Termination of Chief Human Resources Officer of National Stock Exchange – Maintainability of Writ Petition

On 1.10.2001, the petitioner was appointed as Manager in the National Stock Exchange on the terms and conditions of the letter dated 7.9.2001, including the clause for termination of service on three months’ notice.  He was promoted as Assistant Vice President and Vice-President as also Deputy Head of Regulatory on 1.4.2015. 

On 3.7.2018, the SEBI, based on two complaints, issued show cause notice to the petitioner and advised NSE.  

The allegation was that the petitioner shared confidential information of NSE with his wife who was Director in another company and thus, committed breach of confidentiality and compromised the securities market integrity.

However, in view of the significant changes in various functions of the NSE, there was no particular role or responsibility for the petitioner in view of the changes of business and regulatory requirements.   In this background, the NSE decided to terminate the services of the petitioner vide termination letter dated 24.7.2023.

HELD that the rights claimed by the aggrieved party are purely of a private character.   A party who acquiesces and accepts the terms and conditions of appointment cannot turn around and cry foul and challenge the order of termination. The petitioner who himself demanded salary and other service linked benefits, accepted the payment as full and final settlement, cannot turn around and challenge the letter of his disengagement from service.  Nowhere in the entire writ pleadings, there is even a whisper to controvert the facts and circumstances narrated in the termination letter.  The petitioner does not challenge the factual matrix.

Acceptance of Settlement and Lack of Factual Challenge weakens the petitioner’s termination case against NSE

Bombay HC on NSE Officer’s Challenge – Termination Accepted, Writ Rejected

Bombay HC on NSE’s Manager Writ – Contractual Termination, Not Constitutional Violation