Full Judgment Text
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CASE NO.:
Appeal (civil) 1495 of 2008
PETITIONER:
Chandra Prakash Singh & Ors
RESPONDENT:
Chairman, Purvanchal Gramin Bank & Ors
DATE OF JUDGMENT: 22/02/2008
BENCH:
P. P. Naolekar & Lokeshwar Singh Panta
JUDGMENT:
J U D G M E N T
CIVIL APPEAL NO. 1495 OF 2008
[Arising out of S. L. P. (C) No.3725 of 2005]
Lokeshwar Singh Panta, J.
1. Leave granted.
2. This appeal by special leave filed by Shri Chandra
Prakash Singh and others [hereinafter referred to as the
’Appellants’] is directed against the Judgment and Order dated
27.01.2005 passed by the Division Bench of the High Court of
Judicature at Allahabad in Civil Misc. Writ Petition No.38011
of 2004. By the impugned judgment, the High Court
dismissed the Writ Petition in which prayer for quashing of the
examination for promotion of the Clerk-cum-Cashier and
Officer Scale I to the post of Officers Scale-I and Officer Scale-
II respectively and for quashing the resolution passed by the
Board of Directors of the Gramin Bank on 28.08.2004 and
other consequential reliefs, came to be dismissed.
3. The relevant and necessary facts giving rise to the filing
of the appeal may be stated. Basti Gramin Bank [hereinafter,
referred to as ’Gramin Bank’] is one of the Regional Rural
Banks constituted under Section 3 of the Regional Rural
Banks Act, 1976 [hereinafter referred to as ’the Act’]. Section
6(2) of the Act lays down that Gramin Bank is sponsored by
the State Bank of India which has got 35% shareholding,
whereas the Government of India has got 50% shareholding
while State of U.P. has got balance 15% shareholding. The
Central Government in exercise of the powers conferred by
Section 29 read with Section 17 of the Act, after consultation
with the National Bank and the Sponsor Bank, notified the
Regional Rural Banks (Appointment and Promotion of Officers
and Other Employees) Rules, 1998 [hereinafter referred to as
’the Rules’]. The Third Schedule of the Rules deals with the
appointment to different categories of officers and other
employees to Group A, B and C either by direct recruitment or
by promotion. Clause 2 of the Schedule deals with the
promotion/appointment to the post of Scale II Officer while
Clause 3 deals with the promotion/appointment to the post of
Scale I officer. Clause 2 also provides that the post of Scale II
Officer shall be filled entirely by promotion on the basis of
seniority-cum-merit. It further provides that the selection of
the candidates shall be made by the Committee on the basis of
written test, interview and assessment of Performance
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Appraisal Report for the preceding five years as an officer in
Scale I and that the Committee for considering promotion shall
consist of the Chairman of the concerned Regional Rural
Bank, a Director nominated by the Sponsor Bank and a
Director nominated by the National Bank. Sixty (60) marks
are prescribed for the written test while twenty (20) marks are
fixed for the interview test and twenty (20) marks for
Performance Appraisal Report. So far as the
promotion/appointment to the post of Scale I officer is
concerned, Clause 3 provides that 50% shall be appointed by
direct recruitment and 50% by promotion and that promotions
shall be made on the basis of seniority-cum-merit. In the case
of direct recruitment, the selection of candidates shall be made
by the Banking Services Recruitment Board on the basis of
written test and interview, while in the case of promotion, the
selection of the candidates shall be made by the Committee on
the basis of written test, interview and Performance Appraisal
Report. The composition of the committee is the same as in
the case of promotion/ appointment to the post of Scale II
officer but 70 marks have been prescribed on the basis of the
written test, 20 marks have been allotted for interview and the
remaining 10 marks for Performance Appraisal Report.
4. In the year 2001, 47 posts of Scale II officer and 16 posts
of Scale I officer were required to be filled in the Gramin Bank.
The Board of Directors of the Gramin Bank in its meeting held
on 20.09.2001 approved the holding of the written
examination by the Institute of Banking Personnel Selection,
Mumbai [hereinafter referred to as ’the Banking Institute,
Mumbai’]. A Circular was issued on 09.07.2002, fixing 18th
August, 2002 the date on which the written test was stated to
be held. All the appellants appeared at the written test
without any protest on any ground whatsoever.
