Continuous service in perennial work despite technical breaks entitles contractual employees to regularization and post creation.

The petitioners were appointed on various posts on a contractual basis between 2012 and 2014 under the "Pradhan Mantri Gram Sadak Yojna" (PMGSY)

They approached the High Court seeking the creation of permanent posts and regularization of service, contending they had worked continuously for years, subject only to "technical breaks" designed to deny them permanency benefits

The State opposed the petitions, arguing that the Court cannot direct the creation of posts, which is an exclusive executive function, and that regularization cannot be granted in the absence of sanctioned posts

The Court applied the principle of parity, holding that similarly situated employees must be treated equally

as affirmed in *Pawan Kumar v. Union of India* (2026)

It relied on *Jaggo v. Union of India* (2024) and *Dharam Singh v. State of U.P.* (2025), which establish that executive decisions regarding post-sanctioning are subject to judicial review and that regularization can be granted if the work is perennial

Furthermore, the court followed the rule of *stare decisis* regarding coordinate benches, noting that a later bench is bound by the view of an earlier bench of equal strength unless it is manifestly erroneous

citing *Sant Lal Gupta v. Modern Co-operative Group Housing Society Ltd.*

The Court noted that the issue was already decided by a coordinate bench in *Mahesh v. State of Maharashtra* (WP 3489/2015), which dealt with the same PMGSY scheme

The Court rejected the State’s request to refer the matter to a Larger Bench, observing that the *Mahesh* judgment followed recent Supreme Court precedents (*Jaggo* and *Dharam Singh*) which shifted the focus toward protecting employees in perennial roles

The Court observed that the scheme is funded and controlled by the State, and the work involved is perennial in nature

It found that "technical breaks" were a tactic used by the "Welfare Government" to deny benefits, which is impermissible

Consequently, judicial propriety demanded following the coordinate bench's decision to ensure uniformity

The Court specifically ordered the authorities to create the necessary posts to absorb the petitioners within the Zilla Parishad, State Government, or the Society

Relief was limited to arrears of salary for three years preceding the filing of the petitions, along with bank interest