Case Note & Summary
The dispute arose from the termination and subsequent re-engagement of Assistant Engineers appointed by Uttar Pradesh Jal Nigam through a recruitment process later found to be tainted by corruption. The petitioners were initially terminated by order dated 11.8.2017, which was set aside by the High Court of Judicature at Allahabad on 28.11.2017 for violation of natural justice, with directions to allow them to work and pay regular salary, while granting liberty to pass a fresh order after hearing. The Supreme Court upheld this judgment on 15.11.2018 but clarified that the competent authority could pass a fresh, reasoned order. Pursuant to this, the Chief Engineer issued order dated 4.12.2018 re-engaging the petitioners without arrears, and later order dated 2.3.2020 annulling their appointments based on investigation reports including internal inquiries, expert reports from IIIT Allahabad and IIT Kanpur, CFSL report, and SIT recommendation, citing the selection process as void ab initio due to corruption. The petitioners filed contempt petitions alleging wilful disobedience of the Supreme Court's judgment and violation of natural justice, and a writ petition seeking quashing of the termination order with reinstatement and back wages. The core legal issues were whether the respondents' orders constituted contempt of court and whether the termination violated natural justice principles. The petitioners argued that the orders disregarded the Court's directions and were passed without hearing, while the respondents contended they acted within the liberty granted and based decisions on investigation findings. The Court analyzed that the respondents exercised the liberty reasonably, relying on substantive investigation reports that indicated corruption making segregation of candidates impossible, and that the petitioners had been heard in earlier proceedings, thus no fresh hearing was required. The Court held that no contempt was made out as there was no wilful disobedience, and the termination was justified given the tainted recruitment process. Consequently, the contempt petitions and writ petition were dismissed, upholding the orders dated 4.12.2018 and 2.3.2020.
Headnote
A) Administrative Law - Natural Justice - Opportunity of Hearing - Not mentioned - The petitioners challenged the termination order dated 2.3.2020 for being passed without affording opportunity of hearing - The Court examined whether the order violated natural justice principles as directed in earlier judgments - Held that the order was based on investigation reports and expert findings, and the petitioners had been heard in earlier proceedings, so no fresh hearing was required (Paras 7, 14-16). B) Contempt of Court - Wilful Disobedience - Contempt of Courts Act, 1971 - The contempt petitions alleged wilful disobedience of the Supreme Court's judgment dated 15.11.2018 through orders dated 4.12.2018 and 2.3.2020 - The Court analyzed whether the respondents' actions constituted contempt - Held that the respondents acted within the liberty granted by the Court and based orders on investigation findings, so no contempt was made out (Paras 3, 6-7, 13-16). C) Employment Law - Termination of Service - Void Ab Initio Appointment - Not mentioned - The respondent corporation terminated appointments citing corruption in the recruitment process making it void ab initio - The Court considered whether the termination was justified based on investigation reports - Held that the termination was valid as the selection process was tainted by corruption and could not be segregated into tainted and untainted candidates (Paras 4-5, 14-16). D) Judicial Review - Liberty to Pass Fresh Order - Supreme Court's judgment dated 15.11.2018 - The Supreme Court had granted liberty to the competent authority to pass a fresh, reasoned order in accordance with law - The Court examined whether the orders dated 4.12.2018 and 2.3.2020 were within this liberty - Held that the respondents validly exercised this liberty based on investigation reports and expert findings (Paras 2, 4, 14-16).
Issue of Consideration
Whether the orders dated 4.12.2018 and 2.3.2020 passed by the Chief Engineer, Uttar Pradesh Jal Nigam, Lucknow, constituted wilful disobedience of the Supreme Court's judgment dated 15.11.2018 and violated principles of natural justice
Final Decision
The Supreme Court dismissed the contempt petitions and writ petition, upholding the orders dated 4.12.2018 and 2.3.2020, finding no contempt or violation of natural justice
Law Points
- Contempt of court requires wilful disobedience
- natural justice principles apply to administrative orders
- courts can examine procedural fairness in termination decisions
- liberty granted by court must be exercised reasonably



