1980 Supreme(Mad) 210
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE M M ISMAIL
K. Palanikumar - Appellant
Versus
Indian Bank and Another - Respondent
Case No : W.A. No. 165 of 1980
Decided On : 22 April 1980
A bank can terminate the services of a probationary employee without assigning any reason if the employee has suppressed material information in the application form or service joining report.
Headnote:
EMPLOYMENT LAW - TERMINATION OF SERVICE - INDIAN BANK - SUPPRESSION OF INFORMATION - VALIDITY OF TERMINATION - CLAUSE 3 OF TERMS AND CONDITIONS OF APPOINTMENT - REASONABLENESS - MATERIALITY OF SUPPRESSION - VIOLATION OF ARTICLES 14 TO 16 OF THE CONSTITUTION OF INDIA - PRINCIPLES OF NATURAL JUSTICE - PUNISHMENT WITHOUT HEARING.
Fact of the Case:
The appellant, a probationary clerk in the Indian Bank, was terminated from service for suppressing the fact that his brother was employed in the same bank. The appellant challenged the termination order, arguing that it was unreasonable, violative of Articles 14 to 16 of the Constitution, and principles of natural justice.
Finding of the Court:
The court held that the termination of service was valid and reasonable. The appellant had suppressed material information by not filling up the relevant columns in the application form and service joining report, and the bank had the right to terminate his services without assigning any reason under clause 3 of the terms and conditions of appointment.
Issues: 1. Whether the termination of service was unreasonable? 2. Whether the termination violated Articles 14 to 16 of the Constitution of India? 3. Whether the termination violated the principles of natural justice?
Ratio Decidendi: 1. The court held that the termination was not unreasonable as the appellant had suppressed material information by not filling up the relevant columns in the application form and service joining report. 2. The court held that there was no violation of Articles 14 to 16 of the Constitution as the appellant's case was not identical to that of the other three persons who were treated differently. 3. The court held that there was no violation of the principles of natural justice as the appellant had been given an opportunity to explain his conduct.
Final Decision: The appeal was dismissed.
M. M. ISMAIL, C.J.
This is an appeal against the order of Mohan, J., dated 6-3-1980 dismissing Writ Petition No. 2482 of 1979.
2. An advertisement appeared some time in December, 1977 in "The Hindu" calling for applications from candidates for appointment as Clerk/Shroff under the management of the Indian Bank. the appellant herein was one such applicant. Under column 6(h) of the application, the candidate was required to furnish the names of relatives, if any, working in the Indian Bank and the nature if relationship together with the name of the branch where they work. This column was left blank by the appellant in the application filed by him. The appellant, however, was appointed as a clerk by an order dated 15-11-1978, and he was called upon to fill up column 11 of the service joining report. That column was also required the appointee to give the name or names of relations, if any, in the service of the bank and the nature of his relationship with them. That column also left blank by the appellant herein. Subsequently, the Bank found out that the appellant's brother by name K. Rajagopalan was employed at the relevant time as an Officer in the Bank's Bombay Fort branch. In view of this, the Bank took the view that there was deliberate supression of particulars in the application form as well as in the service joining report and, therefore, the services of the appellant herein as probationer could be terminated. Consequently, on 14-5-79 the Bank passed the following order :
"As per clause 3 of the terms and conditions contained in the appointment order cited above, you are terminated from the services of our Bank forthwith.
Though our services can be terminated at the sole discretion of the Bank without assigning any reasons therefore we have to inform you that you secured appointment in our Bank by suppressing the fact that your brother Shri K. Rajagopalan is employed and is non working as an Officer in our Bombay Fort Branch at the time of your applying for a post In our Bank as well as on the date of your joining the Bank.You will be paid a month's salary in lieu of one month's notice by our Mount Road Branch.
It is this order that was challenged in the present writ petition.
3. We must in this context refer to clause 3 of the terms and conditions of appointment to which the order itself makes a reference. Clause 3 reads as follows :" *
You will be on probation with salary for a period of six months from the date of joining. Notwithstanding anything contained in this letter; your services are liable to be terminated at the sole discretion of the Bank even before the expiry of the probationary period without assigning any reason therefor, but with one month's notice or on payment of a month's salary and allowances in lieu of notice."
Obviously and avowedly the order was passed pursuant to this clause 3. If so, the Bank had a right to terminate the services of a probationer without assigning any reason whatever, but on payment of a month's salary which condition had been complied with in the present case. However, the learned counsel for the appellants contends that so long as the Bank has referred to a reason, namely suppression of the fact that his brother was in the service of the Bank at the relevant time, unless that reason can stand the test of reasonableness, the order of termination cannot be sustained. We are unable to accept this argument. Admittedly the appellant did not fill up the relevant columns at both the stages and thereby he suppressed the information. Learned counsel for the appellant contends that the appellant need supply the information only if he wanted to get the job on the strength of his brother being in the service of the Bank, but if he wanted to get the job on his own merit, he need not mention that particular fact. He failed to furnish information called for to be furnished by him both in the application and in the service joining report. We are unable to appreciate this argument for t