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2026 Supreme(Gau) 741

IN THE GAUHATI HIGH COURT (THE HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
PRINCIPAL SEAT AT GUWAHATI
ROBIN PHUKAN, J.
Smt. Sonaswari Ramchiary, W/o Shri Hemanta Sarma -  Petitioner
Versus
The State of Assam, Represented by the Commissioner & Secretary to the Government of Assam, Education (Elementary) Department –  Respondent
WP(C) No. 3529 of 2024
Decided On : 23-03-2026

Advocates Appeared:
For the Petitioner: Mr. R. Dhar
For the Respondent: Ms. B. Deka, SC, Edu., Ms. B. Bora, SC, BTC.

The doctrine of 'no work, no pay' is inapplicable where an employee is prevented from performing duties by an illegal act of the employer. Furthermore, undertakings or contracts obtained under conditions of extreme economic distress or unequal bargaining power are unconscionable and legally void.

Headnote:(A) Constitution of India - Article 226 - Service jurisprudence - Illegal termination - Back wages - Doctrine of 'No work, no pay' - Applicability - Doctrine of 'Quantum Meruit' - Labour contract - Unequal bargaining power - An employee is entitled to salary and service benefits if prevented from discharging duties due to an illegal act of the employer; the doctrine of 'no work, no pay' is inapplicable where the employee was willing to work but prevented by an illegal termination order. (Paras 11, 13.2)

(B) Contractual obligations - Unconscionable contract - Undue influence - Where a party is in a position of economic distress or compulsion, any forced undertaking or contract containing unfair terms shall be declared void by the court as the parties lack equal bargaining power. (Paras 16.2, 17)

Facts of the case:
The petitioner was appointed as a teacher and subsequently terminated without following appropriate legal procedures. The termination was later found to be illegal, and the petitioner was reinstated but with prospective effect, denying all past salary and seniority. Being in financial distress due to medical exigencies in the family, the petitioner signed an undertaking accepting a lower-paying alternative position to secure immediate income, which was subsequently challenged in court.

Findings of Court:
The court found the termination to be illegal and arbitrary, holding that the state cannot benefit from its own wrongdoing by denying back wages for the period the employee was prevented from working. Furthermore, the court held that the undertaking regarding the new position was signed under duress and unequal bargaining power, rendering it an unconscionable covenant.

Issues: The main issues were whether an employee is entitled to retrospective service benefits following an illegal termination and whether an undertaking coercively obtained by the employer due to the employee's financial exigencies is legally enforceable.

Ratio Decidendi: The principle of 'no work, no pay' applies only where an individual voluntarily abstains from duty, not where they are barred by illegal administrative action. Contracts or undertakings signed by an employee under extreme financial duress, where bargaining power is fundamentally unequal, are void and cannot be enforced to deny legitimate legal entitlements.

Result: Petition allowed; the employee's status was restored to the initial position with all service benefits and arrears, to be granted within a stipulated period.

Table of Content
1. procedural background and factual context of erroneous termination. (Para 1 , 2 , 3)
2. parties' contradictory stances on recruitment norms and service entitlements. (Para 4 , 5 , 6 , 7)
3. invalidity of termination bars no-work-no-pay principle. (Para 8 , 9 , 10 , 11 , 12)
4. quantum meruit entitlement for work performed under disputed conditions. (Para 13 , 14 , 15)
5. unconscionable contracts void due to unequal bargaining power. (Para 16 , 17)
6. judicial mandate for full reinstatement and back salary arrears. (Para 18 , 19)

ORDER :

ROBIN PHUKAN, J.

Heard Mr. R. Dhar, learned counsel for the petitioner. Also heard Ms. B. Deka, learned standing counsel, Education (Elementary) Department, appearing for the respondent Nos.1 and 4 and Ms. B. Bora, learned standing counsel, BTC, appearing for the respondent Nos.3, 5, 6 and 7. None appears for the respondent No.2.

2. In this petition, under Article 226 of the Constitution of India, the petitioner, namely, Smt. Sonaswari Ramchiary has prayed for issuing a direction to the respondent authorities to join in her post as Assistant Teacher in Brahmapur Bilai L.P. School, in terms of the order dated 14.07.2022 with retrospective effect i.e. from the date of her reinstatement in service vide order dated 22.09.2015.

The Factual Matrix:-

3. The background facts leading to filing of the present petition are briefly stated as under:-

“The petitioner was initially appointed as Stipendiary Teacher vide order dated 04.12.1999. Thereafter, the petitioner had undergone Primary Teacher‟s Training and after completion of the training, she was regularized and brought to the regular scale of pay w.e.f. 12.03.2003. She continued in the post of Assistant Teacher in Musalpur Jr. Basic L.P. School. Thereafter, suddenly vide order dated 23.06.2009 without giving any notice she was terminated from service. Subsequently, the respondent authorities have found after verification of the record that the petitioner‟s termination was illegal and then, the respondent authorities vide order dated 22.09.2015 reinstated the petitioner in service. The petitioner then assumes charge in terms of the said order dated 22.09.2015 and discharged her duties, but, no salary was paid despite several requests to the authorities. Then, being aggrieved, the petitioner along with 91 others similarly situated teachers have filed a writ petition, being WP(C) No.3273/2017. Thereafter, the respondent No.5 had issued an order dated 14.07.2022 by which the service of the petitioner as Assistant Teacher, Mushalpur Jr. Basic School is regularized as Assistant Teacher vice Kameswar Ramchiary, expired and posted at Brahmapur Bilai L.P. School and she joined on 18.07.2022. But, after 5 days of discharge of her duties, she was not allowed to attend her duties and being aggrieved, the petitioner approached this Court by filing the present petition.”

4. The respondent Nos.3, 5, 6 and 7 filed their affidavit-in-opposition, wherein it is admitted that the petitioner was appointed as a Stipendiary Teacher at Mushalpur Jr. Basic School vide order dated 04.12.1999 against a converted post sanctioned vide Government creation dated 16.11.1991 with a fixed stipend of Rs.900/- per month, on the condition that the said appointment was subject to successful completion of prescribed training and only upon such condition would her appointment be considered for regular scale of pay and then the petitioner joined on 06.12.1999 and the said appointment was not in accordance with the norms and procedure of the Education Department, particularly due to absence of proper advertisement, selection and approval and it is also admitted that the petitioner was released to attend Junior Basic Training as per order dated 17.01.2002 and thereafter, the petitioner has passed the one year in-service Primary Teacher‟s Training and secured „B‟ Grade as per the certificate dated 09.04.2003 issued by the Basic Training Centre, Kokrajhar and her service book was opened a

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