STATE OF H.P. vs NODHA RAM .

The Supreme Court held that temporary employees engaged on a muster roll basis do not acquire any vested rights to regularization upon the closure of a project due to non-availability of funds. The Court found that the High Court's direction to re-engage these employees was illegal as it would require creating posts in a non-existent establishment. Consequently, the Supreme Court set aside the High Court's order and allowed the appeal, emphasizing a pragmatic approach in employment matters.