5. It appears from the record that one Mr. Tiwary, Director
of Gramin Bank on 22.10.2001 made a complaint to the
Finance Minister, Government of India, giving details of
corruption and financial irregularities committed by the
officers of the Gramin Bank. On 25.06.2002, Uttar Pradesh
Gramin Bank Officers and Workers Organization alleged to
have submitted a complaint to the Chief General Manager,
State Bank of India, against the Chairman of the Gramin
Bank.
6. The appellants filed writ petition in the High Court of
Allahabad praying for quashing of the test held on 18.08.2002
inter alia on the ground that the test was conducted by the
then Chairman of the Gramin Bank, Sri Zameer Hasan \026
Respondent No.10 herein, in spite of the fact that his real
brother-Syed Mohd. Rizvi and cousin-Kazim Hussain Rizvi
who were working as Clerk-cum-Cashiers, were also the
candidates for promotion to the post of officer Scale I.
Respondent No.10 on 28.05.2004 was transferred as General
Manager of the Gramin Bank, Deorai, but he still declared the
result of the examination on 01.06.2004. The State
Government appointed inquiry committee consisting of two
officers of the Directorate of Institutional Finance, Lucknow.
The Committee submitted its report on 18.07.2004 which was
forwarded to the Gramin Bank by the Secretary, Banking
Department, Government of U.P. through communication
dated 27.07.2004. The appellants prayed that in view of the
report submitted against improper functioning and acts of
commission and omission of the officers/officials of the
Gramin Bank, the examinations should be cancelled and fresh
examinations be conducted. The record reveals that after the
written test was held on 18.08.2002 the Workers’ Association
of the Gramin Bank filed a civil suit in which an injunction
was granted by the trial Court as a result of which, the result
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of the written test could not be declared and it was only on
31.05.2004 when the trial Court rejected the application for
grant of temporary injunction that the candidates could be
called for interview for the post of Officer Scale II and Officer
Scale I after declaration of the result of the written test by the
Chairman of the Gramin Bank on 02.06.2004 and 07.06.2004
respectively. The names of the appellants did not appear in
the said list. The writ petition was filed on 17.09.2004 when
the High Court, in view of the report dated 18.07.2004 while
granting time to the respondents in the writ petition to file a
counter affidavit, ordered that the process of selection may go
on but no appointments be made. The interviews were
subsequently held on 23.09.2004 and 24.09.2004 respectively.
7. The stand of the Gramin Bank before the High Court in
its counter affidavit was that the written examination was
conducted by the Banking Institute, Mumbai after the
approval of the Board of Directors of the Gramin Bank; the
inquiry conducted by the Committee was ex parte since no
information was sought for by the members of the Committee
from the Gramin Bank and even otherwise, the State
Government has no authority or power to exercise any control
over the Gramin Bank since under Section 29 of the Act, the
bank is governed by the policies of the Central Government.
The Gramin Bank also stated that the alleged report has not
pointed out any infirmity in the process of conducting the
written examination and promotions to the key posts had been
stalled to the detriment of the interest of the Gramin Bank
initially because of the injunction granted by the civil Court
which was vacated on 31st May, 2004 and thereafter the
process was completed. The First Appeal from the order filed
against the rejection application was dismissed by the High
Court on 16th September, 2004. It was contended that the
writ petition would suffer from delay and laches.
8. In the High Court, four successful candidates, namely,
Ashok Kumar, Rajendra Babu, Satyendra Kumar Srivastava
and Ravi Pratap Singh filed impleadment applications which
were allowed by the High Court. The newly added respondents
filed detailed counter affidavits. The parties have completed
their pleadings. Having heard the learned counsel for the
parties and having perused the entire record, the High Court
has not found any substance in the writ petition of the
appellants and accordingly dismissed the same inter alia
holding that the Banking Institute, Mumbai, an examining
body, was not a party in writ petition; the appellants have
failed to prove allegation of mala fide against Sri Zameer
Hasan, the then Chairman of the Gramin Bank; the appellants
are estopped from challenging the examination held on 18th
August, 2002 as they had participated in the said
examination; the appellants are members of Workers’ Union
who filed the suit in the trial Court and as such the appellants
are playing hide and seek with the Court and the inquiry
report does not indicate that the examination was vitiated due
to influence of Sri Zameer Hasan \026 respondent No.10. Hence,
the appellants have filed this appeal questioning the
correctness and validity of the judgment of the High Court.
