Judgment

ORDER:- Special leave granted.

2. The West Bengal State Electricity Board is the principal appellant in this appeal by special leave which we have just now granted. The first respondent, a permanent employee of the West Bengal State Electricity Board, filed the writ petition out of which the appeal arises in the Calcutta High Court to quash an order dated March 22, 1984 of the Secretary, West Bengal State Electricity Board terminating his services as Deputy Secretary with immediate effect on payment of three months salary in lieu of three months notice. The order gave gave no reasons for terminating the services of the respondent and there was nothing in the order which could possibly be said to attach any stigma to the respondent. Apparently the order was made under Regulation 34 of the Boards Regulations which enables the Board to terminate the services of any permanent employee by serving three months notice or on payment of salary for the corresponding period in lieu thereof. The High Court contrasted Regulation 34 with Regulation 33 which provides for the termination of services of both permanent and temporary employees of the Board on attaining the age of superannuation. as a result of the disciplinary action etc. For the sake of convenience we extract below Regulation 33 and the first paragraph (which alone is relevant) of Regulation 34 :

"33(l) Unless otherwise specified in the appointment order in any particular case, the services of a permanent employee of the Board may be terminated without notice -

(i) on his attaining the age of retirement or by reason of a declaration by the competent medical authority that he is unfit for further service: or

(ii) as a result of disciplinary action:

( iii) if he remains absent from duty, on leave or otherwise, for a continuous period exceeding 2 years.

(2) In the case of a temporary employee his service may be terminated by serving of-

(a) one months notice on either side or on payment of a months salary in lieu thereof; or

(b) notice on either side for the period specified in the appointment order or contract or on payment of salary in lieu thereof as the case may be.

(c) the service of a temporary employee shall also he deemed to have been terminated .automatically if the period of extraordinary leave without pay and or of unauthorised absence from duties exceeding a maximum period of 90 days.

"34. In case of a permanent employee, his services may be terminated by serving three months notice or on payment of salary for the corresponding period in lieu thereof."Contrasting Regulations 33 and 34 the High Court came to the conclusion that Regulatior 34 was arbitrary in nature and suffered from the vice of enabling discrimination. The High Court, therefore, struck down the first paragraph of Regulation 34 and as a consequence quashed the order terminating the services of the first respondent.

3. The learned counsel for the West Bengal State Electricity Board submitted that Regulation 34 did not offend Art. 14 of the Constitution, that Ss. 18A and 19 of the Electricity (Supply) Act laid down sufficient guidelines for the exercise of the power under Regulation 34 and in any case the power to terminate the services of a permanent employee was vested in higher ranking officials and might be expected to be exercised in a reasonable way.

4. We are not impressed with the submission of the learned counsel for the Board. On the face of it, the regulation is totally arbitrary and confers on the Board a power which is capable of vicious discrimination. It is a naked hire and fire rule, the time for banishing which altogether from employer employee relationship is fast approaching. Its only parallel is to be found in the Henry VIII class so familiar to administrative lawyers. In MotiRam Deka v. North East Frontier Railway, AIR 1964 SC 600 Rules 148 (3) and 149(3) of the Indian Railway Establishment Code were challenged on the ground that they were contrary to Art. 311(2) of the Constitution. The