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2024 Supreme(AP) 596

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
SUBBA REDDY SATTI, J.
SBTS Devi – Petitioner
Versus
The State of Andhra Pradesh and Others – Respondents
Writ Petition No. 6396 of 2024
Decided On : 01-08-2024

Advocates:
Advocate Appeared:
For the Petitioner: Pamarthy Rathnakar.
For the Respondent: Revanuru Sudha Rani

IMPORTANT POINT
Termination based on misconduct allegations requires adherence to natural justice principles, including the right to a hearing, even for contract employees.

Headnote:

Natural Justice - Termination of Service - Article 311(2) - The court emphasized the necessity of following principles of natural justice in termination proceedings, particularly when allegations of misconduct are involved, leading to a decision that the termination was invalid due to lack of inquiry.

Fact of the Case:

The petitioner, a Contract Residential Teacher, was terminated without inquiry for allegedly demanding bribes via WhatsApp for salary regularization. The petitioner contended that the termination violated natural justice principles.

Finding of the Court:

The court found that the termination was stigmatic and punitive, lacking a proper inquiry or opportunity for the petitioner to defend against the allegations, thus violating principles of natural justice.

Issues: Whether the termination of the petitioner’s service was sustainable given the lack of inquiry and the nature of the allegations.

Ratio Decidendi: The court held that even contract employees are entitled to a fair hearing before termination, especially when the termination is based on allegations that could harm their reputation.

Result: The writ petition was allowed, and the termination order was set aside.

ORDER :

1. Heard Sri Pamarthy Rathnakar, learned counsel for the petitioner and Sri Nageswar Rao, learned counsel representing Smt. R. Sudha Rani, learned standing counsel appearing for respondents 2, 4, 6 to 8.

2. The writ petition is filed impugning the proceedings vide ESE13-KGBV/5/2024- SAI-SS-ANKP dated 06.03.2024 issued by the 6th respondent whereby terminating the petitioner’s service with immediate effect and canceling the contract between the petitioner and the 7th respondent.

3. Learned counsel for the petitioner would submit that the petitioner has been working as a Contract Residential Teacher (CRT) (Telugu) since 23.04.2011 at Kasturba Gandhi Balika Vidyalaya, Devarapalli, Anakapalli District. The petitioner participated in selections and was appointed as CRT in the year 2011. The agreement entered between the petitioner and the 7th respondent, has been renewed year to year. Be that as it may, the petitioner’s services were terminated on the ground that the petitioner sent What’s App messages to other group members i.e. staff working in Kasturba Gandhi Balika Vidyalaya and demanded bribes of Rs.2,80,000/- for regularization of the salaries under the Minimum Time Scale. No inquiry was conducted before terminating the petitioner from service and canceling the contract. He would submit that the respondent authority violated the principles of natural justice and issued the proceedings and thus, the Proceedings impugned dated 06.03.2024 are liable to be set aside.

4. Sri Nageswar Rao, learned counsel on the other hand would contend that the petitioner by sending What’s App messages demanded the amount from staff working in Kasturba Gandhi Balika Vidyalaya for regularization of their salaries under minimum time scale. He would submit that a case in Crime No. 105 of 2024 on the file of the Anakapalli Town police Station was registered against the petitioner. He would submit that the respondent authorities terminated her services in terms of a Clause contained in the contract. Eventually, prayed to dismiss the writ petition.

5. The point for consideration is whether the Proceedings dated 06.03.2024 issued by the 6th respondent terminating the petitioner from service as CRT and canceling the contract are sustainable?

6. As seen from the material available on record, there is no dispute about the selection and appointment of the petitioner as a Teacher in 2011. There is also no dispute that the petitioner has been working on a contract and the contract has been renewed year to year. In the proceedings impugned it was stated as follows:

    “3. That on scrutiny of the services of the individual, it is observed that the individual has provoked staff working in KGBVs through Whatsapp group and demanded bribe upto Rs.2.80 Lakhs from the staff working in each KGBV, for regularization of their salaries under Minimum Time Scale and to handover the collected money to the Officials concerned who helped in the item of work.”

The proceedings would further indicate that such a message was sent at 10.10 pm on 04.03.2024.

7. Thus, the petitioner’s services were terminated on the grounds of misconduct and cheating of co-teachers.

8. If the allegation, as pointed out in the impugned proceedings is accepted, it would cause stigma on the petitioner. It would hamper the future prosperity of the petitioner. Even in the case of a contract employee, whenever service is terminated by stigmatizing the employee, the authority shall follow the principles of natural justice.

9. In Director General of Police and Others vs. Mrityunjoy Sarkar and Others, (1996) 8 SCC 280 the Apex Court observed as under:

    “In the discharge order, it was stated that the respondents had exercised the power under Rule 34(b) of the West Bengal Service Regulations (Part I) and the instructions contained in Memo No. 4145(2) dated November 22, 1985 of the Assistant Inspector General of Police, West Bengal. It is not in dispute that the Commissioner of Labour in his letter dated September 5/7,

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