9. We have heard learned counsel for the parties and
examined the entire material on record. Mr. Raju
Ramachandran, learned senior Advocate appearing on behalf
of Shri Chandra Prakash Singh \026 appellant No.1, vehemently
contended that the High Court gravely erred by holding that
the appellants have failed to prove allegations of mala fide or
bias against respondent No.10 in the face of the report
submitted by the Committee appointed by the State
Government which creates some cloud and a real likelihood of
bias on the part of respondent No.10, who, at the relevant
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time, was Chairman of the Gramin Bank having some
influence over the Institution helping his brother and cousin
in the selection for the posts in question. He submitted that
as there existed a doubt, which is required to be cleared, the
Gramin Bank being a statutory independent body in all its
fairness, ought to have held some independent inquiry to the
complaint made by the appellants and others in regard to the
selection of the candidates in arbitrary and unfair manner by
the Institution, who conducted the examination. In support of
his submissions, reliance is placed upon the judgment of this
Court in Jitendra Kumar & Ors. v. State of Haryana & Anr.
[2007 (14) SCALE 125]. We have gone through the judgment
in which it has been held that the decision making process
should veer round the question in regard to the lack of bona
fide or an act of arbitrariness on the part of the State. If lack
of bona fide or arbitrariness on the part of the State is proved,
whether the right is considered to be a vested or accrued right,
or otherwise a negative right, the superior Court may exercise
its power of judicial review. The judicial intervention would,
thus, be possible only when a finding of fact is arrived at in
regard to the aforementioned acts of omissions and
commission on the part of the State and not otherwise. In our
view, there cannot be any quarrel or dispute in regard to the
above-mentioned proposition of law, but the law has to be
applied in the facts and circumstances of each case. In the
present case, the facts situation is totally different and,
therefore, this decision is of no assistance to the appellant
No.1.
10. Mr. Raj Kumar Gupta, Advocate appearing on behalf of
the appellant nos. 2 to 8, contended that the appellants have
proved on record that the written examination stood vitiated
because the test was conducted by respondent No.10 in which
his real brother and cousin also appeared for promotion to the
post of officer Scale I. In support of this submission, reliance
is placed upon the report dated 18th July, 2004 submitted by a
Committee of two officers which was communicated to the
Gramin Bank by the Secretary, Banking Department, by his
letter dated 27th July, 2004. He also submitted that the bias
of respondent No.10 is writ large on the face of the record as
the result of the written test was declared on 01st June, 2004
by Sri Zameer Hasan as Chairman of the Gramin Bank in
spite of the fact that he took transfer on 28th May, 2004. He
next contended that the question papers set by the Banking
Institute, Mumbai, were kept by respondent No.10 in his
custody although as per practice the question papers were to
be kept in the custody of two officers of the Bank and the
answer sheets were also kept by him in his custody before
dispatching them to the institute for evaluation which were
dispatched by a private courier and not through the postal
services. He further contended that one of the relatives of
respondent No.10, namely, Syed Md. Rizvi, was on medical
leave during the period when the written examination was
conducted, but still he was permitted to appear in the
examination which would show that the selection of the
candidates for the promotion to the posts, in question, was
processed in hot haste manner with mala fide intention and
with sole object to get Sri Syed Md. Rizvi and Sri Kazim
Hussain Rizvi, the real brother and cousin of respondent
No.10, selected. According to the learned counsel, the said
instances are sufficient to create a reasonable apprehension in
the mind of the appellants that there was likelihood of bias of
the respondent No.10, who might have influenced the
examination body to get his near relatives selected in the
written test. Thus, the High Court has failed to appreciate the
factual situation and legal aspect of the matter in proper
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perspective manner. In support of the submissions, reliance
is placed on the decisions of this Court in Ashok Kumar Yadav
& Ors. v. State of Haryana & Ors. [(1985) 4 SCC 417] and
Krishna Yadav and Anr. v. State of Haryana & Ors. [(1994) 4
SCC 165].
