05 November 1973
Supreme Court
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UNIVERSITY OF KASHMIR AND OTHERS Vs MOHD. YASIN AND OTHERS

Case number: Appeal (civil) 1386 of 1972


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PETITIONER: UNIVERSITY OF KASHMIR AND OTHERS

       Vs.

RESPONDENT: MOHD.  YASIN AND OTHERS

DATE OF JUDGMENT05/11/1973

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

CITATION:  1974 AIR  238            1974 SCR  (2) 154  1974 SCC  (1) 167

ACT: Jammu and Kashmir University Ordinance, 1969, and Jammu  and Kashmir    University   Act,    1969-Section    52-Automatic termination  under section of services of Lecturer  employed on  contract basis-No reemployment as provided  by  statute- More continuation on the expiry of statutory period does not justify inference of implied engagement. Jammu   and  Kashmir  University  Act,   1965-Enquiry   into misconduct  and report under the 1965 Act-No  validation  or continuation of enquiry commenced under the 1965 Act in  the 1969 Act-Show cause notice and termination service based  on the Enquiry-Report under the 1965 Act- Validity.

HEADNOTE: The  respondent joined the Jammu and Kashmir  University  in 1963  as lecturer on contract basis.  He was later  promoted as  professor.   His appointment as professor  was  also  on contract basis and by agreement he was bound by the statutes and   regulations  from  time  to  time  in  force  in   the University.   While  extending his period  of  probation  as Professor  the  Central Council of the  University  resolved that  the respondent be charge-sheeted for  certain  alleged misconduct.  An Enquiry was held under the Jammu and Kashmir University Act, 1965 and at report was submitted holding the respondent guilty.  On the day the enquiry officer submitted the report, the Jammu and Kashmir University Ordinance  1969 was promulgated.  Section 52 of the Ordinance provided  that teachers  employed  on  contract  basis  "unless   otherwise ordered   by  the  Chancellor  after  consulting  the   Pro- Chancellor  shall cease to hold such posts or  to  discharge such  duties  after 60 days from the  commencement  of  this Ordinance or the Act, as the case may be." No such order was issued   by   the  Chancellor  extending   the   respondents employment  on the expiration of the period.  Or, the  other hand.  the  Vice-Chancellor.  allowed  him  to  function  as Professor and his probation was again extended for a year by the  Vice-Chancellor under s. 13(4) of the Ordinance  (which had already been replaced on November 16, 1969 by the  Jammu and Kashmir University Act, 1969).  The Vice-Chancellor also directed  the  release of the salary of the  respondent  and requested  him  to serve on the academic council as  an  ex- official  member.   Based on the enquiry  report  the  Vice-

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Chancellor   issued  a  show  cause  notice  to  which   the respondent   submitted  his  explanation.   The   University Council decided to terminate the services of the respondent. In  a writ petition filed by the respondent the  High  Court directed  reinstatement.  The High Court took the view  that the facts and circumstances of the, case clearly enabled the spelling  out  of a fresh appointment of the  respondent  as Professor  by an emplied contract.  The High Court was  also of the opinion that the enquiry directed under the 1965  Act lapsed when the 1969 Ordinance came into force and could not furnish the basis for punitive action against the respondent and therefore the order of dismissal based on the report  of the Enquiry Officer was bad in law. HELD : that the High Court’s order of reinstatement. had  to be  quashed.  While the respondent had no right to  continue in  the  University  the termination  of  his  services  was invalid. (i)Under  the 1969 Ordinance and the subsequent Act  which replaced it the only body competent to appoint a  professor, like the respondent, is the University Council and even  the Council   shall   make  such  appointments   only   on   the recommendation of the Selection Committee created by section 36.   There  is no case that. the Selection  Committee  even considered or recommended the respondent for appointment and there is no suggestion that the University Council appointed the  respondent  as  professor. it  follows  that  the  only statutory body 170 empowered in this behalf has not appointed the respondent to the  post claimed by him.  Therefore the continuance of  the respondent  on the expiration of the statutory  two  months’ period cannot be legitimated by law.  The circumstance  that the respondent functioned in the University does not vest in him  the legal status of a validly appointed  employee  with all  the protection that the, Act and the relevant  statutes give  to  such  a person.  Thus no case  of  statutory  ter- mination  is called for, the basis of  statutory  employment being absent. [175F] When  a statute creates a body and vests it  with  authority and  circumscribes the powers by specifying limitation.  the doctrine  of implied engagement le hors the provisions  and powers  under the Act would be subversive of  the  statutory scheme  regarding  appointment  of officers  and  cannot  be countenanced   by  the  Court.   If  a  Vice-Chancellor   by administrative  drift  allows such employment it  cannot  be validated by any theory of factum valet. [176E] (ii)When there was no provision in the 1969 Act which would continue  or  validate  the enquiry  commenced  against  the respondent  by the Jammu and Kashmir University  created  by the 1965 Act. the Enquiry report falls to the ground  vis-a- vis  the respondent.  The fact that he responded to  a  show cause notice cannot clothe the enquiry with legality and the report  is impermissible material to injure  the  respondent with  a  punitive  termination.   The  respondent  would  be considerably damnified in his standing and reputation by the order  of  the University.  The termination of  his  service therefore has to be declared illegal. [176G]

