Full Text
HIGH COURT OF DELHI
Date of order : 19th July, 2023
34618/2023 ANCHIT MATHUR ..... Petitioner
Through: Mr. Adarsh Kr. Tiwari and Mr. Vineet Pathak, Advocates
Through: Mr. Nitinjya Chaudhary, Sr. Panel Counsel with Ms. Theepa, G. P.
JUDGMENT
1. The instant petition under Article 226 of the Constitution of India has been filed on behalf of the petitioner seeking the following reliefs: “a). Quash and set aside the impugned notice bearing no.
F. NO. P-24029/300/2022-IPR-VII dated 28.06.2023 for being illegal and arbitrary, thereby violating Article 14 of the Constitution of India. and b) pass direction directing the respondent not to take any coercive measure against the petitioner in pursuance of impugned Notice dated 28.06.2023. c. to pass any other appropriate order(s) or direction(s) in favour of the Petitioner which this Hon‟ble Court may deem just and proper in the facts and circumstances of the case, in the interest of justice.”
2. Learned counsel appearing on behalf of the petitioner submitted that he was working on a contractual basis and his services were terminated without giving show cause notice or without providing any liberty to the petitioner to present his case before the competent authority. He submitted that the petitioner was not given due opportunity to present his case which violates the Article 14 of the Constitution of India and the principle of natural justice.
3. It is submitted that vide impugned notice dated 28th June, 2023, the concerned authority did not follow the procedure prescribed under the law and hence, the impugned notice dated 28th June, 2023 is liable to be set aside.
4. Per contra, learned counsel for the respondent vehemently opposed the submissions advanced on behalf of the petitioner and the contents made in the petition.
5. It is submitted that vide impugned notice dated 28th June, 2023, the petitioner was put on the notice period for 15 days and the impugned Notice was merely a notice to the petitioner and not an impugned final order for his termination.
6. It is submitted that in pursuance to the notice dated 28th June, 2023, the petitioner also submitted his reply and therefore, it is wrong to say that the petitioner has not been provided an opportunity to present his case before the concerned authority.
7. It is also submitted that after due consideration of the reply given by the petitioner, the competent authority passed an impugned final order dated 18th July, 2023 and the same is not under challenge in the instant petition.
8. Learned counsel for the respondent also placed the final order dated 18th July, 2023 passed by the competent authority which has been taken on record. He also relied upon paragraph 6 of the final order and submitted that the competent authority passed the final order after considering the reply of the petitioner.
9. Heard learned counsel appearing on behalf of the parties and perused the record.
10. It is an admitted fact that in the impugned notice dated 28th June, 2023, the petitioner was put under the notice period for 15 days from the date of issuance of Notice of Termination. The relevant paragraph from the said notice is reproduced herein:
11. The Point (ix) of the Terms and Conditions of Employment dated 22nd May 2023 specifically enumerated that the employee has to maintain highest standards of integrity, transparency, competitiveness, economy and efficiency while working as a consultant. The relevant portion of terms and conditions is as follows: “ix. He will maintain highest standards of integrity, transparency, competitiveness, economy and efficiency while working as consultant in this Department. If required, he will cooperate fully with any legitimately provided/ constituted investigative body, conducting inquiry into processing or execution of the consultancy contract/ any other matter related with discharge of contractual obligations by the consultant.”
12. It is relevant at this stage to peruse Point (xii) of the Terms and Conditions of Employment which have been taken into consideration by the authority while issuing the Notice of Termination. Point (xii) states that: “xii. His engagement as a consultant may be terminated at any time by the Department, without assigning any reason thereof by giving him 15 days‟ notice. However, in case he wishes to resign, he will be required to give 30 days advance notice or remuneration in lieu thereof before resigning from the engagement.”
13. From the perusal of the Notice of Termination dated 28th June 2023, Point (ix) and Point (xii) of the Terms and Conditions of Employment dated 22nd May 2023, it is clear that though the attributes of integrity, transparency, competitiveness, economy and efficiency were sine qua non of the present contract entered by the petitioner, the authority could still terminate the petitioner’s contract even without providing any reasons. The only stipulation for termination of contract of an employee was the supply of 15 days’ notice which was duly complied by the authority.
14. It is relevant for this Court at this stage to discuss the essentials of a notice and the due procedure required while providing the same. The Odisha High Court in the case of Ismail v. State of Orissa, 1950 SCC OnLine Ori 66, has highlighted two important ingredients of a notice. First, a notice has to lay down the nature of the cause against a person and second, a notice should afford an opportunity to be heard. The Court observed that:
15. The Hon’ble Supreme Court in the case of D.K. Yadav vs J.M.A. Industries Ltd., (1993) 3 SCC 259, enumerated the cardinal principle of reasonable opportunity of being heard. The Court stated that the major advantage of this principle is the prevention of an arbitrary action on behalf of the authority while adjudicating a case. The Court discussed the principles of reasonableness, non-arbitrariness and natural justice under Article 14 of the Constitution of India, 1950 observing that:
16. M.P. Jain & S.N. Jain, Principles of Administrative Law (7th Edition, Page No. 319) has elaborated upon the concept of fair hearing and its link with natural justice. The relevant portion has been reproduced as under: “Fair hearing does not stipulate that proceedings be as formal as in a Court. Natural justice is not a replica of the Court procedure at the level of adjudicatory bodies. The objective is to ensure a fair hearing to the person whose rights are going to be affected. Natural justice is simple or elementary justice as distinct from complex or technical justice, otherwise much of the justification of having adjudicatory bodies outside the Court system will evaporate in thin air. It is realised on all sides that it is not desirable to fully judicialise the hearing procedures followed by the various adjudicatory bodies. To over judicialise is to undermine. In the construction of statutes establishing administrative agencies and defining their powers, there is little scope for deep rooted shibboleth that into the statute must be read, by lawyer's instinct, the requirement of the trial of a civil suit or the hearing of an appeal by the ordinary Courts of the land. This may result in defeating their obvious purpose.”