11. In order to appreciate the contentions of the appellants,
we have gone through both the said decisions. In Ashok
Kumar Yadav’s case (supra), two members of the Haryana PSC
did not participate in the interview and had retired from the
room when the interviews of their respective relatives were
held. Moreover, neither of them took any part in any
discussion in regard to the merits of his relatives nor was
there anything brought on record to show that the marks or
credits obtained by their respective relatives at the interview
were disclosed to them. The Court was, thus, of the view that
there was no infirmity attaching to the selections made by the
Haryana Public Service Commission. This Court stated that
one of the fundamental principles of our jurisprudence is that
no man can be a judge in his own cause. The question is not
whether the Judge is actually biased or in fact decides
partially but whether the circumstances are such as to create
a reasonable apprehension in the mind of others that there is
a likelihood of bias affecting the decision. If there is a
reasonable likelihood of bias it is "in accordance with natural
justice and common sense that the justice likely to be so
biased should be incapacitated from sitting". The basic
principle underlying this rule is that justice must not only be
done but must also appear to be done. The Court further held
that this rule is not confined to cases where judicial power
stricto sensu is exercised. It is appropriately extended to all
cases where an independent mind has to be applied to arrive
at a fair and just decision between the rival claims of parties.
Since the instrumentalities of the State are expected to
discharge their functions in a fair and just manner the
applicability of this rule is extended to the decision-making
process of a selection committee constituted for selecting
personnel for service in such instrumentalities. Further, it is
held that if a selection committee is constituted for the
purpose of selecting candidates on merits and one of the
members of the selection committee is closely related to a
candidate appearing for the selection, it would not be enough
for such member merely to withdraw from participation in the
interview of the candidate related to him but he must
withdraw altogether from the entire selection process and ask
the authorities to nominate another person in his place on the
selection committee, because otherwise all the selections made
would be vitiated on account of reasonable likelihood of bias
affecting the process of selection.
12. In Krishan Yadav’s case (supra), the selection of Taxation
Inspectors by Subordinate Selection Board was set aside being
vitiated by fraud and arbitrariness on the basis of accepting
the CBI report. In the said case, serious allegations were
made against the Selection Board which was referred by
Supreme Court of India to CBI for investigation. CBI Report
revealing acts of favouritism, selections without interview as
also on the basis of fake or ghost interviews, tampering with
final records, fabrication of documents, forgery, keeping the
selection list a secret, issuing appointment letters after calling
selected candidates and obtaining joining reports from them
on the spot without any medical test and verification of
antecedents and destroying the original records including the
answer books. On the basis of these serious allegations
against the Selection Board, which are found to be genuine
and truthful by the CBI during the investigation, this Court
set aside the entire selection being vitiated by fraud, nepotism
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and arbitrariness.
13. Dr. Dhruv Mehta, Advocate appearing on behalf of
respondent Nos. 1 to 6 and respondent No.10 - Sri Zameer
Hasan Ex-Chairman/General Manager, on the other hand,
made submissions in support of the judgment of the Division
Bench of the High Court. He contended that the allegation of
bias or mala fide alleged by the appellants against respondent
No.10 is vague and irresponsible which is not established by
the appellants by leading any evidence in support thereof. He
contended that the examination for promotion to the post of
officers Scale I from the Clerk cadre as well as promotion to
the post of scale II was conducted by the Banking Institute,
Mumbai, a body duly approved by the Reserve Bank of India
and promoted by All India Commissioner Banks and not by
respondent No.10, the then Chairman of the Gramin Bank
and the list of successful candidates for interview to the post
was published by the Chairman vide Order dated 02.06.2004
and subsequently the list of successful candidates for
interview to the post of Officer Scale-I was published by the
General Manager of the Gramin Bank vide Order dated
07.06.2004. He submitted that the inquiry got conducted by
the State Government through its agency, was totally against
the provisions of the law as the Gramin Bank has been
established under the Regional Rural Banks Act, 1976 which
is an instrumentality of the Central Government and,
therefore, the State Government has no control whatsoever
over the Gramin Bank to order an inquiry. He contended that
no allegation of change of answer sheets or manipulation of
the marks has been alleged or pleaded by the appellants in the
writ petition and no supporting evidence except bald assertion
of mala fide has been alleged against respondent No.10 by the
appellants nor any allegation of bias or mala fide has been
alleged against the Examination Committee or the Selection
Committee consisting of one Director of the Sponsor Bank and
one Director of the National Bank, who interviewed the
selected candidates whose names were sponsored by the
Examination Committee.
