# DELHI TRANSPORT UNDERTAKING v. BALBIR SARAN GOEL

- **Citation:** [1970] 3 S.C.R. 757
- **Court:** Supreme Court of India
- **Decided:** 1970-02-23
- **Case number:** Civil Appeal No. 2266 of 1968
- **Bench:** J. C. Shah, K. S. Hegde, A. N. Grover
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/delhi-transport-undertaking-v-balbir-saran-goel-4962
- **Pages:** 8

## Headnote

7 5 'I
Delhi Road Transport Authority Act, 1950-Conditions of Appoint111ent and Service Regulations,
1952, Reg. 9, 15 & 17-En1ployee un~
successfully approacViing Court, without exhausting depar11nental
renze~
dies-Simpliciter order
terminating
seri•ices
as no longer
requiredJVhether by way of Punishn1ent.
Regulation 9 df the Delhi Road Transport Authority Act (Conditions
of . ..\ppointment and Service Regulations), 1952 provides for ,termination
oi services in two modes. The first is by its clause (a) by ¥:hich services
may be terminated without any notice or pay in lieu of notice. This can
be done among other reasons for misconduct. The second mode is by
clause (b) by which the services may be terminated owing to reduction of
establishment or in circumstances other than those mentioned in clause
(al which relate to termination without notice.
When termination is
made under clause (b) one month's notice or pay in lieu thereof is to be
gi,·en to the employee.
Regulation 15 says that a breach of the standing
order will amount to misconduct, and one of the penalties_ imposed. for
nlisconduct is dismissal.
It also prohibits an order of dismissal, reflloval
or other punishment except censure unless
the procedure laid down ·in
clouse (c) of Regulation 15 is followed.
The standing order 17 enjoins
that no employee should have recourse to a court of law without first resorting to the normal official channels of redress.
1-hc respondent. an cn1ployec of the appellant-J]ndertaking established under the Delhi Transport Authority Act, was demoted.
He challenged the demotion by filing a petition under Art. 226 of the Constitution.
Thereafter the appellant-undertaking
passed an order terminating
the
respondent's services, stating only that his services were no longer required
ttn<l that one inonth's salary in lieu o'f notice would be paid. The respon·
<li.:-nt filed a suit claiming that the order \Vas illegal. On the questions,
( i l whether the respondent's services could be terminated under Regulation 9(b) without complying v1ith the procednre pr:escribed l;>y Regulation
15. and (ii) whether although the or<ler was made in perfectly harmless
and innocuous terms and purporting to be within Regulation 9(b) it was
a mere camouflage for inflicting punishment for breach of standing order
J 7. as the respondent had approached the High Court without exhausting
the Departmental remedies. this Court.
HELD : (i) Even if it be assun1e<l that the. law is t~e same as would
be applicablf to, a case governed by· Art. 311. 1t w3:s d1fficu_It to say that
the services of the respondent ~·ere not merely ~e~rm1nated . 1n accordance
~·ith Regulation 9(b) which governed the cond_ltLons _of his employment.
It n1av be that the motive for termination of ht~ service~ was the bre~ch
o'f St:inding Order 17 i.e. of filing a writ petition in th~ High Court aga1!1st
the demotion without exhausting departmental re~ed1e5 but the questI}~
of motive is immaterial. No charge-sheet was prefe,rred under hRegud a
ti on 15 nor was any enqUiry held in accord~bce t~:tif'
1i~e b:!~~~ntd;n~ h!~
under Regulation 9(b) was maded. It lmfiaj
~n the part of the authority
successfully pleaded
and prove
1na a ' es
758
SUPREME COURT REPORTS
[1970) 3 S.C.R.
terminating his services the impugned order could be legitimately challenged but no foundation was laid in that behalf in the pfaint nor was the
question of malafides investigated by the courts below. (763 E-G]
(ii) As regards the punishment having been inflicted for misconduct
the order being a mere camouflage no such question
could arise in
the
present case.
Regulation 9(b) clearly empowered the authorities to terminate the se·rvices after giving one month's notice or pay in lieu of notice.
The order was unequivocally made in terms of that Regulation. Even if
the employers of the respondent thought thaf he was a cantankerous person and it was not desirable to retain him in service it was open to them
to terminate his services in terms

## Text

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DELHI TRANSPORT UNDERTAKING
v.
