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High Court of Gujarat

KANAIYALAL NAGJIBHAI ROTversusSTATE OF GUJARAT

Decided
Disposal
58-RULE ISSUED & RULE ABSOLUTE/ALLOWED @FH

Holding

The termination order was a stigmatic termination and was quashed; the petitioner was reinstated without entitlement to back‑wages.

Summary

The petitioner, Kanaiyalal Nagjibhai Rot, a fixed‑term Assistant Depot Manager of Gujarat State Civil Supplies Corporation, was terminated on 6 March 2021 after an FIR was lodged against him under IPC sections 406, 409, 420, 120B, the Essential Commodities Act and the Prevention of Corruption Act. He challenged the termination as a stigmatic order that was passed without a full departmental inquiry or compliance with natural‑justice principles. The High Court examined a line of precedents establishing that termination based solely on criminal allegations, without a proper inquiry, is stigmatic and therefore illegal under Article 311. Relying on decisions such as Rakeshkumar Katara v. State of Gujarat and the Supreme Court’s ruling in Swati Priyadarshini, the Court held that the termination was unlawful. Consequently, the termination order was quashed, the petitioner was ordered to be reinstated to his original post for the balance of his contractual term, and no back‑wages were awarded. The petition was allowed in its entirety.

Issues considered

  • The termination of a contractual employee on the basis of an FIR constitutes a stigmatic termination.
  • Whether a full‑scale departmental inquiry is required before terminating a contractual employee.
  • Whether the termination order violates the principles of natural justice and Article 311 of the Constitution.
  • Entitlement to reinstatement and back‑wages after quashing a stigmatic termination.

Legislation cited

Subjects

  • stigmatic termination
  • contractual employee
  • due process
  • departmental inquiry
  • natural justice
  • Article 311
  • reinstatement
  • back wages
  • IPC
  • Prevention of Corruption Act
  • Essential Commodities Act

Judgment

  C/SCA/8522/2022                                   JUDGMENT DATED: 10/02/2026




        IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

    R/SPECIAL CIVIL APPLICATION NO.                   8522 of 2022


FOR APPROVAL AND SIGNATURE:


HONOURABLE MR. JUSTICE NIRZAR S. DESAI

=====================================================

       Approved for Reporting                   Yes             No

=====================================================
               KANAIYALAL NAGJIBHAI ROT
                         Versus
                STATE OF GUJARAT & ANR.
=====================================================
Appearance:
KARTIK H BHATT(9313) for the Petitioner(s) No. 1
MR. BHARGAV V PANDYA(7103) for the Respondent(s) No.
2
NOTICE SERVED for the Respondent(s) No. 1
=====================================================

 CORAM:HONOURABLE MR. JUSTICE NIRZAR S. DESAI

                          Date : 10/02/2026

                              ORAL JUDGMENT

  1.         Leave       to   join    In-charge        General        Manager
       (Personnel),           Gujarat       State      Civil         Supplies
       Corporation, Gandhinagar as respondent No.3 as
       per amendment tendered by learned advocate Mr.
       Kartik       H.   Bhatt   appearing      for      the     petitioner
       today. The same is taken on record and granted.
       To be carried out forthwith.


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C/SCA/8522/2022                                              JUDGMENT DATED: 10/02/2026




2.         With the consent of parties, the matter is
     taken up for final disposal today itself. Hence,
     Rule. Learned Assistant Government Pleader Mr.
     Aditya Davda waives service of rule on behalf of
     respondent Nos.1 and 2 and learned advocate Mr.
     Bhargav Pandya waives service of rule on behalf
     of respondent No.3.


3.         By way of this petition, the petitioner has
     challenged          the    order              of    termination               dated
     6.3.2021        passed     by        respondent               No.3      and      has
     prayed        for    quashing           and        setting          aside        all
     consequential and subsequent orders pursuant to
     the order dated 6.3.2021 and has prayed for a
     direction to the respondents to reinstate the
     petitioner          to    the       post           of     Assistant           Depot
     Manager with all consequential benefits


4.         The facts stated                  by learned advocate Mr.
     Kartik Bhatt are as under :-


     4.1 That the present petitioner was appointed
     as Assistant Depot Manager by the Gujarat State
     Civil        Supplies     Corporation               on      21.05.2016           and
     joined       service      on     02.06.2016.               The     appointment
     was on fixed pay for a period of five years.
     Before the completion of the said period, an
     inspection was carried out on 27.01.2021 by the
     Deputy General Manager, Panchmahal of respondent



                                    Page 2 of 24
C/SCA/8522/2022                                           JUDGMENT DATED: 10/02/2026




     No. 3 Corporation, and no irregularities were
     found.       It    is    stated        by     learned        advocate         Mr.
     Kartik Bhatt that thereafter, in February 2021,
     the      Mamlatdar,            Shahera           conducted             another
     inspection and found certain irregularities in
     the stock at the godown. Consequently, an FIR
     dated 20.02.2021, being FIR No. 11207061210114
     of     2021,       was      registered          at       Shahera         Police
     Station,          District        Panchmahal,            under        Sections
     406,    409,       420,     and     120B       of    the     Indian         Penal
     Code,        along      with      Sections          3    and      7    of     the
     Essential Commodities Act.


     4.2 In         view       of      the         registration            of      the
     aforesaid         FIR,    the      petitioner’s            services          were
     terminated           vide       the       impugned           order          dated
     06.03.2021         without        following          due     procedure            of
     law. Since the petitioner’s contractual period
     had     not       expired      and       the     petitioner            was        on
     probation,         learned        advocate           Mr.     Kartik         Bhatt
     submitted that, considering the language of the
     order, the termination can be termed a stigmatic
     order.       Therefore,          in     view        of   the      catena          of
     decisions         of    this      Court,       the       impugned        order,
     being stigmatic and based on the criminal case
     registered         against        the     petitioner,            is    illegal
     and is required to be quashed and set aside.


5.          Mr.        Kartik          Bhatt,            learned           advocate



                                    Page 3 of 24
C/SCA/8522/2022                                            JUDGMENT DATED: 10/02/2026




     appearing         for     the     petitioner            relied       upon      the
     latest        decision          of       this         Court       dated        04-
     10.12.2024 in case of Rakeshkumar Bhursingbhai
     Katara V/s. State of Gujarat in Special Civil
     Application No. 22588 of 2022 and allied matters
     and submitted that while allowing the petitions
     of those petitioners, this Court has elaborately
     considered the decision of this Court right from
     the decision in the case of State of Guajrat
     V/s. Chetan Jayantilal Rajgor dated 24.07.2020
     passed in Letters Patent Appeal No. 1596 of 2019
     and     other        decisions             including            the       latest
     decision of the Hon’ble Supreme Court in case of
     Swati Priyadarshini V/s. State of Madhya Pradesh
     and others reported in 2024 SCC Online SC 2139
     and therefore, present case is squarely covered
     by    the         above    decision             and       therefore,           the
     petitioner’s termination order is bad in law and
     the same is deserves to be quashed and set aside
     and the petitioner is required to be reinstated
     on his original post.


6.         Mr. Aditya Davda, learned AGP appearing for
     the respondent – State vehemently opposed the
     petition and submitted that the petitioner was
     found        to   have    indulged             into    misconduct          which
     would dis-entitle him from serving any further.
     He submitted that in view of registration of FIR
     against the present petitioner for an offence



                                     Page 4 of 24
C/SCA/8522/2022                                        JUDGMENT DATED: 10/02/2026




   under          the     Prevention        of    Corruption          Act,      the
   present           petitioner’s             services         are       rightly
   terminated.             Learned       AGP      also     submitted            that
   there are Special Leave Petition pending before
   the Hon’ble Supreme Court whereby the Hon’ble
   Supreme          Court     has        vide     interim        order      dated
   17.09.2024 passed in case of State of Gujarat
   V/s. Hiralben Navinchandra Dholakiya in Special
   Leave Petition Civil (Diary) No. 37835 of 2024
   has stayed the impugned order of this Court.
   Similarly, the Hon’ble Supreme Court has vide
   interim          order    dated        14.12.2023        passed         in    the
   case of The State of Gujarat V/s. Ashishbhai
   Chandrakantbhai                 Solanki        in       Special          Leave
   Petition (Civil) No. 23698 of 2022 has stayed
   the impugned order of this Court whereby the
   order of stigmatic termination was quashed by
   this           Court     and     she       therefore,           prayed        for
   dismissal of this petition.


   6.1              He further submitted that the authority
   has      taken         into     consideration           the      Government
   Resolution             dated      16.02.2006           r/w       Government
   Resolution             dated      20.10.2015           and       Government
   Resolution             dated    28.03.2016       and       by     virtue         of
   powers          flowing        from    the     provisions          of    above
   Government Resolutions, the order of termination
   was passed and therefore, the same is absolutely
   just, legal and proper.



                                   Page 5 of 24
C/SCA/8522/2022                                          JUDGMENT DATED: 10/02/2026




     6.2            Additionally,            it      was        submitted             by
     learned AGP that in view of specific provision
     in the Government Resolution dated 28.3.2016 and
     more         particularly,         Clause           No.14         (A),       the
     authority has power to terminate the services of
     the present petitioner and as the principles of
     natural justice are complied with, such order
     cannot       be     said   to   be     stigmatic.            It    was     also
     submitted that in view of the fact that special
     panel        was    constituted        and     the       petitioner          was
     granted        sufficient          opportunity               of     personal
     hearing, the same would amount to holding an
     inquiry        and,     therefore,            this      Court       may      not
     interfere with the impugned order of termination
     and dismiss the petition.


7.          In rejoinder, learned advocate Mr. Kartik
     Bhatt submitted that the submission in respect
     of pendency of Special Leave Petition before the
     Hon’ble            Supreme      Court          has        already          been
     considered by this Court in its judgment in case
     of Rakeshkumar Bhursingbhai Katara (supra) and
     as far as the submission about the powers to
     terminate the services of the petitioner flowing
     from Government Resolution dated 16.02.2006 r/w
     Government           Resolution             dated      20.10.2015            and
     Government           Resolution             dated      28.03.2016            are
     concerned,           the     same           would       be        absolutely



                                  Page 6 of 24
C/SCA/8522/2022                                     JUDGMENT DATED: 10/02/2026




     insignificant in light of catena of decisions by
     the Hon’ble Supreme Court holding that once the
     termination order is found to be stigmatic then
     in that case the termination order must go and
     therefore,         the    petition        is     required          to       be
     allowed.


8.         I have heard the learned advocates for the
     parties      and    perused      the      record.      I    have        also
     considered     the       order     dated       13.04.2022        whereby
     the    petitioner’s        services        are     terminated.              On
     perusal of above order, I found that there is a
     reference about the FIR registered against the
     present      petitioner          under     the      Prevention              of
     Corruption Act and as the entire order is based
     on the above premises on registration of FIR
     against the present petitioner, prima facie, the
     impugned order can be said to be a stigmatic
     order.


9.         This Court had on occasion to consider the
     similar set of facts in respect of stigmatic
     termination and while dealing with this aspect,
     this Court by considering series of decisions on
     the subject and more particularly, in the case
     of    Rakeshkumar        Bhursingbhai          Katara      (supra)          by
     taking into consideration the recent decision of
     the    Hon’ble      Supreme       Court     in     case       of     Swati
     Priyadarshni         (Supra)        observed        in      paragraphs



                                Page 7 of 24
C/SCA/8522/2022                              JUDGMENT DATED: 10/02/2026




   Nos.14 to 18 as under :-


                  "14. Further, very recently, the Hon'ble
                  Supreme Court in the case of Swati
                  Priyadarshini v. State of Madhya Pradesh
                  and others, 2024 SCC Online SC 2139
                  (Supra) has while allowing the appeal
                  preferred by the appellant, made the
                  following observations in paragraphs 29 to
                  36 as under :-

                  ANALYSIS, REASONING AND CONCLUSION :

                  29.    Having    bestowed   our    anxious
                  consideration to the lis, we find that the
                  interference of the Division Bench with
                  the judgment dated 20.06.2017 of the
                  learned   Single    Judge,   has   to   be
                  interdicted at our hands.

                  30. A bird’s eye views reveals thus. The
                  appellant topped the revised Merit List,
                  leading to her appointment as an APC.
                  While   serving   as  such,   complaint(s)
                  against her, in brief, were that she was
                  not performing her duties, primarily on
                  two counts – (i) not punctual in attending
                  to her duties, and; (ii) not correctly
                  reported with regard to the events in the
                  hostel. As against these, the appellant’s
                  response, via her replies to the SCNs, is
                  that she, inter alia, frankly admits to
                  being late on occasion, but to compensate
                  for her late-coming, she used to sit till
                  late evening in the office for completion
                  of work. On this count, the Respondents
                  cannot be faulted. It is no justification
                  for the appellant to contend that she was
                  late, but worked late/overtime such that
                  the work did not suffer. However, as borne
                  out from the record, with regard to the
                  hostel, charge was given to her for only
                  5/6 days. As such, in our view, it cannot


                              Page 8 of 24
C/SCA/8522/2022                              JUDGMENT DATED: 10/02/2026




                  be said that within such a short period,
                  the appellant, without fully understanding
                  the    attendant   issues,   could    have
                  straightaway given any opinion/report on
                  the hostel. Be that as it may, this case
                  turns on our findings infra.

                  31. Clause 4 of the RGPSM’s General
                  Service   Conditions  under  the   heading
                  “Resignation/Termination”   provides    as
                  below :-

                  “Persons working on contract can be
                  terminated with one month notice if found
                  inefficient. In case of persons found
                  indulged    in   undesirable    activities
                  amounting to degradation of dignity of
                  Mission, Mission Director shall reserve
                  right to terminate him/her with immediate
                  effect.”
                                         (emphasis supplied)

                  32. Perusal of Clause 4 makes it clear
                  that ordinarily, for inefficiency, one
                  month’s notice is sufficient. The Clause
                  also makes it clear that if someone is
                  found to have indulged in “undesirable
                  activities”, the Mission Director was
                  competent   to  terminate   such  person’s
                  services “with immediate effect”. We are
                  afraid that the Respondents have placed
                  themselves in a Catch-224 situation. If
                  the order dated 30.03.2013 falls within
                  the former part of Clause 4, as contended
                  by the respondent, on the premise that it
                  is a case of termination simpliciter and
                  non-stigmatic, then one month’s notice was
                  required to be issued to the appellant,
                  which admittedly was not done in the
                  instant matter. Arguendo, were the order
                  dated 30.03.2013 to be seen as falling
                  under the latter part of Clause 4, it
                  would be stigmatic, as made clear by the
                  use of the words “indulged in undesirable


                              Page 9 of 24
C/SCA/8522/2022                                 JUDGMENT DATED: 10/02/2026




                  activities amounting         to   degradation              of
                  dignity of Mission”.

                  33.   In    either    of   the    above-noted
                  eventualities, the Impugned Judgment would
                  have   to    necessarily   be    set   aside.
                  Nevertheless, let us examine the reasoning
                  of the Division Bench, which opined that
                  the order is non-stigmatic and simpliciter
                  non-renewal of contract. The order dated
                  30.03.2013    was,   quite   obviously,   the
                  culmination of the process set into motion
                  by the two SCNs, which has been overlooked
                  by the Division Bench. The mere non-
                  mention of the background situation or the
                  SCNs in the order dated 30.03.2013 cannot,
                  by itself, be determinative of the nature
                  of the order. As held by this Court in
                  Samsher Singh v State of Punjab, (1974) 2
                  SCC 8315 and Anoop Jaiswal v Government of
                  India, (1984) 2 SCC6, the form of an order
                  is not its final determinant and the Court
                  can find out the real reason and true
                  character behind terminating/removing an
                  employee. Moreover, the Impugned Judgment
                  also   does    not  deal   with   Clause   4.
                  Interestingly, this Clause also escaped
                  the attention of or/and was not brought to
                  the notice of the learned Single Judge
                  either.

                  34. It is profitable to refer to what five
                  learned Judges of this Court laid down in
                  Parshotam Lal Dhingra v Union of India,
                  1957 SCC OnLine SC 5:

                  “28. The position may, therefore, be
                  summed up as follows : Any and every
                  termination of service is not a dismissal,
                  removal   or   reduction    in   rank.   A
                  termination of service brought about by
                  the exercise of a contractual right is not
                  per se dismissal or removal, as has been
                  held by this Court in Satish Chander Anand


                               Page 10 of 24
C/SCA/8522/2022                               JUDGMENT DATED: 10/02/2026




                  v. Union of India [(1953) 1 SCC 420:
                  (1953) SCR 655]. Likewise the termination
                  of service by compulsory retirement in
                  terms of a specific rule regulating the
                  conditions of service is not tantamount to
                  the infliction of a punishment and does
                  not attract Article 311(2), as has also
                  been held by this Court in Shyam Lal v.
                  State of Uttar Pradesh [(1955) 1 SCR 26].
                  In either of the two abovementioned cases
                  the termination of the service did not
                  carry with it the penal consequences of
                  loss of pay, or allowances under Rule 52
                  of the Fundamental Rules. It is true that
                  the misconduct, negligence, inefficiency
                  or other disqualification may be the
                  motive or the inducing factor which
                  influences the Government to take action
                  under the terms of the contract of
                  employment or the specific service rule,
                  nevertheless, if a right exists, under the
                  contract or the rules, to terminate the
                  service the motive operating on the mind
                  of the Government is, as Chagla, C.J., has
                  said in Shrinivas Ganesh v. Union of India
                  [LR 58 Bom 673 : AIR (1956) Bom 455]
                  wholly irrelevant. In short, if the
                  termination of service is founded on the
                  right flowing from contract or the service
                  rules then, prima facie, the termination
                  is not a punishment and carries with it no
                  evil consequences and so Article 311 is
                  not attracted. But even if the Government
                  has, by contract or under the rules, the
                  right to terminate the employment without
                  going through the procedure prescribed for
                  inflicting the punishment of dismissal or
                  removal   or   reduction  in   rank,   the
                  Government may, nevertheless, choose to
                  punish the servant and if the termination
                  of service is sought to be founded on
                  misconduct, negligence, inefficiency or
                  other disqualification, then it is a



                              Page 11 of 24
C/SCA/8522/2022                                JUDGMENT DATED: 10/02/2026




