O.P. BHANDARI versus INDIAN TOURISM DEVELOPMENT CORPORATION LTD.& ORS.

O.P. BHANDARI versus INDIAN TOURISM DEVELOPMENT CORPORATION LTD.& ORS.

Rule 31(v) of the Indian Tourism Development Corporation (Conduct, Discipline and Appeal) Rules, 1978 is unconstitutional and void as it allows arbitrary termination violating Articles 14 and 16(1). Instead of reinstatement, compensation should be awarded given the circumstances of strained relations and organizational interest; compensation equivalent to 3.33 years' salary, plus statutory relief, is reasonable.

Parties
Appellant: O.P. Bhandari; Respondents: Indian Tourism Development Corporation Ltd. & Ors.
Jurisdiction
India
Judgment Date
26 September 1986
Procedural Posture
Civil Appeal / Appeal by Special Leave From a Summary Dismissal of Writ Petition by the Delhi High Court
Outcome
Appeal Allowed
Legal Topics
Termination of Service, Public Sector Undertakings, Constitutional Validity of Rules, Compensation in Lieu of Reinstatement
Constitutional Law Labour and Service Law Termination of Service Public Sector Undertakings Constitutional Validity of Rules Compensation in Lieu of Reinstatement

Case Brief

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Parties

O.P. Bhandari

Appellant

Indian Tourism Development Corporation Ltd. & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal by Special Leave From a Summary Dismissal of Writ Petition by the Delhi High Court

Legal Issues

  1. 1 Whether Rule 31(v) of the Indian Tourism Development Corporation (Conduct, Discipline and Appeal) Rules, 1978 which allows termination of services by 90 days' notice or pay is violative of Articles 14 and 16(1) of the Constitution?
  2. 2 If so, is reinstatement the automatic relief or can compensation be granted instead?
  3. 3 What is the appropriate compensation in lieu of reinstatement?

Ratio Decidendi

Rule 31(v) of the Indian Tourism Development Corporation (Conduct, Discipline and Appeal) Rules, 1978 is unconstitutional and void as it allows arbitrary termination violating Articles 14 and 16(1). Instead of reinstatement, compensation should be awarded given the circumstances of strained relations and organizational interest; compensation equivalent to 3.33 years' salary, plus statutory relief, is reasonable.

Court Disposition

Appeal Allowed

Orders

  • Order of the High Court set aside.
  • Rule 31(v) quashed as unconstitutional.