PSUs have a right to force retire on ‘erring’ staff

New Delhi: In a significant ruling, the Supreme Court has held that a public sector undertaking or a government company has a right to compulsorily retire an employee whose retention is detrimental to the interest of the institution without giving any reason for doing so.
A Bench of Justices Mr RV Raveendran and Mr Markandey Katju gave the verdict while upholding the action of National Aviation Company of India Ltd, a successor of Indian Airlines, compulsorily retiring its security assistant SMK Khan on the grounds of indiscipline, negligence, insubordination, sleeping on duty and unauthorised absence from office.
The apex court in its judgement noted: “The concept of public interest would get replaced by institutional interest or utility to the employer where the employer is statutory authority or a government company and not the government when the performance of an employee is inefficient or his service is unsatisfactory, prejudicial or detrimental to the interest of the institution and is of no utility to the employer.”
Mr Khan was first demoted from security assistant to chowkidar on 26 May, 1971, and later re-promoted to the same rank. But when he did not mend his ways he was compulsory retired from his service on 26 August, 1999.
12/04/09 The Statesman

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Categories: Air India Domestic Apr 2009, NACIL Apr 2009