Gauhati High Court
Employment and Labour LawAdministrative and Public Law

Satisfactory performance does not create an enforceable right to renewal of contractual scheme engagement.

Gadapani Sarma vs The State Of Assam

Gauhati High CourtJUDGMENT: September 10, 20264 MIN READSOURCE JUDGMENT
Satisfactory performance does not create an enforceable right to renewal of contractual scheme engagement.. Gadapani Sarma vs The State Of Assam. Gauhati High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner was engaged as a Block Technology Manager under the Centrally Sponsored Scheme for “Support to State Extension Programmes for Extension Reforms” (CSS-ATMA) on 6 July 2013 and joined on 11 July 2013.

Source reference: paras. 3–4

His contractual engagement was extended periodically, and he was subsequently transferred to Rampur Development Block, Kamrup.

Source reference: paras. 3–4

His performance was consistently assessed as “Satisfactory,” including for the period 1 April 2024 to 31 March 2025, for which his extension up to 31 March 2026 was recommended.

Source reference: para. 5

However, his name was omitted from the order dated 7 May 2025 extending the engagement of other contractual functionaries.

Source reference: para. 5

The petitioner alleged that, despite the absence of a formal extension order, he continued discharging duties until 6 August 2025, without receiving remuneration from April 2025 onwards.

Source reference: para. 5

The petitioner sought extension of his engagement, payment of outstanding remuneration, protection against the subsequent recruitment process, and consideration of his representation dated 2 September 2025.

Source reference: para. 6

The State contended that the engagement was purely contractual and scheme-based, that renewal was not automatic, and that the State had subsequently prescribed 60 years as the exit age for ATMA contractual employees.

Source reference: para. 9
02

Issues

Whether the petitioner, whose contractual engagement had expired on 31 March 2025 and whose performance was assessed as satisfactory, had an enforceable right to renewal or extension of engagement up to 31 March 2026?

Source reference: paras. 12–14

Whether the earlier extension order referring to continuation up to the age of 65 years, and Clause 3.4.5(ii) of the ATMA Operational Guidelines, entitled the petitioner to continued engagement notwithstanding the absence of a subsequent extension order?

Source reference: para. 13

Whether the petitioner was entitled to remuneration for the period from 1 April 2025 to 6 August 2025, if he had in fact continued working with the knowledge and authorisation of the respondent authorities?

Source reference: paras. 15–16
03

Law Applied

The Court applied the principle that a purely contractual, temporary and scheme-based engagement does not confer an indefeasible or enforceable right to renewal after expiry of the contractual term; renewal depends on the terms of engagement, continuation of the scheme, administrative requirements, performance assessment and the policy decision of the competent authority.

Source reference: para. 12

A satisfactory performance assessment, by itself, does not amount to an order of extension or create a vested right to continuation.

Source reference: para. 14

The earlier order providing for engagement up to 65 years was treated as applicable only to the particular period of extension and not as conferring a permanent right of continuation up to that age.

Source reference: para. 13

Clause 3.4.5(ii) of the ATMA Operational Guidelines, which contemplated preference for existing and experienced contractual manpower and stated that services should not be terminated without assigning reasons, was held not to mandate renewal in every case irrespective of applicable policy and administrative considerations.

Source reference: para. 13

However, where an employee is permitted, with the knowledge or authorisation of the competent authorities, to perform duties after expiry of the formal contract, remuneration is payable for the period actually worked in accordance with the applicable terms and rates.

Source reference: para. 15
04

Reasoning

The petitioner’s engagement was contractual and his last formal extension ended on 31 March 2025. Although his performance was satisfactory and his name appeared in the performance report recommending consideration for extension, those facts did not constitute an extension order or create an enforceable right to renewal.

Source reference: paras. 12, 14

The Court rejected reliance on the 65-year reference in the 2022 order because that order governed a specific period and could not be treated as a continuing guarantee of engagement.

Source reference: para. 13

Similarly, the preference contemplated under Clause 3.4.5(ii) of the Guidelines did not override the State’s discretion regarding renewal or compel continuation of every existing contractual employee.

Source reference: para. 13

The Court therefore found it unnecessary to decide whether the subsequent 60-year exit-age policy operated retrospectively, since the petitioner independently failed to establish a legal right to renewal.

Source reference: para. 14

The claim for remuneration was treated separately. Since the petitioner alleged that he continued working until 6 August 2025, the Court directed the authorities to verify the official records and to pay him for the period actually worked if such work had been performed with the authorities’ knowledge and authorisation.

Source reference: para. 15
05

Holding

The Court held that the petitioner had no enforceable right to renewal or extension of his contractual engagement merely because his performance was satisfactory, because his name appeared in a recommendation for extension, or because an earlier order referred to continuation up to 65 years.

The prayers for extension, protection against subsequent recruitment, and continuation in service were accordingly rejected.

Source reference: no citation

However, the respondent authorities were directed to verify whether the petitioner actually discharged duties from 1 April 2025 to 6 August 2025 with their knowledge and authorisation.

Source reference: para. 16

If so, his admissible remuneration for the period actually worked was directed to be released within six weeks from receipt of a certified copy of the order.

Source reference: para. 16

Subject to this limited direction, the writ petition was dismissed and disposed of.

Source reference: para. 17
Gauhati High Court

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Gadapani SarmavsThe State Of Assam

Gauhati High Court · September 10, 2026

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