JUDGMENT: CIVIL  APPELLATE  JURISDICTION:   Civil Appeal No.  1386  of 1972. From the Judgment and order dated the 26th October, 1971  of the  Jammu  and  Kashmir  High Court  at  Srinagar  in  Writ

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Petition No. 36 of 1970. F.   S.  Nariman, Additional Solicitor General of India,  0. C. Mathur and P.    C.. Bhartari, for the appellant. T.   R. Bhasin, R. L. Kohli and Ramesh Kohli, for respondent No. 1 The Judgment of the Court was delivered by KRISHNA  IYER, J.-The University of Kashmir, the  appellant, with  a  blurred  sense  of  legality,  issued  a  ukase  by resolution  of its Council, terminating the services of  its Professor,   the  appellee,  insufficiently  aware  of   the kaleidoscopic  legislative  changes  and  crucial  statutory consequences  on the one hand and curiously  indifferent  to its   own  embarrassingly  ambivalent   dealings   seemingly legitimising  the permanent status of the  Professor.   This decision virtually dismissing the appellee was  successfully challenged  as  void in the High, Court, but  the  appellant University  has  come up in appeal, with  a  certificate  of fitness, seeking to sustain the validity of its action.   At the first blush, the law of master and servant may apply  to the  present fact-situation bum the statutory status of  the employer  substantially  transforms tile  character  of  the master, the consequences of its ultra vires acts as well  as amenability  to types of relief like reinstatement  and  the applicability or writ remedies, alien to the legal chemistry of  breaches  of  contract.  However, in the  light  of  the factual-cum-legal  conclusions  which  appeal  to  us  these thorny  jurisprudential issues of deeper import in a  socio- economic  and  cultural context where the  State  undertakes dynamic  activities affecting citizens’ rights and  operates through 171 corporate and other effective instrumentalities may not fall for  direct,  decision.   Enough unto the day  is  the  evil thereof. A chronological narration of the principal facts and  events and  legislative shifts and their implications must  precede consideration of the legal contentions put forward by either side. The  Jammu  and Kashmir University Act, 2005  (Samvat  Year) created the University of Jammu and Kashmir.  Several  years later,  the  present respondent joined the University  as  a lecturer  on  contract  basis, the  law  that  governed  his services  being the provisions of that Act and the  statutes framed  thereunder.   Subsequently, the  Jammu  and  Kashmir University Act, 1965, was passed which, while repealing  the previous  Act, preserved and continued for the  transitional period  the rules and regulations and services  of  teachers and officers of the University (s. 52).  Primarily, the 1965 Act imparted embryonic shape to the Jammu University and the Kashmir  University  by the creation of two  Divisions.  (1) Jammu  Division,  and  (2)  Kashmir  Division-  Anyway,  the respondent  who had joined in 1963 was appointed  as  Reader in September 1965, a few months after the 1965 Act came into force. A couple of years later the respondent registered  an advance  in  hiscareer  and became Professor  in  the  Post- Graduate Departmentof the University in the Kashmir Division on terms and conditionscontained in letter dated January  8, 1968.   While  he was put on probation for one year  he  was informed  that  immediately after his appointment  he  would have  to enter into an agreement with the University in  the form forwarded to him.  This agreemcnt bound the  respondent to  the statutes and regulations from time to time in  force in  the University.  It is significant to note, as the  High Court  has  pointed out in its judgment, that "the  case  of both  the parties, however, is that the appointment  of  the

