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WITH CIVIL APPEAL NO. 3940 OF 1994 Hindustan Shipyard Ltd.

V. Dr. S.Prasada Rao J U D G M E N T S.C. AGRAWAL, J.:

These appeals raise common questions relating to regularization of three medical officers (respondents herein) working with the Hindustan Shipyard Limited (hereinafter referred to as 'the appellant-corporation).

Dr. P. Sambasiva Rao obtained the M.B.B.S. degree in 1975 and he was appointed as a medical officer in the appellant-corporation on October 29, 1975 on an honorarium of Rs. 600/- per month to work in the dispensary in the colony/first aid center in the yard. The said appointment was continued till February 27, 1985 with artificial breaks of one day after each appointment for 89 days. During this period a selection was made for regular appointment on two posts of medical officer in 1980-81. Dr. P. Sambasiva Rao was not considered eligible for such selection on the view that for the purpose of eligibility the applicant should have obtained the degree in medicine by 1974 and Dr. P. Sambasiva Rao had obtained his medical degree in the year 1975. He filed a writ petition (W.P. No. 2058 of 1981) in the Andhra Pradesh High Court wherein he sought a writ or direction declaring that he was entitled for absorption into the post of medical officer in the appellant-corporation. In the said writ petition, the learned counsel appearing for the appellant-corporation gave an undertaking before the Court that Dr. P. Sambasiva Rao would be treated as eligible for selection and he was called for interview on March 12, 1981 but he was not selected and he continued to work on ad hoc basis. The last appointment given to Dr. P. Sambasiva Rao was on December 4, 1984 for the period December 5, 1984 to February 27, 1985. Dr. P. Sambasiva Rao fell ill and applied for leave from March 1 1985 but he was informed on June 5, 1985 that his appointment was an ad hoc appointment which expired on February 27, 1985 and, therefore, the question of sanctioning leave after February 27, 1985 did not arise. Feeling aggrieved by the termination of his services with effect from February 27, 1985, Dr. P.Sambasiva Rao filed a writ petition (W.P. No. 9844 of 1985) in the Andhra Pradesh High Court wherein he sought a declaration that the order dated June 6, 1985 terminating his services with effect from February 27, 1985 was arbitrary and illegal and also sought a declaration that he should be deemed to be continuing in service of the appellant-corporation continuously. Both the Writ Petitions (W.P. No. 2058 of 1981 and W.P. No. 9844 of 1985) were disposed of by a learned single Judge of the High Court (Anjaneyulu J.) by judgment dated February 28, 1986. Allowing W.P. No. 9844 of 1985 and quashing the order dated June 6, 1985, the learned single Judge held that the said order effectively dispensing with the services of Dr. P. Sambasiva Rao with effect from March 1, 1985 was extremely arbitrary and unreasonable and was violative of Article 14 of the Constitution. The appellant corporation was directed to reinstate Dr. P. Sambasiva Rao forthwith and consider him for appointment on regular basis at the earliest. The appellant corporation was also directed to put Dr. P. Sambasiva Rao on a reasonable scale of pay. In view of the orders passed in W.P. No. 9844 of 1985, the learned single Judge did not consider necessary to pass further orders in W.P. No. 2058 of 1981. The appellant-corporation filed W.A. No. 281 of 1986 and W.A. No. 282 of 1986 against the said decision of the learned single Judge in these two writ petitions.