Full Judgment Text
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CASE NO.:
Appeal (civil) 4544 of 2005
PETITIONER:
Ajit Kumar Nag
RESPONDENT:
G.M.(P.J.)Indian Oil Corporation. Ltd. Haldia & Ors.
DATE OF JUDGMENT: 19/09/2005
BENCH:
S.N. VARIAVA,C.K. THAKKER & TARUN CHATTERJEE
JUDGMENT:
J U D G M E N T
WITH
WRIT PETITION (CIVIL) NO. 703 OF 2004
Hon. C.K. Thakker, J.
Civil Appeal No. 4544 of 2005 is directed against the judgment and
order passed by the Division Bench of the High Court of Calcutta on
February 6, 2004 in FMA No. 3093 of 2002 confirming the judgment and
order passed by the learned single Judge on July 9, 2002 in Writ Petition
No. 10667 (W) of 1999.
Writ Petition No. 703 of 2004 is instituted by the petitioner in this
Court under Article 32 of the Constitution challenging the validity of
Clause (vi) of Standing Order 20 of the Certified Standing Orders of the
Indian Oil Corporation Ltd.-respondent herein being arbitrary and against
the principles of natural justice.
To appreciate the controversy raised in the matters, relevant facts
may be stated in brief.
The appellant in Civil Appeal No. 4544 of 2005 (petitioner in
Writ Petition No. 703 of 2004) joined the service of Indian Oil
Corporation (’Corporation’ for short) at Haldia Refinery in 1973. He was
a senior officer of the Corporation. He asserted that all throughout his
service record was good and satisfactory. He was sincere and efficient
and has worked with dedication. At several occasions, he received
appreciation for his work. There was no grievance or complaint by the
authorities and he continued to be a ’devoted employee’ of the
Corporation. It was, no doubt, stated that in 1987, a charge sheet was
issued against him but according to the appellant, subsequently, the
Corporation was satisfied on the explanation submitted by the appellant
that there was no substance in the allegations and the same was,
therefore, withdrawn.. On 11th March, 1988, the appellant was promoted
as Operator ’A’ Special Grade. It is the case of the appellant that his next
door neighbour was one Mrs. Parul Jana, who was Sister-in-Charge in the
Refinery Hospital at Haldia. Parul Jana was treating the appellant as her
brother. The relationship between both the families was close and cordial
and whenever necessary, Parul Jana used to call the appellant as one of
her family members. Parul Jana suddenly developed heart problem in
May, 1999. She was, therefore, required to be admitted for treatment in
Apollo Hospital, Madras. At late night hours on 5th May, 1999, two sons
of Parul Jana rushed to the appellant in grave anxiety and informed him
that they failed to get positive information about their mother and they
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were extremely worried. They, therefore, requested the appellant to
extend his helping hand to get proper information about the health of
their mother. The appellant advised them to go to the Refinery Hospital.
Since the Refinery Hospital, Haldia had referred the case of Parul Jana to
Apollo Hospital, Madras, they would be able to get information from
Haldia Hospital. Sons of Parul Jana requested the appellant to
accompany them to the hospital. The appellant being an employee and
well-known for his work in the hospital, could not refuse the reasonable
request of two persons and accordingly accompanied them. On reaching
the hospital, they found the office of the Chief Medical Officer, Dr.
Bhattacharya, open and he was also available. According to the
appellant, two sons of Parul Jana approached Dr. Bhattacharya and
requested him to give information about their mother who was ailing and
admitted to Apollo Hospital, Madras. Dr. Bhattacharya said nothing in
spite of repeated requests by sons of Parul Jana. On the contrary, Dr.
Bhattacharya without any reason, flared up and told them that he was not
supposed to provide information about Parul Jana to anyone and
everyone. When sons of Parul Jana insisted to have information from Dr.
Bhattacharya, the latter told them that they should not worry about their
mother and in the event of her death, the Corporation would arrange to
bring the dead body from Apollo Hospital, Madras to Haldia and the
body would be handed over to the sons. According to the appellant, he
continued to be a silent spectator all throughout. Sons of Parul Jana were
seriously shocked and disturbed on such statement being made and they
raised objection against the behaviour of Dr. Bhattacharya. Dr.
Bhattacharya called several persons in the hospital and directed them to
throw all persons including the appellant out of the hospital premises.
Sons of Parul Jana could not control themselves. The appellant was also
not spared. Being a heart patient and already had undergone heart
surgery, he was very much upset as outsiders brought by Dr.
Bhattacharya started pushing and dragging the persons including the
appellant and sons of Parul Jana out of the hospital. The appellant was
bewildered and motionless for some time. The appellant apprehended
that Dr. Bhattacharya would create a situation which may adversely
affect appellant’s health. There was heated exchange of words which
resulted in commotion. There was scuffle on the arrival of outsiders and
two sons of Parul Jana out of hospital premises. The appellant
immediately contacted the General Manager (Projects) and requested him
to help to control the situation. When the General Manager reached the
hospital, the appellant explained the situation to him. The General
Manager also met Dr. Bhattacharya to get true and correct facts as to how
the incident had happened. The General Manager then advised the
appellant to go back. Immediately, the appellant left the hospital. In the
entire incident, asserted the appellant, save and except accompanying
sons of Parul Jana, he did nothing. He was not involved in the incident in
any manner whatsoever. It was the Chief Medical Officer, who alone
was responsible for the entire unfortunate situation. He also inflicted
injuries on two sons of Parul Jana. Dr. Bhattacharya, however, cooked
up a false case against the appellant alleging that the appellant had
assaulted and injured him. On 6th May, 1999, i.e. on the next day, the
Chief Medical Officer, Dr. Bhattacharya reported to the management that
at the late night hours of 5th May, 1999, the appellant led by a bunch of
hooligans had visited the hospital, assaulted him, i.e. Dr. Bhattacharya
and abused and threatened other officers. On the basis of the said
complaint, on the same day, i.e., on 6th May, 1999, the General Manager
of the Corporation dismissed the appellant for allegedly assaulting the
Chief Medical Officer. No notice was issued, no explanation was sought,
no charge sheet was filed, no disciplinary enquiry was instituted and no
opportunity of hearing was afforded to the appellant. It was stated that in
the interest of security of Refinery, the General Manager had to take firm
action immediately. Criminal proceedings were also initiated and a
criminal case was filed against the appellant for offences punishable
under Sections 147, 149, 341, 323 and 506 of the Indian Penal Code.
