High CourtDivision BenchAppeal allowed.

The Depot Manager & Ors. v. Sri S. Krishna

Case / Petition Number:Civil Appeal No.12244 of 2018
Neutral Citation:[2018] 14 S.C.R. 1263

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Dr. Dhananjaya Y. Chandrachud
  • M. R. Shah
Judgment Date
2018-12-07
Court Decision / Holding
Appeal allowed. The Supreme Court set aside the impugned judgment and order of the Andhra Pradesh High Court in Writ Appeal No.1344 of 2013 and the Single Judge’s order in Writ Petition No.5632 of 2012. It held that the High Court mechanically relied on an earlier decision and failed to assess the particular facts of this case, including the fact that a departmental enquiry had found misconduct. Consequently, continuity of service cannot be granted unless the termination is set aside. No costs were awarded.
Final Disposition
Appeal allowed.

Parties to the Case

Appellants / Petitioners

  • The Depot Manager & Ors.

Respondents

  • Sri S. Krishna

Legal Representation & Advocates

Counsels for Petitioners

  • • Gourab Banerji
  • • Sriharsha Peechara
  • • Arjun Krishnan

Counsels for Respondents

  • • Ashish Tiwari
  • • Manisha Singh
  • • Raka
  • • C.S.N. Mohan Rao
  • • Tanmaya Agarwal
  • • A.N. Arora
  • • Raj Kishor Choudhary

Case Synopsis & Summary

This is a Civil Appeal from a decision of the Andhra Pradesh High Court (Writ Petition No.5632 of 2012; Writ Appeal No.1344 of 2013) involving a contract employee (Sri S. Krishna) dismissed after a departmental enquiry for misconduct. The Depot Manager & Ors. (employer) challenged the High Court’s directions that directed re-engagement and granted continuity of service from the date of termination until re-engagement, effectively treating the termination as though it could be neutralized by counting service and regularisation of contract staff. The Supreme Court held that the Single Judge’s order was issued mechanically, relying exclusively on a prior decision (Writ Petition No.2786 of 2012) which was not applicable to the present case since the employee had a full departmental enquiry with proved misconduct. It reasoned that continuity of service cannot be granted unless the termination is set aside and that such continuity would be inappropriate where the employee had misconduct and a fresh appointment had subsequently been made. The Court emphasized that the earlier batch decision involved termination without enquiry and should not govern this case. Ultimately, the Court allowed the appeal, set aside the High Court’s judgment and order, and remitted with no costs, thereby reversing the continuity relief and re-engagement order.

Provisions of Law Cited

Constitution of India, Article 226

Legal Doctrines & Maxims

  • Principles of natural justice

Submissions & Arguments

Contentions of Appellants / Petitioners

The applicants contended that the High Court and the learned Single Judge had mechanically relied on an earlier decision in Writ Petition No. 2786 of 2012, without applying the facts to the present case. They argued that the employee was terminated after a full departmental enquiry with proven misconduct, and that continuity of service should not be granted unless the termination is set aside. They emphasised that continuity in service is only appropriate to avoid a hiatus if the termination is quashed; otherwise granting continuity would place a misconducting contract employee on par with other regularised staff, undermining the rationale of regularisation and selection. The appellants asserted that the decision in the earlier batch was not applicable to this case and that the High Court erred in treating it as binding. They urged reversal of the impugned orders and preservation of the termination outcome.

Contentions of Respondents

The respondents contended that the directions of re-engagement and continuity were warranted and consistent with the broader objectives of ensuring no hiatus in service for contract employees, and with earlier precedents where regularisation is contemplated after due process. They argued that the High Court rightly considered the facts of individual cases and that termination by an enquiry with proven misconduct does not automatically bar consideration for continuity if it serves equity and avoids inadvertent gaps in service. They asserted that the judgment under challenge appropriately balanced the interests of the employee and the employer, and that the High Court’s approach in the batch orders, though not identical, reflected a legitimate policy rationale for consolidating relief in comparable circumstances.

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Extracted Judgment Text

Exact text extracted from official judgment records.