BALBIR SARAN GOEL
February 23, 1970
[J. C. SHAH, K. S. HEGDE AND A. N. GROVER, JJ.]
7 5 'I
Delhi Road Transport Authority Act, 1950-Conditions of Appoint111ent and Service Regulations,
1952, Reg. 9, 15 & 17-En1ployee un~
successfully approacViing Court, without exhausting depar11nental
renze~
dies-Simpliciter order
terminating
seri•ices
as no longer
requiredJVhether by way of Punishn1ent.
Regulation 9 df the Delhi Road Transport Authority Act (Conditions
of . ..\ppointment and Service Regulations), 1952 provides for ,termination
oi services in two modes. The first is by its clause (a) by ¥:hich services
may be terminated without any notice or pay in lieu of notice. This can
be done among other reasons for misconduct. The second mode is by
clause (b) by which the services may be terminated owing to reduction of
establishment or in circumstances other than those mentioned in clause
(al which relate to termination without notice.
When termination is
made under clause (b) one month's notice or pay in lieu thereof is to be
gi,·en to the employee.
Regulation 15 says that a breach of the standing
order will amount to misconduct, and one of the penalties_ imposed. for
nlisconduct is dismissal.
It also prohibits an order of dismissal, reflloval
or other punishment except censure unless
the procedure laid down ·in
clouse (c) of Regulation 15 is followed.
The standing order 17 enjoins
that no employee should have recourse to a court of law without first resorting to the normal official channels of redress.
1-hc respondent. an cn1ployec of the appellant-J]ndertaking established under the Delhi Transport Authority Act, was demoted.
He challenged the demotion by filing a petition under Art. 226 of the Constitution.
Thereafter the appellant-undertaking
passed an order terminating
the
respondent's services, stating only that his services were no longer required
ttn<l that one inonth's salary in lieu o'f notice would be paid. The respon·
<li.:-nt filed a suit claiming that the order \Vas illegal. On the questions,
( i l whether the respondent's services could be terminated under Regulation 9(b) without complying v1ith the procednre pr:escribed l;>y Regulation
15. and (ii) whether although the or<ler was made in perfectly harmless
and innocuous terms and purporting to be within Regulation 9(b) it was
a mere camouflage for inflicting punishment for breach of standing order
J 7. as the respondent had approached the High Court without exhausting
the Departmental remedies. this Court.
HELD : (i) Even if it be assun1e<l that the. law is t~e same as would
be applicablf to, a case governed by· Art. 311. 1t w3:s d1fficu_It to say that
the services of the respondent ~·ere not merely ~e~rm1nated . 1n accordance
~·ith Regulation 9(b) which governed the cond_ltLons _of his employment.
It n1av be that the motive for termination of ht~ service~ was the bre~ch
o'f St:inding Order 17 i.e. of filing a writ petition in th~ High Court aga1!1st
the demotion without exhausting departmental re~ed1e5 but the questI}~
of motive is immaterial. No charge-sheet was prefe,rred under hRegud a
ti on 15 nor was any enqUiry held in accord~bce t~:tif'
1i~e b:!~~~ntd;n~ h!~
under Regulation 9(b) was maded. It lmfiaj
~n the part of the authority
successfully pleaded
and prove
1na a ' es
758
SUPREME COURT REPORTS
[1970) 3 S.C.R.
terminating his services the impugned order could be legitimately challenged but no foundation was laid in that behalf in the pfaint nor was the
question of malafides investigated by the courts below. (763 E-G]
(ii) As regards the punishment having been inflicted for misconduct
the order being a mere camouflage no such question
could arise in
the
present case.
Regulation 9(b) clearly empowered the authorities to terminate the se·rvices after giving one month's notice or pay in lieu of notice.
