13 November 1973
Supreme Court
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LALJEE DUBEY AND OTHERS Vs UNION OF INDIA AND OTHERS


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PETITIONER: LALJEE DUBEY AND OTHERS

       Vs.

RESPONDENT: UNION OF INDIA AND OTHERS

DATE OF JUDGMENT13/11/1973

BENCH: SARKARIA, RANJIT SINGH BENCH: SARKARIA, RANJIT SINGH KRISHNAIYER, V.R.

CITATION:  1974 AIR  246            1974 SCR  (2) 255  1974 SCC  (1) 188  CITATOR INFO :  R          1980 SC1185  (1,5)  R          1987 SC 424  (22)  R          1987 SC1676  (27)  D          1990 SC1607  (17)

ACT: Constitution of India, Arts. 14 and 16-Discrimination in the matter  of conferment of benefit through  an  administrative order-Letter   of   President  dated   November   17,   1953 classifying checkers post in Government Harness and Saddlery Factory, Kanpur as posts of lower division clerks-Appellants denied  the  designation as clerks  while  others  similarly situate were given the benefit Held discriminatory.

HEADNOTE: The  appellants were employed as checkers in the  Government Harness  and  Saddlery Factory, Kanpur.  Their  duties  were substantially   clerical.   The  question   of   designating checkers substantially during clerical work was referred  by the   Government  to  a  committee  known   as   "Kalyanwala Committee".   The  committee recommended  that  the  persons doing  clerical work should be designated as lower  division clerks.  The recommendation was accepted by the President of India  by his letter dated November 17, 1953.  The  Director General  was directed to re-classify checkers as  L.D.Cs  if they  were matriculates or completed three years  continuous service  as  checkers.   The appellants  claimed  that  they satisfied the above test and yet they were not classified as lower  division clerks.  The appellants filed a  civil  suit for a declaration that they were entitled. to be  classified and  redesignated as lower division clerks,  founding  their claim  on  the President’s letter dated November  17,  1953. The grievance of the appellants was that other employees who did not possess the necessary qualifications were designated as  L.D.Cs.  The  trial Court on  evidence  found  that  the appellants  were performing duties which were  substantially of  a clerical nature and therefore granted the  declaration in favour of the appellants.  The District Court, on  appeal by  the  State, held that the Court had no  jurisdiction  to grant relief since the President’s letter was in the  nature of  departmental  rules.  On appeal by the  appellants,  the High  Court held that the letter of the President  of  India

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did not constitute a rule under Art. 309 of the Constitution but  was  merely  in  the nature  of  an  administrative  or executive  order.   Before this Court, the  appellants  con- tended  that the letter dated November 17, 1953,  should  be implemented    because   the   Government    accepted    the recommendations  of  the Kalyanwala  Committee.   The  other checkers   performing  duties  similar  to  those   of   the appellants  having  been granted the benefit  of  the  order contained  in  the President’s letter, denial  of  the  same benefit  to the appellants who were similarly situate  would be violative of the fundamental rights guaranteed under Art. 14 and 16. Allowing the appeal, HELD  : (i) The letter of the President of India dated  17th November, 1953 gave a sanction to the recommendations of the Kalyanwala   Committee.   The  authorities   admitted   some checkers  as lower division clerks and left others to  their own  posts.   The direction containing the sanction  of  the President indicates that the checkers who had the  requisite qualifications, viz., passing matriculation examination  or, in  the  alternative three years continuous service  in  the department,  were  to-  be  put in  the  category  of  lower division clerks.  In the case of checkers who had  requisite qualifications  the authorities concerned had no  option  to make any selection among such persons for the conferment  of the   benefit.   The  appellants  possessed   the   required qualifications  and  were performing the duties  which  were substantially clerical.  The appellants are thus entitled to be  designated as lower division clerks in  accordance  with the  directions  contained in the letter  of  the  President dated   November  17,  1953.   There  has   been   arbitrary discrimination against the appellants. In  the case of checkers. who did not possess the  requisite qualifications,  the  authorities  had  the  discretion   in matters  of  classification of checkers  as  lower  division clerks.   [253F-G] 250 (ii)Held  further that it was not necessary to  express  any opinion as to whether the President’s letter dated  November 17,  1953 became a rule under Art. 309 of the  Constitution. [254C] Purushottam  Lal and others v. Union of India  and  another, [1973] 1 S.C.C. 651, followed. Union of India v. K. P. Joseph and others, A.I.R. 1973  S.C. 303, referred to.

