Appointments Cannot Be Cancelled By Appointing Authority Merely On Direction Of State Govt: Allahabad High Court

In a significant ruling reinforcing the independence of appointing authorities, the Allahabad High Court has set aside the termination of 50 Assistant Managers of the Uttar Pradesh Cooperative Bank Ltd. , holding that their services could not be cancelled merely on the dictate of the State Government without independent application of mind by the competent authority.

Justice Rajeev Singh, presiding over a single-judge bench at the Lucknow Bench, quashed the termination orders dated June 7, 2019, along with the preceding government directions and board resolutions that led to the dismissals. The court directed that the petitioners be allowed to resume their duties, with the intervening period treated as "no work no pay."

The Recruitment Process and Subsequent Challenge

The case traces back to an advertisement issued on June 26, 2015, by the Uttar Pradesh Co-operative Institutional Services Board for the post of Assistant Manager in the U.P. Cooperative Bank. The initial eligibility criteria required a graduate degree in Commerce, Economics, Mathematics, or Statistics with at least 50% marks, or an MBA/PGDM in Banking and Finance.

However, before the last date for submission of applications, the Board of Directors of the Bank , in a meeting on July 7, 2015 , resolved to widen the qualification to "Graduate in any discipline with 50% marks." This change was approved by the Registrar-cum-Commissioner, Cooperative Societies , who was empowered under Section 120 of the Uttar Pradesh Cooperative Societies Act, 1965 read with Regulation 7 of the U.P. Cooperative Societies Employees Service Regulations, 1975 . A corrigendum was published on July 22, 2015, and the last date for applications was extended.

The petitioners applied, cleared the written examination, and were declared successful on October 15, 2015. They joined service in February 2016, with their appointment letters expressly made subject to the outcome of writ petitions filed by unsuccessful candidates, including Jyoti Shukla v. State of U.P. (Writ Petition No. 6003 (S/S) of 2015).

The Inquiry and Government Directive

In 2018, on a complaint by an NGO named Sahkar Bharti , the government ordered an inquiry into the recruitment. The inquiry report, submitted on January 7, 2019, alleged that the qualification had been reduced through a conspiracy involving then Managing Director Mr. Ravikant Singh and others, and that appointment letters had been issued in undue haste after an interim stay in the pending writ petition was not extended.

Based on this report, the Principal Secretary, Cooperative Department, Government of U.P. , Mr. M.V.S. Rami Reddy, issued a letter on April 27, 2019, directing the cancellation of the appointments of all 50 Assistant Managers. A follow-up letter on May 24, 2019, reiterated this direction and instructed the Bank to file caveats in the High Court. The Board of Directors of the Bank, in a meeting on May 30, 2019, resolved to terminate the services of the petitioners with one month's salary in lieu of notice. The termination orders were issued on June 7, 2019.

Arguments Before the Court

The petitioners, represented by Senior Advocate Sri Gaurav Mehrotra, argued that the termination was based solely on the directive of the Principal Secretary, without any independent application of mind by the appointing authority. They highlighted that the change in qualification was made by the Registrar-cum-Commissioner, who was legally empowered to do so, and no disciplinary proceedings or criminal charges had been brought against the petitioners themselves. They relied on the Supreme Court judgment in M.P. State Cooperative Bank Limited, Bhopal v. Nanuram Yadav and others , where it was held that an employee cannot be terminated merely on the recommendation of a higher authority.

The respondents, including the State, the Bank, and the Service Board, contended that the entire selection process was vitiated by irregularities. They pointed to the criminal investigation which allegedly revealed that relatives of the then Chairman and other officials were among the selected candidates, and that interpolation in OMR sheets had been detected. However, they conceded that no charge sheet had been filed against any of the petitioners.

Court's Analysis and Key Observations

Justice Rajeev Singh meticulously examined the chain of correspondence leading to the termination. He observed that the impugned orders were "passed by the Appointing Authority only on the direction of the Principal Secretary of the concerned department." The court noted that the Board of Directors and the Managing Director merely acted on the government's dictate without any independent consideration.

" There is no whisper in the order of Principal Secretary, Cooperative, about the illegal act of the petitioners ," the court remarked, emphasizing that nothing adverse was alleged against the individuals whose services were terminated.

The court further observed that the qualification had been altered by the Registrar-cum-Commissioner, who was competent under the Act, and the selection process had been completed accordingly. The interim order in the earlier writ petition was not extended on February 18, 2016, and the writ petition itself was ultimately dismissed on March 1, 2023, as the petitioner had participated in the process and failed.

Relying on M.P. State Cooperative Bank v. Nanuram Yadav , the court held that an authority cannot terminate an employee solely on the basis of a superior's recommendation without applying its own mind. The resolution passed by the Managing Committee and the subsequent formal order by the Managing Director showed no independent assessment.

The Decision

The High Court allowed both writ petitions, setting aside the termination orders dated June 7, 2019, as well as the preceding government letters of April 27, 2019, and May 24, 2019, the Board's resolution of May 30, 2019, and the Service Board's letter of June 4, 2019. The court directed that the petitioners be reinstated and permitted to resume their duties as they were prior to the termination. However, the period from the date of termination till the date of judgment shall be treated as "no work no pay."

This judgment serves as a crucial reminder that appointing authorities must exercise their own discretion and cannot blindly follow government directives, especially when the individuals whose services are terminated have not been personally found guilty of any misconduct.