Counselence Connect - Counselence

Counselence Connect

Our newsletter, Counselence Connect, released every week, gives a crisp, succinct update on changes in laws brought about by actions of legislature, government, and courts. Each Connect will be relevant for corporates and would not take more than 5 minutes to read.

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State’s Inherent Power to Blacklist

Reading Time: 2 minutes

This Connect provides a brief overview of the Patna High Court’s judgment in the Gupta Power case, in which it reaffirmed that state instrumentalities possess an inherent executive power to blacklist contractors even in the absence of express provisions in a tender or contract.

Jun 22, 2026

Indefinite Suspension Impermissible

Reading Time: 2 minutes

This Connect provides a brief overview of the judgement of the Uttarakhand High Court in the Nagendra Pratap case, where it held that a government servant cannot be kept under suspension for an indefinite period and quashed the suspension order, noting that the disciplinary enquiry was unlikely to conclude in the near future.

Jun 15, 2026

Non-compete Clause in an Employment Agreement Void

Reading Time: 2 minutes

This Connect provides a brief overview of the judgement of the Calcutta High Court in the Parraj Automobiles Private Limited v. Mr. Samiran Sinha case, where it held that as per Section 27 of the Indian Contract Act, 1872, non-compete clause in an employment agreement shall be void, as the same is violative of a person’s right to livelihood. However, provisions pertaining to non-solicitation, non-disclosure and similar confidentiality obligations shall be valid and employers can seek protection of the same through injunctive relief.

Jun 8, 2026

Termination Without Proof of Service of Order Invalid

Reading Time: 3 minutes

This Connect provides a brief overview of the judgement of the Madras High Court in the Cognizant Technology Solutions case where it examined whether termination of an employee without proper communication of the dismissal could be sustained under the Tamil Nadu Shops and Establishments Act, 1947 (“Act”), and held that reinstatement with back wages was justified in cases of abrupt termination of employment.

Jun 1, 2026

Withholding Relieving Letter For Breach

Reading Time: 2 minutes

This Connect provides a brief overview of the judgement of the Bombay High Court in the Bharat Aviation Pvt. Ltd. & Anr. v. Rahul Sudhindra Soni case, where it held that if an employee acts in violation of a valid service bond, then the employer of such employee is not obligated to issue relieving letter and separation certificate to such employee. The HC further reiterated that such withholding of relieving letter shall not be violative of Section 27 of the Indian Contract Act, 1872.

May 25, 2026

No Automatic Permanency of Probationers

Reading Time: 3 minutes

This Connect provides a brief overview of the judgement of Bombay High Court, in the case of Dhanraj R. Mahale wherein it dismissed a Letters Patent Appeal filed by former employees of Kirloskar Oil Engines Limited challenging their termination. The High Court reaffirmed that confirmation in service is not automatic upon the completion of probationary period, even if that period exceeds the timeframe prescribed by the Model Standing Orders, provided the appointment terms require a positive act of confirmation by the employer.

May 18, 2026

Governmental Blacklisting of Contractors

Reading Time: 2 minutes

This Connect provides a brief overview of the Supreme Court’s judgment in A.K.G. Construction case, in which it clarified that blacklisting is a stigmatic measure requiring distinct standards of legality and proportionality from contract termination

May 11, 2026

Abandonment of Service not Voluntary Retirement

Reading Time: 4 minutes

This Connect provides a brief overview of the judgement of the Supreme Court in the K.G. Seshadri case, where it examined and opined on whether an employee could claim pensionary benefits under the State Bank of India Employees’ Pension Fund Rules, 1955 and whether such a claim could be sustained in proceedings under Section 33C(2) of the Industrial Disputes Act, 1947 in the absence of a pre-existing right.

May 4, 2026

Enquiry Invalid In The Absence of Due Process

Reading Time: 2 minutes

This Connect provides a brief overview of the judgement of the Supreme Court in the Jai Prakash Saini v. Managing Director U.P. Cooperative Federation Ltd. & Ors case, where it held that if an employer conducts enquiry without following the principles of natural justice and denies an employee the opportunity of oral hearing, then termination order made on the basis of such enquiry shall stand invalid. Further, such employee shall be entitled to be reinstated in the post with applicable benefits.

Apr 27, 2026

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