Case Note & Summary
The case involved a dispute between the petitioners, who were appointed as Trust Executive Officers under the Punjab Town Improvement Act, 1922, and the State Government of Punjab regarding the termination of their services. The petitioners were appointed on May 28, 1979, with a specified probation period of one year, which they completed satisfactorily, as evidenced by the release of increments. However, on September 25, 1980, the State Government terminated their services, citing the dissolution of Trusts and claiming their performance was unsatisfactory. The petitioners challenged this action under Article 32 of the Constitution, arguing that the termination was arbitrary and violated their constitutional rights. The State Government contended that the probation period was actually two years, as per Rule 9 of the 1978 Rules, and that the termination was justified due to the dissolution of Trusts. The Supreme Court analyzed the legal framework surrounding probation, determining that the State Government had the discretion to prescribe a shorter probation period than two years. The court held that the one-year probation period was valid, and the petitioners had satisfactorily completed it. The court found the termination arbitrary, as the Trusts continued to function and other officers were appointed, indicating that the petitioners' services were still needed. Ultimately, the court ruled in favor of the petitioners, emphasizing that their termination was not justified and violated their rights under the Constitution.
Headnote
A) Service Law - Probationary Period - Discretion of Appointing Authority - The State Government has discretion to prescribe a probation period shorter than the maximum set out in the Punjab Trust Services (Recruitment and Conditions of Service) Rules, 1978 - The court held that the prescribed period of probation of one year was valid and not a clerical error, as the petitioners had satisfactory performance during this period (Paras 525-530). B) Constitutional Law - Arbitrary Termination - The termination of the petitioners' services was arbitrary and violated Articles 14 and 16 of the Constitution - The court found that the dissolution of Trusts was used as a device to terminate the petitioners' services without just cause, as their performance was satisfactory (Paras 534-535).
Issue of Consideration
Whether the State Government had the authority to terminate the services of the petitioners after they completed their probation period.
Final Decision
The Supreme Court held that the termination of the petitioners' services was arbitrary and violated their constitutional rights under Articles 14 and 16. The court ruled that the prescribed probation period was one year, which the petitioners had satisfactorily completed, and thus their services could not be terminated without just cause.
Law Points
- Probationary period
- Discretion of appointing authority
- Service jurisprudence
- Arbitrary termination
- Constitutional rights



