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[Cites 6, Cited by 91]

Supreme Court of India

R.R. Verma And Ors vs Union Of India And Ors on 11 April, 1980

Equivalent citations: 1980 AIR 1461, 1980 SCR (3) 478, AIR 1980 SUPREME COURT 1461, 1980 LAB. I. C. 749, 1980 UJ (SC) 627, (1980) 2 LABLJ 152, 1980 SCC (L&S) 423, 1980 (3) SCC 402, (1980) 2 SERVLR 335

Author: O. Chinnappa Reddy

Bench: O. Chinnappa Reddy, V.R. Krishnaiyer

           PETITIONER:
R.R. VERMA AND ORS.

	Vs.

RESPONDENT:
UNION OF INDIA AND ORS.

DATE OF JUDGMENT11/04/1980

BENCH:
REDDY, O. CHINNAPPA (J)
BENCH:
REDDY, O. CHINNAPPA (J)
KRISHNAIYER, V.R.

CITATION:
 1980 AIR 1461		  1980 SCR  (3) 478
 1980 SCC  (3) 402
 CITATOR INFO :
 RF	    1988 SC 535	 (38)


ACT:
     Constitution of  India, 1950, Article 133-Writ Petition
dismissed as  infructuous-Grant of  Certificate of  fitness,
propriety of.
     All India	Services  (Conditions  of  Service-Residuary
matters)  Rules,   1960,  whether   offends  Article  14  of
Constitution, as  conferring arbitrary and uncanalised power
upon the  Central Government to grant relaxation whenever it
pleased to do so.
     Power to  Review its  earlier  orders  by	the  Central
Government when	 such a	    power of review is not expressly
conferred by the rules.



