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2025 Supreme(Online)(Chh) 19831

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Amitendra Kishore Prasad, J
Kamlesh Kumar Nirmalkar – Appellant
Versus
State Of Chhattisgarh – Respondent
WPS No. 8787 of 2023



Advocates:
For the Appellants/Petitioners: Raj Shengale
For the Respondents: Dashrath Prajapati, C. J. K. Rao

A stigmatic termination of a contractual employee, which entails punitive consequences such as the loss of reputation or future job prospects, cannot be effected without conducting a proper departmental inquiry and affording the employee a fair opportunity of being heard in accordance with principles of natural justice.

Headnote:(A) Constitution of India - Articles 14 and 16 - Principles of Natural Justice - Contractual appointment - Termination of service - Stigmatic order - Requirement of holding departmental inquiry before termination.

(B) Service Law - Contractual employee - Stigmatic termination - Petitioner terminated without show-cause or inquiry based on alleged misconduct - Principle of natural justice requires that any stigmatic order visiting the employee with evil consequences must be preceded by a fair inquiry and opportunity of hearing, even for a contractual appointee. (Paras 7, 8, 9, 11)

Facts of the case:
The petitioner, a contractual District Counsellor under the National Rural Health Mission, was terminated from service following his arrest in a criminal case, which the respondents treated as conclusive misconduct. Despite the petitioner’s acquittal, his representation was rejected, leading to the present writ petition contesting the arbitrary nature of the termination.

Findings of Court:
The Court found that the termination orders were stigmatic and were passed without following due process of law, specifically failing to conduct a departmental inquiry or provide a meaningful opportunity of hearing, which is mandatory under settled law for stigmatic dismissals.

Issues: Whether the termination of a contractual employee, deemed stigmatic, is valid without a prior formal departmental inquiry and opportunity of hearing.

Ratio Decidendi: If a termination order is founded on allegations of misconduct and entails penal consequences, it constitutes a punishment (dismissal) within the meaning of service law, regardless of the contractual status of the employee, thereby necessitating compliance with principles of natural justice and a fair inquiry.

Result: Petition allowed; impugned orders quashed with liberty to initiate fresh proceedings in accordance with law.

Table of Content
1. summary of facts regarding termination of contractual employment and initial relief sought. (Para 1 , 1 , 2)
2. petitioner's arguments on violation of natural justice and procedural requirements. (Para 3 , 4)
3. respondent's contention regarding the legality of the termination process. (Para 5)
4. court discussion on the necessity of departmental inquiry for stigmatic terminations. (Para 6 , 7 , 8)
5. final reasoning and order regarding the quashing of the termination order due to procedural failure. (Para 9 , 10 , 11 , 12 , 13)

1. The core issue in the present writ petition revolves around the termination of the petitioner. The petitioner was appointed to the post of District Counsellor (ICTC) on yearly contract basis under the scheme of NUHM. No show cause notice was ever issued against the petitioner regarding alleged irregularities, the petitioner was terminated by order dated 25.09.2023 (Annexure P/1) read with order dated 13.12.2021 (Annexure P/2). Aggrieved by the aforesaid, the petitioner has approached this Court by way of the present writ petition, seeking the following reliefs:

“10.1. Issue an appropriate writ in the nature of mandamus and quash the orders dated 25.09.2023 (Annexure P/1) read with 13.12.2021 (Annexure P/2), whereby the representation made by the petitioner has been rejected resulting into affirmation of the termination of service of the petitioner in a most arbitrary and illegal manner.

10.2 Issue an appropriate writ in the nature of mandamus and direct the respondents to reinstate the petitioner on the post of Data Entry Operator with immediate effect with all consequential benefits of arrears of pay with appropriate interest as deemed fit by this Hon'ble Court.

10.3 Grant any other relief, which is deemed fit in the circumstances of the case.”

2. Facts of the case, in a nutshell, are that the petitioner, after due screening, was appointed as District Counsellor (ICTC) on a yearly contractual basis vide order dated 31.12.2013 under the National Rural Health Mission (NRHM), a centrally sponsored scheme implemented through the State machinery, and his services, being consistently satisfactory, were renewed annually without interruption. While discharging his duties satisfactorily, the petitioner was unfortunately implicated in a criminal case registered as Crime No. 47 at Police Station Keregaon under Sections 67 and 67-A of the Information Technology Act, 2000 and Section 509 of the Indian Penal Code, 1860, pursuant to which he was arrested on 22.11.2021, remanded to judicial custody on 23.11.2021, and subsequently released on bail on 26.11.2021. However, about a month after his release, the petitioner was abruptly terminated from service vide order dated 13.12.2021 (Annexure P/1) on the ground that the alleged offences constituted misconduct under Rule 3(1)(iii) of the Chhattisgarh Civil Services (Conduct) Rules, 1965 and Clause 34.3 of the Human Resources Policy, 2018 of the National Health Mission. The termination was effected solely on account of his arrest and the allegations made therein, treating the same as conclusively established misconduct without conducting any independent departmental enquiry, which the petitioner was entitled to even as a contractual employee, as settled in law. Thereafter, the petitioner was acquitted of all charges by a detailed judgment dated 24.02.2023, the acquittal being based not on any compromise but on the prosecution's failure to prove intentional commission of the alleged offence. Upon submitting a representation enclosing the judgment of acquittal and receiving no response, the petitioner approached this Hon’ble Court by filing WP(S) No. 4273/2023, which was disposed of on 10.07.2023 with a direction to decide the representation in accordance with the governing rules and in the light of the judgment of the Hon’ble Tripura High Court in Sanchayeeta Deb v. State of Tripura , WPC No. 166/2011, decided on 14.10.2015, within 60 days. Contra

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