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Supreme Court of India

APSRTC & ORS.versusG. KONDAL RAO

Citation
2018 INSC 1173
Decided
7 December 2018
Disposal
Leave granted

Holding

Continuity of service cannot be granted unless the termination order is set aside, and the High Court's orders directing re‑engagement were unsustainable.

Summary

G. Kondal Rao, a contract conductor with APSRTC, was terminated after a departmental enquiry proved misconduct. He unsuccessfully challenged the termination through departmental and review mechanisms and then filed a writ petition under Article 226 of the Constitution. The Single Judge of the High Court, relying mechanically on an earlier batch order (Writ Petition No. 2786 of 2012), directed APSRTC to re‑engage Rao and grant him continuity of service, a decision affirmed by the Division Bench. The Supreme Court held that the High Court erred by not examining the specific facts, noting that continuity of service cannot be granted unless the termination order is set aside and that a worker dismissed for proven misconduct should not be placed on the same footing as other regularised contract employees. Consequently, the Court set aside both the Single Judge’s and the Division Bench’s orders and allowed the appeal.

Issues considered

  • Whether a High Court can order re‑engagement and continuity of service when the termination is based on proven misconduct after a departmental enquiry.
  • Whether continuity of service can be granted without setting aside the termination order.
  • Whether reliance on a prior batch order without case‑specific fact‑finding is permissible.
  • Whether a contract employee dismissed for misconduct can be regularised with continuity of service.

Legislation cited

Subjects

service lawterminationcontinuity of servicedepartmental enquirymisconductre‑engagementcontract employeenatural justiceArticle 226Industrial Disputes Act

Judgment

316                SUPREME[2018]
                           COURT 14REPORTS
                                   S.C.R. 316              [2018] 14 S.C.R.


A                            APSRTC & ORS.
                                    v.
                            G. KONDAL RAO
                     (Civil Appeal No. 12243 of 2018)
                          DECEMBER 07, 2018
B
              [DR. DHANANJAYA Y CHANDRACHUD AND
                            M. R. SHAH, JJ.]
            Service Law – Termination – Re-engagement and continuity
      in service – Respondent was appointed as a contract conductor
      and was working with the appellant-corporation – He was subjected
C
      to a departmental enquiry, after which he was terminated –
      Departmental appeal and Review petition preferred by him were
      rejected – Writ petition by the respondent – Single Judge of the
      High Court considering the earlier decision dated 29.02.2012 in
      Writ Petition No.2786 of 2012, disposed of the writ petition filed by
D     the respondent and directed the appellant to re-engage the
      respondent in service and extend the benefit of continuity of service
      to him from the date of termination till the date of his re-engagement
      except for the period during which he was absent – Same was upheld
      by the Division Bench of the High Court – On appeal, held: Single
      Judge of the High Court without having regard to the facts of the
E
      case, mechanically issued directions exclusively relying on the earlier
      decision dated 29.02.2012 in Writ Petition No.2786 of 2012 – Both
      Single Judge and the Division Bench of the High Court erred in not
      appreciating the facts of the instant case – In the instant case, the
      workman was dismissed from service after the departmental enquiry
F     and when the charges of misconduct were proved, that was not the
      case in Writ Petition No.2786 of 2012 – Furthermore, benefit of
      continuity of service ordered by the Single Judge was not sustainable
      unless the order of termination is set aside – Continuity is granted
      when the order of termination is set aside to ensure there is no hiatus
      in service – Thus, order of the Single Judge and the Division Bench
G
      of the High Court set aside.
            Allowing the appeal, the Court
           HELD: 1. The Single Judge of the High Court without
      having regard to the facts of the individual cases, mechanically
H
                                       316
              APSRTC & ORS. v. G. KONDAL RAO                             317


