Legal Document View

Unlock Advanced Research with PRISMAI

- Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc - ...
Upgrade to Premium
[Cites 27, Cited by 0]

Gujarat High Court

Kantibhai Ishwardas Patel vs Palanpur Municipality Through Chief ... on 2 March, 2016

Author: Vipul M. Pancholi

Bench: Vipul M. Pancholi

                  C/SCA/5241/2000                                            JUDGMENT



                    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                       SPECIAL CIVIL APPLICATION NO. 5241 of 2000



         FOR APPROVAL AND SIGNATURE:



         HONOURABLE MR.JUSTICE VIPUL M. PANCHOLI

         ==========================================================

         1     Whether Reporters of Local Papers may be allowed
               to see the judgment ?

         2     To be referred to the Reporter or not ?

         3     Whether their Lordships wish to see the fair copy of
               the judgment ?

         4     Whether this case involves a substantial question of
               law as to the interpretation of the Constitution of
               India or any order made thereunder ?

         ==========================================================
               KANTIBHAI ISHWARDAS PATEL, SINCE DECD. THROUGH LEGAL
                                 HEIRS....Petitioner(s)
                                        Versus
                  PALANPUR MUNICIPALITY THROUGH CHIEF OFFICER, &
                                  2....Respondent(s)
         ==========================================================
         Appearance:
         DECESED LITIGANT, ADVOCATE for the Petitioner(s) No. 1
         MR BS PATEL, ADVOCATE for the Petitioner(s) No. 1.1 - 1.4
         MR HS MUNSHAW, ADVOCATE for the Respondent(s) No. 1 - 2
         MR JM BAROT, ADVOCATE for the Respondent(s) No. 3
         ==========================================================

             CORAM: HONOURABLE MR.JUSTICE VIPUL M. PANCHOLI

                                     Date : 02/03/2016




                                          Page 1 of 41

HC-NIC                                  Page 1 of 41     Created On Sun Mar 13 22:36:04 IST 2016
                 C/SCA/5241/2000                                          JUDGMENT



                                  ORAL JUDGMENT

1. By way of this petition, petitioner has prayed to  quash and set aside the order dated 20.05.2000 passed  by   the   respondent   authority,   by   which,   order   of  compulsory retirement of the petitioner was passed.

2. Brief facts for deciding the controversy involved  in the present petition are as under:

2.1 Petitioner was appointed as Food Inspector by  the respondent Municipality on 16.05.1974.  It is the  case of the petitioner that he was performing his duty  with honesty and sincerity and therefore, he had been  awarded with various certificates in the past by the  respondent Municipality and because of the efficient  work of the petitioner.  Criminal case was registered  against   the   petitioner   for   the   offense   punishable  under the Prevention of Corruption Act.  The said case  was registered as special case No.38 of 1997. However,  by   an   order   dated   31.03.1999,   petitioner   has   been  acquitted   by   the   Special   Judge,   Banaskantha   at  Palanpur.     The   Criminal   Appeal   No.709   of   1999  preferred against the said order by the State was also  dismissed by this Court at the admission stage.
Page 2 of 41

HC-NIC Page 2 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT 2.2 It is alleged by the petitioner that respondent  No.2 who was elected as MLA on the ticket of party in  power   and   respondent   No.3   was   also   elected   as  Municipal   Councilor   on   the  ticket   of   the   same   party  and because of the political pressure of respondents  No.2   and   3,   the   respondent   No.1   has   passed   the  impugned order.

2.3 It  is  the  case  of  the  petitioner  that   before  the impugned order was passed, petitioner was placed  under   suspension   by   an   order   dated   20.03.1999.  Petitioner   therefore   challenged   the   said   order   by  filing   Special   Civil   Application   No.2106   of   1999.  During the pendency of the said petition, the order of  suspension   was   withdrawn   by   the   respondent   No.1   on  03.06.1999.

2.4 Petitioner   has   contended   that   the   respondent  No.3   demanded   a   bribe   of   Rs.10,000/­   from   the  petitioner.  Petitioner has paid Rs.3,000/­ to him and  thereafter   petitioner   approached   before   the   ACB,  Palanpur.     FIR   came   to   be   registered   against   the  respondent No.3 and he was caught red­handed with the  remaining amount of bribe. Respondent No.3 thereafter  Page 3 of 41 HC-NIC Page 3 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT made   an   assault   on   the   petitioner   and   therefore  petitioner   filed   another   FIR   for   the   offenses  punishable under Sections 323504506(2)341352  and   114   of   Indian  Penal  Code   against   the   respondent  No.3.     Said   FIR   came   to   be   lodged   on   10.04.2000.  Petitioner   thereafter   made   representation   to   Police  Inspector of ACB as well as Director of Municipalities  and raised an apprehension that petitioner is likely  to   be   victimized   by   the   respondent   No.3   and   his  associates.   Thus, it is the case of the petitioner  that   the   impugned   order   was   thereafter   passed   on  20.05.2000 by the respondent No.1 at the instance of  respondents No.2 and 3 and therefore, the said order  is passed with mala­fide intention.  Present petition  is therefore filed.

3. Heard   learned   advocate   Mr.Chirag   Patel   for   the  petitioner   and   learned   advocate   Mr.H.S.Munshaw   for  respondents No.1 and 2.

4. Learned   advocate   Mr.Patel   mainly   contended   that  the   impugned   order   of   compulsory   retirement   of   the  petitioner was passed by the respondent Municipality  with mala­fide intention and the same is passed at the  Page 4 of 41 HC-NIC Page 4 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT instance of respondents No.2 and 3 and therefore, the  said order be quashed and set aside.

5. He further submitted that before passing an order  of compulsory retirement, no notice was issued to the  petitioner,   nor   any   opportunity   of   being   heard   was  given   to   him   and   therefore,   the   respondent  Municipality   has   violated   principles   of   natural  justice   and   therefore   also,   the   impugned   order   be  quashed and set aside.  Thereafter, he contended that  the   respondent   Municipality   has   taken   into  consideration   irrelevant   material   while   passing   the  impugned   order   and   stated   incorrect   facts   that  departmental inquiry is pending against the petitioner  since   last   10   years.     It   is   also   observed   in   the  impugned   order   that   if   the   departmental   inquiry   is  conducted against the petitioner, there would be delay  in concluding the said inquiry and the same would also  affect   adversely   to   the   citizens   of   Nagarpalika.  Though   notices   were   given   time   and   again   to   the  petitioner,   he   has   not   improved   his   conduct   and  therefore, conducting departmental inquiry against the  petitioner   would   not   be   practicable   and   reasonable.  Thus, instead of conducting the departmental inquiry,  Page 5 of 41 HC-NIC Page 5 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT the   respondent   Municipality   has   passed   the   impugned  order   of   compulsory   retirement   of   the   petitioner.  Hence, on this ground also, the same be quashed and  set aside.   

6. Mr.Patel   has   thereafter   referred   to   provision  contained in Section 48 of the Gujarat Municipalities  Act and thereafter also referred to Rule 161 of Bombay  Civil Service Rules (hereinafter referred to as 'BCSR'  for   convenience)   and   contended   that   no   officer   or  servant shall be reduced to a lower post or removed or  dismissed from service and no punishment involving any  monetary loss shall be imposed on him under Section 48  unless he has been given a reasonable opportunity of  showing   cause   against   such   reduction,   removal,  dismissal   or   punishment.     As   per   Rule   161   of   BCSR  before   passing   an   order   of   compulsory   retirement,  three months notice in writing or three months pay and  allowances in lieu of such notice is required to be  given   by   the   Appointing   Authority   to   the   concerned  employee.  He submitted that in the present case, such  notice   was   not   issued   at   all   and   therefore,   the  impugned order be quashed and set aside.





