This Service Law Roundup of June 2025 provides an overview of important cases and key legislative updates of service law that made headlines this month, such as the Supreme Court’s decision on premature resignation, Gauhati HC’s stand on merit-cum-seniority, Punjab and Haryana HC’s decision on withholding retiral dues and Madras HC’s interpretation of ‘misconduct’ for disciplinary proceedings, and more. These decisions, among others, offer valuable insights into the evolving legal landscape concerning resignation, dismissal, retirement, recruitment, and other aspects of service law.
HIGHLIGHT OF THE MONTH
LEGISLATION UPDATE ON UNIFIED PENSION SCHEME
Govt rolls out new Unified Pension Scheme under NPS for Central Govt Employees
On 18-6-2025, the Ministry of Finance, Department of Financial Service introduced ‘Unified Pension Scheme (UPS)’ to extend the pension benefits and retirement gratuity and death gratuity benefits to the employees of Central Government under the National Pension System (NPS). Read More HERE
PREMATURE RESIGNATION
SUPREME COURT | Explained | Why SC upheld validity of restrictive covenant with indemnity clause of Rs 2 Lakhs in case of premature resignation from Vijaya Bank’s service
While considering the instant appeal revolving around the validity of a restrictive covenant in the appointment letter issued by Vijaya Bank, whereby an indemnity bond of Rs 2 Lakh was required to be furnished in case respondent resigns prematurely; the Division Bench of P.S. Narasimha and Joymalya Bagchi*, JJ., upheld the validity of the restrictive clause stating that it does not amount to restraint of trade nor is it opposed to public policy. The Court opined that Vijaya Bank is a public sector undertaking and cannot resort to private or ad-hoc appointments through private contracts. An untimely resignation would require the Bank to undertake a prolix and expensive recruitment process involving open advertisement, fair competitive procedure lest the appointment falls foul of the constitutional mandate under Articles 14 and 16 of the Constitution. [Vijaya Bank v. Prashant B Narnaware, 2025 SCC OnLine SC 1107] Read More HERE
PROMOTION
GAUHATI HIGH COURT | ‘In merit-cum-seniority there is greater emphasis on merit’; Gauhati High Court holds promotional exercise of New India Assurance Ltd. Valid
In a civil writ petition challenging the notice dated 16-01-2024 of the Promotion Exercise 2024-25 to the cadre of Scale VII issued by the New India Assurance Co. Ltd. (‘NIAC’) on the ground of it being illegal and violative of the Promotion Policy 2006, the Single Judge Bench of Kardak Ete, J*., finding no procedural infirmity or illegality in the promotion exercise dismissed the petition holding that the principle of ‘merit-cum-seniority’ lays greater emphasis on merit and ability and seniority plays a less significant role and is to be given weight only when merit and ability are approximately equal. [Lathrang Born Buam v. Union of India, 2025 SCC OnLine Gau 2945] Read more HERE
PUNJAB AND HARYANA HIGH COURT | Punjab and Haryana High Court dismisses State’s appeals against Policewoman’s Promotion; criticises baseless Adverse Remarks in ACR
In a set of appeals filed by the State of Haryana against the impugned judgment whereby the Single Judge allowed two writ petitions directing the State to grant the respondent/ policewoman notional promotion accompanied by all her service benefits, the Division Bench of Sanjeev Prakash Sharma and Meenakshi I. Mehta, JJ., dismissed the appeals, concurring that the adverse remarks entered in the ACR of the policewoman and the compulsory retirement order passed on the said basis were arbitrary due to the complete lack of material to justify the same. [State of Haryana v. Rani Devi, 2025 SCC OnLine P&H 2760] Read More HERE
RETIREMENT
HIMACHAL PRADESH HIGH COURT | ‘Withdrawal of premature retirement allowed before effective date’; Himachal Pradesh HC reinstates Government Degree College’s Principal under CCS Rules
