The Supreme Court of India on 20 December 2011 ruled that courts can interfere in the case of contractual job if the decision taken by the management is arbitrary. A bench of the apex court, however, said that scope of such judicial review is not all pervasive. It said a writ Court is entitled to judicially review of the action and determine whether there was any illegality, perversity, unreasonableness, unfairness or irrationality that would vitiate the action.
The court passed the order on a petition filed by Grid Corporation of Orissa Ltd challenging the Orissa High Court's order. In its order Orissa high court asked the grid corporation to reinstate one of its employee whose contractual job was terminated.
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