Facts
The Appellant, formerly General Manager (Administration) at the National Skill Development Corporation (NSDC), challenged an order dated 10.08.2022 that severed his employment relationship
Source reference: para. 5, 6The Appellant filed a Writ Petition (W.P.(C) 13746/2022) alleging that his "termination" was passed in violation of the principles of natural justice as no hearing was provided
Source reference: para. 7The learned Single Judge dismissed the Writ Petition on 17.01.2026, leading to this intra-Court appeal
Source reference: para. 4While the severance letter used the word "termination," the Respondent contended it was a "separation" under Clause 17 of the Letter of Employment (LoE), not a punitive removal
Source reference: para. 5, 9Issues
1. Whether the severance of the Appellant’s service constituted a "termination-simpliciter" under Clause 17 or a "punitive termination" under Clause 18 of the LoE
Source reference: para. 11(d), (f)2. Whether the principles of natural justice must be followed for a separation of service governed by a contractual "simpliciter" clause in the absence of statutory rules
Source reference: para. 11(g), (h)Law Applied
The Court applied the principles of contract-based employment within public bodies under Article 12 of the Constitution of India
Source reference: para. 8It distinguished between "Termination-Simpliciter," which allows for the lawful end of a contract via notice without casting stigma, and "Stigmatic Termination," which requires a departmental inquiry and adherence to natural justice if based on misconduct
Source reference: para. 11(f), (g)The Court relied on the contractual doctrine that in the absence of statutory rules or service bye-laws, the relationship is strictly governed by the specific terms of the Letter of Employment (LoE)
Source reference: para. 11(h)Reasoning
The Court compared Clause 17 ("Separation") and Clause 18 ("Termination") of the LoE. Clause 17 provides for severance by either party with two months’ notice or pay in lieu thereof, which the Court characterized as a "simpliciter" provision
Source reference: para. 11(b), (d)Conversely, Clause 18 involves termination for specific misconducts like insubordination, dishonesty, or breach of duty, which would necessitate a show-cause notice and defense opportunity to avoid being "stigmatic"
Source reference: para. 11(c), (f)The Court noted that the Respondent expressly invoked Clause 17 in its order, and since the separation was not based on alleged misconduct or material breach, it did not cast any stigma on the Appellant
Source reference: para. 10, 11(g)Consequently, the Court reasoned that the requirement for a hearing was not triggered, as the action was a valid exercise of a contractual "no-fault" separation clause
Source reference: para. 11(g)Holding
The Court held that the Appellant’s removal was a termination-simpliciter under Clause 17 of the LoE and not a punitive measure, thus requiring no prior hearing or inquiry
It further held that in the absence of statutory service rules, the LoE governs the relationship, and judicial interference under Article 226 is impermissible unless the action is proved to be mala fide or arbitrary
Source reference: para. 11(h)The Court upheld the Single Judge's order and dismissed the Appeal
Source reference: para. 12, 13The delay of 19 days in filing the appeal was condoned
Source reference: para. 1Original Court PDF
Sudhanshu JoshivsUnion Of India & Ors.
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