CAT - ['Cuttack']

Extended casual service creates a right to regularization despite initial irregular appointment.

Manas Kumar Sahoo vs CENTRAL BOARD OF DIRECT TAXES

CAT - ['Cuttack']JUDGMENT: May 20, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The ten applicants have been working as Group-D (casual) employees in the Income Tax Department since 2009 and 2010.

Source reference: para 1

They were engaged on a daily wage basis and subsequently received 1/30th of the minimum pay scale.

Source reference: para 1

Despite their uninterrupted service for over 15 years, the respondents issued a letter dated 16.01.2025 directing their disengagement on the grounds that they were hired after the issuance of the DOP&T OM dated 04/10.12.2008.

Source reference: para 1

The respondents contested the plea, arguing the initial appointments were made without following recruitment rules.

Source reference: para 2

The applicants approached the Tribunal seeking regularization and the quashing of the disengagement letter.

Source reference: para 1
02

Issues

1. Whether the respondents were legally justified in directing the disengagement of the applicants after 15 years of uninterrupted service.

Source reference: para 1 & 6

2. Whether the applicants are entitled to be considered for regularization in light of the evolving jurisprudence on temporary/casual employment.

Source reference: para 5 & 6
03

Law Applied

The Tribunal primarily relied on the principles of equity and the "model employer" obligations under Articles 14, 16, and 21 of the Constitution.

Source reference: para 5(v)

It applied the doctrine from State of Karnataka v. Umadevi (3), distinguishing between "irregular" and "illegal" appointments, where the former can be regularized as a one-time measure.

Source reference: para 5(iii)

It further integrated recent Supreme Court precedents including Jaggo v. Union of India, which critiques the misuse of "temporary" labels to evade long-term obligations.

Source reference: para 5(ii)

Vinod Kumar v. Union of India, which holds that sustained service for 25 years warrants reclassification to regular status.

Source reference: para 5(iii)

Dharam Singh v. State of U.P., which cautions that Umadevi cannot be used as a "shield" for exploitation.

Source reference: para 5(v)

Prem Chand v. State of Punjab, asserting that artificial breaks in service should be disregarded for regularization eligibility.

Source reference: para 5(ix)
04

Reasoning

The Tribunal observed that the applicants’ service for over a decade and a half remained undisputed by the respondents.

Source reference: para 2

Applying the reasoning in Jaggo and Shripal, the court found that the "temporary" status of the applicants was a misclassification of roles that are essential and perennial in nature.

Source reference: para 5(ii) & 5(v)

The Tribunal reasoned that the State, as a "constitutional employer," cannot balance budgets by exploiting the most basic workforce through perpetual "adhocism".

Source reference: para 5(v)

The Tribunal determined that the letter dated 16.01.2025 was "bad in law" because it sought to terminate employees who had acquired a legitimate expectation for consideration for regularization through long, uninterrupted service.

Source reference: para 6

By linking the facts to the "Rule of Law," the Tribunal concluded that the sheer duration of service (15 years) necessitated a departure from the strict initial terms of engagement to satisfy the principles of fairness and dignity.

Source reference: para 5(iii) & 8
05

Holding

The Tribunal quashed the disengagement letter dated 16.01.2025.

It held that the applicants’ long service warrants a consideration for regularization despite the technicalities of their initial appointment.

Source reference: para 6

The Tribunal directed the respondents to consider the applicants for regularization in light of the cited Supreme Court precedents within 180 days from the receipt of the order.

Source reference: para 6

The Original Application (O.A.) was allowed with no orders as to costs.

Source reference: para 7
CAT - ['Cuttack']

Original Court PDF

Manas Kumar SahoovsCENTRAL BOARD OF DIRECT TAXES

CAT - ['Cuttack'] · May 20, 2026

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment