31 March 1998
Supreme Court
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THE STATE OF PUNJAB Vs GURDAS SINGH

Bench: SUJATA V. MANOHAR,S.P. KURDUKAR,D.P. WADHWA
Case number: Appeal Civil 2978 of 1991


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PETITIONER: THE STATE OF PUNJAB

       Vs.

RESPONDENT: GURDAS SINGH

DATE OF JUDGMENT:       31/03/1998

BENCH: SUJATA V. MANOHAR, S.P. KURDUKAR, D.P. WADHWA

ACT:

HEADNOTE:

JUDGMENT:                             With                CIVIL APPEAL NO. 3668 OF 1991                       J U D G M E N T Wadhwa, J.      These are  two cross appeals, both against two separate judgments of  Punjab and Haryana High Court arising out of a judgment of  the Additional District Judge, Gurdaspur passed in appeal  filed by  the State  of Punjab and also by Gurdas Singh. The  judgment of  the High Court in the appeal of the State of  Punjab is  dated January  25, 1991 and that in the appeal of Gurdas Singh, it is dated March 3, 1991.  Both the appeals were dismissed by the High Court in limine.      Gurdas Singh,  respondent in  Civil Appeal  No. 2978 of 1991 was  recruited as  Constable  in  1961  in  the  Punjab Police. In  1976 he was promoted as Asstt. Sub-Inspector and in 1984  as Sub-Inspector.  By order dated September 3, 1987 of the  Senior Superintendent of Police, passed in pursuance to Rule  3(1) (b)  of the  Punjab Civil  Services (Premature Retirement) Rules, 1975, he was prematurely retired from the service. At  that time  he was  holding substantive  rank of Sub-Inspector of  Police  and  had  completed  25  years  of qualifying service  as on February 3, 1986. This order reads as under :-      "office     of      the      Senior      Superintendent of Police, Gurdaspur                O R D E R           Whereas you, Shri Gurdas Singh      Sub   Inspector   of   Police   No.      1151/Jull of  this  district,  have      completed   25   years   qualifying      service on 3.2.1986.      2. And  whereas on consideration of      your record  I am  of  the  opinion      that it  is in  public interest  to      retire     you     from     service      prematurely.      3. Now,  therefore, in pursuance of      Rule 3(1)  (b) of  the Punjab Civil      Services   (Premature   Retirement)      Rules, 1975  it is ordered that you

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    will  retire   from  service   with      effect  from  3rd  September,  1987      afternoon.      4. You  are further  informed  that      you will be entitled to claim a sum      equivalent to  the amount  of  your      pay  and  allowances  at  the  same      rates  on  which  you  are  drawing      immediately  before   the  date  of      retirement in  lieu of three months      notice period.                   Sd/-         Sr. Superintendent of Police            Gurdaspur 3.9.87" Gurdas Singh  filed appeal  under the relevant service rules against the  order prematurely retiring him from service but the same  was rejected  by the  Deputy Inspector  General of Police, Jalandhar  Range, Jalandhar  Cantt. by  order  dated November 18,  1987. The  relevant portion  of the  order  in appeal reads as under :-      2.   I    have    considered    his      representation    alongwith     the      premature  retirement   papers  and      also examined  his service  record.      The representationist  came  to  be      adversely  commented  upon  in  his      ACRs for  the period from 1.4.78 to      30.9.78,   1.4.79    to    30.9.79,      18.6.84, to 30.9.84, and 18.6.84 to      31.3.95  by   different   Reporting      Officer for being dishonest and  of      shady character.  I  have  examined      the  pleas   put   forth   by   the      representationist,  which  are  not      convincing  and  are  vague.  I  am      satisfied  that   he  was   rightly      retired prematurely. In view of the      above discussion,  I hereby  reject      his representation."      Thereafter Gurdas  Singh filed a civil suit on February 25, 1988  challenging  his  premature  retirement  from  the service and  for quashing the orders dated September 3, 1987 and that dated November 18, 1987 being illegal and void. The suit was decreed in favour of Gurdas Singh by judgment dated June  14,   1989  of   the  subordinate  Judge,  1st  Class, Gurdaspur.  The   State  of  Punjab  appealed  against  that judgment and  decree. By  Judgment  dated  August  10,  1990 Additional District  Judge, Gurdaspur, dismissed the appeal. He,  however,   held  that   Gurdas  Singh,  Plaintiff,  has succeeded on  ultra-technical point  on the  failure of  the defendants to  produce proof of their having conveyed to him two adverse entries. it was, therefore, directed that Gurdas Singh would  not get  any arrears of pay w.e.f. September 3, 1987 to June 14, 1989 when his suit was decreed by the trial court. Both  the State  of Punjab  and  Gurdas  Singh  filed appeals in  the High Court. While the appeal of the State of Punjab was  dismissed by the impugned judgment dated January 25, 1991,  that filed  by Gurdas  Singh was  dismissed by  a judgment dated  March 6,  1991. State of Punjab is aggrieved that the  order prematurely  retiring Gurdas  Singh has been upset. Gurdas  Singh is  aggrieved that  he has  been denied salary for a certain period.      The grounds  on which  the order  prematurely  retiring Gurdas Singh  was set  aside was  that his record of service prior to  his promotion to the rank of Sub-Inspector that is

