Prashant Kumar Vidyarthi vs Technology Development Board & Ors on 16 April, 2026

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    Delhi High Court – Orders

    Prashant Kumar Vidyarthi vs Technology Development Board & Ors on 16 April, 2026

    Author: Sanjeev Narula

    Bench: Sanjeev Narula

                              $~4 to 6
                              *         IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +         W.P.(C) 13651/2018, CM APPL. 53209/2018 & CM APPL.
                                        17233/2023
    
                                        PRASHANT KUMAR VIDYARTHI                                                               .....Petitioner
                                                                      Through:            Mr. Shanker Raju, Mr. Nilansh Gaur,
                                                                                          Advocates.
                                                                      versus
    
                                        TECHNOLOGY DEVELOPMENT BOARD & ORS
                                                                                                              .....Respondents
                                                                      Through:            Mr.    Neeraj   Malhotra,     Senior
                                                                                          Advocate with Mr. Sarul Jain, Ms.
                                                                                          Swati, Mr. Nimish Kumar, Advocates
                                                                                          for R-1.
                                                                                          Mr. Bhagwan Swarup Shukla, CGSC
                                                                                          with Mr. Dashmesh Tripathi,
                                                                                          Advocate for UOI.
                              +         W.P.(C) 13696/2018
    
                                        JAGMOHAN SINGH                                                                         .....Petitioner
                                                                      Through:            Mr. Shanker Raju, Mr. Nilansh Gaur,
                                                                                          Advocates.
                                                                      versus
    
                                        TECHNOLOGY DEVELOPMENT BOARD & ORS
                                                                                                              .....Respondents
                                                                      Through:            Mr.    Neeraj   Malhotra,     Senior
                                                                                          Advocate with Mr. Sarul Jain, Ms.
                                                                                          Swati, Mr. Nimish Kumar, Advocates
                                                                                          for R-1.
                                                                                          Mr. Bhagwan Swarup Shukla, CGSC
                                                                                          with Mr. Dashmesh Tripathi,
                                                                                          Advocate for UOI.
                              +         W.P.(C) 13702/2018
    
    
    
                                    W.P.(C) 13651/2018 & other connected matters                                               Page 1 of 22
    This is a digitally signed order.
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                                         SANDEEP KUMAR                                                                          .....Petitioner
                                                                      Through:            Mr. Shanker Raju, Mr. Nilansh Gaur,
                                                                                          Advocates.
                                                                      versus
    
                                        TECHNOLOGY DEVELOPMENT BOARD & ORS
                                                                                                              .....Respondents
                                                                      Through:            Mr.    Neeraj   Malhotra,     Senior
                                                                                          Advocate with Mr. Sarul Jain, Ms.
                                                                                          Swati, Mr. Nimish Kumar, Advocates
                                                                                          for R-1.
                                                                                          Mr. Bhagwan Swarup Shukla, CGSC
                                                                                          with Mr. Dashmesh Tripathi,
                                                                                          Advocate for UOI.
    
                                        CORAM:
                                        HON'BLE MR. JUSTICE SANJEEV NARULA
                                                                      ORDER
    

    % 16.04.2026

    1. These petitions are being disposed of by a common order because
    they arise out of the same factual setting, are founded on substantially the
    same record, and raise common questions of law. The Petitioners formed
    part of the same body of contractual staff engaged by Respondent No. 1, i.e.,
    the Technology Development Board [“TDB”]. Each of them was subjected
    to the same course of administrative action during the period in question. All
    three were covered by the suspension order dated 22nd April, 2018, issued in
    the wake of a complaint made against the then Secretary of Respondent
    No.1. Each was thereafter drawn into the same show-cause process, which
    culminated in termination letters dated 5th September, 2018 issued in
    materially identical terms. In that backdrop, it is both convenient and

    SPONSORED

    W.P.(C) 13651/2018 & other connected matters Page 2 of 22
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    appropriate to examine the challenge in one frame. There are, of course,
    particulars specific to each Petitioner; those will be noticed where they bear
    on the controversy. For the rest, the issues are common and can properly be
    addressed together.