The order was unequivocally made in terms of that Regulation. Even if
the employers of the respondent thought thaf he was a cantankerous person and it was not desirable to retain him in service it was open to them
to terminate his services in terms of Regulation 9(b) and it was not necessary to dismiss him by way of punishment for misconduct. If the emp]oyer chooses to terminate the services in accordance with clause ( b) of
Regulation 9 after giving one month's notice or pay in lieu thereof it
cannot amouht to termination of. service for misconduct within the ir..eaning of clause (a). It is only when some punishment is inflicted of the
nature specified in Regulation 15 for misconduct that the procedure laid
down therein for an inquiry etc., becomes applicable. (763 HJ
S. R. Tewari v. District Board Agra & Another, (1964] 3 S.C.R. 55,
State of Punjab v. Shri Sukhraj Bahadur, (1968] 3 S.C.R. 244, referred
to.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2266 of
1968.
Appeal by special leave from the judgment and decree dated
August 4, 1967 of the Delhi High Court in Letters Patent Appeal
No. 68-D of -1965.
Niren De, Attorney-General, D. D. Chaudhuri and G. K .
. Sharma, for the appellant.
H. R. Gokhale and S. K. Gambhir, for the respondent.
The Judgment of the Court was delivered by
Grover, J.
This is an appeal by special leave in which the
·sole question for determination is whether the services of the
respondent ·who was an employee of the appellant cpuld be terminated under Regulation 9(b) without complying with the
"procedure prescribed by Regulation 15 of the D.R.T.A. (Conditions of Appointment and Service Regulations), 1952, as amended which were framed under s. 53 sub-ss. (1) and (2)(c) of the
Delhi Road Transport Authority Act 1950.
The respondent was originally appointed as a booking agent
under the Gwalior Northern India Transport Company.
He was
promoted ro the rank of Travelling Ticket Examiner in 1947. In
1948 the Government of India, Ministry of Transporc, took over
the aforesaid company.
On March 7, 1950 the Delhi Road
·Transport Authority Act was passed.
The services of the respon-
' dent were transferred to the said Authority.
In March 1952 the
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D.T.U. v. BALBIR SARAN (Grover, I.)
759
respondent was demoted from the rank of Travelling Ticket Examiner to that of a Conductor.
He filed a writ petition in the
Circuit Bench of the Punjab High Court at Delhi in April 1953.
The writ petition was dismissed and thereafter his services were
terminated on November 11, 1953.
The order of termination
which was passed by the Manager of the Delhi Road Transport
Authority was in the following terms :
"Your services will not be required by this organisation with effect from November 12, 1953.
You will
be paid one month's salary in lieu of notice."
There were certain proceedings before the Conciliation Officer
and ii• answe1 to a query made by that officer the General Manager
wrote a letter on August 14, 1956 in which it was stated, inrer
alia, that the respondent h~d approached the High Court when
he had been demoted at the previous stage without exhausting the
normal official channel of redress and without putting in his representation before the Appellate Authority as provided in the Service Rules.
His services were therefore terminated under RegulatiQn 9 (b) after paying one month's salary in lieu of notice. It
mdy be mentioned that the Service Rule of which the breach was
alleged to have been committed by the respondent was Standing
Order No. 17 which enjoined that no employee should have recourse to a court of law without first resorting to the normal official channels of redress.
The suit out c.f which the present appeal has arisen was filed
by the respondent containing all the above facts in which it was
alleged that the order dated November 11, 1953 was one of dismissal and had been passed as a measure of punishment, the procedure prescribed by Regulation 15 not having been followed.
In
para 29 of the plaint the sole allegation relating to maid fides
was made in these terms :
" ...... It was mala fide on the part of General
Manager, D.R.T.A. to terminate the services of the
plaintiff without assigning any reason."
A declaration was sought that the order of dismissal was illegal,
mala fide
etc. and that the plaintiff continued to remain in the
employment of the appellant without any interruption of rights.
A claim for certain amount was also made on account of salary
etc.
The only two issues framed on the merits were :
"(1) Whether the order dated 11-11-5 3 termitnating
the services of the plaintiff is illegal and ultra
vires as alleged?-
760
SUPREME COURT REPORTS
(1970) 3 S.C.R
(2) Whether the plaintiff is entitled to the recovery
of any amount by way of consequential relief?
If so, at what rate and for what period?"
The trial court held that the order terminating the services of the
respondent was not covered by Regulation 9(b) but was an order
of dismissal from service under Regulation 15(2) clause (7) and
therefore the order of termination was nothing short of dismissal.
It was held that the dismissal of the respondent was illegal and
that he was entitled to the pay and allowances in the sum of
Rs. 4500.
