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2026 Supreme(MP) 735

IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR
ANAND SINGH BAHRAWAT, J.
Akal Singh – Petitioner 
Versus 
The State Of Madhya Pradesh Thr And Others – Respondents
Writ Petition No. 1549 of 2016 
Decided On : 06-01-2026

Advocates Appeared:
For the Petitioner:Shri Pratip Visoriya, Advocate.
For the Respondents:Shri Rajendra Jain, Government Advocate, Shri Shashank Indapurkar, counsel.

A termination order that is stigmatic—casting aspersions on an employee's conduct or character—constitutes a punishment and cannot be legally sustained without a regular departmental inquiry, as it violates the principles of natural justice and adversely affects future employment prospects.

Headnote:(A) Constitution of India - Article 226 - Termination of services - Stigmatic order - Departmental inquiry - Where an order of termination is stigmatic in nature, casting aspersions on the conduct, character, or work of the employee, such an order cannot be passed without holding a regular departmental inquiry, as it entails serious consequences for future employment prospects. (Paras 7, 9 and 10)

(B) Natural Justice - Reasonable opportunity - The concept of reasonable opportunity includes: (a) the opportunity to deny guilt and establish innocence by knowing the charges and allegations; (b) the opportunity to defend oneself by cross-examining witnesses; and (c) the opportunity to make a representation against the proposed punishment. (Para 8)

(C) Administrative Law - Reasoned decisions - Recording of reasons is an indispensable component of the decision-making process for administrative and quasi-judicial bodies to ensure transparency, prevent arbitrary exercise of power, and facilitate judicial review. (Para 14)

(D) Service Law - Termination vs. Punishment - While termination under contractual rights is not per se dismissal, if the termination is founded on misconduct, negligence, or inefficiency, it is a punishment. The test to determine if termination is a punishment is whether the employee had a right to the post or whether the order visits the employee with evil consequences, such as putting an indelible stigma on their career. (Para 19)

Facts of the case:
A contractual employee appointed as a sub-engineer was issued a show-cause notice regarding financial irregularities. Despite submitting a reply denying the allegations, the employee's services were terminated without a regular departmental inquiry. The subsequent appeal against this termination was also rejected.

Findings of Court:
The termination order is stigmatic in nature as it attributes misconduct to the employee. The authority failed to consider the reply to the show-cause notice and neglected to conduct a regular departmental inquiry. Consequently, the order violates the principles of natural justice and established legal precedents regarding stigmatic terminations.

Issues: Whether the services of a contractual employee can be terminated through a stigmatic order without conducting a regular departmental inquiry and providing a reasonable opportunity to be heard.

Ratio Decidendi: A termination order that casts a stigma on the employee's conduct constitutes a punishment rather than a simple termination of contract. Such an order requires a full departmental inquiry to maintain fairness and protect the employee's future career prospects, regardless of the contractual status of the appointment.

Result: Petition allowed. Termination and appeal rejection orders set aside. Respondent directed to reinstate the petitioner within three months with notional seniority, but without backwages on the principle of 'no work, no pay'.

Legal Category Hierarchy

  • constitutional law
    • writ jurisdiction
      • article 226 (Para 1, 13)
  • administrative law
    • natural justice
      • right to hearing (Para 6, 7, 8, 11, 12)
      • reasonable opportunity (Para 8, 19)
    • delegated legislation and powers
      • exercise of power
        • by competent authority (Para 15, 16)
    • administrative orders
      • recording of reasons (Para 14)
  • service law
    • termination of service
      • stigmatic termination vs simple discharge (Para 5, 9, 18, 19)
      • contractual service
        • termination without enquiry (Para 3, 5, 6, 7, 11)
    • departmental enquiry
      • necessity before stigmatic order (Para 7, 8, 9, 10, 11, 12, 17)
      • procedure
        • charge-sheet and opportunity (Para 8, 12, 13)
    • reinstatement and backwages
      • no work no pay (Para 21)
      • notional seniority (Para 21)
  • practice and procedure
    • judicial review
      • scope
        • alternative remedy no bar (Para 13)

Table of Contents

1. Termination of contractual Sub-Engineer — Stigmatic order without departmental enquiry — Writ petition under Article 226. (Para 1 , 2 )

2. Petitioner: stigmatic termination without enquiry violates natural justice. State: services terminated under contractual terms after fact-finding enquiry. (Para 2 , 3 )

3. Writ allowed — impugned termination and appellate orders set aside — reinstatement — no backwages — liberty to proceed afresh. (Para 20 , 21 , 22 )

