Orissa High Court Stays Single Judge Order Reinstating NLU-O Finance Officer Engaged On Contractual Basis

While issuing notice to the opposite parties, the Division Bench ordered,

"As an interim, it is directed that there shall be stay operation of the impugned judgment dated 10th May, 2022 in W.P.(C) No.33209 of 2020 under Annexure-1 till 27th June, 2022."

Factual Background:

The Single Bench had adjudicated a plea moved by one Sabyasachi Mohanty, who worked as an assistant finance officer on contractual basis from 2016 in NLUO. He had challenged a letter dated October 17, 2020 through which he was informed that his service would not be extended further and that he would be relieved from his duties on October 19, 2020.

The Court observed that the university had removed the petitioner from his post of Assistant Finance Officer de hors the applicable terms and conditions and that petitioner undoubtedly had an expectation of being regularized or in the bare minimum continue further in his post by way of extension.

The Court also took into consideration that NLUO had regularized a large number of contractual employees after each of them had completed two years of satisfactory service and since the petitioner had already completed four years of unblemished tenure, his expulsion from service was held to be contrary to the terms and conditions set by the university itself.

Justice Rath had further opined that since the petitioner had already completed an unblemished service of more than three years, he had a reasonable expectation to continue in his post as the assistant finance officer. Expressing displeasure at the conduct of the university for setting different service standards for different employees, the Court had remarked,

".. it also makes it clear that the University in the guise of no permanent service conditions on its own employee, is applying different standards in case of different employees which cannot get approval of law. Once you set a principle that should be followed till it is replaced only by a better principle, if any. The attitude of the University in the circumstance makes it clear that the University applies different principles in case of different employees, which ought to be prohibited."

Accordingly, the Single Judge Bench had declared the impugned order of the University to be bad in law and thus, had set it aside. It also ordered NLUO to treat the petitioner as deemed to be continuing in the post of assistant finance officer in his service uninterrupted.

The Court had ordered that the petitioner is entitled to 50% of his drawing taking into account his last pay drawn towards back wages which should be counted and paid to the petitioner within a period of 1 month. For illegally dispensing with the service of the petitioner, the Court had directed that the petitioner is also entitled to interest on back wages at least at the rate of 5% per annum all through.

If back wages and interest together are not paid to the petitioner within a period of one month, the Single Judge had ordered, he shall be entitled to interest at the rate of 8% per annum from the date of expiry of one month of the judgment till it is released in favour of the petitioner.

Being aggrieved by the aforesaid judgment, the NLUO had filed an appeal against the same.

Observations of the Division Bench:

The Division Bench while admitting the appeal, issued notice to the opposite parties. It listed the matter to 27^th June 2022 under the heading "fresh admission". Further, it made an order that in the interim period the judgment of the Single Judge will be put on stay.

Case Title: The National Law University of Odisha & Anr. v. Sabyasachi Mohanty & Ors.

Case No.: Writ Appeal No. 723 of 2022

Order Dated: 27^th May 2022

Coram: Justice B.P. Routray & Justice M.S. Sahoo

Counsel for the Petitioners: Mr. S.P. Mishra, Senior Advocate assisted by Mr. P.K. Rath, Advocate

Counsel for the Respondents: Mr. B.P. Tripathy, Additional Government Advocate for Respondent Nos. 2 to 5; Mr. S.K. Dalai, Advocate along with Mr. A. Dash, Advocate for Respondent No. 1

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