27 August 1997
Supreme Court
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UNION OF INDIA & ANOTHER Vs G. GANAYUTHAM

Bench: SUJATA V. MANOHAR,M. JAGANNADHA RAO
Case number: Appeal Civil 524 of 1988


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PETITIONER: UNION OF INDIA & ANOTHER

       Vs.

RESPONDENT: G. GANAYUTHAM

DATE OF JUDGMENT:       27/08/1997

BENCH: SUJATA V. MANOHAR, M. JAGANNADHA RAO

ACT:

HEADNOTE:

JUDGMENT:                       J U D G M E N T M. JAGANNADHA RAO,J.      This is  an appeal  by  the  Union  of  India  and  the Collector of  Central Excise  against the  judgment  of  the Central Administrative  Tribunal in  Tr.  A.No.660  of  1986 dated  5.12.1986   allowing  the   petition  filed   by  the respondent.      The respondent was working as Superintendent of Central Excise.   While so, on 14.11.1977, was served with a memo of eight charges  and an  inquiry was  conducted.   The Inquiry Officer submitted  a  report  dated  17.5.1978  stating  hat charge No.4  was not  proved, charge NO.8 was partly proved, and other  charges were held proved.  The respondent retired from service  on 31.5.1978.    A  show  cause  notice  dated 18.3.1982 was  issue under  Rule  9  of  the  Central  Civil Services  (pension)  Rules,  1972  (hereinafter  called  the ’Rules’) proposing  withdrawal of  full pension and gratuity admissible  to   the  respondent  on  the  ground  that  the Government suffered  substantial loss  of revenue due to the misconduct of  the respondent.   The respondent submitted an explanation.    The  Union  Public  Service  Commission  was consulted and  the Commission felt that charges 4 and 6 were not proved  but concurred  with the  findings of the Inquiry Officer on other charges.  based on the Commission’s advice, a penalty  of withholding  50% of  the pension  and  50^  of gratuity was  awarded to  the  respondent  by  orders  dated 8.5.1984.   Questioning the  same, a writ petition was filed by the  respondent in  the High  Court of  Madras which  was later  transferred   to  the  Tribunal.  After  hearing  the respective counsel  for the  parties, the  Tribunal  held by judgment dated  5.12.1986 that under Rule 9 of the Rules the competent authority  could  not  withdraw  any  art  of  the gratuity inasmuch  as the  said provision referred merely to withholding of  pension and  not gratuity.  It held that the definition of  ’pension’  in  rule  3(1)(o)  which  included gratuity was  not applicable for purposes of Rule 9.  So far as the  penalty  of  withholding  50%  of  the  pension  was concerned, it  held that  the punishment  awarded  was  ’too severe’, that  the lapses  were  procedural,  there  was  no collusion between  the respondent  and any  party, that  the