HEADNOTE:
     One Sri  Ahluwalia a senior member of the Indian Police
Service sought	to quash  the decision of the Union of India
dated 26-6-1976	 whereby his  year of allotment was fixed as
1965. When the Writ Petition of Sri Ahluwalia was pending in
the High  Court of Himachal Pradesh, some of the respondents
in that	 Writ  Petition	 and  one  R.  R.  Verma-all  direct
recruits, choose  to file  a Writ Petition in the Delhi High
Court questioning  the notice  dated June  29, 1973  calling
upon them  to submit  representations against  the  year  of
allotment proposed  to be  allotted to M/s. Sahney, Dhaliwal
and Ahluwalia.	After the  Writ Petition  of  Ahluwalia	 was
allowed, and  after the	 Central Government passed the order
dated July 27, 1979, pursuant to the direction issued by the
High Court  of Himachal	 Pradesh to  Union of India to refix
the seniority  and year	 of allotment  to Sri Ahluwalia, the
Delhi High  Court dismissed  the Writ  Petition filed by the
direct recruits	 as infructuous.  The  High  Court,  however
granted a  certificate of  fitness to  appeal to  this Court
under Article 133 of the Constitution.
     Dismissing the appeal, the Court
^
     HELD: 1.  The Writ	 Petition having  been dismissed  as
infructuous it	is not	proper on the part of the High Court
to grant  a certificate	 of fitness under Article 133 of the
Constitution. [480G-H]
     2. Rule  3 of  the All  India Services  (Conditions  of
Service-residuary matters)  Rules,  1960  is  couched  in  a
language suggestive  of near-autocratic power reminiscent of
"bad old days" of the Imperial Raj but, the rule is not ment
to vest	 the Central Government with power to pass any order
they like with a view to promote the interests of a favoured
Civil servant.	It is  really meant to relax. In appropriate
cases, the  relentless rigour of a mechanical application of
the rules,  so that  civil servants  may not be subjected to
undue and  undeserved hardship.	 Sufficient guidance  can be
had from  the very  rule and  from the scheme of the various
statutory provisions  dealing with the conditions of service
of Members of the All India Service. [481G-H, 482A-B]
     3. Rule 3 is not unconstitutional on the ground that it
vests an  unfettered discretion in the Government. Section 3
of the All India Services Act enables
479
the Central  Government in consultation with the Governments
of the	States concerned to make rules for the regulation of
recruitment,  and  the	conditions  of	service	 of  persons
appointed to  an All  India Service.  Pursuant to  the power
given by Section 3 of the All India Services Act the Central
Government has	made innumerable  sets of rules, some common
to all the All India Services and some applicable separately
to each	 of the	 All India  Services. The All India Services
(Leave) Rules,	the All	 India Services (Conduct) Rules, the
All India  Services (Discipline	 and Appeal)  Rules, the all
India Services	(Travelling Allowance)	Rules, and  the	 All
India Services	(Conditions  of	 Service-residuary  matters)
Rules are  examples of rules made under Section 3 of the All
India Services	Act which  are common  to all  the All India
Services. The  Indian  Police  Service	(Cadre)	 Rules,	 the
Indian Police Service (Recruitment) Rules, the Indian Police
Service	 (Probation)   Rules,  the   Indian  Police  Service
(Regulation of	Seniority) Rules  are examples of rules made
under section  3 of the All India Services Act applicable to
a single  All  India  Service,	namely,	 the  Indian  Police
Service. The rules deal with countless matters which concern
a civil	 servant, such	as creation  of cadre,	fixation  of
Cadre Strength,	 recruitment, seniority,  promotion,  leave,
allowances, conduct,  discipline and  appeal, and  a host of
such other  matters. The  golden thread,  which runs through
the entire complex fabric or rules is the securing of honest
and competent  civil servants.	Integrity and efficiency are
the hall  marks of  any Civil  service anywhere and they are
what are  contemplated and  aimed at  by the  wide range  of
rules. The  interest to	 be  served  is	 always	 the  public
interest and  not individual  interest. Public	interest, in
the matter  of the  conditions of service of civil servants,
is  best   served  by	rules  which  are  directed  towards
efficiency and integrity. [482B-G & 483D]
     Now very wide as the range covered by the rules is, the
rules  can  never  be  exhaustive.  Unforeseen	and  complex
situations often  arise. Very often it is found that all too
strict application of a rule works undue hardship on a civil
servant.  resulting   in  injustice  and  inequity,  causing
disappointment and  frustration to  the	 civil	servant	 and
finally leading	 to the	 defeat of the very objects aimed at
by the	rules  namely  efficiency  and	integrity  of  civil
servants. Hence	 it is that the Central Government is vested
with a	reserve power  under rule  3 to deal with unforeseen
and unpredictable  situations,	and  to	 relieve  the  civil
servants from  the infliction  of undue	 hardship and  to do
justice and  equity. It	 does  not  mean  that	the  Central
Government is free to do what they like, regardless of right
or wrong; nor does it mean that the  Courts are powerless to
correct them.  The Central  Government is  bound to exercise
the power in the public interest with a view to secure civil
servants of efficiency and integrity, and when and only when
undue hardship	is caused  by the  application of the rules,
the power  to relax  is	 to  be	 exercised  in	a  just	 and
equitable manner  but, again,  only to	the extent necessary
for so	dealing with  the case Moreover, the exercise of the
power of  relaxation like  all other  administrative  action
affecting rights of parties is subject to judicial review on
grounds now well known. [482G-H, 483A-C]
     4. It is not correct to say that the principle that the
power  to   review  must  be  conferred	 by  statute  either
specifically or	 by necessary  implication is  applicable to
decisions purely  of an administrative nature. To extend the
principle to pure administrative decisions would indeed lead
to untoward and startling re-
480
sults. Surely,	any Government	must be	 free to  alter	 its
policy or  its decision	 in administrative  matters. If they
are to	carry on  their daily  administration they cannot be
hide-bound  by	 the  rules  and  restrictions	of  judicial
procedure though  of course  they  are	bound  to  obey	 all
statutory requirements	and also  observe the  principles of
natural justice	 where rights  of parties  may be  affected.
Again,	if   administrative  decisions	 are  reviewed,	 the
decisions taken	 after review are subject to judicial review
on all	grounds on  which an  administrative decision may be
questioned in a Court. [483F-H, 484A]
     Patel Narshi  Thakershi and  Ors.	v.  Pradvamunsinghji
Arjunsinghji, AIR 1970 SC 1273; D. N. Roy and S. K. Banerjee
and Ors. v. State of Bihar and Ors., [1971] 2 S.C.R. 522 and
State of  Assam and Anr. v. J. N. Roy Biswas [1976] 2 S.C.R.
128, distinguished.



