# B. J. SHELAT v. STATE OF GUJARAT & ANR - **Citation:** [1978] 3 S.C.R. 553 - **Court:** Supreme Court of India - **Decided:** 1978-03-28 - **Bench:** R. S. Sarkaria, N. L. Untwalia, P. S. Ka!Lasam - **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/b-j-shelat-v-state-of-gujarat-anr-7361 - **Pages:** 8 ## Headnote Bombay Civil Service Rules-r. 161(2) (ii) proviso--Scope of-Government liad power to withhold permission for voluntary retirement if departmentat proceedings are under contemplation-Government servant gave due notice of intention to retire-Order of suspension not comniunicated to Government servant before retirement-Communication if incumbent-Government if competent to take disciplinary action after retirenient. Rule 161 (2)(ii) of the Bombay Civil Services Rules provides : "any Government servant to whom clause (a) applies may, by giving notice of not less than three months in writing to the Appointing Authority, retire from service .... and in any other case, after he has attained the age of 55 years. Provided that it shall be open to the Appointing _Authority to withhold' permission to retire to a Government servant who is under suspension, or against "°·horn departmental proceedings are pending or contemplated, and who seeks to retire under this sub-clause." During the pendency of certain appeals before the High Court from the decisions of the &J)pellant who was a Judicial Officer the accused in those cases filed affidavits aUeging corruption on the part of the appellant. In the meantime on July 17, 1973 the appellant gave a notice under r. 161 communicating his desire to retire on attaining the age of 55 years, on December 3, 1973. On December 11, 1973, pending finalisation of departmental proceedings 'vhich were under contemplation, the High Court sbspended him from service. The appellant's v..Tit petition challenging the Governments nction in taking disciplinary action against him after retirement was dismissed by the High Court. The Special Leave Petition filed by him in this Coun was allowed to be with~ drawn reserving to him the right to agitate the question whether disciplinary action could be taken against him after retiremiynt. Eventually, hovvever, he was dismissed. On the question whether it was incumbent on the Government to communicate to the Government servant its decision to \1.'ithhold permission to retire on one of the grounds specified in the proviso : IIELD : 1. For the proviso to become operative it is necessary that the Government should not only take a decision but communicate it to the Government servant. It is not necessary that the communication should reach the Governn1ent Set>:ant. [558 E] c E F 2. But for the proviso the right of the Government servant to retire V.'Ould have been absolute. The proviso has restricted the right conferred on the Goven1ment sen·ant under it. It is open to the Appointing A.uthority to withhold permission to retire when the Government servant is under suspension or G departnten:al proceedings are pending or are cont~1nplated against him. [557 C-EJ 3. The proviso contempl~tes positive action by the Appointing Authority. The \Vords "it shall be Open to the Appointing Authority to withhold pern1ission" ii:t r. 161 proyis_o indicate that the Appointing Authority has got an option- to wtthhold pern11ss1on and that could be exercised by communic:ating its intention to withhold permission to the Government servant. The Appointing Authority may have con~idc:ed the question and may not have taken a decision either way H or after considering the facts of the case may have come to the conc1usion that it is better to aUow the Government servant to retire than take any action against him. [558 C-E] A . B 554 SUPREME COURT REPORTS [1978] 3 S.C.R. Dinesh Char;dra Sangma v. State of Assam ""d ()rr [1978]1 S.C.R. 607, distinguished. · ., L.ewi' & Allenby (1909) Ltd. v. Pegge; [1914] l Ch. D. 782; held inapphcabJe. State of Punjab v. Khemi Ram; [1970] 2 S.C.R. 657; Suue of Punjab v. Amar Singh Harika; A.I.R. 1966 S.C. 1313; referred to . In the instant case it was incumbent on the Appointing Authority to withhold permission to retire on one of the conditions mentioned in the proviso. Admittedly the order of suspension was not communicated before the date of retirement. Therefore, disc ## Text ) L - • 553 B. J. SHELAT v. STATE OF GUJARAT & ANR. March 28, 1978 [R. S. SARKARIA, N. L. UNTWALIA AND P. S. KA!LASAM, JJ.] Bombay Civil Service Rules-r. 161(2) (ii) proviso--Scope of-Government liad power to withhold permission for voluntary retirement if departmentat proceedings are under contemplation-Government servant gave due notice of intention to retire-Order of suspension not comniunicated to Government servant before retirement-Communication if incumbent-Government if competent to take disciplinary action after retirenient. Rule 161 (2)(ii) of the Bombay Civil Services Rules provides : "any Government servant to whom clause (a) applies may, by giving notice of not less than three months in writing to the Appointing Authority, retire from service .... and in any other case, after he has attained the age of 55 years. Provided that it shall be open to the Appointing _Authority to withhold' permission to retire to a Government servant who is under suspension, or against "°·horn departmental proceedings are pending or