THE HIGH COURT OF GAUHATI (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
VIJAY BISHNOI, CJ, KAUSHIK GOSWAMI, J
Prashanna Baishya S/o Late Banti Ram Baishya - Appellant
Versus
The State Of Assam And 2 Ors - Respondent
WA / 286 / 2024
Decided On : 30-01-2025
(A) Contract Law - Principles of Natural Justice - Termination of service without show cause notice - The petitioner, a Laboratory Technician, was terminated without due process following allegations of misconduct, which the court found to be stigmatic - The court emphasized the necessity of adhering to the principles of natural justice even in contractual employment - The impugned termination order was quashed as it was deemed illegal due to lack of opportunity for the petitioner to defend himself. (Paras 10 , 12 , 17 , 20 )
(B) Contractual Employment - Rights of Employee - The court reaffirmed that a contractual employee has a right to continue until the end of the contract unless terminated for misconduct with due process - The absence of a fair hearing rendered the termination invalid. (Paras 13 , 15 , 18 )
Facts of the case:
The petitioner was employed as a Laboratory Technician and was terminated based on allegations of malpractice without a show cause notice. The learned Single Judge upheld the termination, leading to the appeal.
Findings of Court:
The court found the termination to be illegal due to the failure to provide an opportunity for the petitioner to respond to the allegations.
Issues: Whether the termination was valid without a hearing, given the allegations of misconduct.
Ratio Decidendi: The court ruled that even contractual terminations based on misconduct require adherence to natural justice principles.
Result: The termination order was quashed, and the appeal was allowed.
JUDGMENT :
(Kaushik Goswami, J.)
Heard Mr. D. Das, learned Senior Counsel assisted by Mr. K. Mohammed, learned counsel for the petitioner/appellant. Also heard Mr. P. Nayak, learned Standing Counsel, Assam State AIDS Control Society, for the respondent No. 2 and Ms. D. Borah, learned Standing Counsel, Health Department for respondent Nos. 1 and 3.
2] This appeal is presented against the Judgment and Order dated 26.04.2024, passed in WP(C) No. 1042 of 2023, by the learned Single Judge whereby the impugned order of termination of service of the petitioner/appellant was upheld.
3] The brief facts of the case are as follows:-
The petitioner/appellant was appointed as Laboratory Technician by the Project Director, Assam State AIDS Control Society (hereinafter called as “the Society”) on 16.09.2005 for a period of 6 months, which was extended from time to time. During the course of engagement, the petitioner/appellant was allowed to work at the Blood Bank attached to the Guwahati Medical College Hospital (GMCH). In connection to an incident occurring in the counter of the aforesaid Blood Bank on 11.01.2023, an FIR was lodged in the jurisdictional Police Station. In connection thereto, the petitioner/appellant was also arrested and thereafter was released on bail. Pursuant to the said incident, the service of the petitioner/appellant was terminated by order dated 13.01.2023. Aggrieved by the aforesaid termination, the petitioner/appellant filed the writ petition which was dismissed by the learned Single Judge by upholding the said termination order. Situated thus, the present appeal has been preferred.
4] Mr. D. Das, learned Senior Counsel submits that the impugned termination order is totally illegal inasmuch as despite the termination being stigmatic in nature, no show cause notice whatsoever had been issued to the petitioner/appellant before issuance of such termination. He further submits that even in the case of contractual employment, it is imperative for the employer to follow the principles of natural justice before termination in the event such termination is stigmatic.
5] Per contra, Mr. P. Nayak, learned Standing Counsel, Assam State AIDS Control Society for the respondent No. 2 submits that the engagement of the petitioner/appellant being contractual in nature and the terms of engagement having provided specific clause for termination, the impugned termination order is valid and legal and therefore, warrants no interference from this Court. He further submits that the respondent authority had conducted a detailed enquiry after which the services of the petitioner/appellant was terminated and therefore, the impugned judgment and order of the learned Single Judge upholding the termination of the petitioner/appellant warrants no interference from this Appellate Court. In support of the aforesaid submission, he relies upon the following decisions:-
6] We have given our prudent consideration to the arguments advanced by the learned counsels appearing for the contesting parties and have peruse
Parshotam Lal Dhingra Vs. Union of India
K. Ragupathi Vs. State of Uttar Pradesh & Others
Rajasthan State Roadways Transport Corporation Vs. Paramjeet Singh
Termination of contractual employment must adhere to principles of natural justice, especially when allegations of misconduct are involved.
The court emphasized the importance of contractual agreements and the justification for termination based on misconduct, while considering the expiration of the agreement.
Termination orders based on misconduct must adhere to natural justice principles, ensuring employees have a fair opportunity to defend themselves.
The court affirmed that natural justice principles apply even in contractual employment but can be flexible; proper opportunity must be given, but not always in the traditional sense.
If misconduct is the foundation to pass the order, then an enquiry into misconduct should be conducted and an action according to law should follow. But if it is (sic) notice, it is not incumbent upo....
The legal point established is that a contractual employee's termination can be based on the grounds specified in the agreement, after affording the employee an opportunity to show cause, and without....
Contractual employee terminations deemed stigmatic require compliance with natural justice, including issuing a show cause notice before termination.
Termination of a contractual employee citing indiscipline and negligence without a proper inquiry violates Article 311(2) and the principles of natural justice, rendering the termination invalid.
The court upheld the termination of a contractual employee as valid, emphasizing that rights are governed by the contract terms, and principles of natural justice do not apply in the same manner to c....
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