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earlier to  the year  1984 could not been taken into account and that  two adverse  entries in  his confidential  dossier record recorded  after 1984 were not communicated to him and those could  not form  basis for  his premature  retirement. When leave  in the Special Leave Petition filed by the State of Punjab  was granted on July 19, 1991, this Court recorded as under :-           "The learned  counsel for  the      petitioners strongly  relies on the      decision in Union of India Vs. M.E.      Reddy: 1980(1)  SCR 736,  while Mr.      Ujagar  Singh  refers  to  a  later      decision in  Brij Mohan  Chopra Vs.      State of Punjab: 1987(2) SCR 583.           Special Leave  is granted. Let      the appeal  be placed  for  hearing      before a  larger bench.  During the      pendency of  the appeal   operation      of the impugned order shall  remain      stayed."      Rule 3  of Punjab Civil Services (Premature Retirement) Rules, 1975  under which  action was  taken  against  Gurdas Singh and Rules 4 and 5 are as under :-      "3. Premature  Retirement -  (1)(a)      The appropriate authority shall, if      it is  of the opinion that it is in      public interest  to do so, have the      absolute  right,   by   giving   an      employee prior  notice in  writing,      to retire that employee on the date      on which  he completes  twenty-five      years  of   qualifying  service  or      attains fifty  years of  age or  on      any date thereafter to be specified      in the notice.      (b) The period of such notice shall      not be less than three months :           Provided that  where at  least      three months’  notice is  not given      or notice  for a  period less  than      three months in given the employees      shall be  entitled to  claim a  sum      equivalent to the amount of his pay      and allowances,  at the  same rates      at  which   he  was   drawing  them      immediately  before   the  date  of      retirement, for  a period  of three      months or,  as the case may be, for      the period  by  which  such  notice      falls short of three months.      (2) Any  Government  employee  may,      after giving at least three months’      previous notice  in writing  to the      appropriate authority  retire  from      service on  the date  on  which  he      completes  twenty   five  years  of      qualifying service or attains fifty      years  of   age  or   on  any  date      thereafter to  be specified  in the      notice :           Provided  that   no   employee      under suspension  shall retire from      service except  with  the  specific      approval   of    the    appropriate      authority.

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    4. Retiring  pension and gratuity -      A retiring  person  and  death-cum-      retirement   gratuity    shall   be      granted to  a  Government  employee      who  retires   or  is  required  to      retire under rule 3.      5.   Overriding    effect   -   The      provisions  of  these  rules  shall      have  effect   notwithstanding  any      thing    inconsistent     therewith      contained in  any other  rules  for      the time being in force."      It will  be thus  seen that  these Rules  give absolute right to retire any Government employee on the date on which he completes  twenty-five years  of  qualifying  service  or attains fifty  years of  age or as on any date thereafter to be specified  in the  notice by  giving that  employee prior notice of  three months  in writing.  This right  has to  be exercised if  in the opinion of the appropriate authority it is in  public interest  to retire  any  employee  under  the Rules.      Mr. Sodhi,  learned counsel  for the  State of  Punjab, submitted that  primary anxiety of the Government is, in the interest of  administrative efficiency,  to ensure that dead wood or  more precisely  the  inefficient  and  the  corrupt element should  be weeded  out from  the service  and it was with that  end in  view that Punjab Civil Service (Premature Retirement) Rules, 1975 have been notified on July 28, 1975. He said  action to  retire Gurdas  Singh in the present case has been  taken judiciously in order that public interest is really served  by prematurely  retiring him.  Whole  of  his record of  service has  been taken  into consideration. Both the appropriate  authority retiring  him and  the  appellate authority have  applied their mind in proper perspective. He said that  the  issue  whether  two  adverse  entries  after promotion of Gurdas Singh were communicated to him or not is not very  material in  view of  the law  laid down  by  this Court.      Mr. Ujagar  Singh, learned counsel appearing for Gurdas Singh, submitted  that it  was incumbent  on the authorities concerned to  communicate to  Gurdas Singh any adverse entry in his  record of  service as  required by Rule 13.17 of the Punjab Service  Rules. Chapter  XIII of  the Punjab  Service Rules deals  with promotion.  In the present case we are not concerned  with   the  rules   relating  to   promotion   or communication of adverse entries in the confidential records of the  police officer.  Rule 5  of  Punjab  Civil  Services (Premature Retirement) Rules, 1975 has overriding effect. we have only  to see  if action  has been  taken against Gurdas Singh in accordance with Rule 3 of these Rules.      In Union of India vs. M.E. Reddy and Anr. (1980 (1) SCR 736), respondent was compulsorily retired from service by an order made  under Rule  16(3)  of  the  All  India  Services (Death-cum-Retirement)  Rules,  1958.  This  Rule  reads  as under:-           "16(3) The Central Government,      in  consultation   with  the  State      Government, may require a member of      the Service  who has  completed  30      years of  qualifying service or who      has attained the age of 55 years to      retire  in   the  public   interest      provided  that   at   least   there      months’ previous  notice in writing      will  be   given  to   the   member

