HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P. NAVEEN RAO, G. RADHA RANI, JJ.
Indian Immunologicals Limited, Rep. by its Managing Director and others - Appellants
Versus
Narendra Agrawal, S/o. Late Shri Nathulal Agrawal and others - Respondents
Writ Appeal No. 763 of 2019
Decided On : 25-02-2022
Constitution of India, 1950 - Article 226 - Contract of employment – Manager Grade-II - Unauthorised absent without prior permission or intimation - Order of termination - On some health issues, he was admitted in hospital. A show cause notice was issued to him alleging that he was unauthorisedly absent without prior permission or intimation - Whether second respondent company is a ‘State’ or ‘other authority’ in order to be amenable to jurisdiction of this Court under Article 226 of Constitution - If so, whether order of termination of service of petitioner passed is valid or not - Held, Termination of service of first respondent is ex facie illegal, without power and jurisdiction - It is void ab initio. As order of termination is found to be ex facie illegal, a void order, necessary corollary is reinstatement - It is premature to going into aspect of whether employee ‘lost confidence’, set up as a defense to over come palpably illegal order, for, issue of ‘loss of confidence’ is yet to be established by due process and it is only assumption of the competent authority. Chronology of actions taken against 1st respondent also indicate that allegations of misconduct are evolving, improving from stage to stage. These allegations are yet to be established - He cannot prejudge culpability of employee without affording him opportunity by duly following procedure required by law to take action against a permanent employee - Writ Appeal dismissed.
JUDGMENT :
P. Naveen Rao, J.
Heard learned senior Counsel Sri C.R. Sridharan for learned counsel for appellants Sri G.V.S. Ganesh, first respondent in person, Sri Namavarapu Rajeshwar Rao, learned Assistant Solicitor General for second respondent and Mrs. Anjali Agarwal, learned counsel for third respondent.
2. Before recording rival contentions, the litigative history leading to the filing of this writ appeal is noted hereunder:
2.1. First respondent herein was appointed as Manager Grade-III by proceedings dated 2.3.3007 in the Indian Immunological Limited (for short IIL); he was promoted as Manager Grade-II with effect from 1.4.2013 and by circular orders dated 20.3.2014 he was given full charge of Marketing, HR, Training and Development of entire marketing work force. It appears, problems mounted on first respondent some time from November, 2014. On 25.11.2014, first respondent was asked to vacate his cabin and to share office space with a far junior to him. His application for casual leave on 26.11.2014 was rejected. He has escalated his grievances in the form of a representation dated 25.11.2014 and mail dated 22.12.2014. Instead of attending to his grievances, an office order was issued on 2.1.2015 transferring the first respondent to Distribution Department at Ooty in state of Tamilnadu. On some health issues, he was admitted in hospital on 5.1.2015. A show cause notice was issued to him on 6.1.2015 alleging that he was unauthorisedly absent without prior permission or intimation. After discharge from the Hospital, he submitted his reply on 11.1.2015 to the show cause notice. However, by letter dated 16.1.2015, he was asked to vacate the quarter by 15.2.2015. It appears, he was again admitted in hospital on 23.1.2015 and while he was taking treatment, on 24.1.2015 order terminating his services with one month notice was issued by invoking Clause 18 of the contract of employment.
2.2. The order of termination dated 24.1.2015 was challenged before this Court in W.P.No.4159 of 2015 wherein, the appellants herein raised the plea of maintainability of the writ petition on two grounds. Firstly, employer IIL is a corporate entity, not involved in discharge of any public duty, therefore, it is not amenable to writ jurisdiction. Secondly, termination was passed as per the terms of employment governing his appointment, therefore, there cannot be any adjudication on the validation of termination order in a writ petition.
2.3. It appears, before learned single Judge elaborate submissions were made on the issue of maintainability of the writ petition and also justifying the action of termination of first respondent. This Court framed following two points for consideration.
(1) Whether the second respondent company is a ‘State’ or ‘other authority’ in order to be amenable to the jurisdiction of this Court under Article 226 of the Constitution of India? and
(2) If so, whether the order of termination of service of the petitioner passed on 21.04.2015 is valid or not?.
2.4. On thorough discussion on the subject of jurisdiction of writ Court under Article 226 of the Constitution of India, learned single Judge of this Court held as under :
“In the instant case, we are examining whether the subsidiary company is an ‘authority’ amenable to jurisdiction under Article 226 of the Constitution of India. A perusal of the provisions of NDDB Act and the Memorandum and Articles of Association of the second respondent clearly shows the control exercised by the holding company in the affairs of the subsidiary company. Thus, it can be concluded that the holding company is having financial, functional and administrative domination under the supervision of the Central Government, though the subsidiary company is being managed by the Board of its own with its own Memorandum and Articles of Association regulating its affairs. In view of this, the second respondent is amenable to the jurisdiction of this Court under Article 226 of the Constitution of India.”
2.5. Lea
The Praga Tools Corporation vs. Shri G.A. Imanual and others
Andhra Pradesh Paper Mills Limited, Secunderabad and another v. Ch. Seetharamaiah and others
Air-India Corporation, Bombay Vs. V.A. Rebellow and another
Indian Railway Construction Co. Ltd. vs. Ajay Kumar
Pearlite Liners (P) Ltd. vs. Manorama Sirsi
P.J. Irani Vs. State of Madras and another
Rohtas Industries Ltd. v. Staff Union : (1976) 2 SCC 82
Air India Statutory Corpn. V. United Labour Union : (1997) 9 SCC 377
Election Commission v. Saka Venkata Rao
Deepak Bajaj v. State of Maharashtra
Andi Mukta Sadguru Shree Muktajee Vandas Swami Suvarna Jayanti Mahotsav Smarak Trust v. V.R. Rudani
Bandhua Mukti Morcha v. Union of India
K.K. Saksena v. International Commission on Irrigation & Drainage
SupremeToday
A writ petition under Article 226 is not maintainable against a private employer for contractual termination unless it involves a public law element.
Probationary employees have limited protections under Article 311, permitting non-stigmatic terminations based on suitability assessments without the full rigor of disciplinary proceedings.
A writ petition under Article 226 of the Constitution is not maintainable against a private company, even if it discharges a public function, unless the contract of service is governed or regulated b....
Probationers in permanent posts are entitled to protections under the Central Civil Services (Classification, Control and Appeal) Rules, 1965, and terminations based on stigmatic allegations must fol....
Termination of a probationary employee for unsatisfactory performance is lawful and non-stigmatic, requiring no formal inquiry or prior warning.
Termination under CCS (Temporary Service) Rules Rule 5(1) is punitive if founded on specific misconduct without formal enquiry, even if order appears simpliciter; requires reinstatement with liberty ....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.