The General Secretary of Haldia Refinery Employees’ Union objected to
unlawful and arbitrary dismissal of the appellant and wrote a letter to the
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Corporation requesting it to reinstate the appellant. No positive action,
however, was taken by the Corporation. In the circumstances, the
appellant was constrained to approach the High Court of Calcutta by
filing a Writ Petition on May 12, 1999. On May 13, 1999, the learned
single Judge, in view of the urgency of the matter, dispensed with the
requirement of Writ Rules, took up the matter for admission-hearing and
directed the appellant to serve copies of the writ petition alongwith
annexures upon all respondents within a week and to file affidavit of
service on the next returnable date which was fixed as 28th June, 1999.
Ex parte ad-interim relief was also granted till June 30, 1999. Being
aggrieved by the order passed by the learned single Judge granting ex
parte ad-interim relief, the Corporation approached the Division Bench
and the Division Bench by an order dated June 22, 1999 set aside the
order passed by the learned single Judge. According to the Division
Bench, in the facts and circumstances of the case, it was not proper for
the learned single Judge to have passed ex parte ad-interim order. The
appeal was accordingly disposed of. So far as criminal case is
concerned, the learned Judicial Magistrate before whom the case was
placed for hearing disposed it of on 5th April, 2002 and the appellant was
acquitted. The Writ Petition came up for hearing before the learned
single Judge who dismissed it on July 9, 2002. The appellant preferred
an appeal before the Division Bench against the order passed by the
learned single Judge which, as stated above, came to be dismissed by the
Division Bench. Against the said order, the appellant had approached
this Court by filing Special Leave Petition on May 17, 2004.
When the matter was placed for admission on July 27, 2004, notice
was issued by this Court. On July 25, 2005, it was placed before a two
Judge Bench. Leave was granted and the Court passed the following
order:
"Delay condoned.
Leave granted.
In view of the fact that there are conflicting
decisions in the case of Workmen of Hindustan Steel Ltd.
vs. Hindustan Steel Ltd. & Ors. reported in 1984 (Suppl.)
SCC 554 and in the case Haripada Khan vs. Union of
India & Ors. reported in 1996(1) SCC 536 it will be
appropriate that this matter be considered by a larger
Bench. Papers be placed before Hon’ble the Chief Justice
for necessary orders."
It may be stated at this stage that on November 20, 2004, the
appellant herein instituted a substantive petition under Article 32 of the
Constitution and challenged the validity and vires of Clause (vi) of
Standing Order 20 of the Certified Standing Orders of the Indian Oil
Corporation since he had not challenged the validity of the Standing
Orders before the High Court of Calcutta. On January 20, 2005, notice
was issued and the Writ Petition was ordered to be tagged with S.L.P.(C)
No. 21248 of 2004 (Civil Appeal NO. 4544 of 2005). That is how, both
the matters have been placed before us.
We have heard the learned counsel for the parties.
Mr. P.P. Rao, learned Senior Advocate, appearing on behalf of the
appellant contended that the respondent-Corporation is ’State’ within the
meaning of Article 12 of the Constitution and every action of the
Corporation, therefore, must be in conformity with the fundamental rights
guaranteed by Part III of the Constitution. According to him, Standing
Order 20, and in particular Clause (vi) thereof, is arbitrary, irrational and
ultra vires Article 14 of the Constitution inasmuch as it empowers and
authorizes the General Manager of the Corporation to dismiss an employee
without following the rule of audi alteram partem and without observing
the principles of natural justice. Such a rule, submitted Mr. Rao, violates
the fundamental principles of justice and infringes Article 14. A similar
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provision in the nature of second proviso to Article 311 (2) of the
Constitution have been interpreted in several cases by this Court and it has
been held that save and except grave situations, no employee can be
dismissed or removed from service without observing the rules of natural
justice. Such provisions have also been held to be bad and against public
policy under Section 23 of the Contract Act, 1872. Even if there is a term
in the contract or in a Rule, it is liable to be struck down as arbitrary and
ultra vires Article 14 as also Article 311 (2) of the Constitution. The
counsel also submitted that the learned single Judge as well as the Division
Bench were wrong in not relying upon the decisions cited at the Bar and in
mechanically and blindly applying Clause (vi) of the Standing Order 20.
Even on merits, the appellant could not be held liable. He had
merely accompanied the two sons of Parul Jana to the hospital. The
unfortunate incident was the result of the behaviour of the Chief Medical
Officer for which, he alone was responsible and the appellant could not be
punished for the misdeeds of Dr. Bhattacharya. It was further submitted
by Mr. Rao that this is a fit case in which necessary guidelines are required
to be issued by this Court so that blanket and uncanalised power under the
said provision may not be misused by the General Manager. It was also
submitted that when the criminal case was registered against the appellant
and he was acquitted of the charges leveled against him, it was incumbent
on the Corporation to reinstate him in service with full back wages.
Finally, it was submitted that the appellant has reached the age of
superannuation. The question of reinstatement is thus academic. It was,
therefore, prayed that keeping in view the totality of facts, the order passed
by the General Manager may be quashed and set aside by directing the
respondent to extend monetary benefits to the appellant.
The learned counsel for the respondent-Corporation, on the other
hand, supported the order. It was stated that the appellant cannot be said
to be an employee holding "civil post" under Part XIV of the Constitution
and, as such, he cannot claim protection of Article 311. He is governed by
the Rules, Regulations and Standing Orders of the Corporation. The
Corporation is governed by the Certified Standing Orders. Clause (iii) of
Standing Order 20 provides for disciplinary enquiry against an employee
of the Corporation and taking of appropriate action on the basis of such
enquiry. Clause (vi) of Standing Order 20, however, deals with special
procedure in certain cases and empowers the General Manager to dismiss
or remove a workman in certain circumstances. In bona fide exercise of
the said power, the General Manager passed an order on 6th May, 1999 and
dismissed the appellant from service. The order is a speaking order
recording reasons as to what compelled the General Manager to treat the
case as exceptional in nature and the General Manager was constrained to
exercise his power under the said provision. It was also submitted that
from the order, it is clear that the appellant misbehaved with the staff of
the hospital and assaulted the Chief Medical Officer and caused injuries.
To ensure maintenance of discipline and taking into account several
statements, the General Manager had taken the impugned action. Such an
action cannot be said to be arbitrary, irrational or abuse of power. The
counsel submitted that acquittal by a criminal court is hardly a relevant
factor so far as exercise of power by the General Manager is concerned.
