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Dr. C. Srihari () v. The Madras Dock Labour Board And Another (S).
Structured Summary of the Opinion
Factual and Procedural Background
The appellant was appointed (1 April 1968) to one of two newly created posts of Assistant Surgeon when medical benefits were extended to family members of workers of the Dock Labour Board. The other post was filled by Smt. Helon C. Kumar by proceedings dated 28 March 1968. The post carried specified salary and allowances. The posts were made permanent in July 1970.
The Dock Workers (Regulation of Employment) Act, 1948 and the Madras Dock Workers (Regulation of Employment) Scheme, 1956 governed creation, appointment and termination of employees. Clause 6 of the Scheme (as described in the opinion) dealt with prior Central Government approval for posts carrying certain maximum salaries.
The appellant was assigned, temporarily, the duties of Medical Officer on 2 January 1970. He sought a charge allowance which was refused; he then asked to be relieved from the additional duties and was relieved. On 30 January 1971 the appellant was served with an order terminating his services with effect from 1 March 1971.
The appellant first approached authorities under the Tamil Nadu Shops and Establishments Act (appeal under S.41 and petition under S.51), but the Commissioner for Labour sustained an objection that the Dock Labour Board did not fall within that Act. The appellant then petitioned the second respondent (24 April 1974) to set aside the termination; the Government declined to interfere (communication dated 3 May 1975 as described). Attempts at negotiated settlement were made by the Board (offers of Rs. 1,500 and later Rs. 5,000), which the appellant declined.
The appellant invoked this Court's writ jurisdiction under Article 226 seeking certiorari/mandamus to quash the second respondent's refusal to interfere and to direct reinstatement with back wages and benefits. The writ petition was dismissed by a single Judge (Mohan, J.), and the appellant appealed to the present Bench.
Legal Issues Presented
- Whether the order of termination was invalid because (a) the authority that appointed the appellant (the Board or Chairman) did not pass the termination order and (b) prior approval of the Central Government (as required by Clause 6 of the Scheme) was not obtained before termination.
- Whether the termination was discriminatory and therefore violative of the principles of natural justice and Article 16 of the Constitution of India.
- Whether the termination was in the nature of punishment (disciplinary) and therefore invalid because no inquiry was held and no opportunity was given to the appellant to explain.
Arguments of the Parties
Appellant's Arguments
- The Dock Workers Scheme (Clause 6) required prior approval of the Central Government for creation and appointment to posts whose maximum salary (exclusive of allowances) reached a specified figure; because the Assistant Surgeon post fell in that category, the Board could not validly terminate service without prior Central approval.
- By operation of S.16 of the General Clauses Act (referred to by counsel), the authority that had power to appoint would alone have the power to terminate; the appointing authority did not pass the termination order.
- The termination was discriminatory: another Assistant Surgeon (Smt. Helon C. Kumar) was retained; allowances were denied to the appellant but granted in similar cases; younger doctors were given pay/allowances equivalent to the appellant despite differences in age, experience and knowledge.
- The order of termination was punitive: adverse remarks existed in the file (not referred to in the termination order or the respondent's counter affidavit) and therefore the appellant should have been afforded a disciplinary inquiry and an opportunity to explain.
- Counsel relied on decided cases (including Rayalappy v. Madhayiamma, Satramdas v. Dy. Custodian, Mohd. Ilyah v. State of Maharashtra, and Delhi Transport Union v. B.B.L Hojolay) in support of various points (appointment authority, rights determined by conditions at appointment, and related propositions).
Respondents' Arguments
- First respondent: The appellant's service was contractual and terminable by 24 hours' notice as per the appointment order; accordingly the appellant cannot treat his appointment as statutory to invoke writ relief. The writ petition was filed after an inordinate delay (four years) and was time-barred on that basis.
- First respondent: Clause 6 of the Dock Workers Scheme was amended in 1969 (the opinion records that the amendment substituted the words "Rs. one thousand and above" for "Rs. eight hundred and above") and by reason of that amendment the Board could create posts and appoint persons without prior Central Government approval for posts within the permitted limit; the Chairman decided the termination and the Board ratified the action at its meeting on 29/30 March 1971.
