LIC, being public employer, can't hire 11,000 workers without due process: SC

Allowing for backdoor entries into service is an anathema to public service, the court said

The Supreme Court on Wednesday declared that a public employer such as LIC cannot be directed to carry out a mass absorption of over 11,000 workers without following a recruitment process, consistent with the principles of equality of opportunity governed by Articles 14 and 16 of the Constitution.

"Such an absorption would provide the very backdoor entry, which negates the principle of equal opportunity and fairness in public employment, which has been specifically decried by this Court in 'Secretary, State of Karnataka Vs Umadevi'," a bench presided over by Justice D Y Chandrachud said.

The court said the LIC is bound by the mandate of Articles 14 (equality) and 16 (no discrimination) of the Constitution for being a statutory corporation. As a public employer, the recruitment process of the corporation must meet the constitutional standard of a fair and open process. Allowing for backdoor entries into service is an anathema to public service, it added.

Dealing with a nearly four-decade old dispute related to part-time workers of the LIC, the bench, also comprising Justices Surya Kant and Vikram Nath said, the claims of those workers who are duly found upon verification to meet the threshold conditions of eligibility should be resolved by the award of monetary compensation in lieu of absorption, and in full and final settlement of all claims and demands.

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Using its constitutional power to do complete justice under Article 142, the bench appointed a committee of Justice P K S Baghel, former judge of the Allahabad High Court; and Rajiv Sharma, former District Judge and member of UP Higher Judicial Service for carrying out the task of verification.

In its judgement on a batch of applications, the court directed for a fresh verification of the claims of workers, employed for at least 70 days in Class IV posts over a period of three years or 85 days in Class III posts over a period of two years between May 20, 1985 and March 4, 1991.

"All persons, found to be eligible on the norm shall be entitled to compensation computed at the rate of Rs 50,000 for every year of service or part thereof. The payment of compensation at the rate shall be in lieu of reinstatement, and in full and final settlement of all claims and demands of the workers in lieu of regularisation or absorption," the bench said.

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