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2022 Supreme(SC) 1477

SUPREME COURT OF INDIA
Uday Umesh Lalit, S. Ravindra Bhat, Sudhanshu Dhulia, JJ.
Joji Anchanattu & Ors. Etc. Etc. – Appellant
Versus
Mahatma Gandhi University & Ors. Etc. Etc. – Respondent
SLP (Civil) Diary No(s). 6378 of 2020 (Arising Out of impugned final judgment and order dated 03-07-2019 in WA No. 2351 of 2018 03-07-2019 in WA No. 2354 of 2018 03-07-2019 in WA No. 2380 of 2018 03-07-2019 in WA No. 2399 of 2018 03-07-2019 in WA No. 2415 of 2018 03-07-2019 in WA No. 2420 of 2018 03-07-2019 in WA No. 2460 of 2018 03-07-2019 in WA No. 2473 of 2018 03-07-2019 in WA No. 2480 of 2018 passed by the High Court of Kerala at Ernakulam)
Decided On : 11-05-2022

Advocates appeared:
Mr. P. N. Misra, Sr. Advocate Mr. Sidharth Luthra, Sr. Advocate, Ms. Sakshi Kakkar, Advocate, Mr. Surin IPE, Advocate, Mr. Shakti Singh, Advocate, Ms. Urvasi Arya, Advocate, Mr. Anmol Kheta, Advocate, Mr. Lakshay Mehta, Advocate, Mr. Karan Kher Gogia, Advocate, Mr. Kumar Kashyap, Advocate, Dr. S.Gopakumaran Nair, Sr. Advocate, Mr. T. G. Narayanan Nair, Advocate, Ms. Priya Balakrishnan, Advocate, Ms. Anupama Kumar, Advocate, Mr. Amit Sharma, Advocate, Mr. P.V. Sundernath, Senior Advocate Mr. Sameer Shrivastava, Advocate, Mrs. Swagoti Batchas, adv Mr. Sidharth Dave, Sr. Advocate, Mr. Kaleeswaram Raj, Advocate, Mr. Mohammed Sadique T.A., Advocate, Mr. Alim Anvar, Advocate, Ms. Anu K. Joy, Advocate, Ms. Thulasi K. Raj, Advocate, Mr. Raghenth Basant, Advocate, Ms. Liz Mathew, Advocate, Ms. Roopali Lakhotia, Adv Mr. Roy Abraham, Advocate, Ms. Reena Roy, Advocate, Ms. Seema Jain, Advocate, Mr. Akhil Abraham, Advocate, Mr. Himinder Lal, Advocate, Mr. Lakshmeesh S. Kamath, Advocate, Ms. Samriti Ahuja, Advocate, Mr. George Poonthottam, Sr. Advocate, Mr. M. P. Vinod, Advocate, Mr. Atul Shankar, Advocate, Mr. Dileep Pillai, Advocate, Mr. Ajay K. Jain, Advocate, Mr. G. Prakash, Advocate, Ms. Priyanka Prakash, Advocate, Ms. Beena Prakash, Advocate, Mr. N.Venkataraman, ASG, Mr. Udai Khanna, Adv Mr. Jitin Singhal Adv Mr. Saurabh Mishra Adv Ms. Vanshaja Shukla Adv Mr. Raj Bahadur Yadav, Advocate, Mr. P.N. Ravindran, Sr. Adv Mr. Bindu K. Nair, Advocate, Mr. C. K. Sasi, Advocate, Mr. Abdullah Naseeh, Adv Ms. Meena K.P, Advocate, Mr. Abhisth Kumar, Advocate, Mr. V. K. Sidharthan, Advocate, Mr. Abhisth Kumar, Advocate, Mr. Biju P Raman, Advocate, Counsel for the Appearing Parties.

The main legal point established in the judgment is that actions of legal malice, such as terminating employees for oblique purposes, are not permissible. The court affirmed the rights of the appellants as permanent employees and directed their restoration with back wages and benefits.

Headnote:

Legal Malice - Formation of Society and Termination of Employees - Kerala High Court - MGU Act, 1991 - Statute 2 of Chapter III of the MG University Statute, 1997 - Payment of Gratuity Act, 1972 - Section 25F of the ID Act

Fact of the Case:

The petitions challenge the judgment passed by the High Court of Kerala at Ernakulam in Writ Appeal No.2512 of 2018 and other connected matters. The High Court observed that the actions of MGU and CPAS, created by the Government of Kerala, to form a Society and terminate employees in the SFI's, smacked of legal malice and were an affront to the rule of law.