                  punishment and the requirements of Article
                  311 must be complied with. As already
                  stated if the servant has got a right to
                  continue in the post, then, unless the
                  contract of employment or the rules
                  provide to the contrary, his services
                  cannot be terminated otherwise than for
                  misconduct, negligence, inefficiency or
                  other    good   and   sufficient    cause.   A
                  termination of the service of such a
                  servant    on  such    grounds   must   be   a
                  punishment and, therefore, a dismissal or
                  removal    within   Article    311,   for   it
                  operates as a forefeiture of his right and
                  he is visited with the evil consequences
                  of loss of pay and allowances. It puts an
                  indelible stigma on the officer affecting
                  his future career. A reduction in rank
                  likewise may be by way of punishment or it
                  may   be    an  innocuous    thing.   If   the
                  government servant has a right to a
                  particular rank, then the very reduction
                  from that rank will operate as a penalty,
                  for he will then lose the emoluments and
                  privileges of that rank. If, however, he
                  has no right to the particular rank, his
                  reduction from an officiating higher rank
                  to his substantive lower rank will not
                  ordinarily be a punishment. But the mere
                  fact that the servant has no title to the
                  post or the rank and the Government has,
                  by contract, express or implied, or under
                  the rules, the right to reduce him to a
                  lower post does not mean that an order of
                  reduction of a servant to a lower post or
                  rank cannot in any circumstances be a
                  punishment. The real test for determining
                  whether the reduction in such cases is or
                  is not by way of punishment is to find out
                  if the order for the reduction also visits
                  the servant with any penal consequences.
                  Thus if the order entails or provides for
                  the forfeiture of his pay or allowances or



                               Page 12 of 24
C/SCA/8522/2022                               JUDGMENT DATED: 10/02/2026




                  the   loss   of   his    seniority   in  his
                  substantive rank or the stoppage or
                  postponement of his future chances of
                  promotion, then that circumstance may
                  indicate   that   although    in   form  the
                  Government had purported to exercise its
                  right to terminate the employment or to
                  reduce the servant to a lower rank under
                  the terms of the contract of employment or
                  under the rules, in truth and reality the
                  Government has terminated the employment
                  as and by way of penalty. The use of the
                  expression “terminate” or “discharge” is
                  not conclusive. In spite of the use of
                  such innocuous expressions, the Court has
                  to apply the two tests mentioned above,
                  namely, (1) whether the servant had a
                  right to the post or the rank, or (2)
                  whether he has been visited with evil
                  consequences of the kind hereinbefore
                  referred to? If the case satisfies either
                  of the two tests then it must be held that
                  the servant has been punished and the
                  termination of his service must be taken
                  as a dismissal or removal from service or
                  the reversion to his substantive rank must
                  be regarded as a reduction in rank and if
                  the requirements of the rules and Article
                  311, which give protection to government
                  servant have not been complied with, the
                  termination    of   the    service   or  the
                  reduction in rank must be held to be
                  wrongful    and   in    violation    of  the
                  constitutional right of the servant.”
                                           (emphasis supplied)

                  35. We would only be adding to verbosity
                  by multiplying authorities. In view of the
                  above dictum, it is clear that the
                  Respondents did not comply with Clause 4 –
                  either the first part or the second part
                  thereof. The order dated 30.03.2013 does
                  visit the appellant with evil consequences
                  and would create hurdles for her re


                              Page 13 of 24
C/SCA/8522/2022                                JUDGMENT DATED: 10/02/2026




                  further employment.

                  36. In view of the discussions made herein
                  above, the Impugned Judgment is quashed
                  and set aside. The judgment of the learned
                  Single   Judge   dated  20.06.2017  stands
                  revived, however with a modification to
                  the extent that the appellant shall be
                  entitled to all consequential benefits
                  including notional continuation in service
                  at par with other similarly situated
                  employees,   but   with  the   back  wages
                  restricted to 50%. Further, in view of the
                  long passage of time, we deny liberty to
                  the respondents to proceed afresh against
                  the appellant as was granted by the
                  learned Single Judge. However, this will
                  not preclude the respondents from taking
                  action against the appellant in accordance
                  with law in futuro apropos her official
                  duties on the post in question, if the
                  situation so arises. The exercise be
                  completed within three months from the
                  date of receipt of this judgment.

                  15. Considering the observations made in
                  the above two decisions, the order of
                  termination was held to be stigmatic, in
                  respect of allegations levelled against
                  the concerned employee in each of the
                  petitions,   there    was    no   full-fledged
                  inquiry held and yet by assigning reasons
                  which   would    cast     stigma    upon    the
                  petitioners,    the     services      of    the
                  petitioners was terminated. In the instant
                  case also, some irregularities are alleged
                  in MGNREGA Scheme against each of the
                  petitioners     and       without       holding
                  departmental inquiry, on the aforesaid
                  ground, the petitioners' services were
                  terminated.    Therefore,       I    have    no
                  hesitation in holding that the termination
                  of services of each of the petitioners are
                  stigmatic in nature and the same is passed


                               Page 14 of 24
C/SCA/8522/2022                                JUDGMENT DATED: 10/02/2026




                  without holding any full-fledged inquiry
                  and,   therefore,   the   impugned    orders
                  terminating    the    services     of    the
                  petitioners are quashed and set aside and
                  the petitions stand allowed. Rule is made
                  absolute to the aforesaid extent. No order
                  as to costs.

