Case Note & Summary
The dispute arose from the termination of a Class-IV employee who was promoted to the position of Lower Division Clerk (L.D.C.) under the condition of passing a requisite test. The appellant joined the service in 1981 and was promoted in 1982 due to a shortage of L.D.C.s, with a clear stipulation that failure to pass the test would result in termination. In 1995, after failing the test, the appellant's service was terminated, which he challenged unsuccessfully. The appellant argued that he should not have been treated as out of service and was entitled to continue as a Class-IV employee. The High Court of Rajasthan upheld the termination based on the appointment order. However, the Supreme Court found this reasoning flawed, stating that the appellant should have been reverted to his original position rather than terminated. The court directed the High Court to reinstate the appellant as a Class-IV employee within four weeks, clarifying that he would not be entitled to any arrears of salary for the period he was out of service. The High Court was also given the liberty to post him at any location as a Class-IV employee. The appeal was disposed of without costs.
Headnote
A) Employment Law - Service Termination - Conditions of Promotion - Not applicable to termination without reverting - The appellant was promoted to L.D.C. on the condition of passing a test, but failing the test should not lead to termination from service altogether. The court held that the appellant should be reinstated as a Class-IV employee, as he could have been reverted instead of terminated. Held that the High Court's decision was incorrect (Paras 2-4).
Issue of Consideration
Whether the appellant was entitled to continue as a Class-IV employee after failing the requisite test for L.D.C.
Final Decision
The Supreme Court directed the reinstatement of the appellant as a Class-IV employee within four weeks, clarifying that he would not receive any arrears of salary for the period he was out of service.
Law Points
- Employment law
- service termination
- promotion conditions
- reinstatement
- employee rights


