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2026 Supreme(MP) 736

IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR
ANAND SINGH BAHRAWAT, J.
Veeresh Kumar Tyagi – Petitioner 
Versus 
The State Of Madhya Pradesh And Others – Respondents
Writ Petition No. 641 of 2015
Decided On : 06-01-2026

Advocates Appeared:
For the Petitioner:Shri Pratip Visoriya, Advocate.
For the Respondents:Shri Rajendra Jain, Government Advocate.

Termination orders that are stigmatic, casting aspersions on an employee's conduct or character, constitute punishment and require a regular departmental inquiry and adherence to the principles of natural justice, regardless of whether the employment is contractual or temporary.

Headnote:(A) Constitution of India - Article 226 - Service Law - Termination of service - Stigmatic order - Departmental Enquiry - Principles of Natural Justice - Whether a contractual employee can be terminated by a stigmatic order without a regular departmental inquiry - An order of termination that casts stigma on the conduct, character, or work of an employee is a punishment and requires a regular departmental inquiry, regardless of the contractual nature of employment (Paras 5, 7, 9, 10).

(B) Principles of Natural Justice - Reasonable opportunity includes the right to be informed of charges, an opportunity to deny guilt and establish innocence, the right to cross-examine witnesses, and the opportunity to make representations against the proposed punishment (Para 8).

(C) Administrative Law - Reasoned Decisions - Decisions affecting individuals prejudicially must be supported by cogent and clear reasons to prevent the arbitrary exercise of power and to facilitate judicial review (Para 14).

Facts of the case:
A contractual employee appointed to a financial post was terminated through an order that cast stigma on their service. Although a show-cause notice was issued and a reply was submitted by the employee, no regular departmental inquiry was conducted. The employee challenged the termination order on the grounds that it was non-speaking, unreasoned, and passed without following the mandatory procedure for stigmatic terminations.

Findings of Court:
The termination order is stigmatic in nature. The respondents failed to conduct a regular departmental inquiry or properly consider the reply to the show-cause notice. Furthermore, it was found that the order was not passed by the competent authority, rendering it unsustainable in law.

Issues: Whether a termination order that is stigmatic in nature can be legally passed without conducting a regular departmental inquiry, particularly when the employee is appointed on a contractual basis.

Ratio Decidendi: A termination of service is not punishment if it is based on a contractual right or service rule in a simplicitor manner. However, if the termination is founded on misconduct, negligence, or inefficiency and casts a stigma on the employee's conduct or future prospects, it is treated as a punishment. In such instances, the principles of natural justice must be followed, and a regular departmental inquiry is mandatory to ensure the employee has a reasonable opportunity to defend themselves (Paras 11, 19).

Result: Impugned termination order dated 31.12.2014 is hereby set aside.

Legal Category Hierarchy

  • constitutional law
    • writ jurisdiction
      • article 226 (Para 1, 13)
      • alternative remedy (Para 13)
    • fundamental rights
      • article 311 (Para 19)
      • principles of natural justice (Para 11, 13, 14)
  • administrative law
    • administrative action
      • termination of service
        • stigmatic order (Para 2, 5, 7, 9, 11)
        • departmental inquiry (Para 2, 7, 9, 11, 12)
        • show cause notice (Para 2, 6)
    • quasi-judicial authority
      • duty to record reasons (Para 14)
  • practice and procedure
    • judicial review
      • order of termination (Para 18, 19)
      • writ petition (Para 13)
  • service law
    • contractual employment (Para 3)
    • temporary employee (Para 11)
    • probationer (Para 11)
    • contingency paid employee (Para 11)

Table of Contents

1. Petitioner challenged stigmatic termination order without regular departmental inquiry. (Para 1 , 2 , 5 , 6 )

2. Petitioner argued stigmatic termination required departmental inquiry; State argued contractual termination valid without notice. (Para 2 , 3 )

3. Impugned stigmatic termination order set aside; respondents at liberty to proceed afresh in accordance with law. (Para 20 , 21 )

4. Is a stigmatic termination order valid without a regular departmental inquiry?

No. A stigmatic termination order, which casts stigma on the employee, cannot be passed without holding a regular departmental inquiry. (Para 7 , 9 , 10 , 11 , 12 , 13 )

