Termination without salary in notice-period illegal — SC

Birari’s service was terminated by an order, dated May 11, 1981 with effect from June 11, 1981, but the termination-notice was served on him on June eight, 1981, and he was relieved two days later without payment of one month’s salary.

The trial Court held the termination order to be void as it was passed without complying with the condition that either one month’s notice or one month’s salary would be given. The trial court order was set aside first by the district judge and the district judge’s order was upheld by the High Court. Birari appealed against the High Court order in the Supreme Court.

Upholding the trial court order, a Division-Bench of the Supreme Court comprising Justice S Rajendra Babu and Justice Shivraj V Patil said the trial court was justified in decreeing the suit in favour of Birari as the termination order was made in contravention of the specific condition mentioned in the appointment order.

Going a step further, the Bench ordered Birari’s reinstatement in service after the appellant stated that he would not insist on payment of back wages.

During the arguments, counsel for the terminated employee stated that when the order of termination of services was made in violation of the condition governing the services, it was void and the employee was entitled for reinstatement.

Counsel for the Madhya Pradesh State Commodities Trading Corporation Limited submitted that Birari had remained unauthorisedly absent for which his service was terminated and added that, at best, Birari was entitled to only one month’s salary as he was a temporary employee.

However, Justice Patil, writing the judgement for the Bench, said the order of termination was bad in law as the specific condition for termination of employment was not honoured.

The Apex Court said, “The judgements and decrees of the first appellate court as well as the High Court are set aside and the judgement and decree of the trial court are restored with the modification that Birari shall not be entitled for any back wages.”