IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU VINOD CHATTERJI KOUL, J.
Punjab National Bank – Appellant
Versus
V K Gandotra – Respondent
CFA No. 08 of 2009
Decided on : 06-03-2025
(A) Specific Relief Act, 1963 - Section 41 - Employment Law - The trial court declared the dismissal of the plaintiff from the appellant bank as illegal and awarded damages, but the appellate court found the suit not maintainable as it did not seek a declaration of wrongful termination. (Paras 20, 70, 76)
(B) Employment Contract - The court emphasized that a contract of personal service is not enforceable under common law, and reinstatement cannot be granted without a specific prayer for it. (Paras 62, 72)
(C) Jurisdiction - The appellate court held that the trial court exceeded its jurisdiction by granting relief not sought by the plaintiff. (Paras 22, 76)
Facts of the case:
The plaintiff, an employee of the bank, claimed wrongful dismissal and sought damages of Rs. 12,00,000. The trial court ruled in his favor, but the bank appealed, arguing the suit was not maintainable.
Findings of Court:
The appellate court found the trial court's decree was beyond its jurisdiction and the suit was not maintainable as it did not seek a declaration of wrongful termination.
Issues: The main issues included whether the trial court could grant relief not sought by the plaintiff and the maintainability of the suit without a declaration of wrongful termination.
Ratio Decidendi: The appellate court ruled that the trial court's decision was flawed as it granted relief beyond what was requested, emphasizing that a suit for damages must include a declaration of wrongful termination to be maintainable.
Result: Appeal allowed; trial court's judgment set aside.
JUDGMENT :
1. Feeling aggrieved of the judgment and decree dated 13.09.2008 passed by Additional District Judge, Bank Cases, Jammu (for short Trial Court) whereby Trial Court while decreeing the suit of the plaintiff/respondent herein, has declared his dismissal from appellant-bank as illegal and plaintiff declared entitled to be reinstated as also entitled to damages, the appellant bank has preferred this civil first appeal.
2. The trial Court decree is challenged by the appellant-bank on the following grounds:-
(a) Impugned judgment and decree is bad both in law and on facts.
(b) Trial Court has proceeded on the assumption that the dismissal of the respondent was wrongful without there being any case of the respondent therefor. The suit was simpliciter recover of damages. The trial Court, unmindful of the frame of the suit which was simpliciter as suit for recovery, went to the extent of allowing reinstatement of the respondent not ever prayed for.
(c) The evidence has been misread and misappreciated by trial Court in decreeing the suit in favour of the respondent.
(d) The trail court has proceeded to deal with the matter on ill-founded compassion, non-existent records, unproved facts and in turn has omitted to take into account proven case of the appellant bank justifying the order of dismissal of the respondent.
(e) Many issues framed in the suit have gone undetermined or determination thereof is only a cosmetic one, whereas taking into account the pleadings, their determination was indispensable and which rather required a conscious determination to arrive at the rights of the parties conclusively.
3. As record would demonstrate, plaintiff/respondent filed a suit before the Trial Court, stating therein that he joined defendant-bank as an Accountant on 25.02.1970. After nine months, he was given a chance to officiate as a Manager of the New Bank of India Ltd., Jammu Branch, and was confirmed in the same capacity on 01.05.1971. In recognition of the efforts and efficient and smooth working of the branch, the defendant-bank was pleased to accord special cash reward/increments for promoting the interests of the bank by way of mobilising of deposits and making advances during the years 1971, 1972 and 1973. He also worked at the Srinagar Branch from September 1974 to 10th of February 1975, and during this period, he brought the working of the branch on smooth base set of the branch routine in the proper manner. He was driving a total sum of Rs. 1,944/- per month.
4. It was also the case of plaintiff before the Trial Court that in the month of December 1974, he was approached by Hindustan Commercial Bank Ltd., Kanpur, to work as an agent for the proposed new branch at Jammu. He was reluctant to leave his service in view of his past association. On 8 January 1975, he wrote a personal D.O. letter to the Chairman of the defendant bank, requesting him to make him in charge of both the branches at Jammu and Srinagar, in accordance with the discussion they had at Delhi. After waiting for a considerable time and having received no reply from the defendant, the plaintiff resigned from the service of the bank on 28.01.1975, and sent the resignation letter to the defendant, thereby giving one month’s notice as required according to the service conditions of the Bank.
5. It was also stated by plaintiff in his plaint that appointment letter issued by the defendant in his favour stipulated that either party could terminate employment by giving one month’s notice to quit. No other written conditions of the service were conveyed to the plaintiff nor do they exist. As he got a better offer, he resigned from the service and wrote a letter of resignation by asking them to treat it as notice and he be relieved from service. The period of one month expired on or about 1st of March 1975.
6. The defendant-bank through its General Manager vide letter no. STF/TRF/1611 dated 04.02.1975 directed the plaintiff to hand over the charge of Srinagar Branch to Sh. J.M. T
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.
Civil courts have jurisdiction over wrongful termination claims in private employment, but reinstatement cannot be mandated if employment is governed by private contractual rules. Remedies may includ....
In private employment, employees do not have an inherent right to continue in service till a specified age, and the employer has the discretion to terminate the service as per the terms of the employ....
Point of Law : Reliefs of reinstatement and backwages could not be sought in a civil proceedings, applies in the context of a case where the provisions of the ID Act were applicable.
Reliefs of reinstatement and backwages could not be sought in a civil proceedings, applies in the context of a case where the provisions of the ID Act were applicable.
Termination of service – Retrenchment – Workman was proved to have worked continuously on daily wage basis for more than five years.
A resignation accepted unconditionally cannot be withdrawn unilaterally, and a suit for declaration regarding continuation in service is not maintainable if the employee is not classified as a workma....
The court ruled that employees at the pleasure of their employer cannot claim reinstatement through writs, as damages for wrongful dismissal are the appropriate remedy.
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