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officer had otherwise done excellent work and, therefore, it was a  fit case  where the withholding of pension of 50% had to be  restricted for  a period  of 10 years instead of on a permanent basis.      Aggrieved by  the said  decision of  the Tribunal,  the Union of  India  and  the  Collector,  Central  Excise  have preferred this  appeal. During  the pendency of this appeal, the respondent  died and his legal representatives have been bought on record.      It  was  contended  by  the  learned  counsel  for  the appellants that  the Tribunal  was wrong  in law  in holding that the  power to withhold ’pension’ as specified in rule 9 did not  include the  power to withhold the whole or part of the gratuity.   It  was argued that under Rule 3(1)(o)), the word ’pension’  is defined  to include the ’gratuity’ except when the  term ’pension’  is used  in  contradistinction  to gratuity and that in Rule 9 there is no question of the word ’pension’ being  used in  contradistinction gratuity.   This point, according  to the  appellant’s counsel  is covered by the judgment  of this  Court in Jarnail Singh vs. Secretary, Ministry of  Home Affairs [1993 (1) SCC 47] in favour of the appellant and against the respondent.  It was also contended that the  Tribunal ought  not to have gone into the question as to  whether the  punishment of  withholding  50%  of  the pension and  gratuity was  commensurate with  the gravity of the misconduct  proved and  that this amounted to going into the  ’proportionality’  of  the  punishment  which  was  not permissible in  law.   The charges  proved showed  that  the conduct of  the respondent related to loss of revenue to the government and  that the  competent authority  had  taken  a ’reasonable’ decision  as to  quantum of punishment weighing all the  relevant factors  and  the  decision  of  the  said authority could  not be  said to  be one which no reasonable person could have reasonably taken.  In any event, there was also no  finding by the Tribunal that the punishment imposed was ’shockingly’ disproportionate to the gravity of charges. In Ranjit  Thakur Vs.  Union of  India [1987  (4) SCC  611], though the  principle of  ’proportionality’ was referred to, still it  was only  after arriving  at a  finding  that  the punishment was ’shockingly’ disproportionate that this Court interfered with  the punishment  and that  too under Article 136 of the Constitution of India.      Learned counsel  for the  respondent  could  not  place before us  any other  decision to persuade us to take a view different from  the  view  taken  in  Jarnail  Singh’s  case (supra). So  far as the punishment was concerned, the argued that the  Tribunal felt  that the  punishment was far severe having regard  to the  charges proved  and it  was, in those circumstances, permissible  for the  Tribunal  to  interfere with the quantum of punishment.  Learned counsel relied upon the decision  of this  Court in  State  of  Maharashtra  vs. M.H.Mazumdar [1988  (2) SCC 52] where, on facts, it was held that withdrawing  50% of  the pension  permanently was harsh and the  matter was remanded by this Court to the Government for fresh consideration of the quantum of punishment.      The following points arise for consideration. (1)  Whether while  interpreting Rule 9 of the Central Civil Services (Pension)  Rules, 1972  in regard  to withdrawal of whole or  part of  pension, it  is permissible  to apply the definition of ’pension’ in rule 3 and hold that under Rule 9 death-cum-gratuity could also be withdrawn wholly r in part? (2)  Whether it  is permissible for the Court or Tribunal to interfere with  the quantum  of punishment  imposed  by  the competent authority on the ground that it was too severe and hence ’disproportionate’  to  the  gravity  of  the  charges

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proved?      Point No.1:  Rule 9  of the Rule refers to the power of the President  to  withhold  or  withdraw  pension,  whether permanently or  for a  specified period, and to the ordering of recovery  from the  pension, of  the whole or part of any pecuniary loss caused to the government, in any departmental or Judicial proceedings, if the pensioner is found guilty of grave misconduct  of negligence  during the  period  of  his service, including service rendered upon re-employment after retirement.   The proviso  requires that  the  Union  Public Service Commission  be consulted before any final orders are passed.   Rule 3 of the Rules defines ’pension’ as including ’gratuity’  except   when  the   term  pension  is  used  in contradistinction  to   gratuity.    In  Jarnail  Singh  vs. Secretary, Ministry of Home Affairs [1993 (1) SCC 47] it was held that  ’the term  ’pension’ used  in Rule  9(1) must  be construed to  include gratuity  since the  said word, in the context, was  not used  in constradistinction  to gratuity’. It was  further hold that the amendment made in Rule 9(1) by the Central  Civil Services (Pension) Third Amendment Rules, 1991 which  substituted the  words ’pension  or gratuity, or both’ in  the body  of Rule  9  was  clarificatory  and  was intended to remove the doubt created by certain decisions of the Court  rendered in  1990.   It was  also held that in an earlier decision  in D.V.Kapoor vs. union of India [1990 (4) SCC 314]  which took  a contrary  view, Rule 3(1)(o) was not brought to  the notice  of the  Court.  As to Jesuratnam vs. Union of  India, [1990  supp.SCC 640] it was said that there was no discussion in that case.      We may  also state  that subsequently, in State of U.P. vs. UP University Colleges Pensioners’ association [1994 (2) SCC  729],   the  decision   in  Jarnail  Singh’s  case  was distinguished as  the latter  was based  on rule  3.  In yet another case  in Sita  Ram Yadava  vs. union  of India [1995 Suppl. (4)  SCC 618],  special leave  was initially  granted because of  a contention  based on  D.V.kapoor’s  case  that gratuity could  not be  withdrawn, wholly  or partly,  under rule 9.  But at the time when the matter was disposed of, it was said  that inasmuch  as the  gratuity had  already  been released in full to the employee, it was not necessary to go into the  question whether  gratuity could be withheld under the Pension Rules.      We are  of the view that the last two decision, namely, State  of   UP  vs.   UP  University   Colleges  Pensioners’ Association [1994 (2) SCC 729] and Sita Ram yadava vs. Union of India  [1995 Suppl.  (4) SCC 618] do not, for the reasons stated above,  affect the ratio of the case in Jarnail Singh vs. Secretary,  Ministry of  Home Affairs [1993 (1) SCC 47]. Therefore, the  Tribunal was  wrong in  thinking that  under rule 9,  50% of  the gratuity  could not  be withheld.    We accordingly set  aside the  finding of  the Tribunal on this point.      Point 2;   The  point is whether judicial review powers in  administrative   law  permit  the  High  Courts  or  the Administrative  Tribunals   to  apply   the   principle   of ’proportionality?      Before we  refer to  the rulings  of this  Court on the question of  ’proportionality’  in  the  administrative  law sphere, we  shall refer  to the  leading cases in England on the question of judicial review of administrative action.      The Wednesbury Case (1948):      This case  is treated  as  laying  down  various  basic principle relating  to judicial  review of administrative or statutory discretion.   Before  summarising the substance of the Principles laid down there we shall refer to the passage

