Contract staff can challenge termination

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Allowing an appeal in GRIDCO Limited & Anr v Sri Sadananda Doloi & Ors, the Supreme Court held that courts can examine termination orders passed by public authorities. It is “no longer open to the authority passing the order to argue that its actions being in the realm of contract is not open to judicial review”.

However, the apex court clarified that “judicial review cannot extend to the court acting as an appellate authority”.

Indian_office_worker-CMYKThe dispute was triggered by an employment termination order issued in February 2001 by GRIDCO, a company owned by the Orissa government, to Doloi, whom it had hired as a senior general manager on a renewable three-year contract. After his termination, Doloi had unsuccessfully petitioned the Orissa High Court in September 2003 to quash the order. A single judge ruled that Doloi had no legal right to claim continuance of service as his employment was “purely temporary and contractual in nature”.

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The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.

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