Delhi High Court
Mohd. Khan Durrany vs The Principal (Tulsi Ram) Shivaji ... on 14 October, 1970
Equivalent citations: ILR1970DELHI414
JUDGMENT V.S. Deshpande, J.
(1) The question for the consideration of the Full Beach briefly is whether the tenure of service of the teachers of colleges functioning under the Delhi University is governed primarily by contract or by statutory provisions. "the petitioner was appointed as a Lecturer in Sanskrit at the Co-Educational College, Karampura by a letter dated 22nd/23rd August 1967 by Shri B. D. Bhatt, Secretary (Education) Delhi Administration as per Annexure B to the writ petition. The letter was silent regarding the terms and conditions of service but stated that the formal letter relating to the appointment would be issued shortly. On 8-4-1968, the Principal of the College (which had in the meanwhile become Shivaji College, Karampura) wrote the formal letter of appointment to the petitioner staling his pay and terms and conditions of service. The most important term was that the petitioner was informed that he was on probation of one year from 22-8-1967 and during probation his appointment was terminable by one month's notice.
(2) The appointment of the petitioner was actually terminated by the Governing Body -of the College and the petitioner was informed on 18-5-1968 by a notice that his services would not be needed by the College from 15th July 1968.
(3) The petitioner impugns the validity of the termination of his.services on the following grounds, namely :-
(1)His original appointment on 22nd/23rd August 1967 was neither temporary nor on probation and presumably permanent. He could not therefore be placed on probation retrospectively by the letter dated 8-4-1968 and his services could not therefore be terminated by notice on the ground that he was a probationer.
(2)Alternatively, even if the petitioner was a probationer, he was governed by the terms of the form of service agreement embodied in Delhi University Ordinance Xii as the Shivaji College was a Government maintained college. Ordinance Xii did not contemplate the simple termination of his services. there under, his services could be determined only on two grounds, namely, (a) summarily for mis-conduct, or (2) with three months' notice and for good cause. In either case, an opportunity to show cause against the proposed termination of service had to be given to him. This not having been done, the termination of the services was in violation of Delhi University Ordinance Xii and therefore ultra vires and illegal.
(3)The Principal of the College was biased against him and terminated his services mala fide and by way of punishment.
(4) The petitioner prayed that the notice dated 18-5-1968 terminating his services be quashed and that the Principal and the Governing Body of the College as well as the Union of India (Respondents 1 to 3) be directed by a writ of mandamus to continue the petitioner in service and to set aside the appointment of Respondent No. 4 who had been in the meanwhile appointed as Lecturer in Sanskrit in the post vacated by the petitioner.
(5) In the defense on behalf of Respondents 1 and 2, it was pointed out that the petitioner was appointed on probation on 22nd/23rd August 1967 in a hurry and therefore the formal letter containing the terms and conditions of his service could not be issued till 8-4-1968. The Shivaji College was not a Government maintained college. The said College was recognised by the Delhi University on the express condition that the Model Conditions of Service framed by the University under clause (ii)(b) of Statute 30(1)(C) and Ordinance xviii along with the form of service agreement in ordinance Xii would apply to the teaching staff of the college. The services of a probationer could be terminated by a month's notice under sub-clause (6) of clause 7 [later changed to sub-clause (7) of clause 7] of Ordinance xviii. The termination of the petitioner's services was therefore legal and the petitioner was not entitled to any of the reliefs claimed by him.
(6) The main questions for decision, therefore, are :-
1.What was the nature of the appointment of the petitioner made on 22nd/23rd August 1967 ?
2.Was he a teacher in a Government maintained college ?
3.Was the termination of his employment by the letter dated 18th May 1968 wrongful?
4.If so, is he entitled to reinstatement Let us examine these questions in the order in which they are stated above.
(7) Question NO. 1 Both the law and the facts show that the appointment of the petitioner was as a probationer. According to the petitioner, his appointment was governed by Ordinance XII. But the very first paragraph of the form of service agreement in Ordinance Xii adopts the rule that the appointment is to be on probation for a staled period. As an exception, the Governing Body may decide to pmit the condition of probation. In the present case, no form of service agreement was executed by the petitioner. If however Ordinance Xii applies to his case, the conditions 'of service stated in the form of service agreement would also apply to him even if the agreement was not actually executed by him. This was the view adopted in Barber v. Manchester Regional Hospital Board (1958) 1 A.E.R. 322 and was inplicit in P. R. Jodh v. A. L. Pande and Dr. Akshaibar Lal v. Vice-Chancellor. Banaras Hindu University . Acting under Statute 30(1.)(C) and clause (5) of Statute 30, the University had accorded recognition to the College on the condition that the model conditions of service framed by the University would apply to the teaching staff of the College. By these conditions, Ordinance xviii was made applicable to the teaching staff of the College. Under clause 7(6) [later changed to 7(7)] of Ordinance xviii also the rule is that a teacher is appointed on probation of not more than one year in the first instance. It is only the Principal who is exempted from this condition of probation.
