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1961 Supreme(Online)(All) 24

ALLAHABAD HIGH COURT
, J
Ram Babu Rarthaur v. Divisional Manager Life Insurance Corporation of India
C. M. W. No. 1976 of 1960



Advocates:
For the Appellants/Petitioners: Brij Lal Gupta

The court ruled that employees at the pleasure of their employer cannot claim reinstatement through writs, as damages for wrongful dismissal are the appropriate remedy.

Headnote:(A) Specific Relief Act - Section 21 - Dismissal of employee from service - Petitioner claimed wrongful dismissal and sought reinstatement by way of writ - Court concluded that a civil suit for damages is the proper remedy - The petitioner not being a government servant, Art. 311 of the Constitution does not apply. (Paras 1, 2, 3)

(B) Employment Law - The law establishes that a servant is at the pleasure of the master - Disregard of service regulations does not confer a right of action in court - Remedy lies in departmental appeals, not in civil courts. (Paras 3, 5, 9)

Facts of the case:
The petitioner was dismissed from his position after allegations of misconduct regarding misappropriating funds were raised against him. The dismissal process included various complaints without proper opportunity for defense, leading to the court's examination of the appropriateness of a writ petition vs. a civil suit for redress.

Findings of Court:
The court determined that the proper remedy was to file a suit for damages rather than seeking reinstatement. The dismissal process adhered to the corporation's regulations.

Issues: The primary issues included whether the dismissal violated service regulations and whether the petitioner had remedies at law through a civil suit.

Ratio Decidendi: The court ruled that specific performance of employment contracts based on personal services cannot be enforced and that alternative remedies exist in civil law for dismissed employees.

Result: The court rejected the writ petition and advised that a civil suit for damages be pursued.

Table of Content
1. dismissal due to alleged misconduct. (Para 1)
2. no opinion on the legality of dismissal, suggests alternative remedies. (Para 2)
3. general employment law permits dismissal at employer's will. (Para 3 , 4 , 5 , 6 , 9 , 10)
4. writ for certiorari cannot substitute necessary legal procedures. (Para 8)
5. writ petition is rejected, civil suit recommended. (Para 11)

1. The petitioner has come to this Court on the allegation that he was appointed to the post of Organizer of Agencies by the New India Assurance Company Limited, Agra. After the State took over the insurance business by passing the Life Insurance Corporation Ordinance the services of the petitioner were transferred to the Life Insurance Corporation with, effect from 1-9-1956 upon the same terms and conditions on which he was employed in the New India Assurance Company, Agra and was given the appointment of Zonal Manager, Life Insurance Corporation of India, Central Zone, Kanpur.
His designation was changed from 1-1-1957 to that of a Field Officer. One Sri C.P. Ambesh who, according to the petitioner's allegation, is inimical to him filed a complaint against the petitioner to the Divisional Manager, Life Insurance Corporation of India, Agra, respondent No. 1, alleging that the petitioner had misappropriated an amount of Rs. 460 alleged to have been handed over by him to the petitioner. According to the petitioner no such cheque was given to him by Sri Ambesh.
The respondent No. 1 made over the matter to the police and the petitioner is being prosecuted under S.406/420/467, I.P.C. at the instance of the police in a criminal court on 22-9-1958 the respondent No. 1 issued a notice to the petitioner calling upon him to show cause as to why he should not be suspended under cls. 40 and 41 of the Staff Regulations, 1956. The petitioner sent a reply to the show cause notice. On 27-1-1959 the petitioner was suspended under cl. 41 of the Staff Regulations, 1956.
In the suspension order it was mentioned that there were certain fresh complaints of misappropriation also but the same were not specified. On 20-2-1959 the petitioner filed an appeal to the Executive Committee of the Life Insurance Corporation of India, Central Office, Bombay against the suspension order under cl. 42 of the Start Regulations, 1956. On 11-3-1959 the petitioner received a letter dated 18-2-1959 from respondent No. 1 in which new charges were levelled against him and he was asked to submit his explanation.
By a separate letter dated 3-3-1959 which the petitioner also received on 11-3-1959 some more allegations were made against him and he was also called upon to show cause why he should not be dismissed from service. On 17-3-1959 the petitioner wrote to the respondent No. 1 inviting his attention to the letters issued by him and requesting for copies, of complaints forming the basis of the charges and other materials in order to furnish his explanation. On 9-4-1959 the respondent No. 4 issued a letter to the petitioner which was received by him on 11-4-1959 stating therein that it had been concluded that the petitioner had no explanation to submit.
The petitioner again sent a telegram to respondent No. 1 requesting for the copies of the documents immediately. On 13-3-1959 while the petitioner was under suspension the respondent No. 1 referred the various complaints for investigation to the police and a case was registered against the petitioner in terms of that report. The respondent No. 1 terminated the services of the petitioner by a notice published in. a local daily 'Amar Ujala' of 9th May, 1959. On 21-5-1959 the petitioner received a copy of the formal order of dismissal dated 7-5-1959.
The petitioner filed an appeal before the Executive Committee of the Life Insurance Corporation of India, Central Office, Bombay, which was dismissed on 29-4-1960. On these facts the petitioner has come to this Court and prays for the issue of a writ of certiorari quashing the dismissal order dated 7-5-1959 an























































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