JUDGMENT:

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2686 of 1979.

From the Judgment and order dated 27-8-1979 of the Delhi High Court in Civil Writ Petition No. 844/78.

R.K. Garg and C. M. Nair for the Appellant.

H.S. Marwah for the Respondent No. 6.

V.M. Tarkunde and P. P. Juneja for Respondent No. 7. Lal Narain Sinha Att. Genl., Abdul Khader and Miss A. Subhashini for the Union of India.

The Judgment of the Court was delivered by CHINNAPPA REDDY, J.-The judgment in this appeal is really an appendix to the judgment pronounced by us in Civil Appeal No. 2112 of 1979. The relevant facts may be gathered from that judgment. The further events requiring to be mentioned are these: While the Writ Petition filed by Ahluwalia in the High Court of Himachal Pradesh was pending, some of the respondents to the Writ Petition and one R. R. Verma all direct recruits, chose to file a Writ Petition in the Delhi High Court questioning the notice dated June 29, 1979, calling upon them to submit representations against the year of allotment proposed to be allotted to Sahney, Dhaliwal and Ahluwalia. After the Writ Petition of Ahluwalia was allowed, and after the Central Government passed the order dated July 27, 1979, pursuant to the direction issued by the High Court of Himachal Pradesh, the Delhi High Court dismissed the Writ Petition filed by the direct recruits as infructuous. The High Court, however, granted a certificate of fitness to appeal to this Court under Article 133 of the Constitution. Therefore, this appeal. The Writ Petition having been dismissed as infructuous we do not see how a certificate under Article 133 could have been granted. But, we do not want to dismiss the appeal on that preliminary ground. Shri R. K. Garg, learned counsel for the appel-

481

lants challenged the order of the Central Government dated July 27, 1979 on three grounds: (1) Rule 3 of the All India Services (Conditions of Service-residuary matters) Rules, offended Article 14 of the Constitution and was ultra-vires as it conferred arbitrary and uncanalised power upon the Central Government to grant relaxation whenever it pleased it to do so. (2) The discretion to relax the rules was wrongly exercised in the present case. (3) The Central Government was powerless to review its earlier orders as such a power of review was not expressly conferred by the rules.

The second question has already been considered by us in Civil Appeal No. 2112 of 1979 and we have held that this was a fit case for the exercise of the power of the Central Government to relax the rules.

The first question is about the Constitutional validity of rule 3 of the All India Services (Conditions of Service- residuary matters) Rules 1960. Rule 3 is as follows:

"3. Power to relax rules and regulations in certain cases-Where the Central Government is satisfied that the operation of-
(i) any rule made or deemed to have been made under the All India Services Act, 1951 (61 of 1951), or
(ii) any regulation made under any such rule, regulating the conditions of service of persons appointed to an All India Service causes undue hardship in any particular case, it may, be order, dispense with or relax the requirements of that rule or regulation, as the case may be, to such extent and subject to such exceptions and conditions, as it may consider necessary for dealing with the case in a just and equitable manner".

The submission of Shri Garg was that the rule conferred upon the Central Government absolute and arbitrary discretion, a discretion left entirely to the satisfaction of the Government, Government with no prescribed objective standards or guidelines. It is true that the rule is couched in a language suggestive of near-autocratic power reminiscent of "bad old days" of the Imperial Raj but, we have no doubt that the rule is not meant to vest the Central Government with power to pass any order they like with a view to promote the interests 482 of a favoured Civil servant. It is really meant to relax, in appropriate cases, the relentless rigour of a mechanical application of the rules, so that civil servants may not be subjected to undue and undeserved hardship. Sufficient guidance can be had from the very rule and from the scheme of the various statutory provisions dealing with the conditions of service of Members of the All India Service.

