{"id":102360,"date":"1986-04-15T00:00:00","date_gmt":"1986-04-14T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/s-govindaraju-vs-k-s-r-t-c-anr-on-15-april-1986"},"modified":"2018-05-25T07:42:33","modified_gmt":"2018-05-25T02:12:33","slug":"s-govindaraju-vs-k-s-r-t-c-anr-on-15-april-1986","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/s-govindaraju-vs-k-s-r-t-c-anr-on-15-april-1986","title":{"rendered":"S. Govindaraju vs K.S.R.T.C. &amp; Anr on 15 April, 1986"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">S. Govindaraju vs K.S.R.T.C. &amp; Anr on 15 April, 1986<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1986 AIR 1680, \t\t  1986 SCR  (2) 509<\/div>\n<div class=\"doc_author\">Author: K Singh<\/div>\n<div class=\"doc_bench\">Bench: Singh, K.N. (J)<\/div>\n<pre>           PETITIONER:\nS. GOVINDARAJU\n\n\tVs.\n\nRESPONDENT:\nK.S.R.T.C. &amp; ANR.\n\nDATE OF JUDGMENT15\/04\/1986\n\nBENCH:\nSINGH, K.N. (J)\nBENCH:\nSINGH, K.N. (J)\nREDDY, O. CHINNAPPA (J)\n\nCITATION:\n 1986 AIR 1680\t\t  1986 SCR  (2) 509\n 1986 SCC  (3) 273\t  1986 SCALE  (1)794\n\n\nACT:\n     Karnataka\t Road\tTransport   Corporation\t  (Cadre   &amp;\nRecruitment) Regulations,  1982 -  Regulation 10(5)  - State\nRoad Transport Corporation - Conductor - Services terminated\nwithout enquiry\t -  Legality  of  -  Whether  principles  of\nnatural justice\t violated -  Opportunity  of  explanation  -\nEntitlement and necessity of.\n\n\n\nHEADNOTE:\n     Regulation 10(5)  of the  Regulations  (Karnataka\tRoad\nTransport Corporation  (Cadre and  Recruitment)\t Regulations\n1982  provides\tthat  during  temporary\/Badli  employment  a\ncandidate if  terminated\/removed from  service as unsuitable\nfor the post, he will forfeit his chance for the appointment\nin terms of his selection.\n     The appellant was selected for appointment as Conductor\nin the\tKarnataka  State  Road\tTransport  Corporation\t-  a\nstatutory authority  constituted under\tthe  Road  Transport\nCorporation Act 1950. His name was placed on the select list\nprepared by  the Selection  Committee constituted  under the\nKarnataka  State   Road\t Transport  Corporation\t (Cadre\t and\nRecruitment) Regulation\t 1982. He  was not  given a  regular\nappointment but,  he was  appointed to\twork as Conductor in\ntemporary vacancy. He continued to work for a period of more\nthan 240  days. While  he  was\tworking\t as  Conductor,\t his\nservices were  terminated  under  Regulation  10(5)  of\t the\nRegulations on\tthe ground of his being found unsuitable for\nthe post  without giving any opportunity of explanation. The\ntermination order  further stated  that the  appellant would\nforfeit his chance for appointment in terms of selection and\nhis name shall stand deleted from the select list.\n     The appellant  challenged the  validity of\t termination\norder before  the High\tCourt in  a Writ  Petition. The High\nCourt dismissed\t the Writ Petition holding that the order of\ntermination was\t made in  terms under  which employment\t was\ngiven\n510\nto him\tand it\tdid not amount to retrenchment in view of s.\n2(00)(bb) of the Industrial Disputes Act 1947.\n     Allowing the appeal,\n^\n     HELD 1.  The appellant was not afforded any opportunity\nof explanation\tbefore the  issue  of  the  impugned  order.\nConsequently, the  order is  rendered null  and\t void  being\ninconsistent  with   the  principles   of  natural  justice.\nTherefore the  order of\t the High Court as also the order of\ntermination are set aside and the appellant shall be treated\nin service  and be  paid his  back wages and other benefits.\n[514 C-D]\n     2. The  Karnataka Road Transport Corporation (Cadre and\nRecruitment) Regulations  1982 which regulate the conditions\nof service  of its employees, are statutory in nature having\nbeen  framed   under  s.  45(2)(c)  of\tthe  Road  Transport\nCorporation Act.  