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‘Can’t take U-turn after regularising’: Punjab and Haryana HC slams PUNGRAIN, orders full pay-scales to employees

Punjab and Haryana HC criticises PUNGRAIN over discriminatory denial of benefits to 2009-11 recruits, upholds a single-judge verdict in a ruling that cites Article 14 violations and improper withdrawal of rights.

4 min readChandigarhUpdated: Feb 19, 2026 12:15 PM IST

File photo of the Punjab and Haryana High Court.

In a setback to the Punjab State Grains Procurement Corporation Ltd (PUNGRAIN), the Punjab and Haryana High Court Wednesday dismissed all 10 connected Letters Patent Appeals (LPAs) filed by the Corporation and directed it to grant regular pay scales of Rs 10,300-34,800 + Rs 4,400 grade pay, along with all allowances and consequential benefits, to employees appointed between 2016 and 2017.

The Division Bench of Justices Anupinder Singh Grewal and Deepak Manchanda upheld the single judge’s order of August 12, 2025, in its entirety, calling the Corporation’s actions “arbitrary and discriminatory” and violative of Article 14 of the Constitution.

Case background

The dispute centres on employees recruited through a transparent advertisement process issued by PUNGRAIN between 2009 and 2011. They were issued regular appointment letters in December 2016 and January 2017, following their service on contract. The Corporation’s Board of Directors had, in resolutions dated November 25, 2011, and July 28, 2016, adopted the state’s 2011 regularisation policy and decided that employees completing three years of service would be regularised.

Despite these resolutions and regular appointment orders, PUNGRAIN withheld regular pay scales. In August 2020 and February 2021, the managing director unilaterally passed orders (without Board approval) withdrawing the benefits already extended. Aggrieved employees approached the high court through writ petitions, which were allowed by the single judge. PUNGRAIN then filed the present batch of LPAs.

PUNGRAIN argued before the Division Bench that the appointments were “illegal ab initio” for want of sanctioned posts and in violation of a 2003 government directive prohibiting engagement of regular staff. It claimed the single judge erred in treating the appointments as merely “irregular” and in applying the principle of parity.

The single judge had rejected these pleas, holding that the employees were entitled to regularisation as per the Board’s own decisions and that the Corporation could not “approbate and reprobate”.

Why PUNGRAIN lost

The Division Bench, in an 11-page judgment authored by Justice Deepak Manchanda, gave multiple-layered reasons for dismissing the appeals:

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1. Discriminatory treatment violates Article 14: The high court noted that similarly situated employees appointed on April 30, 2008, were regularised on December 23, 2011, pursuant to the Board’s resolution dated November 25, 2011, and continue to enjoy regular status. The present batch was “singled out” allegedly because they approached the court.

2. Withdrawal orders legally unsustainable: The 2020 and 2021 withdrawal orders were passed by the managing director alone, without Board approval. Crucially, these orders did not mention the non-availability of sanctioned posts or the lack of financial approval. The Court held that the Corporation cannot be permitted to “present new reasons to justify its decisions” in court affidavits or arguments.

3. Corporation cannot blow hot and cold: Having itself adopted the 2011 regularisation policy through Board resolutions and issued regular appointment letters, PUNGRAIN could not later take a “complete U-turn” and deny the very benefits it had promised.

4 No justifiable reason for withdrawal: In its concluding paragraphs, the Bench stated, “We agree with the findings recorded by the learned single judge that once the services of the respondents stood regularised, the same could not have been withdrawn without any justifiable reason. More particularly, when similarly situated employees, whose services were also regularised, have not been subjected to such withdrawal, and nothing has been placed on record to rebut the plea of discrimination… the impugned action is clearly arbitrary and violative of Article 14 of the Constitution of India.”

Manraj Grewal Sharma

Manraj Grewal Sharma is a senior journalist and the Resident Editor of The Indian Express in Chandigarh, where she leads the newspaper’s coverage of north India’s most politically and institutionally significant regions. From Punjab and Haryana to Himachal Pradesh and the Union Territory of Chandigarh, she oversees reporting at the intersection of governance, law, politics and society. She also reports on the diaspora, especially in Canada and the US. With a career spanning journalism across several countries, academia and international development, Manraj brings a rare depth of perspective to regional reporting. She is widely regarded as a leading chronicler of Punjab’s contemporary history and socio-political evolution, particularly its long shadow of militancy, federal tensions and identity politics. Her book, Dreams after Darkness, remains a definitive account of the militancy years and their enduring aftermath. Professional Background & Expertise A gold medalist in mass communication and a post-graduate in English literature, Manraj has a multifaceted career spanning journalism, academia, and international development. She was also awarded a fellowship by National Foundation of India and did several in-depth pieces on Manipur. Internationally, she has reported from Israel, US, UK, Myanmar, and Mauritius Her key focus areas include: Regional Politics, History, Agriculture, Diaspora, and Security. Of late, she has started focusing on Legal & Judicial Affairs: Much of her recent work involves reporting on high-stakes cases in the Punjab and Haryana High Court, ranging from environmental policy to civil rights. International Consulting: She previously served as a consulting editor for the Asia Pacific Adaptation Network and a publishing consultant for the Asian Development Bank (ADB) in Manila. Academia: For five years, she was the managing editor of Gender, Technology and Development, a peer-reviewed international journal at the Asian Institute of Technology, Bangkok. Recent Notable Articles (Late 2025) Her recent reportage focuses heavily on judicial interventions and regional governance: 1. Environment & Governance "‘NGT can’t test legality of policy’: HC hears challenge to Punjab’s ‘Green Habitat’ plan" (Dec 22, 2025): Covering a critical legal battle over whether the National Green Tribunal has the authority to strike down a state policy regularizing farmhouses on delisted forest land. "High court pulls up Punjab poll panel over audio clip probe" (Dec 10, 2025): Reporting on judicial concerns regarding the transparency and fairness of local body elections. 2. Legal Rights & Social Welfare "HC issues notice to Punjab, Haryana over delay in building old age homes" (Dec 22, 2025): Reporting on a contempt petition against top officials for failing to establish government-run homes for the elderly as promised in 2019. "Victims can appeal acquittals in sessions court without seeking special leave" (Dec 19, 2025): Highlighting a significant procedural shift in criminal law following a Supreme Court ruling. "HC upholds benefits for Punjab FCI officer acquitted in 20-year-old bribery case" (Dec 19, 2025): A report on the concept of "honourable acquittal" and its impact on employee benefits. 3. Human Rights & Identity "As Punjab denies parole to MP Amritpal Singh, HC asks it to submit ‘foundational material’" (Dec 1, 2025): Covering the legal proceedings regarding the radical preacher and sitting MP's request to attend Parliament. "Protecting life paramount: HC backs Muslim woman in live-in after verbal divorce" (Nov 6, 2025): Analyzing judicial protections for personal liberty in the context of traditional practices. Signature Beats Manraj is recognized for her ability to decode complex judicial rulings and relate them to the everyday lives of citizens. Whether it is a 30-year-old land battle in Fazilka or the political implications of Kangana Ranaut’s candidacy in Mandi, her writing provides deep historical and regional context. Contact @grewal_sharma on X manrajgrewalsharma on Instagram ... Read More

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