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    concerned." The Court  noted that the Rule gave an absolute right to the Government of  India and  not  merely  the  discretion  and, therefore,  impliedly  it  excludes  the  rules  of  natural justice. The Court then observed as under :-      "It is  now well  settled by a long      catena of authorities of this Court      that  compulsory  retirement  after      the   employee   has   put   in   a      sufficient  number   of  years   of      service having  qualified for  full      pension is neither a punishment nor      a  stigma  so  as  to  attract  the      provisions of  Art. 311  (2) of the      Constitution.  In  fact,  after  an      employee has  served for  25 to  30      years  and   is  retired   on  full      pensionary benefits,  it cannot  be      said  that   he  suffers  any  real      prejudice. The  object of  the Rule      is to  weed out  the dead  wood  in      order to  maintain a  high standard      of efficiency and initiative in the      State Service.  It is not necessary      that a good officer may continue to      be efficient for all times to come.      It may  be that  there may  be some      officers who  may possess  a better      initiative and  higher standard  of      efficiency and  if given chance the      work of  the Government  might show      marked improvement.  In such a case      compulsory retirement of an officer      who fulfills the conditions of Rule      16 (3)  is  undoubtedly  in  public      interest and  is not  passed by way      of punishment. Similarly, there may      be  cases   of  officers   who  are      corrupt or  of  doubtful  integrity      and who  may be  considered fit for      being   compulsorily   retired   in      public interest,  since  they  have      almost reached the fag end of their      career and  their retirement  would      not cast  any aspersion nor does it      entail any  civil consequences.  Or      course, it may be said that if such      officers were  allowed to  continue      they would  have drawn their salary      until the usual date of retirement.      But this  is not  an absolute right      which can  be claimed by an officer      who has  put in 30 years or service      or  has  attained  the  age  of  50      years. Thus  the general impression      which is  carried by  most  of  the      employees      that      compulsory      retirement under  these  conditions      involves some  sort of  stigma must      be completely  removed because rule      16(3) does nothing of the sort." This court  also considered the arguments of respondent that the order  was based  on  material  which  was  non-existent inasmuch as there were no adverse remarks against him and if there were  any such  remarks in his confidential reports it

