# Dtka etc v. General Manager, N.E.F. Railways, MtJligaon, Pandu, ttc. f1964l 5

- **Citation:** [1974] 1 S.C.R. 515
- **Court:** Supreme Court of India
- **Decided:** 1973-08-27
- **Case number:** Civil Appeal No. 275 of 1971
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/dtka-etc-v-general-manager-n-e-f-railways-mtjligaon-pandu-ttc-f1964l-5-5999
- **Pages:** 13

## Headnote

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M. RAMANA IBA PILLAI
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THE STAIE OF KERALA & ANR.
(With colllleCted appeals)
August 27, 1973
sis
[A. N. RAY, C.J., K. K. MATHEW, M. H. BEG, S. N. Dw1VEDI ANn
y. v. CllANJ>Iw::HuD, 11.]
Con.rtitMtion of India, 1950, Arts. 510 and 311-Abolltlon of post-Effect of.
On the questions, (i) whether the Government could abolish a post in the
service, and (ii) what is the effect of such abolition on the righto of the holder of
the post at the time of abolition.
HEID: (I) Every sovereign government has a right to abolish a post in
government service in the interest and necessity of internal administration.
The
creation and abolition of a post is dictated by policy, exigencies and administrative necessity in the interest of general public, and the power is not related to
the doctrine of pleasure. (5200-EJ
(2) The frotection afforded by Art. 3 JI of the Constitution is limitell to the
imposition o the three major penalties. namely, dismissal, removal and reduc·
tion -in rank.
These words are technical words.
Every termination of ecrvice
cannot amount to dismissal _ or removal. It is oQly in cases where there is a
otigma or a loss of benefit that the removal or diSmissal would come under the
Article. The expression "rank" in the Article has reference to a person's class1~
fication and not to hi!t MJ'ticular place in the same cadre in the hierarchv of the
acrvice to which be belongs. A reduction in rank would be a punishment if it
coined penal consequence1. with it. f521G-522B]
Parshotam Lal Dhingra v. Union of lndid, [1958) S.C.R. 828; SatiJh Chandra
Anand v. The Union of India [1953] S.C.R. 655 and Shyam Lai v. State of U.P.
and the Union of India, (1955) I S.C.R. 26, referred to.
(3) Whei'e a person has a substantive appointment to a permanent post hehaa a right to hold the post until, under the tuJ.es, he attains the age of superan~
nuation or is compulsorily retired after having put in the prescribed number of
years' service or the post is abolished; and his service cannot be terminated exce,Pt
by way of punishment for misconduct, negligence, inefficiency or any other dtsqualification found against him on enquiry after due notice to him. An appointment to a temporary post for a certain specified period gives the servant a ri.e;ht
to hold the post for the entire period of his tenure, and his tenure cannot be put
~ end to during that period unless he is. by way of punishment, dismissed or
removed from the aervice. [522E-01
Parshotam Lal DhinRra v. Union of India, [1958] S.C.R. 828 and Moti Ram
Dtka etc. v. General Manager, N.E.F. Railways, MtJligaon, Pandu, ttc. f1964l 5
S.C.R. 683, referred to.
·
·
(4) But.a iiost may be abolished in good faith. The abolition ot the post
may have the consequence of termination of service of a government servant.
Such termination however is not dismissal or removal. within the meaning of Art.
311 of the Constitution. The opportunity of showing cause against the proposed
penalty of dismissal or removal does not therefore arise in the case of the abolition .of a posL The abolition is not a personal penalty against the government
oervanL It is an executive 1><>licy decision. Whether after abolition of the post
the l!Qvemment servant, who was holding the post would or could be offered any
employment under the State would therefore ho a matter of policy decision of
the Government. beeause. the abolition of a Post does not confer on the pel!Or>
holding the abolished post any light to hold the post. The order abolishing the
.,...i mav. b"'!""ver lose ii. effective eharacter if it is established to have been
made arbttrarily, mala fide or as a mask of some penal action within the meaning
of Article 311(2). [S22H; 5260-F]
516
SUPREME COURT REPORTS
[ 1974] 1 S.C.R.
(S) The observations in Motl Ram Deka case ([D64] S S.C.R. 683), that a
person who substantively holds a permanent post has a right to continue. in service, subject to the rules of superannuation and COIDtJUlsory retirement and that
'if

## Text

_Characters 0–39,775 of 43,038. This is a partial read: ask again with offset=39775 for what follows._