issued the directions exclusively relying on the earlier decision        A
dated 29.02.2012 in Writ Petition No.2786 of 2012. However,
the Single Judge and the Division Bench of the High Court both
have materially erred in not appreciating the facts that in the
present case the workman was dismissed from service after
holding the departmental enquiry and having all the charges of
                                                                         B
misconduct proved, that was not the case in Writ Petition
No. 2786 of 2012. [Para 5][319-F-H]
       2. The earlier order of the Single Judge dated 29.02.2012
was in a batch of cases, where termination orders were issued
without holding an enquiry in certain cases and after holding an
enquiry in others, though in violation of the principles of natural      C
justice. It was in that view of the matter that the direction
contained in Clause 6 of the operative order provided that in
cases where no enquiry was conducted, the Corporation would
be at liberty to conduct an enquiry in accordance with law, on the
allegations of misconduct. [Para 6][320-A-B]                             D
      3. Even otherwise such a direction cannot be issued by the
Single Judge without the termination being set aside. The ground
of continuity was not sustainable for the simple reason that unless
the order of termination is set aside, as a matter of first principle,
continuity cannot be granted. Continuity is granted when the order       E
of termination is set aside to ensure there is no hiatus in service.
[Para 7][320-C]
       4. There is another reason why the judgment of the High
Court cannot be sustained. It is common ground that the appellant
has recruited personnel like the present respondent on contract          F
after a regular process of selection. Eventually, the contract
employees are to be regularised. Granting continuity of service
to a person such as the respondent, who was found to have
committed misconduct, would place him on the same footing as
other contractual employees who have a record without blemish.
Hence, once a fresh appointment was given to the respondent              G
and neither the termination nor the fresh engagement was placed
in issue, the grant of continuity of service by the High Court was
manifestly misconceived. [Para 8][320-D-E]

                                                                         H
318                 SUPREME COURT REPORTS                     [2018] 14 S.C.R.


A           CIVIL APPELLATE JURISDICTION : Civil Appeal No. 12243
      of 2018
             From the Judgment and Order dated 26.04.2013 of the High Court
      of Judicature at Andhra Pradesh at Hyderabad in Writ Appeal No. 246
      of 2013.
B            Gourab Banerji, Sr. Adv., Sriharsha Peechara, Arjun Krishnan,
      Ashish Tiwari, Ms. Manisha Singh, Ms. Raka, C.S.N. Mohan Rao,
      Tanmaya Agarwal, A.N. Arora, Raj Kishor Choudhary, Advs. for the
      appearing parties.
             The Judgment of the Court was delivered by
C            M. R. SHAH, J.
             1. Leave granted.
             2. Feeling aggrieved and dissatisfied with the impugned judgment
      and order dated 26.04.2013 passed by the Division Bench of the High
      Court of judicature of Andhra Pradesh at Hyderabad in Writ Appeal No.
D     246 of 2013 the original respondents–corporation–employer has preferred
      the present appeal.
             3. The facts leading to the present appeal in nutshell are as under:
             a. That the respondent was appointed as a contract conductor
                 and was working with the appellant corporation.
E            b. That he was subjected to departmental enquiry.
             c. That following the report of the Enquiry Officer, his services
                 came to be terminated.
             d. That the departmental appeal also came to be rejected.
             e. Review petition before the Regional Manager also came to be
F                rejected on merits.
             f. That thereafter straightway and without recourse to remedies
                 available under the Industrial Disputes Act, the workman
                 original writ petitioner approached the High Court invoking
                 jurisdiction of the High Court under Article 226 of the
G                Constitution of India by filing Writ Petition No.25970 of 2012.
             g. That the learned Single Judge allowed the petition holding that
                 the matter was not res-integra and was covered by the earlier
                 judgment of the learned Single Judge dated 29.02.2012 in Writ
                 Petition No.2786 of 2012. Though on behalf of the corporation
                 an effort was made to distinguish the earlier decision on the
H
                 ground that in the present case a full-fledged enquiry has been
               APSRTC & ORS. v. G. KONDAL RAO                                 319
                       [M. R. SHAH, J.]