                                      Page 6 of 41

HC-NIC                              Page 6 of 41     Created On Sun Mar 13 22:36:04 IST 2016
                     C/SCA/5241/2000                                          JUDGMENT



7. Mr.Patel has thereafter placed reliance upon the  following decisions:

• In   case   of   Rajesh   Gupta   v.   State   of   Jammu   and  Kashmir and others, reported in (2013) 3 SCC 514 • In case of Girdharsinh Ramsinh Parmar v. Deputy  Inspector   General   of   Police,   Junagadh,   reported  in 1988 (2) GLR 1095 • In   case   of   H.A.Mehta   v.   State   of   Gujarat   and  Another, reported in 1993 (1) GLH 899 • In   case   of   J   M   Mehta   v.   State   of   Gujarat,  reported in 1991 (1) GLR 619 • In   case   of   Valiben   Jethabhai   Bhanji   v.   Patan  Municipality, reported in 2006 (3) GLR 2278

8. On   the   other   hand,   learned   advocate   Mr.Munshaw  mainly   contended   that   number   of   complaints   were  received   against   the   petitioner   by   the   respondent  Municipality   and   therefore,   the   respondent  Municipality   after   considering   the   entire   service  record of the petitioner, passed the impugned order in  public interest.  Learned advocate has referred to the  Page 7 of 41 HC-NIC Page 7 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT averments   made   in   the   affidavit   in   reply   filed   on  behalf of respondent No.2, which is produced at page  118 of the compilation and after referring to the said  averments, he submitted that while passing the order  of compulsory retirement, principle of natural justice  is not required to be observed.   Order of compulsory  retirement is not a stigma or punitive in nature, but  the same was passed in public interest and therefore  this   Court   may   not   interfere   with   the   same   while  exercising   powers   under   Article   226   of   the  Constitution of India.  He further contended that the  scope   of   judicial   review   is   very   limited   and  therefore, petition be dismissed.  

9. Mr.Munshaw   has   thereafter   placed   reliance   upon  the following decisions:

• In   case   of   National   Aviation   Company   of   India  Limited v. S.M.K. Khan, reported in (2009) 5 SCC  732 • In case of   R.C.Chandel v. High Court of Madhya  Pradesh and Another, reported in (2012) 8 SCC 58 • In   case   of   Rajasthan   State   Road   Transport  Page 8 of 41 HC-NIC Page 8 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT Corporation   and   others   v.   Babu   Lal   Jangir,  reported in (2013) 10 SCC 551

10. I   have   considered   the   submissions   canvassed   on  behalf of learned advocates appearing for the parties.  I   have   also   gone   through   the   material   produced   on  record   and   the   provisions   of   law   and   the   decisions  relied upon by the learned advocates for the parties.

11. The issue which is required to be decided in this  petition is whether this Court can interfere with the  order of compulsory retirement while exercising powers  under Article 226 of the Constitution of India or not.  When   such   powers   can   be   exercised   and   what   is   the  scope of judicial review.

12. For   deciding   the   aforesaid   issue,   provision   of  law contained in the Gujarat Municipalities Act, 1963  as   well   as   Bombay   Civil   Service   Rules,   1959   are  required to be considered.

13. Section   48   of   the   Gujarat   Municipalities   Act  provides as under:

48.   Imposition   of   penalties­(1)   Without  prejudice to the provisions of any law for the  time being in force, and subject to any rules  made   under   section   47A,   the   following  Page 9 of 41 HC-NIC Page 9 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT penalties may, for good and sufficient reasons  be   imposed   upon   any   officer   or   servant   of   a  municipality, namely:­ 
(i) censure,
(ii)   withholding   increments   or   promotion  including stoppage at an efficiency bar;

(iii) reduction to a lower post on a fixed pay or  a time­scale or to a lower stage in a time­scale; 

(iv) recovery from his pay of the whole or part  of any pecuniary loss caused to the municipality  by negligence or breach of orders;

(v) fine;

(vi) suspension;

(vii)   removal   from   the   service,   which   does   not  disqualify him from future employment; 

(viii) dismissal from service, which ordinarily  disqualifies him from future employment; (2) Any   of   the   penalties   mentioned   in   sub­ section   (1)   may   be   imposed   on   an   officer   or  servant   of   a   municipality   by   the   authority  competent to make the appointment of such officer  or servant.

(3) No officer or servant shall be reduced to a  lower post or removed or dismissed from service  and   no   punishment   involving   any   monetary   loss  shall be imposed on him under this section unless  he   has   been   given   a   reasonable   opportunity   of  showing   cause   against   such   reduction,   removal,  dismissal or punishment: 

Provided that this sub­section shall not apply­ 
(a)   where   a   person   is   reduced,   removed   or  Page 10 of 41 HC-NIC Page 10 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT dismissed   or   punished   on   the   ground   of  conduct which has led to his conviction or a  criminal charge, or 
(b)   where   the   competent   authority   is   satisfied  that, for reasons to be recorded in writing  by   such   authority,   it   is   not   reasonably  practicable   to   give   to   such   person   an  opportunity to show cause.

14. Rule   161   of  Bombay   Civil   Service   Rules,   1959  provides as under:

"161. (1)(a). Except as otherwise provided in the  other   clauses   of   this   rule,   the   date   of  compulsory   retirement   of   a   Government   servant  other   than   a   Class   IV   servant,   is   the   date   on  which he attains the age of 58 years. 
Provided ­
(i) Deleted
(ii) Deleted
(iii)   He   may   be   retained   in   service   after   the  date   of   compulsory   retirement   only   with   the  previous sanction of Government on public grounds  which must be recorded in writing (Appellate   Authority)   Notwithstanding   anything  contained in clause (a).­
(i) An  appointing   authority  shall,   if   he   is   of  the opinion that it is in the public interest so  to   do,   have   the   absolute   right   to   retire   any  Government servant to whom clause (a) applies by  giving him notice of not less than three months  in writing or three months pay and allowances in  lieu of such notice:
(1) if he is in Class I or Class II service  or   post   or   in   any   unclassified   gazetted  post,   the   age   limit   for   the   purpose   of  Page 11 of 41 HC-NIC Page 11 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT direct   recruitment   to   which   is   below   35  years,   on   or   after   the   date   on   which   he  attains the age of 50 years, and (2) if he is in any other service or post,  the   age   limit   for   the   purpose   of   direct  recruitment  to  which  is  below  40  years,  on  or   after   the   date   on   which   he   attains   the  age of 55 years;
(ii) any   Government   servant   to   whom   clause   (a)  applies   may,   by   giving   notice   of   not   less   than  three   months,   in   writing   to   the   Appellate  Authority,   retire   from   service   after   he   has  attained the age of 50 years, if he is in Class I  or   Class   II   service   or   post   or   in   any  unclassified gazetted post, the age limit for the  purpose of recruitment to which is below 35 year  and in any other case, after he has attained the  age of 55 years ..."

15. In   case   of   R.C.Chandel   (supra),   relied   upon   by  the learned advocate for the respondent, the Hon'ble  Supreme Court observed and held as under:

"27.   In   Rajendra   Singh   Verma2   ,  this   Court  restated   what   has   been   stated   in   earlier  decisions   that   compulsory   retirement   from  service is neither dismissal nor removal; it  differs from both of them, in that it is not   a form of punishment prescribed by the rules  and involves no penal consequences inasmuch   as the person retired is entitled to pension   and other retiral benefits proportionate to   the   period   of   service   standing   to   his   credit.   An   order   of   compulsory   retirement  being   not   an   order   of   adverse   consequence,  principles   of   natural   justice   have   no  application.   This   Court   took   into  consideration a long line of cases including  State of U.P. and another v. Bihari Lal[7],  Union of India v. V.P. Seth  and another[8],  Baikuntha   Nath   Das   and   another   v.   Chief  Page 12 of 41 HC-NIC Page 12 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT District   Medical   Officer,   Baripada   and  another[9],  Baidyanath Mahapatra v. State of  Orissa  and   another[10],  Union   of   India   v.  Col.  J.N.   Sinha   and   another[11],   All   India  Judges'   Association   (1)   v.  Union   of   India  and   others[12]   and   All   India   Judges'   Association   (2)6   and   culled   out   the   legal  position   in   paragraph   183   (Pg.   no.   75)   of  the Report as follows: 
"183. It is well settled by a catena of   decisions   of   this   Court   that   while   considering the case of an officer as to   whether   he   should   be   continued   in   service   or   compulsorily   retired,   his   entire service record up to that date on   which   consideration   is   made   has   to   be   taken   into   account.   What   weight   should   be   attached   to   earlier   entries   as   compared   to   recent   entries   is   a   matter   of evaluation, but there is no manner of   doubt   that   consideration   has   to   be   of   the entire service record. The fact that   an   officer,   after   an   earlier   adverse   entry,   was   promoted   does   not   wipe   out   earlier   adverse   entry   at   all.   It   would   be wrong to contend that merely for the   reason   that   after   an   earlier   adverse   entry   an   officer   was   promoted   that   by   itself would preclude the authority from   considering   the   earlier   adverse   entry.   When   the   law   says   that   the   entire   service   record   has   to   be   taken   into   consideration,   the   earlier   adverse   entry, which forms a part of the service   record,   would   also   be   relevant   irrespective   of   the   fact   whether   the   officer concerned was promoted to higher   position   or   whether   he   was   granted   certain benefits like increments, etc." 

16. In   case   of   National   Aviation   Company   of   India  Limited (supra), relied upon by the learned advocate  for the respondent, the Hon'ble Supreme Court observed  Page 13 of 41 HC-NIC Page 13 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT and held in paragraphs No.13 to 16 as under:

"13. An   order   of   compulsory   retirement   in   pursuance of a rule/regulation which enables  the competent authority to prematurely retire  an employee, on the formation of a bona fide   opinion that continuation of the employee in  service will not benefit the institution or  be   in   the   interest   of   the   institution   (or  will   not   be   in   public   interest   where   the  employee is a government servant), on review  of   the   performance/service   record   of   the  employee,   on   the   employee   attaining   the  specified   age   or   completing   the   specified  period of service, is valid and not open to  challenge.   It   is   neither   a   punishment   nor  considered   to   be   stigmatic.   Where   the  compulsory   retirement,   is   not   by   way   of  punishment for a misconduct, but is an action   taken   in   pursuance   of   a   valid   condition   of  service enabling the employer to prepone the  retirement, the action need not be preceded  by any enquiry and the principles of natural  justice have no application. 
14. The   unsatisfactory   service   of   the  employee   which   may   include   any   persistent  misconduct   or   inefficiency   furnishes   the  background   for   taking   a   decision   that   the  employee has become a dead wood and that he  should   be   retired   compulsorily.   Such  `compulsory   retirement'   is   different   and  distinct from imposition of a punishment of  compulsory retirement (or dismissal/removal)  on a specific charge of misconduct, where the   misconduct is the basis for the punishment.  The difference is on account of two factors: 
firstly,   the   employee   on   account   of  completing   a   particular   age   or   number   of  years of service falls within the zone where  his   performance   calls   for   assessment   as   to   whether   he   is   of   continued   utility   to   the  employer   or   has   become   a   deadwood   or  liability   for   the   employer.   Secondly,   the  record   of   service,   which   may   include   poor  performance,   unsatisfactory   service   or  Page 14 of 41 HC-NIC Page 14 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT incidentally   any   recent   conduct   (which   if  separately   considered   may   constitute   a  misconduct   subject   to   punishment)   when  considered   as   a   whole,   leads   the   Reviewing   Authority to the conclusion that the employee   in   question   is   not   fit   to   be   continued   in   service and not of utility to the employer.  Therefore,   any   incidental   reference   to  unsatisfactory service, or any remarks in the   context   of   explaining   the   reason   for  compulsory   retirement   under   the   relevant  rule, in the letter of compulsory retirement  will   not   be   considered   as   stigmatic,   even  though   read   out   of   context,   they   may   be  capable of being construed as allegations of  misconduct.
15. Any   order   of   compulsory   retirement   in  terms   of   the   rule/regulation   providing   for  such   compulsory   retirement   is   not   open   to  interference unless shown to be malafide or  arbitrary   or   not   based   on   any   background   material   at   all   relating   unsatisfactory  service justifying the premature retirement. 
16. When   an   order   of   compulsory   retirement   purports to be one under the rule/regulation  providing for such premature retirement, the  proper   approach   of   the   court   would   be   to  consider   whether   the   order   is   sustainable  with   reference   to   the   requirements   of   the  relevant rule, rather than examining whether  the   order   could   also   be   construed   as   a  punishment   for   misconduct   ­­   vide   Baikuntha  Nath Das v. Chief District Medical Officer,  Allahabad   Bank   Officers'   Association   v. 

Allahabad Bank, I.K.Mishra v. Union of India,   State of Uttar Pradesh v. Lalsa Ram   and M.  L. Binjolkar vs. State of Madhya Pradesh."

17. Similarly   in   the   case   of     Rajasthan   State   Road  Transport   Corporation   and   others   (supra),   which   has  been   relied   upon   by   learned   advocate   for   the  Page 15 of 41 HC-NIC Page 15 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT respondent, the Hon'ble Supreme Court has observed and  held in paragraphs No.24 to 27 as under:

"24. Having   taken   note   of   the   correct  principles     which     need     to     be  applied,   we   can   safely   conclude   that   the  order of the High Court based solely on the  judgment   in   the   case   of   Brij   Mohan   Singh  Chopra was not correct. The High Court could  not   have   set   aside   the   order   merely   on  the ground that service record pertaining to  the period 1978­90 being old and stale could  not   be   taken   into   consideration   at   all.   As  per   the   law   laid   down   in   the   aforesaid  judgments,     it     is     clear     that     entire  service   record   is   relevant   for   deciding   as  to whether  the  government servant needs to  be eased out prematurely. Of course, at the   same   time,   subsequent   record   is   also  relevant,   and   immediate     past     record,  preceding   the   date   on   which   decision   is   to  be   taken   would   be     of     more   value,   qualitatively.   What  is  to  be  examined  is the "overall performance" on the basis of  "entire   service   record"   to   come   to   the  conclusion   as   to   whether   the   concerned   employee   has   become   a   deadwood   and   it   is  public  interest  to  retire  him  compulsorily.  The Authority must consider and examine the  overall effect of the entries of the officer  concerned   and   not   an   isolated   entry,   as   it  may well be in some cases that in spite of  satisfactory   performance,   the   Authority   may  desire to compulsorily retire an employee in  public   interest,   as   in   the   opinion   of   the  said authority, the post has to be manned by  a   more   efficient   and   dynamic   person   and   if  there   is   sufficient   material   on   record   to  show   that   the   employee   "rendered   himself   a  liability to   the institution", there is no  occasion for the Court to interfere  in  the exercise   of   its   limited   power   of   judicial  review."