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petitioner  as Professor was on contract basis".   The  one- year  period of probation expired on December 14. 1968,  but the Vice-Chancellor extended it .for one more year by  order dated  November 11, 1968.  This extension was  confirmed  by the  meeting of the Central Council of the Unversity at  its meeting dated June 26, 1969.  But at the same meeting it was resolved  by  the  Central Council that  the  respondent  be charge-sheeted  for certain alleged misconduct.  An  enquiry was  held  by an enquiry officer appointed in  this  behalf, Shri  J. N. Bhan, who submitted his report on  September  5, 1969  holding  the  respondent  guilty  substantially.    By accident it happens that on the same date, namely, September 5, 1969, the Jammu and Kashmir University Ordiinance,  1969, was  promulgated by the Governor establishing  two  separate universities, one for Jammu and the other for Kashmir.  How- ever,  by  s.  52  thereof, the  rules  an  regulations  and services  of employees were continued.  And then followed  a significant  provision which laid down that within  60  days from  the  commencement  of the Ordinance  the  services  of teachers  employed  on contract basis were to  cease  unless otherwise  ordered  by the Chancellor.  No  such  order  was issued   by  the  Chancellor  extending   the   respondent’s employment.  However, oblivious or heedless of the statutory cessation  of  the respondent’s services he was  allowed  to function  as Professor and his probation was again  extended for a year by the Vice-Chancellor under 172 s.   13(4) of the Ordinance (which had already been replaced on  November 10, 1969 by the Jammu and Kashmir  Universities Act,  1969).  More incongruous with the appellant’s  present stand  is the direction by the Vice-Ciiancellor  to  release the salary of the respondent and the request to him to serve on  the  Academic  Council as an  ex-officio  member,  being Professor  and  Head of the Department of  History.   While, thus, on the one side quiet flowed the stream of service  as professor, on the other turbid eddies of threat to terminate surfaced  up.  For, based on the enquiry  report  the  Vice- Chancellor issued a show-cause’ notice on December 22, 1969, which  elicited the respondent’s explanation on January  31, 1970.   Together, all the materials were considered  by  the University  Council  at its meeting dated.   July  7,  1970, where  the  decision  was taken to  remove  him  paying  one month’s   salary.   Thereafter,  of  course,   the   present litigation started. The  principal  questions canvassed before us  turn  on  the correctness of the views taken by the High Court on (a)  the respondent’s  right  to continue in service even  after  the statutory  explanation thereof, and (b) the validity of  the reliance on the enquiry report in the termination order  and the  breach of statutory conditions subject to  which  alone the power of terminating the relationship could be exercised by  the  University  Council.  In the opinion  of  the  High Court,  the  facts  and circumstances of  the  case  clearly enabled  the  spelling  out of a fresh  appointment  of  the respondent  as,  Professor  and Head of  the  Department  of History  of  the new University- of Kashmir  by  an  implied contract.    Once  this  position  is  reached  it   follows logically  that  the termination has to be in terms  of  the statutory regulations.  On the aspect of the case the  Court took  the view that the enquiry directed under the 1965  Act lapsed when the 1969 Ordinance and the Act came into  force, and could not furnish the basis for punitive action  against the  respondent.   The  irresistible  conclusion  the  Court therefore reached was that the order of dismissal passed  by the  University  Council being based on the  report  of  the