- Second respondent: The prior sanction of the Central Government was not required for terminating the appellant's services and the impugned order did not suffer from any mistake or error.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Rayalappy v. Madhayiamma | Illustration of a Federal Court matter concerning removal of a receiver appointed by the Court (issue on power to remove where rule speaks only of appointment). | The Court held this authority was not helpful to the appellant's case because it dealt with a different context (removal of receiver) and not with temporary contractual appointments like the appellant's. |
| Satramdas v. Dy. Custodian (Supreme Court) | Principle that writs are issued to enforce statutory duties, not contractual duties; cases dealing with permanent appointments. | The Court relied on the principle that the appellant's appointment was contractual (temporary), so the authority in Satramdas did not assist the appellant in claiming statutory protection. |
| Mohd. Ilyah v. State of Maharashtra | Authority dealing with permanent appointments (contextually cited). | The Court said this and similar cases relating to permanent appointments were not applicable to the appellant's temporary contractual appointment. |
| S.6 of the General Clauses Act (statutory provision) | Interpretive principle offered by appellant: the authority that can appoint should be the authority that can terminate. | The Court considered the appellant's reliance on the legal proposition but concluded the contractual nature of the appointment governed the outcome; the statutory provision did not yield the appellant a right to challenge the termination under the facts. |
| Delhi Transport Union v. B.B.L. Hojolay | Proposition relied upon by appellant that rights of an employee should be determined in accordance with conditions prevailing when he was appointed. | The Court recorded the reliance by the appellant but ultimately did not accept the permanent/statutory characterization the appellant sought to place on his appointment. |
| Corporation of Calcutta v. A.K. Sen | Definition of "appointing authority" as the authority competent at the time the order of termination was made. | The respondents relied on this case; the Court considered it but still found the appellant's contractual position decisive. |
| Mysore State v. M.K. Ali Beg | Rule that when the initial order is a nullity, subsequent ratification will not cure the defect. | The Court noted the case but found it inapplicable because the impugned initial order was not a nullity and the Board had applied its mind and ratified the action. |
| Champaklal Chimanlal Shah v. Union of India | Authority for the proposition that when an appointment provides for termination by notice for temporary employees, the employer may terminate by giving such notice; employee cannot successfully claim discrimination to set aside termination. | The Court applied this principle to hold that the appellant's contractual right to terminate by notice could be validly exercised and that the discrimination argument did not sustain the writ challenge. |
| Manager, Govt. Branch Press v. Belliappa | Proposition cited by appellant that even temporary government servants arbitrarily discriminated against may be entitled to constitutional protection (Arts. 14 and 16). | The Court observed this reliance but held the case was distinguishable because the appellant's services were contractual; therefore Belliappa did not avail the appellant. |
| Palanichami v. Canara Bank | Authority addressing employer's power to terminate employment under contract; cited in support of the proposition that contractual termination is not ordinarily amenable to writ relief. | The Court cited this as one of the authorities supporting the view that termination under a contractual power is not vulnerable to challenge in a writ petition on the grounds advanced. |
| V. Ramiah v. State Bank of India | Division Bench decision holding that an employer may either punish after enquiry or legitimately terminate employment under contract for valid reasons; such an exercise of contractual power is not necessarily challengeable in a writ petition. | The Court cited this as supporting authority for the proposition that a contractual termination may be validly exercised without being equated to disciplinary action. |
| Municipal Corporation v. P.S. Mahenkar / P.S. Molvenkar | Authority that termination under a standing order after notice cannot be treated as punitive even if records show unsatisfactory service; and a precedent for granting compensation or ex gratia in appropriate cases. | The Court said it was inclined to follow the course adopted in this decision and, on that basis and in view of the appellant's long litigation and offers made earlier, ordered an ex gratia payment of Rs. 10,000 though the appeal was dismissed. |
Court's Reasoning and Analysis
The Court proceeded by examining (a) the nature of the appellant's appointment, (b) the effect of Clause 6 of the Dock Workers Scheme, (c) the authority by which the termination was communicated and subsequently ratified, and (d) whether the termination was punitive or discriminatory such as to require an inquiry or to render the termination invalid.
- Nature of appointment: The Court emphasized that the appellant was appointed on a temporary, contractual basis and that the appointment letter expressly provided that the service was terminable by 24 hours' notice. Because the appointment was contractual and temporary, many of the appellant's statutory-style claims (seeking enforcement by writ) were limited in force.
