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2015 Supreme(Online)(SC) 495

SUPREME COURT
Ruma Pal, C. K. Thakker, Markandey Katju, JJ.
State of Madhya Pradesh and Another v. Mahadeo Karade
C. A. No. 2169 of 2006



The reinstatement of a temporary employee was deemed erroneous due to stipulations allowing for termination without notice.

Headnote:This appeal challenges an order from the High Court that reinstated a temporary employee and ordered payment of back wages. The court overlooked the stipulations in the employment letter allowing termination without notice. The appeal is allowed, and the previous order is set aside; an ex gratia payment is awarded to the respondent.

Table of Content
1. the high court's direction for reinstatement was based on facts that overlooked the employee's temporary status. (Para 1 , 2)
2. the appeal is allowed and the previous order is set aside with an ex gratia payment directed. (Para 3)

1. Leave granted. The subject - matter of challenge in this appeal is an order passed by the High Court reinstating the respondent in the services of the appellant and directing that the respondent be paid fifty per cent back wages and all other benefits.

2. The High Court appears to have overlooked the fact that the respondent was a temporary employee and his letter of appointment clearly stipulates that his services could be terminated at any time without notice. Despite this fact, the appellant, in fact, gave notice to the respondent to show cause as to why action should not be taken against him for his objectionable conduct. In answer to the show - cause notice, the respondent admitted his lapses.

3. In the circumstances, we are of the view that the High Court erred in directing the respondent's reinstatement with consequential benefits. We, accordingly, allow the appeal and set aside the impugned order. However, having regard to the fact that the respondent has been pursuing litigation in courts for some time, the State Government will pay an ex gratia amount of rupees twenty - five thousand to the respondent within a period of six weeks from today.

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