    2. At the outset, Mr. Shanker Raju, counsel for the Petitioners, states that
    the Petitioners are not pressing any claim for regularisation in these writ
    petitions. The Court is, therefore, not required to examine any issue of
    absorption into regular service. The controversy is narrower and can be
    stated with some precision. It concerns the legality of the suspension, the
    true character of the subsequent termination, and the relief that should
    follow if the impugned action is found to be unsustainable.
    Factual Background

    3. Each of the Petitioners had been associated with TDB for a
    considerable period, though their dates of initial engagement are not
    identical and relate back to 2006-2007. For present purposes, it is material
    that, by 2013, they were among the contractual personnel whose
    engagement came to be placed directly with TDB, and whose contracts were
    thereafter renewed from time to time. The material on record indicates
    continuity over the years through repeated extensions on substantially the
    same terms.

    4. The contract renewal orders placed the Petitioners among a defined
    set of contractual staff whose continuance was linked to “satisfactory
    performance”. The service record relied upon in the petitions includes
    annual performance assessment material recording “Very Good” and
    “Outstanding” gradings. The work profile reflected on the record includes
    preparation of agendas and minutes, annual report work, replies to audit

    W.P.(C) 13651/2018 & other connected matters Page 3 of 22
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    paras and RTI applications, project and file management, record
    management, and in-house coordination and support work connected to
    Board functioning.

    5. The trigger for the present litigation was a complaint dated 22 nd
    January, 2018 containing allegations against Dr. Bindu Dey, then Secretary,
    TDB. The sequence that followed is reflected in the record. On 2nd February,
    2018, the Central Vigilance Commission [“CVC”] issued a communication
    in relation to the complaint, followed by a further communication dated 12 th
    April, 2018 on the same issue. On 16th April, 2018, Prashant Kumar
    Vidyarthi [the Petitioner in W.P.(C) 13651/2018] addressed a written
    response stating that the complaint had not been made by him, pointing out
    discrepancies in the name and office address appearing in the vigilance
    communication, and requesting a copy of the complaint.

    6. Thereafter, TDB issued an office order dated 22nd April, 2018 placing
    15 contractual employees under suspension with immediate effect. The
    order records that TDB had received a copy of a letter written by four
    contractual employees levelling corruption allegations against the Secretary,
    and states that a vigilance enquiry was proposed through the DST Vigilance
    Cell and the CVC. The present Petitioners were among the 15 employees
    covered by that order.

    7. The record also reflects that, on 1st May, 2018, the Chairman, TDB
    noted that the order of suspension did not, prima facie, appear to rest on
    adequate justification and called for an explanation along with the relevant
    rule position. The response note appended to the order records that the
    annual contractual arrangements did not provide for “suspension” as such,
    but contemplated “termination” in cases involving conduct harmful to TDB.

    W.P.(C) 13651/2018 & other connected matters Page 4 of 22

    This is a digitally signed order.

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    It further records that an enquiry committee had been constituted and that
    suspension had been adopted pending investigation. A subsequent office
    order dated 5th May, 2018 continued the suspension on the footing that an
    enquiry was in progress and that such continuance was considered necessary
    to avoid possible interference with records.

    8. The DST Vigilance Cell note dated 28th August, 2018 records that the
    Internal Enquiry Report did not disclose any conclusive material regarding
    the authenticity of the complaint dated 22nd January, 2018; that no individual
    had owned the complaint; and that its source could not be identified. On that
    basis, the note records that the complaint was liable to be treated as
    pseudonymous and that no further action was warranted on it. The note
    further records that, in that view, the continuation of suspension would not
    be justified. The material on record indicates that the complaint was
    thereafter treated as closed at the departmental level.

    9. The note sheet for the period between 26th June, 2018 and 30th July,
    2018 reflects the processing and issuance of Show-Cause Notices [“SCNs”]
    to the present Petitioners. On 26th June, 2018, a draft SCN on the issue of
    “insubordination” in relation to Prashant Kumar Vidyarthi was placed for
    legal vetting, and, upon approval, an SCN was issued to him on 9 th July,
    2018. The material on record further indicates that SCNs were also issued to
    Jagmohan Singh and Sandeep Kumar. The note sheets for 24 th and 25th July,
    2018 record consideration of allegations relating to disclosure and use of
    internal notesheets, Board minutes, and other organisational material in the
    earlier writ petitions filed by the Petitioners. The record also reflects that, on
    30th July, 2018, the legal division considered issuance of a further
    consolidated SCN to Prashant Kumar Vidyarthi, taking into account both the

    W.P.(C) 13651/2018 & other connected matters Page 5 of 22
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    earlier notice and the material emerging from the earlier writ proceedings.

