# In the matter of Sri. S. Raghunathan Vs. Union of India & Ors., W.P. No. 31899 of 2019 (S-RES)

> HC judgment dated 2020-07-03. Citation: TCN-2020-HC-00027. The petitioner, an Executive Director (now removed) of the 2nd respondent-Company, filed a writ…

- **Court:** HC
- **Order date:** 3 Jul 2020
- **Citation:** TCN-2020-HC-00027
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/sri-s-raghunathan-vs-union-of-india-ors-wp-no-31899-of-2019-a99a409f

## Summary

### Background

The petitioner, an Executive Director (now removed) of the 2nd respondent-Company, filed a writ petition challenging the termination letter dated 25.03.2019 issued by the Managing Director cum Chief Executive Officer of the company. The letter informed the decision of the Board of Directors regarding the determination of his contractual appointment.

## Facts

Sri. S. Raghunathan, the petitioner, was an Executive Director of National E-Governance Services Ltd (NESL). He was appointed for a period of five years vide letter dated 30.08.2016, subject to certain conditions. One of the conditions allowed the company to determine his service by giving three months' notice or three months' gross emoluments. The petitioner's services were terminated vide letter dated 25.03.2019. The petitioner challenged this termination, arguing that it was stigmatic and required an enquiry. The company argued that it was a private limited company and the termination was in accordance with the terms of the contract. The petitioner allegedly accepted a sum of Rs. 12,00,000/- as gross emoluments for three months without protest.

## Issues and analysis

### Issue 1: Whether the writ petition is …

**Ratio:** A writ petition is generally not maintainable against a private limited company unless it

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**Reasoning:** The court found that the answering respondent is a Private Limited Company and there was

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**Interpretation:** Article 12 defines the 'State' for the purpose of enforcing fundamental rights.

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**Application:** Since the respondent company was a private limited company and not an

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## Parties

- **Judges:** KRISHNA S…
- **Appellants:** SRI. S. RAGHUNATHA…
- **Respondents:** NATIONAL E-GOVERNA…; Union of…

## Timeline

- **2016-08-30 — Appointment of…**: Petitioner appointed as Executive Director…
- **2019-03-25 — Termination…**: Letter issued by NESL…

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