contemplated, and who seeks to retire under this sub-clause." During the pendency of certain appeals before the High Court from the decisions of the &J)pellant who was a Judicial Officer the accused in those cases filed affidavits aUeging corruption on the part of the appellant. In the meantime on July 17, 1973 the appellant gave a notice under r. 161 communicating his desire to retire on attaining the age of 55 years, on December 3, 1973. On December 11, 1973, pending finalisation of departmental proceedings 'vhich were under contemplation, the High Court sbspended him from service. The appellant's v..Tit petition challenging the Governments nction in taking disciplinary action against him after retirement was dismissed by the High Court. The Special Leave Petition filed by him in this Coun was allowed to be with~ drawn reserving to him the right to agitate the question whether disciplinary action could be taken against him after retiremiynt. Eventually, hovvever, he was dismissed. On the question whether it was incumbent on the Government to communicate to the Government servant its decision to \1.'ithhold permission to retire on one of the grounds specified in the proviso : IIELD : 1. For the proviso to become operative it is necessary that the Government should not only take a decision but communicate it to the Government servant. It is not necessary that the communication should reach the Governn1ent Set>:ant. [558 E] c E F 2. But for the proviso the right of the Government servant to retire V.'Ould have been absolute. The proviso has restricted the right conferred on the Goven1ment sen·ant under it. It is open to the Appointing A.uthority to withhold permission to retire when the Government servant is under suspension or G departnten:al proceedings are pending or are cont~1nplated against him. [557 C-EJ 3. The proviso contempl~tes positive action by the Appointing Authority. The \Vords "it shall be Open to the Appointing Authority to withhold pern1ission" ii:t r. 161 proyis_o indicate that the Appointing Authority has got an option- to wtthhold pern11ss1on and that could be exercised by communic:ating its intention to withhold permission to the Government servant. The Appointing Authority may have con~idc:ed the question and may not have taken a decision either way H or after considering the facts of the case may have come to the conc1usion that it is better to aUow the Government servant to retire than take any action against him. [558 C-E] A . B 554 SUPREME COURT REPORTS [1978] 3 S.C.R. Dinesh Char;dra Sangma v. State of Assam ""d ()rr [1978]1 S.C.R. 607, distinguished. · ., L.ewi' & Allenby (1909) Ltd. v. Pegge; [1914] l Ch. D. 782; held inapphcabJe. State of Punjab v. Khemi Ram; [1970] 2 S.C.R. 657; Suue of Punjab v. Amar Singh Harika; A.I.R. 1966 S.C. 1313; referred to . In the instant case it was incumbent on the Appointing Authority to withhold permission to retire on one of the conditions mentioned in the proviso. Admittedly the order of suspension was not communicated before the date of retirement. Therefore, disciplinary action cannot be taken after the date of his retirement. [558 F-G] CIVIL APPEI.LATE JURISDICTION : Civil Appeal No. 923/77. (Appeai by Special Leave from the Judgment and Order dated 13-8-1976 of the Gujarat High Court in SCA No. 1216/76). V. M. Tarkunde, P. H. Parekh, Manju Sharma and C. B. Singh for the Appellant. D. V. Patel and S. P. Nayar for Respondent Nos. 1 & 2. D The Judgment of the Court was delivered by .E F H KAILASAM, J. This appeal is preferred by special leave against the judgment of the High Court of Gujarat dated l3ih August, 1976 dismissing a writ petition filed by the appellant against the order of dismissal passed by the Government on 21st January, 1976. The appellant B. J. Shelat was born on 4th December, 1918 . He joined as a Magistrate on 5th January, 1950 in the pre-reorganized State of Bombay. On the bifurcation of the State of Bombay on 1st May, 1960 he was allotted to the State of Gujarat a; a Chi! Judge and Judicial Magistrate, First Class. On 4th November, 1961 the appellant was appointed by the Governor of Gujarat as a Magistrate for the city of Ahmedabad. On 9th November, 1970 the appellant gave a notice of retirement to the Government of Gujarat through the Registrar of the High Court. He intimated that as he had completed 50 years on 4th December, 1968 he intended to retire from 10th May 1971 if Rule 161 of the Bombay Civil Servcies Rules permitted him to do so. The Registrar of the High Court replied to this notice on I Ith January, 1972 informing the appellant that he may send a fresh application on the lines of his application dated 9th November, 1970. The appellant had delivered several judgments under the Prevention of Food Adulteration Act during the period 24th January, 1972 to i 7th August, 1972. These judgments were taken on appeal to the High Court and in the High Court during the per;od 19th June, 1973 to 10th August, 1973 the accused in the variolls cases relating to food adulteration filed affidavits alleging that they had paid some moneys to 'the appellant. When these appeals were pending berore the High Court on 17th July, 1973 the appellant gave a second notice under Rule 161 intimating his intel}tion to retire on reaching the age • ) SHELAT v. GUJARAT STATE (Kailasam, !.) 