    10. The record also includes draft material prepared in connection with
    the proposed termination. The internal noting dated 4 th September, 2018,
    records that the replies submitted by Prashant Kumar Vidyarthi, Sandeep
    Kumar and Jagmohan Singh were considered unsatisfactory; that documents
    placed on record in the earlier writ proceedings were understood as
    reflecting retrieval and use of internal organisational material; and that such
    conduct was viewed, at the departmental level, as a misuse of access
    available to them in the course of their contractual engagement.

    11. The termination letters dated 5th September, 2018, however, are
    couched in neutral terms, stating that the Petitioners were “found unsuitable”

    and that their services were “no longer required”, along with payment of
    one month’s remuneration in lieu of notice.

    Petitioners’ Contentions

    12. In support of the petitions, Mr. Shanker Raju, counsel for the
    Petitioners, makes the following submissions:

    12.1. The initiation of action itself was without lawful foundation. The
    complaint dated 22nd January, 2018, on the basis of which the process was
    set in motion, was not made by the Petitioners, and this position had been
    communicated to the vigilance authorities even prior to the suspension
    order. The contractual terms did not contemplate suspension, and the power
    to suspend contractual employees was, in any event, doubtful. The vigilance
    record itself later treated the complaint as pseudonymous, recorded that no
    one had owned it, and concluded that no further action was warranted and
    that the suspension could not be sustained. The material obtained under the
    Right to Information Act further indicates that no formal vigilance

    W.P.(C) 13651/2018 & other connected matters Page 6 of 22
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    communication proposing an enquiry had been received by TDB, rendering
    the entire process without basis.

    12.2. The record reflects a progression of shifting grounds: from an initial
    complaint alleging corruption, to suspension pending enquiry, to allegations
    relating to retrieval of documents, disclosure of internal material,
    insubordination and breach of trust, and ultimately to termination framed in
    the neutral language of “unsuitability”. This shifting course indicates that the
    impugned action was not a bona fide contractual discontinuance but a
    disguised punitive measure.

    12.3. Reliance is placed on the service record, including annual
    performance assessments reflecting favourable gradings such as “Very
    Good” and “Outstanding”. No contemporaneous material has been produced
    to indicate unsatisfactory performance. The description of the Petitioners as
    “unsuitable” is, therefore, not borne out from the record and is said to be a
    neutral formulation adopted to conceal the real basis of the action.
    12.4. The impugned action is arbitrary and violative of Article 14. Several
    similarly placed employees covered by the suspension order dated 22 nd
    April, 2018 were subsequently reinstated and continued in service, including
    by orders dated 8th June and 20th June, 2018, subject to execution of non-
    disclosure bonds. The present Petitioners alone were singled out for further
    adverse action without any rational basis, and such differential treatment
    lacks any intelligible differentia.

    12.5. The subsequent shift to outsourcing arrangements does not justify the
    impugned action. It is submitted that even under the outsourcing model,
    similarly placed personnel have continued to perform functions connected
    with TDB, and that effective control over their engagement remains with

    W.P.(C) 13651/2018 & other connected matters Page 7 of 22
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    TDB. The Petitioners have been denied the benefit of such continued
    engagement without any rational basis.

    12.6. The core submission is that the termination cannot be viewed in
    isolation from the preceding events. The complaint, suspension, enquiry
    process, show-cause notices and internal record form a continuous sequence.
    Where the action is, in substance, founded on allegations of misconduct,
    including insubordination, improper retrieval of documents, and misuse of
    official material, the employer cannot dispense with procedural safeguards
    by merely employing neutral language in the final order.
    12.7. In support of above submissions, reliance is placed on U.P. State
    Road Transport Corporation v. Brijesh Kumar1
    , to contend that even in the
    case of contractual engagements, where the termination is founded in
    substance on allegations of misconduct, such action cannot be sustained
    without compliance with the principles of natural justice, including
    affording a fair opportunity of hearing.
    Reliance is also placed on Swati
    Priyadarshini v. State of Madhya Pradesh2
    to submit that the form of the
    order is not conclusive, and that where the surrounding record discloses that
    the action is, in effect, punitive in nature, the Court is entitled to go behind
    the form of the order and examine its true character, including in cases
    where an ostensibly innocuous order is used as a cloak for punitive action.
    Respondents’ Contentions

    13. On the other hand, Mr. Neeraj Malhotra, senior counsel appearing for
    TDB, opposes the present petitions and makes the following submissions:

    13.1. The Petitioners were engaged purely on contractual terms, and the

    1
    2024 SCC OnLine SC 2282.