14. Mr. M.N. Krishnamani, learned senior Advocate
appearing for respondent No.15, submitted that the appellants
have not made any allegation regarding the promotion of the
selected candidates from Scale I to Scale II, therefore, there is
no perversity or illegality in the judgment of the High Court
which requires interference by this Court. In nutshell, the
learned counsel appearing on behalf of the contesting
respondents including some of the selected candidates have
contended that the well-reasoned judgment of the High Court
does not suffer from any infirmity or perversity warranting
interference by this Court. In support of their contentions, the
learned counsel has placed reliance upon the decisions of this
Court in State of Punjab v. V.K. Khanna and Ors. [(2001) 2 SCC
330] and the recent judgment of this Court in Dhampur Sugar
(Kashipur) Ltd. v. State of Uttaranchal and Ors. [(2007) 8 SCC
418].
15. In State of Punjab v. V.K. Khanna’s case (supra), this
Court held that the concept of fairness in administrative
action has been the subject-matter of considerable judicial
debate but there is total unanimity on the basic element of the
concept to the effect that the same is dependent upon the facts
and circumstances of each matter pending scrutiny before the
Court and no strait-jacket formula can be evolved therefore.
Further it is stated that as a matter of fact, fairness is
synonymous with reasonableness and on the issue of
ascertainment of meaning of reasonableness, common English
parlance referred to as what is in contemplation of an ordinary
man of prudence similarly placed \026 it is the appreciation of
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this common man’s perception in its proper perspective which
would prompt the Court to determine the situation as to
whether the same is otherwise reasonable or not. Similarly,
the existence of mala fide intent or biased attitude cannot be
put on a strait-jacket formula but depends upon facts and
circumstances of each case. Further, it is said that whereas
fairness is synonymous with reasonableness \026 bias stands
included within the attributes and broader purview of the
word "malice" which in common acceptation means and
implies "spite" or "ill will". Mere general statements will not be
sufficient for the purposes of indication of ill will. There must
be cogent evidence available on record to come to the
conclusion as to whether, in fact, there was a bias or a mala
fide move which resulted in the miscarriage of justice. It is
also held that the test of bias is as to whether there is a mere
apprehension of bias or there is a real danger of bias and it is
on this score that the surrounding circumstances must and
ought to be collated and necessary conclusion drawn
therefrom. In the event, however, the conclusion is otherwise
that there exists a real danger of bias, administrative action
cannot be sustained. If on the other hand allegations pertain
to rather fanciful apprehension in administrative action,
question of declaring them to be unsustainable on the basis
therefor, would not arise.
16. In Dhampur Sugar (Kashipur) Ltd. v. State of Uttaranchal
and Ors.’s case (supra), this Court dealing with the question of
mala fide exercise of power, held as under:
"Allegations of mala fide are serious in nature and
they essentially raise a question of fact. It is,
therefore, necessary for the person making such
allegations to supply full particulars in the
petition. If sufficient averments and requisite
materials are not on record, the Court would not
make "fishing" or roving inquiry. Mere assertion,
vague averment or bald statement is not enough to
hold the action to be mala fide. It must be
demonstrated by facts. Moreover, the burden of
proving mala fide is on the person leveling such
allegations and the burden is "very heavy". In the
present case, except alleging that the policy was
altered by the Government to extend the benefit to
IGL, no material whatsoever was placed on record
by the appellant. It is, therefore, not possible to
hold that the impugned action was mala fide or
malicious."
17. In the light of the above-said settled law, we have
examined the facts and circumstances of the case in hand. In
the present case, it is not in dispute that the Board of
Directors of the Gramin Bank in its meeting held on 20th
September, 2001 approved the holding of the written
examination of promotion by the Banking Institute, Mumbai
for 47 posts of Scale II officers and 16 posts of Scale I officers.
