High Court of Karnataka Quashes Termination of Junior Officers in NMDC for Violation of Natural Justice. Termination Order Set Aside as Employer Failed to Provide Opportunity of Hearing Before Dismissal.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Accused
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Case Note & Summary

The case involves five writ petitions filed by Junior Officers (Mines) of National Mineral Development Corporation Ltd. (NMDC), a Government of India enterprise, challenging their termination orders dated 15.06.2015. The petitioners were appointed as Junior Officers on probation and were terminated without any prior notice, show cause, or disciplinary enquiry. The petitioners contended that the termination was arbitrary, illegal, and in violation of principles of natural justice and Article 14 of the Constitution. The respondents argued that the petitioners were probationers and their services were terminated in terms of the appointment order, which did not require any enquiry. The court examined the facts and found that the termination was not based on any misconduct but was a simple termination without any reason. The court held that even a probationer has a right to be heard before termination if the termination is punitive or stigmatic. Since the termination order did not disclose any reason and was passed without any enquiry, it was held to be violative of natural justice. The court relied on the principle that an order of termination without enquiry is arbitrary and cannot be sustained. The court allowed the writ petitions, quashed the termination orders, and directed reinstatement of the petitioners with continuity of service and all consequential benefits, including back wages, within eight weeks.

Headnote

A) Service Law - Termination - Natural Justice - Audi Alteram Partem - Constitution of India, Article 14, Article 21 - Petitioners were Junior Officers in NMDC Ltd. terminated by order dated 15.06.2015 without any enquiry or show cause notice - Court held that termination without affording opportunity of hearing is arbitrary and violative of principles of natural justice - Held that even a probationer or temporary employee is entitled to protection against arbitrary termination (Paras 1-10).

B) Service Law - Public Sector Undertaking - Termination - Enquiry - NMDC Ltd. is a Government Company under Article 12 of Constitution - Termination of employees without disciplinary proceedings is illegal - Court directed reinstatement with continuity of service and consequential benefits (Paras 11-15).

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Issue of Consideration

Whether the termination of the petitioners by the respondent Corporation without holding any enquiry and without affording an opportunity of hearing is violative of principles of natural justice and Article 14 of the Constitution of India.

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Final Decision

Writ petitions allowed. Termination orders dated 15.06.2015 quashed. Respondents directed to reinstate petitioners with continuity of service and all consequential benefits including back wages within eight weeks.

Law Points

  • Principles of natural justice
  • audi alteram partem
  • termination without enquiry
  • violation of Article 14
  • Article 21
  • Article 311(2) of Constitution of India
  • service law
  • public sector undertaking
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Case Details

2016 LawText (KAR) (01) 31

Writ Petition No.105840/2015 C/w W.P. No.105836, 105841, 105842 & 105843 of 2015 (S-DIS)

2016-01-25

B.S.PATIL

K.Sreedhar Associates, H.M.Dharigond, S.C.Bhuti, P.Nanja Reddy, K.Raghavacharyulu, Vijay M.Malali

Khajbabu Sheik, P.Thanesh Kumar, Venkata Sudarshan, and others

National Mining Development Corporation Ltd. and others

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Nature of Litigation

Writ petitions under Articles 226 and 227 of the Constitution of India challenging termination orders.

Remedy Sought

Quashing of termination orders dated 15.06.2015 and direction to continue services with consequential benefits.

Filing Reason

Termination of petitioners from service without any enquiry or opportunity of hearing.

Issues

Whether termination without enquiry and without affording opportunity of hearing is violative of principles of natural justice? Whether the petitioners, being probationers, are entitled to protection against arbitrary termination?

Submissions/Arguments

Petitioners argued that termination was arbitrary, illegal, and in violation of natural justice as no show cause notice or enquiry was held. Respondents argued that petitioners were probationers and termination was in terms of appointment order, no enquiry required.

Ratio Decidendi

Termination of an employee without affording an opportunity of hearing is arbitrary and violative of principles of natural justice, even if the employee is a probationer, unless the termination is in accordance with the terms of appointment and not punitive or stigmatic.

Judgment Excerpts

The impugned termination order is set aside. The respondents are directed to reinstate the petitioners with continuity of service and all consequential benefits.

Acts & Sections

  • Constitution of India: Articles 14, 21, 226, 227, 311(2)
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Related Judgement
High Court High Court of Karnataka Quashes Termination of Junior Officers in NMDC for Violation of Natural Justice. Termination orders set aside as no opportunity of hearing was given before termination during probation period.
Related Judgement
High Court High Court of Karnataka Quashes Termination of Junior Officers in NMDC for Violation of Natural Justice. Termination Order Set Aside as Employer Failed to Provide Opportunity of Hearing Before Dismissal.