    2

    (2024) 19 SCC 128.

    W.P.(C) 13651/2018 & other connected matters Page 8 of 22

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    relationship between the parties was governed by the terms of engagement.
    The termination constitutes an exercise of the contractual right to
    discontinue the engagement upon notice or payment of salary in lieu thereof,
    which has been duly effected. The termination orders dated 5 th September,
    2018 are, on their face, non-stigmatic and do not cast any aspersion on the
    Petitioners. They are required to be read as simpliciter discharge in terms of
    the contract, and not as punitive or founded on any allegation of misconduct.
    Mere continuity over a period of time does not confer any vested right to
    continue in service beyond the terms of the contract.

    13.2. The background of suspension cannot be conflated with the
    subsequent termination. Suspension was only an interim administrative
    measure taken at a particular stage and did not necessarily culminate in
    disciplinary action in every case. Where no further action was warranted,
    employees were permitted to rejoin. In the case of the present Petitioners,
    however, their services were not continued as TDB no longer required them.
    The termination represents an independent exercise of contractual power and
    is not dependent on the outcome of the earlier suspension.
    13.3. As a matter of policy, TDB has since discontinued engagement of
    contractual personnel of the nature earlier retained, and its temporary
    manpower requirements are now met through outsourcing arrangements. In
    that backdrop, no direction for reinstatement can be issued, particularly
    when the Petitioners were not appointed against regular posts.
    13.4. Without prejudice to the above, the Petitioners could, at the highest,
    claim compensation only up to the balance of their contractual tenure, which
    was to run till December 2018. No right to reinstatement or continuation
    survives beyond the contractual period.

    W.P.(C) 13651/2018 & other connected matters Page 9 of 22

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    13.5. In support of these submissions, reliance is placed on Satish Joshi v.
    Union of India3
    , Pavanendra Narayan Verma v. Sanjay Gandhi PGI of
    Medical Sciences4
    and A.N. Gupta v. Public Enterprises Selection Board5
    to contend that a contractual engagement can be brought to an end in terms
    of the contract, and that an order referring to unsuitability does not, by itself,
    become punitive.
    Reliance is placed, in particular, on S.S. Shetty v. Bharat
    Nidhi Ltd.6
    to submit that where a contract of service is terminable by
    notice, damages, in the ordinary course, are confined to the notice period,
    i.e., the stipulated notice pay, and even on a broader view, any monetary
    relief would extend at best to the balance of the contractual term.
    13.6. During the course of proceedings, without prejudice to TDB’s rights
    and contentions and without acknowledging any enforceable right in the
    Petitioners, and in order to bring quietus to the dispute, TDB offers to pay
    salary to the Petitioners up to March 2019, i.e., beyond the contractual
    period. It is emphasised that this offer travels beyond TDB’s strict
    contractual liability and is made ex gratia, and cannot be treated as
    recognition of any legal entitlement.

    Questions for Determination

    14. In the backdrop of the record and the rival submissions, the following
    questions arise for determination:

    (i) Whether the suspension order dated 22nd April, 2018, and its
    continuation through the office order dated 5th May, 2018, had any lawful
    basis insofar as the present petitioners are concerned.

    3

    2017 SCC OnLine Del 7409.

    4

    (2002) 1 SCC 520.

    5

    2003 SCC OnLine Del 1235.

    6

    1957 SCC OnLine SC 29.

    W.P.(C) 13651/2018 & other connected matters Page 10 of 22

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    (ii) Whether the termination letters dated 5th September, 2018 are to be
    treated as instances of simple contractual discharge on the ground of
    unsuitability, or whether, on a proper reading of the record, they are in
    substance founded on allegations of misconduct, breach of trust, or other
    imputations carrying a punitive character.

