Case Note & Summary
The case involved an appeal concerning the termination of trainees employed by a public sector company. The respondents had their termination quashed by a Single Judge of the High Court, which directed their reinstatement. The appellants challenged this decision before the Division Bench of the High Court, which dismissed their appeal but later affirmed the Single Judge's order based on the prolonged interim order allowing the trainees to continue their employment. The Supreme Court found that the Division Bench's reasoning was flawed, as it acknowledged the termination was lawful and that the respondents were appointed for a specific period as trainees. The court emphasized that the mere existence of an interim order for ten years did not warrant regularization of their employment. Consequently, the Supreme Court set aside the High Court's order and upheld the termination, allowing the appeal without costs.
Headnote
A) Employment Law - Termination of Service - Lawfulness of Termination - Industrial Disputes Act, 1947, Section 2(s) - The court examined the legality of the termination of trainees and found it lawful, emphasizing that the respondents were appointed for a fixed period and salary. The court held that the interim order could not justify their regularization as employees, leading to the conclusion that the order of the learned Single Judge was not sustainable (Paras 1-4).
Issue of Consideration
Whether the termination of trainees was lawful and if the respondents were entitled to regularization of employment.
Final Decision
The Supreme Court set aside the impugned order of the High Court and upheld the termination of the respondents, allowing the appeal without costs.
Law Points
- Employment law
- termination of service
- Industrial Disputes Act
- regularization of employment



