IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
ARUN MONGA, J.
Praveen Arora S/o Shri Bhagwan Das - Appellant
Versus
Capital Small Finance Bank Ltd. - Respondent
S.B. Civil Misc. Appeal No. 1214/2025
Decided on : 02-05-2025
(A) Civil Procedure Code, 1908 - Order 39 Rules 1 and 2 - Dismissal of application for interim injunction - Appellant sought to restrain bank from terminating services and to direct payment of salary post-resignation - Court found no prima facie case, balance of convenience, or irreparable injury - Dismissal upheld as appellant's claims were based on unilateral contract terms and lack of bona fide intent. (Paras 1, 6, 7, 9, 10, 11, 12, 13)
(B) Employment Law - Principles of natural justice - Court noted that the appellant's prolonged absence without adequate justification undermined his claim of arbitrary treatment by the bank. (Paras 7, 11)
Facts of the case:
The appellant was employed as Assistant Vice President at the bank and sought relief against termination and adverse remarks after resigning due to his son's illness. The bank did not formally accept the resignation and issued notices for his return. (Paras 1.1, 2.1, 2.2)
Findings of Court:
The trial court found no sufficient ground for interim relief, noting the appellant's failure to establish a prima facie case and that the relief sought mirrored the final claim. (Paras 4, 7, 12)
Issues: The main issues included whether the appellant's claims of arbitrariness were valid and if the trial court erred in dismissing the application for interim relief. (Paras 6, 8)
Ratio Decidendi: The court ruled that the appellant's acceptance of the employment contract terms, including the unilateral termination clause, precluded his claims of arbitrariness, and his absence from duty lacked bona fide intent. (Paras 9, 10, 11)
Result: Appeal dismissed.
ORDER :
ARUN MONGA, J.
1. The appellant-plaintiff is before this Court against the order dated 17.02.2025 passed by the learned Additional District Judge No.2, Sriganganagar in Civil Misc. Case No.25/2024(CIS No.68/2024), vide which his application under Order 39 Rules 1 and 2 read with Section 151 of CPC was dismissed.
1.1. The appellant filed a suit seeking permanent and mandatory injunctions against the defendant bank, along with interim relief, primarily to restrain the bank from terminating his services or making adverse remarks in his employment record, and to direct payment of salary for three months post-resignation. He also sought issuance of requisite employment documents including the relieving letter, NOC, and experience certificate.
2. Facts first. The appellant was appointed as Assistant Vice President–Branch Head at the defendant’s Sri Ganganagar branch pursuant to an offer letter dated 11.10.2021, which he accepted. He joined duties on 12.01.2022 and was consistently rated as a satisfactory performer, having received a performance rating of 4.5 out of 5 in March 2023, a salary increment of Rs.10,500, and a reward tour to Thailand. The branch under his leadership was awarded Rs.4,66,000 as an incentive.
2.1. On 01.04.2024, the appellant’s minor son fell critically ill and required continued medical treatment in Sri Ganganagar. Despite repeated representations requesting retention at the current posting due to his son’s medical needs, the appellant was transferred to Lalheri/Khanna Mandi, Punjab on 04.04.2024. Unable to relocate, the appellant tendered his resignation on 03.05.2024 with a request for immediate acceptance and payment of three months’ salary in lieu of notice, in accordance with the terms of the offer letter.
2.2. The bank did not formally accept or reject the resignation. Instead, it issued communications dated 26.06.2024 and 14.07.2024 instructing the appellant to report to the new place of posting, failing which disciplinary proceedings would be initiated. The appellant was also denied release documents and employment credentials. A legal notice dated 14.07.2024 sent by the appellant remained unanswered.
2.3. The appellant alleged that the bank's refusal to relieve him from duties or to accept his resignation was arbitrary and in violation of principles of natural justice. It was further contended that Clause 12 of the offer letter was unilateral, permitting termination by the bank upon three months’ notice or salary in lieu, but not affording the same right to the employee, rendering the clause inequitable and illegal.
3. The bank, in reply, denied the allegations, asserting that the appellant had accepted all employment terms, including Clause 12. It claimed the performance rewards were due to collective branch efforts and referred to a prior complaint of misconduct filed with the RBI in August 2023. The bank further submitted that the appellant had not officially informed it of his son’s condition nor furnished supporting documentation. After being granted 20 days of leave, the appellant allegedly remained absent without intimation, warranting disciplinary action. The resignation was also stated to be in contravention of Clause 12 as it lacked the required notice period.
4. Upon hearing both parties, the Trial Court found no sufficient ground to grant interim relief and dismissed the injunction application. Aggrieved by said rejection, the present appeal has been preferred.
5. In the aforesaid backdrop, I have heard learned counsel for the appellant and gone through the case file.
6. Learned counsel for the appellant, inter alia, argues that the learned Trial Court erred in rejecting the appellant's application for a temporary injunction by accepting the respondent's version of facts without fair consideration. The learned trial Court overlooked the arbitrary nature of the appellant’s employment contract, particularly Clause 12, which allows for unilateral termination. The appellant's personal circumsta
AI
The court upheld the dismissal of the appellant's application for interim relief, emphasizing the lack of a prima facie case and the binding nature of the employment contract terms accepted by the ap....
Termination without due process violates principles of natural justice; reinstatement not justified in absence of misconduct.
Interim injunctions cannot be granted if they effectively provide the main relief sought in civil suits.
The acceptance of resignation was invalid due to non-timely action by the department and discriminatory practices in handling similar cases.
A contractual employee’s termination does not violate natural justice if conducted per the established contractual terms without the requirement for a hearing.
A suit for damages due to wrongful termination must include a declaration of wrongful termination to be maintainable; reinstatement cannot be granted without such a request.
Termination of contractual employment must adhere to principles of natural justice, especially when allegations of misconduct are involved.
The main legal point established in the judgment is that a resignation is effective when it operates to terminate the employment, and the acceptance of a resignation is valid if it is voluntary and i....
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