(8) The facts also point to the same conclusion. The petitioner was appointed in a hurry when even the teaching of Sanskrit in the College had not been permitted by the University. This permission was obtained later on 12th/13th September 1967. The petitioner was appointed apparently in a hurry and this is why the conditions of his service could not be stated in the letter dated 22nd/23rd August 1967. Hence the terms and conditions of his service were stated in the formal letter of appointment dated 18th April 1968 expressly placing him on probation. As the condition of probation was in accordance with both Ordinances Xii and xviii, no fault can be found with the letter dated 18-4-1968, on this account. Lastly, the petitioner himself knew that he was on probation and he has admitted this several times as would be borne out by a reference to pages 64, 66, 105, 108, 109 and 207 of the paper-book. We find therefore that the petitioner was appointed as a probationer.
(9) Question NO. 2 :- In considering whether the petitioner was appointed to a Government maintained College, it is to be seen that the word "maintained" by the University or by the Government or by some other body as applied to a College or an institution has been a familiar one in legislation dealing with Universities and other educational institutions. It is used in sections 2(a), 4(9), 30(1) and 35(1) of the Delhi University Act, 1922. Presumably it is used in the same sense in the titles to Ordinances xviii and Xix, namely, "Colleges other than those maintained by the Government of India" and "Government maintained Colleges".
(10) The use of the word "maintained" has a venerable history as it. was used in the English statutes dealing with maintained schools etc. The classification of schools between maintained schools and nonmaintained schools is an established one according to 13 Halsbury's Laws of England 594 paragraph 1248. But even prior to the Education Act, 1944, the older enactments since repealed used this word and its meaning has been construed in several English decisions. In Attorney-General and Board of Education v. County Council of. the West Riding of Yorkshire (1907) Appeal Cases 29, the word "maintain" was held to mean "pay" for reasonable expenses of the school. The maintenance of the school was distinguished from its management which was entrusted to managers.. In Wilford v. County Council of the West Riding of Yorkshire (1908) 1 K.B. 685, obligation to "maintain" was held to mean to "pay" for. Such obligation did not include the power to enforce the teaching of secular education. That right is in the managers who are different from the local authority on which the duty to maintain certain schools has been imposed. In the Trowbridge Water Company v. The Wilts County Council (1909) I K.B. 824, it was held that a local authority could enter into a contract for the supply of water to the school in performance of its duty to maintain the school. The local authority was also held competent to buy furniture for the school in the performance of its duty to maintain the school in Rex v. Easton (1913) 2 K.B. 60. The word "maintain" has invariably been used to mean "pay for the maintenance of" the institution. An institution is maintained by an authority or a body which pays all the expenses of the establishment for the running of the institution. This is also in accordance with the ordinary meaning of the word "maintain". We talk of payment of maintenance to some one to mean payment of expenses of that person's living. It appears that the Statutes relating to the Universities and educational institutions in India have used the word "maintain" in the same sense. It is in this sense that the Delhi University Act, 1922 and the Statutes and the Ordinances framed under it have apparently used that word.
(11) On the petitioner's own admission however Shivaji College is maintained to the extent of 95 per cent of its expenses on grants made by the University Grants Commission and only to the extent of 5 per cent of its expenses by the Delhi Administration. Learned counsel for the petitioner urged that this amounted to the maintenance of the College by the Government of India. But the University Grants Commission is a statutory body created by the University Grants Commission Act, 1956. It is therefore distinct from the Government of India. Under section 16 of the University Grants Commission Act. 1956, the fund of the Commission is separate from the Consolidated Fund of India which contains the Government funds proper under Article 266 of the Constitution. The expenditure incurred by the University Grants Commission in payment of grants to different institutions is an expenditure, out of the Fund of the Commission and not out of the Consolidated Fund of India. It is true that under section 15 of the University Grants Commission Act it is the Central Government which finances the Commission after due appropriation is made by the Parliament. It is also true that under section 17 of the said Act, the budget prepared by the Commission is sent to the Central Government so that the Central Government may obtain vote of the Parliament for that expenditure. Nevertheless, in the eye of law the University Grants Commission is different from! the Central Government. It is only a College maintained by the Government funds coming out of the Consolidated Fund of India that could be considered to be a Government maintained College. According to the petitioner, there is no such College in Delhi which is so maintained This may be the reason why Ordinance Xix which formerly dealt with Government maintained Colleges was found to be of no use as there was no Government maintained College in Delhi. This was perhaps why Ordinance Xix was repealed in 1951.
(12) Both the University and the Delhi Administration regarded the College as the one not maintained by the Government. In the extract from the report of the Inspection Committee (page 198 of the paper-book) Shri B. D. Bhatt, Education Secretary of Delhi Administration is stated to have informed the meeting that the Governing bodies of the new Colleges which were being started by the Delhi Administration were being formed in accordance with the established procedure which was that these Colleges would be run as non-Government Colleges and would receive maintenance grants from the University Grants Commission in accordance with the basis laid down. This is why the Shivaji College was to be managed by a Governing Body and not by an Advisory Committee. A Government maintained College has an Advisory Committee under Statute 30(1) (C) (i) proviso but other Colleges have a Governing Body. Both the University and the Delhi Administration agreed that Shivaji College should have a Governing Body and not an Advisory Committee obviously because they were of the view that it was not a Government maintained College. This is why the University recognised the College on the condition that Ordinance xviii which applies to Colleges other than those maintained by the Government of India would apply to the College. We find therefore that the petitioner was employed in a College which was not maintained by the Government of India.