In a writ petition filed by the Principal of Government Degree College, Solan, against the impugned order wherein her request for withdrawal of premature retirement was rejected, a Single Bench of Sandeep Sharma, J.*, allowed the petition, reiterating that the appointing authority had no discretion to refuse withdrawal if the request was made before lapse of the notice period and before the retirement had taken effect. Thus, the Court directed the respondents to permit the petitioner to rejoin the service from the date she had tendered the request for withdrawal of resignation. [Indira Daroch v. State of Himachal Pradesh, 2025 SCC OnLine HP 1818] Read More HERE
PUNJAB AND HARYANA HIGH COURT | Punjab and Haryana HC directs release of police officer’s retiral dues withheld due to pending case under Punjab Excise Act
In a writ petition filed by a retired police officer seeking direction to the State to release his retiral dues that were withheld due to a pending case registered under the Punjab Excise Act, 1914 (‘Excise Act’), a Single Judge Bench of Jagmohan Bansal, J., allowed the petition and directed release of the retiral dues, holding that no progress had taken place in the case since the last 20 years after the filing of the challan, thus, the police officer could not be held guilty for non-adjudication of the FIR. [Inderjit Sharma v. State of Punjab, 2025 SCC OnLine P&H 2684] Read More HERE
VOLUNTARY ABANDONMENT
BOMBAY HIGH COURT | Bombay High Court: Prolonged unauthorised absence from work constitutes voluntary abandonment of service and not termination
A Single Judge Bench of Anil L. Pansare, J., quashed and set aside Industrial Court orders that had directed reinstatement and back wages for several employees who had stayed away from duty without authorisation. The Court held that prolonged unauthorised absence from work, despite multiple opportunities to resume duty, amounted to voluntary abandonment of service and did not constitute termination/retrenchment under the Industrial Disputes Act, 1947 (the Act). [Rashtrasant Tukdoji Maharaj Technical and Education Society v. Indira Madhukar Muraskar, 2025 SCC Online Bom 2055] Read More HERE
RECRUITMENT
PUNJAB AND HARYANA HIGH COURT | 2004 HCS Recruitment Scam | Read Why Punjab & Haryana High Court delivered split verdict and referred to Larger Bench
In a significant decision regarding the contentious 2004 Haryana Civil Services (Executive Branch) recruitment, a Division Bench comprising Sanjeev Prakash Sharma* and Meenakshi I. Mehta*, JJ. delivered a split verdict regarding allegations of irregularities in the selection process and discriminatory denial of appointment and referred the matter to a larger bench. [Surender Lather v. State of Haryana, 2025 SCC OnLine P&H 3038] Read More HERE
DISMISSAL
PUNJAB AND HARYANA HIGH COURT | “Deemed confirmation concept has long been discarded”: Punjab and Haryana HC rejects plea of Civil Judge, dismissed after probation due to ‘doubtful integrity’
In a writ petition filed by a Civil Judge against his dismissal from service upon completion of his probation, the Division Bench of Sheel Nagu*, CJ., and Sumeet Goel, J., rejected the petition, holding that the concept of deemed would not apply to the present case since it would create an anomalous situation where the probationer despite being unfit for confirmation, would be deemed confirmed, bringing into the service a Judge of doubtful integrity whose service record was tainted with adverse remarks. [Ankur Lal v. Punjab and Haryana High Court, 2025 SCC OnLine P&H 2578] Read More HERE
DISCIPLINARY PROCEEDINGS
MADRAS HIGH COURT | Matrimonial disputes constitute ‘misconduct’ under TN Government Servants’ Conduct Rules; Govt. departments can initiate disciplinary proceedings: Madras HC
In a writ appeal filed under Clause 15 of Letters Patent to set aside the order, dated 01-02-2018, wherein the Court opined that the criminal case registered in a matrimonial dispute may not be an impediment for continuance of the government contractual employment, the division bench of S.M. Subramaniam and Dr. A.D.Maria Clete, JJ. clarified that, under the Tamil Nadu Government Servants’ Conduct Rules, 1973, matrimonial disputes constitute misconduct, thereby authorizing government departments to initiate disciplinary proceedings in such circumstances. In the present appeal, it was observed that the respondent’s contract had expired in 2017. Consequently, the Court found that the impugned order was inconsistent with these legal principles and the Conduct Rules and hence allowed the appeal. [Executive Secretary of District Health Society v. K.S.Subha Karuthukhan, 2025 SCC OnLine Mad 2835] Read More HERE
