High Court of Gujarat Dismisses Petition by Contractual Employees Seeking Reinstatement Under MGNREGA Scheme. Termination Orders Upheld as Based on Breach of Contract Terms with Natural Justice Observed Through Show-Cause Notices, No Stigmatic Character Found Under Contractual Employment Conditions.

High Court: Gujarat High Court Bench: AHEMDABAD
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Case Note & Summary

The dispute involved two petitioners who were contractual employees appointed under the MGNREGA scheme by the respondent authorities. Petitioner No.1's services were terminated on 05.12.2015 due to unsatisfactory work and negligence, while petitioner No.2's services were terminated on 10.02.2016 for prolonged unauthorized absence. The petitioners filed a writ petition in 2019 under Article 226 of the Constitution of India seeking reinstatement, contending that the termination orders were stigmatic and violated principles of natural justice as no departmental inquiry was conducted. The respondents argued that the petitioners were contractual employees whose termination was based on breach of contract terms, with petitioner No.1 having received two show-cause notices which he did not reply to. The court analyzed the facts and found that petitioner No.1 had been given reasonable opportunity through show-cause notices, thus observing natural justice. Regarding petitioner No.2, the court found his prolonged absence constituted breach of contract terms. The court held that the termination orders were not stigmatic and were justified based on contractual breaches. The petition was dismissed with no order as to costs.

Headnote

A) Service Law - Contractual Employment Termination - Natural Justice Compliance - MGNAREGA Scheme - Petitioners were contractual employees terminated for unsatisfactory work and absenteeism - Court found petitioner No.1 received two show-cause notices but did not reply, thus principles of natural justice were observed - Held that termination was justified as reasonable opportunity was given (Paras 8-10).

B) Service Law - Contractual Employment Termination - Stigmatic Orders - MGNAREGA Scheme - Petitioners argued termination orders were stigmatic requiring inquiry - Court examined termination orders and found they were based on breach of contract terms, not stigmatic - Held that termination for breach of contractual conditions does not require departmental inquiry when natural justice is observed (Paras 11-12).

Issue of Consideration: Whether the termination of contractual employees under MGNREGA scheme without departmental inquiry violated principles of natural justice and whether the termination orders were stigmatic

Final Decision

Petition dismissed. Rule discharged. No order as to costs.

2026 LawText (GUJ) (01) 546

R/Special Civil Application No. 5085 of 2019

2026-01-08

Maulik J. Shelat J.

2026:GUJHC:1178

MR MJ Mehta, MR Saurabh J Mehta, MR. Siddhartha Rami, MR Manish J Patel

Miteshkumar Mahendrabhai Vyas & Anr.

The State of Gujarat & Ors.

Nature of Litigation: Writ petition under Article 226 of the Constitution of India seeking reinstatement of contractual employees

Remedy Sought

Petitioners sought writ of mandamus directing respondents to reinstate them at their original posts in MGNREGA Scheme

Filing Reason

Petitioners were aggrieved by termination orders dated 05.12.2015 and 10.02.2016

Previous Decisions

Reference made to judgment in Special Civil Application no.13621 of 2014 and allied matters including Special Civil Application No. 13558 of 2014 and Special Civil Application No. 12727 of 2014

Issues

Whether termination of contractual employees without departmental inquiry violated principles of natural justice Whether termination orders were stigmatic requiring inquiry before dismissal

Submissions/Arguments

Petitioners argued termination orders were stigmatic and violated natural justice as no inquiry was conducted Respondents argued termination was based on breach of contract terms, with show-cause notices given to petitioner No.1, and petitioners were contractual employees not entitled to departmental inquiry

Ratio Decidendi

Termination of contractual employees based on breach of contract terms does not violate natural justice when reasonable opportunity is given through show-cause notices, and such termination orders are not stigmatic when based on contractual breaches rather than disciplinary grounds.

Judgment Excerpts

"YOUR LORDSHIPS may be pleased to issue a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction directing the respondents to immediately reinstate the petitioners at their original post" "if the work of the petitioner is not found satisfactory, then contract would stand terminated automatically" "plain reading of the said order would not remotely suggest that it is stigmatic"

Procedural History

Petition filed in 2019, heard with consent of parties for final hearing, rule made returnable forthwith, service of notice waived by respondents

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