1998 (4) TMI 552 - SC - Indian Laws

Supreme Court affirms termination of probationary employment & upholds application of res judicata.

The Supreme Court upheld the High Court's decision regarding the termination of probationary employment and the maintainability of the suit under the ... - Issues:1. Termination of probationary employment.2. Maintainability of suit under Specific Relief Act.3. Applicability of res judicata in writ petition.4. Entitlement to declaration of continued employment.Analysis:1. Termination of Probationary Employment:The appellant, a probationary Inspector at a company, was terminated due to failure to achieve the targeted premium amount. The appellant challenged the termination through a suit for a declaratory decree. The trial court and first appellate court ruled in favor of the appellant, but the High Court dismissed the suit in a second appeal by the respondent. The High Court held that the termination was valid as per the terms of the employment contract, and the appellant was not entitled to continue as a Probationary Inspector. The Supreme Court upheld the High Court's decision, stating that the appellant failed to meet the conditions for continuation as per the appointment letter.2. Maintainability of Suit under Specific Relief Act:The respondent argued that the suit was not maintainable under Section 34 of the Specific Relief Act. However, the trial court, execution court, and High Court held that the suit was maintainable. The Supreme Court reiterated that the decision in a writ petition under Article 226 or 32 would operate as res judicata in subsequent proceedings, barring the respondent from re-agitating the issue of maintainability.3. Applicability of Res Judicata in Writ Petition:The Supreme Court emphasized that the rule of res judicata applies to writ petitions under Article 226 or 32, ensuring finality in judicial decisions. The Court cited previous judgments to support the application of res judicata in writ proceedings, preventing parties from re-litigating the same issues in subsequent stages or proceedings.4. Entitlement to Declaration of Continued Employment:The appellant sought a declaration that he continued to be in the employment of the respondent-company. However, the terms of the employment contract clearly stated the conditions for continuation as a Probationary Inspector. As the appellant failed to meet these conditions, the High Court correctly concluded that the suit was liable to be dismissed. The Supreme Court upheld this decision, stating that the appellant could not claim continued employment based on the contract terms.In conclusion, the Supreme Court dismissed the appeal, upholding the High Court's decision regarding the termination of probationary employment and the maintainability of the suit under the Specific Relief Act. The Court affirmed that res judicata applied to prevent re-agitation of issues and clarified that the appellant was not entitled to a declaration of continued employment based on the contract terms.