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Patna High Court

Rahul KumarversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

Both the Original Authority's termination order and the Appellate Authority's order are set aside as they were not justified under Clause‑7 of the contract.

Summary

The petitioner, Rahul Kumar, a contractual Assistant Development Officer of the Bihar Industrial Area Development Authority (BIADA), challenged his termination issued via Memo No. 3525 dated 30.05.2023, alleging it was based on an improper invocation of Clause‑7 of his employment agreement. He claimed the termination was effected without the requisite conditions of ‘no need’, abolition of post, or project closure, and that the original and appellate authorities had not considered his submissions or provided necessary documents. The respondents argued that the termination followed a show‑cause process, a Three Men Committee report, and was in accordance with the contractual provisions and applicable administrative procedures. The High Court examined Clause‑7 and found that none of its stipulated grounds applied, rendering the termination illegal and the orders of both the Original and Appellate Authorities ultra vires. Consequently, the Court set aside both orders, remanded the matter to the Original Authority to pass a fresh order within 90 days, and allowed the petitioner two weeks to file a reply to the show‑cause notice.

Issues considered

  • The validity of termination of a contractual employee under Clause‑7 of the employment agreement absent the stipulated grounds.
  • Whether the Original Authority's and Appellate Authority's orders were legally sound and complied with procedural requirements.
  • Whether the petitioner is entitled to reinstatement and relief under writ jurisdiction.

Subjects

  • contractual employee
  • termination
  • Clause‑7
  • writ of certiorari
  • mandamus
  • administrative law
  • BIADA
  • service termination

Judgment

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                  Civil Writ Jurisdiction Case No.3573 of 2025
     ======================================================
     Rahul Kumar Son of Shri Gopal Thakur, Resident of Dilkushbhag
     (Rambhag), Road No. 3, Dharbhanga, P.S. LNMU, Bihar, PIN- 846008.

                                                               ... ... Petitioner/s
                                      Versus
1.   The State of Bihar through its Principal Secretary, Industries Department,
     Govt. of Bihar, Patna.
2.   The Bihar Industrial Area Development Authority through its Managing
     Director, Udyog Bhawan, Gandhi Maidan, Patna.
3.   The Chairman, Bihar Industrial Area Development Authority, Patna.
4.   The Executive Director (South), Bihar Industrial Area Development
     Authority, Patna.
5.   The Secretary, Bihar Industrial Area Development Authority, Patna.

                                               ... ... Respondent/s
     ======================================================
     Appearance :
     For the Petitioner/s   :      Mr. Sanjay Singh, Sr. Advocate
                                   Mr. Venkatesh Kirti, Advocate
     For the State          :      Mr. Additional Advocate General (12)
     For the BIADA          :      Mr. Parth Gaurav, Advocate
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE DR. ANSHUMAN

                            ORAL JUDGMENT
      Date : 23-03-2026

                       Heard learned Senior counsel for the petitioner,

      learned counsel for the State and learned counsel for the Bihar

      Industrial Area Development Authority (BIADA).

                       Re:- I.A. No. 1 of 2025

                       Learned Senior counsel for the petitioner submits

      that he is not pressing this interlocutory application, as the same

      has become infructuous.

                       2. As such, the present I.A. No. 1 of 2025 stands

      dismissed, as having become infructuous.
Patna High Court CWJC No.3573 of 2025 dt.23-03-2026
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                         Re:- C.W.J.C. No. 3573 of 2025

                         The present writ petition has been filed for issuance

         of appropriate writ/writs, order/orders, direction/directions

         commanding upon the respondent authorities for the following

         relief/s:-

                                  “I. For issuance of writ in nature of
                                  certiorari quashing the Memo No. 3525
                                  dated 30.05.2023 wherein the contract of
                                  employment of the Petitioner has been
                                  terminated under clause 7 of the contract
                                  whereby        and     whereunder      on   wrong
                                  assumption of facts and law the services of
                                  the petitioner has been terminated.
                                  II.    For issuance of writ in nature of
                                  certiorari quashing the Appellate Order
                                  dated 09.12.2024 passed by the Chairmen
                                  of    respondent        authority     wherein   the
                                  Chairmen has refused to interfere with
                                  order of termination without considering
                                  the submission and facts of the case.
                                  III. For issuance of writ in nature of
                                  Mandamus            directing   the    Respondent
                                  authority holding that the petitioner is
                                  entitled to continue in service of the Board
                                  without any hindrance and the petitioner is
                                  further entitled to the salary/remuneration
                                  as he was getting immediately prior to
                                  issuance of the impugned resolution of
Patna High Court CWJC No.3573 of 2025 dt.23-03-2026
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                                  termination.
                                  IV. For any other relief to which Petitioner
                                  may be entitled.”


                         2. Learned Senior counsel for the petitioner submits

         that admittedly, the petitioner is an employee of the Bihar

         Industrial Area Development Authority (hereinafter referred to

         as ‘BIADA’) though, he has entered on the post of Assistant

         Development Officer by virtue of contractual appointment w.e.f.