25. With this we revert to the facts of the   Page 16 of 41 HC-NIC Page 16 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT present case: In so far as period of 1978­ 1990 is concerned, the respondent was charge  sheeted   in   19   cases.   In   few   cases   he   was   exonerated   and   in   some   other   cases   he   was  given   minor   penalty   like   admonition,  stoppage of pay, annual grade increment for  a   limited   period.   The   gist   of   these  cases is as follows:

|Sl.| Charge|Date |Details of |Date of |Details of | Remarks | |No. |Sheet| |Charges |Order |decision | | | |Sheet | | | | | | |1. |1648 |11.8.1978|Negligent |417/7-2-79 |Exonerated | | | | | |Driving | | | | |2. |798 |25.10.79 |Recovered fare|2783/ |Yearly | | | | | |from 15 |27.8.84 |increment | | | | | |passengers | |stopped and | | | | | |without ticket| |forfeiture of | | | | | | | |salary for | | | | | | | |suspension | | | | | | | |period | | |3. |2314 |20.11.80 |Corruption |3454/ |Stoppage of | | | | | | |22.10.84. |yearly | | | | | | | |increment for | | | | | | | |one year | | |4. |1235 |27.4.83 |Absent from |1708/ |Absolved from | | | | | |duty |7.4.86 |charges | | | | | | | |without | | | | | | | |intimation | | |5. |1035 |31.3.83 |Excess |1709/ |Stoppage of | | | | | |consumption |3.4.86 |one/ two | | | | | | | |increments | | |6. |1754 |13.6.84 |Misbehavior |3453/ |Absolved from | | | | | |with conductor|22.10.84. |charge | | |7. |162 |8.1.85 |Absent from |5123/ |Stoppage of | | | | | |duty without |4.12.85 |yearly | | | | | |intimation | |increment for | | | | | | | |one year | | | | | | | |without | | | | | | | |commutative | | | | | | | |effect and | | | | | | | |forfeiture of | | | | | | | |salar for | | | | | | | |suspension | | | | | | | |period appeal | | | | | | | |No. 3588/ | | | | | | | |29.8.88 | | | | | | | |pending | | |8. |1798 |4.4.85 |Damage to tyre| | | | |9. |2298 |29.4.85 |Absent from |5123/4.12.1|Stoppage of | | | | | |duty without |985 |one increment | | | | | |intimation | |& forfeiture | | | | | | | |of salary for | | | | | | | |suspension | | | | | | | |period | | |10.|3928 |26.2.85 |Vehicle |830/ |Stoppage of | | | | | |accident |5.12.85 |two increments| | | | | | | |without | | | | | | | |commutative | | | | | | | |effect | | |11.|3763 |1.8.90 |Excess |68/ 14.2.94|Order for | | Page 17 of 41 HC-NIC Page 17 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT | | | |consumption of| |recovery and | | | | | |Diesel | |or warning for| | | | | | | |future | | | | | | | |recovered Rs. | | | | | | | |132.60. | | |12.|3090 |30.10.82 |Different | | | | | | | |types of | | | | | | | |complaints | | | | |13.|4669 |30.10.85 |Damage to tyre|11830/ |Stoppage of | | | | | | |5.12.88 |two increments| | | | | | | |without | | | | | | | |commutative | | | | | | | |effect and | | | | | | | |forfeiture of | | | | | | | |salary for the| | | | | | | |suspension | | | | | | | |period. | | |14.|316 |23.1.86 |Bad behavior |4953/ |1. Stoppage of| | | | | | |12.10.87 |one increment.| | | | | | | |Forfeiture of | | | | | | | |salary for the| | | | | | | |suspension | | | | | | | |period. | | | | | | | |2. Less Diesel| | | | | | | |average | | |15.|134 |12.1.87 |Demanding |11830/ |Stoppage of | | | | | |money from |5.12.88 |two increments| | | | | |driver | |without | | | | | | | |commulative | | | | | | | |effect under | | | | | | | |consideration | | |16.|4745 |1.11.85 | | | | | |17.|3361 |13.7.97 |Refusal to |706/ |Absolved, | | | | | |take vehicle |10.2.88 |released the | | | | | | | |salary for the| | | | | | | |suspension | | | | | | | |period | | |18.|2041 |21.4.87 |Negligent |2815/ |Absolved | | | | | |driving of |9.6.93 |released the | | | | | |vehicle | |salary for | | | | | | | |suspension | | | | | | | |period. | | | | | | | | | | |19.|3792/ |27.7.87 |Less average |2686/5.5.89|Recovered Rs. | | | | | |of Diesel | |72/- | |

26. The aforesaid record projects the dismal  picture.   The   High   Court   has   observed   that  the   respondents   have   not   been   able   to   show  anything   adverse   in   the   career   of   the  respondent   after   1990     i.e.     in    last     12   years   preceding   the   order   of   retirement.  These   observations   are   not correct in as  much as:

a)   There   was   an   inquiry   against   the  respondent   for   which   he     was   imposed   the   penalty   of   stoppage   of  increment for  two  years. He  had  made   a     representation     against     this  penalty on 5.11.1998 which was dismissed   Page 18 of 41 HC-NIC Page 18 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT on 25.5.1998.
b)   Further   another   criminal   case   was   also instituted against him in the year  1999.   Though   outcome   of   this   criminal   case is not mentioned, fact remains that  the   accident   was   caused   by   the  Respondent   while   driving   the   bus   of  the   appellant   Corporation,   and   the  appellant   corporation   had   to   pay   heavy  compensation to the victims as a result  of orders  passed  by MACT.

Thus even the service record after 1990 does  not   depict   a   rosy   picture.     In   any   case,   there   is   nothing   to   show   his   performance  became better during this period.

27. It   hardly   needs   to   be   emphasized   that  the     order     of     compulsory   retirement     is  neither   punitive   nor   stigmatic.   It   is  based   on   subjective   satisfaction   of   the  employer   and   a   very   limited   scope   of  judicial   review     is     available     in     such  cases.   Interference is permissible only on  the   ground   of   non   application   of     mind,  malafide, perverse, or arbitrary or if there  is non­compliance of statutory duty by   the  statutory   authority.   Power   to   retire  compulsorily,   the   government   servant   in  terms of service rule is absolute, provided  the authority  concerned  forms  a  bonafide  opinion   that   compulsory   retirement   is   in  public interest."

18. In the case of Rajesh Gupta (supra), relied upon  by learned advocate Mr.Chirag Patel, learned advocate  for   the   petitioner,   the   Hon'ble   Supreme   Court   has  observed and held in paragraphs No.8, 9, 20, 21, 22,  29, 30 and 31 as under:

Page 19 of 41

HC-NIC Page 19 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT "8. We may also notice at  this  stage  that   the appellant had a spotless service record  throughout   24   years   of   service.   In   the  annual   performance   report   for   the   period  1.4.1997   till     31.3.1998,     his     work   has   been   assessed   as   'Good'.   The   reviewing   authority   has   graded   the appellant as a  'Very Good Officer'. Against the column   of  integrity,   the     remark   is   'Excellent'.  

Similarly,   for   the   year   1998­1999,   he   was  assessed   as   'Good   officer'   and   having  'excellent'   integrity.     In   the   annual  performance   report   for   the   year   1999­2000   again   his   integrity   is   said   to   be  'Excellent'.  He has been assessed as a very  capable and efficient officer.   The overall  assessment   given  by  the  reviewing  authority  is 'A very good officer'. For the year 2000­ 2001,   the   annual   performance   report     again  records  that  the  appellant  is  'A  good officer'   with   good   integrity.   A   separate  assessment was given on 12th March, 2005 for  the period 27th October, 2001 to 29th July,   2002 and thereafter from 23rd October, 2002  till   23rd   December,   2002.   This   annual  performance   report   was   recorded     by     the  Deputy     Commissioner,   Jammu   for   the   period  of 11 months.  In the aforesaid two tenures,  the   work   and   conduct   of   the   appellant   was  found to be good.   It is also recorded that  no   complaint   was   brought   to   the   notice   of  the   reporting officer.   For the year 2003­ 2004   against   the   column   integrity,   it   is  mentioned that   'nothing   against   came   in  notice'.  The reporting officer has said 'he  is   a   very   good     field     officer'.   The  reviewing  officer  assessed  the  appellant   as  'An outstanding officer'.

9. In spite of having a blemish­free record  of service  as  noticed above, the appellant  was   directed   to   be   prematurely   retired     by  order dated 26th April, 2005 on the basis of  the recommendations made by the High   Powered   Review   Committee.   The  conclusion   on   the   basis   of   which   the  Page 20 of 41 HC-NIC Page 20 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT recommendations   for   retirement   of   the  appellant has been made are as under:­ "5.   As   per   inputs   provided   by   the   Additional   DG   CID   the   officer   has   amassed   property   disproportionate   to  his   known   sources   of   income   which   include   a   palatial   house   at   Krishna   Colony   Kathua   built   over   about   3  kanals   of land; two shops in Kathua market; six   kanals   of   land   in   Kathua   town,   one   kanal   of   land   at   Trikuta   Nagar   Jammu   (Sector   No.3),   two   kanals   of   land   at  Trikuta Nagar extension, three kanals of   land   at   Greater   Kailash   Colony,   Jammu;   10   marla   plot   at   Bhatiandi   and   bank   account and lockers in United Commercial   Bank,   R.N.Bazar   and   Vijay   Bank,   Purani, Mandi, Jammu.

