R. SUNDARAM vs. THE TAMIL NADU STATE LEVEL SCRUTINY COMMITTEE

Full Judgment Text

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. OF 2023 (Arising out of Special Leave Petition (Civil) No. /2023 Diary No.15448 /2020 ) R SUNDARAM … APPELLANT(S) VERSUS THE TAMIL NADU STATE LEVEL SCRUTINY COMMITTEE & ORS. … RESPONDENT(S) JUDGMENT KRISHNA MURARI, J.

	Delay condoned.	Leave Granted.

2.	The present Appeal is directed against the final order and judgment dated

13.02.2020 in Review Application No. 157 of 2019 passed by the High Court of Madras, and against order dated 16.04.2019 in W.P. No. 28295 of 2018 passed by

the High Court of Madras (hereinafter referred to as “	High Court	”) whereby the

Appellants’ challenge to the denial of his post-retirement benefits was dismissed. 1

BACKGROUND FACTS

3.	The Appellant was appointed as a clerk-cum-shroff in the Respondent bank on

the basis of a community certificate dated 15.11.1975 certifying that he was from

the Konda Reddy Community. After a tenure of 38 years, the Appellant retired as a

Scale 3 officer, however, two days before his superannuation, he received a

cessation order on grounds of his caste certificate being false, and all his retirement
benefits except PF were withheld from him.
benefits except PF were withheld from him.

4.	During the Appellant’s tenure in the respondent bank, The District collector (sixth

respondent herein), without conducting any enquiry, cancelled the community

certificate granted to the Appellant. Aggrieved by the same, the Appellant filed WP

No. 12546 of 1998. The High Court vide order dated 09.08.2009 remanded the

matter back to the Tamil Nadu State Level Scrutiny Committee (first respondent

herein) to conduct a fresh enquiry. However, even after the High Court order, the

verification with regard to the communal status of the Appellant was still not

concluded, and this led to the Appellant’s retirement without realization of his
retirement benefits.
retirement benefits.

5.	The Appellant then, to seek his post-retirement benefits filed WP No. 19006 of

2013 in the High Court, however the same was disposed off vide order dated

04.07.2014 , and the first respondent was directed to complete the enquiry within a

period of eight weeks. The Appellant then preferred an SLP in the Supreme Court

against the above mentioned High Court order, and during the pendency of the SLP,

an interim order was passed by this Hon’ble Court directing the Appellant to appear
before the first respondent for enquiry. Subsequently, the said SLP was withdrawn.
before the first respondent for enquiry. Subsequently, the said SLP was withdrawn.



6.	In the meantime, the fifth respondent concluded the enquiry and submitted a

report dated 29.11.2017 with the finding that the Appellant in fact did not belong to

the Konda Reddy Community. Based on this report, a show cause notice was issued

to the Appellant dated 07.12.2017. As against this, the Appellant filed another W.P

No. 33207/2017 seeking to set aside the show cause notice and the enquiry report.

The High Court, vide order dated 19.12.2017 allowed the same, and remanded the

matter back to the scrutiny committee whilst quashing the show cause notice and
the enquiry report.
the enquiry report.


7.	Subsequent to the order of the High Court remanding the matter back to the

scrutiny committee, the committee again proceeded and held that the caste

certificate of the Appellant was not correct based on vigilance reports and other
expert reports.
expert reports.


8.	The Appellant, aggrieved by the above mentioned report of the scrutiny

committee filed another W.P No. 28295/2018 and along with a contempt petition

seeking for a restoration of the community certificate, however both were dismissed

by the High Court vide impugned judgement dated 16.04.2019 on grounds that

despite fair opportunity being granted to the Appellant, he had not abided by the

same; The Appellant then preferred a Review Application No. 157/2019 in the High

Court, however, this was also dismissed vide second impugned judgement dated
13.02.2020.
13.02.2020.

ANALYSIS
ANALYSIS


9.	Mr. R. Balasubramanian and Mr. S. Prabakaran, Senior Counsel appearing on

behalf of the Appellant vehemently argued that as per the directions of the High

Court in order dated 19.12.2017, the Appellant was to be given due opportunity to

cross-examine the witnesses, and copies of all documents relied on by the

Respondents was to be furnished to the Appellant, however, the same was not done.

It has been further contended that at the time when the Appellant was given the

cessation order, no enquiry against him was pending, and that in the entire process
he has been subject to harassment for almost 19 years.
he has been subject to harassment for almost 19 years.


