Outsourcing cannot justify replacing existing casual employees already in service; protection against arbitrary displacement was upheld.

Existing casual employees could not be removed merely to replace them with workers engaged through outsourcing under Rule 178, because the power to outsource and reduce expenditure did not justify arbitrary displacement of persons already in service. The Court held that outsourcing is only an administrative mode of engagement and does not create a right to substitute serving casual labourers as a matter of course. The writ petitions therefore failed, and the restraint against removal of the existing casual workers was maintained.

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Issues: Whether casual employees already working with the department could be removed merely to substitute them with persons engaged through service providers under Rule 178 of the General Finance Rules.

Analysis: The only surviving claim was for continuance in service, the prayer for regularisation having been not pressed. The record showed that the employees had been working on casual basis for several years. The Court held that the policy of curtailing expenditure and the power to outsource services did not justify dispensing with the services of existing casual workers, since engaging labour through a contractor would not in itself reduce the overall burden and would, in any event, render the existing workers unemployed without fault on their part. It was further held that outsourcing may be available as a mode of engagement, but it does not confer a right to replace serving casual labourers by substituted personnel as a matter of course.

Conclusion: The direction restraining removal of the existing casual workers and substitution by outsourced personnel was upheld.

Final Conclusion: The writ petitions failed, and the protection granted to the continuing casual employees was maintained.

Ratio Decidendi: Outsourcing may be adopted as an administrative mode, but it cannot be used to arbitrarily displace existing casual employees who are already in service and are not seeking regularisation.

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