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2025 Supreme(MP) 967

IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR
Ashish Shroti, J.
Jitendra Shakya And Others - Petitioners
Versus
The State Of Madhya Pradesh And Others – Respondents
Writ Petition No. 8290 of 2023, Writ Petition No. 8306 of 2023, Writ Petition No. 8889 of 2023, Writ Petition No. 9305 of 2023, Writ Petition No. 9368 of 2023, Writ Petition No. 12376 of 2023, Writ Petition No. 14576 of 2023, Writ Petition No. 15796 of 2023, Writ Petition No. 16735 of 2023, Writ Petition No. 18104 of 2023
Decided On : 23-09-02025

Advocates Appeared:
For the Petitioner:Shri M.P.S. Raghuvanshi learned Senior Counsel with Shri Dharmendra Singh Raghuwanshi- Advocate
For the Respondent:Shri N.K. Gupta - Govt. Advocate, Shri Alok Kumar Sharma- Advocate

Appointments made without adhering to mandatory statutory requirements, such as sanctioned staffing strength and government approval, are void ab initio. In such cases, the principle of natural justice regarding pre-termination hearings does not apply, as the initial engagement essentially lacks legal legitimacy from the beginning.

Headnote:(A) Municipalities Act - Sections 86, 87, 88, 94, and 326 - Appointment of contractual personnel - Requirement of prior government permission - Appointments made without sanctioned staffing strength and mandatory approval from the state government are void ab initio. (Paras 2-5, 19, 22)

(B) Principles of Natural Justice - Audi alteram partem - Breach of natural justice rules - Where an appointment is inherently illegal for want of mandatory statutory compliance, the failure to provide a pre-termination opportunity of hearing is not a sufficient ground to vitiate the termination. (Paras 23-26)

(C) Statutory Authority - Oversight powers - Power of the government to order an inquiry into local administration - Administrative actions taken following specific directions from a superior oversight body, consistent with statutory mandates, are valid. (Paras 29-30)

Facts of the case:
Local municipal authorities engaged numerous daily-wage and contractual workers without adherence to sanctioned staffing patterns or mandatory approval from the state government. An official enquiry revealed significant financial irregularities and non-compliance with the required recruitment procedures. Challenging the subsequent termination of their services, the petitioners alleged violation of natural justice and improper exercise of authority by the officials directing the dismissal.

Findings of Court:
The appointments were deemed illegal from their inception, having been made without authorization, disregarding budgetary constraints, and ignoring statutory recruitment processes. The court held that the absence of a pre-termination hearing does not invalidate the termination where the initial engagement was fundamentally flawed and legally unsustainable.

Issues: Whether the termination of contractual employees without a prior opportunity of hearing is legally sustainable; whether the appointments were made in accordance with the governing statute; and whether the oversight directed by the state authorities fell within their statutory jurisdiction.

Ratio Decidendi: Appointments made in flagrant violation of statutory provisions regarding sanctioned strength and mandatory state approval are void ab initio. Consequently, the principle of natural justice cannot be invoked to protect such illegal appointments, as the corrective termination causes no legal prejudice to individuals who never held a proper legal status of employment.

Result: Petitions dismissed.

Table of Content
1. circumstances leading to the impugned order of service termination due to procedural lapses. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10)
2. petitioners' contention regarding lack of independent decision-making and breach of natural justice. (Para 11 , 12 , 13)
3. respondent defense citing mandatory state approval and illegality of appointments. (Para 14 , 15 , 16 , 17)
4. requirement of state sanction for contractual appointments under municipal law. (Para 18 , 19 , 20 , 21 , 22)
5. application of exception to natural justice for void-ab-initio appointments. (Para 23 , 24 , 25 , 26)
6. scope of government authority to direct municipal inquiries under section 326. (Para 27 , 28 , 29 , 30)
7. final order upholding the termination of illegal appointments. (Para 31)

ORDER :

The Chief Municipal Officer of Nagar Parishad, Kailaras, District Morena, (respondent no.4), vide order, dated 10.04.2023, dispensed with services of as many as 109 persons who were engaged on contract/daily wages by the then Chief Municipal Officer, challenging which these writ petitions have been filed. The facts and the legal position since are common in all these writ petitions, the same are being disposed of by this common order. For purposes of convenience, the facts are taken from W.P. No.8290 of 2023 filed by Jitendra Shakya and nine others.

[2]. The Nagar Parishad, Kailaras, District Morena (hereinafter referred as “Council”), has been constituted under Section 5 of Municipalities Act, 1961, (in short ‘Act’). By virtue of Section 3(18) of Act, Nagar Parishad is a Municipality and is governed by the Act of 1961. Section 86 of the Act provides for constitution of State Municipal Service and sub-section 3 thereof provides that the salary, allowances, gratuity, annuity, pension and other payments required to be made to the members of the State Municipal Service, in accordance with the conditions of their service, shall be a charge on the Municipal Fund. Section 87 of the Act provides for appointment of Chief Municipal Officer for every Council and further provides that all other officers & servants of the Council shall be subordinate to Chief Municipal Officer. Section 88 of the Act provides for appointment of members of Municipal Services of State. The appointment of petitioners is not covered under Section 86 & 88 of the Act.

[3]. Section 94 of the Act provides for appointment of staff of the Council. Under sub-section 1 thereof, it is the Council which is competent to appoint such other officers and servants as may be necessary and proper for the efficient discharge of its duties. This section apparently deals with power of Council to appoint officers and servants within the staffing pattern approved by the State Government. The petitioners are not covered under Section 94(1) of the Act also.

[4]. Sub-section 9 of Section 94 of the Act provides for another source of appointment in the Council which may possibly cover petitioners. It being important for decision of this case, is reproduced hereunder:

94(9). The President-in-Council may, with prior permission of the State Government, appoint subject specialists and personnel on contract for specified period and the manner and terms and conditions of appointment of such specialists and personnel on contract shall be such as may be prescribed by the State Government”

[5]. Thus, under Section 94(9) of the Act, the Council may appoint personnel on contract for specified period, however such appointment can only be made with the permission of the State Government and on terms and conditions as may be prescribed by the State Government.

[6]. Keeping in view the aforesaid legal provisions, the facts of the present case are required to be examined.

[7]. A copy of resolution, dated 06.12.2021, has been brought on record at page no.23 of the petition which approved appointment of 42 employees on contract basis for purposes of water distribution, revenue collection etc. of the Council. The Chief Municipal Off

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