UNION OF INDIA vs S.VETTU PERUMAL

The Supreme Court held that the respondent, who was working on a contract basis and paid hourly, could not be considered an 'employee' for the purposes of regularization or absorption, referencing the principles established in Secretary, State of Karnataka Vs. Umadevi, (2006) 4 SCC 1. The Court set aside the orders of the High Court that directed consideration for absorption, affirming that such directions do not apply to contract workers. The appeal was allowed, and the previous orders were overturned, allowing the respondent to participate in future tender processes.