JUDGMENT: CIVIL  APPELLATE  JURISDICTION : Civil Appeal  No.  1987  of 1968. Appeal  by Special Leave from the judgment and  Order  dated the  29th  September, 1965 of the Allahabad  High  Court  in Second Appeal No. 2517 of 1961. R.   K.  Garg,  S. C. Agrawala and V. J.  Francis,  for  the appellants. S.   N. Prasad and R. N. Sachthey, for the respondents. The Judgment of the Court was delivered by RAY,  C.J.  This  is an appeal by  special  leave  from  the judgment  dated  29 September, 1965 of  the  Allahabad  High Court. The  question in this appeal is-whether the  appellants  who are plaintiffs in the suit are entitled to be classified and re-designated as lower division clerks. The  appellants were employed in the Government Harness  and

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Saddlery Factory, Kanpur.  They were designated as checkers. Their  duties  were substantially clerical.  They  made  was resentations  to  the authorities for  being  classified  as clerks.   The  matter  was referred to  a  Committee  called ’Kalyanwala  Committee’.   The  Committee  recommended  that persons  doing clerical work should be designated  as  lower division  clerks.   The recommendation was accepted  by  the President  of India.  The Director General was  directed  to re-classify  checkers as lower division clerks if they  were matriculates  or completed three years’ continuous  service. The appellants claimed that they satisfied the tests and yet they  were  not classified as lower  division  clerks.   The grievance of the appellants was that other employees who did not possess the necessary qualifications were designated  as lower   division  clerks.-  The  appellants  asked   for   a declaration  that  they were entitled to be  classified  and redesignated  as  lower  division  clerks.   The  appellants founded their claim on the letter dated 17 November, 1953. The  respondents contended that the duties performed by  the appellants   were  not  substantially  clerical  and   other employees who were sufficiently qualified were designated as lower division clerks. The  trial  Court  referred to  the  oral  evidence.   Three witnesses on behalf of the appellants narrated their  career in the service of Harness and Saddlery Factory and described the duties performed by them.  The trial Court also referred to the evidence on behalf of the respondents.  The principal issue  before  the, trial Court was whether  the  appellants were  entitled  to  be classified and  designated  as  lower division  clerks  on  the basis  of  the  recommendation  of Kalyanwala  Committee and the sanction of the  President  of India thereon.  On 251 this  issue  the  trial Court referred to  the  evidence  on behalf  of  the parties and found that the  evidence  showed beyond any doubt that the appellants performed duties  which are  of  a substantially clerical  nature.The  trial  Court, therefore, answered the issue in favour of the appellants. On  appeal  the  District  Judge found  in  favour,  of  the appellants  that  the  duties performed by them  were  of  a substantially clerical nature.  The District Judge, however, held  that the Court had no jurisdiction to grant relief  to the   appellants  even  if  departmental  rules  have   been disregarded by the executive authorities. The  High Court on second appeal found that the  finding  of the  trial  Court as well as of the appellate Court  was  in favour  of  the appellants that they performed duties  of  a substantially clerical nature.  The learned single Judge  of the  High Court on second appeal referred the matter to  the learned Chief Justice for constituting a larger Bench on the question  as to whether the order of the President of  India created a right in favour of the appellants. The  matter was thereafter heard by a Division Bench of  the High Court.  The question for consideration before the  High Court  was  whether  the  letter  dated  17  November,  1953 conferred  any  right  on the  appellants.   The  appellants contended  that the letter constituted a rule framed by  the President  of India under Article 309 of  the  Constitution. The respondents on the other hand contended that the ,letter was a mere order of an administrative nature. The  letter  dated 17 November, 1953 was  addressed  by  the Under  Secretary  to the Government of  India,  Ministry  of Defence  to the Director General, Ordnance  Factories.   The letter  referred to the recommendationis of a  committee  of Enquiry  called the ’Kalyanwala Committee’ and conveyed  the

