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Supreme Court of India

KUNWAR ARUN KUMARversusU.P. HILL ELECTRONICS CORPORATION LTD. AND ORS.

Citation
1996 INSC 1236
Decided
28 October 1996
Disposal
Dismissed

Holding

An employer may terminate a probationary employee without an enquiry if the employee's performance is unsatisfactory, and such termination does not violate Article 311(2) nor constitute stigma.

Summary

The petitioner was appointed on probation on 15 January 1990 with a clause allowing termination without assigning any reason during the probation period. He was terminated on 16 January 1991 on the ground that his work performance was unsatisfactory and he was regularly absent. The petitioner challenged the termination, alleging that it violated Article 311(2) of the Constitution, amounted to stigma, and that he was entitled to an enquiry before dismissal. The Supreme Court held that during probation an employer may assess suitability and, if performance is unsatisfactory, may terminate the employee without conducting an enquiry, and such termination does not constitute stigma or a breach of Article 311(2). Consequently, the special leave petition was dismissed.

Issues considered

  • Whether termination of a probationary employee without an enquiry violates Article 311(2) of the Constitution of India.
  • Whether such termination amounts to a stigma under service law.
  • Whether an employer is required to conduct an enquiry before terminating a probationer.

Legislation cited

Subjects

probationterminationservice lawArticle 311stigmaenquiryemployment law

Judgment

                          KUNWARARUNKUMAR                                           A
                                   v.
    ~      U.P. HILL ELECTRONICS CORPORATION LTD. AND ORS.

                                  OCTOBER 28, 1996

                  [K. RAMASWAMY AND G.B. PATTANAIK, JJ.]                            B
             Service Law :

               Termination-During probation period employee's performance found
.       to be unsatisfactory-No enquiry conducted-Held, during probation period
        work and performance ofduties unsatisfactory-Was regularly absent-No        c
        need for enquiry-Employer entitled to terminate services of such
        employees-Does not amount to stigma.

             CIVIL APPELLATE JURISDICTION : Special Leave Petition (C)
        No. 20481 of 1996.
                                                                                    D
             From the Judgment and Order dated 3.7.96 of the Allahabad High
        Court in W.P. No. 6676 (S/S) of 1992.

             D.V. Sehgal, Ms. Suman Bala Rastogi and Ms. Monica Goswami for
        the Petitioner.
                                                                                    E
             The following Order of the Court was delivered :

             I.A. is dismissed.

             This special leave petition arises from the Order and judgment of
        the Division Bench of the Allahabad High Court dated July 3, 1996 in        F
        Writ Petition No. 6676(S/S) 92.

               The petitioner was appointed on January 15, I 990 in the pay-scale
        of Rs. 550-1100 with allowance; total remuneration was coming to Rs.
        1991.40. He was put on probation as contemplated under clause (2) of the
        letter of appointment which reads as under:                                 G
'>                "You will be on probation for a period of 12 months from the
                  date of your joining, which period may be extended from time
                  to time at the discretion of the Management. During the period
                  of probation, your services may be terminated without assigning
                  any reason therefore."                                            H
                                             19
    20                       SUPREME COURT REPORTS [1996] SUPP. 8 S.C.R.


A        His service was terminated by proceedings dated January 16, 1991
    which reads as under:

               "During the period of probation your work performance was
               found unsatisfactory. Therefore, your services are hereby
               terminated with effect from 16 Jan. 91 as per clause (2) of your
B              appointment letter referred to above."

          The petitioner challenged the order of termination in the High Court.
  The High Court without going into t'ie question whether or not it is stigma,
  came to the conclusion that the respondents had totally lost confidence in
  the appellant and that he was totally unsuitable to the job for which he was
C employed and, therefore, he was found not entitled to any enquiry.
  Consequently, it dismissed the writ petition. Shri Sehgal, learned senior
  counsel for the petitioner, contends that the finding recorded amounts to a
  stigma; action taken without conduction enquiry and giving an opportunity
  to the petitioner, is violative of Article 311(2) of the Constitution and the
  rules made thereunder. Therefore, he is entitled to an opportunity to being
D heard and be dismissed only on the ground of misconduct and not by
  termination simpliciter. We do not agree with the learned counsel. The
  reasons mentioned in the !)rder may be a motive and not a foundation as a
  ground for dismissal. During the period of probation, the authorities are
  entitled to assess the suitability of the candidates and if it is found that the
  candidate is not suitable to remain in service they are entitled to record a
E finding of unsatisfactory performance of the work and duties during the
   period of probation. Under these circumstances, necessarily the appointing
  authority has to look into the performance of the work and duties during
   the period of probation and if they record a finding that during that
   probation period, the work and performance of the duties were
F unsatisfactory, they are entitled to terminate the service in terms of the
   letter of appointment without conducting any enquiry. That does not amount
   to any stigma. If the record does not support such a conclusion reached by
   the authorities, different complexion would arise. In this case, they have
   recorded the finding that the petitioner was regularly absent on one ground
   or the other. Under these circumstances, the respondents terminated his
G services. We do not find any illegality in the action taken by the respondents.
                                                                                     ... .
           The special leave petition is accordingly dismissed.

    G.N.                                                      Petition dismissed.


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