Case: Indra Pal Gupta Vs. Managing Committee, Model Inter College Thora

The appellant was appointed on probation as the Principal of the Model Inter College, Thora, District Bulandshahr (hereinafter referred to as the College) on August 28, 1967 in accordance with the procedure prescribed by the Intermediate Education ACT, 1921 (U.P. Act No . II of 1921) (hereinafter referred to as the Act) and the Regulations made thereunder. The period of probation prescribed was one year. Shortly before the expiry of the period of probation on August 25, 1968, the Managing Committee of the Collage passed a resolution extending the period of probation of the appellant by one year. Thereafter on April 27, 1969, the Managing Committee met to consider the question of confirmation of the appellant in the post of the principal. As the Managing Committee was not satisfied with the services of the appellant, it resolved to terminate his services and after obtaining the approval of the District Inspector of Schools wrote a letter dated June 30, 1969 to the appellant communicating its decision to terminate the services of the appellant enclosing therewith a copy of its resolution dated April 27, 1969. The letter dated June 30, 1969 readsToThe Manager Shri I.P. GuptaModel Inter College Chilkana House,Thora (Bulandshahr) Kumaran,Bridge, Saharanpur.Ref. No. Dated the 30th June, 1969Sub: Termination of your service as Principal.Dear Sir,With reference to the above, I have to mention that in view of the resolution No. 2 of the Managing Committee dated 27.4.1969 (copy enclosed) and subsequent approval by the D.I.O.S. Bulandshahr you are hereby informed that your service as Principal of this Institution is terminated with immediate effect. You will however be entitled to your dues In lieu of notice. Please hand over complete charge to Sri D.D. Gupta, who is being instructed accordingly, without delay.Please note that you cease to function as Principal of this Institution forthwith. You are neither authorised to operate any account nor will you perform any other act in the capacity of the Principal of this Institution henceforth. Of course the civil suit filed by Shri S.P. Jain of Meerut for the recovery of his dues is your sole responsibility, Please see that the matter is reasonably settled failing which you shall be liable to any loss caused to the institution in that respect. While handing over charge please do not forget to return all papers or documents relating to the college, or any other college property in your possession. All accounts also may kindly be cleared.Since despite several assurances you have failed to return during the complete summer vacation, this intimation is being conveyed to you at your Saharanpur address, in this state of uncertainty under registered cover to ensure safe delivery. Recently you are reported to have been to Bulandshahr for a few days. Please come immediately and do the needful in the matter.Sri D.D. Gupta is to assume office of the Principal of this institution with immediate effect in officiating capacity till further instruction. He may take-over charge from Sri I.P. Gupta when he returns. Yours faithfully,sd/-ManagerModel Inter College,Tohracopy of the resolution of the Managing Committee sent alongwith the above letter readspassed by the Man aging Committee in its meeting held on 27.4.69 terminating the probationary period of the Petitioner.e report of the Manager was read. Sri I.P. Gupta, who was present in the meeting also heard it. He was asked b y the Committee to have his say in respect of the report. At first he refused to say anything but when the Committee requested him to consider it seriously. and let the Committee have the benefit of his views, he said that he had nothing to say in that respect since he wanted to quit himself due to circumstances. on this the Committee again requested him to put some such suggestion in consultation with the manager as may be helpful for the Committee to arrive at some conclusion. In the absence of any satisfactory suggestion the Committee took the decision. At this stage the Principal retired out o f courtesy.On the basis of the Service Book of the Principal, the manager told that last year his confirmation was due on 28.8. 1968 but in the meeting of the Committee held on 25.8 68 in which the Principal was also present, the report of the Manager, dated 4.7.68 was put as desired by the President. Resolution 3 dated 25.8.68 under the head "Consideration on confirmation of Shri I.P. Gupta, Principal" incorporates the decision of the Committee as "According to the Managers report the period of probation of the Principal extended by one year. " The proceedings book contains signatures of Sri I.P. Gupta for receiving a copy of the said resolution At the end of the proceedings the minute book contains signatures of Sri I.P. Gupta alongwith other members of the Committee present.The facts contained in the report of the Manager being serious and not in the interests of the institution, this Committee unanimously resolves that the period of probation of Sri I.P. Gupta, Principal, be terminated without waiting for the period to end and the manager is empowered to take necessary steps in this respect. Any thing done by him in this respect shall be considered to have been done by this Committee. The manager is also authorised to hand over charge to Sri D.D. Gupta when necessary.Sri I.P. Gupta also came in With a Vote of thanks to the Chair the meetingEnglish translation of the relevant part of the report of the Manager on the basis of which the above resolution was passed which is incorporated in the counter affidavit filed on behalf of the Managing committee readswill be evident from the above that the Principals stay will not be in the interest of the institution. It is also evident that the seriousness of the lapses is enough to justify dismissal but no educational institution should take all this botheration. As such my suggestion is that our purpose will be served by termination of his services. Why, then, we should enter into any botheration. For this, i.e. for termination of his period of probation, too, the approval of the D.I.O.S. will be necessary. Accordingly any delay in this matter may also be harmful to our interests.Accordingly I suggest that instead of taking any serious action, the period of probations of Sri lnder Pal Gupta be terminated without waiting for the period toby the order of termination of his services referred to above, the appellant filed a petition under article 226 of the Constitution in Writ Petition No. 4823 of 1970 on the file of the High Court of Allahabad challenging its correctness and praying for appropriate reliefs. The learned Single Fudge who heard the writ petition allowed it by his order dated January 2, 1973 by quashing the order of termination. The Managing Committee of the College preferred an appeal against that decision to the Division Bench of High Court in Special Appeal No. 31 of 1973. The Division Bench allowed the appeal and dismissed the Writ Petition filed by the appellant by its order dated March 14, 1973. This appeal is filed by the appellant against the Judgment of the Division Bench after obtaining the special leave of this Court under Article 136 of the Constitution.

Court's reasoning:
The above report was the real foundation on which the decision of the Managing Committee was based. This is a case where the order of termination issued is merely a camouflage for an order imposing the penalty of termination of service on the ground of misconduct. Secondly, the Division Bench has tried to justify the action of the Management by observing that since the management had to secure the approval of the District Inspector to its action, it was necessary for it to give its assessment of the work of the appellant as Principal and, therefore. in the. context of the statutory requirements, it cannot be said that merely because the Managers report or the resolution of the Managing Committee refers to the various aspects of the assessment of the performance of the Principal in terms unfavourable to him, it would in law, amount to casting a stigma upon the Principal. It is difficult to engraft an exception of the above type to the well-settled rule that if the order of termination carries a stigma, it has to fall to the ground unless it is proceeded by an enquiry as contemplated by law. A reading of the letter of termination o f the service and the resolution which forms part of that letter clearly shows that they bear a mark of disgrace or infamy and that the appellant is visited with evil consequences as explained in Parshotam Lal Dhingras case (supra). The Division Bench, therefore, erred in holding that on the facts and in the circumstances of the case, the order of termination was an innocuous one and did not carry any stigma. The order of the Division Bench is, our opinion, an unsustainable one and is liable to the set aside.In the result, we allow this appeal, set aside the judgment of the Division Bench of the High Court and restore the judgment of the learned Single Judge.