In view of the changing nature of employment in the commercial world, the Supreme Court has stated that courts can interfere even in the case of a contractual job if the decision taken by the management is arbitrary.
A bench of justices Cyriac Joseph and T S Thakur, however, mentioned that the scope of such judicial review is not all-encompassing.
"It is no longer open to the authority passing the order to argue that its action, being in the realm of a contract, is not subject to judicial review. A writ Court is entitled to judicially review the action and determine whether there was any illegality, perversity, unreasonableness, unfairness, or irrationality that would vitiate the action, regardless of whether the action is in the realm of a contract," it said.
The court issued the order on a petition filed by Grid Corporation of Orissa Ltd challenging the Orissa High Court's order asking it to reinstate one of its employees whose contractual job was terminated.
"It is true that judicial review of matters falling in the realm of contracts is available before the superior courts, but the scope of any such review is not all-encompassing. It does not extend to the Court substituting its own view for that taken by the decision-making authority," the bench said.
The bench noted that there has been a "notable shift" in the legal position over the decade, and now the termination of contractual jobs can be challenged in court, which can review the decision taken by the authority.
"A conspectus of the pronouncements of this court and the development of law over the past few decades show that there has been a notable shift from the stated legal position settled in earlier decisions, that the termination of a contractual employment in accordance with the terms of the contract was permissible, and the employee could claim no protection against such termination even when one of the contracting parties happened to be the State," the bench said.
Source:
Termination of contractual job can be challenged in court, says Supreme Court - The Economic Times
Copy of judgment is attached for your information.
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From India, Malappuram
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1446A bench of justices Cyriac Joseph and T S Thakur, however, mentioned that the scope of such judicial review is not all-encompassing.
"It is no longer open to the authority passing the order to argue that its action, being in the realm of a contract, is not subject to judicial review. A writ Court is entitled to judicially review the action and determine whether there was any illegality, perversity, unreasonableness, unfairness, or irrationality that would vitiate the action, regardless of whether the action is in the realm of a contract," it said.
The court issued the order on a petition filed by Grid Corporation of Orissa Ltd challenging the Orissa High Court's order asking it to reinstate one of its employees whose contractual job was terminated.
"It is true that judicial review of matters falling in the realm of contracts is available before the superior courts, but the scope of any such review is not all-encompassing. It does not extend to the Court substituting its own view for that taken by the decision-making authority," the bench said.
The bench noted that there has been a "notable shift" in the legal position over the decade, and now the termination of contractual jobs can be challenged in court, which can review the decision taken by the authority.
"A conspectus of the pronouncements of this court and the development of law over the past few decades show that there has been a notable shift from the stated legal position settled in earlier decisions, that the termination of a contractual employment in accordance with the terms of the contract was permissible, and the employee could claim no protection against such termination even when one of the contracting parties happened to be the State," the bench said.
Source:
Termination of contractual job can be challenged in court, says Supreme Court - The Economic Times
Copy of judgment is attached for your information.
Thanks
From India, Malappuram
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