(13) Question NO. 3:- Even if it is assumed for the sake of argument that the Shivaji College is a Government maintained College, we are of the view that Ordinance Xii on which the petitioner relies does not apply to a Government maintained College as such as it is not concerned with the recognition of a College at all but only with the conditions of service of University teachers. Our reasons' are as follows : Firstly, Xix before its repeal applied exclusively to Government maintained Colleges. This shows that Ordinance Xii did not so apply. Secondly, Ordinance Xii occurs in Chapter Iv along with Ordinance XI. Chapter Iv is entitled "of the Teaching Staff". Both Ordinances Xi and Xii deal with the conditions of service of the teaching staff and therefore appear to have been framed under section 30(k) of the Delhi University Act which authorises the framing of the Ordinances relating to the emoluments and the terms and conditions of service of teachers of the University as defined in section 2(h) of the said Act. Ordinance Xi deals with one class of University teachers, namely, those who are appointed by the University. The other class of University teachers are those who are only recognised by the University but are appointed by Colleges. As Ordinance Xii is limited to emoluments and terms and conditions of College-appointed teachers, it seems to deal with these University recognised teachers. Thirdly, Ordinances xviii and Xix are contained in Chapter Vii which' deals with "Colleges and Halls". Contents of Ordinances xviii deal with the recognition of Colleges, etc. It must have therefore been made under Statute 30(1 )(C) which deals with the conditions to be fulfillled by Colleges to be recognised by the University. It could not have been made under section 30(k). Contents of Ordinance Xii are such that it must have been framed under section 30(k). As section 30(k) relates only to the University teachers, Ordinance Xii also is so limited. But as the petitioner is not a University teacher, it would not apply to him.
(14) Whether Ordinance Xii alone or both Ordinances Xii and xviii: apply to the petitioner's case, the termination of his services would be found to be in accord with their provisions. Under the first paragraph of the service agreement in Ordinance Xii, the petitioner was appointed on probation and before the expiry of the period of probation, the College could have informed him that it was not intended to confirm him. The effect would be that the services of the petitioner would have come to an end at the end of the probation. The letter dated 18-5-1968 could be construed as the intimation of the decision of the College not to confirm the petitioner. It also terminated his sendees before the end of the probation. There is nothing in Ordinance Xii to show that the petitioner could become permanent automatically on the expiry of the period of probation even though prior to such expiry he is informed that he was not to be confirmed at the end of the probation. The petitioner had no right to continue in service after the end of the probation as the employer had informed him of its decision not to confirm him.
(15) Under Ordinance xviii the right of the employer to terminate the services of the petitioner by one month's notice was clear according to the fourth paragraph of sub-clause (6) [later changed to (7)] of clause 7 thereof. The model conditions of service on which recognition was granted to the Shivaji College expressly applied Ordinance xviii read with the form of service agreement in Ordinance Xii to the teaching staff of the College. Ordinance xviii also refers to the service agreement which could be no other than the one contained in Ordinance XII. The makers of these Ordinances therefore did not think that the form of service agreement in Ordinance Xii was in any way inconsistent with the contents of Ordinance xviii including the right of the employer to terminate the services of the probationer on one month's notice. Reading the two Ordinances together, the intention of the framers clearly was that the non-confirmation of the probationer under the first paragraph of Ordinance Xii was to result in the termination of the services of the probationer in the same way as this could be done by a notice under Ordinance xviii. On any of these views, therefore, the termination of the services of the petitioner would be seen to be in accordance with Ordinances Xii and xviii.
(16) The third ground urged against his termination by the petitioner is that it was motivated by the enmity of Shri Rana and the Principal of the College and was therefore mala fide and by way of punishment. The services of the petitioner were terminated by a resolution of the Governing Body against which the petitioner has not alleged any enmity or mala fide. This ground also therefore fails. None of the grounds urged by the petitioner against the termination of his services having succeeded, we hold that the termination of his services was legal.
(17) Question No. 4 Suppose we are wrong and the petitioner's services were terminated in contravention of the provisions of Ordinance Xii and assume that Ordinance xviii did not apply to him. Is he then entitled to reinstatement ? We may examine this question from two sides, namely:-
(1)The nature of the cause of action on which the claim to reinstatement is based.
AND(2) The nature of the mandatory relief of reinstatement which is asked for.