CORRUPTION
MADHYA PRADESH HIGH COURT | Chief Executive Officer, Zila Panchayat, can withdraw Financial Powers of Sarpanch facing corruption charges: MP High Court
In a writ petition filed under Article 226 of the Constitution of India, challenging the order dated 17-01-2024 by which the petitioner’s financial powers as Sarpanch were withdrawn due to taking bribery and the same was conferred upon the Panchayat Coordinator, a single-judge bench of Vishal Dhagat, J., affirmed the impugned order and held that the “Chief Executive Officer, Zila Panchayat have power to issue orders withdrawing financial powers of Sarpanch who is found to be involved in a corruption case.” [Manghu Baiga v. State of M.P., 2025 SCC OnLine MP 4009] Read More HERE
COMPASSIONATE APPOINTMENT
MADRAS HIGH COURT | Madras High Court cracks down on bureaucratic inaction in compassionate appointments; Initiates contempt proceedings
In a series of writ petitions concerning compassionate appointments, a Single Judge Bench of Battu Devanand, J. strongly criticised the bureaucratic inaction in implementing court orders, noting that the case reflected a “lethargic attitude” on the part of several officials. The Court observed that such indifference demonstrates a lack of regard for the common man and underprivileged litigants, who continue to be denied the benefits of judicial relief due to administrative apathy. The Court expressed its intent to initiate suo motu contempt proceedings against the Chief Secretary to the Government of Tamil Nadu. [V.Nithya v. Tamil Nadu State Transport, 2025 SCC OnLine Mad 2617] Read More HERE
PENSION
GAUHATI HIGH COURT | Gauhati High Court directs contractual music teacher to approach Governor for exercise of discretionary powers for pension relief
In a writ petition filed by an ad-hoc music teacher against the rejection of her regularisation request or alternatively, seeking grant of voluntary/compulsory retirement along with payment of her pension and pensionary benefits, the Single Judge Bench of Robin Phukan, J., allowed the petition, holding that though the petitioner’s prayer for regularization of her service or voluntary retirement and pensionary benefits could not be granted under the existing law, her case could be considered by the Governor under Rules 31 and 235 of the Assam Service (Pension) Rules, 1969 (‘the Rules’). Accordingly, the petitioner was granted liberty to approach the Director of Secondary Education, Assam (‘DSE’) to file a representation addressing the Governor. [Juri Bauruah v. State of Assam, 2025 SCC OnLine Gau 3068] Read More HERE
PUNJAB AND HARYANA HIGH COURT | ‘Deplorable approach adopted by Union towards its own army personnel’; Punjab and Haryana HC rejects pleas against rounding off disability element of disability pension
In a batch of writ petitions filed by the Union against the Armed Forces Tribunal (‘AFT’) that rounded off the disability element of the disability pension of respondents to 50 percent, the Division Bench of Sanjeev Prakash Sharma and H.S. Grewal, JJ., rejected the petitions, holding that the binding precedents by the Supreme Court did not restrict the payment of arrears for only three years before the filing of the application. The Court deplored the Union’s approach towards its own former servicemen, non-compliance with the Supreme Court’s decisions, and undertaking unnecessary litigation. [Union of India v. Ex Sep Swaran Singh, 2025 SCC OnLine P&H 2604] Read More HERE
LEGISLATION UPDATE ON RESERVATION
Govt revises reservation framework in Ladakh vide UT of Ladakh Reservation (Amendment) Regulations, 2025
On 2-6-2025, the President assented Union Territory of Ladakh Reservation (Amendment) Regulation, 2025, to redefine reservation limits and criteria for government jobs and educational institutions in Ladakh. Read More HERE
