A termination order passed in violation of the principles of natural justice, based on a biased and predetermined report, and in an unfair manner is liable to be set aside.

ORDER :

Heard the learned Counsel for the Petitioner and the learned Standing Counsel for the Respondents.

2. This Writ Petition is filed praying to issue a Writ of Mandamus declaring the orders of the 2nd respondent terminating the hire bus agreement of the petitioner for his passenger bus bearing no. TS 26 T 6668 vide orders in no. T1/359(19)/2019-RM-WL dated 26.04.2022 as illegal, arbitrary, against principles of natural justice and in clear violation of Articles 14, 19(1)(g) and 21 of the Constitution of India and set aside the same.

3. The case of the Petitioner, in brief, is as follows :

(a) The Petitioner, in pursuance of the tender issued by the 1st respondent for the supply of passenger buses on a hire basis, submitted his tender and was declared as a successful bidder. Upon the instructions of the respondent nos. 1 and 2 the petitioner started operating passenger bus bearing no. TS 26 T 6668 on the route Thorrur - Hyderabad via Jaffargad upon an agreement executed with respondent no. 2 for a term of 10 years, starting from 12.03.2020 to 11.03.2024 and renewable thereafter for the rest of the term of the agreement.

(b) Subsequently, the petitioner started operating the passenger bus for hire to the respondent corporation and no complaint in whatsoever manner was made against the petitioner in providing the services. While things stood thus, the insurance officials intimated the petitioner that the vehicle’s insurance has expired on 07.02.2022, and the same was renewed by the petitioner, which was effective from 07.02.2022 and valid up to 06.02.2023 and thus, the policy documents were handed over to the 3rd respondent.

(c) The 2nd respondent issued a show-cause notice vide No. T1/359(19)/2019-RM-WL dated 18.04.2022 alleging that the petitioner has submitted a fake and fabricated insurance policy to the 3rd respondent by tampering the date of validity of the insurance policy which was effective from 02.01.2022 to 01.01.2023 for claiming hire charges, wherein the above said show cause notice was based on alleged report which has been allegedly submitted by respondent no. 3 after receiving the insurance policy from the petitioner for the period starting from 07.02.2022.

(d) The allegation made by the respondent no. 2 in his show-cause notice prima facie show that the petitioner has submitted an insurance policy for the period starting from 07.02.2022 to 06.02.2023 again, after an insurance policy for the very same vehicle for the period starting from 02.01.2022 to 01.01.2023 was submitted by petitioner.

(e) The petitioner submitted an explanation dated 23.04.2022 to the 2nd Respondent stating that under no circumstances the petitioner submitted any tampered insurance policy and any such situation has never arisen. Alongside, the 3rd respondent did not inform the petitioner about the expiry of the insurance policy.

(f) The 2nd respondent without appreciating the representation dated 27.04.2022 submitted by the petitioner, called upon respondent No. 2 to conduct an enquiry into the alleged allegation of submission of a fake insurance policy. Subsequently, the 2nd respondent passed a cryptic and unreasonable order based on the report allegedly submitted by 3rd respondent and thus, terminated the hire agreement entered into with the petitioner. The respondents have stopped operating the petitioner’s passenger bus even before the issuance of a show-cause notice alleging misconduct against him. Hence this writ petition.

4. Counter Affidavit filed by the Respondents, in brief, is as under :

(a) The petitioner has entered the agreement for initial four years period from 12.03.2020 to 11.03.2024 and has produced the Insurance Certificate with Policy issued by the New India Assurance Company Ltd in respect of the Hire Bus No. TS 26 T-6668 (EXPRESS Type) for the period from 27.12.2019 to 26.12.2020, 27.12.2020 to 26.12.2021 and from 07.02.2022 to 06.02.2023.

(b) The Petitioner has submitted the Insurance Policy bearing No.431403/31/2022/2917 is