(18) The alleged cause of action is wrongful termination of service. What is the juristic nature of service ? Service may mean on the one hand a pure contract of service between a master and a servant depending on the volition of the two parties. It is well-settled that for the breach of such a contract, the remedy is payment of damages. On the other hand, the tenure of service in a particular kind of employment may be governed primarily by statutes and statutory rules with the result that what was originally a contract has been converted into a statutory status. The violation of a statute governing the status of such an employee would be ultra vires and void. The remedy would be in he field of public law such as declaration or mandamus to restore status quo before the commission of the void act. Hence it is necessary to know in a particular case whether the service of the employee is only a contract or whether it is a statutory status. On one extreme may be a simple contract of domestic service between a master and a servant and on the other extreme would be the constitutional relationship between the Government and a civil servant the termination of which is protected by Part Iii and Article 311 of the Constitution. Between these two extremes there can be other kinds of cases. Each one may consist of elements of contract as well as of statutory regulation. In each case it would be a matter for examination as to what extent it is governed by contract and to what extent the contract is superseded by statute. If it is dominantly contractual then the remedy for wrongful termination would be damages. On the other hand, if it is dominantly statutory and the wrongful termination amounts to the violation of a statutory obligation then the remedy would be reinstatement.
(19) Originally the relationship of a master and servant was a personal one depending on the volition of both the parties. The common law rule embodied in section 21(b) of the Specific Relief Act. 1877 corresponding to section 14(1)(b) of the Specific Relief Act, 1963, was that such a contract depending on the volition of parties was not specifically enforceable. The only remedy was damages for breach of contract. With the growth of the modern State and industry, however, the relationship between the employer and the employee ceased to be purely personal. The law of master and servant, therefore, became the modern law of employment. Recourse was taken to legislation to give greater job security to the employees. Such legislation took two entirely different forms, namely, (1) the establishment of industrial adjudication and arbitration with which we are not concerned but the nature of which would be indicated later, and (2) the modification of the ordinary law of master and servant giving various degrees of statutory protection to the tenure of service of the employees. The legislative modification of the general law was also achieved in different ways. One way was to differentiate an office from an ordinary job. Being the holder of an office, the Chief Constable of Brighton in Ridge v. Baldwin (1964) Appeal Cases 40, (s) as observed by Lord Reid, was not the servant of the watch committe or of any one. The tenure of his office could not, therefore, be terminated except for cause and after an opportunity was given .to him to show cause against his dismissal. According to the Supreme Court decision in Parshotam Lal Dhingra v. Union of India (1958) S.C.R. 828, a permanent Government servant has a title to hold his post. In Moti Ram Deka v. General Manager, N.E.F. Railways , it was held therefore that the services of a permanent Government servant could not be terminated simpliciter. He could only be dismissed or removed from service after compliance with Article 311(2) of the Constitution. At page 748, Subba Rao J. (as he then was) concurring with the majority observed as follows : "Atitle to an office must be distinguished from the mode of its termination. If a person has title to an office, he will continue to have it till he is dismissed or removed there from".
(20) In Dr. Boolchand v. Kurukshetra University the statute was silent as to how the tenure of the Vice-Chancellor could be prematurely terminated. But the office was a statutory one and it was therefore held that such premature termination would be dismissal or removal which could be brought about only after giving an opportunity to the office holder to show cause why he "should not be removed or dismissed. The wrongful removal of the incumbent of an office would be contrary to statute and therefore ultra vires attracting the public law remedies of declaration and mandamus in favor of the office holder. Civil servants in Britain have always held office during the pleasure of His Majesty without any statutory protection analogous to the one contained in Article 311(2) of the Constitution. But this is not so in India.
(21) Short of creating a statutory office, the legislature may confer a special status on certain kinds of employees in respect of the termination of their services (Srimati Him Devi v. District Board, Shahjahanpur 1952 S.C.R. 1122. Even the humblest Government servant holding civil post under the Government enjoys such status by virtue of Article 311. As was observed by the Supreme Court in Roshan Lal Tandon v. Union of India , "the legal position of a Government servant is more one of status than of contract; the hall-mark of status is the attachment to a legal relationship of rights and duties imposed by the public law and not by mere agreement of the parties". Similarly, in Vine v. National Dock Labour Board (1957). Appeal Cases 488 every dock worker had to be: registered under the statutory scheme and had therefore a statutory status governed by the scheme. The termination of his employment contrary to the scheme was ultra vires and therefore a nullity and not a mere breach of contract. The Industrial Employment (Standing Orders) Act, 1946 enables model standing orders to be framed by rules on the pattern of which the Standing Orders have to be framed by the employers and these have to be certified by the authorities .acting under the Act. Under section 13 of the Act, an employer is forbidden to act contrary to the provisions of the Act and is liable to be fined and prosecuted for such contravention. The terms of the Standing Orders thus constituted "the statutory terms of employment" in the words of the Supreme Court in Bagalkot Cement Company Ltd. v. R. K. Pathan (1962) Suppl. 2 S.C.R. 697. (15). The termination of the services of an employee contrary to such Standing Orders was therefore held to be a breach of the statutory provisions by Bhagwati J: (as he then was) in Tata Chemicals Ltd- v. Kailash C. Adhvaryu and remedied by reinstatement. This decision was given in a second appeal arising out of a suit. It is to be distinguished from S. P. Srivastwa v. Banaras Electric Light and Power Company 1968 Allahabad Law Journal 257(FB) (17) in which reinstatement was granted in industrial adjudication to be considered later. The Agra University Act provides that the services of the Princapal of a College affiliated to the said University could not be terminated except with the approval of the Vice-Chancellor thus giving the Principal a statutory status and protection. The violation of this statutory protection could also be remedied by reinstatement as was done in Managing Committee of Meerut College v. Dr. V. Purifi 1969 S.L.R. 521. (18) IT would appear therefore that the contravention of a statute onacted by the legislature itself in terminating the services of an employee would be ultra vires and remediable by a declaration of the invalidity of the order or a mandatory injunction reinstating the employee. What is the effect of the contravention of a statutory rule as distinguished from the statute itself in terminating the services of an employee ? Rules framed under section 96-B(2) of the Government of India Act, 1919 in view of sub-section (5) thereof could not be construed to limit the pleasure of His Majesty in dismissing a civil servant. Therefore, the dismissal of a Government servant contrary to such rules could not be remedied by reinstatement in R. Venkata Rao v. Secrtary of State for India (1936) L.R. 64 Indian Appeals 55, while the termination contrary to the statute itself was held to be so remediable in R. T. Rangachari v. Secretary of State for India (1936) L. R, Indian Appeals 40. (20). But, as observed by Subba Rao J. in the State of Uttar Pradesh v. Babu Ram Upadhya "so long as the statute and the rules made there under do not affect the power of the Governor-in the present case the Governor's pleasure is expressly preserved-they should be legally enforceable". His Lordship observed that there were two lines of decisions among the High Courts on this point, one relying upon the observations of the Privy Council in Venkata Rao's case and regarding statutory rules as being administrative directions merely and the other applying the well-settled rules of construction and holding that the appropriate authority is bound to comply with the mandatory provisions of the rules in making an enquiry under a particular statute.