Standing Order 20 (vi) relates to special procedure in cases of exceptional
nature. Such a provision cannot be said to be ultra vires Article 14 of the
Constitution. As far as Article 311 is concerned, it does not apply to
employees of the Corporation and hence, it cannot be invoked or pressed
into service by the appellant. It was further submitted that the appellant
had challenged the order of dismissal by filing a petition but he did not
challenge the validity or vires of Clause (vi) of Standing Order 20 before
the learned single Judge or before the Division Bench and argued the
matter on merits and the case was decided against him. He, therefore, now
cannot be permitted to challenge the validity of Clause (vi) of Standing
Order 20 before this Court as such challenge would be barred by res
judicata or by constructive res judicata. It was also submitted that the
order passed by the General Manager is subject to appeal under Standing
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Order 21 of the Standing Orders and the appellant had exercised the said
right by filing an appeal. The Appellate Authority considered the relevant
provisions of Standing Orders as also the order dated 6th May, 1999 passed
by the General Manager and having applied its mind to the facts and
circumstances, dismissed the appeal observing that there was no ground to
interfere with the punishment imposed on the appellant. It was, therefore,
submitted that no case has been made out by the appellant and the appeal
deserves to be dismissed. Since the appellant had not challenged the
validity of Clause (vi) of Stranding Order 20 before the High Court, his
petition is not maintainable and may also be dismissed.
Having heard the learned counsel for the parties, we are of the view
that the appeal as well as the writ petition deserve to be dismissed. So far
as preliminary objection as to maintainability of the petition in this Court
and the applicability of res judicata in the appeal is concerned, it is true
that the appellant had not taken the ground as to vires of Clause (vi) of
Standing Order 20 either before the learned single Judge or before the
Division Bench of the High Court. At the same time, however, when he
has approached this Court against the decision of the High Court and has
raised this ground, it would not be appropriate to preclude him from
arguing the case on the vires or validity of Clause (vi) of the Standing
Order 20. Moreover, he has also filed a substantive petition for the said
purpose under Article 32 of the Constitution. The preliminary objection,
therefore, does not impress us and we have allowed both the parties to
argue the case on vires of Standing Order 20(vi) as well as on merits.
As far as acquittal of the appellant by a criminal court is concerned,
in our opinion, the said order does not preclude the Corporation from
taking an action if it is otherwise permissible. In our judgment, the law is
fairly well settled. Acquittal by a criminal court would not debar an
employer from exercising power in accordance with Rules and
Regulations in force. The two proceedings \026 criminal and departmental \026
are entirely different. They operate in different fields and have different
objectives. Whereas the object of criminal trial is to inflict appropriate
punishment on offender, the purpose of enquiry proceedings is to deal with
the delinquent departmentally and to impose penalty in accordance with
service Rules. In a criminal trial, incriminating statement made by the
accused in certain circumstances or before certain officers is totally
inadmissible in evidence. Such strict rules of evidence and procedure
would not apply to departmental proceedings. The degree of proof which
is necessary to order a conviction is different from the degree of proof
necessary to record the commission of delinquency. The rule relating to
appreciation of evidence in the two proceedings is also not similar. In
criminal law, burden of proof is on the prosecution and unless the
prosecution is able to prove the guilt of the accused ’beyond reasonable
doubt’, he cannot be convicted by a court of law. In departmental enquiry,
on the other hand, penalty can be imposed on the delinquent officer on a
finding recorded on the basis of ’preponderance of probability’. Acquittal
of the appellant by a Judicial Magistrate, therefore, does not ipso facto
absolve him from the liability under the disciplinary jurisdiction of the
Corporation. We are, therefore, unable to uphold the contention of the
appellant that since he was acquitted by a criminal court, the impugned
order dismissing him from service deserves to be quashed and set aside.
As far as the status of the appellant is concerned, it must be stated
that Mr. Rao, Senior Advocate fairly conceded at the hearing of the appeal
and the writ petition that the appellant is not governed by Article 311 of
the Constitution since he cannot be said to be ’civil servant’. In this
connection, it will be profitable to refer to a decision of the Constitution
Bench of this Court in Dr. S. L. Agarwal vs. General Manager, Hindustan
Steel Limited (Hindustan Steel Limited I); (1970) 3 SCR 363 ; (1970) 1
SCC 177. In that case, A was appointed as Assistant Surgeon by the Board
of Directors of the Corporation for one year. After completion of the
probation period, he was employed on contract basis and his services were
terminated in accordance with the terms of the contract. He filed a writ
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petition in the High Court contending that his services were wrongly
terminated which was violative of Article 311 of the Constitution. The
Corporation contended that Article 311 was not applicable to him as he
was employed by the Corporation and he neither belonged to Civil Service
of the Union nor held a civil post under the Union.
Upholding the objection and considering the ambit and scope of
Article 311, this Court held that an employee of a Corporation cannot be
said to have held a ’civil post’ and, therefore, not entitled to protection of
Article 311. According to the Court, the Corporation could not be said to
be a ’department of the Government’ and employees of such Corporation
were not employees under the Union. The Corporation has an independent
existence and the appellant was not entitled to invoke Article 311.
Hindustan Steel Limited (I) has been followed by this Court in several
cases. [See Sukhdev Singh & Others v. Bhagatram Sardar Singh
Raghuvanshi & Another, (1975) 1 SCC 421 ; Som Prakash Rekhi v. Union
of India, (1981) 1 SCC 449 ; A.L. Kalra v. Project & Equipment
Corporation of India Ltd., (1984) 3 SCC 316 ; Tekraj Vasandi v. Union of
India & Others, (1988) 1 SCC 236 ; Pyare Lal Sharma v. Managing
Director & Others, (1989) 3 SCC 448 ; State Bank of India v. S. Vijay
Kumar, (1990) 4 SCC 481 ; Satinder Singh Arora v. State Bank of Patiala,
(1992) Supp 2 SCC 224]
In view of the above pronouncements of this Court, there is no doubt
that the respondent-Corporation is right in submitting that the appellant
cannot invoke Article 311 by describing him as holding ’civil post’ under
the Union or a State. Article 311 of the Constitution, therefore, has no
application to the facts of the case.
Mr. Rao, however, placed strong reliance on a decision of two Judge
Bench of this Court in Workmen of Hindustan Steel Limited & Another vs.
Hindustan Steel Limited & Others, (Hindustan Steel II); (1984) Supp SCC
554. In that case, the employer dismissed a workman without holding
enquiry and without giving him an opportunity of being heard. The
power was exercised under Standing Order 32 of the Certified Standing
Orders of Corporation.
