State of U.P. & Ors. vs. Sandeep Agarwal
Background
Several government doctors employed by the State of Uttar Pradesh applied for voluntary retirement (VRS) between 2006 and 2008, but the State left their applications undecided for years. In the meantime, the doctors remained absent from duty for a long period, and in 2010 the State terminated the employment of these doctors, along with more than 400 others, by invoking the special constitutional power under Article 311(2)(b), which allows dismissal without a disciplinary inquiry where holding one is "not reasonably practicable." The Allahabad High Court found this provision inapplicable and ordered the doctors reinstated with full consequential benefits (in one case with costs too), prompting the State's appeals to the Supreme Court.
Decision Breakdown
The Supreme Court found fault on both sides: the State was wrong to leave the VRS applications pending for so long without any explanation, but the doctors were equally wrong to simply stop attending work instead of pursuing legal remedies when their applications went unanswered. Given this, the Court held that full reinstatement with consequential benefits, as ordered by the High Court, was not an appropriate remedy given the doctors' prolonged unauthorized absence, but outright termination was too harsh given the State's own inaction on their VRS requests. Exercising its special constitutional power under Article 142 to do "complete justice," the Court set aside the High Court's reinstatement orders and instead deemed the doctors to have voluntarily retired effective from the original 2010 termination date, denying them back salary and pension for the intervening period but allowing their pension to be recalculated from that 2010 date going forward.
Lesson Learnt
When both an employer's inaction and an employee's own misconduct contribute to a workplace dispute, courts may craft a middle-ground remedy, using constitutional powers to achieve fairness, rather than granting either side's request in full.