Allahabad High Court held that a writ under Article 226 of the Constitution is not maintainable for disputes arising from a private employment contract, as such disputes do not involve public functions or public law elements.
Allahabad High Court Bench of Justice J.J. Munir was hearing a petition and observed that a writ under Article 226 of the Constitution is not maintainable for disputes arising from a private employment contract, as such disputes do not involve public functions or public law elements.
The petitioner sought a writ of mandamus to compel Gayatri Projects Limited to accept his resignation, issue a no-objection certificate, a relieving letter, and settle his dues including arrears of salary and gratuity. Employed by the company since 2005, Chowdary was promoted to Associate General Manager in 2015. The company, facing insolvency, had been admitted to the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT) in 2022, with Sai Ramesh Kanuparthi appointed as Interim Resolution Professional (IRP).
Despite resigning in May 2023 and serving a one-month notice, Chowdary's resignation and dues were not acknowledged or settled by the company. The respondents argued that Chowdary abandoned his post without completing the necessary formalities or handing over responsibilities, crucial for the audit of projects worth Rs.3500 crores. They maintained that his presence was essential for completing the audit and that they had no intention to withhold his dues unjustifiably.
The High Court noted that under Article 226, a writ can be issued against a private body discharging public functions, such as Gayatri Projects Limited in its role of constructing highways. However, the relief sought by Chowdary pertained to his private employment contract, not the company's public functions. Citing precedents, the court held that disputes arising from private employment contracts are not subject to judicial review under Article 226. Consequently, the court dismissed the writ petition as not maintainable, advising Chowdary to seek remedies in a competent forum.
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