    (iii) Whether TDB can validly sustain the impugned action by resting
    solely on the contractual notice clause, notwithstanding the surrounding
    facts and the internal record.

    (iv) If the impugned action is found to be unsustainable, what relief ought
    to follow in the facts of the present cases, particularly when regularisation is
    not pressed and TDB’s case is that the earlier model of direct contractual
    engagement was subsequently discontinued.

    Discussion and Reasons

    15. The Court proposes to take up the issues in the sequence in which
    they arise on the record. The first question is whether the suspension itself
    had any lawful basis. On that aspect, the record speaks with clarity. The
    order dated 22nd April, 2018 does not rest on any identified breach of
    contract or recorded dissatisfaction with the Petitioners’ work or conduct. It
    proceeds only on the footing that TDB had received a copy of a letter said to
    have been written by four contractual employees levelling corruption
    allegations against the then Secretary, and that a vigilance enquiry was
    proposed through the DST Vigilance Cell and the CVC. On that basis alone,
    15 contractual employees, including the Petitioners, were placed under
    suspension with immediate effect.

    16. That order did not command confidence even within the institution.
    On 1st May, 2018, the Chairman (TDB) recorded that, prima facie, the

    W.P.(C) 13651/2018 & other connected matters Page 11 of 22
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    suspension order did not appear to be supported by sufficient justification
    and called for a full explanation together with the applicable rule position.
    The response put up on behalf of the administration acknowledged that the
    annual contractual agreements did not contemplate “suspension” as such,
    but rather “termination” in cases involving activities harmful to TDB, and
    that suspension had nevertheless been adopted as a measure of caution
    pending enquiry. This is not merely a matter of drafting or expression. It
    goes to the existence of power itself. When the employer’s own record
    shows that the governing contractual framework did not provide for
    suspension, the action cannot be defended as a mere procedural
    imperfection.

    17. The legal difficulty became still sharper by the end of August 2018.
    The DST Vigilance note dated 28th August, 2018 records in plain terms that
    no one had owned the complaint dated 22nd January, 2018; its source had not
    been identified by the Internal Enquiry Committee; and the complaint could
    therefore be treated as pseudonymous, with no further action warranted on
    it. The note then proceeds a step further and states that, once the complaint
    is so treated, the suspension of the contractual employees is no longer valid.
    That note was approved, and the complaint stood closed at the departmental
    level. In the face of such material, the suspension cannot be said to retain
    any lawful footing.

    18. There is yet another circumstance which cannot be overlooked.
    Before the suspension order came to be issued, Prashant Kumar Vidyarthi
    had already, by his letter dated 16th April, 2018, denied having made the
    complaint, pointed out discrepancies in the name and office address
    reflected in the vigilance communication, and sought a copy of the

    W.P.(C) 13651/2018 & other connected matters Page 12 of 22
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    complaint itself. That denial preceded the suspension order by 6 days. Seen
    in conjunction with the later vigilance note treating the complaint as
    pseudonymous and closing the matter, this prior denial materially weakens
    the basis on which the suspension was set in motion in the first place.

    19. In these circumstances, the Court finds little room for doubt that the
    suspension order dated 22nd April, 2018, and its continuation through the
    office order dated 5th May, 2018, cannot be sustained in law insofar as the
    Petitioners are concerned. The action was taken against contractual
    employees without any clear contractual source of power, on the strength of
    a complaint whose authorship had already been questioned before the order
    was passed, and which was later treated by DST itself as pseudonymous and
    closed. Once that is the position on the record, the suspension loses its legal
    foundation. Issue (i) is, thus, answered accordingly.

    20. The real controversy, however, lies in Issue (ii). TDB would have the
    Court treat the later termination as entirely severable from the suspension
    and read it on its own terms as a simple contractual discharge. The Court is
    unable to accept that approach on the record as it stands. The record does not
    permit the termination letters to be lifted out of their setting and viewed in
    isolation. What preceded them is not collateral background. It is part of the
    same chain of events and bears directly on the true character of the final
    action taken against the Petitioners.