17. Explaining the doctrine of audi alteram partem, the Hon’ble Supreme Court in the case of CCT v. Shukla & Bros., (2010) 4 SCC 785, has observed that:
18. It is important for this Court to consider the caution rendered by the Hon’ble Supreme Court in the case of Board of Mining Examination and Chief Inspector of Mines v. Ramjee, (1977) 2 SCC 256, where the Court has stated that the principles of natural justice is the key to justice but the Courts cannot have an unnatural expansion of the same and have to utilize the same only in the cases of arbitrariness and unfairness. The Courts should refrain from bending the rules under the garb of natural justice when it is manifest that the procedure has been fair and a reasonable opportunity has been given to a person. The Court observed that:
19. It is contended by the petitioner throughout the proceedings that he had been denied an opportunity of fair hearing and presenting his case before the authority. He further submitted that the termination is bad in law. It is important for this Court to note that a reply was filed by the petitioner on 3rd July 2023 pursuant to the Notice of Termination dated 28th June 2023.
20. It is also relevant for this Court at this stage to peruse some precedents as illustrations where notices were provided by the authorities and reply/ submissions were made by the parties. The Courts in these scenarios have considered such replies/submissions as reasonable opportunities provided to the parties.
21. In the case of Cantonment Board v. Mohanlal, (1996) 2 SCC 23, the Hon’ble Supreme Court observed that a reply was given after the notice. This reply would be in line with the principles of natural justice even though the authority was not inclined to grant relief on the basis of the reply filed by the party. The Court held as under:
22. In the case of State of Orissa v. Krishna Stores, (1997) 3 SCC 246, the Hon’ble Supreme Court considered the fact that an opportunity to file a reply to the notice amounts to a reasonable opportunity of hearing. The Court observed that:
23. Explaining the relevance of fair hearing, the Hon’ble Supreme Court in State Bank of Patiala v. S.K. Sharma, (1996) 3 SCC 364, has observed that:
24. After considering the reply filed by the petitioner in pursuance of the impugned notice dated 28th June, 2023, the concerned authority passed a detailed and reasoned order on 18th July, 2023 which is admittedly not challenged in the instant petition before this Court. The authority has passed a reasoned order after perusing the reply filed by the petitioner. The relevant portion of the order dated 18th July 2023 is reproduced herein: “6) In view of the above, in light of the observations made by this Department in consideration of the Reply of Notice forwarded by Mr. Mathur by re-evaluating the tenure of Mr. Anchit Mathur from 11.05.2023 to 12.07.2023 in this Department and considering the gravity of the aforementioned issues, it is decided by Competent Authority in this Department that the decision to terminate the employment of Mr. Anchit Mathur shall be considered as final.”
25. It is established law that a reasoned order is a safeguard against arbitrariness and unfairness. M.P. Jain (Supra) has elaborately dealt with the relevance of a reasoned order. The main purpose of a reasoned order is to reinforce the principle that justice should not only be done but should also seen to be done. The relevant passages are reproduced below: “As Lord Denning has emphasized in Breen v. A.E.U., (1971) 2 QB 175 the giving of reasons for a decision is one of the fundamentals of good administration. It constitutes a safeguard against arbitrariness on the part of the decision-maker. Articulating the bases of a decision can improve the quality of decision making in a number of significant ways. First, an administrative officer develops a habit of mind to look at things from the standpoint of policy and administrative expediency. This mental attitude does not change from function to function. If he is made to give reasons for his decision, it will impose some restrictions on him in a matter involving personal rights. Secondly, if an adjudicator is obligated to give reasons for his conclusions, it will make it necessary for him to consider the matter carefully. The condition to give reasons introduces clarity, ensures objectivity and impartiality on the part of the decision-maker and minimizes unfairness and arbitrariness for "compulsion of disclosure guarantees consideration". The adjudicator will have to give such reasons for his decisions as may be regarded fair and legitimate by a reasonable man and thus it will minimize chances of irrelevant or extraneous considerations from entering his decisional process, and it will also minimize chances of unconscious infiltration of personal bias or unfairness in his conclusions. The mere fact of explaining to others the bases upon which a decision has been reached conduces to a careful marshalling and weighing of evidence and arguments by the decision-maker. Giving of reasons for his decision is a guarantee that the decision-maker has applied his mind to the facts and circumstances of the case and has not reached his decision mechanically or arbitrarily, or on irrelevant considerations; that he has reached the decision according to law and not according to caprice, whim or fancy, or on grounds of policy or expediency.. In this way, giving of reasons acts as a substantial check upon misuse of power by the decision-maker. The obligation to give reasons operates as a deterrent against arbitrary action of the adjudicatory bodies, and very much improves the quality of decision making, and instils in adjudicatory bodies a greater sense of responsibility. It very much reduces the possibility of unscrupulous officials abusing adjudicatory