(22) In Executive Committee of U.P. State Warehousing Corporation v.Chandra Kiran Tyagi 1969 S.L.R. 799, (22) the Supreme Court observed at page 812 as follows :- "INthe instant case, a breach has been committed by the appellant of regulation 16(3) when passing the said order of dismissal, inasmuch as the procedure indicated therein has not been followed. The Act does not guarantee any statuory status to the respondent, nor does it impose any obligation on the appellant in such matters. As to whether the rules framed under section 52 deal with any such matters does not arise for consideration in this case as the respondent has not placed any reliance on the rules and he has rested his case only on regulation 16(3)".
(23) The general rule is well-established that delegated legislation made under a Parliamentary statute has the force of law. A contravention of its provisions would therefore be ultra vires in the same manner as a contravention of the statute under which such subordinate legislation was made. Public law remedies of declaration and mandamus would therefore be attracted by a violation of statutory rules, regulations including even a statutory departmental circular (Blackpool Corporation v. Locker 1943-1 K.B. 349) (23) and even of bye-laws in an appropriate case The question we are considering is however whether an exception is to be made to this rule when there is a contravention not of statutory rules but of regulations which merely formulate or standardise the conditions of a service contract. A breach of such conditions (though they may have a "strong statutory flavour" in the words of Barry J. in Barber's case referred to above) is more likely to be regarded as a breach of the service contract remediable by damages rather than as ultra vires action to be set aside by a declaration or mandamus. The reason lies in the nature of the regulations.
(24) In the hierachy of subordinate legislation, regulations made under a statute usually stand below the rules. (They require the previous approval of the Government, e.g. under section 54 of the Agricultural Produce (Development and Warehousing) Corporation Act. 1956 and section 49(2)(b) of the Life Insurance Corporation Act, 1956. They cannot be inconsistent with the rules). While the rules are generally made by the Government, the regulations are made by a body which is a creature of the statute itself with its powers limited by the statute. While the rules apply to all matters covered by the statute, the scope of the regulations is narrower being usually confined to internal natters of the statutory body such as the conditions of service of its employees, When the regulations standardise the conditions of service of the employees or purport to formulate them. their character is further diluted by the nature of the subject-matter. For. service or employment is basically a contract which is deeply rooted in private law. A mere standardisation or enumeration of the terms of a service contract is not, therefore, ordinarily sufficient to convert it into a statutory status. For, the statute itself is silent and does not confer any security of tenure on the employees. The Corporation has a complete discretion in framing the regulations and giving such protection there under to its employees as it thinks fit. The amount of the protection thus depends on their own discretion. It is not given by a mandatory statutory obligation imposed on the corporation from above. For, the corporation can vary the terms of the regulations at any time thus depriving its employees of the security of tenure of service. The matter is thus between the employee and the employer which is precisely the case of a service contract.
(25) The statutes and the ordinances under the Delhi University Act, 1922 are obviously more analogous to the regulations rather than to the statutory rules. For, like the regulations, they are also made by bodies which are themselves created by the Act. Indeed, some ordinances stand even lower than the regulations inasmuch as they are made in exercise of powers conferred by statutes. They are thus subdelegated legislation. Similarly, the model conditions of service of the teaching staff of the Colleges framed by the Executive Council under clause (ii)(b) of Statute 30(1)(C) the adoption of which is made a condition precedent to the recognition of the Colleges are also subdelegated legislation. A fortio therefore, it would appear that the termination of the service of a College lecturer, contrary to the provisions of the ordinance or the model conditions of service would be primarily a breach of contract of employment and not the breach of any mandatory statutory obligation imposed from above on the Colleges. But the view that subordinate legislation other than the statutory rules would not ordinarily convert a service contract into a statutory obligation is of a comparatively recent origin.