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from the  judgment of  Lord Greene  in Associated Provincial Picture Houses  Ltd. vs.  Wednesbury Corporation  [9148  (1) K.B. 223(p.229)].  It reads as follows;      "It is true that discretion must be      exercised  reasonably.    Now  that      does that  mean?   Lawyers familiar      with  the   phraseology   used   in      relation to  exercise of  statutory      discretions  often  use  the  words      ’unreasonable’    in    a    rather      comprehensive  sense.      It   has      frequently   been   used   and   is      frequently  been   used  and     is      frequently  used   as   a   general      description of the things that must      not  be  done.    For  instance,  a      person entrusted  with a discretion      must, so  to speak,  direct himself      properly in  law.  He must call his      own attention  to the matters which      he is  bound to  consider.  He must      exclude  from   his   consideration      matters  which  are  irrelevant  to      what he  has to  consider.   If  he      does not  obey those  rules, he may      truly be  said, and  often is said,      to   be    acting   ’unreasonably’.      Similarly, there  may be  something      so absurd  that no  sensible person      could even dream that it lay within      the powers  of the authority.... In      another,   it    is   taking   into      consideration  extraneous  matters.      It is  unreasonable that  it  might      almost be  described as  being done      in bad  faith;  and  in  fact,  all      these things run into one another"      Lord Greene also observed (p.230):      "...it  must   be  proved   to   be      unreasonable in  the sense that the      Court considers it to be a decision      that no  reasonable body  can  come      to.   it  is  not  what  the  Court      considers unreasonable...The effect      of the legislation is not to set up      the  Court  as  an  arbiter  of  he      correctness  of   one   view   over      another"      Therefore, to  arrive at a decision on ’reasonableness’ the Court  has to find out if the administrator has left out relevant factors  or taken  into account irrelevant factors. The decision  of the administrator must have been within the four corners  of the  law, and  not one  which  no  sensible person could  have reasonably  arrived at,  having regard to the above  principles, and  must have  been a  bonafide one. The decision  could be  one of  many  choices  open  to  the authority but  it was  for that authority to decide upon the choice and not for the Court to substitute its view.      The CCSU  Case(1985)  and  the  expectation  of  future adoption of proportionality:-      The principles  of judicial  review  of  administrative action wee  further summarised  in 1985  by Lord  Diplock in CCSU vs.  Minister for  Civil Services  [1985 (1) AC 374] as illegality, procedural  impropriety and  irrationality.   He said  more   grounds  could   in  future  become  available,