powers conferred on them. Secondly, the existence on file of earlier reasoned decisions is likely to assist the decision-maker in the future and to encourage the development of clear policies and consistency. Thirdly, the publication of reasons may increase public confidence in the administrative process, particularly, by assuring those adversely affected by a decision that it has not been made arbitrarily and that the relevant points which may support a contrary view have not been ignored but given due consideration. By looking at reasons, parties may know why they lost the case. Giving of reasons ensures that the hearing was not simply a meaningless charade. Unless an adjudicatory body is required to give reasons and make findings of fact, indicating the evidence upon which it relied, there is no way of knowing whether the concerned body genuinely addressed itself to the arguments and evidence advanced at the hearing. It is a well known principle that justice should not only be done but should also seen to be done. Unreasoned decisions may be just but they may not appear to be just to those who read them. Reasoned conclusions, on the other hand, will have the appearance of justice. Fourthly, the Supreme Court has emphasized that the Administration is under a general duty to act fairly and fairness founded on reason is the essence of the right of equality. Fifthly, under many laws, decisions of a lower adjudicatory body are appealable to, or are subject to revision by, a higher adjudicatory authority. An individual who is entitled to have the decision reviewed by a higher administrative tribunal, may be unable to exercise this right effectively unless he knows the bases upon which the original decision rested. In the absence of reasons, the statutory right of appeal may become nugatory. Summary orders by lower authorities reduce (the appeal provisions to silence. Failure to give reasons amounts, in substance, to depriving the affected party of the right of appeal or revision. Sixthly, giving of reasons is an aspect of the right of knowing and a part and parcel of the concept of open government. Giving of reasons thus gives satisfaction to the party against whom the decision is made. Justice should not only be done but should also seen to be done. An unreasoned decision may be just but may not appear to be so to the person affected. A reasoned decision, on the other hand, has the appearance of fairness and justice. Seventhly, the task of a reviewing Court is made easier if the tribunal has stated the reasons for its decision. The reasons may persuade the Court that the decision was justified in the light of the true nature of the problems with which the tribunal was dealing. Alternatively, of course, the Court may infer from the reasons or findings of fact that the tribunal had in some important way misunderstood its statutory mandate, or that the evidential basis for a finding of fact was quite inadequate. Absence of reasons may restrict the Court's capacity to effectively discharge its function of ensuring that the decision was made on legally valid grounds and thus vitiate the right of review. In the absence of a speaking order, i.e. an order which speaks for itself or tells its own story, or, in other words, give reasons, the Courts will be at a loss to understand the working of the mind of the concerned adjudicatory body, and so it will not be possible for the Court to decide whether there is any legitimate ground for the Court to interfere with the decision of the body. The Court's supervisory function can be discharged effectively only when the decision-making authority reveals its own mind and thought processes. In short, the obligation to give reasons for their decisions is bound to improve the quality of adjudication by adjudicatory for it is bound to instil in them a greater sense of responsibility and care in disposing of cases coming before them for adjudication. Not giving of reasoned decisions may be convenient for the authorities but it certainly does not promote good administration. Failure to give reasons does little to instil public confidence in the correctness of the decisions rendered by adjudicatory bodies. The Supreme Court has observed in this regard: "Reasoned decision is not only for the purpose of showing that the citizen is receiving justice, but also a valid discipline for the tribunal itself. Therefore, statement of reasons is one of the essentials of justice.”
26. In Nandlal Tejmal Kothari v. Inspecting Assistant Commissioner of Income-tax, 1997 (3) Scale 592, the Hon’ble Supreme Court observed that the adjudicatory authority is obligated to record the reasons. This recording of reasons serves a two-fold purpose:
27. The Hon’ble Supreme Court in Sarat Kumar Dash v. Biswajit Patnaik, 1995 Supp (1) SCC 434, has explained that the omission to record reasons results in violation of principles of natural justice. The Court further stated that a reasoned order is a link between the author of the order and the order itself. The Court observed that:
28. Hence, after perusing the Notice of Termination, Terms and Conditions of Employment, and the reply filed by the petitioner, this Court is of the view that a reasonable opportunity was provided to the petitioner to present his case. A reply was filed by the petitioner which was duly considered by the concerned authority in passing a reasoned order terminating the petitioner from his services.
29. At this juncture, this Court does not find any cogent reasons for further adjudication in the instant petition as the final order has already been passed by the competent authority which has not been challenged in the instant petition.
30. Accordingly, the instant petition stands dismissed along with pending applications, if any.
31. The order be uploaded on the website forthwith.