- Clause 6 and prior approval: The Court noted the appellant's reliance on Clause 6 (which initially required prior Central Government approval for posts carrying specified maximum salaries) and the appellant's argument that the termination therefore required prior approval. The respondents contended Clause 6 had been amended (in 1969) so that a higher salary threshold applied and prior approval was not required for the Assistant Surgeon post. The Court considered these competing submissions but rested the decision primarily on the contractual character of the appointment rather than on an elaborate construction of the clause amendment.
- Authority to terminate and ratification: The appellant argued that the Chairman could not delegate the power to terminate and that the Deputy Chairman alone had signed the order. The Court found no record basis for the contention; it held that the impugned order was issued by the Chairman and that the Deputy Chairman had merely signed the communication for the Chairman. The Board considered the subject at its meeting of 29/30 March 1971 and passed a resolution ratifying the action — the Court found an application of mind by the Board and therefore that the termination did not suffer on that ground. The Court distinguished cases (such as Mysore State v. M.K. Ali Beg) about nullities because the initial order was not held to be a nullity.
- Discrimination and natural justice: On the discrimination point, the Court found no support in the record and noted other officers were not parties so facts could not be established to sustain discrimination. On the natural justice/disciplinary point, although the file contained adverse remarks, the Court concluded the termination was not a disciplinary punishment but an exercise of the contractual right to terminate by notice. Thus, no formal disciplinary inquiry was necessary in the circumstances described.
- Application of authority: The Court rejected the appellant's reliance on cases dealing with permanent or statutory appointments and accepted the line of authorities (Champaklal; Palanichami; V. Ramiah; Municipal Corporation v. P.S. Mahenkar/Molvenkar) that a contractual right to terminate, properly exercised, is not ordinarily susceptible to being set aside by writ, even where records show unsatisfactory work.
- Equitable disposition: Although the Court found no merit in the appellant's legal contentions (and therefore dismissed the appeal), it took into account the long litigation, prior offers of compensation by the Board (Rs. 1,500 and Rs. 5,000) and a suggestion made during the hearing that Rs. 7,500 might be offered. Applying equitable considerations (and following the approach in Municipal Corporation v. P.S. Molvenkar), the Court directed the first respondent to pay the appellant Rs. 10,000 as an ex gratia payment within eight weeks.
Holding and Implications
APPEAL DISMISSED.
Direct consequences on the parties:
- The writ appeal was dismissed on the ground that the appellant's appointment was temporary and contractual and the termination was effected in exercise of the contractual right to terminate by notice; it was not held to be punitive disciplinary action invalidating the termination.
- The Court directed the first respondent to pay the appellant an ex gratia sum of Rs. 10,000 within eight weeks as a discretionary, equitable measure in consideration of the long course of proceedings and prior negotiations/offers; the parties were directed to bear their own costs.
- The Chief Justice recorded that no question of general importance arising in the judgment warranted leave to appeal to the Supreme Court; leave to appeal was refused.
The opinion does not purport to lay down a new general proposition of law; it applies established authorities concerning the scope of writ jurisdiction where employment is contractual and temporary and exercises equitable discretion in awarding an ex gratia payment.
Natarajan, J.:— This appeal is directed against the dismissal of the appellant's writ petition wherein he sought for the issue of writ of Certiorarified Mandamus for quashing the order of the second respondent refusing to disturb the order of dismissal passed by the first respondent and for directing the first respondent to reinstate the appellant in its service and provide back wages and other benefits to him.
2. Consequent upon the extension of medical benefits to the members of the families of the workers employed in the Dock Labour Board, two posts of Assistant Surgeons were created. The appellant was appointed to one of the two posts and for the other posts one, Smt. Helon C. Kumar was appointed by the Chairman of the Board by proceedings, dated 28th March, 1968. The posts carried a basic salary of Rs. 325, per mensem and allowances under various heads, amounting to Rs. 726, and the post was in the scale of Rs. 325-25-500-EB-30-590-EB-30-800 plus a non practising allowance of 25 per cent of the basic pay subject to a minimum of Rs. 150. The appellant joined duty on 1st April, 1968. The two posts were subsequently made permanent in July 1970.
