Madras High Court· 17 September 2026

Can an order of retrenchment reducing the workforce be equated with an order of termination imposing a penalty?

Union Christian Matriculation v. Meena Rathnasabapathy

WA.912/2024 · 2026:MHC:3863 · WA No. 912 of 2024
Coram: Justice S. M. Subramaniam · Justice Krishnaswamy Govindarajan

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Answer

An order of retrenchment reducing the workforce cannot be equated with an order of termination imposing a penalty.

No. An order of retrenchment reducing the workforce cannot be equated with an order of termination imposing a penalty. The impugned order recorded a decision to reduce the workforce after a discussion with the teacher and assured her the full and final settlement due at the time of leaving, so the writ court's premise that it was a termination issued without following the procedure for imposing a penalty was not in consonance with the order.

Headnote

Constitution of India — Art.226 — Tamil Nadu Private Schools (Regulation) Act, 2018 — Writ against a private body — Public function test — Retrenchment — Alternative remedy — Constitution of India — Art.226 — Private matriculation school — Maintainability — Held: A writ petition under Art.226 is not maintainable against a private matriculation school, the aggrieved person being at liberty to approach the civil court or the competent authority under the Code. (¶6, 8) Constitution of India — Art.226 — Public function test — Regulation is not a public duty — Held further: Mere regulation of a private body by a statutory authority does not make it discharge a public duty, and a writ lies against such a body only to enforce a statutory obligation or one of a public nature. (¶7) Labour — Retrenchment — Distinguished from termination — Held further: An order of retrenchment reducing the workforce cannot be equated with an order of termination imposing a penalty, and the procedure prescribed for a penalty has no application to it. Writ appeal allowed. (¶3, 4, 9)

Headnote

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In the Court's own words

Paragraph 3Learned counsel for the appellant would contend that the writ petition is not maintainable. Though the writ court has proceeded as if the impugned order passed by the appellant management dated 03.05.2021 is the order of termination, a plain reading of the said order would show that the school management had taken a decision to reduce its workforce and had a discussion with the teacher and thereafter the first respondent was relieved from her duty as teacher of the school. The order further proceeds to state that full and final settlement due to the first respondent will be given at the time of leaving. Therefore, the order dated 03.05.2021 under challenge in the writ proceedings is not an order of termination, which cast stigma on the first respondent, but an order of retrenchment issued due to the COVID-19 pandemic and the management has taken a decision to reduce its workforce.

Paragraph 4The writ court has proceeded mainly on the basis that the said order dated 03.05.2021 is an order of termination issued without following the procedures as contemplated for imposing penalty. Retrenchment cannot be equated with termination. That apart, the order itself shows that the first respondent is entitled for full and final settlement at the time of leaving. Thus, the very basis on which the writ order proceeds itself is not in consonance with the purport of the impugned order dated 03.05.2021 passed by the appellant management.

Acts & Sections

Art.226 Constitution of India

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Also decided in this judgment

Is a writ petition under Article 226 maintainable against a private matriculation school?Does mere regulation of a private body by a statutory authority make it discharge a public duty under Article 226?

Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Madras High Court. Corrections