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including  the  doctrine  of  proportionality  which  was  a principle followed  by certain other members of the European Economic community.   Lord Diplock’ observed in that case as follows:      "...Judicial review  has  I  think,      developed to  a  stage  today  when      without reiterating any analysis of      the steps  by which the development      has    come    about,    one    can      conveniently classify  under  three      heads  the   grounds   upon   which      administrative action is subject to      control by  Judicial review.    The      first   ground    I   would    call      ’illegality’,      the       second      ’irrationality’   and   the   third      ’procedural impropriety’.   That is      not to say that further development      on a  case by case basis may not in      course of  time add  future of  the      principle   of   ’proportionality’,      which   is    recognised   in   the      administrative law  of  several  of      our fellow  members of the European      Economic Community......".      Lord Diplock explained ’irrationality’ as follows:      "By irrationality,  I mean what can      now be  succintly be referred to as      ’Wednesbury  unreasonabless’...  It      applies to  a decision  which is so      outrageous in its defiance of logic      or of accepted moral standards that      no sensible  person who had applied      his mind  to  the  question  to  be      decided could have arrived at"      In other  words, to  characterise  a  decision  of  the administrator as  ’irrational’ the  Court has  to  hold,  on material, that  it is a decision ’so outrageous’ as to be in total defiance  of logic  or moral  standards.   Adoption of ’proportionality’ into  administrative law  was left for the future.      Ranjit Thakur  vs. Union  of  India  (1987)  refers  to ’proportionality’:      The first  decision of this Court in administrative law which referred  to ’proportionality’  is the  one in  Ranjit Thakur vs.  Union of India [1987 (4) SCC 611].  In that case the appellant  was found guilty in Court Martial proceedings and a  punishment of  dismissal from service and sentence of imprisonment was  imposed as  permitted  by  the  Army  Act. While quashing  the said  punishment on  the ground  of  its being ’strikingly disproportionate’, this Court observed:      "The question  of  the  choice  and      quantum of punishment is within the      jurisdiction and  discretion of the      court martial.   But  the  sentence      has to  suit the  offence  and  the      offender.     It  should   not   be      vindictive or  unduly  harsh.    It      should not  be so  disproportionate      to the  offence  as  to  shock  the      conscience and  amount in itself to      conclusive evidence  of bias.   The      doctrine of proportioality, as part      of the  concept of judicial review,      would ensure that even on an aspect

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    which  is,  otherwise,  within  the      exclusive province  of  the  Court-      Martial, if  the  decision  of  the      Court even  as to  sentence  is  an      outrageous defiance  of logic, then      the sentence  would not  be  immune      from correction,  Irrationality and      perversity are  recognised  grounds      of judicial review".      It   is    clear    that    Ranjit    Thakur    treated ’proportionality’   as    part   of   judicial   review   in administrative law.   But it will also be noticed that while observing that  ’proportionality’ was  an aspect of judicial review, the  Court still referred to the CCSU description of irrationality -  namely, that  it should be in outrageous in defiance of  logic if  it was  to be  treated as irrational, Ranjit Thakur was followed in Ex.Naik Sardar Singh vs. union of India [1991 (3) SCC 213, again a case under the Army Act.      What it proportionality?      In R  vs. Goldstein  [1983 (1)  WLR  151  (157)],  Lord Diplock said:   "This  would indeed be using a sledge-hammer to crack a nut".  Sir John Laws (Judge of the Q.B. Division) has described  ’proportionality’ as  a  principle  here  the Court is      "Concerned with  the way  in  which      the decision-maker  has ordered his      priortities; the  very  essence  of      decision making consists surely, in      the   attribution    of    relative      importance to  the factors  in  the      case, and here is my point: This is      precisely what  proportionality  is      about"      He further says:      "What  is  therefore  needed  is  a      preparendness  to   hold   that   a      decision    which    overrides    a      fundamental      right      without      sufficient objective  justification      will,   as    a   matter   of   law      necessarily be  disproportionate to      the aims  in view... The deployment      of proportionality  sets  in  focus      the true  nature of  the  exercise;      the elaboration  of  a  rule  about      permissible priorities".      Desmith,  Woolf   and  Jowell,   (Judicial  Review   of Administrative Action (1995 5th ed., para 13.085 pp.601-605) point  out  that  ’proportionality’  used  in  human  rights context involves  a balancing  test and  the necessity test. The ’balancing  test’ means  scrutiny of  excessive  onerous penalties or  infringements of  rights or  interests  and  a manifest  imbalance   of  relevant   considerations.     The ’necessity test’  means that infringement of human rights in question must  be  by  the  least  restrictive  alternative. (Ranjit Thakur is quoted      (1) ’Is  the High  Court the  Guardian  of  Fundamental Constitutional Rights? (1993 P.L.. 59). in f.n.p.601).      Brind (HL)(1991) - administrative law - proportionality - debatable  in India  in cases  not  involving  fundamental freedoms:  Tata  Cellular  (SC)  (1994)  and  McDowell  (SC) (1996):      From 1985,  we proceed to the next decision rendered in 1991 by  the House  of Lords  in. R.  v. Secretary  for Home