         01.09.2007 followed by an agreement prepared between the

         BIADA and the petitioner dated 01.09.2007. Senior counsel

         submits that the petitioner has served the department with full

         satisfaction, but the allegation has been made against him that

         he in connivance with two other officers viz., the Director and

         the Development Officer, has entered into a lease on behalf of

         BIADA with one M/s Punarsar Jute Park Ltd., by which the

         BIADA suffered great loss. Senior counsel submits that in this

         regard, a show cause has been issued to the petitioner in the

         month of April, 2017. The petitioner filed his reply to the said

         show cause on 26.04.2017 in which he has taken the plea that

         the petitioner is Class-III employee, whereas, the lease was

         executed only after due approval from his superiors viz., the

         Director and the Development Officer. Senior counsel submits
Patna High Court CWJC No.3573 of 2025 dt.23-03-2026
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         that a Three Men Committee was set up for the alleged wrong.

         The petitioner was demanded the certain documents by virtue of

         Annexure-P/9 which was never been provided to him and only

         due to this reason, he could not filed the reply before the Three

         Men Committee. In result, the report of Three Men Committee

         come against the petitioner and treating the Three Men

         Committee a gospel truth, the petitioner has been removed.

                         3. Learned Senior counsel for the petitioner further

         submits that the respondent authorities without supplying the

         copy of the documents terminated the contract of service of the

         petitioner vide Memo No.3525 dated 30.05.2023 (Annexure-

         P/10) alleging that the petitioner has breached the terms of the

         contract. He submits that the petitioner was removed in the light

         of Clause-7 of the said agreement which categorically states that

         the Second Party can terminate the services of the First Party

         even in the midst of the contract period in case of no need, in

         the event of abolition of post, or due to the closure of the project

         warranting such termination thereupon. Senior counsel submits

         that none of the points mentioned in Clause-7 of the agreement

         is available. Therefore, he submits that the said termination is

         bad. He further submits that the Government of Bihar through

         General Administrative Department has issued a letter for
Patna High Court CWJC No.3573 of 2025 dt.23-03-2026
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         protection of contractual employees which has been approved

         by the High Level Committee of the State of Bihar in which, the

         services of the petitioner has also been protected for the

         employees of BIADA and in case of removal, the provision of

         appeal has been provided. Senior counsel submits that the

         provision of appeal has been exhausted by the petitioner, but the

         appellate order is also defective as, removal of the petitioner has

         been made in terms of Clause-7 of the agreement, whereas, in

         the entire order passed by the Original Authority and the

         Appellate Authority, no ingredients of Clause-7 is available.

         Therefore, he submits that both the orders i.e. order passed by

         the Original Authority and order passed by the Appellate

         Authority are bad in law and fit to be set aside.

                         4. Learned counsel appearing for the BIADA, on

         the other hand, submits that it is true that the petitioner is a

         contractual employee and his contract has been protected by the

         letter of the General Administrative Department, Government of

         Bihar and provision of appeal has also been provided to him. He

         submits that for the wrong done by the petitioner as alleged in

         the show cause, he has submitted his reply and in the light of

         receiving its show cause, a Three Men Committee was set up.

         The petitioner appeared before the Three Men Committee,
Patna High Court CWJC No.3573 of 2025 dt.23-03-2026
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         demanded certain documents, and the entire files have been

         provided to him which he has perused twice and thereafter,

         started demanding the certain copy of those documents. And in

         this name, he has not filed his explanation before the Three Men

         Committee. In result, the Three Men Committee submitted its

         report within the stipulated time and on the basis of that, the

         Original Authority has passed order against the petitioner which

         is a reasoned order and absolutely in accordance with law. The

         order of the Original Authority was also tested before the

         Appellate Authority. He, therefore, submits that there is

         absolutely no illegality in both the orders and the same be

         affirmed, and the present writ petition be dismissed.

                         5. Upon perusal of the order passed by the Original

         Authority, it transpires that the termination of the petitioner has

         been made in light of Clause-7 of the agreement. Clause-7 of the

         said agreement states as follows:-

                                 “That the Second Party can terminate the
                                 services of the First Party even in the midst
                                 of the contract period in case of no need, in
                                 the event of abolition of post, or due to the
                                 closure of the project warranting such
                                 termination thereupon.”


                         6. Upon perusal of said Clause-7 of the agreement,
Patna High Court CWJC No.3573 of 2025 dt.23-03-2026
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         it transpires that the said termination can be made in case of (i)-

         violation in the event of abolition of post, ii) due to closure of

         the project. Here in the present case, none of the points are

         available. Therefore, this Court is of the view that both the

         orders are fit to be set aside on the ground that on the basis of

         Clause-7 of the agreement, the petitioner cannot be terminated.

                         7. Hence, the order passed by the Original

         Authority dated 30.05.2023 contained in Memo No.3525

         (Annexure-P/10) and the order passed by the Appellate

         Authority dated 09.12.2024 in Service Appeal No. 01/2023

         (Annexure-P/12), both are hereby set aside. This Court hereby

         remanded back the matter to the Original Authority to pass order

         afresh, within 90 days from the date of receipt/production of a

         copy of this order.

                         8. Since, the order passed by the Original Authority

         and order passed by the Appellate Authority have been set aside,

         therefore, only liberty and opportunity is being given to the

         petitioner to file his reply to the show cause without making

         unnecessary delay on any ground. The petitioner is permitted to

         file his reply within two weeks from the date of production of

         this order and the authorities concerned shall pass order

         thereafter.
             Patna High Court CWJC No.3573 of 2025 dt.23-03-2026
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                                      9. Accordingly, with the aforesaid observation and

                      direction, this writ petition stands disposed off.




                                                                   (Dr. Anshuman, J)
Divyansh/-
AFR/NAFR
CAV DATE                     NA
Uploading Date             26/03/2026
Transmission Date            NA


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