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Karnataka High Court · body

2021 DIGILAW 244 (KAR)

N. G. Mahantesh, S/o Gangadharaiah v. Managing Director Bescom Ltd.

2021-02-10

M.NAGAPRASANNA

body2021
ORDER : The petitioner in this writ petition calls in question the official memorandum dated 27.11.14, issued by the second respondent – the Superintendent Engineer by which, the service of the petitioner was terminated on the ground that he did not achieve the target that had to be achieved for three consecutive months. 2. Heard Sri Vinaya Keerthy M., learned counsel for petitioner, Smt. Girija Patil, learned counsel for respondents and perused the material on record. 3. Brief facts of the case leading to the filing of the petition as borne out from the pleadings are as follows: The petitioner was appointed as Electrical Representative pursuant to a Memorandum of Understanding between the first respondent – Bengaluru Electricity Supply Company Limited (hereinafter referred to as ‘the BESCOM’ for short) and Micro Feeder Franchisee. The job of the petitioner was that of a Bill Collector, which was to fetch revenue to the first respondent by way of collection of amount against electricity bills. Certain clauses of the Memorandum of Understanding entered into between the BESCOM and the Micro Feeder Franchinsee, which are germane for consideration of the present lis are as follows: “8.3 Other events qualifying for termination of contract: BESCOM, at its discretion, may terminate the Contract with immediate effect by giving a notice in writing the MFF in the following events. 8.3.1 If MFF fails to deposit the collections made from consumers within the stipulated time. 8.3.2 If the collections fall 10% below the minimum agreed base line target fixed in any three months in twelve months period. The minimum agreed target is mentioned as a part of the performance contract given in the Annexure 2 to this agreement. 8.3.3 If in the opinion of BESCOM, MFF has failed to perform or observe any of the terms and conditions of this Contract, provided that BESCOM shall first give notice to MFF to remedy such failure within 30 days failing which BESCOM will be free to terminate the Contract forthwith. 8.3.4 IF MFF goes in to bankruptcy or is / are in the process of winding up his business operations. 8.3.4 IF MFF goes in to bankruptcy or is / are in the process of winding up his business operations. 8.3.5 During currency of this Contract, if BESCOM discovers that MFF has misrepresented or engaged in any activity prejudicial to the interests of BESCOM or misused either BESCOM services or BESCOM or its consumer in any way whatsoever then BESCOM shall at its discretion terminate the Contract with immediate effect, without any notice. 8.3.6 Without prejudice to the other rights of BESCOM in case of termination, BESCOM shall forfeit whatever incentive MFF has earned on such business and all the dues payable shall be given only after the settlement of BESCOM accounts. 8.3.7 BESCOM unconditionally reserves the right to claim from MFF any costs, expenses of loss that it may have incurred by reason of breach of failure on the part of MFF to observe and perform any of the terms and conditions of the Contracts or the provisions of the service support as detailed in the commercial service support plan. 8.3.8 On termination of this Contract however occasioned, MFF shall forthwith deliver / return to BESCOM all papers including the forms used, partially used and unused receipts books, all promotional materials and documents which may have come into its position or custody under the terms of this Contract or otherwise including any equipments / gadgets etc., 8.3.9.If MFF fails to achieve the baseline target of revenue collection continuously for three months during the contract period his/her contract shall be terminated without further notice.” "ANNEXURE 2 PERFORMANCE CONTRACT TERMS FOR THE MFF 1. XXXX 2. Monthly Meter Reading and Baseline Collection Target. 2.1.1 The MFF shall undertake the reading 100% of all the installations pertaining to LT1, LT2, LT3, LT4 (Above 10HP), LT5 (Blow 40 HP) and LT6 categories and promptly issue the bills on the assigned reading dates of the area / jurisdiction assigned reading dates of the area / jurisdiction assigned by BESCOM from time to time.” In terms of the afore-extracted contract, as the petitioner failed to achieve 100% target as was given to him for collection of revenue for three consecutive months, an official memorandum was issued on 27.11.2014, removing the petitioner from service as Bill Collector. The order of removal is in terms of clause 8.1 of the Memorandum of Understanding as extracted hereinabove, which reserved right to the first respondent to terminate the service of the petitioner as Bill Collector, without issuance of any notice for unsatisfactory performance. 4. The official memorandum which terminates the service of the petitioner who had worked for BESCOM for close to11 years is not preceded by a notice as the allegation of unsatisfactory performance remained an allegation which the petitioner could not controvert as no notice was issued. The petitioner who had rendered service for 11 years as Bill Collector is terminated on the allegation of unsatisfactory performance. Therefore, the petitioner will have to be heard in the matter, his submissions be considered and an order be passed thereafter. 5. For the aforestated reason, the following: ORDER a. The wit petitions is allowed in part. b. The official memorandum dated 27.11.2014 is read down as a show cause notice, petitioner is at liberty to submit his reply to the show cause notice. c. The respondents -BESCOM shall consider the reply submitted by the petitioner against the impugned official memorandum that is now read down as the show cause notice within three months from the date of receipt of the reply from the petitioner to the show cause notice. d. Only for the limited purpose of compliance with clauses (b) and (c), the petitioner shall be reinstated into service.