Finding of the Court:

The High Court set aside the judgment of the learned Single Judge, found the terminations illegal, declared the appellants to be permanent employees of the University, and directed the restoration of their services with back wages and benefits. The formation of the Society and the transfer of SFI's were not interfered with, but the appellants were to be either deployed to the Society or employed in the University or retrenched in accordance with the law.

Issues: The issues revolved around the legality of the formation of the Society, the termination of employees, and the rights of the appellants as permanent employees of the University.

Ratio Decidendi: The court found that the actions of the University, in cohorts with the Government, to terminate employees in the SFI's, were actuated by legal malice. It held that the appellants were permanent employees of the University and were entitled to be restored to their services with back wages and benefits.

Final Decision: The SLPs were dismissed with directions to comply with the High Court's orders within four months.

ORDER

Diary No(s). 6378/2020, 18359/2021, 4237/2020, 11653/2021 & 18358/2021

1. Learned counsel for the petitioners prays for and are granted liberty to withdraw the present petitions.

2. The SLPs are dismissed as withdrawn.

3. Delay condoned.

    ... .

4. Petitions filed by the Mahatma Gandhi University[1] and Centre for Professional and Advances Studies[2] challenge the judgment passed by the High Court of Kerala at Ernakulam in Writ Appeal No.2512 of 2018 and other connected matter.

    [1] ("MGU" for short)

    [2] ("CPAS" for short)

5. While dealing with the actions of MGU and CPAS created by the Government of Kerala, with presence of one of the representative of the MGU on its Board, the High Court observed as under:

    "The action of the University, in cohorts with the Government, to form a Society and terminate the employees in the SFI's, on grounds of abolition of posts, while the institutions are carried on under the newly formed Society smacks of legal malice. It is for an oblique purpose and indirect object; which is to set at naught the inter-parties judgments of this Court and the supreme Court in the various litigations, even prior to W.A. 442/14. It is a direct affront to rule of law and least expected of an instrumentality of the State. The decision of this Court in W.A 794/13 and connected cases, affirmed by the Supreme Court, is attempted to be circumvented by this action.

    We however do not fault the formation of the Society or the transfer of the institutions and the courses, which is a policy decision. But the permanent employees of the University are to be deployed to the Society as per the requirements, on the very same terms and the excess employees retrenched in accordance with law. There can also be no transfer of employment, unless with the consent of the employees, as has been declared in Jawahar Nehru University (supra). The measure of transfer though found to be actuated by legal malice; this Court would not interfere with the formation of the Society, but to obliterate the malice, it would be appropriate to direct the University to deploy employees, with their consent, to the CPAS, in accordance with the present requirement, but on the same terms and conditions they had with the University. Those whose services are not required will be terminated by way of retrenchment, on terms we will presently put forth and those who do not consent, on terms of payment of gratuity and six months notice pay, as provided in the Statutes."

6. After considering the entire controversy, the conclusions were arrived at in segment XII of the judgment as under:

    "XII (i) We allow all the writ appeals except W.A. Nos.10, 663 & 1018 of 2019 and the claims of appellants 4 to 7 in W.A. No.9 of 2019, setting aside the judgment of the learned Single Judge and finding the terminations illegal.

    XII (ii) W.A. Nos.10, 663 & 1018 of 2019 and the claims of appellants 4 to 7 in W.A. No.9 of 2019 shall stand rejected and the following reliefs and directions shall not apply to them.

    XII (iii) The resolution of the Syndicate produced at Exh.P21 (W.A. No.156/2019) and the consequent termination of the appellants by orders similar to Exh.P22 (W.A. No.156/2019), in the appeals allowed, would stand set aside.

    XII (iv) We declare the appellants to be permanent employees of the University, having the status of Teachers of the Self financing Institution, which has the status of an unaided affiliated college, managed by the University.

    XII (v) The termination of the appellants having been found illegal they would be restored to the services of the University and deemed to have been continued in the service of the University uninterruptedly with all benefits dehors the orders of termination, which are set aside.

    XII (vi) We would not interfere with Ext. P23 (W.A. No. 156/2019) since we do not find any infirmity in the constitution of the Society which was for the purpose of better administration and management of the SFI's. The formation of the Society and the transfer of SFI

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