Standing Order 32 read thus :
"32. Special Procedure in certain cases.- Where
workman has been convicted for a criminal offence in a
court of law or where the General Manager is satisfied,
for reasons to be recorded in writing, that it is
inexpedient or against the interests of security to
continue to employ the workman, the workman may be
removed or dismissed from service without following
the procedure laid down in Standing Order 31."
The language of Standing Order 32 is ’more or less’ similar to
Standing Order 20 (vi) of the Certified Standing Orders of the respondent-
Corporation which reads as under;
"Where a workman has been convicted for a criminal
offence in a Court of Law or where the General
Manager is satisfied for reasons to be recorded in
writing, that it is neither expedient nor in the interest of
security to continue the workman, the workman may be
removed or dismissed from service without following
the procedure laid down under III of this Clause."
The workman challenged the action inter alia on the ground that
provision of Standing Order 32 is irrational, arbitrary and violative of
Article 311. The Court proceeded to consider the objection against
Standing Order 32 on the touchstone of Article 311. Describing the
provision as ’archaic standing order reminiscent of the days of hire and
fire’ relied upon by a public sector undertaking to sustain an utterly
unsustainable order and to justify an action taken in violation of the
principles of natural justice, the Court stated that such a provision could
not stand. Reproducing Article 311 of the Constitution, the Court held that
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the minimum requirement of observance of principle of natural justice
could not be dispensed with and the action taken by the Corporation was
illegal and unlawful. The Court, therefore, directed the Corporation to
’recall and cancel the order’ by reinstating the workman. The Corporation
was granted an opportunity to recast its Standing Order 32 to be brought in
conformity with the second proviso to Article 311(2) of the Constitution.
The endeavour of Mr. Rao before us is that the above case was a
case of termination of service of an employee of the Corporation. The
Standing Order which came up for consideration in that case was ’more or
less’ similar to the Standing Order with which we are concerned. In spite
of the fact that the employee was engaged by the Corporation, the Court
considered the provisions of Article 311 of the Constitution and the
principles applicable to civil servants. It was, therefore, submitted that in
the present case also, the ratio laid down in that case may be applied and
the impugned order passed by the Corporation may be set aside.
We are unable to agree with Mr. Rao. It is no doubt true that the
provision which came up for consideration before a two Judge Bench in
Hindustan Steel Limited (II) was against an order passed by the
Corporation. It was similar to Clause (vi) of Standing Order 20 which this
Court is called upon to consider. At the same time, however, it cannot be
overlooked that two Judge Bench proceeded to consider the validity of the
provision on the anvil of Article 311 which could not be attracted as it was
not applicable. The point was settled and finally decided by the
Constitution Bench of this Court in Hindustan Steel Limited (I).
Unfortunately, however, the attention of the Court was not invited to the
said case and in Hindustan Steel Limited (II), the Court proceeded as if the
employees of the Corporation were governed by Article 311. Hindustan
Steel Limited (II) is thus per incuriam. It could not have applied Article
311 had the attention of the two Judge Bench been drawn to the decision
of the Constitution Bench in Hindustan Steel Limited (I).
At the time of admission hearing, reference was also made to
another two Judge Bench decision of this Court in Hari Pada Khan vs.
Union of India & Others, (1996) 1 SCC 536. In that case, the petitioner
who was a permanent staff member of Indian Oil Corporation was
involved in theft of oil and a First Information Report was lodged against
him. On the basis of that report, a criminal case was registered and he was
arrested. Relying on Standing Order 20 (iv) of the Corporation, he was
dismissed from service. Standing Order 20(iv), as then stood, was similar
to present Standing Order 20(vi) and empowered the General Manager of
the Corporation to dismiss a workman if he had been convicted for a
criminal offence in a court of law or if the General Manager was satisfied
for reasons to be recorded in writing that it was neither expedient nor in
the interest of the Corporation to continue the workman in service.
Standing Order 20(iv) read thus;
"Where a workman has been convicted for a criminal
offence in a Court of Law or where the General
Manager is satisfied for reasons to be recorded in
writing, that there is neither expedient nor in the
interest of security to continue the workman, the
workman may be removed or dismissed from service
without following the procedure laid down under III of
this clause."
The action of the Corporation was challenged by the dismissed
employee. Upholding the order of the Corporation, this Court held that the
action could be taken. The Court stated that the rule had been made by the
Corporation with the intention to prevent an employee of the Corporation
served with a charge sheet and arrest in furtherance thereof from
continuing in service.
Mr. Rao, however, placed reliance on the following observations :
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"Of course it would be subject to the result of the trial.
Continuance of the officer involved in an offence would
be an affront to good and disciplined conduct of
workmen. His continuance in service of the
Corporation would demoralize the service. Therefore, it
was most expedient in the public interest not to hold any
further enquiry and terminate his services forthwith.
However, it would be subject to the result of the trial."
The endeavour of Mr. Rao is that this Court had expressly stated in
Hari Pada Khan that an order of dismissal from service would be subject
to result of the trial. In the present case, a criminal case was registered
against the appellant and he was prosecuted. The prosecution, however,
resulted in acquittal of the appellant. As per the ratio in Hari Pada Khan,
submitted Mr. Rao, the appellant is entitled to reinstatement.
We are unable to accept the contention. It is true that in Hari Pada
Khan, this Court upheld the order of dismissal by expressly observing
that it would be subject to result of trial but what Mr. Rao forgets is that
in Hari Pada Khan, the power was exercised by the General Manager
not under the second part of the Standing Order 20 (iv), but on the first
part thereof, which covered cases of conviction of a workman for a
criminal offence. The second part dealt with satisfaction of the General
Manager about expediency of not keeping a workman in service. Since
the power was exercised by the General Manager on the first part and the
basis was registration of a of criminal case against the workman,
obviously, this Court was justified in observing that when the action was
taken on the basis of pendency of a criminal case, the action of dismissal
of the workman must abide by the result of the trial. The facts of the case
before us are totally different. In this case, the General Manager has
exercised the power under the second part of the Standing Order 20(vi)
which empowered him to take action on satisfaction for reasons to be
recorded in writing that it was not in the interest of security to continue
the workman in service. The direction in Hari Pada Khan, therefore,
does not apply to the factual matrix of the present case for claiming relief
by the appellant.
The appellant in Hari Pada Khan relied upon Hindustan Steel
Limited (II), and submitted that in that case, this Court struck down a
similar provision being violative of natural justice and also violative of
Article 14. The Court, however, held that the principles of natural justice
had no application when the authority was of the opinion that it would be
inexpedient to hold an enquiry and it would be against the interest of
security of the Corporation to continue in employment the offender
workman when serious acts were likely to affect the foundation of the
institution. The Court also noted that a similar provision was held valid
and intra vires by this Court in Mathura Refinery Mazdoor Sangh v.