A Circular to that effect was issued on 09th July, 2002 fixing
18th August 2002 as a date on which the written test was
scheduled to be held. The appellants appeared at the written
test but they could not qualify the test. Sri Zameer Hasan \026
respondent No.10, at the relevant time, was the Chairman of
the Gramin Bank whereas respondent nos. 2, 3 & 5 to 9 were
the Directors of the Gramin Bank. Sri J.K. Lahri \026 respondent
no. 4 was the Director of the Gramin Bank as nominee of the
State Bank of India and Sri D.P. Sanda \026 respondent No.11
was Director of Banking Institute, Mumbai. The merit list of
the successful candidates was prepared by the Banking
Institute, Mumbai which was sent to the Gramin Bank. The
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list containing the names of the selected candidates was
placed on the Notice Board by respondent No.10 being
Chairman of the Bank on 01st June 2004. In between the
holding of the written test on 18th August, 2002 and placing
the selected list of the successful candidates on the notice
board on 01st June, 2004, there was an interim injunction
order operating against the Gramin Bank not to declare the
result passed by the Civil Court in suit filed by the Workers’
Association of the Gramin Bank which was subsequently
vacated on 31st May, 2004 permitting the Gramin Bank to hold
the interview for the post of officer Scale II and Officer Scale I
after declaration of the result of the written test. Respondent
No.10 was transferred on 28th May, 2004 as General Manager
of the Gramin Bank, Deorai, but he has not relinquished the
charge till the date of declaring the result of the written test. It
is also established on record that on 07th June, 2004, the
successor Chairman of respondent No.10 placed the same
merit list of the successful candidates on the Notice Board for
the inspection of the candidates. The names of the appellants
herein did not appear in the said select list. The personal
interviews of the successful candidates were held on 23rd
September, 2004 and 24th September, 2004. The inquiry
ordered to be conducted by the State Government in regard to
the mismanagement and other irregularities etc. of the Gramin
Bank, was ex parte without giving any intimation to the Board
of Directors of the Gramin Bank. The State Government ex
facie does not exercise any control over the Gramin Bank since
under Section 29 of the Act, the Gramin Bank is governed by
the policies of the Central Government. The High Court in its
judgment has observed that the report submitted by the
members of the committee appointed by the State Government
did not point out any infirmity in the conduct of the written
examination. The appellants have not made the Banking
Institute, Mumbai, who conducted the examination, as party
in writ petition nor any allegation of mala fide or mal- practice
has been alleged against the institution. The appellants have
also not made Sri Syed Md. Rizvi, brother, and Sri Kazim
Hussain Rizvi, cousin, respectively of the respondent No.10 as
parties in the writ petition who, admittedly, were the
successful candidates in the written test for the posts in
question. The written test was not conducted by respondent
no.10 nor was he heading the selection committee. All that
has been alleged in paragraphs 11 and 14 of the writ petition
by the appellants reads as under:-
"11. That the written-test was held on 18.8.2002
which was conducted by opposite party no.10, who
was officiating Chairman of the Bank at that time.
14. That it was specifically mentioned in the
above mentioned complaints that the opposite
party No.10, was making grounds for promoting
his real brother and his cousin namely Syed Md.
Rizvi and Kazim Hussain Rizvi, who are already
employed in the Bank as Clerk cum Cashier and
he wants their promotion to Officer Scale I."
The above-extracted allegations are absolutely vague,
indefinite and did not contain sufficient material as required
under law in support thereof. The appellants have not
established on record that respondent No.10-Sri Zameer
Hasan, the then Chairman, was an instrument in getting his
brother and cousin through in the written examination and
later on it was under his influence that the Selection
Committee had selected his two relatives for the posts in
question. In addition to the decisions referred to above, this
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Court in Tara Chand Khatri vs. Municipal Corporation of Delhi
& Ors. [AIR 1977 SC 567]; E.P. Royappa v. State of Tamil Nadu
& Anr. [AIR 1874 SC 555] and M/s. Sukhwinder Pal Bipan
Kumar & Ors. v. State of Punjab & Ors. [AIR 1982 SC 65] held
that the burden of establishing mala fide is very heavy on the
person who alleges it. The Court, would, therefore, be slow to
draw dubious inferences from incomplete facts placed before it
by a party, particularly when the imputations are grave and
they are made against the holder of an office which has a high
responsibility in administration. Such is the judicial
perspective in evaluating charges of unworthy conduct against
ministers and other, not because of any special status\005..but
because otherwise, functioning effectively would become
difficult in a democracy.