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Enquiry  Officer  was  bad  in  law.   The  Court   directed reinstatement by a writ of mandamus. The learned Additional Solicitor General, appearing for  the appellant University, built an argument the corner-stone  of which  was  that  there was a  statutory  cessation  of  the contractual  service  of the respondent by operation  of  s. 52(4)  of the Ordinance and the Act of 1969.   The  statutes under the Act of 1965 contained a provision which ran thus :               "Procedure   conditions  for  appointment   of               University Teachers.               STATUTES               1.               2.    Every salaried teacher of the University               shall have to execute a written contract  with               the University.  The conditions of service  of               teachers appointed by the University shall  be               those embodied in the Agreement of service an-               nexed hereto or, on Agreement substantially to               like  effect, and every teacher shall  execute               the Agreement before he enters upon his duties               or as soon as possible, thereafter."               173 It is also common case that respondent’s employment was on a contractual basis.  By s. 51 of the 1969 Ordinance "all  the statutes  and regulations made under the Jammu  and  Kashmir University  Act of 1965 and in force immediately before  the commencement  of  this  Ordinance shall so far  as,  may  be consistent with the provisions of this Ordinance continue to be  in force in each University after the  commencement of this Ordinance." Thus  we reach the position that, on a combined  reading  of Statute  2  framed  under the 1965  Act  (already  extracted above)  and  s.  51 of the Ordinance of 1969,  which  is  in identical  terms  with s. 59 of the Act which  replaced  the Ordinance, the respondent was an employee of the  University serving  under a contract.  In fact neither  party  disputes this  position.   Our attention must now turn to  a  crucial provision in the 1969 Ordinance which is also reproduced  in the ensuing Act.  Section 52 thereof runs thus :               "52.   Continuance of service of the  existing               employees    and    their    allocation     :-               Notwithstanding  anything  contained  in  this               Ordinance  or any Statute or  Regulation  made               thereunder  or in any other law for  the  time               being in force :-               (1)   all employees of the University of Jammu               and  Kashmir  constituted under  the  Jammu  &               Kashmir University Act, 1965 (other than those               serving  on contract or on deputation  in  the               University or those serving in the Publication               Bureau  of  the University)  who,  immediately               before  the  commencement of  this  Ordinance,               were holding or discharging the duties of  any               post or office in connection with the  affairs               of  the said University shall, subject to  the               provisions  of  sub-section (2),  continue  in               service  on the same terms and  conditions  as               regulated    their   service    before    such               commencement;               (2)   the Chancellor may in consultation  with               the  Pro-Chancellor  by  order  allocate   the               employees  of  the  University  of  Jammu  and               Kashmir (other than those serving on  contract               or  deputation  in  the  University  or  those               serving  in  the Publication Division  of  the

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             University) between the University of  Kashmir               and the University of Jammu constituted  under               this  Ordinance  in  such  manner  as  he  may               consider  necessary and every such  allocation               shall be deemed to be an appointment, transfer               as  the case may be to the post or  office  by               the competent authority under this Ordinance :               Provided  that in making such allocations  the               conditions  of service of employment  of  such               employees   shall  not  be  varied  to   their               disadvantage               (3)....               (4)   all  persons who immediately before  the               commencement of this Ordinance were holding or               discharging                174               the duties of any post or office in connection               with  the affairs of the University  of  Jammu               and Kashmir on contract basis or by virtue  of               their occupation to such posts or offices from               other services in the State, unless  otherwise               ordered by the Chancellor after consulting the               Pro-Chancellor, shall cease to hold such posts               or to discharge such duties after 60 days from               the  commencement  of this Ordinance  and  all               such  contracts  with or  deputations  to  the               University  of Jammu and Kashmir  shall  stand               terminated with effect from the expiry of  the               said period of 60 days. If  we  may  condense the effect of this  provision  to  the extent relevant to the present case, it means that  teachers employed on contract basis "unless otherwise ordered by  the Chancellor  after consulting the Pro-Chancellor shall  cease to hold such posts or to discharge such duties after 60 days from the commencement of this Ordinance" or the Act, as  the case may be.  To add emphasis, as it were, to the  cessation of  such tenure the further part of the  section  reiterates that  "all such contracts with ... the University  of  Jammu and  Kashmir  shall stand terminated with  effect  from  the expiry  of  the  said  period of  60  days."  Thus,  by  the inexorable  operation of the calendar, on November 5,  1969, the respondent made a statutory exit from the employment  of the  Kashmir University.  This much even the respondent  has reconciled himself to, and the High Court has accepted. To  retrieve  the situation thereafter, the  respondent  had recourse  to  a  plea which found favour  with  the  learned Judges,  that  the  actings  and  dealings  of  the   higher functionaries  of  the University vis-a-vis  the  respondent eloquently  testified to the claim of implied employment  of the respondent subsequent to the statutory cessation.  It is true  that de facto the respondent functioned as  Professor. drew salary as such, became a member of the Academic Council in that capacity and was treated as on extended probation by the  Vice  Chancellor.   In view  of  these  habiliments  of professorate  the  High Court assumed the premise  that  the respondent   was  "admittedly  in  the  employment  of   the University  of Kashmir on the relevant date", and  proceeded to essay the next problem which it posed in these words               "The  main question in this cause  is  whether               the  employment of the petitioner was  validly               terminated under the impugned resolution." We  are dealing with a statutory body, the  University,  and its  powers  and duties and the canalisation  thereof.   The functionaries  under it and the contours of their  authority are delineated by the Act. if any body created by a  statute

