The Hindu Business Line : HC says termination for `unsatisfactory' service could not be termed `punitive'

The order of termination, in order to amount to stigma, must be in a language which imputed something over and above mere unsuitability for the job.

Chennai , Dec. 8

The Madras High Court has held that termination of an employee could be said to be punitive only when such termination preceded a full-scale enquiry into allegations against him. In a case pertaining to termination of service of an officer of Securities and Exchange Board of India, the First Bench concluded that when termination was ordered due his unsatisfactory services, it was not punitive.

Dismissing a writ appeal by officer challenging a single judge's order upholding the decision of SEBI in terminating his services, the Bench, consisting of Chief Justice Mr A.P. Shah and Mr. Justice K. Chandru, said that the order of termination, in order to amount to stigma, must be in a language which imputed something over and above mere unsuitability for the job. In the present case, respondent had merely stated in discharge order, issued under service regulations that services of appellant were not found to be satisfactory.

The case

The appellant, S. Vidyashankar, was temporarily appointed as officer on April 4, 1989. While on probation, he availed himself of long periods of leave. His application for two months' leave from 3-12-1990 was not sanctioned. Nevertheless, he proceeded and sought for extension of leave for further period of two months. By order dated 22-3-1991, he was discharged from service on ground that his services were not found to be satisfactory.

The appellant contended that the order was punitive and cast a stigma on him and could not be sustained without a full-scale departmental enquiry. SEBI submitted there was absolutely no basis for contending that termination was by way of punishment imposed by respondent.

The appointment of the person, according to the single judge, was subject to SEBI Service Regulations, which, inter alia, stipulated that an employee could be discharged at one day's notice during first month of probation and thereafter at one month's notice.

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