Supreme Court Rules Against Reinstatement and Regularization of Discontinued Employees in Tamil Nadu

07 May 2024 8:19 AM

By: Admin

In a significant ruling, the Supreme Court of India has held that employees who were discontinued under a government scheme in Tamil Nadu are not entitled to reinstatement and regularization of their services. The judgment, delivered by a bench comprising Justices Ajay Rastogi and Bela M. Trivedi, addressed the issue of whether the employees engaged in a rural employment scheme under the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) could claim reinstatement and regularization.

The court referred to the past records and policy changes surrounding the employment scheme, highlighting its objective of enhancing the livelihood security of poor households in rural areas by providing at least 100 days of guaranteed wage employment. It noted that the scheme had undergone various changes and forms since its introduction in 1989, with periods of discontinuation and reinstatement by successive governments.

Rejecting the direction of the High Court to reinstate and regularize the services of the discontinued employees, the Supreme Court emphasized that the power to create posts rests with the executive or legislative authorities and cannot be directed by the courts. It referred to previous judgments that established the non-judicial nature of post creation and the importance of not bypassing the constitutional requirements.

The court further clarified that the employees in question were engaged in a temporary scheme and were not appointed against regular sanctioned posts. It distinguished their case from situations where irregularly appointed employees in regular establishments were considered for regularization.

Regarding the employees who did not join the scheme introduced in 2022, the court held that they were entitled to receive the honorarium for the specific period they were eligible for, but not to any interest on the principal amount.

The judgment clarified that the employees who joined the scheme introduced in 2022 would remain co-terminus with the scheme and could continue as long as it remained in force. However, they had no right to seek reinstatement or regularization of their services.

This landmark judgment provides clarity on the issue of reinstatement and regularization of employees engaged in temporary schemes under the MGNREGA. It reinforces the principle that courts cannot direct the creation of posts and that regularization can only be considered in specific circumstances.

DATE OF DECISION: April 11, 2023

THE GOVERNMENT OF TAMIL NADU AND ANR. ETC. VS TAMIL NADU MAKKAL NALA PANIYALARGAL AND ORS. ETC.