Case Note & Summary
The case involved a dispute between the Punjab State Electricity Board and an employee, Leela Singh, regarding the termination of his services. The respondent was appointed as a Lineman based on an experience certificate, which was later questioned in a vigilance enquiry. Following a representation by the respondent regarding his promotion and benefits, the Administrative Member of the Board allowed his continuation in service with a deduction of one year’s service. However, upon discovering similar issues with another employee, the Board decided to terminate the services of similarly placed employees, including the respondent. The respondent challenged this termination in the Punjab and Haryana High Court, which ruled in his favor, leading to the Board's appeal to the Supreme Court. The Supreme Court examined whether the termination was justified, emphasizing that the charge of fraud needed to be substantiated through a formal departmental proceeding rather than relying on decisions made in other cases. The court concluded that the termination was unjust and directed the Board to initiate proper proceedings against the respondent while also setting aside the earlier administrative order. The court ordered the respondent's reinstatement with a suspension and mandated the refund of deducted salary. The appeal was allowed with these directions.
Headnote
A) Employment Law - Termination of Service - Validity of Termination - Article 142 of the Constitution of India - The court held that the termination of the respondent's services based on a decision regarding another employee was invalid and required a proper departmental proceeding to prove the allegations of fraud. The court directed the Board to initiate such proceedings and set aside both the termination order and the earlier administrative order. (Paras 4-8)
Issue of Consideration
Whether the Board could terminate the services of the respondent based on the alleged fraud in obtaining appointment.
Final Decision
The Supreme Court set aside the termination order and the earlier administrative order, directing the Board to initiate departmental proceedings against the respondent and allowing for his reinstatement under suspension.
Law Points
- Departmental proceedings
- termination of service
- fraud in appointment
- Article 142 of the Constitution of India