Section 3 of the All India Services Act enables the Central Government in consultation with the Governments of the States concerned to make rules for the regulation of recruitment, and the conditions of service of persons appointed to an All India Service. Pursuant to the power given by Section 3 of the All India Services Act the Central Government has made innumerable sets of rules, some common to all the All India Services and some applicable separately to each of the All India Services. The All India Services (Leave) Rules, the All India Services (Conduct) Rules, the All India Services (Discipline and Appeal) Rules, the All India Services (Travelling Allowance) Rules, and the All India Services (Conditions of Service-residuary matters) Rules are examples of rules made under Section 3 of the All India Services Act which are common to all the All India Services. The Indian Police Service (Cadre) Rules, the Indian Police Service (Recruitment) Rules, the Indian Police Service (Probation) Rules, the Indian Police Service (Regulation of Seniority) Rule are examples of rules made under section 3 of the All India Services Act applicable to a single All India Service namely, the Indian Police Service. The rules, as may be seen, deal with countless matters which concern a civil servant, such as creation of cadres, fixation of Cadre Strength, recruitment, seniority, promotion, leave, allowances, conduct, discipline and appeal, and a host of such other matters. The golden thread, if we may so call it, which runs through the entire complex fabric of rules is the securing of honest and competent civil servants. Integrity and efficiency are the hall marks of any civil service anywhere and they are what are contemplated and aimed at by the wide range of rules. The interest to be served is always the public interest and not individual interest. Public interest, in the matter of the conditions of service of civil servants, is best served by rules which are directed towards efficiency and integrity. Now, very wide as the range covered by the rules is, the rules can never be exhaustive. Unforeseen and complex situations often arise as will be obvious even from a bare perusal of the cases reported in the Law Journals arising out of "service controversies". Very often it is found that an all too strict application of a rule works undue hardship on a civil servant, resulting in injustice and inequity, causing disappointment and frustration to the civil 483 servant and finally leading to the defeat of the very object aimed at by the rules namely efficiency and integrity of civil servants. Hence it is that the Central Government is vested with a reserve power under rule 3 to deal with unforeseen and unpredictable situations, and to relieve the civil servants from the infliction of undue hardship and to do justice and equity. It does not mean that the Central Government is free to do what they like, regardless of right or wrong; nor does it mean that the Courts are powerless to correct them. The Central Government is bound to exercise the power in the public interest with a view to secure civil servants of efficiency and integrity, and when and only when undue hardship is caused by the application of the rules, the power to relax is to be exercised in a just and equitable manner but, again, only to the extent necessary for so dealing with the case. We do not have to add that the exercise of the power of relaxation like all other administrative action affecting rights of parties is subject to judicial review on grounds now well known. Viewed in this light we do not think that Rule 3 is unconstitutional on the ground that it vests an unfettered discretion in the Government.

The last point raised by Shri Garg was that the Central Government had no power to review its earlier orders as the rules do not vest the Government with any such power. Shri Garg relied on certain decisions of this Court in support of his submission : Patel Narshi Thakershi & Ors. v. Pradvamunsinghji Arjunsinghji, D. N. Roy and S. K. Bannerjee & Ors. v. State of Bihar & Ors., and State of Assam & Anr. v. J. N. Roy Biswas. All the cases cited by Shri Garg are cases where the Government was exercising quasi judicial powers vested in them by statute. We do not think that the principle that the power to review must be conferred by statute either specifically or by necessary implication is applicable to decisions purely of an administrative nature. To extend the principle to pure administrative decisions would indeed lead to untoward and startling results. Surely, any Government must be free to alter policy or its decision in administrative matters. If they are to carry on its their daily administration they cannot be hide-bound by the rules and restrictions of judicial procedure though of course they are bound to obey all statutory requirements and also observe the principles of natural justice where rights of parties may be affected. Here again, we emphasise that if administrative decisions are reviewed, the decisions 484 taken after review are subject to judicial review on all grounds on which an administrative decision may be questioned in a Court. We see no force in this submission of the learned counsel. The appeal is, therefore, dismissed.

S.R.					   Appeal dismissed.
485