Supreme Court Allows LIC Appeal in Abandonment of Service Case — Concealment of Subsequent Employment Disentitles Equitable Relief. Termination under Regulation 39(4)(iii) of LIC Staff Regulations, 1960 Upheld as Delinquent Absented for 90 Days Without Intimation and Suppressed Fact of Joining FCI.

In Favour of Prosecution
  • 1058
Judgement Image
Font size:
Print

Case Note & Summary

The Supreme Court allowed the appeal filed by the Life Insurance Corporation of India (LIC) against the judgment of the Himachal Pradesh High Court, which had set aside the termination of the respondent, Om Parkash, an Assistant Administrative Officer. The respondent had absented himself from duty from 25 September 1995 without any intimation. LIC sent three notices to his permanent address on 6 October 1995, 6 November 1995, and 19 December 1995, all of which remained unanswered. The postal endorsement on the second notice stated that on enquiry it was learnt that the consignee had left his job and gone away. Consequently, a chargesheet-cum-show cause notice was issued on 14 February 1996 proposing removal from service, which also went unanswered. The disciplinary authority, invoking Regulation 39(4)(iii) read with Explanation 1 of the Life Insurance Corporation of India (Staff) Regulation, 1960, treated the absence as abandonment of service and ordered removal from service on 25 June 1996. The respondent's appeal to the appellate authority was rejected on 19 August 1997. Meanwhile, the respondent secured employment with the Food Corporation of India (FCI) on 14 April 1997. He filed a writ petition before the High Court on 5 January 1998 challenging his termination, but concealed the fact of his employment with FCI. The learned Single Judge set aside the termination on the ground that no reasonable opportunity was afforded to the respondent, and the Division Bench upheld this decision. The Supreme Court, however, found that the respondent's conduct clearly indicated abandonment of service. The Court noted that the respondent failed to respond to any of the notices, his whereabouts were unknown for over 90 days, and he subsequently joined FCI without informing LIC. The Court held that the employer rightly treated it as a case of abandonment and that conducting an inquiry was impossible due to the respondent's unavailability. Furthermore, the Court emphasized that the respondent's suppression of the fact of his employment with FCI in the writ petition disentitled him to equitable relief under Article 226 of the Constitution. The Supreme Court concluded that the High Court erred in granting relief and set aside the impugned orders, allowing the appeal with no order as to costs.

Headnote

A) Service Law - Abandonment of Service - Regulation 39(4)(iii) Life Insurance Corporation of India (Staff) Regulation, 1960 - Termination for Absence Without Leave - The respondent, an Assistant Administrative Officer, absented from duty from 25.09.1995 without intimation. Notices sent to his permanent address remained unanswered; postal endorsement indicated he had left job and gone. After 90 days, the disciplinary authority treated it as abandonment and ordered removal. The Supreme Court held that the employer rightly invoked Regulation 39(4)(iii) as the delinquent's conduct showed abandonment, and conducting an inquiry was impossible due to his unavailability. (Paras 3-5, 7.3, 12)

B) Equitable Jurisdiction - Suppression of Facts - Article 226 of the Constitution of India - Disentitlement to Relief - The respondent secured employment with the Food Corporation of India on 14.04.1997 but concealed this fact in his writ petition filed on 05.01.1998. The Supreme Court held that such suppression disentitled him to equitable relief under Article 226, and the High Court erred in granting relief without considering this vital aspect. (Paras 10, 12)

C) Natural Justice - Opportunity of Hearing - Abandonment of Service Cases - The High Court set aside the termination for want of opportunity, but the Supreme Court reversed, noting that the respondent failed to respond to multiple notices and his whereabouts were unknown, making inquiry impossible. The employer's action under Regulation 39(4)(iii) was valid as it does not require a full-fledged inquiry when the employee abandons service. (Paras 7.3, 11-12)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the High Court erred in granting relief to the respondent by setting aside the termination order passed under Regulation 39(4)(iii) of the LIC Staff Regulations, 1960, on the ground of no opportunity being given, when the respondent had abandoned service and suppressed the fact of subsequent employment.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court allowed the appeal, set aside the impugned orders of the High Court, and upheld the termination of the respondent. Parties to bear their own costs.