20.   The   principles   on   which   a   government  servant can be   ordered   to be compulsorily  retired   were   authoritatively   laid   down   by   this   Court in the case of Baikuntha   Nath  Das     (supra).     In     Paragraph     34,     the   principles have been summed up as follows :

"34. The following principles emerge from   the above discussion:
               (i) An     order     of     compulsory  
               retirement     is   not   a   punishment.   It  
implies no  stigma nor any suggestion of   misbehaviour.
(ii) The order has to be  passed  by  the   government on forming the opinion that it   is   in   the   public   interest   to   retire   a   government     servant   compulsorily.  The order is passed on the   subjective   satisfaction   of   the   government.
(iii)Principles   of   natural   justice   have   no  place  in  the context of an order of  compulsory retirement. This does not mean   Page 21 of 41 HC-NIC Page 21 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT that   judicial   scrutiny   is   excluded   altogether.  While the High Court or this   Court   would   not   examine     the     matter   as   an   appellate   court,   they   may   interfere   if   they   are satisfied that   the   order   is   passed   (a)   mala   fide     or  
(b)   that   it   is   based   on   no   evidence   or  
(c) that it is arbitrary -- in the sense   that no reasonable   person   would   form   the   requisite   opinion   on   the   given   material; in short, if it is found to be   a perverse order.
(iv) The   government   (or   the   Review   Committee, as the case may be) shall have   to consider the entire record of service   before[pic]taking   a   decision   in   the   matter   --   of   course   attaching   more   importance   to   record   of   and   performance   during the later years. The   record   to  be     so     considered   would   naturally   include   the   entries     in     the  confidential   records/character   rolls,   both   favourable   and   adverse.   If     a   government   servant   is     promoted     to   a     higher     post   notwithstanding   the   adverse     remarks,     such     remarks     lose   their sting, more so, if the promotion is   based upon merit (selection) and not upon   seniority.
(v) An order of compulsory retirement is   not   liable   to   be   quashed   by   a   Court   merely     on     the     showing     that     while   passing it uncommunicated adverse remarks   were     also     taken   into   consideration.  

That   circumstance   by   itself   cannot   be   a  basis for interference.

Interference   is   permissible   only   on   the  grounds     mentioned   in   (iii)   above.   This  aspect has been discussed in paras 30 to 32  above.

21. The   aforesaid   principles   have   been   re­ examined and reiterated by this Court in the  case   of   Nand   Kumar     Verma     (supra).     The  Page 22 of 41 HC-NIC Page 22 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT principles have been restated as follows :­

34.   It   is   also   well   settled   that   the   formation   of   opinion     for     compulsory   retirement   is     based     on     the   subjective  satisfaction of the authority   concerned   but   such   satisfaction   must   be   based   on   a   valid   material.   It   is   permissible for the courts to   ascertain   whether     a     valid   material   exists     or   otherwise,   on     which   the   subjective   satisfaction   of   the   administrative   authority   is     based.     In   the   present   matter, what we see is   that   the   High   Court,   while   holding   that   the   track   record   and   service     record     of   the   appellant   was   unsatisfactory,   has   selectively taken  into consideration the   service   record   for   certain   years   only   while   making   extracts   of   those   contents   of   the   ACRs. There appears to be some   discrepancy.   We     say     so     for     the   reason   that   the   appellant   has   produced   the     copies   of     the   ACRs   which   were   obtained   by   him   from   the   High     Court   under the Right to Information Act,  2005   and     a     comparison     of   these   two   would   positively   indicate   that   the   High   Court   has not faithfully extracted the contents   of the ACRs.

    * * *

36. The material on which the decision of   the   compulsory   retirement   was   based,   as   extracted   by   the   High   Court   in   the   impugned judgment, and material furnished   by   the     appellant   would   reflect   that   totality of relevant materials were   not   considered   or   completely   ignored   by   the   High   Court.   This leads   to   only   one   conclusion     that     the     subjective   satisfaction   of     the     High     Court     was  not based on  the sufficient or  relevant   material.  In this view of the matter, we   cannot   say   that   the   service   record   of   the   appellant   was   unsatisfactory   which   would warrant  premature retirement  from   service.     Therefore,     there     was     no   Page 23 of 41 HC-NIC Page 23 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT justification   to   retire     the     appellant   compulsorily  from service.

22. In   the   case   of   State   of   Gujarat   vs.  Umedbhai     M.Patel     (supra),   the   same  principles   were  reiterated  in  the  following  words :­ "11.   The   law   relating   to   compulsory   retirement    has   now crystallised    into   definite   principles,   which   could   be  broadly summarised thus:

(i) Whenever   the   services   of   a     public   servant     are     no   longer   useful   to   the   general     administration,     the     officer   can  be  compulsorily  retired  for  the   sake of public interest.
(ii) Ordinarily,  the  order   of   compulsory   retirement   is   not   to   be   treated   as   a  punishment   coming   under   Article     311   of  the Constitution.
(iii) For   better   administration,   it   is necessary to chop off dead wood, but   the order of compulsory  retirement  can   be passed after having due regard  to the   entire  service record of the officer.
(iv) Any   adverse   entries   made   in   the   confidential   record   shall   be   taken   note   of   and   be   given   due   weightage   in   passing such order.
(v) Even     uncommunicated     entries     in   the     confidential   record   can   also   be   taken into consideration.
(vi) The order of compulsory   retirement   shall     not   be   passed   as   a   short   cut   to   avoid    departmental   enquiry   when such   course is more desirable.
               (vii)       If the   officer   was   given   a 
               promotion     despite   adverse   entries   made  
in   the   confidential   record,   that   is   a   fact in favour of the officer.
Page 24 of 41

HC-NIC Page 24 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT

(viii) Compulsory retirement shall not be   imposed as a punitive measure."

...

...

29. The report  also does not indicate that  there   is   any   irregularity  in   the   bank  accounts   maintained   by   the   appellant.   The   affidavit filed on behalf of the   State   of  Jammu    and     Kashmir     clearly     shows    that   according to   the   Vigilance   Organization,  three First Information Reports bearing Nos.   49/91, 11/95 and 63/94  were  registered  by  the State Vigilance Organization against the   appellant   when   he   was   posted   as   Executive  Engineer   (REW,   Kathua).   Upon   investigation,  all the FIRs were found to be "Not Proved".  However,     recommendation     was     made     to   initiate   departmental   action     against     the  officer.   Inspite   of   the   aforesaid  recommendation,   it   has   not   been   disputed  before   us,   that   no   departmental   action   was  ever   initiated   against   the   appellant.   In  fact,   after   the   completion   of   the  investigation   into   the   FIRs,   the   appellant  was  promoted  to  the  post  of  Executive   Engineer   on   15.12.1996. Therefore, it can   be safely concluded   that   there   were   no  material   before   the     High     Powered  Committee  to   conclude  that  the   officer   possessed assets beyond his known source of  income.

30.  This now takes us to the other material  on the   basis   of   which the recommendation  has been made by the High Powered Committee.  It has been noticed by us earlier that the  appellant   was   required,   in   the   performance  of   his   official   duties,   to   recommend     the  sanctioning   of   technical   approval   to   the  construction of works of  various  projects. The   allegation   with   regard   to   issuing   back  dated  technical  sanctions   was  duly   inquired  into. The conclusion ultimately reached   by  inquiry officer noticed in the earlier part  Page 25 of 41 HC-NIC Page 25 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT of   the   order   indicates   that   at   best   the  appellant acted in a  casual  and  haphazard  manner   in   the   maintenance   of   records.   Such  negligence   on   the   part   of     the     appellant   cannot   per   se   lead   to   the   conclusion   that  the   appellant   was   acting   in   such   a   manner  with   an   ulterior   motive.   The   conclusions  reached   by   the   High   Powered   Committee   also  do   not   co­relate   to   the   assessment   of   work  and integrity of the appellant in the annual  performance   report. As noticed earlier, in  all   the   annual   performance   reports,   the  officer   has   been   rated   'very   good',  'excellent' and even 'outstanding'.

