M.D., J&K INDUSTRIES LTD. vs PYARE LAL SHARMA

The Supreme Court examined Regulation 16.14 of the Jammu & Kashmir Industries Employees Service Rules, determining that the provision for a show cause notice is a sufficient safeguard against arbitrary termination. The Court held that the amended regulation, which introduced grounds for termination based on unauthorized absence and political participation, could not operate retrospectively, rendering the notice served to the employee illegal. Furthermore, the Court clarified that employees of the company are not civil servants and thus do not enjoy the protections under Article 311(1) of the Constitution of India, affirming the legality of the Managing Director's authority to terminate employment under delegated powers.