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Dept. Ex.p.  Brind [1991  (1) AC 6961.  That decision stated that even  by 1991.   proportionality  had not  still become part of the Administrative law in England.  This was because the European  Convention of  Human  Rights  and  Fundamental Freedoms had  not been  expressly incorporated  into English law as  yet (See  Lord Bridge (p.748); Lord Roskill (p.750); Lord Templeman  (p.751) and  Lord Ackner  (p.763).    It  is sufficient to refer to what Lord Ackner stated:      "Unless   and    until   Parliament      incorporates  the  Convention  into      democratic law,  a course  which it      is well  known has a strong body of      support, there  appears to me to be      at  present  no  basis  upon  which      proportionality doctrine applied by      the European Courts can be followed      by the Courts in the Country".      Two decisions  of this  Court referred  to Brind (1991) and appear  to us  to have  struck a slightly different note than the  one stated  in Ranjit  Thakur  in  regard  to  the question   whether    proportionality   is   part   of   our administrative law.      In Tata Cellular vs. union of India [1994 (6) SCC 651]. It was  observed by this Court after referring to Brind that the  principles   available  in   administrative  law   were basically     illegality,      irrationality     (Wednesbury unreasonableness) and  procedural impropriety.   However, it was possible  that more grounds could be added in future,  - like proportionality.  This Court observed (p.677-678):      "those are  only the  broad grounds      but it  does not  rule out addition      of  future  grounds  in  course  of      time.   As a  matter of fact, in R.      vs. Secretary of State for the Home      dept.  Ex.p.  Bring,  Lord  Diplock      refers to  one development, namely,      the  possible  recognition  of  the      principle of proportionality"      Then in  1996 came  the decision  in State of  A.P. vs. mcDowell &  Co. [1996  (3) SCC  709] where  the Court  after referring to  Brind and  the speeches  of  Lords  Lowry  and Ackner, observed  that the applicability of the principle of ’proportionality’ in administrative law is still ’debatable’ and has  not yet  been ’fully  and finally  settled’.   This Court observed  that there were only three grounds as stated in CCSU:      "...In this  connection, it  should      be remembered that even in the case      of administrative action, the scope      of judicial  review is  limited  to      three     grounds      viz      (i)      unreasonableness, which can be more      accurately  called   irrationality,      (ii)    illegality     and    (iii)      procedural impropriety (see Council      of Civil Service union vs. Minister      of Civil  Service,  which  decision      has been  accepted by this Court as      well)."      Adverting to  proportionality it  was observed that the applicability thereof in administrative law is debatable and not dully  and finally  settled in administrative law.  This Court observed:      "The applicability  of doctrine  of      proportionality       even       in

