The Gujarat High Court in the case of Minakshiben Paralya v. State of Gujarat[1] observed that terminating an employee while referring to an FIR and without conducting a full departmental inquiry was bound to be stigmatic.
The Petitioner was appointed as a Taluka Livelihood Manager in the Gujarat Livelihood Promotion Company in 2011 on contractual basis. Later, in 2018, an FIR was filed against the petitioner levelling certain allegations and subsequently, a communication was issued by the employer, terminating her services. The Petitioner alleged that the termination was in view of this FIR was and should be set aside for being stigmatic in nature. The Respondent on the other hand, referred to the contractual agreement between the parties that allowed termination in case of misconduct, fraud, or an act of moral turpitude and relied on the police complaint they had lodged for certain financial irregularities committed by the petitioner.
"Should allegations be levelled against an employee; a regular departmental inquiry would be required to afford an individual the opportunity to defend themselves.”
In deciding whether the termination was justified, the High Court, while analysing various precedents was of the view that an order of termination passed exclusively on the grounds of the FIR was stigmatic. The Court was of the opinion that should allegations be levelled against an employee; whether temporary or permanent, a regular departmental inquiry would be required in accordance with the principles of natural justice so as to afford the petitioner an opportunity to defend themselves. The Court also held that the material which amounted to stigma needn’t be contained in the order of termination but could also be present in an order or proceeding referred to the in the order of termination or even in an annexure to the same. In the present case, the order of termination was not of issue in itself but as it referred to the FIR, it was deemed stigmatic. As a consequence, the order was quashed, and the Petitioner was reinstated to her original post and benefits.