High Court Quashes Disengagement Orders of J&K Handicrafts Corporation Employees: ‘Principles of Natural Justice Require Opportunity of Representation’

In a significant ruling, the High Court of Jammu & Kashmir and Ladakh at Srinagar has overturned the disengagement orders issued by the Managing Director of the J&K Handicrafts Corporation. The court’s landmark judgment, delivered by Hon’ble Mr. Justice M. A. Chowdhary, emphatically stated that “principles of natural justice require that they should be given a reasonable opportunity of representation,” setting a precedent in matters concerning the rights of contractual employees.

The case, WP(C) No. 2260/2022, which came to a conclusion on December 16, 2023, revolved around the petitioners, who were engaged on various contractual bases in the Corporation. They had challenged the legitimacy of their disengagement, which was executed following an alert note from the Anti Corruption Bureau (ACB).

In his detailed judgment, Justice Chowdhary observed that the disengagement of the petitioners was conducted without providing them an opportunity to be heard. This action was deemed as a violation of the principles of natural justice and potentially infringed upon Article 311 of the Constitution of India.

The Court’s decision to quash the disengagement orders has been hailed as a victory for employee rights, especially for those on contractual terms. The judgment also directs the respondents to reinstate the petitioners, allowing them to perform their duties and entitling them to all service benefits, including wages.

The case drew attention to the larger issue of contractual employment rights in the public sector. Senior Advocate Mr. Z.A. Qureshi, representing the petitioners, argued that the disengagement attached a stigma to the petitioners and was punitive without proper inquiry. Conversely, Mr. Abdul Rashid Malik, Sr.AAG, representing the respondents, contended that contractual employment does not confer a vested right to continue, citing the precedent set by the Apex Court in the case of Secretary, State of Karnataka & Ors. Vs. Umadevi & Ors.

Justice Chowdhary, in his ruling, underscored the necessity for a full-fledged inquiry when allegations cast a stigma on employees. This judgment is expected to influence future cases concerning the termination of contractual employees in various sectors.

Date of Decision: 16.12.2023

Feroz Ahmed Sheikh VS Union Territory of J&K through