Govt can make appointment on contract basis: SC

NEW DELHI: The Supreme Court has held that Government has absolute right to appoint persons on contract basis in higher posts if the person fulfils the required qualifications.

"There is no bar for appointment to the post in question (Managing Director) on contract basis. The Government has absolute right to appoint persons on contract basis," a Bench comprising Justice A R Lakshmanan and Justice Tarun Chatterjee said while upholding the contractual appointment of an MD in Karnataka Urban Water Supply and Drainage Board.

The court said the Government's power on appointment included the power to make appointment on temporary, officiating basis, adhoc basis, daily wages or contractual basis.

The judgement was delivered by setting aside two rulings of the Karnataka High Court which had quashed the appointment of B Srinivasa Reddy as MD on contractual basis.

"Reddy's appointment was at the instance of the state government in accordance with the provisions and rules. The state government has power to take its own decision on a suitable candidate for appointment as long as the eligibility criteria was satisfied," the bench said.

"It is settled law by catena of decision that Court cannot sit in judgement over the wisdom of the Government in the choice of the person to be appointed so long as the person chosen possesses prescribed qualification and is otherwise eligible for appointment," Justice Lakshmanan, writing the judgement for the Bench, said.