W.P.R.P. Devanagala vs Sarvodaya Economic Enterprises Development Services (Guarantee) Ltd – SC APPEAL: 201/2017-2023

Brief
In the case between W.P.R.P. Devanagala (Applicant-Appellant-Respondent) and Sarvodaya Economic Enterprises Development Services (Guarantee) Ltd (Respondent-Respondent-Appellant), the court addressed the issue of whether the termination of employment was justified given the employee’s admitted negligence and the employer’s resultant loss of confidence. It was held that the failure of the employee to fulfill duties constituted a serious breach of trust, resulting in a justified loss of confidence and warranting termination. The principle reaffirmed is that, in positions involving fiduciary responsibility, loss of confidence due to proven negligence precludes entitlement to arrears or compensation for wrongful termination. Reliance was placed on established legal standards regarding lo