Once a  candidate is selected and his name\nis included  in the  select  list  in  accordance  with\t the\nRegulations,  he   gets\t a   right  to\t be  considered\t for\nappointment as\tand when  vacancy arises.  On the removal of\nhis name from Select List, serious consequences entail as he\nforfeits his  right to\temployment  in\tfuture.\t In  such  a\nsituation even\tthough the  Regulations do not stipulate for\naffording any  opportunity to the employee, the principle of\nnatural justice would be attracted and the employee would be\nentitled  to   an  opportunity\tof  explanation,  though  no\nelaborate inquiry  would be necessary. Giving an opportunity\nof explanation\twould meet  the bare  minimal requirement of\nnatural justice.  Before the  services of  an  employee\t are\nterminated, resulting  into forfeiture\tof his\tright to  be\nconsidered for\temployment, opportunity\t of explanation must\nbe afforded  to the  employee concerned. [513 D-E; 513H; 514\nA-C]\n\n\n\nJUDGMENT:\n<\/pre>\n<p>     CIVIL  APPELLATE\tJURISDICTION  :\t  Civil\t Appeal\t No.<br \/>\n1339(NL) of 1986.\n<\/p>\n<p>     From the  Judgment and  Order dated 19.6.85 in the High<br \/>\nCourt of Karnataka at Bangalore in W.P. No. 9171 of 1985.\n<\/p>\n<p>     R.K. Garg,\t V. Laxminarayana  and\tD.K.  Garg  for\t the<br \/>\nAppellant.\n<\/p>\n<p>     G.B. Pai,\tN.D.B. Raju, Miss Deepa and Vineet Kumar for<br \/>\nthe Respondent.\n<\/p>\n<p><span class=\"hidden_text\">511<\/span><\/p>\n<p>     The Judgment of the Court was delivered by<br \/>\n     SINGH, J. Special Leave to appeal is granted.<br \/>\n     This appeal  is directed  against the order of the High<br \/>\nCourt of Karnataka dismissing the respondents&#8217; writ petition<br \/>\nunder Art.  226 of the Constitution challenging the order of<br \/>\ntermination of\tservice on  the ground that it was violative<br \/>\nof Sec. 25F of the Industrial Disputes Act, 1947.\n<\/p>\n<p>     Briefly the  facts giving\trise to this appeal are that<br \/>\nthe appellant  was selected  for appointment as Conductor in<br \/>\nthe Karnataka  State Road  Transport Corporation constituted<br \/>\nunder the  Transport Act,  1950, his  name was placed on the<br \/>\nselect list  prepared by the Selection Committee constituted<br \/>\nunder the  Karnataka State Road Transport Corporation (Cadre<br \/>\nand Recruitment) Regulation 1982. He was not given a regular<br \/>\nappointment but\t he was\t appointed to  work as\tconductor in<br \/>\ntemporary vacancy. He continued to work for a period of more<br \/>\nthan 240  days.\t While\the  was\t working  as  conductor\t his<br \/>\nservices were  terminated by  the Order dt. 2-4\/5 of 1985 on<br \/>\nthe ground  of his  being found unsuitable for the post. The<br \/>\ntermination order  further directed that the appellant would<br \/>\nforfeit his chance for appointment in terms of selection and<br \/>\nhis name  shall stand  deleted from  the  select  list.\t The<br \/>\nappellant  challenged  the  validity  of  termination  order<br \/>\nbefore the  High Court\tof Karnataka  by means of a petition<br \/>\nunder Art.  226 of  the Constitution  on the ground that the<br \/>\norder of  termination was  void and  illegal  for  the\tnon-<br \/>\ncompliance of Sec. 25F of the Industrial Disputes Act, 1947.<br \/>\nA learned  Single Judge\t of  the  High\tCourt  of  Karnataka<br \/>\nrejected the  petition holding that the order of termination<br \/>\nwas made  in terms  under which\t employment was given to him<br \/>\nand it\tdid not\t amount to  retrenchment  in  view  of\tSec.<br \/>\n2(oo)(bb) of the Act.\n<\/p>\n<p>     Section 25F  of the  Industrial Disputes  Act  provides<br \/>\nthat no\t workman employed  in any  industry who\t has been in<br \/>\ncontinuous service  for not  less than\tone  year  under  an<br \/>\nemployer shall\tbe retrenched  by that employer until he has<br \/>\nbeen  paid   retrenchment  compensation\t  which\t  shall\t  be<br \/>\nequivalent to  15 days\taverage pay for completing a year of<br \/>\nservice or  any part  thereof in excess of 6 months. Section<br \/>\n25F was designed by the Parliament to safeguard the interest<br \/>\nof  employees.