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2025 Supreme(Jhk) 2268

2025:JHHC:36057
IN THE HIGH COURT OF JHARKHAND AT RANCHI
SRI ANANDA SEN, J.
Ravi Kumar, son of Late Jaleshwar Prasad Singh – Appellant
Versus
The State of Jharkhand – Respondent
W.P.(S) No.2405 of 2021
Decided on : 02-12-2025
Advocates Appeared : 
For the Appellant : Mr. Brijnandan Kumar, Advocate
For the Respondent : Mr. Anish Kumar Mishra, AC to Sr. SC-I

Contractual employees are entitled to the protection of natural justice during termination; this requires at minimum the issuance of a show cause notice and a meaningful opportunity to respond to allegations of misconduct. Once these procedures are correctly followed and misconduct is substantiated, the termination remains valid.

Headnote:(A) Administrative Law - Principles of Natural Justice - Contractual employment - Termination of service - Even when terminating a contractual employee, the principles of natural justice must be strictly followed, ensuring that the employee is provided with a show cause notice and an opportunity to be heard regarding any allegations of misconduct, especially if the termination is stigmatic in nature. (Paras 9, 10, 11)

(B) Service Law - Misconduct - Financial irregularities - Where an administrative committee is tasked with evaluating a response to a show cause notice and the misconduct is found to be substantiated, the court is generally reluctant to interfere with the termination order if procedural fairness has been maintained and the principles of natural justice were observed. (Paras 8, 12, 13)

Facts of the case:
The petitioner, a contracted engineer, challenged the termination of their service following allegations of financial misappropriation. The authorities had issued a memorandum requiring the petitioner to show cause against the termination of their contract. A committee was subsequently constituted to consider the petitioner's response. Upon finding the allegations of financial misconduct to be substantiated, the authorities issued the final termination order. The petitioner argued that the process was arbitrary and violated natural justice, while the respondents maintained that the standard procedure of notice and opportunity to explain had been duly followed.

Findings of Court:
The court determined that the requirements of natural justice were met because the petitioner had been issued a notice to show cause, had submitted a detailed response, and that response had been evaluated by a competent committee before the final decision was reached. Since the allegations of financial impropriety were proven and the appropriate procedural safeguards were observed, the court found no valid grounds to intervene in the administrative outcome.

Issues: Whether the termination of a contractual employee without conducting a full formal inquiry, but following a show cause procedure, satisfies the principles of natural justice and under what circumstances an appellate court should interfere with the resulting termination order.

Ratio Decidendi: The termination of a contractual appointee on the grounds of misconduct requires compliance with the principles of natural justice. Providing a notice to show cause and allowing for a detailed reply that is subsequently reviewed by an authority constitutes sufficient compliance with these principles, rendering the termination lawful when the alleged misconduct is objectively verified.

Result: Writ petition dismissed.

Table of Content
1. prayer for writ of certiorari and mandamus regarding termination. (Para 1 , 2)
2. conflict between natural justice and proved misconduct allegations. (Para 3 , 4)
3. context of contractual service termination and investigative procedures. (Para 5 , 6 , 7 , 8)
4. requirement of natural justice in contract employee termination. (Para 9 , 10)
5. validation of termination following due process of hearing. (Para 11 , 12 , 13 , 14)

JUDGMENT

SRI ANANDA SEN, J.

1. Heard learned counsel representing the petitioner and learned counsel representing the respondents, at length.

2. By filing this writ petition, the petitioner has prayed for writ of certiorari to quash the Letter as contained in Memo No.56 dated 13.02.2020, whereby the petitioner was stopped from working as Junior Engineer and was asked to show cause as to why not his contract be terminated.

2.1. The petitioner has further prayed to quash the Memo No.110 dated 23.03.2020, whereby the contractual service of the petitioner was terminated.

2.2. The petitioner has also prayed for mandamus upon the respondents to reinstate the services of the petitioner.

3. Learned counsel representing the petitioner submits that in utter violation of principles of natural justice, the service contract of the petitioner was terminated. He admits that though the petitioner is a contractual employee, yet principles of natural justice have to be followed, as mandated by the Hon’ble Supreme Court. It is his contention that the allegation levelled against the petitioner is vague and omnibus and the same cannot be a ground to terminate the services of the petitioner.

4. Learned counsel representing the respondent – State submits that the petitioner is a habitual offender, as there are two criminal cases pending against the petitioner, which are of defalcation. He submits that it was found that the petitioner has defalcated funds of MGNREGA and thus after following the procedure of law and giving opportunity to the petitioner, his contract of service was terminated. He submits that opportunity of hearing was given to the petitioner, as a detailed show cause notice was issued, to which the petitioner replied.

5. After hearing the parties, I find that the petitioner is a contractual appointee. He was appointed as a Junior Engineer on 07.08.2012 on contractual basis. By the impugned letter dated 13.02.2020, the petitioner was stopped from performing his duty and he was show caused as to why not his service contract be terminated on the basis of the allegation made against him.

6. The allegation against the petitioner is of defalcation. It has been alleged in the letter dated 13.02.2020 that the petitioner has defalcated a sum of Rs.73,53,312/-, from the Department, by preparing a duplicate voucher of Shri Vikas Saha. Further, when Shri Saha asked for the balance of Rs.49,58,006/-, for the material supplied by him, the petitioner threatened him and denied to make any payment.

7. From Annexure-4, which is one of the impugned letters, it is clear that the details of misconduct were brought to the notice of the petitioner. Further, from the aforesaid notice, I find that there are two criminal cases pending against the petitioner. One is Hiranpur P.S. Case No.09/2018 and another is Hiranpur P.S. Case No.04/2020. It has also been brought to the notice that when Hiranpur P.S. Case No.09/2018, for defalcation was instituted against the petitioner, on the request of the petitioner and taking sympathetic view, after obtaining a bond from the petitioner that he will work properly, he was reinstated. It is also clear that after the petitioner was reinstated, he again started defalcating and misutilizing the funds, for which Hiranpur P.S. Case No.04/2020 was instituted. This impugned letter dated 13.02.2020 is in fact the notice to show cause to the petitioner as to why not his service be terminated.

8. After receiving the said notice, the petitioner gave a detailed reply. The reply of the petitioner was considered

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