An appeal was taken to the District Court which confirmed
the decree of the trial court. A learnd Single Judge of the High
Court who disposed of the second appeal preferred ily the present appellant affirmed the decree of the courts below but on
different grounds.
It was held by him that Regulation 9(b) did
not confer any power on the Authority to terminate the employment of its employees.
A division bench which heard the appeal
under the Letters Patent affirmed the decisions of the courts below
but on different grounds.
It was held that the real reason for
dispensing with the services of the respondent was one given by
the General Manager in his letter to the Conciliation Officer.
It
was the alleged breach of the Service Rules.
A breach of the
Standing Order amounted to misconduct as provided by Regulation 15(1).
One of the penalties prescribed by Regulation 15(2)
was dismissal.
That though the order of termination of services
of the respondent did not on its face, contain the reason for the
non-requirement of his services the real reason was the misconduct of the respondent in that he had committed a breach of the
Standing Order.
The procedure laid down in Regulation 15(2)(cl
of enquiry etc. not having been followed the impugned order was
void and illegal.
In fact that order had been made by way of
punishment.
Regulation 9, to the extent it is material, is as follows :
"9. Termination of Service.-(a) Except as otherwise
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specified in the appointment orders. the services of an
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employee of the Authority may be terminated without
any notice or pay in lieu of notice-
(i) during the period of probation and without assigning any reasons therefor.
(ii) for misconduct,
(iii) on the completion of specific period of appointment,
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D.T.U. V. BALBIR SARAN (Grover, J.)
(Iv) In the case of employees engaged on contract for a specific period, on the expiration of such
period in accordance with the terms of appointment.
(b) Where the termination is made due to reduction of establishment or in circumstances other than
those mentioned at (a) above, one month notice or
pay in lieu thereof will be given to all categories of
employees.
(c) .•...•.•..••.• "
761
Regulation 15 says that a breach of the Standing Order issued
from time to time by the Delhi Road Transport Authority will
amount to misconduct.
The penalties whicn can be imposed
for misconduct are enumerated out of which dismissal is one.
It. is provided that no order of dismissal, removal or other
punishment except censure shall be passed unless the procedure
laid down in clause ( c) is followed.
That clause outlines the
steps which must be taken in the matter of affording an opportunity to the delinquent employee and of an inquiry which is to·
be conducted in the niatter.
Now Regulation 9 clearly provides for termination of services in two modes; the first is where the services may be terminated without any notice or pay in Jieu of notice.
This can.
E · be done among other reasons for misconduct.
The second mode
is of terminating the services owing to reduction of establishment
or in circumstances other than those mentioned in clause (a) which
relate to termination without notice. When termination is made·
under clause (b) one month's notice or pay in lieu thereof is to be
given to the employee.
Thus it is clear that if the employer
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chooses to terminate the services in accordance with clause (b)
after giving one month's notice or pay in lieu thereof it . caunot
amount to terminatien of service for misconduct within. the meaning of clause (a).
It is only when some puii'ishmeni is inflicted
of the nature specified in Regulation 15 for misconduct that the
procedure laid down therein for an inquiry etc. becomes applicable.
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The contention which appears to have prevailed with the High
Court and which has been pressed before us is that although the
order was made in perfectly harmless and innocuous terms and
purported to be within Regulation 9(b) it was a mere camouflage
for inflicting puinshment for breach of Standing Order 17 inasmuch
as the respondent had approached the High Court under Art. 226
of the Constitution without exhausting the departmental remedies.
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The High Court relied on the observations in S. R. Tewari
v.
District Board Agra & Another(') that the form of the order under
(I) (1964] 3 S.C.R. 5.5 .
. LIOSup.Cl(NP)/70--4
762
SUPREME COURT REPORTS
[1970] 3 S.C.R.
which the employment of a servant was determined was not conclusive of the true nature of the order.
The form might be merely
to camouflage an order of dismissal for misconduct and it was
always open to the court before which the order was challenged
to go behind the form and ascertain the true character of the order.
In that case it was held that the employment was terminated by
giving a notice in accordance with the rules and it was not a case
of dismissal.
The learned Attorney General for the appellant has sought to
distinguish cases which fall under Art. 311 and those which are
governed by statutory provisions or rules containing provisions
analogous to Art. 311.
