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Clause 23 of the Scheme, 2007 provides for termination of contract, according to which, if a Financial Services Executive is unable to procure the stipulated minimum New Business in two successive quarters, then contract is liable to be terminated forthwith without any notice. It further provides that if the Financial Services Executive commits any violation of any statutory provisions or is found to be indulging in activities detrimental to the interest of the Corporation, his contract is again liable to be terminated, provided that before termination of contract, in this situation, a Show Cause Notice shall be issued. It further provides that engagement of Financial Services Executive shall remain suspended during the period of issuance of Show Cause Notice and final decision on the reply thereof. Clause 23 of the Scheme, 2007 is quoted herein below:

23.Termination of Contract: In case a Financial Services Executive dose not procure the stipulated minimum New Business in two successive quarters, then his/her contract shall be terminated forthwith without giving any notice to him/her. The Contract shall also be liable for being terminated, if the Financial Services Executive commits breach of any Statutory Provisions or is found to be indulging in activities detrimental to the interests of the Corporation provided however that, before termination of contract for reasons other than for minimum business parameters as stipulated elsewhere in the scheme, a Show Cause Notice shall be issued to the FSE. The engagement of FSE shall remain suspended during the period of issuance of Show Cause Notice and final decision on the reply thereof. The Sr./Divisional Manager-in-charge of the Division shall be the Competent Authority for termination of contract on any of the grounds mentioned herein."

emphasis supplied Thus, termination of contract of appointment of a Financial Services Executive under Clause 23 of the Scheme can take place in two circumstances. Firstly, in case the Executive fails to procure the stipulated minimum New Business in two successive quarters and secondly, in case such an Executive is found to have acted in breach of any statutory provision or he is found to have indulged in activities detrimental to the interest of the Corporation. In the first circumstance, where the Executive fails to procure the stipulated minimum New Business in two successive quarters, for terminating the contract of appointment, Clause 23 does not stipulate any notice to be given. However, in case the contract of appointment is terminated in a situation where the Executive is found to have acted in breach of any statutory provision or is found to have indulged in any activity which is detrimental to the interest of the Corporation, a Show Cause Notice is required to be issued and the reply is also to be solicited from him. Thus, in the former case, no Show Cause Notice or enquiry has been envisaged in Clause 23 of the Scheme, 2007, whereas in the latter case the issuance of Show Cause Notice and soliciting the reply from the erring Financial Services Executive has been prescribed in Clause 23 itself.

3. If Extra Ordinary Leave exceeds 30 days; the contract shall be liable to be terminated.
4. The Sr. Divisional Manager in charge of the Division shall be the Competent Authority for termination of contract on any of the aforesaid grounds."

Thus, the instructions stipulate two situations when no Show Cause Notice or enquiry is required for terminating the contract of appointment and these two situations are (i) where the Executive fails to procure minimum stipulated New Business and (ii) his Extra Ordinary Leave exceeds 30 days. So far as termination of service contract in case of breach of any statutory provision or in case of involvement of the appointee in activities detrimental to the interest of Corporation is concerned, Clause XXI of the instructions also prescribes issuance of Show Cause Notice. It further prescribes that engagement of the Executive shall remain suspended during issuance of Show Cause Notice and final decision on the reply thereof.