3. The creation, appointment and termination of services of the employees in the Duck Labour Board are governed by the Dock Workers (Regulation of Employment) Act 1948, and the Madras Duck Workers (Regulation of Employment) Scheme, 1956, framed under sub-section (1) of S. 4 of the Act. At the time of the appellant's appointment, Cl. 6 of the scheme provided that in respect of pasts where the maximum salary exclusive of allowances, was Rs. 600, and above per mensem, they can be created and, likewise, appointments to those posts can be made by the Board only with the previous approval of the Central Government. The posts of Assistant Surgeon would also all within the category of posts mentioned above, because posts carried a maximum salary of more than Rs. 600 per mensem exclusive of allowances. On the 2nd January, 1970 the appellant was assigned the work of Medical Officer in the place of one Dr. Frances who had resigned his job and proceeded overseas. Some months later, the appellant asked for charge allowance of Rs. 300 per mensem in view of the additional duties he was performing, but his request was not grafted. The appellant, therefore, wanted to be relieved of his additional responsibilities, and he was accordingly relieved.
4. On 30th January, 1971, the appellant was served with an order terminating his services with effect from 1st March, 1971. The appellant filed an appeal on 2nd March, 1971 under S. 41 of the Tamil Nadu Shops and Establishments Acts, 1947, for setting aside the order of termination of his services. But an objection was raised that the Dock Labour Board would not fall within the purview of the said Act. The appellant then filed a petition under S. 51 of the said Act before the Commissioner of Labour for a decision on the question whether the Tamil Nadu Shops and Establishments Act would apply to the Dock labour Board or not. The Commissioner for Labour sustained the objection of the Board and dismissed the petition. The appellant then approached fie second respondent by means of a petition, dated 24th April, 1974 and prayed the second respondent to interfere and set aside the order of termination.
5. At this stage of matters, the Deputy Chairman sent a letter on 29th May, 1974, asking the appellant to meet him and, when the appellant met him, the Deputy Chairman suggested that the appellant may receive a sum of Rs. 1,500 as compensation and give up his attempts to seek reinstatement. The appellant declined to accept the ???. Again, on 26th December, ???, the appellant was asked by the Deputy Chairman to meet him and this time, the Deputy Chairman, offered a higher compensation of Rs. 5,00 in full settlement of the appellant's claim for reinstatement. This offer too was declined.
6. The appellant then made further representations to the second respondent, but all of them proved of no avail and on 3rd May, 1975, the second respondent sent a ??? stating that the Government saw no valid lesson to interfere in the matter.
7. It was in that background, the appellant invoked the jurisdiction of this Court under Art. 226 of the Constitution of India, the issue of a rule. The appellant assails the order of termination of his services on three grounds, namely, (1) the Dock Labour Board which appointed him did not pass the order of termination and secondly, the prior approval of the Central Government had not been obtained before his services were terminated; (2) the order of termination is discriminatory in nature and therefore, contravenes the principles of natural justice and is also violative of Art. 16 of the Constitution of India, and (3) the order of termination is in the nature of punishment and inasmuch as no enquiry had been held, prior to the passing of the order, it offends the principles of natural justice.
8. With reference to ground No. 1 the appellant places reliance on Cl. 6 of the Dock Workers ??? of Employment) Scheme, which says that in respect of posts carrying a salary of Rs. 600 and above, the appointments can be made only by the Board and that too, with the previous approval of the Central Government. Their further argument is that the appointing authority alone has the requisite power to terminate the services and this position is rendered clear by S. 16 of the General Clauses Act. As regards the second ground, the appellant would say that Smt. Helon C. Kumar, who was appointed along with him, has been retained in service, that though he was denied change allowance when he claimed it for having acted as Medical Officer, such allowance was readily sanction rd later when another Assistant Surgeon, Dr. Kesavalu, was asked to officiate in that post and that when young doctors fresh from college were appointed as Assistant Surgeons, they were given the same pay and allowances as had beer given to him without bearing in mind the age, experience and superior knowledge of the appellant. On the third ground, the appellant would say that no reference was made in the impugned order or in the counter state neat filed by the first respondent about any shortcomings or irregularities in his service, but yet, certain adverse ??? appear to have been irade in the file regarding his work and those adverse remarks have been borne to mind when his services were terminated, and as such, the termination amounts to a disciplinary action which should have been legitimately proceeded by a proper enquiry.
