Bombay High Court Quashes Termination of Probationary Employee Due to Stigmatic Order Without Inquiry — Deemed Confirmation After Expiry of Extended Probation Period. Termination order based on allegations of misconduct and unsatisfactory work is stigmatic and requires disciplinary inquiry; employee deemed confirmed after expiry of extended probation period without any order.

High Court: Bombay High Court In Favour of Accused
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Case Note & Summary

The petitioner, Sushil Kumar Srivastava, was appointed as Airport Director of Shirdi Airport by the Maharashtra Airport Development Company Limited (MADC) on 28th July 2021, on probation for one year. He joined on 2nd August 2021. On 4th February 2022, he was served a show cause notice based on a complaint dated 3rd February 2022 from Ms. Deepali Bhosale, alleging serious misconduct. The petitioner submitted his explanation on 7th February 2022, denying the allegations and stating that the complaint was motivated because he had pointed out deficiencies in the complainant's counters. Despite the allegations, the petitioner's probation was extended four times for two months each, from 1st August 2022 to 31st March 2023. After 31st March 2023, no order of confirmation or termination was issued, and the petitioner continued in service. On 2nd June 2023, the petitioner was terminated by an order that detailed various allegations of misconduct and unsatisfactory work. The petitioner challenged the termination, arguing that he was deemed confirmed after 31st March 2023 and that the termination order was stigmatic, requiring a disciplinary inquiry. The court held that the appointment order did not provide for extension of probation, but the employer extended it four times. After the extended probation ended on 31st March 2023, the employer did not issue any order, and the petitioner continued in service, leading to deemed confirmation. The termination order was stigmatic as it contained allegations of misconduct and unsatisfactory work, and thus could not be passed without a disciplinary inquiry. The court quashed the termination order and directed reinstatement with continuity of service and 50% back wages.

Headnote

A) Service Law - Probation - Deemed Confirmation - Appointment Order - Where the appointment order does not provide for extension of probation, the employer cannot extend probation beyond the initial period; however, if extended, upon expiry of the extended period without any order of confirmation or termination, the employee is deemed confirmed. (Paras 13-16)

B) Service Law - Stigmatic Termination - Disciplinary Inquiry - Termination order based on allegations of misconduct and unsatisfactory work is stigmatic and cannot be passed without a proper disciplinary inquiry. (Paras 17-20)

C) Service Law - Termination During Probation - Employer's Power - Clause 4 of the appointment order permits termination without notice if work is unsatisfactory, but such termination must be innocuous and not based on allegations of misconduct. (Paras 14-15)

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Issue of Consideration

Whether the termination order dated 2nd June 2023 was stigmatic and required a disciplinary inquiry, and whether the petitioner was deemed confirmed in service after expiry of the extended probation period on 31st March 2023.

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Final Decision

The court quashed the termination order dated 2nd June 2023 and directed the respondents to reinstate the petitioner in service with continuity of service and 50% back wages from the date of termination till reinstatement, within four weeks.

Law Points

  • Probation extension requires express power in appointment order
  • Deemed confirmation after expiry of probation period
  • Stigmatic termination requires disciplinary inquiry
  • Employer cannot terminate on grounds of misconduct without inquiry
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Case Details

2025 LawText (BOM) (2) 285

Writ Petition (L) No.21711 of 2023 with Interim Application (L) No.8024 of 2024

2025-02-28

Ravindra V. Ghuge, Ashwin D. Bhobe

Shailendra Kumar Singh, Devakinandan R. Singh for Petitioner; Himanshu Takke for Respondent No.1; Nitin Deshpande for Respondent No.2; Tushar Matkar, Sharad Achare, Ramesh Dande for MIDC

Sushil Kumar Srivastava

State of Maharashtra, Vice Chairman & Managing Director, Maharashtra Airport Development Company Limited, Chairman, GMR Group

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Nature of Litigation

Writ petition challenging termination of service

Remedy Sought

Quashing of termination order dated 2nd June 2023 and reinstatement with continuity of service and back wages

Filing Reason

Petitioner was terminated from service as Airport Director by a stigmatic order without any disciplinary inquiry, despite being deemed confirmed after expiry of extended probation period

Previous Decisions

Interim orders dated 1st September 2023 and 22nd March 2024 were passed regarding filing of reply and restraint on filling vacancy

Issues

Whether the petitioner was deemed confirmed in service after expiry of the extended probation period on 31st March 2023? Whether the termination order dated 2nd June 2023 was stigmatic and required a disciplinary inquiry?

Submissions/Arguments

Petitioner argued that he was deemed permanent after 31st March 2023 as no order of confirmation or termination was issued, and the termination order was stigmatic as it contained allegations of misconduct. Respondent No.2 argued that the petitioner's performance was unsatisfactory and there were several allegations against him, justifying termination.

Ratio Decidendi

An employee on probation whose probation period is extended and who continues in service after the extended period without any order of confirmation or termination is deemed confirmed. A termination order that is stigmatic, i.e., based on allegations of misconduct or unsatisfactory work, cannot be passed without a proper disciplinary inquiry. The employer's power to terminate during probation under Clause 4 of the appointment order is limited to an innocuous termination and cannot be used to terminate on grounds of misconduct.

Judgment Excerpts

This clearly indicates that there was no Clause in the appointment order as an Airport Director, that the Petitioner’s probation could be extended. Keeping in view the law laid down by this Court in Raymond UCO Denim Pvt Ltd. Yavatmal v/s. Praful Warade and Others, the act of the Employer can be faulted. The termination order is stigmatic and could not have been passed without holding a disciplinary inquiry.

Procedural History

The petition was filed in 2023. On 1st September 2023, the court granted time to file reply and noted the issue of complaint by GMR Group. On 22nd March 2024, an interim application was filed seeking restraint on filling vacancy, and the court recorded that due to code of conduct, vacancy was not being filled. On 29th January 2025, the court recorded that Respondent No.3 stated no complaint was lodged. The final judgment was delivered on 28th February 2025.

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