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    administrative law  sphere is yet a      debatable issue,  (See the  opinion      of Lords  Lowry and Ackner in R vs.      Secretary of  State for  Home Dept.      Ex p.  Brind AC  p.766-67 and 762).      It  would   be  rather  odd  if  an      enactment were to be struck down by      applying the  said  principle  when      its    applicability     even    in      administrative law  sphere  is  not      fully and finally settled"      From Tata Cellular and McDowell it is fairly clear that a view  has been  expressed - somewhat different from Ranjit Thakur -  that it is still debatable whether proportionality is part  of our  administrative  law.    The  scope  of  its applicability in the context of fundamental freedoms was not discussed or gone into.      Statute law in India: proportionality applies;      Mcdowell however  makes it  clear that  so far  as  the validity of  a statute  is concerned, the same can be judged by applying the principle of proportionality for finding our whether  the   restrictions  imposed   by  the  statute  are permissible  and   within  the   bounds  prescribed  by  our Constitution.    McDowell  referred  to  this  exception  as follows;      "It is  one thing  to  say  that  a      restriction    imposed    upon    a      fundamental  right  can  be  struck      down  if  it  is  disproportionate,      excessive or unreasonable and quite      another thing to say that the Court      can strike  down  enactment  if  it      thinks it unreasonable, unnecessary      or unwarranted.’      That a  statute can  be struck down if the restrictions imposed by  it  are  disproportionate  or  excessive  having regard to  the purpose of the statute and that the Court can go into  the question whether there is a proper balancing of the fundamental  right and  the restriction imposed, is well settled.   (See Chintaman  vs. State of M.P. [1950 SCR 759]; State of  Madras vs.  V.G.Row [1952  SCR 597]; India Express Newspapers vs.  Union of India [1985 (1) SCC 641 & 691) etc. (The principle  of ’proportionality’ is applied in Australia and Canada also, to test the validity of statutes).      Of course, as already stated, the Court in McDowell had no occasion  to consider  whether the existence of a written Constitution with a chapter on Fundamental freedoms made any difference between  the English  administrative law  and our administrative  law.    We  have  already  referred  to  the observation in  Brind, particularly  those of Lord Ackner, s to  why   ’proportionality’  has  not  become  part  of  the administrative law  in England,  namely, the  absence of the incorporation of the European Human Rights Convention.      With  proportionality,   Court  is   primary  judge  of administrative  action   -  Without   it,  Court’s  role  is secondary: Brind and Smith;      This, in our view, is the most important aspect.  it is here that Brind (1991) explains the different      (2)     Cunliffe      vs.     Commonwealth      [(1994) 68.Aust.L.J.791](at  827,   839)  (also   799.   810,   821) Australian  Capital   Tel.Co,  vs.   Commonwealth  [1992  CL p.106(at 157)(Aus.) R.Vs.Big  M   Drug  Mart   Ltd.  [1985  (1)  SCR  295  (can) consequences of  the application of ’proportionality’ on the one hand  and Wednesbury  and CCSU tests on the other.  This

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vital difference  was further  explained in clearer language by the Court of Appeal in 1996.      As stated  in Brind  and as  set out  earlier,  if  the European Human  Rights Convention  (which, as stated earlier contains several  provisions similar  to  part  III  of  our Constitution) was  incorporated, then  the Courts in England would be  able to  apply the  principle of ’proportionality, Brind points  out that  in that event, the Courts in England would (like the Human Rights Court at Strasbourg) become the primary judges  of the  validity of administrative action or of discretionary powers exercised under statute.  If, on the other hand, the Human Rights Convention was not incorporated and the  principle of  proportionality  was  not  available. English Courts would be left with Wednesbury and CCSU tests. Then the  Court’s role  would only  be a secondary one while the primary  role would remain with the administrator.  What did this  mean?   It meant  that in  its secondary role, the English Courts would only consider whether the administrator had reasonably  come to his primary decision on the material before him.    This  distinction  between  the  primary  and secondary roles  was  explained  by  Lord  Bridge  in  Brind (p.749) as follows:      "The primary judgment as to whether      the  particular   competing  public      interest justifies  the  particular      restriction  imposed  falls  to  be      made by  the Secretary  of State to      whom Parliament  has entrusted  the      discretion.  But we are entitled to      exercise a  secondary  judgment  by      asking    wether    a    reasonable      secretary of State, on the material      before him,  could reasonably  make      the primary judgment.      In a  recent case  1996, in  R vs. Ministry of Defence, ex.p. Smith  [1996 (1)  AllE.R.257] in  the Court of Appeal, Lord Bingham  M.R. explained (p.264-265) the position of the Court  in   the   absence   of   the   Convention   and   of proportionality, as follows:-      "The  appellant’s  right  as  human      beings is  very much  in issue.  It      is now  accepted that this issue is      justiciable.    This  does  not  of      course  mean   that  the  Court  is      thrust into  the  position  of  the      primary decision maker.’      Focusing on this point more clearly, Henry L.J. (p.272) explained in the same case as follows;      "If the convention were part of our      law, then  as Simon Brown L.J. said      in  the   Divisional   Court,   the      primary  judgment   on  this  issue      would  be  for  the  judges,    But      parliament has  not  given  us  the      primary jurisdiction on this issue.      Our present constitutional role was      correctly identified by Simon Brown      L.j. as  exercising a  secondary or      reviewing judgment,  as it  is,  in      relation  to  the  Convention,  the      only  primary  judicial  role  lies      with the  European Court  of  Human      Rights at Strasbourg.’      The Court  of Appeal  agreed with  the observations  of Simon Brown, L.J. in the Divisional Court.

