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2023 Supreme(Del) 519

IN THE HIGH COURT OF DELHI AT NEW DELHI
JYOTI SINGH, J.
Nina Lath Gupta - Petitioner
Versus
Union of India, through Secretary, Ministry of Information and Broadcasting and Another - Respondents
W.P.(C) No. 10385 of 2021
Decided On : 01-05-2023

Advocates Appeared:
For the Petitioner:Mr. Gurminder Singh, Senior Advocate with Mr. Harshvardhan Jha, Mr. Abhishek Chaudhary, Mr. Aman Pathak and Mr. Gurnoor Sandhu.
For the Respondent: Ms. Archana Gaur.

Headnote:(A) Constitution of India - Articles 14 and 16 - Administrative law - Termination of service without inquiry - Petitioner, Managing Director of National Film Development Corporation, terminated without opportunity or inquiry regarding alleged misconduct, violating principles of natural justice; Respondent sought to transform a stigmatic order into a simpliciter order, which was challenged - Court emphasized that if termination is founded on allegations, it is stigmatic and must follow due process. (Paras 16, 30, 34)

(B) Penalty versus simple termination - Courts can examine the motive and foundation in termination orders; if founded on misconduct, it requires an inquiry - Previous allegations against NFDC that led to petitioner’s termination were not resolved; thus the second order was deemed equally stigmatic despite its wording. (Paras 27, 31)

(C) Relief - Although reinstatement was not ordered due to the elapsed tenure, the court directed financial compensation for outstanding dues and allowances. (Paras 34, 35)

JUDGMENT :

Jyoti Singh, J.

This writ petition has been filed by the Petitioner seeking the following reliefs:—

    “(i) Issue a Writ in the nature of Certiorari quashing the Impugned Order dated 24.04.2018 (Annexure P-13) vide which services of the Petitioner have been illegally terminated as being cloaked as an order simplicitor while in fact its foundation is upon allegations of misconduct which is ex facie punitive and stigmatic, that too without affording her an opportunity of hearing or conducting an inquiry into the alleged misconduct which is in total contravention of the Service Rules of National Film Development Corporation (Annexure P-20) which are duly applicable to the Petitioner as per Clause 1.15 of her appointment letter 06.07.2007 (Annexure P-1) as also the cardinal principals of Natural Justice.

    (ii) Issue a Writ in the nature of Mandamus directing the Respondent No. 1 to reinstate the petitioner in service for the remaining period of her tenure which has been illegally denied to her and release all consequential benefits and further if at all the misconduct is to be looked into then conduct an inquiry as per the Service Rules of National Film Development Corporation (Annexure P-20) and afford an opportunity of hearing to the Petitioner to defend the allegations made against her in the Termination order dated 27.02.2018 which is the foundation of the Impugned Termination dated 24.04.2018 (Annexue P-13)

    (iii) Call for the entire record of the case. And

    (iv) Pass such other and further order(s) as this Hon'ble Court may deem fit and proper in the facts and circumstances of the present case.”

2. Necessary and relevant factual matrix as brought forth by the Petitioner is that in the year 2005, the National Film Development Corporation (hereinafter referred to as the ‘NFDC’) issued an advertisement for appointment to the vacant post of Managing Director (hereinafter referred to as the ‘MD’) of NFDC. The appointment was for a tenure of 5 years with renewal clause. Petitioner applied and upon selection, was appointed to the post of MD for a tenure of 5 years w.e.f. 17.04.2006. Detailed terms and conditions of employment were communicated to the Petitioner later, vide letter dated 06.01.2007. Clause 1.15 of the Offer of Appointment provided that the NFDC Conduct, Discipline and Appeal Rules (hereinafter referred to as the ‘NFDC Rules’), framed by Public Enterprises Selection Board, in respect of non-workmen category of staff, would mutatis mutandis apply to the Petitioner, with the modification that the Disciplinary Authority in Petitioner's case would be the Hon'ble President of India.

3. Upon completion of first 5-year tenure, Petitioner was granted two subsequent extensions for 5 years each, the last one being from 17.04.2016 to 16.04.2021. According to the Petitioner, the extensions were granted to her taking into account her unblemished service record and immense contributions to NFDC as its MD and purely on merit.

4. Petitioner avers that during the 12 years tenure as MD, Petitioner contributed by introducing various business verticals to enhance the revenue of NFDC, the details of which have been furnished in the writ petition. On account of the new business verticals being established, NFDC's turnover saw an exponential increase in the last few years. Revenues grew exponentially from Rs. 17.21 crore in 2008-2009 to Rs. 251.24 crore in 2012-2013. Under Petitioner's leadership, NFDC was presented with Turnaround Award, 2013 by the Board for Reconstruction of Public Sector Enterprise (‘BRPSE’) for posting profits for three consecutive financial years, post restructuring of NFDC.

5. As the facts unfold, Directorate of Advertising and Visual Publicity made a complaint against the NFDC on 06.01.2012, alleging violations of Electronic Media Advertisement Policy. Respondent No. 1/Union of India, vide a Presidential Directive dated 07.06.2013, initiated an Inspection (Special Audit) of NFDC and subsequently, on 20.01.2014 issued a D

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