4. Can a stigmatic termination order be passed without a regular departmental enquiry?

No. A stigmatic termination order cannot be issued without holding a regular departmental enquiry, as it entails serious consequences for the employee's future. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 17 )

5. What constitutes a stigmatic termination order?

An order is stigmatic if its language attributes misconduct, negligence, or inefficiency, or if evidence shows the termination was founded on allegations of misconduct, not merely contractual non-renewal. (Para 5 , 7 , 9 , 18 , 19 )

6. Is a termination order without reasons valid?

No. A quasi-judicial or administrative decision affecting a person prejudicially must record reasons; failure to do so is arbitrary and invalid. (Para 14 , 15 , 16 )

7. Must an employee be given an opportunity to defend before a stigmatic termination?

Yes. Reasonable opportunity includes the right to know charges, cross-examine witnesses, and make representation against proposed punishment before a stigmatic termination. (Para 8 )

8. Does the 'no work, no pay' principle apply after reinstatement following an invalid termination?

Yes. Where a stigmatic termination order is set aside, the court may reinstate the employee but deny backwages on this principle, while granting notional seniority. (Para 21 )

ORDER :

ANAND SINGH BAHRAWAT, J.

This petition, under Article 226 of Constitution of India, has been filed seeking the following relief (s):

“1. That, the order dated 7.8.2015 passed by Respondent No.2 (Annexure P/1) & order dated 31.12.2014 passed by Respondent No.5 (Annexure P/5) may kindly be quashed and petitioner be permitted to continue on the post.

2. That, cost of the petition may kindly be granted.”

2. Learned counsel for petitioner submits that initially petitioner was appointed on the post of Sub-Engineer on 6.11.2006 by the order of Collector-cum-District Program Co-ordinator, Chhatarpur. Thereafter, petitioner was transferred to Datia. It is further submitted that petitioner has performed his duties sincerely and honestly and they were extended time to time. It is further submitted that respondent No. 4 who was personally biased against petitioner issued a show-cause notice dated 15.12.2014 with an ulterior and oblique motive as his illegal demands were not satisfied by petitioner. Thereafter, petitioner submitted the reply and denied all the allegations mentioned in the show-cause notice and specifically contended that the amounts were withdrawn by Sarpanch and Secretary and petitioner had only verified the work. It is further submitted that so far as Lanju Aadiwasi's case is concerned he himself had filed affidavit before competent authority and Sarpanch who was removed on the basis of same allegations has already got interim relief. It is further submitted that without considering the reply submitted by petitioner and without conducting a regular departmental inquiry, the concerned authority passed the order dated 31.12.2014, which is non-speaking and unreasoned, thereby discontinuing the services of petitioner by not extending his contractual services.

It is further submitted by learned counsel for petitioner that the impugned order Annexure P-2 dated 31.12.2014 is stigmatic in nature and that has been passed without considering the reply of petitioner, however, the stigmatic order cannot be issued without holding a regular departmental enquiry. Learned counsel for petitioner raised other grounds also.

3. Per contra, learned Government Advocate, while vehemently opposing the submissions put forth by learned counsel for petitioner, submitted that as per condition mentioned in appointment order, the services of petitioner who has been appointed on contractual basis for a particular period may be terminated even before expiry of contractual period and even without giving any notice. Learned Government Advocate further submitted that detailed fact finding enquiry has been conducted in respect of the complaint of negligence committed by Secretary as well as Sarpanch towards his official duties and the fact finding enquiry report was submitted before Chief Executive Officer and on the basis of fact finding enquiry respondent has passed the impugned order.

4. Heard learned counsel for the parties and perused the record.

5. The impugned order dated 31.12.2014 (Annexure P/2) is a stigmatic order, relevant extract of which is reproduced below for ready reference and convenience:-

6. Before issuing impugned order dated 31.12.2014 Annexure P-2, the respondent has neither consider the reply to show-cause notice to petitioner nor regular department enquiry has been conducted and by stigmatic order services of petitioner have been terminated.

7. The services of petitioner have been terminated without holding any enquiry. Since impugned order Annexure P-2 dated 31.12.2014 is stigmatic in nature, therefore, regular departmental enquiry ought to have been held by respondents. The judgment passed by Co-ordinate Bench of this Court in WP No.23267/2019 (Omprakash Gurjar vs. Panchayat and Rural Development & Ors.), also the order dated 12.09.2023 passed in WP No.19117/2022 (Hukumchand Solanki vs. Panchayat and Rural Development & Ors.) and the order dated 19.07.2023 passed in WP No.14663/2022 (Arvind Malviya vs. State of MP & Ors.) are worth

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