    21. The termination letters dated 5th September, 2018 are, on their face,
    tersely worded. They state only that the Petitioners were “found unsuitable”

    and that their services were “no longer required” at TDB, while providing
    one month’s remuneration in lieu of notice. Had those letters stood alone,
    and had the record disclosed a genuine and contemporaneous assessment of

    W.P.(C) 13651/2018 & other connected matters Page 13 of 22
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    unsuitability founded on service appraisal, TDB might have been in a
    stronger position to invoke the line of authority, including Pavanendra
    Narayan Verma and Satish Joshi, which recognises the employer’s right, in
    an appropriate case, to discontinue a contractual or probationary appointee
    on grounds of unsuitability in terms of the contract. But that is not the record
    before the Court. Here, the neutral language of the final order has to be
    tested against the entire course of events that led to it.

    22. The record, in fact, discloses that the termination letters were
    preceded by a documented progression of accusations. On 26 th June, 2018, a
    draft SCN on “insubordination” was initiated against Prashant Kumar
    Vidyarthi. By 24th and 25th July, 2018, the focus had shifted to a wider set of
    concerns arising from the filing of earlier writ proceedings, including the
    presence of internal note sheets, annexing of Board minutes, and use of
    official communications, which were treated as indicative of improper
    access to and misuse of confidential organisational material. The legal
    consultant thereafter advised that action be considered against the
    Petitioners, and approval followed for issuance of SCNs to all three on what
    was described as an “information leak”. On 30th July, 2018, the file further
    records that, since an earlier SCN had already been issued to Prashant
    Kumar Vidyarthi, a comprehensive notice be put up covering both the
    earlier issue and the material emerging from the earlier writ proceedings.

    23. Read in that light, the record indicates that the administration had
    moved beyond an ordinary contractual review of suitability. It was
    proceeding on the footing that the Petitioners were alleged to have acted
    improperly, had misused their position as contractual staff, had accessed or
    retrieved internal material in an impermissible manner, and had thereby

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    breached, or were alleged to have breached, obligations of confidentiality
    and trust. The same theme is also reflected from the note dated 8 th June,
    2018 of the then Secretary, which records concerns regarding widespread
    sharing of information, reluctance to assist newly inducted officers, “anti-
    organisational activities”, photocopying of official documents, sharing of
    file movements, and a lack of loyalty to the institution.

    24. Once the record is read coherently, the expression “found unsuitable”

    in the termination letters cannot be accepted as self-explanatory. It
    represents the concluding expression rather than the full account reflected in
    the record. The record itself shows that the Petitioners were first suspended
    in the aftermath of the complaint episode, then drawn into an enquiry
    process, thereafter placed on a track that was distinctly conduct-based,
    involving allegations of “insubordination”, information leakage, misuse of
    access, and breach of trust, and only at the end removed through neutral
    language. The form of the final order cannot be permitted to efface the
    substance of what preceded it.

    25. The service record also bears on that conclusion. The record does not
    disclose any contemporaneous material showing poor work, declining
    performance, or any appraisal-based conclusion that would naturally support
    a finding of unsuitability. What it instead reflects are performance
    assessments indicating satisfactory to good levels of work, with gradings
    ranging from “Very Good” in some cases to “Good” in others, along with
    remarks indicating willingness to take on responsibility and scope for further
    duties. The material also includes a recommendation for an appreciation
    letter in favour of Prashant Kumar Vidyarthi, as well as an email dated 1 st
    April, 2018 from the then Secretary acknowledging the contribution of the

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    office staff and describing them as a cohesive and effective unit. These
    materials are not being treated as creating any absolute right to continue in
    engagement. They do, however, make it difficult to accept that the ground of
    unsuitability for termination was a genuine performance-based assessment.

    26. This brings the Court to the authorities relied upon by TDB.
    Pavanendra Narayan Verma is an important decision in this area. It
    explains that the Court must first examine the “form” of the order to
    determine whether it is ex facie stigmatic, and, if it survives that scrutiny,
    proceed to ascertain the “substance” of what underlies it. It further lays
    down that a termination would assume a punitive character where it is
    preceded by a full-scale enquiry into allegations of misconduct or moral
    delinquency and culminates in a finding of guilt. At the same time, it
    clarifies that the mere existence of complaints, dissatisfaction, or even a
    preliminary enquiry undertaken to assess suitability would not, by itself,
    render an order punitive. The decision, thus, cautions against a mechanical
    reading of the order and requires the Court to examine what, in truth, formed
    its foundation.

