Court rules that contractual employment termination does not require formal enquiry unless stigmatic or based on misconduct allegations.
The Jammu and Kashmir High Court has dismissed the appeal of Manzoor Ahmad Bhat, who challenged the termination of his contractual employment as a Laboratory Assistant under the Ex-Servicemen Contributory Health Scheme (ECHS). The division bench, comprising Justices Mrs. Sindhu Sharma and Shahzad Azeem, upheld the decision of the Single Judge, affirming that the termination was justified and did not violate principles of natural justice.
Manzoor Ahmad Bhat was engaged on a contractual basis and had his term extended multiple times before receiving a termination notice. He contested the termination on the grounds that it was stigmatic and issued without a proper enquiry. However, the High Court clarified that the termination was based on unsatisfactory performance and lack of professional competence, which did not amount to punishment requiring formal enquiry under Article 311 of the Constitution.
The court reiterated the legal position that contractual employees, unlike permanent government servants, do not enjoy the protection under Article 311. The termination in such cases does not constitute punishment unless it is stigmatic or based on specific allegations of misconduct. The court found no stigma attached to the termination order, emphasizing that the appellant was warned multiple times for unprofessional conduct and unsatisfactory performance.
The bench referred to several Supreme Court judgments, including Parshotam Lal Dhingra v. Union of India and Oil and Natural Gas Commission v. Dr. Mohd. S. Iskender Ali, to substantiate that termination based on unsuitability or unsatisfactory performance does not necessitate a formal enquiry for contractual or temporary employees.
The High Court's decision reinforces the principle that the termination of contractual employment, unless punitive in nature, does not warrant the procedural safeguards applicable to permanent civil servants. The appeal was consequently dismissed, upholding the termination as lawful and within the contractual terms agreed upon by the parties.
Bottom line:-
Termination of contractual employment does not require a formal enquiry unless it is stigmatic or based on specific allegations of misconduct.
Statutory provision(s): Article 311 of the Constitution, principles of natural justice.
