Madhya Pradesh High Court Quashes Termination of Permanent Employee for Alleged Disobedience; Holds Departmental Inquiry Mandatory When Termination Stigmatizes Employee

The Madhya Pradesh High Court at Indore has allowed a writ petition and quashed the termination orders dated 15.04.2021 and 24.01.2022 as well as the reinstatement order dated 03.12.2021, which had arbitrarily downgraded the petitioner from a permanent skilled worker to a temporary daily wager. Justice Jai Kumar Pillai observed that the termination was passed without conducting any formal departmental inquiry despite allegations of misconduct, thereby violating the principles of natural justice.

The petitioner, Akhilesh Nimawat, had been working as a daily wager since 01.03.1995. After his initial termination in 2000, he was reinstated by the Labour Court in 2002. Pursuant to a writ petition, he was confirmed as a permanent worker in 2017 and his category was rectified to skilled worker in 2018. In 2021, he was served a show-cause notice alleging failure to follow instructions of the SDM and Incident Commander, Ratlam. The petitioner submitted his reply, but without holding any inquiry, his services were terminated on 15.04.2021. He was later reinstated as a daily wager on 03.12.2021, only to be terminated again on 24.01.2022.

Justice Jai Kumar Pillai held that when termination is founded on allegations of misconduct, indiscipline or disobedience, even a contractual or daily wager employee is entitled to the protection of natural justice. A mere show-cause notice and rejection of the reply as unsatisfactory, without a proper inquiry where the employee can adduce evidence, renders the order unsustainable. The Court relied upon its earlier decision in Malkhan Singh Malviya v. State of M.P. to underscore that allegations forming the foundation of termination amount to a stigma and cannot be sustained without due inquiry.

The Court directed the respondents to reinstate the petitioner as a permanent worker and release his pending wages from December 2020 to 31.10.2021. However, liberty was granted to the respondents to initiate fresh departmental proceedings in accordance with law, if so advised.

Case Title: Akhilesh Nimawat v. State of Madhya Pradesh and Others
Case No.: W.P. No.9914/2022
Date of Judgment: 15.05.2026
Coram: Justice Jai Kumar Pillai

Click HERE for full Judgment.

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