10.		Per Contra, Mr. Gopal Sankaranarayanan, Senior Advovate and Mr. Joseph

Aristotle, AOR, appearing on behalf of the respondents argued that notice was duly

served on the Appellant, and it was the Appellant who did not show up in the

proceedings. It was also argued that due to the Appellant not showing up, the

proceedings were adjourned, but even after the adjournment the Appellant did not

show up, and hence the committee had no option but to pass its decision ex-parte.

11.	Keeping in mind the submissions of both the parties, at the very outset we

would like to state that the right to pensionary benefit is a constitutional right and as

such cannot be taken away without proper justification as has been held in the case
of State Of Jharkhand & Ors. vs Jitendra Kumar Srivastava & Anr.1. The relevant<br>paragraph of the judgment is being extracted herein:
paragraph of the judgment is being extracted herein:
“15. In State of W.B. v. Haresh C. Banerjee [(2006) 7 SCC 651 :<br>2006 SCC (L&S) 1719] this Court recognised that even when,<br>after the repeal of Article 19(1)(f) and Article 31(1) of the<br>Constitution vide Constitution (Forty-fourth Amendment) Act,<br>1978 w.e.f. 20-6-1979, the right to property no longer remained a<br>fundamental right, it was still a constitutional right, as provided in<br>Article 300-A of the Constitution. Right to receive pension was<br>treated as right to property. Otherwise, challenge in that case was<br>to the vires of Rule 10(1) of the West Bengal Services (Death-cum-<br>Retirement Benefit) Rules, 1971 which conferred the right upon<br>the Governor to withhold or withdraw a pension or any part<br>thereof under certain circumstances and the said challenge was<br>repelled by this Court.<br>16. The fact remains that there is an imprimatur to the legal<br>principle that the right to receive pension is recognised as a right<br>in “property”…Once we proceed on that premise, the answer to<br>the question posed by us in the beginning of this judgment<br>becomes too obvious. A person cannot be deprived of this pension<br>without the authority of law, which is the constitutional mandate<br>enshrined in Article 300-A of the Constitution. It follows that<br>attempt of the appellant to take away a part of pension or gratuity<br>or even leave encashment without any statutory provision and<br>under the umbrage of administrative instruction cannot be<br>countenanced.”
			“15. In State				of W.B. v. Haresh C. Banerjee [(2006) 7 SCC 651 :
			2006 SCC			(L&S) 1719] this Court recognised that even when,
			after the repeal of							A		rticle 19(1)(f) and Article 31(1) of the
			Constitution vide Constitution										(Forty-fourth Amendment) Act,
			1978 w.e.f. 20-6-1979, the right to property											no longer remained a
			fundamental right, it was still a constitutional right,												as provided in
			Article 300-A of the Constitution. Right to receive pension														was
			treated as right to property. Otherwise, challenge in that case was
			to	the vires of Rule 10(1) of the West Bengal Services (Death-cum-
			Retirement			B	enefit) Rules, 1971 which conferred the right upon
			the Governor to						withhold or withdraw a pension or any part
			thereof under certain								circumstances and the said challenge was
			repelled by this Court.


			16.		The fact remains that there is an imprimatur to the legal
			principle that the right to receive pension is recognised as a right
			in “property”…Once we proceed on that premise, the answer to
			the question posed by us in the beginning of this judgment
			becomes too obvious. A person cannot be deprived of this pension
			without the authority of law, which is the constitutional mandate
			enshrined in Article 300-A of the Constitution. It follows that
			attempt of the appellant to take away a part of pension or gratuity
			or even leave encashment without any statutory provision and
			under the umbrage of administrative instruction cannot be
			countenanced.”



12. Further, in the case of Dr. Uma Agarwal vs. State of U.P.2, this Court held that
12.		Further, in the case of						Dr. Uma Agarwal vs. State of U.P.								this Court held that

of	State Of Jharkhand & Ors. vs Jitendra Kumar Srivastava & Anr.

(2013) 12 SCC 210
(1999) 3 SCC 438,

the grant of pensionary benefits is not a bounty, but a right of the employee, and as
such cannot be denied without proper justification.
such cannot be denied without proper justification.