\tThe  statutory\trequirement  of\t payment  of<br \/>\ncompensation is a condi-\n<\/p>\n<p><span class=\"hidden_text\">512<\/span><\/p>\n<p>tion precedent\tfor the\t retrenchment of  a workman  and any<br \/>\ntermination without  payment  would  make  the\tretrenchment<br \/>\norder invalid  and inoperative,\t as has\t been held  by\tthis<br \/>\nCourt in  <a href=\"\/doc\/63310\/\">State Bank  of India\tv. Shri.  N.  Sundra  Money,<br \/>\nA.I.R.<\/a> 1976  S.C. 1111;\t <a href=\"\/doc\/334832\/\">Santosh  Gupta\t v.  State  Bank  of<br \/>\nPatiala, A.I.R.<\/a>\t 1980 S.C.  1219; Mohan\t Lal  v.  Management<br \/>\nB.E., A.I.R.  1981 S.C.\t 1253 and  Management K.S.R.T.C.  v.<br \/>\nBaraiah, A.I.R. 1983 S.C. 1320.\n<\/p>\n<p>     Section 2(oo)  defines  retrenchment  which  means\t the<br \/>\ntermination by\tthe employer  of a  workman for\t any  reason<br \/>\nwhatsoever, otherwise  than as a punishment inflicted by way<br \/>\nof disciplinary\t action, but  does not include (a) voluntary<br \/>\nretirement of  workman; or  (b) retirement of the workman on<br \/>\nreaching the  age of  superannuation if\t the contract  of an<br \/>\nemployment between  the employer  and the  workman concerned<br \/>\ncontains a  stipulation in that behalf or (c) termination of<br \/>\nthe service  of a  workman on  the ground  of continued\t ill<br \/>\nhealth. By the amending Act 49 of 1984 a new clause (bb) was<br \/>\nadded to Sec. 2(oo). The amended provision runs as under :\n<\/p>\n<blockquote><p>\t  2(oo) &#8220;retrenchment&#8221;\tmeans the termination by the<br \/>\n\t  employer of  the service  of\ta  workman  for\t any<br \/>\n\t  reason whatsoever,  otherwise than as a punishment<br \/>\n\t  inflicted by\tway of disciplinary action, but does<br \/>\n\t  not include &#8211;\n<\/p><\/blockquote>\n<pre>\t  (a) x\t   x\tx    x\t  x    x    x\n\t  (b) x\t   x\tx    x\t  x    x    x\n<\/pre>\n<blockquote><p>\t  &#8220;(bb) termination of the service of the workman as<br \/>\n\t  a result  of the  non-renewal of  the contract  of<br \/>\n\t  employment between  the employer  and the  workman<br \/>\n\t  concerned on\tits expiry or of such contract being<br \/>\n\t  terminated under  a  stipulation  in\tthat  behalf<br \/>\n\t  contained therein; or&#8221;.<\/p><\/blockquote>\n<p>     The High Court held that since the appellant&#8217;s contract<br \/>\nfor employment\tcontained a  stipulation that  his  services<br \/>\ncould be  terminated at\t any time,  the termination  did not<br \/>\namount to  retrenchment in view of the newly added exception<br \/>\nto Sec.\t 2(oo). The  validity of  Section 2(oo)(bb)  was not<br \/>\nchallenged before  us. The learned counsel for the appellant<br \/>\nurged that if<br \/>\n<span class=\"hidden_text\">513<\/span><br \/>\nthe view  of the  High Court  is accepted  it  would  enable<br \/>\nunscrupulous emloyers  to  provide  a  stipullation  in\t the<br \/>\ncontract of  service for  terminating the  employment of the<br \/>\nemployees to  escape the  rigorous of  Sec. 25F\t of the Act.<br \/>\nThis would  further confer arbitrary powers on the employers<br \/>\nwhich would  be destructive of the protection granted by the<br \/>\nAct to\tthe employees.\tWe do  not consider  it necessary to<br \/>\nexpress any  opinion on\t this question as in our opinion the<br \/>\nappellant is  entitled to  succeed on another short question<br \/>\ni.e. the  termination order being violative of principles of<br \/>\nnatural justice.\n<\/p>\n<p>     The Karnataka  State Road\tTransport Corporation  is  a<br \/>\nstatutory authority  constituted under\tthe  Road  Transport<br \/>\nCorporation  Act,   1950.   