           held, this distinction did not find acceptance by the learned      A
           Single Judge and solely considering the decision of the learned
           Single Judge in Writ Petition No.2786 of 2012 and without
           even considering the facts of the case, dispose of the writ
           petition by directing the original respondents to re-engage the
           petitioner in service and extend the benefit of continuity of
                                                                              B
           service to him from the date of termination till the date of his
           re-engagement except for the period during which he was
           absent. This was, however, without monetary benefit and was
           directed to count only for regularization.
       h. The above order of the learned Single Judge was affirmed by
           the Division Bench in Writ Appeal.                                 C
       4. Mr. Gourab Banerji, learned Senior Counsel appearing on behalf
of the appellants has submitted that the Division Bench has materially
erred in affirming the order passed by the learned Single Judge and
without even considering the facts of the individual case and that the
Division Bench has not properly appreciated the fact that learned Single      D
Judge has amicably and without proper application of the facts disposed
of the writ petition solely relying upon the order passed by the learned
Single Judge dated 29.02.2012 in Writ Petition No.2786 of 2012, which
was not applicable at all. It is submitted in the present case as such the
original writ petitioner was dismissed from service after holding
departmental enquiry and after having held the charges and the                E
misconduct proved in a departmental enquiry. It is submitted that the
main judgment and order passed by the Division Bench affirming the
order passed by the learned Single Judge cannot be sustained and required
to be quashed and set aside.
       5. Having heard the learned counsel appearing on behalf of the         F
appellants herein and having considered the main judgment and order
passed by the learned Division Bench as well as the order passed by the
learned Single Judge, it appears that the learned Single Judge without
having regard to the facts of the individual cases, mechanically issued
the directions exclusively relying on the earlier decision dated 29.02.2012   G
in Writ Petition No.2786 of 2012. However, the learned Single Judge
and the Division Bench both have materially erred in not appreciating
the facts that in the present case the workman was dismissed from
service after holding the departmental enquiry and having all the charges
of misconduct proved, that was not the case in Writ Petition No.2786
of 2012                                                                       H
320                 SUPREME COURT REPORTS                        [2018] 14 S.C.R.


A            6. We may also note that the earlier order of the learned Single
      Judge dated 29.02.2012 was in a batch of cases, where termination
      orders were issued without holding an enquiry in certain cases and after
      holding an enquiry in others, though in violation of the principles of natural
      justice. It was in that view of the matter that the direction contained in
      Clause 6 of the operative order provided that in cases where no enquiry
B
      was conducted, the Corporation would be at liberty to conduct an enquiry
      in accordance with law, on the allegations of misconduct.
             7. Even otherwise such a direction cannot be issued by the learned
      Single Judge without the termination being set aside. The ground of
      continuity was not sustainable for the simple reason that unless the order
C     of termination is set aside, as a matter of first principle, continuity cannot
      be granted. Continuity is granted when the order of termination is set
      aside to ensure there is no hiatus in service.
              8. There is another reason why the judgment of the High Court
      cannot be sustained. It is common ground that the appellant has recruited
D     personnel like the present respondent on contract after a regular process
      of selection. Eventually, the contract employees are to be regularised.
      Granting continuity of service to a person such as the respondent, who
      was found to have committed misconduct, would place him on the same
      footing as other contractual employees who have a record without
E     blemish. Hence, once a fresh appointment was given to the respondent
      and neither the termination nor the fresh engagement was placed in
      issue, the grant of continuity of service by the High Court was manifestly
      misconceived.
            9. We find a considerable degree of merit in the submission of
F     learned senior counsel appearing on behalf of the Corporation that in
      deciding the entire batch of cases by a common order, the learned Single
      Judge as well as the Division Bench unfortunately lost sight of the facts
      of each individual case.
            10. For the above reason, we allow the present appeal and
G     accordingly set aside the impugned judgment and order dated 26.04.2013
      in Writ Appeal No.246 of 2013 as well as the judgment and order passed
      by learned Single Judge in Writ Petition No.25970 of 2012. No costs.

      Ankit Gyan                                                      Appeal allowed.

H


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