(26) In England, civil servants have always held their office during the pleasure of the Government. It is only comparatively recently in Vine v. National Dock Labour Board (1957) Appeal Cases 488(14) and in Ridge v. Baldwin (1964) Appeal Cases 40(8) that exceptions to the above rule were recognised in respect of those employees who have been given a statutory status and in respect of the holders of the statutory offices. In India, on the other hand, since the enactment of sections 240 and 241 of the Government of India Act, 1935. even the contravention of statutory rules such as the old rule 55 of the Civil Service (Classification, Control & Appeal) Rules as adapted and amended after the coming into force of the Government of India Act, 1935 and the Central Civil Service (Classification, Control & Appeal) Rules of 1957 and 1965, has been held to be ultra vires leading to the grant of relief of reinstatement. It was in this background that the contravention of subordinate legislation as distinguished from the statutory rules came to be considered.
(27) When therefore the services of a teacher in a college affiliated to the University of Saugar were terminated by the Governing Body of the college without holding an enquiry as required by Ordinance 20 framed unnder the Saugar University Act. 1946, the said lecturer filed a writ petition in the High Court of Madhya Pradesh for the grant of a writ of certiorari under Article 266 of the Constitution of India to quash the order of the Governing Body terminating his services and also for the grant of a writ of mandamus reinstating him to his post. The High Court thought that the conditions of service of the lecturer were governed not by the Ordinance but by the contract made between him and the Governing Body of the College, The High Court took the view that the provisions of the Ordinance were merely conditions prescribed for affiliation of colleges and no legal rights were created by it in favor of the lecturers of the affiliated colleges as against the Governing Body. The Supreme Court however disagreed with the High Court and observed in Prabhakar Ramakrishna Jodh v. A. L. Pande that the provisions of Ordinance 20 had the force of law. They conferred legal rights on the teachers of the affiliated colleges and did not merely regulate the mere legal relationship between the affiliated colleges and the University. The fact that clause 7 of the Ordinance provided that all teachers of affiliated colleges shall be appointed on a written contract did not mean that the teachers had merely a contractual remedy against the Governing Body of the college. On the other hand, the provisions of clause 8 of the Ordinance relating to security of the tenure of teachers were part and parcel of the teachers' service conditions and created legal rights in favor of the teachers. Their Lordships, therefore, set aside the judgment of the High Court and ordered that the case should be remanded to the High Court for investigating the question whether there was a violation of the procedure contained in Ordinance 20 and for final determination of the case in accordance with law.
(28) Following this decision, the orders terminating the services of a college teacher and of a University teacher respectively were quashed in two decisions of this Court-in Chatenva Mohan Gupta v. Principal, Deshbandu Gupta College (Civil Writ 30 of 1968 decided on 3-1-1969) (25) and in Shital Prasad Tyagi v. The Principal, Central Institute of Education on the ground that these orders were in contravention of the University Ordinances.
(29) All the three decisions were strongly relied upon by the petitioner. With great respect, however, it may be pointed out that in none of these decisions, the rule embodied in section 14(1)(b) of the Specific Relief Act, 1963 that a contract of service cannot be specifically enforced had come up for consideration. Consequently, the further question whether termination of the services of an employee contrary to regulations only as distinguished from legislative enactments and statutory rules was primarily' a breach of contract as distinguished from the violation of a mandatory statutory obligation was also not considered. Recently, however, in S. R. Tewari v. District Board, Agra , the question of the wrongful termination of the services of an employee who is not a Government servant and the relief which could be given in such a case was considered from this new angle. But it is in the more recent decision of the Supreme Court in Executive Committee of U.P. State Warehousing Corporation v. Chandra Kiran Tyagi 1969 S.L.R. 799, that this new approach has found a full expression which made us reconsider the whole question and necessitated this reference to the Full Bench. The dismissal of an employee of the State Warehousing Corporation in violation of the rule of natural justice embodied in regulation 16(3) of the Regulations made by the Corporation under section 54 of the Agricultural Produce (Development and Warehousing) Corporation Act, 1956, laying down the conditions of service of the employees of the Corporation was held by their Lordships to amount only to a breach of contract as distinguished from a breach of a mandatory obligation imposed on the Corporation by a statute. It is necessary to know precisely the ratio of this important decision. The primary distinction forcefully brought out by this decision is between the breach of a mere contract of service and the breach of a mandatory statutory obligation imposed on the employer from above. The Agricultural Produce (Development and Warehousing) Corporation Act, 1956 which created the State Warehousing Corporations did not make any provision whatever regarding the tenure of service of the employees of such Corporations. No obligation by the statute was thus imposed on the Corporation in this respect. The regulations, the nature of which has been considered above, were not regarded as a mandatory statutory obligation imposed on the Corporation. The breach of the regulations involved in the termination of the services of the employee was therefore wrongful only in the sense amounting to a breach of contract of service. As such wrongful termination did not amount to the breach of any mandatory statutory obligation by the Corporation the employee was not entitled to reinstatement. By distinguishing their previous decision in Life Insurance Corporation of India v. Sunil Kumar Mukherjee , on the ground that the protection to those employees of the Life Insurance Corporation of India who were previously serving other insurers who merged with the Life Insurance Corporation was given by section 11 of the Life Insurance Corporation Act, 1956 itself as distinguished from the regulations framed under section 49(2)(b) thereof, their Lordships impliedly confirmed the view that a mere breach of the regulations framed by the Life Insurance Corporation of India under section 49(2)(b) of the Life Insurance Corporation Act, 1956, did not constitute the breach of a mandatory statutory obligation but only a breach of service contract as was held in Ram Babu Rathaur- v. Divisional Manager, Life Insurance Corporation of India , a decision referred to with approval by the Supreme Court in S. R. Tewari v. District Board, Agra , and in Pramodrai Shamldas Bhavsar v. Life Insurance Corporation of India . We have already found above that the Statutes and the Ordinances framed under the Delhi University Act, 1922 were analogous to such regulations and some of these Ordinances stood even lower than the regulations as they were sub-delegated legislation.
