Case Note & Summary
The respondent, Paramjeet Singh, was appointed as a conductor on a contractual basis by the Rajasthan State Roadways Transport Corporation (RSRTC) on 21 January 2006. The appointment was for a period of one year or until the shortage of drivers was met, whichever was earlier. The contract contained a clause (Clause 11) that allowed termination if a passenger was found without a ticket, and Clause 16 gave the Corporation the right to terminate the temporary appointment at any time without notice. On 21 March 2007, the respondent's services were dispensed with. Challenging the termination, the respondent filed a writ petition before the Rajasthan High Court. A learned Single Judge allowed the writ petition on 6 April 2016, holding that there was a breach of the principle of natural justice. The Division Bench dismissed the appeal on 19 September 2016. The appellant, RSRTC, appealed to the Supreme Court. The Supreme Court found merit in the appellant's submission that the appointment was purely contractual and that the contract allowed termination without notice. The Court distinguished the case of Hari Ram Maurya v. Union of India, where removal was based on a charge of bribery, unlike the present case where termination was in accordance with the contract. The Supreme Court allowed the appeal, set aside the High Court's judgment, and dismissed the respondent's writ petition, with no order as to costs.
Headnote
A) Service Law - Contractual Appointment - Termination Without Notice - Clause 16 of contract permitted termination at any time without notice - Respondent conductor appointed on contractual basis for one year or till shortage of drivers met - Services terminated without notice - High Court set aside termination for breach of natural justice - Supreme Court held that terms of contract govern and natural justice not required when termination is in accordance with contract - Appeal allowed, termination upheld (Paras 2-11).
Issue of Consideration
Whether termination of a contractual employee without notice and without following principles of natural justice is valid when the contract expressly permits such termination.
Final Decision
Appeal allowed; impugned judgment and order of the High Court set aside; writ petition filed by respondent dismissed; no order as to costs.
Law Points
- Contractual appointment
- Termination without notice
- Natural justice
- Distinction from disciplinary removal
