The case of Dharam Singh v. State of Himachal Pradesh and Others addresses the right of a daily wage worker to be regularized following the closure of a state board and its subsequent merger with a government directorate.
Core Legal Principle
The Court established that the State cannot deny regularization to a worker by claiming they are not a government employee if the original employing body has been closed and its employees deployed to a State Directorate. Furthermore, when an appointment is made through a formal process involving an employment exchange and an interview, it is considered a valid appointment rather than a “backdoor entry”.
Factual Background
- Initial Appointment: The petitioner was appointed as a daily wage Cook on July 16, 2019, by the H.P. State Social Welfare Board (Respondent No. 3). His name was sponsored by the employment exchange, and he was selected following an interview approved by the Directorate.
- Funding: Although the Board was the immediate employer, the State Government provided the grant-in-aid for his wages.
- Closure and Merger: On January 5, 2024, the State ordered the immediate closure of the H.P. State Social Welfare Board. Its assets, liabilities, and employees were transferred to the Directorate of Women and Child Development (WCD) and ESOMSA.
- The Claim: The petitioner sought regularization after completing four years of continuous service in July 2023, in accordance with the State’s 2023 policy.
The State’s Defense
The State (Respondents No. 1 and 2) argued that the petitioner was an employee of an “independent organization” and did not hold a “civil post”. They contended that the government’s regularization policy did not apply to him because he was not a “Government employee”.
The High Court’s Findings
Justice Ajay Mohan Goel rejected the State’s arguments and allowed the petition based on the following:
- Successor Liability: Since the Board ceased to exist and the petitioner was deployed to the Directorate, the State assumed responsibility for his service conditions.
- Accrued Rights: The petitioner completed four years of service on July 15, 2023. Under the April 30, 2023, policy, workers completing four years of service by September 30, 2023, were entitled to regularization.
- Inconsistency in State’s Stand: The Court noted that even though the Board was closed in January 2024, the State continued to argue in October 2024 that the petitioner was still a Board employee, which the Court found untenable.
- Funding Source: Because his wages were already being funded by the State while he worked for the Board, the argument that he was not a government servant was further weakened.
Conclusion and Relief
The High Court held the denial of regularization to be legally unsustainable. The respondents were directed to:
- Regularize the petitioner’s services from the due date (September 30, 2023).
- Grant the petitioner seniority and all consequential benefits.
- Pay monetary arrears on a notional basis from the due date until the date of the judgment (April 2, 2026), with actual benefits starting thereafter.
STPL (Web) 2026 HP 210
Dharam Singh V. State of Himachal Pradesh And Others (D.O.J. 02.04.2026)
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