9. Both the respondents have filed counter-affidavits independently. The first respondent has stated that the terms of the appellant's employment were governed by a contract and as per i.e contract the appellant's services were terminable by giving 24 hours notice and such being the case, the appellant is of entitled to treat his appointment as a statutory one and invoke the writ jurisdiction of this Court for getting relief. The first respondent has then stated that the writ petition has been filed after a delay of four years and hence the proceedings are beyond the limit of time prescribed by Courts as permissible for any writ petition being filed. The first respondent his ??? the several accusation made by the appellant about discriminatory treatment. Yet, another contention put forward is that Cl. 6 of the Dock Workers Scheme had been duly amended in the year 1969 substituting the words ‘Rs. one thousand and above’ for the words ‘Rs. eight hundred and above’ on account of such amendment, it was open to the Dock Labour. Board itself to create posts within be permitted limit and appoint persons to fill up those posts without requiring the prior approval of the Central Government. The first respondent would then say that though the Deputy Chairman had sighed the order of termination sent to the appellant, yet, the decision to effect the termination had been taken by the Chairman and the action of the Chairman had been ratified by the Board at its meeting held on 29th/30th March, 1971 and, therefore, the order of termination does not suffer from any legal flaw or error. The first respondent, therefore, prayed for the dismissal of the writ petition.
10. In the counter-affidavit of the second respondent, the order of termination has been justified on the ground that the prior sanction of the Central Government was not required for terminating the services of the appellant and that the impugned order did not suffer from any mistake or error.
11. Mohan, J. who dealt with the writ petition, has taken the view that the Deputy Chairman was not inhibited by any rule or regulation from terminating the services of the appellant and as such, the impugned order does not suffer from any flaw that even assuming that the Board alone had the power to terminate the appellant's service a the Board has, as a matter of fact, ratified the termination order on 10th March, 1971 and, as such, the order in be treated as one passed by the Board itself and, lastly, that, on a perusal of the file, it found that adverse remarks about the unsatisfactory work of the appellant have been made and, having regard to those entries, there was no question of discrimination of the appellant in sending him cut of service, and, it was a case where the first respondent availed of its contractual right to terminate the services of the appellant who was only a temporary employee and terminated his services. On such reasoning the learned Judge has dismissed the writ petition and hence the aggrieved petitioner has come forward with this writ appeal.
12. Mr. Ramachandran, learned counsel for the appellant, contended before us that the order of termination of services is not in accordance with Cl. 6 of the Scheme and, therefore, the order is an ineffective one. We have already referred to the terms of Cl. 6 in the Scheme which says that in respect of posts carrying a maximum salary of Rs. 600 and more, the Board should obtain the previous approval of the Central Government for creation of the posts and also for appointment of personnel to such posts. Learned counsel argued that though there is no specific mention in Cl. 6 about the Board alone having the power for terminating the services of an officer like the appellant, who was admittedly appointed by the Chairman of the Board S. 6 of the Geneal Clauses Act would come into play and, in view of that, it would automatically follow that only the authority having the power to mike the appointment will have the power to terminate the services of the appointee. In support of this argument, Mr. Ramachandran invited our ??? to Rayalappy v. Madhayiamma (1) Satramdas v. Dy. Custodian (2) and Mohd. Ilyah v. State of Maharashtra (3). These cases cannot be of any help to the appellant, because the Federal Court case deals with the question whether a receiver appointed by the Court could not be removed from office under O. 40. R. 1, C.P.C, even though the Rule speaks only about the power of Court to appoint a receiver. The other two cases deal with permanent appointments, which however, is not the cases here, inasmuch as the appellant's appointment was only a temporary one. We may, even at this juncture, point out that in Satrarndas v. Dy. Custodian (2) the Supreme Court has pointed out that writs can be issued only to enforce the performance of statutory duties, not duties under a contract; the appointment of the appellant was under a contract.”
13. For the respondents it was pointed out that Cl. 6 of the Scheme had been subsequently amended and, as per the amendment it was only in respect of posts carrying a maximum salary of Rs. 1,000 that prior approval of the Central Government had to be obtained and in view of such amendment the post of Assistant Surgeon was not one for the appointment to or termination of which the prior approval of the Central Government had to be obtained. The argument, therefore, is that even assuming that as per old Cl. 6 of the Scheme, the prior approval of the Government was required for terminating the services of the appellant after the amendment of the clause, the necessity ceased to exist and therefore, the Board was competent to terminate the services of the appellant Countering the argument the appellant's counsel would say that the appellant's rights will have to be determined is accordance with the conditions which prevailed when he was appointed and, therefore, the terms of Cl. 6 as they originally stood would have to be applied, and if so applied the order of termination can be validly passed only after obtaining the prior approval of the Central Government. As authority for this proposition, Mr. Kamachandran relied upon Delhi Transport Union v. B.B.L Hojolay (4) Mr. Dolia appearing for the first respondent refuted this contention and placed reliance upon Corporation of Calcutta v. A.K Sen (5) where it was held that the expression appointing authority would not mean the authority which had actually appointed the employee, but would mean authority which would be competent to do so at the time the order of termination was made. Even this argument we are unable to accept, because the argument of the appellant's counsel proceeds on the footing that the appellant was employed on a permanent basis on statutory terms and, as such, certain rights became inhered and consequently no order of termination can be passed in derogation of those rights.
