V.P. AHUJAversusSTATE OF PUNJAB AND ORS.

A                                    V.P.AHUJA
                                          v.
                          STATE OF PUNJAB AND ORS.

                                  MARCH 6, 2000

B                   [S. SAGHIRAHMAD AND RP. SETHI, JJ.]


          Service Law :

           Probationer-Termination of service. during the period of probation-
    Order stating that employee failed in performance ofhis duties administratively
c   and technically-Held, order is stigmatic and punitive-Could not have been
    passed without holding a regular inquiry and giving an opportunity of hearing
    to the employee-Order quashed-Administrative Law-Principles of natural
    justice.

6          The appellant was appointed as Chief Executive in the establishment
    of the Punjab Co-operative Cotton Marketing and Spinning Mills Federa-
    tion Ltd. His services were terminated during the period of probation by
    an order stating that he failed in the performance of his duties administra-
    tively and technically. The writ petition filed by him was dismissed by the
    High Court holding that the order was not stigmatic. Aggrieved, the appel-
E   lant filed the present appeal.

          Allowing the appeal, the Court

           HELD : 1.1. The order terminating the services of the appellant, ex
    facie, is stigmatic as also punitive. The order is founded on the ground that
F   the appellant had failed in the performance of his duties administratively
    and technically. It is for this reason that the services of the appellant were
    terminated. [132-D]

           1.2. A probationer, like a temporary servant, is also entitled to cer-
    tain protection and his services cannot he terminated arbitrarily, nor can
G   those services be terminated in a punitive manner without complying with
    principles of natural justice. In the instant case, the order which on the
    face of it, is stigmatic, could not have been passed without holding a
    regular inquiry and giving an opportunity of bearing to the appellant, and
    is, therefore, quashed. The appellant shall he put back on duty with all
H   consequential benefits. [132-G; 133-A-C]
                                          130
_,__




                      V.P. AHUJA v. STATE [S. SAGHIR AHMAD, J.]                131
            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1965 of2000.               A

            From the Judgment and Order dated 26.3.99 of the Punjab & Haryana
       High Court in C.W.P. No. 4084 of 1998.

           M. Qamaruddin, Ambar Qamaruddin, Ajay Talesara and Mrs. M.
       Qamaruddin for the Appellant.                                                  B
            Mrs. Jayshree Anand (Additional Advocate General, Punjab), G.
       Sivabalamurugan, Rajiv Dutta and Ashok K. Mahajan for the Respondents.

            The Judgment of the Court was delivered by
                                                                                      c
            S. SAGHIR AHMAD, J. Leave granted.

             The appellant was appointed as Chief Executive in the Establishment
       ~f Punjab   Co-operative Cotton Marketing & Spinning Mills Federation
       Limited by order dated 29th of September, 1998. One of the terms of his
       appointment was that he would be on probation for a period of two years        D
       which could be extended further at the discretion of the Management. It
       further provided that during the probation period, the Management shall haw
       the right to terminate his services without notice. His services were termi-
       nated by order dated 2.12.1998 reading as under :-
                                                                                      E
                "ORDER

                    Sh. V.P. Ahuja, S/o Late Sh. H.N. Ahuja was appointed on
               probation for 2 years as Chief Executive of the Coop. Spg. Mills
               Ltd., vide orders Endst. No. Spinfed/CCA/7844-45 dated 29.9.98
               and posted at Bacospin. However, he failed in the performance of       F
               his duties administratively and technically. Therefore; as per
               Clause-I of the said appointment order, the services of Sh. V.P.
               Ahuja are hereby terminated with immediate effect.

                                                                     Sd/-
                                                                                      G
                                                              (Managing Director)
                                                                   SPINFED"

            This order was challenged by the appellant in the Punjab and Haryana
       High Court through a Writ Petition which was dismissed by order dated 26th
       of March, 1999 reading as under :-                                             H
     132                      SUPREME COUR-T REPORT~ -              [2000] 2 S.C.R.
A                  "Vide order dated 2.12.1998, Annexure-P-17 petitioner has been
              asked to quit, concededly during the period of probation. The
              impugned order is not stigmatic and nothing at all has been urged
              that may detract from such an order being passed during the
              currency of probation. Insofar as, thus, order, Annexure-P-17 is
              concerned, we fmd no infirmity therein."
B
           It is this order which is challenged in this appeal.

           The observation of the High Court that :-

              "The impugned order is not stigmatic and nothin& at all has been
c             urged that may detract from such an order being passed during the
              currency of probation."

 /is surprising, to say the least. The order by which the services of the appellant
   were terminated has already been quoted by us above. The order, ex f acie,
D is stigmatic as also punitive. The order is founded on the ground that the
   appellant had failed in the performance of his duties administr~tively and
   technically. It is for this reason that the services of the appellant were
   terminated. As pointed out above, the order, ex facie, is stigmatic.

             Learned counsel for the respondents has, contended that the appellant,
E    after appointment, was placed on probation and though the period of proba-
     tion was two years, his services could be terminated at any time during the
     period of probation without any notice, as set out in the appointment letter.
     It is contended that the appellant cannot claim any right on the post on which
     he was appointed and being on probation, his work and conduct was all along
     under scrutiny and since his work was not satisfactory, his services were
F
     terminated in terms of the conditions set out in the Appointment Order. This
     plea cannot be accepted.
                                                                                       -
           A probationer, like a temporary servant, is also entitled to certain
     protection and his services cannot be terminated arbitrarily, nor can those
G    services be terminated in a punitive manner without complying with the
     principles of natural justice.

           The affidavits filed by the parties before the High Court as also in this
     Court indicate the background in which the order, tertninatlng the services of
     the appellant, came to be passed. Such an order which, on the face of it. is
H
               V.P. AHUJA v. STATE [S. SAGHIR AHMAD, J.j                    133
                                                                      /'"
stigmatic, could not have been passed without holding a regular enquiry and       A
giving an opportunity of hearing to the appellant.

      The entire case law with respect to a "probationer" was reviewed by
this Court in a recent decision in Dipti Prakash Banerjee v. Satyendra Nath
Bose National Centre for Basic Sciences, Calcutta & Others, [1999] 3 SCC
60=AIR (1999) SC 983=IT (1999) 1 SC 396. This decision fully covers the           B
instant case as well, particularly as in this case, the order impugned is
stigmatic on the face of it.

      For the reasons stated above, the appeal is allowed, the judgment dated
26.3.1999, passed by the High Court is set aside anq the Writ Petition of the
appellant is allowed. The order dated 2.12.1998, by which tl1e services of the
                                                                                  c
appellant were terminated, is quashed with the direction that he shall be put
back on duty with all consequential benefits. No costs.

R.P.                                                         Appeal allowed.