In Brief
A non-governmental college run by a registered society terminated temporary employees (Lab Assistant, Sweeper, Waterman, Mechanic) following an authorized decision to abolish those posts due to financial losses. The institution paid six months' salary. The lower courts held the termination violated statutory requirements under Section 18 of the Rajasthan Non-Government Educational Institutions Act, 1989, requiring the Director's prior approval. The Supreme Court allowed the management's appeal, holding that Section 18 and Rule 39 of the 1993 Rules do not apply to removal resulting from post abolition when posts are non-aided and appointments were not government-approved. A management's conscious decision to abolish posts for financial reasons is not arbitrary unless shown to be mala fide. Payment of severance does not retroactively invoke procedural requirements otherwise inapplicable.
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