14. The next argument of Mr. Ramachandran was that the order of termination had been, made only by the Deputy Chairman and not by the Dock I abour Board Mr. Ramachaadran said that the Chairman had no right to delegate his power to the Deputy Chairman. So far as this argument is concerned, we find that there is no basis at all for this contention in the records. The impugned order has been issued by the Chairman and all that the Deputy Chairman has done is to have signed the communication for the Chairman. The order has been sent on 30th January, 1971. The subject of termination of the appellant's services has been considered by the Board at its meeting on 29/30th March, 1971. The resolution says: that the Chairman's note was considered, that the Deputy Chairman was asked to explain the circumstances under which their temporary services of the appellant were terminated and that the Board ratified the action of the Chairman by passing a resolution in that behalf. There has thus been an application of mind by the Board. We are therefore, unable to accept the contention of the appellant that the impugned order of termination had been passed by the Deputy Chairman and therefore, it is not a valid order of termination at all. Learned counsel cited Mysore State v. M.K Ali Beg (6) to contend that when the initial order is a nullity, a subsequent ratification of it will not cure the defect As, in the instant case, the initial order does not suffer from any defect, the appellant cannot place reliance upon the ratio laid down in the above said case.
15. The appellant then contended that he had been discriminated and this would be clearly seen from the different treatments meted out to him and the other persons employed as Assistant Surgeons and Medical Officers, by in he Board. We find nothing from the record to sustain this contention of the appellant. Moreover, the other officers are not parties to these proceedings and therefore, it is not possible to render any finding about the alleged unfair treatment meted out to the appellant.
16. The weakness of the appellant's case lies in the fact that he was appointed only on a temporary basis and his appointment was governed by the terms of contract contained in the appointment order. As per the order of appointment, the service of the appellant was temporary in nature and was liable to termination on 24 hours notice. The appellant would say that because he acted for nine months as medical officer, the initial order of appointment must be deemed to have become defunct. We are unable to accept this contention, for, the parties had never acted on those lines at any stage of the matter. As a matter of fact, the appellant when he was dissatisfied with the non payment of charge allowance, wanted to be reverted back as Assistant Surgeon and this request was complied with, he was given salary and allowances permissible for the post of Assistant surgeon held by him, all through, only in accordance with the initial order of appointment. In such circumstances, there is no scope whatever for the appellant to contend that he ceased to be a temporary employee and the terms of employment were not contractual. Once we hold that the appellant's service was on contractual basis, then, as pointed out by the Supreme Court in Champaklal Chimanlal Shah v. Union Of India . (7) when an order of appointment provides for termination of services of a temporary employee by giving him notice of a particular duration, then the temporary services can be terminated by the employer giving such notice and the employee cannot put forth a contention that the termination order is discriminatory and should therefore, be set aside. We are, therefore, unable to accept the argument that the impugned order of termination of service passed, by the first respondent, which has been subsequently sustained by the second respondent, is I discriminatory in nature, and is therefore violative of percent. As of the Constitution of India and also opposed to the principles of natural justice.
