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2026 Supreme(Online)(Kar) 24210

THE HIGH COURT OF KARNATAKA
S.R. Krishna Kumar, J
Nalanamma – Appellant
Versus
Director of Social Security and Pension – Respondent
WP No. 7135 of 2023



Advocates:
For the Appellants/Petitioners: K. B. Muralidhar
For the Respondents: G. Ramesh Naik, Sampangi Ramaiah

Termination of a contractual employee based on allegations of misconduct is a punitive and stigmatic act. Such dismissal requires a formal disciplinary enquiry in compliance with the principles of natural justice, and failure to conduct one renders the termination order legally unsustainable.

Headnote:(A) Constitution of India - Articles 226 and 227 - Termination of service of contractual employee - Principles of natural justice - Requirement of enquiry - Where an order of discharge or termination is not one of discharge simpliciter but contains allegations of misconduct or is punitive in nature, it casts a stigma on the employee - Such termination requires compliance with the principles of natural justice and the holding of a formal disciplinary enquiry. (Paras 5, 9, 12, 14)

(B) Service Law - Termination of service - Temporary or contractual employee - When a termination order, though ostensibly innocuous, is founded on allegations of misconduct or is used as a cloak for punishment, the court may pierce the veil of the order to ascertain the true character thereof - Such orders, if stigmatic, are illegal if passed without a fair opportunity to defend through a proper enquiry. (Paras 5, 10, 13, 14)

Facts of the case:
The petitioner, a former data entry operator working on an outsourcing basis, challenged an order terminating her services. The respondents alleged unauthorized absence and poor performance. In an earlier round of litigation, the court directed the authorities to provide an opportunity for representation and to hear the employee. Following this, the authority issued an order reiterating the termination based on findings of misconduct and unauthorized absence, effectively dismissing the petition without a formal disciplinary enquiry.

Findings of Court:
The court observed that the impugned order explicitly accused the employee of misconduct and unauthorized absence during a specific period. Such an order acts as a punitive measure that stigmatizes the individual, potentially affecting their future employment prospects. Since the order was based on conclusions of guilt regarding misconduct, bypassing a formal enquiry violated the principles of natural justice.

Issues: Whether the termination of a contractual employee, predicated upon allegations of misconduct, constitutes a punitive or stigmatic dismissal requiring a regular disciplinary enquiry, and whether such an order can be sustained in the absence of such an enquiry.

Ratio Decidendi: An order of termination for a temporary or contractual employee is not a discharge simpliciter if it is grounded in findings of misconduct. Such orders create a stigma that necessitates the invocation of the audi alteram partem principle. Consequently, failure to conduct a disciplinary enquiry prior to such a punitive dismissal renders the order unsustainable under law.

Result: Petition allowed; impugned order quashed; respondents directed to reinstate the petitioner and conduct a proper enquiry in accordance with law.

Table of Content
1. petitioner seeks reinstatement after challenging dismissal order via writ petition. (Para 1 , 2 , 3)
2. dismissal orders containing allegations of misconduct are punitive/stigmatic. (Para 4 , 5 , 6 , 7 , 8 , 9)
3. stigmatic termination requires a formal departmental enquiry under article 311. (Para 10 , 11 , 12 , 13 , 14 , 15)

THIS W.P. IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER AS AT ANNEXURE-R DATED 03.03.2023 PASSED BY THE R1 IN NO.DSP-EST/51/2022 AND ETC.,

THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

ORAL ORDER

In this petition, petitioner seeks for the following reliefs:-

“(a) Issue of a writ of Certiorari or any other writ or order or direction as the case may be, quash the impugned order as at Annexure-R, dated 03.03.2023, passed by the 1st Respondent, in No.:DSP-EST/51/2022;

(b) Issue of a writ of Mandamus or any other writ or order or direction as the case may be direct the respondents 1 and 3 to permit the petitioner to re-join to duty as data entry operator in the office of the 4th Respondent, in the place in which the petitioner was working and pay her salary due to her.

(c) Grant such other relief or reliefs as this case may be, as this Hon’ble Court deems fit in the circumstances of case, in the interest of Justice.”

2. Heard learned counsel for the petitioner, learned AGA for the respondent Nos.1 to 3 and learned counsel for respondent No.4 and perused the material on record.

3. A perusal of the material on record will indicate that the petitioner was working as a Data Entry Operator in the respondent No.3 - Office by way of outsourcing from Keonics. The petitioner was on leave from 07.08.2019 to 06.09.2019. According to the petitioner, she was on medical leave on account of her surgery and she had intimated the same to the respondent. It is contented that subsequently, the respondent did not take the petitioner back to duty and instead terminated the services of the petitioner on the ground of unauthorised absence, which was challenged by the petitioner before this Court in W.P.No.1359/2020, which was disposed of by this Court as hereunder:

“The petitioner is before this Court praying for a writ of mandamus to direct the respondents 1 and 3 to permit the petitioner to rejoin duty as Data Entry Operator in the place of the 4th respondent.

2. Heard Sri Pramod R., learned counsel for the petitioner and Sri T.P. Srinivas, learned Principal Government Advocate for respondents 1 to 3. Respondent No.4 has remained absent. Perused the writ petition papers.

3. Learned counsel for the petitioner would submit that the petitioner was appointed as Data Entry Operator on 01.01.2010 in the 3rd respondent Office on out source from Keonics. It is stated that the petitioner was on medical leave, which was sanctioned by the 3rd respondent-Tahsildar. Petitioner was issued with show cause notice alleging absence and the petitioner was terminated from duty as Data Entry Operator by 3rd respondent-Tahsildar. Against which the petitioner is said to have filed a representation before the 1st respondent-Director of Social Security and Pensions, Revenue Department. The Director issued letter dated 19.11.2019 (Annexure-J) to the 1st respondent–Deputy Commissioner, and forwarded the material made available by the petitioner such as leave sanction letter, medical certificate, directing to conduct enquiry and take action to reinstate the petitioner into service. The petitioner is before this Court seeking for a direction to implement Annexure-J dated 19.11.2019. Learned counsel for the petitioner would submit that the 3rd respondent/Tahsildar has no jurisdiction to terminate the service of the petitioner and moreover, he submits that the petitioner went on leave on sanction by the 3rd respondent-Tahsildar. Further he submits that the petitioner had undergone surgery and in that regard she had also submitted medical certificate. Si

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