    27. Satish Joshi and A.N. Gupta proceed in broadly the same field. They
    recognise that where a contractual or tenure appointment is expressly made
    subject to review, appraisal, or assessment of suitability, the employer may,
    in an appropriate case, discontinue the engagement in terms of the contract,
    and the Court will not ordinarily substitute its own view for that of the
    employer on questions of performance or utility. Those decisions, however,
    proceed on the footing that the action is, in fact, based on an assessment of
    performance or suitability in the contractual sense. They do not address a
    situation where, on a reading of the record, the employer has moved onto a

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    conduct-based footing, and the final order alone is couched in neutral terms.

    28. Satish Joshi, in particular, assists TDB only up to a point. In that
    case, the order was expressly grounded in unsatisfactory performance, and
    the Court held that, in the case of a contractual appointee, a full
    departmental enquiry is not to be insisted upon in the abstract. That
    reasoning presupposes that the employer is acting on performance or
    suitability. It does not extend to a case where the record discloses that the
    action is founded on allegations of misconduct, but the final order adopts
    neutral language. As noticed earlier, where the surrounding material
    indicates that the termination is, in substance, traceable to allegations of
    misconduct, the Court is required to examine its true character rather than
    proceed solely on the basis of the language of the final order. The record
    here shows a progression through allegations of “insubordination”,
    information leakage, misuse of official material, and breach of trust,
    followed by a final order which speaks only of unsuitability.

    29. The decision in S.S. Shetty is of limited assistance on the question of
    the validity of the impugned termination itself. Its principal relevance lies in
    the matter of relief. The judgment explains that, in the ordinary law of
    master and servant, where a contract of service is terminable by notice,
    damages are ordinarily measured with reference to the notice period. It also
    recognises that, where the contract is for a fixed term, a different measure
    may apply, subject to established principles. At the same time, the decision
    also explains, in the context of computation of monetary value of
    reinstatement under the framework of the Industrial Disputes Act, that such
    exercise is not capable of precise or rigid formulation, and must be
    undertaken having regard to the relevant circumstances bearing on the

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    employment. The authority is, therefore, relevant on the question of
    monetary relief than on the anterior question whether the impugned
    termination can be sustained in law. The Court will return to that aspect
    while dealing with relief.

    30. The Petitioners’ reliance on U.P. State Road Transport and Swati
    Priyadarshini is, in the opinion of the Court, considerably closer to the
    present case. In U.P. State Road Transport, the Supreme Court held that
    even in the case of a contractual engagement, a termination founded on
    alleged misconduct cannot be sustained where it is effected without
    affording a reasonable opportunity or holding a proper enquiry. The decision
    proceeds on the footing that the substance of the action must be examined,
    and not merely its contractual form. Swati Priyadarshini articulates this
    principle more explicitly. It emphasises that the form of the order is not
    conclusive and that the Court is entitled to look behind the language
    employed to ascertain the true character of the action. Where the record
    discloses that the termination is, in substance, founded on allegations of
    misconduct, the action assumes a punitive character and cannot be sustained
    in the absence of adherence to the requirements of a fair procedure.

    31. The present case lies much closer to that line of authority than to the
    decisions dealing with pure unsuitability. There are three reasons for saying
    so. First, the Petitioners were not removed against a clean or neutral
    background. The complaint episode, the suspension, the internal enquiry,
    and the later allegations form part of one continuous sequence. Secondly,
    TDB’s own internal notings disclose a conscious move towards initiation of
    process of SCN against these Petitioners on allegations of improper retrieval
    of official material, misuse of position, breach of trust, and an “information

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    leak”. Those are not matters referable to performance alone. They are
    allegations directed at conduct. Thirdly, the final order employs the
    expression “found unsuitable” without any preceding material of adverse
    service appraisal that could reasonably sustain such a conclusion. The
    contrast between that language and the service material already noticed is
    too stark to be ignored.

    32. The Court therefore concludes, on Issue (ii), that the termination
    letters dated 5th September, 2018 cannot be treated as mere instances of
    simple contractual discharge. On the record before the Court, they represent
    the culmination of a process that was punitive in substance. TDB may have
    been of the view that there was misuse of internal material or a breakdown
    of trust. That, however, is not the decisive point. The decisive point is that, if
    TDB intended to act on that basis, it was bound to do so fairly, candidly, and
    in accordance with law. It could not proceed on a conduct-based footing and
    then seek refuge in the neutral vocabulary of unsuitability at the final stage.