5. What constitutes a stigmatic termination order?

An order founded on acts of commission or omission amounting to misconduct, which casts stigma on the conduct, character, and work of the employee, is stigmatic. (Para 8 , 11 )

6. What is required to determine the true nature of a termination order?

The form of the order is not final; the court must find the real reason and true character behind the termination, not just its language. (Para 18 , 19 )

7. Must a quasi-judicial authority record reasons in support of its decision?

Yes. A quasi-judicial authority must record reasons, as it ensures justice, restrains arbitrary power, and facilitates judicial review. (Para 14 )

8. Can a court entertain a writ petition under Article 226 despite an alternative remedy?

Yes, if the impugned order is passed contrary to settled law and violates principles of natural justice, the alternative remedy is no bar. (Para 13 )

ORDER :

ANAND SINGH BAHRAWAT, J.

This petition, under Article 226 of Constitution of India, has been filed seeking the following relief (s):

“1. That, the order dated 31.12.2014 passed by respondent No.4 (Annexure P/1) may kindly be quashed and petitioner be permitted to continue on the post in question.

2. That, cost of the petition may kindly be granted.

3. That, order dt. 31.1.2015 (Annexure P/1) may kindly be quashed.”

2. Learned counsel for petitioner submits that petitioner was appointed on the post of Cashier on 26.10.2006. Thereafter, petitioner was transferred to Datia. It is further submitted that petitioner has performed his duties sincerely and honestly and they were extended time to time. It is further submitted that respondent No. 4, who was personally biased against the petitioner, issued a show-cause notice dated 15.12.2014 with an ulterior and oblique motive, as his illegal demands were not satisfied by the petitioner. Thereafter, petitioner submitted the reply and denied all the allegations mentioned in the show-cause notice. Without considering the reply submitted by petitioner and without conducting a regular departmental inquiry, the concerned authority passed the order dated 31.12.2014, which is non-speaking and unreasoned.

It is further submitted by learned counsel for petitioner that the impugned order Annexure P-1 dated 31.12.2014 is stigmatic in nature and that has been passed without considering the reply of petitioner, however, the stigmatic order cannot be issued without holding a regular departmental enquiry. Learned counsel for petitioner raised other grounds also.

3. Per contra, learned Government Advocate, while vehemently opposing the submissions put forth by learned counsel for petitioner, submitted that as per condition mentioned in appointment order, the services of petitioner who has been appointed on contractual basis for a particular period may be terminated even before expiry of contractual period and even without giving any notice.

4. Heard learned counsel for the parties and perused the record.

5. The impugned order dated 31.12.2014 (Annexure P/1) is a stigmatic order, relevant extract of which is reproduced below for ready reference and convenience:-

6. Before issuing impugned order dated 31.12.2014 Annexure P-1, the respondent has neither consider the reply to show-cause notice to petitioner nor regular department enquiry has been conducted and by stigmatic order services of petitioner have been terminated.

7. The services of petitioner have been terminated without holding any enquiry. Since impugned order Annexure P-1 dated 31.12.2014 is stigmatic in nature, therefore, regular departmental enquiry ought to have been held by respondents. The judgment passed by Co-ordinate Bench of this Court in WP No.23267/2019 (Omprakash Gurjar vs. Panchayat and Rural Development & Ors.), also the order dated 12.09.2023 passed in WP No.19117/2022 (Hukumchand Solanki vs. Panchayat and Rural Development & Ors.) and the order dated 19.07.2023 passed in WP No.14663/2022 (Arvind Malviya vs. State of MP & Ors.) are worth mentioning.

8. The Division Bench of this Court in the case of Rahul Tripathi Vs. Rajeev Gandhi Shiksha Mission, Bhopal & Others reported in 2001(3) MPLJ 616 and Jitendra Vs. State of M.P. & Others reported in 2008(4) MPLJ 670 has rightly held that the order of termination is stigmatic in nature as the same entails serious consequences on future prospects of respondent and therefore, the same ought to have been passed after holding an inquiry. This Court is further supported in its view by the judgment passed by Division Bench of this Court in the case of Malkhan Singh Malviya Vs. State of M.P. reported in ILR(2018) MP 660. The Apex Court while deciding the case of Khem Chand vs. The Union of India and Ors. reported in 1958 SC 300, had an occasion to summarize the concept of reasonable opportunity, relevant para of which reads as under:-

"(19) To summarize: the reasonable opportunity envisaged by the

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