                  16. The respondents are directed to
                  reinstate    the    petitioners    on   their
                  original posts which they were holding
                  prior to their termination upto the term
                  of their appointment, as if the order of
                  termination    was     never    passed.   The
                  reinstatement    of    the   petitioners   as
                  directed above shall be for the remaining
                  period of their contractual employment
                  upto making of total original period fixed
                  for their employment as per their order of
                  appointment. Further, it will be open for
                  the respondents, if they so deem fit, to
                  initiate a full-fledged inquiry against
                  each of the petitioners by complying with
                  the principles of natural justice and as a
                  result of quashment of the termination
                  orders in each of the petitions, if they
                  are entitled to any monetary benefits for
                  the interregnum period, the same shall be
                  considered notionally for taking into
                  consideration any benefits which may flow
                  on account of service conditions of the
                  petitioners.

                  17. As far as backwages is concerned,
                  learned AGP Ms. Nirali Sarda as well as
                  learned advocate Mr. Nisarg Jain appearing
                  for   the   respective  respondents   have
                  opposed the said prayer by stating that
                  the petitioners have not worked actually
                  in past since their termination. In
                  support of her contention, she relied upon
                  the decision of the Division Bench of this
                  Court   in   the   case  of   Bhaveshkumar
                  Rameshkumar Kanara v. State fo Gujarat


                               Page 15 of 24
C/SCA/8522/2022                               JUDGMENT DATED: 10/02/2026




                  decided on 17.10.2023 in Letters Patent
                  Appeal No.659 of 2023 wherein while
                  denying the monetary benefits for the
                  interregnum to the appellant, the Division
                  Bench has observed in paragraph 5.1 to 5.4
                  as under :-

                  "5.1 The decision of this Court in
                  Kaminiben Thakorbhai Patel Vs. State of
                  Gujarat, which was Letters Patent Appeal
                  No.761 of 2021, decided on 24.12.2021,
                  arose in the similar and nearly identical
                  set of facts.

                  5.1.1 While not granting the backwages,
                  the court observed thus in para 8,

                  “As far as the aspect of grant of back
                  wages to the appellants is concerned,
                  while on behalf of the appellants, the
                  relief of back wages was pressed by
                  submitting that the back wages have to
                  follow      automatically      when     the
                  reinstatement is directed upon holding the
                  termination illegal, certain conspicuous
                  aspects   stare   at   the   face   of  the
                  controversy in this case fir considering
                  the issue of back wages. Not only that
                  long time has elapsed since the appellants
                  are ordered to be reinstated by this order
                  and the principle of no work no pay would
                  apply. What becomes decisive in the matter
                  on this score is the factum that the
                  appellants were appointed for five years
                  initially and during such five years their
                  services came to be terminated by passing
                  the impugned order. They are reinstated as
                  per the above direction for the remainder
                  period providing further that all other
                  conditions in respect of nature of their
                  appointment    would   operate.   In   such
                  circumstances, the question of grant of
                  back wages does not arise. The appellants
                  will not be entitled to any back wages.”


                              Page 16 of 24
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                    5.2 The petitioner herein was a fixed term
                    employee, he has been reinstated for the
                    remainder term of five years subject to
                    further orders which may be passed by the
                    authorities for extension, if any, in the
                    term of employment. When the initial
                    tenure of the petitioner was fixed, that
                    very   aspect   would   render  grant   of
                    backwages not permissible.

                    5.3 It would be incongruent to grant
                    monetary benefits and the backwages while
                    reinstating   a   fixed   term   employee,
                    inasmuch as granting such benefit would
                    amount to giving salary beyond total term
                    of five years for which the appointment is
                    made."

                    18. Considering the above observations
                    made by the Division Bench of this Court,
                    it is held that none of the petitioners
                    are entitled to any backwages as in view
                    of the fact that the petitioners are
                    directed to be reinstated and State is
                    also   directed   to   ensure  that   the
                    petitioners are allowed to perform their
                    duties for the remaining period of their
                    contractual appointment."

10.     As     far     as   the   State's         submission      about       the
powers to terminate a contractual employee in view of
Government Resolution dated 28.3.2006 is concerned,
the coordinate Bench of this Court in the decision in
the case of Hiteshkumar Dahyabhai Rathod v. State of
Gujarat      delivered       on    8.10.2020         in    Special        Civil
Application           No.19460     of       2019     has      observed            in
paragraphs 17 and 18 as under :-




                                  Page 17 of 24
C/SCA/8522/2022                               JUDGMENT DATED: 10/02/2026