(30) In Shri B. S. Puri v. Shri L. C. Gupta (Regular Second Appeal No. 120 of 1968 decided on 29th May 1970) a Division Bench of this Court (H. R. Khanna C.J. and Prakash Narain J.) followed the Supreme Court decision in Chandra Kiran Tyagi's case and rejected the prayer for reinstatement by an employee of the Delhi University as such an employee was not alleged to be holding any statutory post and as it was not shown that there was any breach of mandatory obligation imposed by any statute as distinguished from the breach of some rules or regulations in the termination of his employment. It was pointed out that the alleged violation of rules or regulations governing the contract of service of the petitioner would only enable him to take action in damages.
(31) It is true that the relief of reinstatement can be granted by the industrial tribunals and the arbitrators under the Industrial Disputes Act, 1947 to ordinary workmen employed in industry. But the reason for this is not that the law is changed or that a statutory exception to the legal position stated above has been made. The reason is that the industrial tribunals and the arbitrators are not courts. They are, therefore, able to bring about peace in industry and settle the industrial disputes according to broader concepts of justice and equity without being fettered by the ordinary law of master and servant as was pointed out by the Federal Court in Western India Automobile Association v. The Industrial Tribunal, Bombay 1949 L.L.J. 245 at 256 and by the Judicial Committee of the Privy Council in United Engineering Workers' Union v. K. W. Devanayagam (1968) Appeal Cases 356, in dealing with the Ceylon Industrial Disputes Act, 1950 as amended by an Act of 1957. Incidentally, it may not be out of place here to point out that even the industrial adjudication has not escaped the impact of the new rule laid down by the Supreme Court in Chandra Kiran T yogi's case. For, the same Bench who decided that case, namely, Shelat and Vaidialingam, JJ., held in M/s. Hindustan Steels Ltd. v A. K. Roy , that even in industrial adjudication the tribunal cannot grant the relief of reinstatement mechanically in every case and must consider if in the particular case before it, the rule of reinstatement should be followed or whether an exception to this rule may be made and the relief of compensation instead of reinstatement should be granted.
(32) Looking now at the matter from the side of the nature of the public law remedies of declaration and mandatory injunction to obtain reinstatement, the law may be stated in the following words of Prof. S.A.de Smith: "THEcourt will not declare a wrongful dismissal from private employment to be invalid; for dismissal effectively terminates the employment even though it gives rise to a right of action for breach of contract. But it is the function of . the courts to keep public authorities within the limits of their statutory powers; if, therefore, a public authority purports to dismiss an employee otherwise than in accordance with mandatory procedural requirements, or on grounds other than those expressly sanctioned by statute, the courts have jurisdiction to declare its act to be a nullity, and they have exercised that jurisdiction in cases where damages have not been an adequate remedy. Even where the statutory power of dismissal has not been made subject to express procedural requirements or limited to prescribed grounds the courts may declare that it has been invalidly exercised if the authority has failed to observe the rules of natural justice (assuming that 'they are applicable) or has acted capriciously or in had faith or for impliedly unauthorised purposes. However, the courts may still be disinclined to award declaratory relief in a case where the relationship, although regulated by statute, approximates to an ordinary contarctual relationship between employer and employee. The more closely the relationship approximates to one in which a special status is conferred upon the employee, the more readily are they likely to be persuaded to grant a declaration in favor of a wrongfully dismissed employee". (Judicial Review of Administrative Action, Second Edition, pages 509 and 510).
(33) Even where an employee does not hold a statutory office as such,his tenure may get protection because a statutory obligation has been imposed on his employer even though such an employer may not be a statutory authority. This was recognised by the Supreme Court in Praga Tools Corporation v. C. A. Imanual . Citing 11 Halsbury's Laws of England 52 at page 539 of the report, the Court observed that it was necessary that a person or authority on whom the statutory duty is imposed must be a public official or an official body. Mandamus can issue, for instance, to an official of a society to compel him to carry out the terms of the statute under or by which the society is constituted or governed and also to companies or corporations to carry out duties placed on them by the statutes authorising their undertakings. A mandamus would also He against a company constituted by a statute for the purpose of fulfillling public responsibilities.