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    We are of the view that even in our country, - in cases not involving  fundamental  freedoms,  -  the  role  of  our Courts/Tribunals in  administrative law  is purely Secondary and while  applying Wednesbury  and CCSU  principles to test the validity  of executive  action or  administrative action taken in  exercise  of  statutory  powers,  the  Courts  and Tribunals in  our country  can only go into the matter, as a secondary reviewing  Court to  find out  if the executive of the administrator  in their  primary roles have arrived at a reasonable decision on the material before them in the light of Wednesbury  and CCSU  tests.   The choice  of the options available is  for the  authority the  Court/Tribunal  cannot substitute its view as to what is reasonable.      Fundamental rights  - Proportionality  - administrative law - question left open.      The question  arises whether  our Courts  while dealing with  executive   or  administrative  action  or  discretion exercised under  statutory powers where fundamental freedoms are involved  could apply  ’proportionality’ and  take up  a primary role.   In  England it  has been  accepted that  the English  Court   could  apply   ’proportionality’   if   the Convention were  incorporated into English law.  But, so for as our Courts are concerned, we do not propose to decide the question in the present case inasmuch as it is not contended before us  that any fundamental freedom is affected.  As and when an  executive act  or administrative  action  taken  in excess of statutory powers, is alleged to offend fundamental freedoms, it  will then  be for this Court to decide whether the principle  of proporionality  applies in  administrative law sphere  in our  country and whether the Courts will take up a  primary role.    Whether  the  primary  role  will  be confined to  Article 19.21  etc. and  not to Article 14 will also have to be decided.      Before parting  with this  aspect, we may state that in England in R vs. Secretary of State Exp. Bugdaycay [1987 (1) AC 514]  and in  Brind as  well as  Smith it  has  been,  of course, laid  down that at the moment, in the absence of the convention and proportionality, English Courts will apply a ’strict scrutiny’  test to  the administrative action rather than the  Wednesbury and  CCSU tests,  whenever liberty  and freedom of  expression etc,  which are  treated as  part  of Common Law  are involved.  The Courts would consider whether the restrictions  imposed by the administrator are necessary for protecting some ’competing public interest’.  This would no doubt amount to lowering the ’threshold of Wednesbury’.      Margin of appreciation and judicial restraint;      We may also state that even if the Courts in England by virtue of  incorporation of the Convention should become the primary Judges  of the validity of administrative decisions, still  they  would  exercise  great  judicial  restraint  in matters concerning governmental policies, national security, or taxation,  finance and economy of the country and similar such matters  of grave public policy.  This restraint on the part of  the judiciary is described in administrative law as giving a greater margin of appreciation to the administrator in certain  areas.   See Brind,  (lord  Templeman,  (p.751), Ackner (p.762)  and Lord  Lowry (p.766).  Similar principles have been laid down by this court while testing the validity of legislative measures in the context of Art, 19(2) to (6). The  Courts   would  give   a  ’reasonable  margin’  to  the legislature (Manoharlal  vs. State  of Punjab  [1961 (2) SCR 343]} in several situations.      Summing up:      The   current    position   of    proportionality    in administrative law in England and India can be summarised as