555 .of 55 years i.e. on 3rd December, 1973. But before 3_rd D_eccmb~r, 1973, the date on which the appellant was due to. retrre, tne Chief City Magistrate, Ahmedabad, informed the peUtmner on 23rd November 1973 under the directions of the Chief Justice and Judges of the HigJ1 Court of Gujarat calling upon him to submit his explanation as regards allegation made in the affidavits. The appellant submitted his explanation on 26th November, 1973.. On 11th J:?ecember, 1973 the High Court issued an order of suspens10n as the High Co.urt was of the view that it was desirable to suspend the appellant pendmg .i]nalisation of departmental proceedings against him which were under contemplation. The appellant filed a writ petition challenging the jurisdiction. of the Government to take disciplinary action against him after retirement. This petition was dismissed and a Letters Patent Appeal filed by the appellant was also dismissed on 24th December, 1973. The .appellallt filed a special leave petition in this Court against the order Df dismissal of his writ petition by the High Court and this Court on 25th April, 1975 allowed the appellant to withdraw hi~ petition reserving his right to agitate the questio_n as to whether disciplinary action can ':Jc taken against him after retirement when final orders were vassed in the disciplinary inquiry against him. In the meantime a chargesheet was issued to the appellant by the High Court on l'Sth January, 1974 and the Inquiry Officer submitted his report on 25th July, 1974 holding that the charges were not proved. But the High 'Court did not agree with the report of the lnquiry Offlcer and directed the appellant to show cause why a different view from that of the lnquily Ofiicer be not taken. On receipt of the appellant's reply the High Court recommended the punishment of dismissal to the Government and the impugned order was passed by the Government on 21st January, 197 6. The appellant preferred writ petition to the High Court and the High Court by its judgment dismissed it holding that there is evidence on which a reasonable inference of guilt could be drawn and therefore it could not interfere with the order of dismissal. Hence, the present appeal. Mr. V. !"l. Tarkunde, the learned counsel for the appellant, raised ~wo content10ns before: us, He submitted. that after the passing of the unpugned order of dismissal by the Governinent on 21st January, 1976 it has become necessary to question the jurisdiction of the authority to take disciplinary action against the appellant after his retirement,_ a !Juestion which was speci~cally reserved for the appellant by this Court. Secondly, he submitted that on the merits there is no evidence on which a court can come to the conclusio11 that the ·<:harges that were framed against tlie appellant had been rstablished. We will proceed to consider the question of the jurisdiction of the au!hority to take disciplinary action against the appellant after his ·retirement. . It m_ay be recalled that the appellant gave a notice inti_!llatmg !us mte.nhon to retire on 17th July, 1973 statin,g that he mtended to retire on reachmg the age of 55 years on 3rd December }9_73. He attained the age of 55 years on 3rd December, 1973 and :it IS common ground that the notice of suspension was issued by the A B c D E F G H 556 SUPREME COURT REPORTS [1978] 3 s.c.R. A High Court only on 11th December, 1973. But befor<> 3rd December, 1973 it is admitted that a show-cause notice was issued on 23rd November, 1973 by the Chief City Magistrate on\ the directions of tl1e High Court calling upon the petitioner to submit his explanation and the appellant submitted his 'explanation on 26th November, 1971. Rule 161 of the Bombay Civil Services Rules provides for the B retiremer.t of Government servants before attaining the age c:t snperannuation. Rule 161 (!) (aa) providesc D E }' G "Notwithstanding anything contained in clause (a) (l) An appointing authority shall, if he is of the opinion that it is in the public interest so to do, have the absolute right to retire any Government ser>ant to which clause (a) applies by giving him notice of not less than three months in writing or three months pay and allowances in lieu o[ such notice : x x x Sub-rule (2) (ii) is as follows :- "any Government servant to whom clause (a) applies may, by giving notice of not less than three months in writing to the Appointing Authority, retire from service x x x x x and in any other case, after he has attained the age of 55 years." There is no dispute that the Rnle applicable is Rule 161(2) (ii) and the appellant is entitled to retire by giving a notice of not les's ban 3 months after he has attained the age of 55 years. Under Rnle 161 (1) (aa) (1) the appointing authority has an absolute right to retire any Governm(•nt servant to whom clause (a) applies in public interest by giving him notice of not less than three months in. writing or three months pay and allowances in lieu of such notice. But the Government servant has no such absolute right. A right is con~erred on the Government 'ervant under Rule 161 (2) (ii) to retire by giving not less than three months notice on his attaining the prescribed. age. Such a right is subject to the proviso which is incorporated to the sub-section which reads as follows :- "Provided that it shall be open to the appointing authority