Deputy Chief Labour Commissioner & Others, Special Leave Petition
(Civil) NO. 11659 of 1992, decided on November 13, 1995.
Mr. Rao then contended that even though the provision of Article
311 of the Constitution do not apply to the appellant being an employee
of the Corporation, the general principles behind the said provision would
apply to the employees of the Corporation also. He, therefore, submitted
that while dealing with the case of an employee of the Corporation,
second proviso to Article 311(2) and the decisions of this Court in
interpreting the said provision would be kept in mind by the Court. He
also submitted that the Corporation, being the "State" within the meaning
of Article 12 of the Constitution, Article 14 would apply to the
respondent and an order passed or action taken arbitrarily and without
complying with the principles of natural justice must be held null and
void.
Reference in this connection was made to a decision of
Constitution Bench in Union of India & Another vs. Tulsi Ram Patel,
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(1985) 3 SCC 398. In Tulsi Ram Patel, certain civil servants were
dismissed from service by way of penalty by the Government by
invoking the second proviso to Article 311(2) of the Constitution. They
challenged the validity of the orders inter alia on the ground that the
action was against the principles of natural justice and second proviso to
Article 311(2) could not have been invoked. This Court was, therefore,
called upon to consider the legality and validity of the orders in the light
of the provisions of Article 311 (2) and observance of principles of
natural justice.
By majority of 4 : 1, the Court upheld the action of the Government
of invoking exceptional power under the second proviso to Article
311(2). The Court observed that the principles of natural justice have
come to be recognized as a part of the guarantee contained in Article 14
of the Constitution and violation thereof would mean that the action
would be arbitrary and irrational. The Court also stated that Article
311(2) required that before a civil servant is dismissed, removed or
reduced in rank, an enquiry must be held and reasonable opportunity of
being heard must be afforded to him in respect of the charges leveled
against him. The Court, however, observed that in certain circumstances,
application of the principles of natural justice could be modified and even
excluded. Both in England and in India, it is well established that where
a right to a prior notice and an opportunity to be heard before an order is
passed would obstruct in taking of prompt action, such a right could be
excluded. It could also be excluded where the nature of the action to be
taken, its object and purpose and the scheme of the relevant statutory
provisions warrant its exclusion. The maxim audi alteram partem could
not be invoked if import of such maxim would have the effect of
paralyzing the administrative process or where the need for promptitude
or the urgency so demands. The Court stated that if legislation and the
necessities of a situation can exclude the principles of natural justice
including the audi alteram partem rule, a fortiori so can a provision of
the Constitution, for a constitutional provision has a far greater and all
pervading sanctity than a statutory provision. It also stated that the
principles of natural justice having been expressly excluded by a
constitutional provision, namely, the second proviso to Article 311(2), it
could not be reintroduced by a side door by providing for the enquiry.
The Court, however, hastened to add that where the second proviso to
Article 311(2) is applied on an extraneous ground or a ground having no
relation to the situation envisaged in that clause, the action would be
mala fide and void. In such a case, invalidating factor may be refereable
to Article 14. The second proviso to Article 311(2) was based on public
policy, in public interest and for public good and it must be given effect
to. Regarding opportunities to such Government servants who have been
dealt with in exercise of power under the second proviso to Article
311(2), the Court stated :
"In this connection, it must be remembered that a
government servant is not wholly without any
opportunity. Rules made under the proviso to Article
309 or under Acts referable to that article generally
provide for a right of appeal except in those cases where
the order of dismissal, removal or reduction in rank is
passed by the President or the Governor of a State
because they being the highest constitutional
functionaries, there can be no higher authority to which
an appeal can lie from an order passed by one of them.
Thus, where the second proviso applies, though there is
no prior opportunity to a government servant to defend
himself against the charges made against him, he has the
opportunity to show in an appeal filed by him that the
charges made against him are not true. This would be a
sufficient compliance with the requirements of natural
justice. In Maneka Gandhi case and in Liberty Oil Mills
v. Union of India, the right to make a representation
after an action was taken was held to be a sufficient
remedy, and an appeal is a much wider and more
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effective remedy than a right of making a
representation."
The submission of Mr. Rao is that second proviso to Article 311(2)
deals with three situations,
(i) where a person is convicted on a criminal charge;
(ii) where the disciplinary authority is satisfied for the
reasons to be recorded in writing that it is not reasonably
practicable to hold an enquiry; and
(iii) where the President or Governor is satisfied that in the
interest of the security of the State, it is not expedient to hold
an enquiry.
According to Mr. Rao, Clause (vi) of Standing Order 20 likewise
takes into account two eventualities;
(i) conviction of a workman for a criminal offence by a
court of law; and
(ii) satisfaction of the General Manager for reasons to be
recorded in writing that it is neither expedient nor in the
interest of security to continue a workman.
He submitted that the power under Clause (vi) of Standing Order
20 is a serious inroad on the right of a workman and must be construed
strictly. In other words, it is a drastic provision which totally excludes
application of natural justice and audi alteram partem rule and that too
on satisfaction of General Manager and not of the Corporation. Clause
(c) of second proviso to Article 311(2) of the Constitution envisages the
satisfaction of constitutional functionary, i.e. President of India or
Governor of a State. In the case of the respondent-Corporation, however,
the power is conferred on General Manager \026 an officer of the
Corporation. If this provision is upheld, there is every possibility and
likelihood of power being abused or misused. Such provision must,
therefore, be held arbitrary and ultra vires of Article 14.
We are unable to agree with the learned counsel. The law is clear
on the point. Tulsi Ram Patel dealt with a similar provision and held it to
be constitutionally valid and intra vires Article 14. Since it related to
civil servants under the Union or under a State, Clause (c) provided for
the satisfaction by the President or the Governor, as the case may be, "in
the interests of the security of the State". Certified Standing Orders of
the respondent-Corporation have limited application to the Corporation.
There was, therefore, no question of security of State and hence, the
limited power is conferred on the General Manager of security of the
Corporation. General Manager is the highest administrative head of the
Corporation. So it cannot be contended that the power has been
conferred on a petty officer of the Corporation.
We are equally not impressed and hence unable to uphold the
contention that Clause (vi) of Standing Order 20 confers blanket or
uncanalised power on the General Manager. In our judgment, sufficient
guidelines and safeguards have been provided in the Standing Orders,
themselves, such as (i) the power is conferred on the highest
administrative head of the Corporation; (ii) eventualities have been
specifically and expressly stated in Clause (vi) of Standing Order 20; (iii)
satisfaction of the General Manager that such an eventuality has arisen;
(iv) recording of reasons in writing; and (v) right of appeal against the
decision of the General Manager. Such a provision, in our considered
view, cannot be held arbitrary or unreasonable, violative of Article 14 of
the Constitution.
