Case Note & Summary
The petitioner, Vasant Lalchand Shah, joined the National Textile Corporation (NTC) in December 1978 as a Weaving Master. He had prior experience of over two decades in various mills. In July 1982, he was promoted to Production Manager and posted at Mumbai Textile Mills, where he worked until May 1988. He was then transferred to Podar Mills on the same terms and continued working there. On 5th July 1990, the petitioner received an order from respondent No.1 informing him that he was being prematurely retired under the Premature Retirement Scheme with effect from 7th July 1990. The petitioner challenged this order by filing a writ petition. The court noted that the Board of Directors, in its meeting No.109 held on 13.6.1988, had considered an amendment to the Corporation's Premature Retirement Scheme. However, the order of premature retirement was passed without any application of mind and without considering the petitioner's representation. The court held that the order violated principles of natural justice and was arbitrary. Consequently, the court quashed the order dated 5th July 1990 and directed the respondents to reinstate the petitioner with continuity of service and all consequential benefits. The petition was allowed.
Headnote
A) Service Law - Premature Retirement - Natural Justice - The petitioner challenged the order of premature retirement passed by the National Textile Corporation under its Premature Retirement Scheme. The court held that the order was passed without application of mind and without considering the petitioner's representation, thus violating principles of natural justice. The court quashed the order and directed reinstatement with continuity of service and consequential benefits. (Paras 1-5) B) Service Law - Premature Retirement - Application of Mind - The court found that the order of premature retirement was passed mechanically without any proper consideration of the petitioner's case. The Corporation did not apply its mind to the facts and circumstances, rendering the order arbitrary and illegal. (Paras 4-5)
Issue of Consideration
Whether the order of premature retirement passed against the petitioner is valid and in accordance with law, and whether the principles of natural justice were violated.
Final Decision
The court quashed the order dated 5th July 1990 and directed the respondents to reinstate the petitioner with continuity of service and all consequential benefits. The petition was allowed.
Law Points
- Natural justice
- Premature retirement
- Application of mind
- Consideration of representation
- Violation of principles of natural justice





