J K GOYAL Vs. JAIPUR METALS AND ELECTRICALS LIMITED

JUDGEMENT

(1.) IN this petition under Article 226 of the Constitution of India, the petitioner is challenging the order terminating his service and the Validity of condition No. 16 contained in the appointment letter dated, October 15, 1984, which is stated by the respondent company (hereinafter to be referred to as the "management") to be the contract of employment. The vital question for consideration in this petition, therefore, is -Whether condition No. 16 of the letter of appointment dated, October 15, 1984, empowering the management to terminate services of an employee without assigning any reason by mere giving one month's notice or pay in lieu of notice, is arbitrary, unreasonable and constitutionally invalid?

(2.) THE necessary facts of the case for decision of the writ petition are in a narrow compass. The petitioner joined service of the respondent M/s. Jaipur Metals and Electricals Ltd. as Clerk in the year 1963, since then, except for a short break of few days, he continued in service till April 1995. After joining service in the year 1963, his resignation was accepted by the Management on October 5, 1984, but he was again taken in service on October 15, 1984 as a Public Relations Officer in the pay scale of Rs. 990- 1970/-which was later on revised to Rs. 1040/-2095/- vide Circular dated, May 28, 1987. Clauses 16 and 17 of the appointment letter dated, October 15, 1984 (Annex. R. 3) which are relevant for decision of this writ petition read as under:

(3.) THE petitioner was then promoted as Dy. Manager, Public Relations in the pay scale of Rs. 1500-2040/-vide order dated, October 1, 1987. As per the petitioner, his promotion as Dy. Manager was for his good performance, zeal and efficiency shown towards his work, the petitioner was further promoted as Manager (Transport and Public Relations) hi the grade of Rs. 1510-110-3060-120-3660-130-4310/ w. e. f. April 1, 1990 vide order dated, March 31, 1990. This promotion was accorded on the basis of selection/recommendations made by three member Selection Committee constituted by the Chairman-cum-Managing Director of the Management.