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2023 Supreme(P&H) 2325

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
JAGMOHAN BANSAL, J.
Shrinivas Sakharam Dudhgaonkar – Petitioner
Versus
Union of India & Ors. – Respondents
CWP-19997 of 2023 AND CWP-19951 of 2023
Decided On : 18-10-2023

Advocates Appeared:
Mr. Ravinder Malik, Advocate; For the Petitioner
Mr. Vipul Aggarwal, Senior Panel Counsel, for Union of India-respondent No.1
Mr. A.S. Virk, Advocate for Respondent Nos.2 and 3

Court ruled that contractual employees have no right to challenge terms post-acceptance and can be terminated without inquiry based on performance during contract period.

Headnote:(A) Constitution of India - Articles 226 and 227 - Termination of employment - Petitioner assailed termination order without inquiry claiming violation of principles of natural justice - Court finds termination permissible as per terms allowing one-month notice; hybrid appointment system contrary to First and 2023 Statutes - Conditions of advertisement and appointment letter aligned; petitioner precluded from disputing terms post-appointment. (Paras 4, 11, 15, 21)

(B) Service Jurisprudence - Distinction between simpliciter termination and punitive termination - Court rules that termination without inquiry is valid for contractual employees where unsatisfactory performance justifies dismissal. (Paras 15, 20)

Facts of the case:
Petitioner, appointed on contract basis as Senior Designer, challenged termination without inquiry. Respondent maintained authority to terminate based on performance complaints.

Findings of Court:
No provisions allowing hybrid appointments; terms of appointment aligned with advertisement; precluded from challenging after acceptance of terms.

Issues: I. Legality of advertisement terms against statutory provisions? II. Ability of petitioner to dispute post-appointment terms? III. Justification for termination without inquiry?

Ratio Decidendi: Court held that termination procedure followed was consistent with contractual obligations; contractual employees cannot challenge terms post-acceptance; absence of inquiry unnecessary for non-punitive dismissals during contract period.

Result: Petitions disposed of, termination upheld.

Table of Content
1. contractual arrangements permit termination without inquiry. (Para 1)
2. petitioner's employment details and termination. (Para 2 , 3)
3. arguments about the legality of appointment and termination. (Para 4 , 5)
4. judicial scrutiny of appointment terms. (Para 6 , 8 , 12 , 13)
5. employment terms derived from advertisements must align with statutes. (Para 7 , 9)
6. participating in a selection process confirms acceptance of its terms. (Para 10 , 11 , 14)
7. nature of termination (simpliciter vs. punitive). (Para 15 , 18 , 19)
8. final ruling on the petitioner's termination and appointment. (Para 20 , 21 , 22)

JUDGMENT

Jagmohan Bansal, J. (Oral)

By this common order, both the petitions are disposed of as issues involved in both the petitions are interconnected. For the sake of convenience and with the consent of both sides, facts are borrowed from CWP-19997-2023.

2. The petitioner through instant petition under Articles 226/227 of the Constitution of India is seeking setting aside of order dated 05.09.2023 (Annexure P-20) whereby petitioner has been terminated and order dated 05.09.2023 (Annexure P-21) whereby petitioner has been relieved.

3. The brief facts of the case which are necessary for the adjudication of present petitions are that the petitioner vide appointment letter dated 29.12.2021 (Annexure P-1) came to be appointed on the post of Associate Senior Designer in communication design discipline with respondent-National Institute of Design (for short 'institute').

3.1 The respondent-institute issued an advertisement dated 03.03.2022 (Annexure P-2) inviting applications from eligible and competent professionals for the post of Senior Designer in three major disciplines, namely, Industrial Design, Communication Design and Textile & Apparel Design. The petitioner applied for the advertised post and respondent-institute on the basis of interview selected him on the post of Senior Designer (Direct Recruitment) in the Pay Level-12 (78800-209200).

3.2 The respondent issued appointment letter dated 05.09.2022 (Annexure P-5). In the appointment letter, it was mentioned that the petitioner would be initially appointed on contract basis for two years and after two years, his performance would be reconsidered and if he is found satisfactory, he would have to undergo probation period of one year before his confirmation.

3.3 The petitioner vide e-mail dated 06.09.2022 sent his consent and thereafter signed appointment letter in token of his consent to terms and conditions of the appointment letter. The petitioner joined on the advertised post on 09.09.2022. The petitioner was assigned duty of Activity Chairperson (Edu.). The respondent-institute found the services of the petitioner unsatisfactory and on the basis of information collected at internal level, formed an opinion that petitioner deserves to be terminated. The respondent-institute terminated the petitioner without conducting formal inquiry in terms of show cause notice followed by opportunity of hearing. The respondent-institute did not conduct inquiry, forming an opinion that petitioner was a contractual employee and as per terms and conditions of the appointment letter, he can be terminated without inquiry subject to one month's notice or one month's salary in lieu of notice.

3.4 The petitioner is assailing terms and conditions of advertisement, appointment letter and termination order. As per petitioner, terms and conditions of the advertisement were contrary to the Statute. Termination of the petitioner is illegal and bad in the eye of law.

4. Learned counsel for the petitioner inter alia contends that advertisement was contrary to First Statute of the National Institute of Design, Ahmadabad (for short 'First Statute') as made applicable to N.I.D. Kurukshetra. Clause 30 of the First Statute provides for classification of the members of the staff of the institute as well as their appointments. As per sub-clause (2) of Clause 30, an employee either may be regul

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