1263 [2018] 14 S.C.R. 1263 THE DEPOT MANAGER & ORS. A v. SRI S. KRISHNA (Civil Appeal No.12244 of 2018) DECEMBER 07, 2018 B ## **[DR. DHANANJAYA Y CHANDRACHUD AND** ## **M. R. SHAH, JJ.]** _Labour Laws:_ _Termination of service – Of contract employee Pursuant to holding departmental enquiry – Departmental appeal as well as review dismissed – Industrial dispute dismissed – Writ petition allowed by Single Judge of High Court relying on its earlier judgment and directed the employer to re-engage the employee and extend benefit of continuity of service from the date of termination till the date of his re-engagement – The order of Single Judge was affirmed by Division Bench of High Court – On appeal, held: High Court mechanically issued directions without having regard to the facts of individual case – The facts of the earlier case on which the High Court had relied was distinct – Grant of continuity of service by the High Court was misconceived._ C D E ## **Allowing the appeal, the Court** **HELD: 1. Single Judge of High Court without having regard to the facts of the individual cases, mechanically issued the directions exclusively relying on the earlier decision. The 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. The earlier decision was passed on the ground of violation of the principles of natural justice as therein termination order was passed without holding an enquiry. [Paras 5 and 6][1266-C-F]** F G **2. 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** H 1263 ## 1264 SUPREME COURT REPORTS [2018] 14 S.C.R. - A **the order of termination is set aside, continuity cannot be granted. Continuity is granted when the order of termination is set aside to ensure there is no hiatus in service. [Para 7][1266-F-H]** **3. The appellant had recruited personnel like the present respondent on contract after a regular process of selection.** B **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 and neither the termination nor the fresh** C **engagement was placed in issue, the grant of continuity of service by the High Court was manifestly misconceived. [Para 8] [1267-A-C]** CIVIL APPELLATE JURISDICTION : Civil Appeal No. 12244 of 2018. D From the Judgment and Order dated 24.07.2013 of the High Court of Judicature of Andhra Pradesh at Hyderabad in Writ Appeal No. 1344 of 2013. - Gourab Banerji, Sr. Adv., Sriharsha Peechara, Arjun Krishnan, - E 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 ## **M. R. SHAH, J.** F 1. Leave granted. 2. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 24.07.2013 passed by the Division Bench of the High Court of judicature of Andhra Pradesh at Hyderabad in Writ Appeal No.1344 of 2013 the original respondents–corporation–employer has G 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 driver and was working with the appellant corporation. H - b. That he was subjected to departmental enquiry. 1265 THE DEPOT MANAGER & ORS. v. SRI S. KRISHNA [M. R. SHAH, J.] - c. That following the report of the Enquiry Officer, his service A 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 rejected on merits. - B - f. Thereafter the original writ petitioner raised the industrial dispute and the same came to be dismissed by the Presiding Officer, Labour Court I, Hyderabad vide judgment and order in Industrial Dispute No.93 of 2010. - g. Thereafter the workman-original writ petitioner approached the High Court invoking jurisdiction of the High Court under Article 226 of the Constitution of India by filing Writ Petition No.5632 of 2012. - h. 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 ground that in the present case a full-fledged enquiry has been held, this distinction did not find acceptance by the learned 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 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. - i. The above order of the learned Single Judge was affirmed by the Division Bench in Writ Appeal. 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 C D E F G H ## 1266 SUPREME COURT REPORTS [2018] 14 S.C.R. - A 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 - B 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 C 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 D 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 E 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 F 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. 7. Even otherwise such a direction cannot be issued by the learned Single Judge without the termination being set aside. The ground of G 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 of termination is set aside to ensure there is no hiatus in service. H 1267 THE DEPOT MANAGER & ORS. v. SRI S. KRISHNA [M. R. SHAH, J.] 8. There is another reason why the judgment of the High Court A cannot be sustained. It is common ground that the appellant has recruited 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 B footing as other contractual employees who have a record without 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 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 accordingly set aside the impugned judgment and order dated 24.07.2013 in Writ Appeal No.1344 of 2013 as well as the judgment and order passed by learned Single Judge in Writ Petition No.5632 of 2012. No costs. C D Kalpana K. Tripathy E Appeal allowed. F G H