Employment Termination and Service Continuity: Supreme Court’s Decision in APSRTC vs. G. Kondal Rao

The case of APSRTC & ORS. vs. G. Kondal Rao revolves around employment termination, service continuity, and contractual employment rights. This case was heard in the Supreme Court of India under Civil Appellate Jurisdiction, with the appeal arising from Special Leave Petition (Civil) No. 7810 of 2014. The appeal was filed by the Andhra Pradesh State Road Transport Corporation (APSRTC) against the respondent, G. Kondal Rao, challenging the High Court’s decision granting service continuity to the respondent.

The dispute originated when G. Kondal Rao, a contract conductor with APSRTC, was terminated following a departmental inquiry. His departmental appeal and review petition were also rejected. However, instead of approaching the appropriate labor courts, the respondent directly filed a writ petition in the High Court under Article 226 of the Constitution of India, seeking reinstatement and continuity of service benefits.

Background of the Case

The respondent, G. Kondal Rao, was appointed as a contract conductor and later subjected to a departmental inquiry, which found him guilty of misconduct. Following the inquiry:

• His services were terminated.
• His departmental appeal was rejected.
• His review petition before the Regional Manager was also dismissed.
• He then filed a writ petition in the High Court under Article 226.

Judgment by the High Court

The learned Single Judge of the High Court ruled in favor of the respondent, stating that the case was not res integra and was covered by a prior decision in W.P. No. 2786 of 2012. The Court directed APSRTC to re-engage the respondent and extend the benefit of continuity of service from the date of termination to re-engagement, except for the period he was absent. However, this was without monetary benefits and was meant solely for the purpose of regularization.

Appeal to the Supreme Court

APSRTC, dissatisfied with the High Court’s decision, filed an appeal before the Supreme Court, arguing that:

• The High Court erred in granting continuity of service without setting aside the termination order.
• The case was wrongly linked to an earlier judgment without considering the specific facts.
• The respondent was found guilty of misconduct through a proper departmental inquiry, and his termination was legally justified.
• Allowing continuity of service for an employee terminated for misconduct would create an unfair precedent.

Supreme Court’s Observations and Verdict

The Supreme Court, comprising Dr. Dhananjaya Y. Chandrachud and M.R. Shah, examined the case and found substantial merit in APSRTC’s arguments. The Court observed:

“Such a direction cannot be issued by the learned Single Judge without the termination being set aside. The ground of 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.”

The Supreme Court further noted that granting continuity of service to an employee terminated due to misconduct would equate him with employees who had no disciplinary issues. This would be unfair to those with clean service records.

The Court ruled that:

• The earlier High Court ruling failed to consider the individual facts of the case.
• The grant of service continuity was not legally sustainable as the termination order was never challenged or overturned.
• The judgment of the High Court was thus set aside, and the appeal was allowed.

Conclusion

This Supreme Court ruling reaffirms the principle that service continuity cannot be granted without setting aside a termination order. The decision highlights the necessity of proper legal recourse and ensures that employees terminated for misconduct do not gain an unfair advantage over those with clean service records.

Final Verdict: The appeal was allowed, and the High Court’s judgment was quashed.

Petitioner Name: APSRTC & ORS..
Respondent Name: G. Kondal Rao.
Judgment By: Justice Dhananjaya Y. Chandrachud, Justice M.R. Shah.
Place Of Incident: Andhra Pradesh.
Judgment Date: 07-12-2018.

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