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sanction of the President as follows               "The existing posts of Checkers, Grades 1 & 11               in Ordnance Factories, the duties of which are               substantially clerical, shall be classified by               you  in consultation with the D.F.A. (FYS)  as               posts   of   Lower   Division   Clerks.    The               incumbents of the posts so classified will  be               redesignated as lower division clerks provided               they  are at least matriculates, or,  if  non-               matriculates,  they  have completed  3  years’               continuous  service  as Checkers on  the  date               from  which these orders take effect  or  from                             the  date  of reorganisation  of  the  existing               cadre of Checkers whichever is later.  Such of               the  incumbents  of these posts  as  are  non-               matriculates  and have not completed 3  years’               continuous service as Checkers on the date  of               effect  of  this  letter,  provided  they  are               considered  suitable in all respects  for  the               work,  will  also  be  redesignated  as  Lower               Division   Clerks;  they  will,  however,   be               reverted  as  checkers as and  when  vacancies               occur,  in future in that grade and will  then               be  replaced  in the grade of  Lower  Division               Clerks by qualified individuals.               The  remaining  posts  will  continue  to   be               designated  as Checkers but there will  be  no               grades.  Incumbents of these               252               posts  will be brought on to the single  scale               of  Rs. 45-2-553-85 in place of  the  existing               two scales of Rs. 40-1-50-2-60 and Rs. 55-3-85               on  the date of from which these  orders  take               effect  or the date of reorganisation  of  the               cadre of Checkers; whichever is later". The  letter dated 17 November, 1953 consisted of  directions of  two  different  nature.  First,  there  were  directions laying down how certain Checkers were to be reclassified as lower division Clerks.  Second, directions given related  to the  abolition  of the two grades of Checkers  who  remained after excluding those persons who were redesignated as Lower Division  Clerks.   There was a further  direction  that  in future  there  would  be  only  one  single  grade  for  the Checkers.   That grade would be Rs. 45-2-55-3-85 instead  of the two preexisting scales of Rs. 40-1-50-2-60 and Rs. 55-3- 85. The High Court on second appeal was divided in opinion.  One of the learned Judges held that the letter contained  orders and in structure governing certain individuals only who were in  service  towards  the  end of  the  year  1953  and  the underlying  idea was to reclassify them as Checkers.   There was  no idea to fix conditions of service of  Checkers for all  time.   The  letter did not  constitute  a  rule  under Article  309  of the Constitution.  The letter was  an  mere direction  of an administrative nature.  The  other  learned Judge held that the letter laid down conditions of  service. Conditions  of  service  could only  be  prescribed  by  the President  by Rules under Article 309.  The letter  amounted to a rule framed by the President of India. In  view  of the division the question was referred  to  the third  learned  Judge  as to whether  the  letter  dated  17 November,  1953 constituted a rule framed by  the  President under  Article 309.  The third learned Judge held  that  the letter  was  of  a  composite nature.   There  were  ad  hoc