Mr. Rao may be right in submitting that in a given case, the
General Manager may not exercise the power legally, properly and
reasonably. In that case, the action would be held bad. Apart from the
fact that there is an appeal against the order passed by the General
Manager, an aggrieved party can also approach a High Court under
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Article 226/227 of the Constitution and/or this Court under Article
32/136 of the Constitution. Judicial review conferred on High Courts and
on this Court by the Constitution remains unfettered and unaffected.
It is well settled that a provision which is otherwise legal, valid and
intra vires cannot be declared unconstitutional or ultra vires merely on
the ground that there is possibility of abuse or misuse of such power. If
the provision is legal and valid, it will remain in the statute book.
Conversely if the provision is arbitrary, ultra vires or unconstitutional, it
has to be declared as such notwithstanding the laudable object underlying
it.
Before about five decades in A. Thangal Kunju Musaliar v. M.
Venkitachalam Potti & Anr. 1955 (2) SCR 1196, dealing with a similar
contention, speaking for the Constitution Bench, Bhagwati, J. stated;
"It is to be presumed, unless the contrary were shown
that the administration of a particular law would be done
"not with an evil eye and unequal hand" and the
selection made by the Government of the cases of
persons to be referred for investigation by the
Commission would not be discriminatory."
Again, in the leading case of State of Rajasthan & Others v. Union
of India & Others, (1977) 3 SCC 592, a seven-Judge Bench was called
upon to consider a similar argument. It was urged that extraordinary
power conferred by Article 356 of the Constitution could be abused.
Negativing the contention, Bhagwati, J. (as he then was) stated;
"It must be remembered that merely because power
may sometime be abused, it is no ground for denying
the existence of the power. The wisdom of man has
not yet been able to conceive of a government with
power sufficient to answer all its legitimate needs and
at the same time incapable of mischief". (emphasis
supplied)
Very recently, in Sushil Kumar Sharma v. Union of India &
Others, (2005) 6 SCC 281, constitutional validity of Section 498-A of the
Penal Code was challenged inter alia on the ground of its misuse and/or
abuse. A prayer similar to one which has been made before us by Senior
Advocate Mr. Rao was also made in Sushil Kumar Sharma that in case
the provision is held to be constitutional and intra-vires, this Court may
formulate "guidelines" so that innocent persons are not victimized by
unscrupulous elements making false accusations. Reiterating the
principle that mere possibility of abuse of legal provision would not make
a statute invalid, the Court rejected the prayer.
Since, in our opinion, sufficient safeguards have been provided in
the Standing Orders and action taken by the General Manager under
Standing Order 20(vi) could be challenged in appeal under Standing
Order 21 and in the High Court under Article 226/227 and in this Court
under Article 32/136 of the Constitution, the same cannot be held
arbitrary, unreasonable or ultra vires Article 14 of the Constitution. If in
a given case, there is abuse or mis-use of power, such action or order
would be bad. It would, however not make Standing Order 20(vi) ultra
vires.
In our opinion, the learned counsel for the respondent -
Corporation, is right that Standing Order 21 which enables the aggrieved
party to file an appeal is very wide. It reads thus:
"21. Appeals :
The authorities competent to impose various
penalties mentioned in Standing Orders No. 20 as well
as the appellate authorities shall be notified by the
management from time to time. A workman on whom
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any of the penalties is imposed shall have the right of
appeal to the authority notified in this behalf. The
appeal shall be submitted within 15 days of receipt of
the order of the punishing authority, and the appellate
authority, shall dispose of the appeal within 30 days of
receipt of the appeal.
At the further enquiry, if any, held in the appeal,
the workman concerned shall be afforded reasonable
opportunity of explaining and defending his action
with the assistance of a co-worker and the Presenting
Officer may also be given the opportunity to furnish
further evidence. The appellate authority may also
impose enhance penalty after giving an opportunity to
the applicant to show cause."
Plain reading of the above Standing Order makes it abundantly
clear that a workman on whom any of the penalties is imposed has a right
to appeal and the Appellate Authority has to decide such appeal of a
workman in accordance with law after affording him reasonable
opportunity. It also allows the appellant-workman to have assistance of a
co-worker. It, therefore, cannot be said that once an action is taken under
Clause (vi) of Standing Order 20, the matter is over. In view of
exceptional situation contemplated by Clause (vi) and on satisfaction of
the General Manager that an immediate action is necessary, he can
dismiss or remove the workman. Such workman, however, may invoke
Standing Order 21 and may file an appeal and convince the Appellate
Authority that the action taken by the General Manager in purported
exercise of power under Standing Order 20(vi) was unlawful or improper.
If the Appellate Authority is satisfied, it may set aside the action of the
General Manager and grant appropriate relief to the workman. Even if
the Appellate Authority holds against the workman and confirms the
order of dismissal/removal, judicial review is available to the aggrieved
appellant, albeit on limited grounds. To us, therefore, it is clear that the
Standing Order 20(vi) allows the General Manager to take an action in
emergency keeping in view exceptional situation which has arisen and he
is satisfied that the workman should be removed or dismissed from
service without following procedure laid down in Standing Order 20(iii).
Whereas Standing Order 20(iii) deals with cases in general and provides
enquiry and pre-decisional hearing, Standing Order 20(vi) is an exception
to the general rule and deals with special cases under which an action can
be taken. Since appeal is provided in all cases, the case is one of post-
decisional hearing.
We are aware of the normal rule that a person must have a fair trial
and a fair appeal and he cannot be asked to be satisfied with an unfair
trial and a fair appeal. We are also conscious of the general principle that
pre-decisional hearing is better and should always be preferred to post-
decisional hearing. We are further aware that it has been stated that apart
from Laws of Men, Laws of God also observe the rule of audi alteram
partem. It has been stated that the first hearing in human history was
given in the Garden of Eden. God did not pass sentence upon Adam and
Eve before giving an opportunity to show cause as to why they had eaten
forbidden fruit. [See R.v. University of Cambridge, (1723) 1 Str 557].
But we are also aware that principles of natural justice are not rigid or
immutable and hence they cannot be imprisoned in a straight-jacket.
