Supreme Court Allows Bank of Baroda's Appeal Against High Court Order Quashing Termination of Probationary Employee. Unsatisfactory Performance and Misconduct During Probation Justify Termination Without Stigma.

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Case Note & Summary

The present appeal arises from a judgment of the Calcutta High Court which allowed the writ petition of the respondent-employee and quashed his termination order. The respondent was appointed as Assistant General Manager (Networking) on probation for one year, extendable by another year. He joined on 05.01.2004. During his probation, he was suspended on 15.01.2005 for allegedly attempting to remove four boxes of confidential tender documents from his office. His probation was extended for six months on 16.02.2005 due to unsatisfactory work. After revocation of suspension on 12.04.2005, the Bank terminated his services on 20.04.2005 on the ground of unsatisfactory performance and conduct. The respondent challenged the termination before the High Court, which quashed it on the ground that it was based on irrelevant considerations. The Supreme Court, in appeal, examined the scope of judicial review in matters of termination of probationary employees. It held that the employer is the best judge of the suitability of a probationer and the court cannot substitute its own assessment. The termination was based on the employee's overall performance and the misconduct incident, which were relevant considerations. The High Court had erred in interfering with the termination order. Accordingly, the Supreme Court allowed the appeal, set aside the High Court's judgment, and dismissed the writ petition.

Headnote

A) Service Law - Probationary Employee - Termination During Probation - Unsatisfactory Performance - The termination of a probationary employee on the ground of unsatisfactory performance and misconduct is permissible if the employer is not satisfied with the employee's work and conduct during the probation period. The court held that the High Court erred in quashing the termination order by substituting its own assessment of the employee's performance, as the employer is the best judge of suitability. (Paras 1-10)

B) Service Law - Judicial Review - Termination of Probationer - Irrelevant Considerations - The court held that the termination order was not vitiated by irrelevant considerations as the Bank had considered the employee's overall performance and conduct, including the incident of attempting to remove confidential files. The High Court's finding that the termination was based on irrelevant considerations was set aside. (Paras 5-10)

C) Service Law - Probation - Extension of Probation - The extension of probation for six months due to unsatisfactory work does not automatically entitle the employee to confirmation. The employer retains the right to terminate the probationer if performance remains unsatisfactory. (Paras 3-4)

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Issue of Consideration

Whether the termination of a probationary employee on the ground of unsatisfactory performance and misconduct is vitiated by irrelevant considerations and whether the High Court erred in quashing the termination order.

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Final Decision

The Supreme Court allowed the appeal, set aside the impugned judgment of the High Court, and dismissed the writ petition filed by the respondent-employee.

Law Points

  • Probationary employee
  • termination during probation
  • unsatisfactory performance
  • misconduct
  • irrelevant considerations
  • judicial review
  • Bank of Baroda Officer Employees' (Discipline and Appeal) Regulations
  • 1976
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Case Details

2026 INSC 589

Civil Appeal No. 4814 of 2017

2026-01-01

J.K. Maheshwari

2026 INSC 589

General Manager, Bank of Baroda and Others

Ashok Kumar Singh and Others

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Nature of Litigation

Civil appeal against High Court judgment quashing termination of a probationary employee.

Remedy Sought

The appellant-Bank sought to set aside the High Court's order and uphold the termination of the respondent-employee.

Filing Reason

The Bank challenged the High Court's decision that quashed the termination order on the ground of irrelevant considerations.

Previous Decisions

The Single Bench of Calcutta High Court allowed the writ petition and quashed the termination order. The Division Bench dismissed the Bank's appeal.

Issues

Whether the termination of a probationary employee on grounds of unsatisfactory performance and misconduct is vitiated by irrelevant considerations. Whether the High Court erred in interfering with the employer's decision to terminate a probationer.

Submissions/Arguments

The appellant-Bank argued that the termination was based on the employee's unsatisfactory performance and misconduct, which are relevant considerations. The respondent-employee argued that the termination was based on irrelevant considerations and was punitive in nature.

Ratio Decidendi

The employer is the best judge of the suitability of a probationary employee. Termination during probation on grounds of unsatisfactory performance and misconduct is permissible and not subject to judicial review unless vitiated by mala fides or arbitrariness. The High Court erred in substituting its own assessment of the employee's performance.

Judgment Excerpts

The termination of a probationary employee on the ground of unsatisfactory performance and misconduct is permissible if the employer is not satisfied with the employee's work and conduct during the probation period. The High Court erred in quashing the termination order by substituting its own assessment of the employee's performance, as the employer is the best judge of suitability.

Procedural History

The respondent-employee filed a writ petition before the Calcutta High Court challenging his termination. The Single Bench allowed the petition and quashed the termination order. The Bank appealed to the Division Bench, which dismissed the appeal. The Bank then appealed to the Supreme Court.

Acts & Sections

  • Bank of Baroda Officer Employees' (Discipline and Appeal) Regulations, 1976:
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Supreme Court Supreme Court Allows Bank of Baroda's Appeal Against High Court Order Quashing Termination of Probationary Employee. Unsatisfactory Performance and Misconduct During Probation Justify Termination Without Stigma.
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