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directions in respect of certain checkers.  The letter  also laid  down some conditions of service which would  apply  to the  remaining  checkers.  The letter did not  constitute  a rule  framed  by the President of India under  Article  309. The letter merely contained an order of an administrative or executive  nature.   This view of the  third  learned  Judge become the majority view of the High Court. Counsel  on  behalf  of the appellants  contended  that  the letter dated 17 November, 1953 should be implemented because the  Government  accepted the recommendation  of  Kalyanwala Committee.   Counsel  for  the  appellants  submitted  these reasons.   Denial  of  the  benefits of  the  order  to  the appellants  is  violative of fundamental  rights  guaranteed under  Articles  14  and  16  of  the  Constitution.   Other checkers   performing  duties  similar  to  those   of   the appellants  have  been  granted the  benefit  of  the  order contained in the letter dated 17 November, 1953 whereas  the appellants  who are similarly situate have been  arbitrarily denied the benefit of the same. In  the recent decision in Purshotam Lal & Ors. v. Union  of India  & Anr. [1973] 1 S.C.C. 651 this Court held  that  the Government was bound to implement the recommendations of the Second Pay 25 3 Commission  and  if  the Government did  not  implement  the report regarding some employees only there would be a breach of  Articles 14 and 16 of the Constitution.   In  Purshottam Lal case (supra) the Government of India set up a Commission called   the  "Second  Pay  Commission"  to   enquire   into emoluments  and conditions of service of Central  Government employees.   Purshottam Lal and others were employed in  the Forest Research Institute and College, Dehra Dun.  They were Research  Assistants.  Their contention was that their  case was covered by the recommendations of the Commission.  On  2 August,  1960  the Government issued a  notification  giving effect to the recommendations of the Pay Commission.  On  21 June,  1962 the Government of India revised the pay  scales of the petitioners and stated that therevision of the  pay scales of the petitioners would take effect fromthe   date of  the issue of the order.  The petitioners contended  that the  revised pay scales of similar posts in  similar  sister institutes of the Research Institute under the same Ministry had  been  implemented from 1 July, 1959  according  to  the Second  Pay Commission recommendations, and, therefore,  the petitioners   were   entitled   to  the   benefit   of   the retrospective  date,  viz., 1 July,  1959.   The  Government contended  that  it  was for the Government  to  accept  the recommendations of the Pay Commission and while doing so  to determine  what categories of employees should be  taken  to have  been included in the terms of reference.   This  Court did  not  accept  the contention  of  the  Government.   The Government  made  reference  in respect  of  all  Government employees.   The  Government accepted  the  recommendations. Therefore,  the  Government  was  bound  to  implement   the recommendations in respect of all Government employees.  The reason  given by this Court was that if the  Government  did not implement the Report regarding some employees only there would   be  a.  breach  of  Articles  14  and  16   of   the Constitution. In the present case the letter dated 17 November, 1953 shows that   the   President  of  India  gave  sanction   to   the recommendations  of Kalyanwala Committee.   The  authorities admitted  some of the persons as lower division  clerks  and left  others to their own posts.  The  direction  containing the  sanction of the President indicates that  checkers  who

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had   the  requisite  qualifications,  viz.,   passing   the matriculation  examination  or  in  the  alter-native  three years’  continuous service in the department were to be  put in the category of lower divisions clerks.  The letter dated 17  November,  1953 divided checkers into two  groups.   The first   group  consisted  of  checkers  who  possessed   the necessary qualifications as  laid down in that  order.   The second  group  consisted of those who did not  possess  that qualification.   In the case of persons of the  first  group the authorities concerned could not have any option to  make any  selection  among such persons.  The direction  in  that letter  indicates that such persons should be classified  as lower  division  clerks.  In the case of the  second  group, viz.,   those   who  did  not  fulfill   the   qualification requirements it was left open to the authorities to exercise their  discretion and classify some of the checkers  in  the posts of lower division clerks if they considered them to be fit  and suitable to serve in those posts.   The  appellants were, therefore, entitled to be designated as lower division clerks, in accordance with the directions contained in 254 the letter dated 17 November 1953.  There has been arbitrary discrimination against the appellants. In  another decision in Union of India v. K. P.  Joseph  and Ors. not yet reported in Supreme Court Reports but  reported in  A. 1. R. 1973 S. C. 303 this Court considered Whether  a general  order described as Office Memorandum providing  for certain  benefits to ex-military personnel on  re-employment on  the  basis of their length of  actual  military  service conferred any right relating to conditions of service.  This Court  held  that the persons mentioned in  the  order  were entitled to have their pay fixed in the manner specified  in the order and that was part of the conditions of service. It is not necessary to express any opinion as to whether the letter  dated 17 November, 1953 became a rule under  Article 309 of the Constitution.  For the purposes of the appeal  it is  sufficient to hold that the letter has been accepted  by the  authorities and given effect to in the case of some  of the employees belonging to the same group as the appellants. For  these reasons, the appellants are entitled to  succeed. The  appeal is accepted.  The judgment of the High Court  is set aside. The parties will pay and bear their own costs in view of the fact  that  they  did so throughout  tinder  the  orders  of Court., S.B.W. Appeal allowed. 2 5 5