Bombay High Court Quashes Termination of Hostel Superintendents in Tribal Area — Retrenchment Without Notice and Without Following Government Resolutions Violates Principles of Natural Justice. Termination Order Casting Stigma Without Inquiry Set Aside; Reinstatement with Back Wages Granted.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioners, Smt. Kokila Gujrya Padvi and Divlya @ Dinkar Rotu Padavi, were employed as Hostel Superintendents by the Adivasi Satpuda Shikshan Prasarak Mandal, a trust operating hostels in tribal areas of Nandurbar district. Their services were terminated by a letter dated 17/12/2009 with effect from 21/12/2009. The petitioners challenged the termination on the grounds that it was stigmatic, without any notice or opportunity of hearing, and contrary to the Government Resolutions dated 15/07/1995 and 16/03/1998 which regulate the service conditions of employees in such aided institutions. The court found that the termination order was stigmatic and passed without following the principles of natural justice. The court held that the Government Resolutions were binding on the respondent Trust and that the termination without notice or compensation was illegal. The court set aside the termination orders and directed reinstatement with continuity of service and back wages from the date of termination till reinstatement, to be paid within eight weeks. The court also awarded costs of Rs. 5,000 to each petitioner.

Headnote

A) Service Law - Termination - Stigmatic Order - Termination order casting stigma on employee without holding any inquiry or giving opportunity of hearing is violative of principles of natural justice - Held that such termination is illegal and liable to be set aside (Paras 3-5).

B) Service Law - Government Resolutions - Binding Nature - Government Resolutions dated 15/07/1995 and 16/03/1998 regulating service conditions of employees in aided institutions are binding on the employer - Held that termination without following the procedure prescribed therein is unsustainable (Paras 3-5).

C) Service Law - Retrenchment - Notice and Compensation - Termination of service without giving one month's notice or pay in lieu thereof and without payment of retrenchment compensation as per Section 25F of the Industrial Disputes Act, 1947 is illegal - Held that the petitioners are entitled to reinstatement with continuity of service and back wages (Paras 5-6).

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Issue of Consideration

Whether the termination of the petitioners by the respondent Trust without following the procedure under the Government Resolutions dated 15/07/1995 and 16/03/1998 and without giving any notice or opportunity of hearing is legal and valid.

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Final Decision

The court allowed both writ petitions, quashed the termination orders dated 17/12/2009, and directed reinstatement of the petitioners with continuity of service and full back wages from the date of termination till reinstatement, to be paid within eight weeks. Costs of Rs. 5,000 each were awarded to the petitioners.

Law Points

  • Termination without notice
  • violation of natural justice
  • stigmatic order
  • government resolutions binding on aided institutions
  • retrenchment without compensation
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Case Details

2014 LawText (BOM) (10) 9

Writ Petition No.552 of 2014 with Writ Petition No.560 of 2014

2014-10-01

Ravindra V. Ghuge

Mr. A.R. Syed h/f Mr. S.P. Brahme for petitioners; Mr. C.R. Deshpande for respondent No.1; Mr. R.M. Jain for respondent Nos. 2 and 3; Mrs. R.K. Ladda, A.G.P. for respondent/State

Smt. Kokila Gujrya Padvi and Divlya @ Dinkar Rotu Padavi

The President, Adivasi Satpuda Shikshan Prasarak Mandal, Dhadgaon; The Chief Executive Officer, Zilla Parishad, Nandurbar; The Social Welfare Officer, Social Welfare Department, Zilla Parishad, Nandurbar

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Nature of Litigation

Writ petitions challenging termination of service by an aided educational trust.

Remedy Sought

Petitioners sought quashing of termination orders and reinstatement with continuity of service and back wages.

Filing Reason

Petitioners were terminated by letter dated 17/12/2009 without notice or opportunity of hearing, and the termination order was stigmatic.

Issues

Whether the termination of the petitioners without following the procedure under Government Resolutions dated 15/07/1995 and 16/03/1998 is legal. Whether the termination order being stigmatic without inquiry violates principles of natural justice.

Submissions/Arguments

Petitioners argued that their termination was stigmatic, without notice or hearing, and contrary to binding Government Resolutions. Respondent No.1 argued that the petitioners had retired on attaining the age of superannuation and that the termination was not stigmatic.

Ratio Decidendi

Termination of service without following the procedure prescribed in binding Government Resolutions and without giving any notice or opportunity of hearing, especially when the order is stigmatic, is illegal and violative of principles of natural justice. Such termination amounts to retrenchment under Section 25F of the Industrial Disputes Act, 1947, and requires notice and compensation.

Judgment Excerpts

The purported order of retirement is stigmatic in nature. The Government Resolution dated 15/07/1995 and 16/03/1998 are binding on the respondent Trust. The termination without notice or compensation is illegal.

Procedural History

The petitioners filed writ petitions in the Bombay High Court challenging their termination. The court heard both petitions together and delivered judgment on 01/10/2014.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 25F
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