    33. That also answers Issue (iii). The contractual notice clause does not
    save the impugned action in the facts of the present case. A State
    instrumentality cannot rely on such a clause as a means of disregarding the
    factual and procedural background that preceded the final order. When the
    record itself discloses that the real basis of the action lay in allegations
    touching conduct, confidentiality, misuse of access, and loss of trust, the
    notice clause cannot convert that action into an innocuous contractual
    discontinuance. At the highest, the clause explains the form of the final
    order; it does not legitimise the course by which TDB arrived there.

    34. That leaves the question of relief. This is a stage at which the Court
    must exercise restraint. The Petitioners have succeeded in showing that the

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    impugned action is legally unsustainable. It does not follow, however, that
    reinstatement must necessarily be ordered as a matter of course. The
    Petitioners were contractual appointees. No claim for regularisation is being
    pressed in the present batch of matters. TDB’s consistent case, both in
    pleading and in submission, has also been that the earlier model of direct
    contractual engagement was later discontinued and that, from 2019 onwards,
    temporary manpower requirements came to be met through outsourcing
    arrangements. The wisdom of that institutional choice is not for the Court to
    examine. The point is narrower. A writ court ought to be slow, years after
    the event, to reconstruct a contractual arrangement which no longer survives
    in that form, or to direct continuation through a placement mechanism that is
    itself not the source of the Petitioners’ appointment.

    35. At the same time, the Court is not persuaded that the matter can be
    reduced to mere payment of one month’s notice pay. That would fail to
    reflect the nature of the wrong. The Petitioners were not disengaged in the
    ordinary course upon the natural expiry of a contractual term. They were
    subjected to an action which, for the reasons already recorded, cannot be
    sustained in law. During the proceedings, TDB indicated, without prejudice,
    that it was willing to pay salary up to March 2019. That position goes
    beyond TDB’s strict contractual stance and, in the facts of the present case,
    furnishes a fair and workable measure for moulding relief. It acknowledges
    that the termination cannot be upheld, while avoiding the artificiality of
    ordering reinstatement into a contractual regime long after the event.

    36. In moulding relief in this manner, the Court is not treating TDB’s
    offer as the source of its power. The source lies in the Court’s conclusion
    that the impugned action is unsustainable and that an appropriate

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    consequential remedy must follow. TDB’s stated position is being treated
    only as a fair measure, consistent with the nature of the case and the limits
    of writ relief in matters of this kind. Full back wages up to the present would
    not be warranted. Reinstatement, at this distance of time and in the present
    factual setting, would travel too far. Monetary relief up to 31 st March, 2019,
    in the Court’s view, strikes a just and balanced course.

    37. The operative directions are, accordingly, as follows:

    (i) The suspension order dated 22nd April, 2018 and the continuation
    order dated 5th May, 2018, insofar as they concern the present Petitioners,
    are declared unsustainable in law.

    (ii) The termination letters dated 5th September, 2018 issued to the
    Petitioners are set aside.

                              (iii)     No direction for reinstatement is issued.
                              (iv)      In lieu of reinstatement, TDB shall pay to each of the Petitioners
    

    contractual emoluments from the respective dates of termination up to 31st
    March, 2019, after adjusting any amount already paid, along with simple
    interest at the rate of 6% per annum from the date when the amount became
    due till the date of payment.

    (v) If any contractual dues referable to the period up to 31 st March, 2019,
    including notice pay or unpaid dues relatable to the period of suspension,
    remain outstanding, the same shall be computed and released in the same
    exercise.

    (vi) The computation and payment directed above shall be completed
    within a period of eight weeks from today. In default, the unpaid amount
    shall carry simple interest at the rate of 6% per annum from the expiry of the
    said period until realisation.

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    (vii) It is clarified that this order does not confer any right of
    regularisation, absorption, continuity in regular service, or appointment
    through any outsourcing agency or other future staffing arrangement.

    (viii) It is further clarified that the Petitioners’ disengagement shall not be
    treated as one founded on proved misconduct.

    38. The writ petitions are, accordingly, disposed of in the above terms.
    Pending applications, if any, shall also stand disposed of.

    SANJEEV NARULA, J
    APRIL 16, 2026/ab

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