18. In M. Sankaranarayanan, IAS v. State of Karnataka &
Ors. [AIR 1993 SC 763], this Court observed that the Court
may "draw a reasonable inference of mala fide from the facts
pleaded and established. But such inference must be based
on factual matrix and such factual matrix cannot remain the
realm of institution, surmise or conjecture." In N.K. Singh v.
Union of India and Ors. [(1994) 6 SCC 98], this Court held that
the inference of mala fides be drawn by reading in between the
lines and taking into account the attendant circumstances.
19. Thus, as a proposition of law, the burden of proving mala
fide is very heavy on the person who alleges it. Mere allegation
is not enough. Party making such allegations is under the
legal obligation to place specific materials before the Court to
substantiate the said allegations. There has to be very strong
and convincing evidence to establish the allegations of mala
fides specifically and definitely alleged in the petition as the
same cannot merely be presumed. The presumption under
law is in favour of the bona fides of the order unless
contradicted by acceptable material. In the present case, no
specific and definite real danger of bias has been made against
respondent no.10 to indicate how he was in a position to
influence or manipulate the result of the written test
conducted by the Banking Institute, Mumbai. There are no
specific pleadings nor any proof thereof in the writ petition
filed by the appellants. In such circumstances, the Court is
under no obligation to entertain the pleas of mala fide or
arbitrariness. In the backdrop of the facts and circumstances
of the present case and in the light of the settled law, we agree
with the reasoning recorded by the High Court that there are
no proper pleadings nor there is any other evidence brought
on record by the appellants to substantiate the sweeping, bald
and unfounded allegation of mala fide alleged against
respondent No.10 - Sri Zameer Hasan.
20. The two member committee appointed by the State
Government in its report made certain observations that Sri.
Zameer Hasan \026 respondent No.10 had declared the result of
the written test on 01st June, 2004, despite the fact that he
stood transferred on 28th May, 2004, the answer-sheets should
not have been sent to the Banking Institute, Mumbai, by
courier service and the answer-sheets and the question papers
were not kept in the joint custody, but the respondent No.10
had kept them in his own custody and that one candidate had
appeared at the examination even though he was on leave are
not substantiated by any evidence. It is a fact that respondent
no.10 has not filed any independent counter to the writ
petition, but the respondent - Gramin Bank in its counter has
answered and explained each and every paragraph of the writ
petition. It was the case of the respondent \026 Gramin Bank
before the High Court that Sri Zameer Hasan \026 respondent
No.10 was relieved from the post on 01st June, 2004 and the
list of the successful candidates submitted by the Banking
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 10
Institute, Mumbai, to the Gramin Bank, was placed on the
Notice Board on 02nd June, 2004 by respondent No.10 which
was again circulated by the successor Chairman on 07th June,
2004. The candidate, who was on medical leave, in fact had
appeared in the written examination during his leave period.
The mere assertion of the appellants that one selected
candidate could not have appeared in the written test, because
during the relevant time he was on leave, in the absence of
any supporting evidence cannot be accepted. Further, no
infirmity or illegality appears to have been committed by the
then Chairman, Gramin Bank, by sending the answer books to
the Banking Institute, Mumbai, by courier service. The
Gramin Bank has categorically stated that the question papers
and answer-sheets were kept in the joint custody of the
Chairman and one Director of the Bank. The report submitted
by the State Committees also did not indicate in any manner
whatsoever that there was some fault with the written
examination. There is no averment whatsoever in the report
which may indicate that the list of the successful candidates
was not in accordance with the merits of the candidates
prepared by the examining body. We are, however, satisfied
on the material placed before us that the appellants have been
given fair treatment in the written test held by the Institute
but as they had failed to qualify the test, they, on any
legitimate ground, cannot be permitted to allege wholly
unfounded, irresponsible and uncalled for allegations of
favoritism or mala fide against respondent No.10. For the lack
of specific and definite allegations of mala fide in the writ
petition supported by the evidence in proof of such facts of
mala fides, the writ petition of the appellants has been rightly
rejected by the High Court. We find no fault or infirmity or
perversity in the reasoning of the High Court warranting
interference in this appeal.
21. For the above said reasons, there is no merit in this
appeal and it is, accordingly, dismissed. In the facts and
circumstances of the case, the parties are left to bear their
own costs.