to withhold permission to retire to a Government servant who is under suspension, or against whom departmental proceedings are pending or contemplated, and who seeks to retire under this sub-clause." But for the proviso a Gov_ernment servant wonld be at liberty tO" retire by givmg not less than three months notice in writing to the appointing authority on attaining the prescribed 1ge. This position has been made clear by this Court in Dinesh Chandra Sangma v. H State of Assam and Others(1) where the Court was considering the effect of the (Assam) Fundamental Rule 56(c) which confers right (1) [1978] 1 C.R. 607. • ~· SllELAT v. GUJARAT STATE (Kailasam, J.) 5 57 -0n the Government servant to voluntary retire. Rule 56(c) of the A {Assam) Fundamental Rules runs as follows :-- "(c) Any Government servant may, by giving notice of not less than three months in writing to the appropriate authority, retire from service after he has attained the age oE ilfty years or has completed 25 years of service, whichever is earlier." ·On a construction of the Rule this Court held that the ~ondition of service which i' envisaged in Rule 56(c) giving an option in absolute terms to a Government servant to voluntary retire with three months' previous notice, after he reaches 50 years of age or has completed 25 years of service, cannot be equated with a contract of employment as envisaged in Explanation 2 to Rq]e 119 of the Defence of India Rules and that Rule 56 is a statutory condition which oper.1ted in law without reference to a contract of employment and when once the conditions of Fundamental Rule 56(c) are fulfilled the Government servant must be held to have lawfully retired. But for the proviso to Rule 161(2) (ii) the decision of this Court in the case cited above would be applicable and the right would have been absolute. But the proviso has restricted the right conferred on the Government servant. Under the proviso it is open to the appointing authority to withhold permission to retire to a Government servant when ( 1) he is nnder snspension, or (2) against whom departmental proc.,edings are pending or contemplated. Tuns the permission to retire can be withheld by the appointing authority either when the Government servant is under suspension or against whom departmental proce·,ding;; are pending or contemplated. It was submitted on behalf of the appellant that admittedly he was not under suspension on the date when nc attained the age of 55 years and that no departmental proceedings were pending or contemplated against him as requir~d under the proviso. No departmental proceeding was pending but on the facts on~ cannot say that a proceeding was not under contemplation. Mr. T:irknnde, the learned counsel for the appellant, further submitted that in any event the appointing authority had not .:hosen to withhold permission to retire before the date of superannuation. It wa,; subnntted on behalf of the respondent, the State of Gujarat that a reading of Rule 161(2) (ii) woul.d show that a Government s~rvant c!lnnot !etire_ wit~out t~ specific .P<:rmission of the appointing authority ana as m this case no pernnss1on was granted it should he held that the appointing antbority withheld permission to the Government s~rvant to retire according to the proviso. In support of this contention Mr_. _Pate_!, the l<:amed counsel for the State of Gujarat, relied on the decJSJon ~n .Lewis & Allenby. (1909), !-imi:ed v. Pegge.(I) In that case a !Jm;ted company demised a residential fiat for a term of y~ars and the lessee covenanted not to assign or underlet the premises ~v1thout the consent of the company, such consent not to be withheld m the case cf a respectable or responsible person. On 3rd April, 1913 the less~e applied to the Secretary of the company for leave to sub-let to Higham a respectable and responsible person and asked (l) [1914] 1 Ch. Division p.782. B c D E F G H 558 SUPREME COURT REPORTS ll978] 3 S.C.R. A to know by April 14 as Higham wanted possession on that elate. The· Secretary torgot to communicate with his directors. On 14th April the lessee not having received a reply sub-let to Higham . and gave him possession. In an action by the company to recover possession for breach of the covenant the Court held that as consent is not to be withheld in the case of a respectable and responsible pers•Jn, if the lessee applies for such consent and within a reasonable time that conB sent is not granted, then within the meaning of the covenant it iswithheld and the lessee will not lose his property if he assigns to the person whose name he has given to the landlord. On the circumstances of the case the_ Court was of the view that the period between 3rd April and 14th April was a reasonable time and inasmuch as no intimation was made to him either way in the interval there has been no breach of the covenant and the sub-lease to Higham was good. C We fail to understand how this decision advances the contenEcn o! Mr. Patel. As no communication was received the Court held that the granting of the permission was a mere formality and that ii had to be taken that the con~ent was granted. In the case before us it is incumbent on the appointing authority to withhold permission to retire on one of the conditions mentioned in the proviso. We are of the n VieW that the pIOViSO COUtemplates a positive acti