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follows;- (1)  To judge  the validity  of any  administrative order or statutory discretion,  normally the Wednesbury test is to be applied to  find out if the decision was illegal or suffered from procedural  improprieties or  was one which no sensible decision-maker could,  on the material before him and within the framework  of the law, have arrived at.  The Court would consider whether  relevant matters  had not  been taken into account or  whether irrelevant  matters had  been taken into account or  whether the  action was not bonafide.  The Court would also  consider whether  the  decision  was  absurd  or perverse.     The  Court  would  not  however  go  into  the correctness of  the choice made by the administrator amongst the various  alternatives open  to him.  Nor could the Court substitute its  decision to that of the administrator.  This is the Wednesbury test. (2)  The Court  would not interfere with the administrator’s decision unless  it was  illegal or suffered from procedural impropriety or  was irrational  in the  sense that it was in outrageous defiance  of  logic  or  moral  standards.    The possibility of  other tests, including proportionality being brought into  English Administrative  Law in  future is  nor ruled out.  These are the CCSU principles. (3)(a)    As per  Bugdaycay, Brind and Smith, as long as the Convention is not incorporated into English Law, the English Courts merely  exercise a  secondary judgment to find out if the decision  maker could  have, on the material before him, arrived at the primary judgment in the manner he had done. (3)(b)    If  the  Convention  is  incorporated  in  England making available  the principle of proportionality, then the English Courts  will render primary judgment on the validity of the administrative action and find out if the restriction is disproportionate or excessive or is not based upon a fair balancing of  the fundamental  freedom and  the need for the restriction thereupon. (4)(a)    The position  in our  country,  in  administrative law,  where   no  fundamental   freedoms  as  aforesaid  are involved, is  that the  Courts/Tribunals will  only  play  a secondary  role   while   the   primary   judgment   as   to reasonableness   will   remain   with   the   executive   or administrative authority.   The  secondary judgment  of  the Court is  to be  based on  Wednesbury and CCSU principles as stated by  Lord Greene and Lord Diplock respectively to find if the  executive or administrative authority has reasonably arrived at his decision as the primary authority. (4)(b)    Whether in the case of administrative or executive action affecting  fundamental freedoms,  the Courts  in  our country will  apply the  principle of  ’proportionality’ and assume a  primary role,  is left  open, to  be decided in an appropriate case  where such  action is  alleged  to  offend fundamental freedoms.   It  will be then necessary to decide whether the  Courts will  have a  primary role  only if  the freedoms under  Article 19,  21 etc. are involve and not for Article 14.      Punishment in  disciplinary matters:  Wednesbury & CCSU tests:      Finally, we  come to  the present  case.    It  is  not contended  before   us  that   any  fundamental  freedom  is affected.   We need  not therefore  go into  the question of ’proportionality’.     There  is   no  contention  that  the punishment imposed  is illegal  or  vitiated  by  procedural impropriety.   As to ’irrationality’, there is no finding by the Tribunal  that the  decision is  one which  no  sensible person who  weighed the  pros and cons could have arrived at nor  is  there  a  finding,  based  on  material,  that  the

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punishment is  in ’outrageous’  defiance of  logic.  Neither Wednesbury nor  CCSU tests  are satisfied.  We have still to explain ’Ranjit Thakur’.      In  Ranjit  Thakur,  this  Court  interfered  with  the punishment only  after coming  to  he  conclusion  that  the punishment was  in outrageous  defiance  of  logic  and  was shocking.  It was also described as perverse and irrational. In other  words, this  Court felt that, on facts, Wednesbury and CCSU  tests were  satisfied.   In another  case, in B.C. Chaturvedi vs.  Union of  India [1995  (6) SCC 749], a three Judge Bench said the same thing as follows;      "The  High   Court/Tribunal,  while      exercising the  power  of  judicial      review, cannot  normally substitute      its own  conclusions on penalty and      impose some  other penalty.  If the      punishment    imposed     by    the      disciplinary   authority   or   the      appellate  authority   shocks   the      conscience     of      the     High      Court/Tribunal       it       would      appropriately  would   the  relief,      either     by     directing     the      disciplinary    authority/appellate      authority to reconsider the penalty      imposed,   or    to   shorten   the      litigation,  it   ma   itself,   in      exceptional and  rare case,  impose      appropriate punishment  with cogent      reasons in support thereof"      Similar view  was taken  in India  Oil Corporation  vs. Ashok Kumar Arora [1997 (3) SCC 72], that the Court will not intervene unless the punishment is wholly disproportionate.      In such  a situation,  unless the Court/Tribunal opines in its  secondary role,  that the  administrator was, on the material before  him, irrational  according to Wednesbury or CCSU norms, the punishment cannot be quashed.  Even then the matter has  to be remitted back to the appropriate authority for reconsideration.   It  is only  in very  rare  cases  as pointed out in B.C.Chaturvedi’s case that the Court might, - to shorten  litigation -  think of substituting its own view as to  the  quantum  of  punishment  in  the  place  of  the punishment  awarded   by  the   competent  authority.    (In B.C.Chaturvedi and  other cases  referred to  therein it has however been  made clear  that the power of this Court under Article 136  is different). For the reasons given above, the case cited  for the respondent, namely, State of Maharashtra vs. M.H.Mazumdar cannot be of any help.      For the  aforesaid reasons,  we set  aside the order of the Tribunal  which  has  interfered  with  the  quantum  of punishment and  which has  also substituted  its own view of the punishment.   The punishment awarded by the departmental authorities is  restored.   In the circumstances, there will be no order as to costs.