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1994 Supreme(All) 473

HIGH COURT OF ALLAHABAD
N.L.Ganguly
G S ASTHANA
Versus
U P TEXTILE CORPORATION LTD
Decided On : 29 July 1994
Civil Misc. Writ Petition No. 5745 of 1985

Advocates Appeared:
M.P.SHARMA,

A permanent employee cannot be terminated without a valid reason, and discrimination against an employee based on seniority is prohibited.

Headnote:

EMPLOYMENT - TERMINATION - PERMANENT EMPLOYEE - WRONGFUL TERMINATION - REINSTATEMENT WITH BACK EMOLUMENTS.

Fact of the Case:

The petitioner, employed as a Junior Engineer in U. P. Textile Corporation Ltd., challenged the termination of his services, arguing that he was a permanent employee and could not be terminated without a valid reason.

Finding of the Court:

The court found that the petitioner was a permanent employee, having completed the probationary period and receiving annual increments. The termination order was arbitrary and capricious, and the petitioner was discriminated against as junior employees were retained.

Issues: 1. Whether the petitioner was a permanent employee. 2. Whether the termination of the petitioner's services was valid.

Ratio Decidendi: 1. The court relied on the definition of "permanent post" in the corporation's bye-laws and the fact that the petitioner had completed the probationary period, which resulted in his confirmation in the post. 2. The court held that the termination order was illegal and unwarranted as the petitioner was a permanent employee and could not be terminated without a valid reason. The court also found that the petitioner was discriminated against as junior employees were retained.

Final Decision: The court allowed the writ petition, set aside the termination order, and directed the reinstatement of the petitioner with all back emoluments within 3 months.

N. L. GANGULY, J.

The petitioner was employed as a Junior Engineer in U. P. Textile Corporation Ltd. , Kanpur in 1982 the petitioner was given appointment on a consolidated salary of Rs. 550 p. m. plus residential accom modation. The post was, thereafter on 18-3-93 redesignated as Junior Engineer. Later the post was redesignated as Shift Engineer. It is said that the appointment of the petitioner as Junior Engineer which was again designa ted as Shift Engineer was a permanent post with the respondents. The respon dents have framed fundamental Bye-laws, 1978.

"rule 3 (ij) permanent post means a post carrying a definite rate (consolidated, fixed, time-scale or other kind) of pay and created as a permanent post by the Board or by an authority exercising delegated powers. "

It is also stated that the said post is permanent sanctioned post by the Board of Directors of respondent No. 1.

2. The petitioner said to have assumed charge on the post on 10-7-82 and therefore as per Rule 17 of the Recruitment and Promotion Bye-laws of 1978, the probation for direct recruitment as provided is for two years proba tion commencing from the date on which he assumed charge on the post. As per Rule 17 of the Recruitment and Promotion Bye-laws of 1978, the com petent authority had the discretion of extending the period of probation for one year only. Rule 19 of the said bye-laws provides that the petitioner shall be confirmed on his post at the end of the original or extended period of probations if the appointing authority is satisfied upon the report of the supervisor/officer or otherwise satisfied that the Probationer has made due use of his opportunities of service, has completed successfully such training as may have been prescribed and is otherwise fit for confirmation.

3. The petitioner stated and the fact is not denied that the post of Junior Engineer redesignated as Shift Engineer do not require any training. Since petitioner completed probationary period on 10-7-84, which was not extended by the respondents under the proviso to Rule 17 of the Bye-laws, the petitioner shall be deemed to have confirmed on the post of Junior Engi neer/shift Engineer at the end of the probationary period.

4. The petitioner stated to have received annual increment other than the name at the stage of efficiency bar of the petitioner was required to be granted upon completion of each year of satisfactory service and accordingly respondent No. 1 was granted annual increment of Rs. 50 and also Rs. 50 on rationalisation totalling to Rs. 100 w. e. f. 1-10-83. Further increment of Rs. 100 p. m. was granted w. e. f. 1- 10-84 and the pay respectively at the rate of Rs. 650 and Rs. 750 per month.

5. The petitioners service was terminated by the order dated 21/25-2-86, a copy of the same has been annexed as Annexure-5 with the writ petition. The petitioner has categorically stated that the department also deducted General Provident Fund from the pay of the petitioner and a good some has been deducted already from his salary as G. P. F.

6. The petitioner challenged the order of termination on two grounds. Firstly, that the order dated 21/25-2-86 is an arbitrary, capricious and passed under colourable exercise of power of the respondents. The petitioner being confirmed employee, could not be terminated by giving one months notice as he had the right to hold the post. The petitioners thirdly submitted that the post of Junior Engineer/shift Engineer is a permanent post which has not been abolished and there is no justification or administrative reason to terminate the petitioners services, as was done.

7. The petitioner also submitted that me petitioner being the permanent staff, whose conduct was satisfactory and good throughout, was arbitrarily removed while the persons junior to him were retained. Thus, there was violation of Rule of first com-last-go.

8. Counter and rejoinder affidavits have been exchanged. Perusal of the appointment letter Annexure CA 1 with the counter-














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