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Issues: (i) Whether a writ of mandamus or other writ remedy under Article 226 of the Constitution of India lies against a private employer in relation to termination of employment governed by contract. (ii) Whether the impugned termination clause and termination orders could be struck down as void on the basis of public policy and Section 23 of the Indian Contract Act, 1872.
Issue (i): Whether a writ of mandamus or other writ remedy under Article 226 of the Constitution of India lies against a private employer in relation to termination of employment governed by contract.
Analysis: The writ jurisdiction under Article 226 is wide, but it is principally a public law remedy. A writ of mandamus is ordinarily intended to secure performance of a public or statutory duty. It may issue against a private body only where the body is discharging a public function and the action complained of contains a public law element. Purely contractual disputes between private parties, including disputes arising from private employment contracts, are not normally enforceable through judicial review. On the facts, the employer's decision to terminate services was held to arise from a private contract and not from any public duty.
Conclusion: The writ remedy was not available to enforce the purely contractual employment dispute.
Issue (ii): Whether the impugned termination clause and termination orders could be struck down as void on the basis of public policy and Section 23 of the Indian Contract Act, 1872.
Analysis: The decisions dealing with public sector undertakings and statutory bodies, including those where arbitrary termination clauses were tested against Article 14 and public policy, were distinguished. Those principles were held not to apply automatically to private employers governed by ordinary employment contracts. The agreements here were not shown to involve a public law obligation or a statutory framework comparable to the public sector cases. Questions concerning the status of the employees and the legality of the termination were therefore left to ordinary civil or labour remedies rather than writ adjudication.
Conclusion: The termination clause was not invalidated in writ jurisdiction on the ground of public policy.
Final Conclusion: The declaration granted by the High Court was set aside, the challenge to the writ maintainability failed in the private employment dispute, and only the limited relief expressly allowed by the Court survived while the other matter stood dismissed.
Ratio Decidendi: Article 226 can be invoked against a private body only when the challenged action discloses a public function or other public law element; purely contractual employment disputes ordinarily lie outside writ jurisdiction.