Law Points

  • Abandonment of service
  • Natural justice
  • Equitable relief
  • Suppression of facts
  • Regulation 39(4)(iii) LIC Staff Regulations
  • 1960
Subscribe to unlock Law Points Subscribe Now

Case Details

2024 LawText (SC) (11) 132

Civil Appeal No(s). 4393/2010

2024-11-13

Hrishikesh Roy, S.V.N. Bhatti

2024 INSC 870

Kailash Vasudev (Senior Counsel for Appellant), Jaideep Gupta (Amicus Curiae), Kunal Chatterjee (for Respondent)

Life Insurance Corporation of India & Ors.

Om Parkash

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil appeal against High Court judgment setting aside termination of service for abandonment.

Remedy Sought

Appellant LIC sought to set aside the High Court's order granting relief to the respondent and uphold the termination.

Filing Reason

The respondent's termination was set aside by the High Court on the ground of no opportunity being given, which LIC challenged.

Previous Decisions

The learned Single Judge set aside the termination order dated 25.06.1996 and granted consequential benefits, with liberty to conduct inquiry. The Division Bench upheld this decision. The respondent's appeal to the appellate authority was rejected on 19.08.1997.

Issues

Whether the termination of the respondent under Regulation 39(4)(iii) for abandonment of service was valid despite no formal inquiry. Whether the respondent's concealment of subsequent employment with FCI disentitled him to equitable relief under Article 226.

Submissions/Arguments

Appellant: The respondent absented for 90 days without intimation, notices remained unanswered, and he secured another job, indicating abandonment. Inquiry was impossible due to his unavailability. Respondent (through Amicus): Service of notice may be questionable as notices were sent to different addresses; termination without opportunity violated natural justice.

Ratio Decidendi

Where an employee absents himself without intimation for 90 days and fails to respond to notices, the employer may treat it as abandonment of service under Regulation 39(4)(iii) without conducting a formal inquiry. Suppression of material facts, such as subsequent employment, disentitles the employee to equitable relief under Article 226.

Judgment Excerpts

The order notes that the delinquent failed to respond to the notice(s) issued to him. Moreover his whereabouts were not known for over 90 days, as specified in the LIC Staff Regulation. If this vital aspect was known the High Court possibly would have taken a different view and the respondent abandoning his job with the LIC, could have been easily inferred. It is also necessary for us to say that as the delinquent was guilty of suppression of the fact of his employment with the FCI, he was disentitled to equitable relief from the High Court in exercise of powers under Article 226 of the Constitution.

Procedural History

The respondent's service was terminated on 25.06.1996. His appeal to the appellate authority was rejected on 19.08.1997. He filed Writ Petition No.41/1998 before the High Court on 05.01.1998. The learned Single Judge allowed the writ on 21.05.2003, setting aside the termination. The Division Bench dismissed LPA No.6/2003 on 26.06.2008. LIC appealed to the Supreme Court, which allowed the appeal on 13.11.2024.

Acts & Sections

  • Life Insurance Corporation of India (Staff) Regulation, 1960: Regulation 39(4)(iii), Explanation 1, Regulation 39(1)(f)
  • Constitution of India: Article 226
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Quashes Tree Authority Resolution for Metro Tree Felling Due to Lack of Quorum and Non-Compliance with Maharashtra (Urban Areas) Protection and Preservation of Trees Act, 1975. The resolution approving felling of 2646 trees was inva...
Related Judgement
High Court Bombay High Court Allows Waiver of Cooling-Off Period in Mutual Consent Divorce Under Goa Law of Divorce — Applies Amardeep Singh Principles. Husband and Wife Jointly Challenge Trial Court's Refusal to Waive One-Year Period Under Article 40, Succee...