According to his submission the concept
of punishment is not relevant when the employer chooses to terminate the employment of an employee in accordance with the conditions of service.
All that has to be seen is whether the order
made by him is in conformity with the statutory powers. He has
further submitted that where the master chooses to follow the
mode of terminating the services prescribed by Regulation 9(b)
no stigma attaches to such termination and no question of the
employee having been punished can arise nor can it be examined
in such a case whether the order made was a mere camouflage or
cloak for dismissing an employee by way of punishment for misconduct.
It has further been emphasised that what has to be
seen is the situation obtaining on the date the order was made
and no notice should or ought to be taken of any subsequent
facts emreging out of correspondence or pleadings in a court of
law in reply to the allegations in the plaint of ma/a fide ·and the
like.
Tt does not appear necessary to refer to numerous decisions
which have been given by the Court in cases arising under Art.
311 of the Constitution on the points debated before us by counsel
for both s;des.
In State of Punjab v. Shri Subhraj Bahadur(')
most of these cases have been discussed.
By a conspectus of
those cases, it was stated,
the following propositions clearly
emerge:
"l. The services of a temporary servant or a probationer can be terminated under the rules of his employment and such termination without anything more would
not attract the operation of Art. 311 of the Constitution.
2. The circumstances preceding or attendant on the
order of termination of service have to be examined in
each case. the motive behind ii being immaterial.
(I) 1968) 3, S.C.R. 234 at p. 24<1.
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D.T.U. v. BALBIR SARAN (Grover, J.)
. 763
3. If the order visits the public servant with any evil
consequences or casts an aspersion against his character
or integrity, it must be considered to be one by way of
punishment, no matter whether he was a mere probationer or a temporary servant.
4. An order of termination of service in unexceptionable form preceded by an inquiry launched bi the superior authorities only to ascertain whether the public servant should be retained in service, does not attract the
operation of Art. 311 of the Constitution.
.
.
5. If there be a full-scale departmental enquiry envisaged by Art. 311 i.e. an Enquiry Officer is appointed, a
charge sheet submitted, explanation called for and considered, any order of termination of service made thereafter will attract the operation of the said article."
In that case the departmental enquiry did not proceed beyond the
stage of submission of charge-sheet followed by the respondent's
explanation thereto. 'The enquiry was not proceeded with, there
were no sittings of any Inquiry Officer, no evidence was recorded
and no conclusions arrived at on the enquiry.
It was, therefore,
held that the services had been terminated simpliciter under the
rules of employment and Art. 311 was not attracted.
In the
present case even if it is assumed that the law is the same as would
be applicable to a case governed by Art. 311 it is difficult to say
on the principles laid down in the above case that the services of
the respondent were not merely terminated in accordance with
Regulation 9(b) which governed the conditions of his employment.
It may .be that the motive for termination of his services was the
breach of Standing Order 17 i.e., of filing a writ petition in the
High Court against the demotion without exhausting departmental
remedies but the question of motive is immaterial.
No chargesheet was preferred under Regulation 15 nor was any enquiry held
in accordance therewith before the order under Regulation 9(b)
was made.
It may be that if the respondent had successfully pleaded and proved ma/a fides oo the part of the authority terminating
his services the impugned order could be legitimately challanged
but no foundation was laid in that g_ehalf in the plaint nor was the
question of ma/a fides investigated by the courts below.
As regards the punishment having been inflicted for misconduct
the order being a mere camouflage we are unable to endorse the
view that any such question could arise in the present case.
Regulation 9(b) clearly empowered the authorities to terminate the services after giving one month's notice or pay in lieu of notice.
'The
order was unequivocally made in terms of that Regulation.
Even
764
SUPREME COURT REPORTS
[1970] 3 S.C.R.
if the employers of the respondent thought that he was a cantankerous person and it was not desirable to retain him in service it was
operi to them to terminate his services in terms of Regulation
9(b) and it was no! necessary to dismiss him by way of punishment
for misconduct.
The appeal is consequently allowed and the decree granted by
the courts below is set aside.
In view of this court's order dated
Nvvember 1, 1968, the appellant will pay the costs of the respcndent.
Y.P.
Appeal allowed.
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