THE MANAGEMENT OF U.B. DUTT & CO. vs WORKMEN OF U.B. DUTT & CO.

The Supreme Court held that the termination of an employee's service under Rule 18(a) of the Standing Orders, after dropping a proposed departmental enquiry, constituted a colourable exercise of power. The Court emphasized that an employer's right to terminate is subject to industrial adjudication and must be exercised in good faith, rejecting the notion of an unfettered right to 'hire and fire'. The decision of the industrial tribunal to reinstate the employee was upheld, distinguishing the principles applicable to government service from those governing industrial employees.