The\t  Corporation\thas   framed<br \/>\nRegulations (Karnataka\tRoad Transport\tCorporation Cadre  &amp;<br \/>\nRecruitment Regulations)  1982 regulating  the conditions of<br \/>\nservice of its employees. These regulations are statutory in<br \/>\nnature having  been framed  under sec.\t45(2)(c) of the Road<br \/>\nTransport Corporation  Act.  Admittedly\t the  appellant\t was<br \/>\nselected by  the Selection  Committee constituted  under the<br \/>\naforesaid Regulations  and his\tname  was  included  in\t the<br \/>\nselect list  prepared for  the\tpurpose\t of  appointment  as<br \/>\nConductor as and when vacancy would arise. His name was also<br \/>\nincluded in  the Badli\tlist of\t workers  and  in  pursuance<br \/>\nthereof he  was given  employement. There is no dispute that<br \/>\nthe appellant  was allowed to be in continuous service for a<br \/>\nperiod of  more than one year and while he was in continuous<br \/>\nservice the  impugned order  of termination  was  issued  in<br \/>\naccordance with\t Regulation 10(5). The relevant provision of<br \/>\nRegulation  10(5)   provides  that   during  temporary\/Badli<br \/>\nappointment a  candidate if  terminated\/removed from service<br \/>\nas unsuitable  for the\tpost he\t will forfeit his chance for<br \/>\nthe appointment\t in terms  of his  selection.  There  is  no<br \/>\ndispute that the appellant&#8217;s services were terminated on the<br \/>\nground of his being found unsuitable for the appointment and<br \/>\nas a  result of\t which his  name was deleted from the select<br \/>\nlist, and  he forfeited\t his chance  for appointment. Once a<br \/>\ncandidate is selected and his name is included in the select<br \/>\nlist for  appointment in  accordance with the Regulations he<br \/>\ngets a\tright to  be considered\t for appointment as and when<br \/>\nvacancy arises.\t On the\t removal of his name from the select<br \/>\nlist serious  consequence entail as he forfeits his right to<br \/>\nemployment in future. In such a<br \/>\n<span class=\"hidden_text\">514<\/span><br \/>\nsituation even\tthough the  Regulations do not stipulate for<br \/>\naffording any opportuniry to the employee, the principles of<br \/>\nnatural justice would be attracted and the employee would be<br \/>\nentitled  to   an  opportunity\tof  explanation,  though  no<br \/>\nelaborate enquiry  would be necessary. Giving an opportunity<br \/>\nof explanation\twould meet  the bare  minimal requirement of<br \/>\nnatural justice.  Before the  services of  an  employee\t are<br \/>\nterminated, resulting  into forfeiture\tof his\tright to  be<br \/>\nconsidered for\temployement, opportunity of explanation must<br \/>\nbe afforded to the employee concerned. The appellant was not<br \/>\nafforded any  opportunity of explanation before the issue of<br \/>\nthe impugned  order consequently  the order is rendered null<br \/>\nand void  being inconsistent  with the principles of natural<br \/>\njustice. We  accordingly allow\tthe appeal and set aside the<br \/>\norder of  the High  Court and  also the order of termination<br \/>\nand direct  that the  appellant shall  be treated in service<br \/>\nand be paid his back wages and other benefits. The appeal is<br \/>\nallowed with costs.\n<\/p>\n<pre>M.L.A.\t\t\t\t\t     Appeal allowed.\n<span class=\"hidden_text\">515<\/span>\n\n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India S. Govindaraju vs K.S.R.T.C. &amp; Anr on 15 April, 1986 Equivalent citations: 1986 AIR 1680, 1986 SCR (2) 509 Author: K Singh Bench: Singh, K.N. (J) PETITIONER: S. GOVINDARAJU Vs. RESPONDENT: K.S.R.T.C. &amp; ANR. DATE OF JUDGMENT15\/04\/1986 BENCH: SINGH, K.N. (J) BENCH: SINGH, K.N. (J) REDDY, O. CHINNAPPA (J) CITATION: 1986 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-102360","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>S. 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