31. In view of the aforesaid, the conclusion  is  inescapable,  that the order  passed  by   the   State   Government   suffers   from vice  of   arbitrariness.   The   High   Court   erred   in  arriving at conclusions which         were not  borne out by the record produced before the   High  court.  In view of the settled law, it   is not   possible   for   us   to   uphold   the   judgments of the Single Judge as also of the  Division Bench.

19. In   the   case   of   H.A.Mehta   (supra),   this   Court  observed and held in paragraphs No.18 to 20 as under:

"18. The question is as to what is the scope   of  such  power   of  judicial   review  ?  are  the   courts justified in re ­ appreciating and re   ­   assessing   evidence   and   material   and   in  reaching   conclusions   different   from   that  reached by the appropriate authority ? should  the   courts   dwelve   deep   into   the   service   record and try to find out factors favourable  to the employee by ignoring factors which are   quite relevant and material to the foundation  of   public   administration?   should   the   courts  sit in appeal over the order of decision of   the   appropriate   authority   ?   answers   to   all   such   questions   are   in   negative   and   the  jurisdiction and scope of judicial review is   Page 26 of 41 HC-NIC Page 26 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT very   limited.   When   the   court   is   satisfied  that   the   exercise   of   power   under   this   rule  amounts to colourable exercise of power or is   arbitrary or mala fide it can always strike  down   the   order.   However   as   observed   by  justice   v.   H.   Krishna   iyer   in   the   case   of  baldevraj   chadha   v.   Union   of   india   (supra)   judicial   monitoring   becomes   an   unpleasant  necessity   where   power   may   be   humour   and   a  career may be a victim. Potential compulsory   retirement   under   rule   161   haunting   the  afternoon of official life injects an awesome  uncertainity   which   makes   even   the   honest  afraid   the   efficient   tremble   and   almost   everyone   genuflect.   Since   exercise   of   such   power   has   very   drastic   consequences   on   the   govt. Servants in the evening of his career  and   since   the   scope   of   judicial   review   is  staled to be very limited it becomes the duty  of the court to sedulously check exercise of   such power. The adverse effect of the order  on the govt. Employee cannot be better stated   that in the words of justice krishna iyer in   the   case   of   baldevraj   chadha   v.   Union   of  india (supra). Justice krishna iyer observed  in the case aforesaid as under:
"The administration to be competent must  have   servant   who   are   not   plagued   by  uncertainity about tomorrow. At the age   of   50   when   you   have   family  responsibility   and   the   sombre   problems  of   ones   own   lifes   evening   your   experience   accomplishments   and   fullness  of   fitness   become   an   asset   to   the  administration   if   and   only   if   you   are  not   harried   or   worried   by   what   will  happen to me and my family ? where will   i go if i cashiered ? how will i survive  when i am too old to be newly employed  and   too   young   to   be   superannuated   ?  these consideration becomes all the more  important   in   departments   where  functional   independence   fearless  scrutiny   and   freedom   to   expose   evil   or  error   in   high   places   is   the   task.   And   Page 27 of 41 HC-NIC Page 27 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT the   ombudsmanic   tasks   of   the   office   of  adult   vested   in   the   c   and   ac   and   the  entire   army   of   monitors   and   menions   under   him   are   too   strategic   for   the  nations   financial   health   and   discipline  that   immunity   from   subtle   threats   and  oblique   overaweing   is   very   much   in  public interest. So it is that we must  emphatically state that under the guise   of   public   interest   if   unlimited   discretion   is   regarded   acceptable   for  making an order of premature retirement   it will be the surest menace to public  interest   and   must   fail   for  unreasonableness   arbitrariness   and  disguised   dismissal.   To  constitutionalise   the   rule   we   must   so  read it as to free it from the potential  for   the   mischiefs   we   have   just   projected. The exercise of power must be  bona   fide   and   promote   public   interest.   There is no demonstrable ground to inter  mala   fide   here   and   the   only   infirmity  alleged which deserves serious notice is  as to whether the order has been made in  public   interest.   When   an   order   is   challenged   and   its   validity   depends   on   its   being   supported   by   public   interest   the state must disclose the material so  that the court maybe satisfied that the  order   is   not   bad   for   want   of   any  material whatever which to a reasonable   man reasonably instructed in the law is  sufficient   to   sustain   the   grounds   of   public   interest   justifying   forced  retirement   of   public   servant.   Judges  cannot   substituted   their   judgment   for  that   of   the   administrator   but   they   are  not   absolved   from   the   minimal   review   well ­ settled in administrative law and  founded   on   constitutional   obligations.  The   limitations   on   judicial   power   on   this   area   are   well   ­   known   and   we   are   confined   to   an   examination   of   the   material   merely   to   see   whether   a  rational   mind   may   conceivably   be  Page 28 of 41 HC-NIC Page 28 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT satisfied that the compulsory retirement  of the officer concerned is necessary".

19. It   becomes   clear   from   the   above   observations that under the guise of public  interest if unlimited discretion is regarded  acceptable for making the order of premature   retirement   it   will   be   the   surest   menace   to  public   interest   and   it   must   fail   for  unreasonableness  arbitrariness and  disguised  dismissal.   Shortly   speaking   in   order   to   succeed in an action challenging the order of   premature retirement the authority exercising   power must prove that the exercise of power  is   bona   fide   and   is   to   promote   public  interest.   The   authority   must   disclose   the  material based on which the order is passed  and   the   court   must   be   satisfied   that   the  order   is   not   bad   for   want   of   any   material  whatever which to a reasonable man reasonably  instructed   in   the   law   is   sufficient   to  sustain   the   ground   of   public   interest.   I  however   the   court   cannot   substitute   its   judgment   for   that   of   the   authority   but   the  courts   are   not   absolved   from   the   minimal  review well ­ settled in administrative law  and founded on constitutional obligations.

20. Whether there is colourable exercise of  power   or   the   authority   is   lacking   any   bona  fide while passing the order can be tested by  ascertaining and finding out. As to whether  the   authority   has   taken   into   consideration   the   factor   which   were   irrelevant   and   or   extraneous or whether it has failed to take  into   consideration   the   factors   which   were  relevant and material. From the enquiry the  courts have tried to justify the exercise of   powers. When the court was satisfied that the   decision   was   vitiated   by   taking   into   consideration   irrelevant   and   extraneous  factors of by ignoring relevant and material   factors it has invalidated such action on the  ground   that   the   order   was   passed   in  Page 29 of 41 HC-NIC Page 29 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT colourable exercise of powers.

20   A.   From   this   enquiry   a   new   line   of   reasoning is developed. The question is as to   whether   the   authority   should   consider   the  entire   service   record   and   the   confidential   reports   of   an   employee   or   it   should   only  consider the service record and confidential  reports   of   5   to   10   years   immediately  preceding   the   date   of   retirement?   further  question   is   as   to   whether   the   order   of  compulsory   retirement   is   necessarily   bad   if  the   authority   has   taken   into   consideration   the reports of remote past so as to justify   the action by ignoring the reports of recent   service   career   of   the   employee   ?   further  question   may   also   arise   as   to   whether   a  subsequent   factum   of   promotion   to   a   govt.  Employee   necessarily   renders   his   earlier  service record beyond scope of consideration  by   the   authority   exercising   power   of   premature   retirement   ?   whether   a   purely   administrative   action   of   permitting   a   govt.  Employee  to  cross  e.  B.  Would  also   put  his   entire   service   record   prior   thereto   outside  the   field   of   consideration   while   assessing   his   suitability   for   continuance   in   service   beyond the age of 50 years? enquiry into all   these   aspects   has   gradually   resulted   into  widening   the   scope   of   judicial   review.   In  fact power of premature retirement which was  once   stated   to   be   absolute   power   is   now  subjected   to   a   detailed   judicial   scrutiny  under the heading of colourable exercise of  powers.   What   is   relevant   and   what   is   not  relevant. What should be looked into and what   should   not   be   looked   into   for   assessing   fitness   of   the   employee   for   continuance   in   service   is   indirectly   taken   into   judicial  scrutiny   and   very   often   the   order   of  premature retirement is avoid on the ground  that   the   authority   has   taken   into   consideration   irrelevant   and   extraneous  factors   or   has   failed   to   take   into   account  the relevant or get mane factors."



