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1962 Supreme(Ori) 89

IN THE HIGH COURT OF ORISSA
Sinha, Subba Rao, Shah, Mudholkar, Ayyangar, JJ.
MADAN GOPAL - APPELLANT
Versus
THE STATE OF PUNJAB AND OTHERS - RESPONDENT
Civil appeal No. 329 of 1960
Decided On : 27-08-1962

Advocates Appeared:
N.N. Keswani, for the Appellant; N.S. Bindra and P.D. Menon, for the Respondent

The termination of a temporary employee's employment following an enquiry into allegations of misconduct amounts to a punishment and attracts the protection of Article 311(2) of the Constitution.

Headnote:

ARTICLE 311 - PUBLIC SERVANT - TERMINATION OF EMPLOYMENT - ENQUIRY - REASONABLE OPPORTUNITY - STIGMA - PROTECTION OF ARTICLE 311(2) - TEMPORARY EMPLOYEE.

Fact of the Case:

The appellant, a temporary inspector of consolidation, was served with a charge-sheet alleging that he had received illegal gratification. An enquiry was held and the appellant was found guilty. The Deputy Commissioner ordered the termination of his services without giving him a reasonable opportunity to show cause against the order. The appellant challenged the order on the ground that it violated Article 311(2) of the Constitution.

Finding of the Court:

The court held that the termination of the appellant's employment amounted to a punishment as it cast a stigma on his future career. Therefore, the protection of Article 311(2) of the Constitution was attracted and the appellant was entitled to a reasonable opportunity to show cause against the order.

Issues: Whether the termination of the appellant's employment amounted to a punishment and whether he was entitled to the protection of Article 311(2) of the Constitution.

Ratio Decidendi: The court held that the termination of the appellant's employment amounted to a punishment as it cast a stigma on his future career. Therefore, the protection of Article 311(2) of the Constitution was attracted and the appellant was entitled to a reasonable opportunity to show cause against the order. The court relied on the judgment in The State of Bihar Vs. Gopi Kishore Prasad, where it was held that if an employer chooses to hold an enquiry into an employee's alleged misconduct or inefficiency, the termination of service is by way of punishment and the employee is entitled to the protection of Article 311(2) of the Constitution.

Final Decision: The appeal was allowed and the order passed by the High Court was set aside. The order passed by Mr. Justice Bishan Narain was restored with costs in the Supreme Court and the High Court.

JUDGMENT :

Shah, J. - The Appellant Madan Gopal was appointed an Inspector of Consolidation by order dated October 5, 1953 of the Settlement Commissioner of the Patiala and East Punjab States Union. The appointment was "on temporary basis and terminable with one month's notice." On February 5, 1955, the Appellant was served with a charge-sheet by the Settlement Officer, Bhatinda that he (the Appellant) had received Rs. 150/- as illegal gratification from one Darbara Singh and had demanded Rs. 30/- as illegal gratification from one Ude Singh. The Appellant was called upon to show cause why disciplinary action should not be taken against him if the allegations in the charge-sheet were proved. The Appellant submitted his explanation to the charge-sheet. On February 22, 1955, the Settlement Officer submitted his report to the Deputy Commissioner Bhatinda, that the charge relating to receipt of illegal gratification from Darbara Singh was proved. The Deputy Commissioner by order dated March 17, 1955 ordered that the services of Madan Gopal Inspector be terminated forthwith and that in lieu of notice he will get one-month's pay as required by the Rules.

2. The Appellant requested the Deputy Commissioner to review the order, and also submitted a memorial to the Minister for Revenue affairs. Having failed to obtain relief, the Appellant applied to the High Court of Pepsu for a writ under Article 226 of the Constitution quashing the order dated March 17, 1955 on the ground inter alia that the order of dismissal from service was in, contravention of Article 311 of the Constitution as no reasonable opportunity to show cause against the order of dismissal was at all given. He also challenged the authority of the Settlement Officer to hold the enquiry and submitted that the procedure followed by that Officer in making the enquiry was irregular. The petition was transferred to the High Court of Punjab on the reorganization of the State of Punjab.

Bishan Narain, J.

3. who heard the application issued the writ prayed for, because, in his view, the order of termination of employment was in the nature of an order of punishment and as the provisions of Article 311(2) had not been complied with by the Enquiry Officer, the Deputy Commissioner or the Settlement Commissioner, the order was invalid. In appeal under the Letters Patent, the order was reversed by a Division Bench of the High Court. The High Court held that the Appellant was a temporary servant and had no right to hold the post he was occupying and by the impugned order the Appellant was not dismissed or removed from service, but his employment was terminated in exercise of authority reserved under the terms of employment and no penalty was imposed upon the Appellant.

4. The Appellant was a temporary employee, and his employment was liable to be terminated by notice of one month without assigning any reason. The Deputy Commissioner however did not act in exercise of this authority: the Appellant was served with a charge-sheet setting out his misdemeanour an enquiry was held in respect of the alleged misdemeanour and his employment was terminated because in the view of the Settlement Officer-with which view the Deputy Commissioner agreed the misdemeanour was proved. Such a termination amounted to casting a "stigma affecting his future career". In The State of Bihar Vs. Gopi Kishore Prasad the learned Chief Justice in dealing with cases of termination of service or discharge of public servant on probation set out five propositions of which the 3rd is enunciated thus:

But, if instead of terminating such a person's service without any enquiry, the employer chooses to hold an enquiry into his alleged misconduct, or inefficiency, or for some similar reason, the termination of service is by way of punishment, because it puts a stigma on his competence and thus affects his future career. In such a case, he is entitled to the protection of Article 311(2) of the Constitution.

5. It is true that in that c




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