of fairness and equality. It reiterated that the judgment in Uma Devi cannot be used mechanically to deny regularization.Further, the Court highlighted the unequal bargaining power between the State and contractual employees, observing that such workers often have no meaningful choice but to accept unfair contractual terms for livelihood, warranting judicial intervention to ensure fairness. The Court also held that CAMPA functioned as an extension of the Government and carried out public duties. On the doctrine of legitimate expectation, the Court emphasised that continuous engagement coupled with repeated extensions and long years of service gives rise to a reasonable expectation that the State will eventually recognize such service. It noted that employees continue in such roles, often foregoing alternative opportunities, on the belief that their service will be regularized.“… in the case at hand, the respondents have continued to discharge their duties on contractual posts for a considerable length of time. On account of repeated extensions, the respondents have continued in service and have refrained from seeking alternative employment, notwithstanding the contractual nature of their engagement… it is but natural that a legitimate expectation arises that the appellants would, at some stage, recognize their long and continuous service,” the Court observed. Finding no error in the Single Judge's order, the Division Bench dismissed the State's appeal and upheld the direction to regularize the services of the respondents with consequential benefits.Case Title: State of Himachal Pradesh & Ors. v. Bhupinder Singh Mehta & Ors. [LPA No. 841 of 2025]Click Here To Read/Download Order

Repeated Extensions To Contractual Employees Creates Legitimate Expectation Of Regularisation: Himachal Pradesh High Court

Saksham Vaishya

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