                                Page 30 of 41

HC-NIC                        Page 30 of 41     Created On Sun Mar 13 22:36:04 IST 2016
                C/SCA/5241/2000                                           JUDGMENT




20. In case of J.M.Mehta (supra), this Court observed  and held in paragraphs No.16 as under:

"16.   The   Division   Bench   of   this   court   in   Special   Civil   Application   No.   28   of   90  decided in October 1990 following the above­ referred   decision   of   the   Supreme   Court   and  in   the   context   of   Rule   161   of   the   Bombay   Civil Service Rules found that "even if the   order of premature retirement is couched in  innocuous   language   without   making   any  imputations against the Govt. servant who is  directed   to   be   compulsorily   retired   from  service,   the   court   if   challenged,   in  appropriate cases, can lift the veil to find  out   whether   the   order   is   based   on   any  misconduct of the Govt. Servant concerned or  the   order   has   been   made   bona   fide   and   not   with any oblique or extraneous purposes". In  the   case   before   the   Division   Bench,   the  court   found   that   the   employee   in   that   case  was   not   only   permitted   to   cross   Efficiency  Bar but he was promoted to the higher post.  The   court,   therefore,   found   that   the  employee   could   not   be   regarded   as   "dead­ wood". The court found that it was the case  of   the   State   Govt.   in   its   affidavit   reply  that   number   of   departmental   enquiries   were  pending   against   the   employee   and   it   was  further their case that the integrity of the  employee   was   doubtful.   The   Division   Bench,  therefore,   found   that   in   fact   the   order  passed against the employee was not an order  of   premature   retirement   simpliciter   in  exercise of powers conferred by Rule 161 of  Bombay Civil Service Rules, but in pith and   substance,   it   was   a   punitive   order;   the  order   was   a   short­cut   to   a   regular  departmental   enquiry   under  Article   311  of  the Constitution of India." 

21. In the case of Valiben Jethabhai Bhanji (supra),  Page 31 of 41 HC-NIC Page 31 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT this Court observed and held in paragraphs No.13 and  17 as under:

"13 ...
...
It   may   be   noted   that   the   term   compulsory  retirement   is   often   used   for   non­penal   premature  retirement.  One   may,  however,  not  lose   sight   of   the   fact   that   there   is   a  distinct  difference  between  these  two   kinds  of   retirements,   namely,   penal   retirement  upon   departmental   inquiry   on   the   basis   of  proved   misconduct   which   normally   results  into   disentitling   an   employee   from   seeking  any   pensionary   benefits   and   a   non­penal  retirement   referred   to   as   the   premature   or  compulsory   retirement   upon   completion   of  certain number of years of service in which  case   the   employee   retains   all   the   benefits  of the past service and is entitled to full  post retiral benefits on that basis. One may  also   notice   that   in   recent   past,   voluntary  retirements pursuant to voluntary retirement  schemes   are   getting   currency.   Employers  often   come   up   with   voluntary   retirement  schemes   to   reduce   the   staff   and   the   salary  burden.   Such   schemes   are   construed   as   an  invitation   to   offer   as   was   held   by   the  Hon'ble Supreme Court in the case of Bank of  Inida v. O.P.Swarnakar, reported in (2003) 2  SCC 721.
...
...
17. Upshot   of   the   above   judicial  pronouncements would be that the concept of  compulsory   retirement   as   a   non­penal  termination   of   the   employee   upon   crossing   certain   age   but   before   crossing   the   age   of  superannuation in terms of the service rules  has   received   definite   connotation.   Such  powers   are   required   to   be   exercised   in  public   interest.   The   concept   of   compulsory  retirement   public   interest   in   this   context  is   understood   to   be   the   requirement   of  Page 32 of 41 HC-NIC Page 32 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT administration to energize itself for better   and   more   efficient   administration   and   in  this   regard   it   is   found   that   it   is   always   open   for   the   employer   in   exercise   of   such  powers to weed out the dead wood, to remove  inefficient   and   to   augment   the   efficiency   and integrity in public service. It is found  that   the   Government   has   power   to   weed   out  the   dead   wood,   inefficient,   corrupt   and  people of doubtful integrity by compulsorily   retiring   them   from   service.   It   can   thus   be  seen   that   in   the   context   of   the   powers   of   the   employer   to   compulsorily   retire   an   employee   without   holding   an   inquiry,   the  same must be based on public interest as is  understood   in   the   context   of   several  decisions   of   the   Hon'ble   Supreme   Court,  reference   to   some   of   which   have   been   made  herein­above.   The   crux   of   the   matter  therefore   would   be   that   such   powers   can   be  exercised in public interest to improve the  efficiency of the administration and in that  sense such powers can be exercised either to  weed out dead wood or to remove inefficient   employees   or   to   remove   the   persons   of  doubtful integrity. In my opinion, the term  public   interest   in   context   of   such   powers  cannot   be   given   such   a   wide   meaning   as   to   include   any   and   every   question   of   public  importance   or   interest   as   is   sought   to   be  done by the respondent in the present case.  In the ordinary sense of the term though to  downsize   the   work   force   or   to   reduce   the  salary   burden,   may   be   considered   as   public  interest, in my opinion, reference to such a  purpose   is   not   to   be   included   for   the  purpose of exercising powers of compulsorily   retiring   an   employee   before   he   attains   the  age   of   superannuation.   Nature   of   powers  enjoyed   by   employer   under   such   provisions   have been discussed and outlined by various  decisions   cited   herein­above.   There   is  reasonable   guarantee   that   an   employee   will  be permitted to discharge his duties till he  crosses   the   age   of   superannuation.   As  observed   in   the   case   of   Doshi   Fatechan  Page 33 of 41 HC-NIC Page 33 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT Morarji (supra) normal age of superannuation   cannot be left at the sweet will or caprice  of the employer." 

22. From   the   aforesaid   decisions   rendered   by   the  Hon'ble   Supreme   Court   as   well   this   Court   following  points would emerge.

A. An   order   of   compulsory   retirement   is   not   a  punishment.   It implies no stigma nor any suggestion  of misbehavior.

B. The order has to be passed by the Government on  forming the opinion that it is in the public interest  to retire a Government servant compulsorily. C. The principles of natural justice have no place  in the context of an order of compulsory retirement.  However, the judicial scrutiny is not excluded, High  Court   did   not   examine   the   matter   as   an   Appellate  Court,   but   High   Court   has   jurisdiction   to   interfere  with the order of compulsory retirement if the order  is   based   I)   mala­fide,   ii)   that   it   is   based   on   no  evidence,   or   iii)   that   it   is   arbitrary,   iv)   or  perverse order.

D. The order of compulsory retirement shall not be  Page 34 of 41 HC-NIC Page 34 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT passed   as   a  short  cut   to   avoid   departmental   inquiry  when such course is more desirable. E. Compulsory   retirement   shall   not   be   imposed   as  punitive measure.

F. Any   adverse   entries   made   in   the   confidential  record   shall   be   made   note   of   and   be   given   due  weightage in passing such order. 