17. There remains then the third contention of the appellant's counsel that the order of termination is in the nature of punishment and since no inquiry had been held and no opportunity had been given to the appellant to offer his explanation, the principles of natural justice have been violated. The submission of Mr. Ramachandran, on this aspect of the case is that some adverse remarks appear to have been made about the appellant in the file, but those matters have not been referred to in the impugned order or even in the counter statement filed by the first respondent and therefore the termination of the service of the appellant is by way of punishment and such punishment ought not to have been imposed on the appellant without a proper enquiry proceeding the order of termination. It seems to us that there is no scope at all for the appellant to put forth the contentions set out above. The termination of the service of the appellant has not been done by way of a disciplinary action. On the other band, the Board has availed of the power specifically conferred on it by the terms of the contract of service entered into between it and the appellant, which enables the Board to give 24 hours notice and terminate the service of the appellant. It is on account of that, there is no reference in the order of termination of service or in the counter about the unsatisfactory work of the appellant. However, while in the course of arguments before the learned single Judge in the writ petition, the file seems to have been placed for the scrutiny of the learned Judge to satisfy the court that the appellant had not been subjected to hostile treatment. While perusing the file in that context, the learned Judge has noticed that there are entries in the file commenting upon the unsatisfactory work of the appellant. This is not therefore, a case where disciplinary action has been taken against the appellant under the guise of an order of termination of service. Mr. Ramachandran quoted Manager, Govt. Branch Press v. Belliappa (8) to contend that even a temporary Government servant, if he had been arbitrarily discriminated against and singled out or harsh treatment in preference to his juniors similarly circumscribed, is entitled to the protection of Arts. 14 and 16 of the Constitution, and to approach the court for appropriate reliefs. We are afraid this argument proceeds from a misconception. The appellants services, besides being temporary in nature, were also governed by a contract, and not by a statute or rules. Therefore, the decision in the abovesaid case cannot be relied on by the appellant. On the other hand, it is a well-settled proposition that where the services of an employee are terminated specifically in exercise of a power conferred on the employer as per contract of service entered into between the employer and the employee, then the court will not interfere with the exercise of such power by the employer even in those cases where the order of termination contains a reference to the petitioner's unsatisfactory work. In this context we may only refer to a few cases which dealt with the question. One of them is Palanichami v. Canara Bank, Banglore (9) which is a decision rendered by Ramanujab, J. In an earlier case, V. Ramiah v. State Bank Of India (10) a Division Bench of this Court has held that an employer, even a statutory body, may in initiate a proceeding, hold an enquiry and come to certain conclusions; it may then choose to punish the employee on a finding of misconduct or it may choose, for valid reasons to terminate the employment under the contract and such exercise of power under the contract is not liable to be challenged in a writ petition. Yet another case in Municipal Corporation v. P.S Mahenkar (11) where it was held that termination of service by the management, of the employee under a standing order, after giving one month's notice cannot be considered to be punitive;in character, though the record disclosed unsatisfactory service on account go past incidents for each of which punishment in one form or other had already been meted out. We are therefore of opinion that in the instant case, even though the file contains some markings about the unsatisfactory service of the appellant, the order of termination of service had nothing to do with those remarks; the order has been passed purely in exercise of the right available under the contractor appointment to the first respondent to terminate the service of the appellant by giving notice. Hence, the last contention of the appellant's counsel has also to fall to ground. Though we find no merit is the contentions of the appellant and as such, the writ appeal deserves to be dismissed, we are inclined to follow the course adopted by the Supreme Court in Municipal Corporation v. P.S Molvenkar (11), because from the date of termination of his service, viz. 1st Match, 1971, the appellant, labouring under a misconception about his tights, has been restarting to various proceedings to seek reinstatement in sen rice. Even at the time the Board ratified the action of the Chairman in having terminated the temporary services of the appellant the Board has stated that “such instances might give rise to the view that proper opportunity not given to the person concerned though his services were terminated as per contract.” When the appellant preferred a petition to the second respondent, the first respondent had sent for the appellant and ??? him solatium of Rs. 1,500 and subsequently revised the offer and invited the appellant to accept a sum of Rs. 5,000 in full quit of his claims. In the course of the hearing of the appeal, in response to a suggestion made by us, Mr. Dolia stated that the first respondent may be persuaded to offer Rs. 7,500 to the appellant as ex gratia payment. Taking all the circumstances into consideration, we think the first respondent should be called upon to pay a sum of Rs. 10,000 to the appellant as ex gratia payment. While therefore, dismissing the writ appeal and directing the parties to bear their respective costs, we direct the first respondent to pay the appellant, within a period of eight weeks from this date, a sum of Rs. 10,000 as ex gratia payment.
18. The Chief Justice:— In the judgment of ours, no question of general importance which raises a substantial question of law arises. In these circumstances, the oral application for leave to appeal to the Supreme Court as against our judgment is refused.
19. Appeal dismissed.
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