In Santosh Kumar vs. The State of Bihar through Principal Secretary, Department of Transport, Government of Bihar & Ors. (2026), Justice Dr. Anshuman delivered a 11-page long judgement dated April 30, 2026, wherein, he concluded: "this Court is of the considered view that the impugned order is stigmatic in nature and has been passed in violation of the principles of natural justice, as no opportunity of hearing was provided to the petitioner. 22. Accordingly, the respondents are directed to reinstate the petitioner forthwith. The petitioner shall be entitled to all consequential benefits, subject to the outcome of any fresh decision taken by the respondents after due process."
The five other respondents were:Principal Secretary, Department of Transport, Government of Bihar, Transport Commissioner, Transport Department, Government of Bihar, Bihar State Road Corporation, Patna through its Managing Director, Phulwarisharif, Patna, Administration (Chief), Bihar State Road Transport Corporation, Patna and Regional Manager, Bihar State Road Transportation, Gaya.
The writ petition has been filed for quashing Letter No. 570 dated 19.02.2024 issued by Respondent No. 5, namely the Administration (Chief), Bihar State Road Transport Corporation, Patna, whereby the contractual engagement of the petitioner was terminated on the ground of alleged unauthorized absence from duty with effect from December 15, 2023. The petitioner had prayed for a direction upon the respondent authorities to reinstate him on his post, as he remained willing and available to discharge his duties during the subsistence of the contractual period. The petitioner was initially appointed to the post of Traffic Manager on a contractual basis for a period of one year issued by the Administration (Chief), Bihar State Road Transport Corporation, Patna, pursuant to an advertisement issued by the Corporation. Prior thereto, an offer of appointment was issued by letter dated October 23, 2018, requiring the petitioner to execute a bond and submit an acceptance letter. The petitioner duly complied with the said requirements and joined his duties, which was formally accepted by Memo dated November 16, 2018. It was submitted that the petitioner continuously discharged his duties satisfactorily and no complaint was ever made against him. His contractual engagement was extended from time to time through various orders. Subsequently, by letter dated September 1, 2021, he was transferred from the post of Depot Superintendent to the Head Office, Patna. Thereafter, he was again transferred to Aurangabad Depot, where he assumed charge as Depot Superintendent and duly joined on June 17, 2022. During his posting at Aurangabad, the petitioner repeatedly requested the Regional Manager, Bihar State Road Transport Corporation, Gaya, through letters dated 16.05.2023, 18.06.2023, 01.07.2023, 29.08.2023, and 16.11.2023, to conduct physical verification of the store and accounts, apprehending possible manipulation by certain staff members. However, no such verification was undertaken despite repeated requests. It was further submitted that the petitioner sustained a fracture in his leg and, accordingly, submitted a leave application dated 10.10.2023 seeking leave from 12.10.2023 to 18.10.2023. Subsequently, vide letter dated 14.12.2023, the Deputy Chief Accounts Officer, BSRTC, Patna directed all Regional Managers/Assistant Regional Managers (Accounts) to conduct physical verification of stores and accounts twice a month and submit reports, warning of strict administrative action in case of irregularities. Pursuant thereto, the Regional Manager, BSRTC, Gaya conducted verification at Aurangabad Depot and alleged financial irregularities amounting to Rs. 4,00,140/-. Consequently, an FIR bearing Town P.S. Case No. 896 of 2023 dated 15.12.2023 was lodged against the petitioner and one Rajeev Raj, an outsourced cashier.
The senior counsel submitted that the allegations were wholly misconceived. It was contended that the responsibility for maintaining cash, making entries in the account register, and depositing cash in the bank lies solely with the cashier, and not with the Depot Superintendent. The petitioner had no role in the alleged misappropriation. It was further submitted that by letter ated 15.12.2023, the petitioner was directed to stop work at Aurangabad Depot during the pendency of the enquiry and remain present at the headquarters. Thus, the allegation of unauthorized absence from 15.12.2023 is factually incorrect, as the petitioner was complying with official directions. However, without conducting any enquiry and without issuing any show cause notice, the respondent authority abruptly terminated the petitioner’s contract vide Memo dated 19.02.2024 on the ground of absence. It was submitted that such termination is arbitrary, violative of the principles of natural justice, and was serious civil consequences. The petitioner’s contractual tenure was valid up to 5.05.2024, and at the time of termination, the contract was still subsisting.
The senior counsel further submitted that the petitioner had already been granted bail by the High Court vide order dated 13.05.2024 passed in Cr. Misc. No. 24489 of 2024, with a direction to deposit Rs. 2,00,000/- in installments, which has been duly complied with. In such a backdrop, it was submitted that the impugned order was liable to be set aside, and the petitioner deserved to be reinstated to the post of Traffic Manager, as the post was still vacant.
To substantiate his submissions, senior counsel for the petitioner placed reliance upon the judgment of the Supreme Court in Swati Pridarshini vs. State of Madhya Pradesh & Ors., reported in (2024) 19 SCC 128. He relied upon the judgment rendered in Bhola Nath vs. State of Jharkhand & Ors., reported in 2026 LiveLaw (SC) 95, wherein the Supreme Court held that the State, being a “model employer”, cannot exploit the unequal bargaining power of employees by continuing them on a purely contractual basis for an indefinite period so as to evade its obligations of regular employment. It was also held that abrupt discontinuation of long-serving employees merely on the ground of contractual nomenclature, and that too without a reasoned or speaking order, was manifestly arbitrary and violative of Article 14 of the Constitution of India.
Justice Dr Anshuman observed that the impugned order was "passed without adherence to the principles of natural justice, is unsustainable in law."