Case LawSupreme Court › [2007] 12 S.C.R. 585

Chief Commissioner Of Income Tax And Ors v. Smt. Susheela Prasad And Ors

Supreme Court [2007] 12 S.C.R. 585 27 Nov 2007 In favour of: Revenue
Forum / Bench
Supreme Court
Parties
Chief Commissioner Of Income Tax And Ors v. Smt. Susheela Prasad And Ors
Date of order
27 Nov 2007
Assessment year(s)
Outcome
Allowed

Case analysis

⚙️ Auto-generated structured summary from the order — a quick research aid, not a hand-reviewed analysis. Read the original judgment below for authority.
In Chief Commissioner Of Income Tax And Ors v. Smt. Susheela Prasad And Ors, the Supreme Court (2007) allowed the appeal. The decision went in favour of the Revenue.
Legal topics
Transfer pricing

Original judgment (source document)

The analysis above is EaseValue's editorial summary. Below is the court's original order, reproduced from the public record as a source document — the OCR text is cleaned for readability but may retain scanning artifacts; rely on the official source for the authentic version.
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CHIEF COMMISSIONER OF INCOME TAX AND ORS. v. SMT. SUSHEELA PRASAD AND ORS. NOVEMBER 27, 2007 [DR.ARIJITPASAYAT AND LOKESHW AR SINGH PANT A, JJ.] Service Law-Regularization of service-Of contract employees-On the ground of long rendition of service-Courts below [c ]directing consideration of their regularization-On appeal, held: Matter remitted to High Court for considering the matter in the light ofUma Devi's case. The respondents (employees on contact basis) had filed application before Central Administrative Tribunal, seeking regularization of their services on the ground oflong rendition of service. The Tribunal directed for considering their cases for appointment on regular basis. Writ petition against the order was dismissed by High Court. In appeal to this Court appellant-employer contended that the order was contrary to the law laid down by Supreme Court in *Secretary, State of Karnataka and Ors. v. Uma Devi and Ors., [2006) 4 SCC 1. Allowing the appeal and remitting the matter to High Court, the Court HELD: 1. The question of regularization on the ground oflong rendition of service was the subject matter in Uma Devi's case. Therefore, the matter is remitted to the High Court to consider the case afresh in the light of the said decision. [Paras 8 and 9) [587-B; 590-A] G Secretary, State o.f Karnataka and Ors. v. Uma Devi and Ors., [2006) 4sec1, followed. Chief Commissioner of Income Tax, Bhopal and Ors. v. Lama Jain 586 SUPREME COURT REPORTS [2007] 12 S.C.R. A and Ors .. [2006 J 11 sec 350, referred to. CIVIL APPELLATE JURISDICTION : Civil Appeal No. 5422 of 2007. From the final Judgment and Order dated 28.7.2005 of the High B Court of Madhya Pradesh at Jabalpur in W.P. (S) No. 13440/2004. R. Mohan. A.S.G. and B.V. Balaram Das for the Appellants. Ravindra Srivastava and B.K. Satija for the Respondents. The Judgment of the Court was delivered by DR ARIJIT PASAYAT, J. I. Leave granted. 2. Challenge in this appeal is to the order passed by a Division Bench of the High Court of Madhya Pradesh at Jabalpur in Writ Petition D No.13440 of 2004. The appellants had challenged the composite order of 2004. The appellants had challenged the composite order 2004. The appellants had challenged the composite order The appellants had challenged the composite order appellants had challenged the composite order had challenged the composite order challenged the composite order the composite order composite order order dated 13.11.1997 passed in OA No.69111995 and OA No.89/1996 by the Central Administrative Tribunal, Jabalpur Bench, Jabalpur (in short 'CAT'). The respondents had moved CAT under Section 19 of the Administrative Tribunals Act. 1985 (in short 'the Act') seeking E regularization of their services. D No.13440 of 2004. The appellants had challenged the composite order of 2004. The appellants had challenged the composite order 2004. The appellants had challenged the composite order The appellants had challenged the composite order appellants had challenged the composite order had challenged the composite order challenged the composite order the composite order composite order order 3. The stand of the respondents before the CAT was that they have been on duties as Data Entry Operators on contract basis and were being paid at a rate ofRs.10 per hour up to the maximum of Rs.50/- per day. They have sought for regularization placing reliance on the factum of long F rendition of service. 4. In response, the present appellants contended that the respondents were not departmental employees and their grievances cannot be agitated before the CAT. Placing reliance on some other decisions rendered by G the CAT, the stand of the present appellants was turned down and direction was given for considering their cases for appointment on regular basis. 5. 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SUSHEELA PRASAD (PASA YAT, J.] submitted that the decision of the High Court is contrary to law as laid A down by the Constitution Bench of this Court in Secretary v. State of Karnataka and Ors. v. Uma Devi and Ors., (2006] 4 SCC I. 7. Learned counsel for the respondents on the other hand submitted that since the CAT had relied on an earlier judgment and High Court rightly B did not find any distinguishable feature, the appeal, therefore, deserves to be dismissed. 8. The question of regularization on the ground oflong rendition of service was the subject matter in Uma Devi's case (supra). The said issue has been elaborately dealt with in the judgment. It was inter alia held as C follows: "33. It is not necessary to notice all the decisions of this Court on this aspect. By and large what emerges is that regular recruitment should be insisted upon, only in a contingency and ad hoc D appointment can be made in a permanent vacancy, but the same should soon be followed by a regular recruitment and that appointments to nonavailable posts should not be taken note of for regularization. The cases directing regularization have mainly proceeded on the basis that having permitted the employee to E work for some period, he should be absorbed, without really laying down any law to that effect, after discussing the constitutional scheme for public employment. 45. While directing that appointments, temporary or casual, be regularized or made permanent, courts are swayed by the fact that the concerned person has worked for some time and in some cases for a considerable length of time. It is not as if the person who accepts an engagement either temporary or casual in nature, is not G aware of the nature of his employment. He accepts the employment with open eyes. It may be true that he is not in a position to bargain -- not at arms length -- since he might have been searching for some employment so as to eke out his livelihood and accepts whatever he gets. But on that ground alone, it would not be H
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