They must yield to and change with exigencies of situations. They must
be confined within their limits and cannot be allowed to run wild. It has
been stated ; "To do a great right after all, it is permissible sometimes to
do a little wrong". [Per Mukharji, C.J. in Charan Lal Sahu v. Union of
India, (Bhopal Gas Disaster); (1990) 1 SCC 613] While interpreting legal
provisions, a court of law cannot be unmindful of hard realities of life. In
our opinion, the approach of the Court in dealing with such cases should
be pragmatic rather than pedantic, realistic rather than doctrinaire,
functional rather than formal and practical rather than ’precedential’.
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Mr. Rao urged that the General Manager has mechanically and
without considering the facts of the case has passed the order under
Standing Order 20(vi) and on that ground also, it deserves to be set aside.
Now, the order passed by the General Manager in the exercise of power
under Standing Order 20(vi) dated 6th May, 1999 is on record. It is a self-
contained order. Detailed reasons have been recorded by the General
Manager inter alia stating that the appellant herein had led a bunch of
hooligans to Haldia Refinery Hospital and assaulted and abused Dr.
Bhattacharya, the Chief Medical Officer, when he was in the hospital
alongwith other doctors attending a critical patient in the indoors. The
appellant had slapped, kicked, pushed around and dragged Dr.
Bhattacharya. The appellant alongwith his associates prevented anyone
present there from making any contact outside even on phone. On
coming to know about the incident, some officers reached the site. They
were also abused and threatened by the appellant. The General Manager
then went through the complaints/reports of various persons present
during and immediately after the incident and on careful examination of
the material, he was satisfied that the appellant indulged himself in the
acts of violence without any valid reason or compelling circumstances or
provocation. Those acts of appellant resulted into an atmosphere of
terror being created within the hospital premises. The doctors of the
hospital have jointly submitted a representation expressing their concern
and demoralizing and terrorising effect that was created in the minds of
the hospital staff. The General Manager also noted that the situation had
arisen out of the incident which resulted into suspension of the hospital
services resulting into great inconvenience being caused to the residents
of the Refinery Township. The Officers’ Association which was the
recognized Union had condemned the incident and demanded stern
action. The General Manager perused the Memorandum submitted to
him by the representative of Indian Medical Association of Haldia and
Chaitanyapur Branches and the Association of Health Services Doctors
(WB), Haldia Branch, condemning the incident and assault on Dr.
Bhattacharya. The General Manager noted that the appellant was not
directly connected with the case of Parul Jana, the Head Sister-in-Charge
of Haldia Hospital, who was undergoing treatment at Apollo Hospital,
Madras, which was reported to be undertaken on 3rd May, 1999
successfully. The General Manager was satisfied that the acts of the
appellant of threatening, intimidating and assaulting senior officer of the
Refinery Hospital and abusing and behaving unmannerly with superior
authority amounted to subversive and prejudicial to the interest of the
Corporation. He was also ’satisfied’ and ’convinced’ that the said acts of
misconduct were ’very grave and serious’. Those acts jeopardized the
normal operation not only of the Refinery Hospital but also of the
Corporation. Besides carefully examining the facts and circumstances,
the General Manager also examined the past record of the appellant. The
appellant was issued with a punishment of withholding four annual
increments with cumulative effect for acts of misconduct. The
Management, however, took a lenient and magnanimous view and
revised the punishment twice, first on March 12, 1990 and then on
February 4, 1997, thereby bringing down the punishment to withholding
of only one annual increment with non-cumulative effect. According to
the General Manager, the appellant indulged in the acts of misconduct
without any provocation or compelling circumstances. He was,
therefore, satisfied that for serious and grave acts, action was required to
be taken again him. According to the General Manager, keeping in view
the magnitude of the issues involved and in the interest of restoring and
maintaining normal discipline and morale of employees of the
Corporation, and the Hospital Staff in particular and to immediately
restore the confidence of the Officers’ community, of their security in
due discharge of their duties honourably and fearlessly, and in the interest
of the security of the Refinery, firm action was necessary. He was
convinced that delay would seriously jeopardize the interest of the
Corporation especially the vital requirement of providing Medical
Services to the sick and needy and the serious impact the incident may
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have on the normal operation of the Refinery. On those grounds, and in
the facts and circumstances, the General Manager was satisfied that it
was not in the interest of the security of the Refinery and Staff to
continue the appellant in the employment of the Corporation and
accordingly he had dispensed with the enquiry under Standing Order
20(iii) and exercised power under Standing Order 20(vi) and passed the
impugned order. In our opinion, such action can never be termed
arbitrary, irrational or unreasonable.
When the appellant preferred an appeal against the order passed by
the General Manager, the Appellate Authority considered the facts and
circumstances of the case and dismissed the appeal by an order dated 11th
December, 2001. The Appellate Authority noted that the appellant in his
Memorandum of Appeal did not deny various acts of misconduct leading
to the serious incident of 6th May, 1999 at Haldia Refinery. The appellant
also did not put forward any explanation or provocation for the
unfortunate incident but had accepted that he engaged in certain acts
which he would not like to remember. The Appellate Authority,
therefore, held that the acts of misconduct were ’very grave and serious’
and were committed without provocation or compelling circumstances.
The Appellate Authority also observed that Dr. Bhattacharya
sustained several injuries in the attack. According to the report issued by
Dr. Bimal Maiti, an independent doctor at Haldia Hospital, Dr.
Bhattacharya had the following injuries on his person;
(1) large echymosis in front of right thigh;
(2) large echymosis over right back of thigh;
(3) small abrasion over the nose (It);
(4) large bruise over cheek (It);
(5) multiples scratches over cheek;
(6) tender bruise over right elbow; and
(7) haematonia just below the right elbow.
According to the Appellate Authority, therefore, the situation had
arisen out of the incident in which it was neither expedient nor in the
interest of the security of the Refinery and its personnel to continue the
workman any more and the power was exercised by the General Manager
under Standing Order 20(vi). The Appellate Authority noted that in past
also, the appellant had committed misconduct but a lenient view was
taken and the punishment imposed on him was reduced. Such
punishment, however, had no any deterrent effect on the appellant and he
repeated similar acts of misconduct in 1999. There was, therefore, no
ground for further leniency. Taking into account grave and serious
misconduct committed and their likely repercussions on the general
discipline and safety of officers, the punishment imposed on him needed
no interference. Accordingly, the appeal was dismissed.
In our view, in the facts and circumstances of the case, it cannot be
said that either the General Manager or the Appellate Authority in
coming to the above conclusion had committed any error of law which
requires interference in the exercise of power of judicial review by this
Court.