23. Thus,   keeping   in   mind   the   aforesaid   principles  laid   down   by   various   Courts,   if   the   facts   of   the  present   case   are   considered,   it   emerges   from   the  record   that  the   petitioner  has   placed   on   record  the  the affidavit in rejoinder alongwith the certificates  dated 24.02.1993, 31.08.1994 and 29.09.1999 issued by  the   Chief   Officer,   Administrator   and   President   of  respondent   Municipality   respectively.     In   all   the  aforesaid   certificates,   it   has   been   categorically  stated that the petitioner is sincere, hardworking and  honest.     He   bears   a   good   moral   character.     He   has  given   a   satisfactory   work   during   his   service   period  and   no   departmental   inquiry   is   pending   against   him.  The   respondents   have   not   filed   any   sur­rejoinder   to  this and denied the aforesaid aspects.   Thus, if the  Page 35 of 41 HC-NIC Page 35 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT certificates were issued by the responsible/authorised  officers of the respondent Municipality in the years  1993, 1994 as well as in the year 1999, it can be said  that   till   1999,   no   departmental   inquiry   was   pending  against   the   petitioner.     In   spite   of   that,   in   the  impugned   order   passed   on   20.05.2000,   it   has   been  observed   that   inquiry   was   initiated   against   the  petitioner   in   the   year   1990.     However,   the   said  inquiry was not concluded during period of 10 years.  The respondent has not produced any material on record  to   suggest   that   such   inquiry   was   initiated   and   was  pending   at   the   time   of   passing   the   impugned   order  against the petitioner.      

24. It   has   further   emerged   from   the   record   that   in  the impugned order, there is a reference with regard  to criminal complaint filed against the petitioner for  the   offense   punishable   under   the   Prevention   of  Corruption Act.  However, the petitioner has produced  on record the order dated 31.03.1999 passed by Special  Judge, Banaskantha, Palanpur, passed in Special Case  No.38   of   1997,   whereby,   the   petitioner   has   been  acquitted, petitioner has specifically averred in the  petition that against the said order, Criminal Appeal  Page 36 of 41 HC-NIC Page 36 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT No.709 of 1999 was preferred by the State and the said  appeal   was   dismissed   at   the   admission   stage   by   an  order   dated   01.11.1999.     Thus,   before   passing   the  impugned   order   on   20.05.2000,   the   petitioner   was  acquitted by the competent Criminal Court.  It is also  revealed from the record that petitioner has filed FIR  against   the   respondent   No.3,   who   was   working   as  Chairman   of   Food   Adulteration   Committee   of   the  respondent   Municipality   under   the   Prevention   of  Corruption Act. Said FIR is produced at page 100 of  the   compilation   and   the   same   was   registered   on  23.03.2000 against the respondents No.3.  Thereafter,  another   FIR   came   to   be   registered   against   the  respondent   No.3.     Said   FIR   was   also   filed   by   the  present   petitioner   under   Sections   323,   504,   506(2)332,   341,   352   and   114   of   Indian   Penal   Code   on  10.04.2000.     Petitioner   has   also   produced   on   record  the   letter   dated   03.04.2000   written   by   him   to   the  Police Inspector, ACB, which is produced at page 109  and in the said letter, he has also made an allegation  against   the   respondent   No.3   herein   and   shown   an  apprehension that respondent No.3 will implicate him  in   false   cases.     Similar   letter   was   written   to   the  Page 37 of 41 HC-NIC Page 37 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT Director of Municipalities, which is produced at page  113   of   the   compilation,  wherein   also,   he   has  stated  that threats are given to him at at the instance of  respondent   No.3   and   requested   the   Director   to  disqualify   the   respondent   No.3.     It   was   also  apprehended   that   the   President   of   Nagarpalika   would  dismiss   him   or   suspend   him   and   therefore   necessary  action be taken against such officers.  

25. Thus, from the material produced on record, it is  clear   that   respondent   Nagarpalika   has   passed   the  impugned   order   on   20.05.2000   with   a   mala­fide  intention at the instance of respondents No.2 and 3.  The petitioner has well in advance shown apprehension  about   the   same.     It   is   further   clear   that   while  passing the impugned order, the respondent authority  has taken into consideration the irrelevant material  and not at all considered the service record of the  petitioner   i.e.   the   certificates   dated   24.02.1993,  31.08.1994   and   29.09.1999,   issued   by   the   various  officers   of   the   respondent   Municipality,   which   are  produced at page 214 to  216  of the compilation.   If  the petitioner was working with honesty and sincerity  as  reflected   in   the   said   certificates,  there  was   no  Page 38 of 41 HC-NIC Page 38 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT question of taking into consideration the irrelevant  material while passing the impugned order.   Even, no  departmental   inquiry   was   pending   against   the  petitioner   which   is   reflected   from   the   aforesaid  certificates till 1999.  Thus, the observation made by  the respondent Municipality in the impugned order that  for   certain   charges,   departmental   inquiry   was  initiated against the petitioner in the year 1990 and  for   a   period   of   10   years,   said   inquiry   was   not  concluded because of the petitioner.  The said fact is  not supported by any material produced on record and  the   said   fact   is   also   incorrect   in   view   of   the  certificates   issued   by   the   respondent   authority.  Thus, irrelevant material/fact of departmental inquiry  pending since 10 years was considered and observed in  the   impugned   order   that   now   if   the   disciplinary  proceedings is initiated against the petitioner, then  it would not possible to conclude the inquiry against  him and therefore in public interest, it is decided to  pass   an   order   of   compulsory   retirement   of   the  petitioner.   Thus, instead of initiating the inquiry  against the petitioner, order of compulsory retirement  was passed.   This is nothing but a short cut adopted  Page 39 of 41 HC-NIC Page 39 of 41 Created On Sun Mar 13 22:36:04 IST 2016 C/SCA/5241/2000 JUDGMENT by   the   respondent   Municipality   to   avoid   conducting  departmental inquiry, which is not permissible.  Thus,  such an order is punitive in nature.  

26. In view of the aforesaid discussion, this Court  is of the opinion that the impugned order passed by  the   respondent   Municipality   was   with   mala­fide  intention and at the instance of the respondents No.2  and   3   and   therefore,   the   same   is   required   to   be  quashed   and   set   aside.     The   said   order   is   also  arbitrary   and   perverse   as   irrelevant   material   was  considered   by   the   respondent   Municipality   and   the  relevant material was ignored.  The said order is also  required   to   be   quashed   and   set   aside   on   the   ground  that   the   same   was   passed   as   a   short   cut   to   avoid  departmental   inquiry   against   the   petitioner.     Thus,  though the scope of judicial review is limited while  exercising   powers   under   Article   226   of   the  Constitution of India by this Court, in the facts and  circumstances of the present case, and in view of the  aforesaid discussion, the impugned order is required  to be interfered with and is required to be quashed  and   set   aside.     Accordingly,   the  following   order   is  passed.



                                       Page 40 of 41

HC-NIC                               Page 40 of 41     Created On Sun Mar 13 22:36:04 IST 2016
                  C/SCA/5241/2000                                         JUDGMENT



                 

27. Impugned   order   dated   20.05.2000   passed   by   the  respondent   Municipality   is   hereby   quashed   and   set  aside.  It is pointed out by the learned advocate that  petitioner   has   expired   during   the   pendency   of   this  petition and therefore, his legal heirs are brought on  record and it is also pointed out that if the impugned  order was not passed against the petitioner compulsory  retiring him from services, he would have retired on  reaching the age of superannuation i.e. on 14.10.2012.  Thus, direction of reinstatement cannot be granted in  the   aforesaid   circumstances.   The   respondents   are  therefore   directed   to   give   all   the   consequential  benefits to the legal heirs of the petitioner as if  the order of compulsory retirement was not passed on  20.05.2000.

28. The   petition   is   allowed.     The   Rule   is   made  absolute.  No order as to costs.

(VIPUL M. PANCHOLI, J.) ANKIT Page 41 of 41 HC-NIC Page 41 of 41 Created On Sun Mar 13 22:36:04 IST 2016