'It Provided Back Door Entry': Supreme Court Approves Scrapping Of LARSGESS Scheme For Railway Employees

The Supreme Court has upheld the termination of Liberalized Active Retirement Scheme for Guaranteed Employment for Safety Staff (LARSGESS) for Railway Employees.

The Scheme provided for an avenue of a back door entry into the service of the railways, the bench comprising Justices DY Chandrachud, Indira Banerjee and Sanjiv Khanna said. The court observed thus while dismissing a writ petition filed by some persons who sought appointment under the scheme.

LARSGESS scheme, introduced in the year 2004 and modified in the year 2010, enabled certain category of railway employees (jobs related to safety, drivers, gangmen, etc.)to seek 'voluntarily retirement' after they reach the age group of 55-57 years or complete qualifying service of 33 years and they can seek appointment of their wards (children) in their place.

In 2017, the Punjab and Haryana High Court observed that this Scheme provided for an entry into service for certain wards of serving employees without undergoing a competitive selection consistent with the requirement of Articles 14 and 16 of the Constitution. This scheme is a device evolved by the Railways to make back-door entries in public employment and brazenly militates against equality in public employment, the High Court had observed directing the Government to revisit this scheme. 

On 5 March 2019, the Union of India terminated the Scheme after the Supreme Court (while considering SLP against P&H HC judgment) directed it to take a decision in this regard.

Refusing the reliefs sought by writ petitioners, the bench said that they cannot claim a vested right or a legitimate expectation under such a Scheme. It said:

"A conscious decision has been taken by the Union of India to terminate the Scheme. This has been noticed in the order of this Court dated 6 March 2019, which has been extracted above. While taking this decision on 5 March 2019, the Union of India had stated that where wards had completed all formalities prior to 27 October 2017 (the date of termination of the Scheme) and were found fit, since the matter was pending consideration before this Court, further instructions would be issued in accordance with the directions of this Court. Noticing the above decision, this Court, in its order dated 6 March 2019, specifically observed that since the Scheme stands terminated and is no longer in existence, nothing further need be done in the matter. The Scheme provided for an avenue of a back door entry into the service of the railways. This would be fundamentally at odds with Article 16 of the Constitution. The Union government has with justification discontinued the scheme. The petitioners can  claim neither a vested right nor a legitimate expectation under such a Scheme. All claims based on the Scheme must now be closed."

"In view of the above factual background, we are not inclined to entertain the petition under Article 32. The grant of reliefs to the petitioners would only enable them to seek a back door entry contrary to the orders of this Court. The Union of India has correctly terminated the Scheme and that decision continues to stand."

Case: Manjit vs. Union of India [WP(Civil) No(s).78/2021]
Coram:Justices DY Chandrachud, Indira Banerjee and Sanjiv Khanna
Counsel: AOR Raj Kishor Choudhary, Adv Shakeel Ahmed
Citation: LL 2021 SC 57

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