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should have  been communicated  to him  under the Rules. The Court said :-      "This  argument,  in  our  opinion,      appears to  be based  on a  serious      misconception. In  the first place,      under  the  various  rules  on  the      subject it  is  not  every  adverse      entry or  remarks that  has  to  be      communicated   to    the    officer      concerned. The superior officer may      make    certain    remarks    while      assessing the  work and  conduct of      the subordinate  officer  based  on      his   personal    supervision    or      contact. Some  of these remarks may      be  purely  innocuous,  or  may  be      connected with  general  reputation      of  honesty  or  integrity  that  a      particular officer  enjoys. It will      indeed   be    difficult   if   not      impossible  to  prove  by  positive      evidence that  a particular officer      is dishonest  but those who has had      the  opportunity   to   watch   the      performance  of  the  said  officer      from  close   quarters  are   in  a      position to  know  the  nature  and      character   not    only   of    his      performance   but   also   of   the      reputation that he enjoys. The High      Court has also laid great stress on      the fact  that as  adverse  entries      had not been communicated to Reddy,      therefore, the  order  impugned  is      illegal. We  find ourselves  unable      to agree with the view taken by the      High court" In Brij Mohan Singh Chopra vs. State of Punjab (1987 (2) SCR 583), this  Court adopted a somewhat different approach. The judgment in  the case of M.E. Reddy was not noticed. In this case the  Court held that it would be unjust and contrary to the principles  of natural  justice to  retire prematurely a Government employee  on the  basis of  adverse entries which were either  not communicated  to him  or  if  communicated, representation  made   against  those   entries   were   not considered and  disposed of.  This  judgment  given  by  Two Judges Bench  has been expressly overruled by a Three Judges Bench judgment  of this Court in Baikuntha Nath Das and Anr. vs. Chief  District Medical Officer, Baripada and Anr. (1992 (2) SCC  299). The  question for  consideration before  this Court in  this latter case was whether it was permissible to the  Government   to  order   compulsory  retirement   of  a Government servant  on the basis of materials which included uncommunicated  adverse   remarks.  This   Court  considered various judgments  on  the  issue  and  laid  the  following principles :-      "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           government  on   forming   the

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         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           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 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." Same view  was again  affirmed in another Three Judges Bench judgment of this Court in Poss and Telegraphe Board and Anr. vs. C.S.N. Murthy (1992 (2) SCC 317).      In Union  of India  vs. V.P. Seth (AIR 1994 SC 1261), a

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decision to  retire respondent  was taken  on his completing fifty years of age and after perusing his record of service. He  challenged   this  order   under  Section   19  of   the Administrative  Tribunals   Act,  1985  before  the  Central Administrative Tribunal,  Jabalpur Bench.  The Tribunal  set aside the  order of  premature retirement on the sole ground that certain adverse remarks made in the Confidential Report of the  respondent had not been conveyed to him and yet they were taken into consideration in passing the impugned order. The stand  of the  Union of India was that the entire record of  service   of  the   respondent  had   been  taken   into consideration and  it was  realised that  his integrity  was suspect and,  therefore, decision  was taken to compulsorily retire him from service. This Court noticed that it would be clear  that   on  overall  assessment  of  the  officer  his integrity was  found to  be suspect  and, therefore,  it was decided to  exercise the power of compulsory retirement. The Tribunal, however,  came  to  the  conclusion  that  as  the adverse  remarks   of  1985-86  and  1986-87  had  not  been communicated  and   as  the   earlier  adverse   remarks  in connection  with  the  integrity  of  the  respondent  stood eclipsed by  his subsequent promotions, the authorities were not  justified   in  terminating  his  services  by  way  of compulsory retirement.  Relying on  two  decisions  of  this Court in  Baikund Nath  Das and  C.S.N.  Murthy  this  Court observed that  the position  of law has been settled and the order of  the Tribunal  could not  be sustained  as the same runs counter  to the  principles laid  down in  the said two decisions.      The facts in the present case are quite similar to that in Union  of India  vs. V.P. Seth. Here also the only ground on which the order prematurely retiring Gurdas Singh was set aside was  that two adverse entries after his promotion from the rank  of Asstt.  Sub-Inspector to sub-Inspector were not communicated to him and earlier adverse entries could not be taken into  account because  even when  those existed Gurdas Singh had  earned his  promotion. It is not necessary for us to   again reiterate  the principles  where the  Court  will interfere  in  the  order  of  premature  retirement  of  an employee as  these have  been accurately set down by various pronouncements   of this  Court and  particularly in Baikund Nath Das  case. Before  the decision to  retire a Government servant prematurely is taken the authorities are required to consider the  whole record  of service.  Any  adverse  entry prior to earning  of promotion or crossing of efficiency bar or picking  up higher rank is not wiped out and can be taken into consideration while considering the overall performance of the  employee during  whole  of  his  tenure  of  service whether it  is in  public interest  to  retain  him  in  the service. The  whole record  of service  of the employee will include any uncommunicated adverse entries as well.      We are,  therefore, of  the view that the suit filed by Gurdas Singh  had no merit and the issue whether order dated September 3, 1987 of his premature retirement and that dated November 18,  1987 dismissing the appeal as illegal and void was wrongly  decided in his favour. We, therefore, allow the appeal filed  by the  State of  Punjab and dismiss the  suit filed by Gurdas Singh. In consequence appeal filed by Gurdas Singh is  also dismissed.  There shall  be no  order  as  to costs.