P B GHAYALOD Vs. MARUTI UDYOG LIMITED

JUDGEMENT

(1.) The petitioner through the present writ petition wants this court to quash the termination order dated 14-9-1990 whereby his services were terminated by the respondents.

(2.) The submissions of the petitioner are that Maruti Udyog Ltd., Respondent No. 1 (hereinafter referred to as respondent) is a Government company as defined in Section 617 of the Companies Act, 1956. It was incorporated on 24th November, 1981 and became a "deemed public company" under section 43-A(i) of the Companies Act, 1956 w.e.f. 24th January, 1983. The Joint Venture agreement and the license agreement were signed with Suzuki Motor Company on 2-10-1982. The equity participation in between Government of India (hereinafter referred to as respondent No. 2 for the sake of brevity) and the Suzuki Motor Company is in the ratio of 60 : 40. Respondent No. 1 is completely under the control of respondent No. 2 under the Ministry of Industry which is managed by a Chairman, under the superintendence and control of Board of Directors who are appointed by the Central Government and are removeable by it. It is this veil behind which the Central Government operates through the instrumentality of the respondent No. 1 The activities which are being carried on by the respondent No. 1 of manufacture of the motor vehicles are of vital national importance. In the above circumstances, respondent No. 1 is a State being an authority within the territory of India and under the control of the Government of India within the meaning of Article 12 of the Constitution of India.

(3.) The petitioner further submits that he is a B.E. (Mechanical). He has specialised in automobile engineering. The petitioner was selected for the post of General Manager (Marketing & sales) on 7-5-1985. The petitioner was a permanent employee of respondent No. 1. One of the conditions of the appointment of the petitioner, i.e., condition No. 6, was that the service of the petitioner would be terminable by a three months notice without assigning any reason. The services of the petitioner were terminated under the said term. i.e., term No. 6, without any rhyme or reason through a letter No. GUGN/P-RS/PP-1249666, dated 14-9-1990. The said termination order is void and illegal in asmuch as it is in contravention of the provisions of the Article 14 of the Constitution of India, clause No. 6 in the letter of appointment is opposed to public policy. As such it is void under section 23 of the Indian Contract Act. The aforesaid termination order is arbitrary, discriminatory, violative of the principle of natural justice of audi alteram partem inasmuch as it not only Infringes Article 14 but also Article 19(1) (2) and 21 of the Constitution of India. It has thus been prayed that the impugned order of termination of the services of the petitioner dated 14-9-90 be set aside and quashed. The petitioner be reinstated as the General Manager of the respondent No. 1. The petitioner be also granted full back wages from 15th December, 1990 onwards till his reinstatement.