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went beyond the area of its powers, the act was ultra  vires and  of no effect.  Ordinance 10 of 1969 and the  subsequent Act which replaced it have vested in the 175 University Council certain powers regarding the  appointment of the teaching staff.  Section 22 reads :               "22.     Powers   and   functions    of    the               University Council The University Council of a               University  shall be the supreme authority  of               the  University and shall have  the  following               powers, namely               (f)   save  as  otherwise  provided  in   this               Ordinance, to appoint officers of the  status-               of Joint Registrar, Deputy Librarian and above               and  teachers  of the status  of  Readers  and               above and to define their duties.               Provided  that no officer or teacher shall  be               appointed   by  a  University  Council   until               provision has been made for his salary in  the                             approved budget of the University conc erned :               Provided   further   that   all   appointments               (Permanent  or  temporary)  to  the  posts  of               Officers  or  teachers  referred  to  in  this               section  shall  be  made  by  the   University               Council on the recommendation of the Selection               Committee  constituted  for,  the  purpose  in               accordance  with the provisions of Section  36               of  this  Ordinance,  and on  such  terms  and               conditions   as  may  be  prescribed  by   the               Statutes :               Provided  also  that the  Vice-Chancellor  may               make  appointments of teachers referred to  in               this  Section  as a temporary  measure  for  a               period  not exceeding six months to  carry  on               the  work  and if the recommendations  of  the               Selection Committee are not received within  a               period of six months, the Vice Chancellor  may               extend  the appointment, if any made  by  him,               for the duration of the academic session  with               the approval of the University Council; Thus,  the only body competent to appoint a professor,  like the  respondent,  is the University Council,  and  even  the Council   shall   make.  such  appointments  only   on   the recommendation of the Selection Committee created by s.  36. There   is  no  case  that  the  Selection  Committee   ever considered or recommended the respondent for appointment and there is no suggestion that the University Council appointed the  respondent  as  professor.  It follows  that  the  only statutory  authority  empowered  in  this  behalf  has   not appointed the. respondent to the post claimed by him.  There is an interim power vested in the Vice-Chancellor hedged  in with limitations, as is contained in the third proviso to s. 22(f). lie may make appointments of teachers as a  temporary measure for periods not exceeding six months to carry on the work, and if the Selection Committee’s recommendation is not received within the  time he may extend the appointment  for the  duration of the academic session with the  approval  of the  University Council.  There has been no exercise of  the narrow power of the Vice-Chancellor under this proviso  and the  conclusion is irresistible that the continuance of  the respondent  on the expiration of the statutory  two  months’ period cannot be legitimated by law.  Of course, he remained to teach and was paid for 176

