NARESH KUMAR SINHA versus STATE OF BIHAR & ORS.

Citation: [2025] 4 S.C.R. 2742 · Decided: 02-04-2025 · Supreme Court of India · Bench: J.K. MAHESHWARI · Disposal: Appeal(s) allowed

Judgment (excerpt)

[2025] 4 S.C.R. 2742 : 2025 INSC 814
Naresh Kumar Sinha 
v. 
State of Bihar & Ors.
(Civil Appeal No. 4661 of 2025)
02 April 2025
[J.K. Maheshwari* and Aravind Kumar, JJ.]
Issue for Consideration
Whether the High Court erred in declining to interfere in the order 
terminating the service of the appellant.
Headnotes†
Service Law – Termination from service – When not justified – 
Appellant-Clerk was terminated from service alleging that the 
appointment order was issued by an incompetent authority 
Deputy Director, Human Resources Development Department 
(DDHRD) and was illegal; and that the appellant had forged 
the appointment order – Termination upheld by High Court – 
Interference with:
Held: Order of termination is untenable on fact and record – The 
reasoning that the appointment order was issued by DDHRD is 
incorrect as the appointment order was issued by Government of 
Bihar, Human Resource Development Department, and signed 
by Additional Director and not by DDHRD – Further, mere bald 
statement that the appointment was based on forged document 
or on fraud is not sufficient – Appellant worked for more than 16 
years regularly, was regularly paid salary by the department, and 
has thus, acquired the status of permanent employee – Mere 
correspondence of an officer alleging non-issuance of appointment 
memo is not enough to prove such fraud, particularly when such 
appointment was made in furtherance to an advertisement, and 
while terminating the services, it is said that order of appointment 
was issued by incompetent authority – Allegation of fraud has 
not been pleaded and substantiated – In case the record was not 
traceable, it would not ipso facto make the appointment forged or 
fabricated – If the department was of the opinion that the order of 
appointment is not available on record, an enquiry should have 
been conducted for looking into the alleged forgery in issuance of 
* Author
[2025] 4 S.C.R. 
2743
Naresh Kumar Sinha v. State of Bihar & Ors.
the appointment order – In absence of any such enquiry, allegations 
of fraud and fabrication leading to termination are unjustified – 
Orders passed by the High Court set aside – Termination order 
quashed – Appellant to be reinstated with 50% back wages and 
all the consequential benefits – Fraud. [Paras 12, 15, 22, 24]
Service Law – Termination from service, on ground of fraud – 
Non-production of the record by Department – Adverse 
inference to be drawn:
Held: When the allegation of forgery or fraud has been made by the 
State Government, it must have some foundation – In cases where 
mere allegation of fraud has been made without any foundation 
and then the records have been called by the Court to assess 
such allegations, it is the duty of the Head of the Department to 
produce the same for perusal – In the present case, if the said 
record was not traceable, then it was the duty of the Department 
to identify who was responsible for misplacing such record, and 
an enquiry in this regard ought to have been conducted against 
the defaulting person and report in that regard should have been 
placed – In absence thereof, mere plea of non-traceability of the 
record is insufficient – Thus, despite granting multiple opportunities, 
which resulted in non-production of the record, in the facts, adverse 
inference drawn against the respondents. [Para 22]
Words and Phrases – Fraud – Meaning and impact – Discussed. 
[Paras 17-20]
Case Law Cited
Ram Chandra Singh v. Savitri Devi and Others [2003] Supp. 4 
SCR 543 : (2003) 8 SCC 319 – referred to.
Lazarus Estates Ltd. v. Beasley (1956) 1 QB 702; Derry v. Peek 
(1889) 14 AC 337 – referred to.
Books and Periodicals Cited
Advance Law Lexicon, 3rd Edition 2005 by P. Ramanatha Aiyar.
List of Keywords
Termination of service; Order of termination; Forgery; Fraud; 
Services terminated without following the due process of law; Forged 
appointment; Forged document; Genuineness of the appointment 
2744
[2025] 4 S.C.R.
Supreme Court Reports
order; Appointment order issued by incompetent authority; Non-
traceability of the record; Allegation of fraud; Allegation of fraud not 
pleaded and substantiated; Absence of enquiry; Issuance of show 
cause notice; Reinstatement; Reinstated in service with back wages; 
Termination order quashed; Clerk; Government of Bihar, Human 
Resource Development Department; Deputy Director, Human 
Resources Development Department (DDHRD); Additional Director.
Case Arising From
CIVIL APPELLATE JURIS

Excerpt shown. Read the full judgment & AI analysis in Lexace.