                  "17. The Division Bench of this Court in
                  the case of State of Gujarat vs. Chetan
                  Jayantilal    Rajgor     (Supra),      while
                  confirming the judgment of the learned
                  single Judge, dismissed the appeal. In the
                  case before the Division Bench, the
                  contention was raised on behalf of the
                  State Government that while discontinuing
                  service of an employee concerned, adequate
                  opportunities were extended and hence, the
                  action cannot be said to be in violation
                  of principles of natural justice. It was a
                  specific case of the State Government
                  before the Division Bench that the show
                  cause notice was issued requiring the
                  employee concerned to show cause as to why
                  his service should not be discontinued in
                  terms of the government resolution dated
                  4.6.2009 and it is only after considering
                  the detailed reply filed by the employees
                  concerned followed by a personal hearing
                  that the authorities took a decision of
                  putting   an   end   to   the    contractual
                  employment. It was contended before the
                  Division Bench that such action cannot be
                  termed to be de hors principles of natural
                  justice. It was also the case of the State
                  Government that full- fledged departmental
                  enquiry are not to be conducted in a
                  contractual employment inasmuch as, the
                  contractual employment are governed by
                  resolutions issued by the State Government
                  from time to time. The Division Bench,
                  while   not    accepting    the    aforesaid
                  contentions    raised    by     the    State
                  Government, affirmed the view taken by the
                  learned single Judge, observing in paras
                  6, 7, 8, 9 and 11 as under :-

                  “6. In the cognate matter also, almost
                  similar observations are visible and as
                  such, we do not propose to over burden the
                  present order. These observations if to be
                  examined in the background of present fact


                              Page 18 of 24
C/SCA/8522/2022                               JUDGMENT DATED: 10/02/2026




                  situation, the same are found to be just
                  and proper. It appears here that the
                  original petitioners were dealt with by
                  issuance of show cause notice with respect
                  to serious charges levelled against them
                  and the notice was given stating as to why
                  in terms of their appointment, they may
                  not be dismissed from the services. Now,
                  this show cause notice appears to have
                  been replied at length by the original
                  petitioners and subsequently, by giving a
                  brief   opportunity,   without    conducting
                  full-scale departmental inquiry, an order
                  of dismissal came to be passed. This
                  procedure which has been adopted by the
                  department   against   both   the   original
                  petitioners     and     undisputedly,     no
                  departmental inquiry having been conducted
                  against them, the learned Single Judge, on
                  the basis of relevant proposition of law
                  laid down by the Apex Court, was justified
                  in his view that in the absence of full-
                  scale departmental inquiry, the services
                  of   the   writ   petitioners    cannot   be
                  terminated in the manner in which it has
                  been put to an end. We see no infirmity in
                  the order passed by the learned Single
                  Judge, particularly having gone through
                  the relevant record made available to us.

                  7. This view which has been taken by the
                  learned Single Judge, to which we are also
                  in agreement, stands fortified by few
                  decisions by the Division Bench of this
                  Court which have already been relied upon
                  by the learned Single Judge.

                  8. The bone of contention of appellants –
                  State authorities is that since the
                  original petitioners are employed on a
                  contract   basis   and  fixed   pay,   the
                  Department is not under an obligation to
                  conduct a detailed full-scale departmental
                  inquiry. Now, this contention has been the


                              Page 19 of 24
C/SCA/8522/2022                                JUDGMENT DATED: 10/02/2026




                  subject matter of scrutiny on earlier
                  occasion before a Coordinate Bench in
                  Letters Patent Appeal No.189 of 2018
                  between Vadodara Municipal Corporation v.
                  Manishbhai Nayanbhai Modh, decided on
                  20.2.2018.   The    relevant   observations
                  contained   in   the   said  decision   are
                  reflecting in Para.4.1 which are also
                  based upon the decision of the Apex Court
                  and in consonance with the provision of
                  the Gujarat Civil Services (Discipline and
                  Appeal) Rules, 1971. The said observations
                  have also been considered at length by the
                  learned Single Judge which are reflecting
                  in Para. 5.7 of the impugned order.

                  9. Yet in another decision again by the
                  Division Bench of this Court rendered in
                  Letters Patent Appeal No.841 of 2019
                  between Rahul Aydanbhai Vak v. State of
                  Gujarat, decided on 15.4.2019, in which
                  the same issue has been considered. The
                  relevant discussion of the Division Bench
                  in the said case is contained in Para.7, 8
                  and 9, in which in no uncertain terms,
                  almost in similar set of circumstance, the
                  Division Bench has clearly opined that
                  full-scale departmental inquiry will have
                  to be undertaken, if initiation of action
                  on the basis of unsatisfactory work, gross
                  negligence or indiscipline or any act
                  which may tantamount to be stigmatic and
                  as such, consistently this view has been
                  clearly opined by the Division Bench.

                  11. From the overall material on record
                  and    in    consideration    of    aforesaid
                  observations, we see no distinguishable
                  material to take a different view or
                  deviate from the same. Since almost in
                  similar issue, the proposition is to the
                  effect    that   whenever   any   charge   is
                  levelled and action is found to be
                  stigmatic,     a   full-scale    departmental


                               Page 20 of 24
  C/SCA/8522/2022                               JUDGMENT DATED: 10/02/2026




                    inquiry    deserves    to  be   undertaken
                    irrespective of whether the delinquent was
                    a regular employee or contractual employee
                    on a fixed salary. As a result of this, we
                    are of the considered opinion that since
                    undisputedly by a brief procedure, an
                    action    is    initiated   against    the
                    respondents herein while dismissing their
                    services, said action itself is found to
                    be not on the touchstone of aforesaid
                    proposition of law. As a result of this,
                    no error is committed by the learned
                    Single   Judge.    Having  perused   these
                    material, we are not satisfied with the
                    submissions made by learned counsel for
                    the appellants in both these appeals.”