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his  work.   He  did  many  other  things  which  a  legally appointed  professor would do, with the full  knowledge  and even at the request of the Vice-Chancellor.  May-be, he, the Vice-Chancellor  and others in the University  were  perhaps not  keeping themselves abreast of the law.  But  the  fatal fact remains that the Chancellor did not extend the services of  the  respondent as contemplated by s.  52(4),  and  this failure  finishes the plea of continuance in office  of  the professor.   We  are not concerned with  the  administrative fall-out  from  this  finding although  the  salary  of  the teacher  appears  to  have  been  sanctioned  by  the  Vice- Chancellor a piece of conduct which may be understandable on equitable  grounds.  The, circumstance that  the  respondent functioned in the University does not vest in him the  legal status-  of  a  validly  appointed  employee  with  all  the protection  that the Act and the relevant statutes  give  to such a person.  In this view of the fact situation,  without more, the respondent’s work on the University campus can  be brought  to  a close.  No case of statutory  termination  of service  is  called for, the basis of  statutory  employment being  absent.  The ad hoc arrangement by which he  remained to  teach did not acquire legal validity merely because  the Vice-Chancellor  went  through the  irregular  exercises  of extending  his  probation, etc.  We have to  hold  that  the curtain  fell on the office held by the respondent when,  at the end of 60 days after the Act, the sands of time ran out. The  ground urged successfully, as it were, before the  High Court,  of  an implied engagement cannot, in  our  view,  be sustained.  When a statute creates a body and vests it  with authority   and  circumscribes  its  powers  by   specifying limitations, the doctrine of implied engagement de hors  the provisions  and powers under the Act would be subversive  of the statutory scheme regarding appointments of officers  and cannot be countenanced by the Court.  Power in this case has been vested in the University Council only and the manner of its  exercise has been carefully regulated.  Therefore,  the appointment  of  the respondent could be made  only  by  the Council and only in the mode prescribed by the statute.   If a  Vice-Chancellor  by  administrative  drift  allows   such employment  it cannot be validated on any theory  of  factum valet.  We cannot countenance the alleged continuance of the respondent in the University campus as tantamount to regular service  under the University with the sanction of law.   In short,  the respondent has no presentable case  against  the direction to quit. Even  so,  there are certain disquieting  features  in  this case.  The Additional Solicitor-General fairly concedes that there was no provision in the 1969 Act which would  continue or  validate the enquiry ,commenced against  the  respondent by,  Jammu and Kashmir University created by the  1965  Act. If so, the enquiry report falls to the ground vis-a-vis  the respondent.   The  fact that he responded  to  a  show-cause notice  cannot  clothe  the enquiry with  legality  and  the report  is impermissible material to injure  the  respondent with  a punitive termination.  The reliance on  the  enquiry report by the University. to take a hostile decision on July 7, 1970 is illegal.  The University Council could not act to his Prejudice on the strength of a damaging report which had no  force.   We are therefore clear in our  minds  that  the termination  of the services of the respondent was  stricken by the vice of statutory violation.  The respondent is per- 177 fectly  right  in contending that he has  been  considerably damnified  in his standing and reputation by this  order  of the  University.   We are, therefore, inclined to  the  view

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that  while the respondent has no right to continue  in  the University, the termination of his services, as per annexure A, is invalid.  It is no use the University contending  that its  order  is innocuous.  It is clear that its  annexure  A carries  a stigma with it since it expresses "the  unanimous conclusion  that  the  .... charges  have  been  established against  him" and the termination itself is founded  on  the guilt so made out.  We, therefore declare that Annexure A is void  but further hold that the respondent has no  right  to continue in service and the direction to him that he  should leave  his post as Professor and Head of  the  Post-Graduate History  Department  is  good.  The High  Court’s  order  of reinstatement is quashed. There is much in the circumstances of the case to show  that both  sides have, been indifferent to the provisions of  the law  which  changed from time to time and  both  sides  have acted  under misapprehensions, which warrant  our  direction that  parties  will bear their own  costs  throughout.   The appeal is allowed subject to the above order as to costs. K.B.N.                         Appeal allowed. 13-L447Sup.  C. I./74 178