(34) The difficulty of determinaton in a particular case whether the service of an employee is governed by contract or whether it has become a legislative status by virtue of a statute has frequently arisen in the State Courts of the United States of America. Various statutes of State Legislature have been passed to protect the tenure of service of teachers of schools and colleges in the States. Article I section 10 of the Constitution of the United States prohibits a State Legislature from passing any law which would impair the obligation of a contract. If the tenure of service is a matter of such a contractual obligation, then it is immune from being impaired by subsequent legislation. On the other hand, if the conditions of service have not become a contract but are governed merely by a statute then such a statute can be subsequently amended or repealed by the Legislation.
(35) The opinion of the Court and the dissenting opinion in State of Indiana Ex. Rel. Dorothy Anderson v. Harry Brand, 303 U.S. 95- 82 Lawyers' Edn. 685 (1938) bring out the divergent views which can arise in deciding such question. After reviewing many such divergent decisions, however, a learned author (Bertrom H. Lebeir) arrives at the following conclusion in (1938-39) 37 Michigan Law -Review 430 at 433 : "DESPITEthe permanency of tenure afforded by the statutes, the teachers' position is an employment and not an office, the effect of the statute being merely to annex to the contract of employment certain legal consequences and not to make the relation any the less one originating in contract".
(36) It is in the light of the above legal position that we have to determine whether the employment of a Lecturer in a College functioning under the Delhi University is dominantly contractual or whether the nature of the employment has been transformed into a status or into an office by statute or subordinate legislation. Section 45(1) of the Delhi University Act requires that every salaried officer and teacher of the University shall be appointed under a written contract. The intention of the Legislature therefore was to make their employment purely contractual. The Legislature did not itself regulate the terms of such employment at all. The conditions of the service of the College appointed teachers like the petitioners are governed by the resolution of the Executive Council framing the model conditions of service under Statute 30(1)(C) and by Ordinance xviii framed under clause (5) of Statute 30. The resolution of the Executive Council in laying down the conditions of service of teachers can hardly be said to be a legislative act. The power of the Executive Council is itself derived from Statute 30(1)(C) which in its turn has been made under section 28 of the Delhi University Act. The resolution of the Executive Council can be changed or modified by the same body. It lays down conditions for the recognition of a College. The conditions of service of the teaching staff of such a College is one such condition for recognition. Ordinance xviii is also primarily concerned with the recognition of a College and the conditions of service of the teaching staff is a condition of such recognition. These provisions may create legal rights in the teachers as observed by the Supreme Court in P. R. Jodh v. A. L. Panda referred to above. The University may refer the dispute between a teacher and the Governing Body of a College to the arbitration of an appeal committee and the decision of such arbitrators would be binding on both the parties and would be honoured by them. A College not honouring such decision would be liable to be de-recgnised. But the arbitrators cannot grant the relief of reinstatement as was held in Dr. S. Dutt v. University of Delhi , which again emphasises the contractual status of the University and College teachers. A teacher whose services are terminated contrary to these provisions may also sue for damages. All this is consistent with the conditions of service of the teacher being dominantly contractual. For, the conditions of service are only standardised by these provisions so that all the College-appointed teachers may have the same conditions of service.
(37) Further, the conditions of service of University teachers framed by the Executive Council in Ordinance Xii are those between an employer and an employee. The University can change these conditions at any time and the employees cannot object to such a change. The nature of these conditions is therefore apparently contractual and the statutory regulation only makes them standardised. The employment of its teachers by the University does not stand on a higher footing than the employment of its employees by the State Warehousing Corporation or by the Life Insurance Corporation. For the same reason, the employment of the teachers by Colleges functioning under the University also stands on the same footing as the employment of its own teachers by the University. There is no mandatory obligation cast by statute on the University in regard to its own employees and teachers. It is true that the Colleges are required to abide by the terms and conditions of service and Ordinance xviii to obtain recognition. But these conditions of service and Ordinance xviii can hardly be said to be a mandatory obligation imposed by statute on the Collges. The Ordinance xviii is subordinate legislation which is on the lowest rung of the legislative hierarchy. Its quality and force is, therefore, very attenuated. Ordinance xviii may be law but it cannot be said to impose a mandatory obligation by way of a statute on the Colleges. We, therefore, hold that the teachers of the Colleges functioning under the Delhi University are governed by conditions of service which are dominantly contractual. The teachers do not hold a statutory office and have not been given a legislative status. The termination of the services of a teacher in contravention of model conditions of service and Ordinance xviii cannot be said to be the violation of a mandatory statutory obligation. Remedy for such wrongful termination is, therefore, by way of damages and not by way of reinstatement.
(38) It is to be regretted that while the tenure of service of Government servants is protected by Article 311 and while even the industrial employees can obtain such protection in industrial adjudication, the highly educated class of college teachers (including the petitioner who is specially distinguished as a Muslim scholar in the field of Sanskrit studies and as such a living symbol of national integration) are found not to enjoy such statutory protection. The remedy, however, lies with the Legislature.
(39) The writ petition is, therefore, dismissed but in the circumstances we make no order as to costs.