In the case of Shailja Sharma vs. State of Himachal Pradesh and Anr. (2026), the High Court of Himachal Pradesh addressed a petition challenging the Himachal Pradesh Recruitment and Conditions of Service of Government Employees Act, 2024 (Act No. 23 of 2025), specifically regarding restrictions on counting contract service for employee benefits.
Challenge to the 2024 Act
The petitioner sought to have the 2024 Act declared null and void to the extent that it restricted the benefit of counting contract service for government employees. However, the Court noted that the constitutionality of this Act had already been adjudicated and the Act was quashed as unconstitutional in the landmark judgment of Devinder Kumar & others vs. State of H.P. (April 2026).
The Court reaffirmed that because the Act was set aside, all consequential actions by the State including orders denying benefits or proposing the recovery of already granted reliefs based on that Act are illegal and nullified.
Settled Principles for Employee Benefits
The Court disposed of the petition by directing that employee grievances must be decided based on five settled legal principles:
- Mandatory Compliance with Court Verdicts: Benefits already granted by a court verdict to an employee or category of employees must be extended regardless of any other internal policies.
- Contract Service (without full R&P Rules): For employees regularized after contract service that did not strictly follow regular Recruitment and Promotion (R&P) procedures, the contract period counts toward pensionary and retiral benefits. They are entitled to notional increments for that period to determine their last pay drawn, though this period does not count toward seniority.
- Contract Service (with full R&P Rules): Employees appointed on a contract basis through a formal process under Article 309 (open competition with wide publicity) are entitled to all consequential benefits, including financial increments and seniority from their initial date of appointment.
- Financial Restrictions: For recurring claims like pensions, back-arrears may be restricted to three years prior to the claim, unless a specific court order directs otherwise.
- Seniority Consideration: Seniority claims must be decided based on service jurisprudence, taking into account when the claim was made and the rights of any affected third parties.
Conclusion and Timeline
The petition was disposed of with the following instructions:
- The petitioner is permitted to file a representation to the Director of School Education by May 30, 2026.
- The Director must pass a reasoned, speaking order on the representation by July 15, 2026, after providing the petitioner an opportunity to be heard.
STPL (Web) 2026 HP 223
Shailja Sharma V. State of Himachal Pradesh And Anr. (D.O.J. 11.05.2026)
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