                    18. From the aforesaid enuncitation, it is
                    clear that whenever any charge is levelled
                    and action is found to be stigmatic, a
                    full-scale departmental enquiry deserves
                    to be undertaken irrespective of whether
                    the delinquent was a regular employee or
                    contractual employee on a fixed salary.
                    The    principles    enunciated   by   the
                    coordinate bench as well as by the
                    Division Bench of this Court apply on all
                    fours to the facts of the present case
                    inasmuch as, the allegation against the
                    petitioner is that by accepting the bribe,
                    he   has   committed   an   offence  under
                    provisions of the Act of 1988 and thereby
                    has not maintained absolute integrity and
                    has acted in defiance of clause (i) of
                    sub-rule (1) of Rule 3 of the Conduct
                    Rules of 1971. The aforesaid propositions
                    of law have not been disputed by the
                    learned Assistant Government Pleader on
                    principle as well as on facts."

11.          The       aforesaid     decision    was      carried            in
appeal by the State by way of Letters Patent Appeal
No.423 of 2021 and the said appeal was also dismissed


                                Page 21 of 24
  C/SCA/8522/2022                                    JUDGMENT DATED: 10/02/2026




by the Division Bench of this Court vide order dated
9.6.2021 wherein the Division Bench after considering
the above paragraphs 17 and 18 of the learned Single
Judge    and        other    relevant       paragraphs,        observed           in
paragraphs 7.2 and 8 as under :-


                    "7.2 Similar view has been taken by this
                    Court also while dismissing the Appeal
                    preceded by the State vide order dated
                    08.06.2021 passed in Letters Patent Appeal
                    No.99 of 2021 as well.

                    8. In all aforesaid judgments, the entire
                    case law has elaborately been discussed
                    and it is held that in absence of full
                    scale departmental inquiry, services of
                    the delinquent cannot be terminated if the
                    order of termination is found to be
                    stigmatic and hence we are unable to take
                    a different view as the same is based on
                    numerous judgments referred to in those
                    decisions."

12.          In       view   of    the    fact     that    the    contention
raised by the State Government about observance of
principles           of   natural        justice     has    already         been
considered by the coordinate Bench and the same has
not   been      accepted      by    the      Division      Bench      of    this
Court, I am bound by the view taken by the Division
Bench of this Court and, therefore, the aforesaid
submission that as the respondents have followed the
principles of natural justice before terminating the
petitioner or that such would amount to holding a
full-fledged departmental inquiry cannot be accepted.




                                   Page 22 of 24
  C/SCA/8522/2022                                       JUDGMENT DATED: 10/02/2026




13.           In view of above, as the present order of
termination is also found to be stigmatic order by
this Court, the facts of the present petition is also
squarely covered by the decision of this Court in
case of Rakeshkumar Bhursingbhai Katara (supra) and
accordingly, the impugned order of termination dated
13.04.2022 is required to be quashed and set aside
and the same is accordingly, quashed and set aside.
Resultantly,          the   petitioner           is        directed         to       be
reinstated. However, the reinstatement would be only
till    remaining       period      of     his        appointment         on     his
original post which the petitioner held prior to his
termination, as if the order of termination is never
passed.        Remaining       period            of        his     contractual
employment upto making of total original period fixed
for    his    employment       as   per      his       original        order         of
appointment.


14.           Further if the respondents, if they so deem
fit, it will be open for them to initiate a full-
fledged inquiry against the petitioner by complying
with   the        principles   of     natural          justice        and      as     a
result       of     quashing   the       order        of     termination             in
respect of present petitioner, if he is entitled to
any monetary benefits, the same shall be considered
notionally by the State Government. However, there
shall not be any entitlement of back-wages to the
petitioner.




                                 Page 23 of 24
      C/SCA/8522/2022                                                          JUDGMENT DATED: 10/02/2026




15. With the aforesaid observation and direction, the
petition is allowed. Rule is made absolute to the
aforesaid extent. No order as to costs.


16.                  The         petitioner                 shall            be       reinstated                  in
remaining period and thereafter, it is left to the
discretion of the authority whether to continue the
petitioner upon completion of contractual period by
placing the petitioner in regular pay scale or not to
extend his services as the same depends upon the
satisfactory service rendered by the petitioner as
per the appointment order itself. Direct service is
permitted.


                                                                            (NIRZAR S. DESAI,J)


Pallavi

Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: PALLAVIBEN PRABHUDAS PANCHAL(HC01403), PRIVATE SECRETARY, at High Court of Gujarat on 11/02/2026 12:57:16




                                                    Page 24 of 24


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