13.	At the very beginning, we would like to state that this Court is appalled at the

treatment given to the Appellant by the Respondents herein. The Appellant, before

applying to the post reserved for ST candidates supplied all documents required in

support of his claim as a ST candidate, and got the documents verified and

approved. After being given employment however, the re evaluation of the

authenticity of the documents of the Appellant have been kept pending for 19 years,
dangling like a sword on the Appellants head.
dangling like a sword on the Appellants head.


14.	After serving the Respondent bank for 38 years, the Appellant, two days before

his superannuation received his cessation order without there being any proper

enquiry. Further, on communication made to the respondent no.1, it was found that

on the date of passing the cessation order, no case was pending against the

Appellant. To us, a very clear pattern of harassment is visible, and there appears to

be a sinister motive against the Appellant and his right to pensionary benefits. Even

after 38 years of service, irrespective of the merits of the case, the fact that the

Appellant has not been treated with any respect is sad to see, and the use of delayed
procedure as a dangling sword can only be interpreted as harassment.
procedure as a dangling sword can only be interpreted as harassment.



15.	In the case of							Madhuri Patil and Another Vs Additional Commissioner, Tribal
Development and Others3, this Court gave fifteen guidelines as to how the exercise
of verification of community certificate ought to be completed. The relevant extract
from the said judgment are reproduced hereunder:
from the said judgment are reproduced hereunder

		“The admission wrongly gained or appointment wrongly
		obtained on the										basis of false social status certificate necessarily
		has the effect of depriving														the genuine Scheduled Castes or
		Scheduled Tribes or OBC candidates as																				enjoined in the
		Constitution of the benefits conferred on them by the ,
		constitution. The genuine candidates are also denied admission
		to			educational institutions or appointments to office or posts
		under a State for											want of social status certificate. The ineligible
		or spurious persons who												f	alsely gained entry resort to dilatory
		tactics and create hurdles in														completion of the inquiries by the
		Scrutiny Committee. It is true that the																	applications for admission
		to educational institutions are generally made																			by a parent, since
		on that date many a time the student may be a minor. It																						is the
		parent or the guardian who may play fraud claiming false status
		certificate.								It is, therefore, necessary that the certificates issued
		are			s		crutinised at the earliest and with utmost expedition and
		promptitude.

		F	or that purpose, it is necessary to streamline the procedure for
		the				issuance of social status certificates, their scrutiny and their
		approval,							which may be the following										:	(emphasis supplied)

		9…		The inquiry should be completed as expeditiously as possible
		p	referably by day-to-day proceedings within such period not
		exceeding								t	wo months. If after inquiry, the caste Scrutiny
		Committee finds the claim														to be false or spurious, they should
		pass an order cancelling the														c	ertificate issued and confiscate the
		same. It should communicate within																	o	ne month from the date of
		the conclusion of the proceedings the result																				o	f enquiry to the
		parent/guardian and the applicant.

		10. In case of any delay in finalising the proceedings, and in the
		meanwhile									the last date for admission into an educational
		institution or appointment													to an officer post, is getting expired, the
		candidate be admitted by the																Principal or such other authority

3 (1994) 6 SCC 241 7

competent in that behalf or appointed on the basis of the social<br>status certificate already issued or an affidavit duly sworn by the<br>parent/guardian/candidate before the competent officer or non-<br>official and such admission or appointment should be only<br>provisional, subject to the result of the inquiry by the Scrutiny<br>Committee.<br>15…. As soon as the finding is recorded by the Scrutiny<br>Committee holding that the certificate obtained was false, on its<br>cancellation and confiscation simultaneously, it should be<br>communicated to the concerned educational institution or the<br>appointing authority by registered post with acknowledgement<br>due with a request to cancel the admission or the appointment.<br>The principal etc. of the educational institution responsible for<br>making the admission or the appointing authority, should cancel<br>the admission/appointment without any further notice to the<br>candidate and debar the candidate for further study or continue<br>in office in a post.”


16.	It has been explicitly stated by this Court that the exercise of verification of

community certificate must be completed expeditiously. In the present case

however, as has been mentioned above, there has been an inordinate and

unexplained delay of 19 years, an amount of time which cannot be fathomed within
the ambit of “reasonable time”.
the ambit of “reasonable time”.