In Satyavir Singh & Others v. Union of India & Ors. (1985) 4
SCC 252, a three-Judge Bench of this Court has held that taking of
appropriate action in exceptional circumstances is a matter of assessment
to be made by the disciplinary authority and must be judged in the light
of the circumstances then prevailing. Normally, it is the officer on the
spot who is the best judge of the situation and his decision should not be
interfered with lightly. In Satyavir Singh, this Court considered orders of
dismissal passed against some of the employees of Research and
Analysis Wing (RAW) without holding inquiry as contemplated by
Article 311(2) of the Constitution. The power was exercised by the
disciplinary authority under the second proviso to Article 311(2).
Reiterating the principles laid down in Tulsi Ram Patel and upholding the
action, the Court observed that there are circumstances in which such a
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drastic action is called for. The Court noted that it was not possible to
enumerate the cases in which it would not be reasonably practicable to
hold inquiry under Article 311(2), but certain illustrative cases have been
highlighted which included activities of terrorizing, threatening or
intimidating witnesses who might be giving evidence against a civil
servant or threatening, intimidating or terrorizing disciplinary authority
or his family members or creating an atmosphere of violence or general
indiscipline and insubordination. The Court also indicated that though it
was a mandate of the Constitution to record reasons in writing for
dispensing with an inquiry, it was not necessary that such reasons should
find place in the final order or they should be communicated to the
delinquent. It was no doubt emphasised that it would be better if such
reasons are recorded in the order itself and communicated to the
delinquent officer. Regarding suspension of a civil servant, the Court
opined that it is not necessary that the civil servant should be placed
under suspension until such time the situation is improved and it becomes
possible to hold inquiry against him. According to the Court, it would be
difficult to foresee how long the situation would last and when normalcy
would return or be restored.
The Court then said ;
"In certain cases, the exigencies of a situation would
require that prompt action should be taken and
suspending a civil servant would not serve the
purpose and sometimes not taking prompt action
might result in the trouble spreading and the
situation worsening and at times becoming
uncontrollable. Not taking prompt action may also
be construed by the trouble-makers as a sign of
weakness on the part of the authorities and thus
encourage them to step up their activities or
agitation. Where such prompt action is taken in
order to prevent this happening, there is an element
of deterrence in it but this is an unavoidable and
necessary concomitance of such an action resulting
from a situation which is not of the creation of the
authorities."
In our opinion, ratio laid down in Central Inland Water Transport
Corporation v. Brajo Nath Ganguly, (1986) 3 SCC 156 and in Delhi
Transport Corporation v. Delhi Transport Corporation Mazdoor
Congress, 1991 Supp (1) SCC 600 : JT (1990) 3 SC 725 is not relevant or
applicable to the case on hand. In those cases, power had been conferred
on the authority to dispense with services of a permanent/confirmed
employee. This Court, therefore, held that such a provision cannot be
said to be in consonance with law. In Brajo Nath Ganguly, the Court
observed that the provision was against public policy reflected in Section
23 of the Contract Act, 1872 and the provision was described as Henry
VIII clause.
We have also gone through the decision of the learned single Judge
as well as of the Division Bench. It is clear from the record of the case
that the Writ Petition was filed by the appellant immediately after the
order of dismissal was passed against him and the learned single Judge
considered the legality of the order. The learned single Judge perused
the relevant record produced at the time of hearing and noted that the
alleged incident did take place. All persons requested for taking a strong
action against the petitioner (appellant herein) and no lenient view was
called for. Even after sons of Parul Jana came down from the 1st floor
and informed the petitioner that their mother’s condition was stable, the
petitioner continued the agitation. Being an employee of the
Corporation, the petitioner had no business to lead unruly mob resulting
in damage to property and assaulting the hospital-staff who were on duty
and were treating patients including a patient having cardiac treatment.
The learned single Judge, therefore, concluded ;
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"If such discipline is not considered to be grave, I
do not know what more should be appropriate to
justify the order of dismissal".
When an intra-court appeal was filed against that order, the
Division Bench again considered the contentions raised by the appellant.
Dealing with the argument that the documents were not given, it was
submitted on behalf of the Corporation that no such prayer was made.
The Court, therefore, observed relying on a decision of this Court in
Aligarh Muslim University & Others v. Mansoor Ali Khan, AIR 2000 SC
2783 that no prejudice had been caused to the appellant. The Court
examined the report and perused the record. It was disclosed from the
material placed before the Court that there was a situation which created
disorder in the establishment for which police had to be called for and the
General Manager (PJ) in-charge had to rush late at night. People were
frightened and there was ultimatum by staff-members due to which there
was a possibility of break down of the entire system. The Division
Bench, therefore, stated; "These are situations with which the person at
the spot has to deal with. The authority on the spot is the best judge of
the situation prevailing. It is he who has to assess the situation and take
steps". In the light of prevailing circumstances, the Division Bench
observed, the action could not be termed as illegal, unlawful or perverse.
Regarding mala fide, the Court noted that adequate material had not been
placed on record which would go to show that the order was malicious or
mala fide. The Division Bench, therefore, dismissed the appeal.
In our view, neither the learned single Judge nor the Division
Bench has committed any error of law and/or of jurisdiction which
deserves interference in exercise of discretionary jurisdiction under
Article 136 of the Constitution. As is clear, the situation has been created
by the appellant. It was very grave and serious and called for immediate
stern action by the General Manager. Exercise of extraordinary power in
exceptional circumstances under Standing Order 20 (vi) in the
circumstances, cannot be said to be arbitrary, unreasonable or mala fide.
It is well-settled that the burden of proving mala fide is on the person
making the allegations and the burden is "very heavy". [vide E.P.
Royappa v. State of Tamil Nadu & Anr. (1974) 4 SCC 3]. There is
every presumption in favour of the administration that the power has
been exercised bona fide and in good faith. It is to be remembered that
the allegations of mala fide are often more easily made than made out and
the very seriousness of such allegations demands proof of a high decree
of credibility. As Krishna Iyer, J. stated in Gulam Mustafa & Others v.
State of Maharashtra & Others (1976) 1 SCC 800; "It (Mala fide) is the
last refuge of a losing litigant".
We hold Clause (vi) of Standing Order 20 of the Certified Standing
Orders of the respondent-Corporation valid, constitutional and intra vires
Article 14 of the Constitution. We also hold the action taken by the
General Manager of the respondent \026 Corporation dismissing the
appellant \026 petitioner from service as legal and lawful. We thus see no
substance either in the appeal or in the writ petition and both are,
therefore, dismissed. In the facts and circumstances of the case, however,
there shall be no order as to costs.