SC sets aside Order of Punjab and Haryana HC which stayed the reservation of 75% of new jobs for local candidates in private sector; gives 4 week deadline for HC to decide validity of the Act

This is to apprise you on the Supreme Court Order which is out in the public domain today on the Haryana Government’s Order reserving 75% of new jobs for local candidates in private sector basis the Order released by the Supreme Court.

The Supreme Court has set aside the Order of the Punjab and Haryana High Court (“High Court”) which stayed the Haryana State Employment of Local Candidates Act, 2020. The Supreme Court further cited that there is a lack of sufficient reasoning behind the High Court’s stay order which ignores the constitutionality of a particular legislation and needs to be set aside.

The Petitioner contended that the order staying the legislation is contrary to the law laid down by this Court. The Petitioner relied upon several judgments wherein it has been held that there is a presumption of legality in favour of the legislation and is ordinarily not stayed unless the legislation is primarily unconstitutional or gravely illegal. The Portioner further submitted that the High Court has given no reason while staying the legislation.

The Respondent contended that the High Court was primarily satisfied that the legislation is unconstitutional owing to which the interim order was passed. The Respondent stated that over 48,000 companies which are registered in the State of Haryana, would face immense hardship as they cannot employ anybody from outside the State from the date of commencement of the Act. The Respondent further submitted that, if the Supreme Court feels that reasons have to be given by the High Court, the Order passed by the High Court may be continued and the High Court may be requested to decide the matter finally.

Subsequently, the Supreme Court has directed the High Court to decide the matter at the earliest and not later than 17th March, 2022. Furthermore, the Supreme Court directed the parties to be present before the High Court on 22nd February, 2022 for fixing the schedule of hearing and has directed the parties not to seek adjournment.

Further, the Supreme Court directed the State of Haryana not to take any coercive steps against the employers.

The copy of the Order has been attached for your ease of reference. .

Source: Supreme Court