17.	Further, the Respondent committee finally, after years of superannuation of the

Appellant submitted its first report, however the same was struck down by the High

Court on grounds of it being violative of principles of natural justice, as the

appellant was not given an opportunity to lead his evidence and cross examine the

witnesses. Subsequent to this, a fresh enquiry was conducted, and another report

was submitted again, however even this report suffers from the same fallacy as the

previous report because even here, the Appellant has not been afforded the

competent in that behalf or appointed on
status certificate already issued or an affidavit duly																	sworn by the
parent/guardian/candidate before the competent officer or																				non-
official and such admission or appointment should be only
p	rovisional, subject to the result of the inquiry by the Scrutiny
Committee.

15….		A	s soon as the finding is recorded by the Scrutiny
Committee				h	olding that the certificate obtained was false, on its
cancellation and						c	onfiscation simultaneously, it should be
communicated to the								c	oncerned educational institution or the
appointing authority by									r	egistered post with acknowledgement
due with a request to cancel the											a	dmission or the appointment.
The principal etc. of the educational													institution responsible for
making the admission or the appointing														a	uthority, should cancel
the admission/appointment without any further																n	otice to the
candidate and debar the candidate for further study or																		c	ontinue
in office in a post.”

opportunity to be heard.

18.	The High Court in its findings in the impugned judgment stated that the

subsequent report was passed ex-parte because the Appellant, even after receiving

notice of the proceedings did not attend the same. The Appellant however claims

that he never received notice. A bare perusal of the material at hand would show

that the notice which was to served to the Appellant was in fact served upon one

Mr. Sudarshan, and the same has been admitted by the postal department and can be
seen in the postal sheet.
seen in the postal sheet.

19.	This fact was brought upon by the Appellant during the review proceedings,

however, the High Court failed to consider such finding and dismissed the review

without adverting to the grounds raised therein and thus the judgment suffers from
an error apparent.
an error apparent.

20.	By not allowing the Appellant an opportunity to be heard, the principle of		“Audi

Alteram Partem”		, a principle of natural justice has also been violated. The

Appellant, in proceedings where the genuineness of his belonging to a community

is under question, must have a right to be heard, and must be given the right to

cross-examine the witnesses, for the nature of the proceedings are not just a

question pertaining his employment, but also something that strikes at the core of
his being, i.e., his identity.
his being, i.e., his identity.
CONCLUSION
CONCLUSION

21.	At this stage we would like to clarify that in cases where employment is based

on a fake community certificate the law is settled that post-retirement benefits

cannot be granted. In the present case however, there exists a very clear difference.

While the Respondents have claimed the Appellant’s community certificate to be

fake, such a claim has not been proven. Even though two reports declaring the

community certificate of the Appellant as fake were submitted after inordinate and

unexplained delay, however, both the reports have not allowed the participation of
the Appellant.
the Appellant.

22.	A community certificate in cases of scheduled tribe communities, unlike any

other piece of paper, is an acknowledgment of a person belonging to a community

which has faced years of oppression. The Constitution of India guarantees certain

rights to people from Scheduled Tribe communities on grounds of historical

injustice, and for the translation of such rights from paper to real life, the

community certificate in most cases becomes an essential document. This certificate,

whilst being an acknowledgment of history, is also a document that tries to rectify

such historical injustice by becoming a tool that fabricates constitutional rights into

reality. In such a scenario where the validity of a community certificate is put to

question, keeping in mind the importance of the document and the effect it has on

people’s rights, the proceedings questioning the document cannot, except in the
most exceptional circumstances, be done ex-parte.
most exceptional circumstances, be done ex-parte.

23.	Any person, whose entire identity, and their past, present and future rights are

challenged, must at the least be given an opportunity to be fairly heard. In the case

at hand however, such a right has been denied to the Appellant, and hence the

burden of proof on the respondents to disprove the nature of the certificate, has not

been discharged. In the absence of the discharge of such burden of proof, this Court
must presume the community certificate of the Appellant to be genuine.
must presume the community certificate of the Appellant to be genuine.

24.	On the basis of the abovementioned discussions, we are of the opinion that both

the impugned orders are liable to be set aside, and the Appellant is held to be

entitled to the post-retirement benefits accrued to him by way of his 38 year long

service. The Respondent bank is directed to grant all post-retirement benefits to the

Appellant which were denied to him along with 6% Simple Interest on account of

unnecessary withholding of payment, from the date the payment was due to the date
of actual payment.
of actual payment.

25.	As a consequence, the appeal stands allowed. No order as to costs.

….……....….......................…,J. (ANIRUDDHA BOSE) ..….…....….......................…,J. (KRISHNA MURARI)

17	TH	MARCH	, 2023