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M. RAMANA IBA PILLAI
'"
THE STAIE OF KERALA & ANR.
(With colllleCted appeals)
August 27, 1973
sis
[A. N. RAY, C.J., K. K. MATHEW, M. H. BEG, S. N. Dw1VEDI ANn
y. v. CllANJ>Iw::HuD, 11.]
Con.rtitMtion of India, 1950, Arts. 510 and 311-Abolltlon of post-Effect of.
On the questions, (i) whether the Government could abolish a post in the
service, and (ii) what is the effect of such abolition on the righto of the holder of
the post at the time of abolition.
HEID: (I) Every sovereign government has a right to abolish a post in
government service in the interest and necessity of internal administration.
The
creation and abolition of a post is dictated by policy, exigencies and administrative necessity in the interest of general public, and the power is not related to
the doctrine of pleasure. (5200-EJ
(2) The frotection afforded by Art. 3 JI of the Constitution is limitell to the
imposition o the three major penalties. namely, dismissal, removal and reduc·
tion -in rank.
These words are technical words.
Every termination of ecrvice
cannot amount to dismissal _ or removal. It is oQly in cases where there is a
otigma or a loss of benefit that the removal or diSmissal would come under the
Article. The expression "rank" in the Article has reference to a person's class1~
fication and not to hi!t MJ'ticular place in the same cadre in the hierarchv of the
acrvice to which be belongs. A reduction in rank would be a punishment if it
coined penal consequence1. with it. f521G-522B]
Parshotam Lal Dhingra v. Union of lndid, [1958) S.C.R. 828; SatiJh Chandra
Anand v. The Union of India [1953] S.C.R. 655 and Shyam Lai v. State of U.P.
and the Union of India, (1955) I S.C.R. 26, referred to.
(3) Whei'e a person has a substantive appointment to a permanent post hehaa a right to hold the post until, under the tuJ.es, he attains the age of superan~
nuation or is compulsorily retired after having put in the prescribed number of
years' service or the post is abolished; and his service cannot be terminated exce,Pt
by way of punishment for misconduct, negligence, inefficiency or any other dtsqualification found against him on enquiry after due notice to him. An appointment to a temporary post for a certain specified period gives the servant a ri.e;ht
to hold the post for the entire period of his tenure, and his tenure cannot be put
~ end to during that period unless he is. by way of punishment, dismissed or
removed from the aervice. [522E-01
Parshotam Lal DhinRra v. Union of India, [1958] S.C.R. 828 and Moti Ram
Dtka etc. v. General Manager, N.E.F. Railways, MtJligaon, Pandu, ttc. f1964l 5
S.C.R. 683, referred to.
·
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(4) But.a iiost may be abolished in good faith. The abolition ot the post
may have the consequence of termination of service of a government servant.
Such termination however is not dismissal or removal. within the meaning of Art.
311 of the Constitution. The opportunity of showing cause against the proposed
penalty of dismissal or removal does not therefore arise in the case of the abolition .of a posL The abolition is not a personal penalty against the government
oervanL It is an executive 1><>licy decision. Whether after abolition of the post
the l!Qvemment servant, who was holding the post would or could be offered any
employment under the State would therefore ho a matter of policy decision of
the Government. beeause. the abolition of a Post does not confer on the pel!Or>
holding the abolished post any light to hold the post. The order abolishing the
.,...i mav. b"'!""ver lose ii. effective eharacter if it is established to have been
made arbttrarily, mala fide or as a mask of some penal action within the meaning
of Article 311(2). [S22H; 5260-F]
516
SUPREME COURT REPORTS
[ 1974] 1 S.C.R.
(S) The observations in Motl Ram Deka case ([D64] S S.C.R. 683), that a
person who substantively holds a permanent post has a right to continue. in service, subject to the rules of superannuation and COIDtJUlsory retirement and that
'if for any other ·reasbn tha:t tight is iPvaded aiid he is ·asked to leave his service,
the ,efminarior. of his setvke. must inevitably mean t:1e defeat of his right
to continue in service and as such, it "is in t~e nature of a penalty and amounts
to removal' are not authority fOi the proposition that aboliti .. 11 of a post in good
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faitb amounts to removal, The ~a.rli.er observatlon in the judgment that a pcrmaB
nent servant would normally, acquire a- right to hold the post until under the rules
he attained the age of superaniluation or was crimpUlsorily retired or the post
lvas abolished shows that the exception of termination as a result of the abolition
ot a past was not being considered when the observa.ion was mad.;:.
[51.3A·D1
Chan1pakfal Chimanlal Shah v. The Union of India [1964] S S.C.R .. 190,
followed.
(6) The MotL,Ra1n Deko case has not abolished the doctrine of pleasure as
embodied in Article 3-10. 'fhat article has been..made subject 10 Art. 311 where
terminatiOn is by way of punishment, and in cases Wh:!re a fixed term contract
is made. Article 310(2) authorises a provision in such contract for the payment
of compensation to the government servant if before expiry of that period the
post is abolished or he is required to vacate the post for reasons not connected
v,rith any misconduct.
The article furnishes intrinsic evidence· that the right to
abolish the post is a categ')ry of the power exercisable by- the s•ate. The power
to abolish the post is however inherent in every sovereign Government and is
necessary for the proper functioning and internal adffiinistration of the Sta·e and
ls una.ffe.cte<l by these limitations on tbe doctrine of pleasure· embodied in Art. 310.
[525G·526D]
(7) ~
es.toPp~l could arise against the Stare in rega'"d to aholition of a post
'fhe courts exclude the operation of the doctrine of estoppel, \Vhcn it is found
that the authority against whom estoppel is pleaded has owed a duty to the oublic.
[526HJ
(8) When the exigencies of administration required alterations in the establishment and creation of a ne\V department. it is a govern!J1enta1 function and
a policy dt:cision, and no question· of mala {ides arises. [527C-D1
(9) The right to hold a post comes to an end on the abolition of the post
\Vhich a government servant holds, and therefore, he cannot .complain of a Vlolation of Arts. 19(1)(f) and 31 of the Consti.ution when the post is
~h·,..li.:;hec1.
[527D-El
( 10) Article 14 also is not attracted when the government servant cannot
complain of any discrimination on the ground that other government servants,
similarly situn:ed: had been allowed tt1 remain in service.
[527E. P-Gl
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 275 of 1971.
Appeal by certificate from the judgment and order dated 6th
August, 1970 of the Kerala High Court in C.P. No. 931 of 1970.
Civil Appeal No. 2231 of 1970
Appeal by certificate from the judgment and order da(td 29-1-70
of the High Court of Punjab and Haryaila at Chandigarh ill Ovil
Writ No. 3086 of 1968.
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Civil Appeal No. Z.4;8 of 1971
Appeal by certificate· from the Judgment and Order dated 3°"9~70
of the High eoort of Punjab and Haryana at Chandigarh ih Letters
I'atJ:nt Appeal No. 26() of 1969.
M~ K. Ramamurlhy, P.K. Pillai and· !. Ramamurthi, for the appellant (~n C.A. No. 275/71) ·
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M. R. PILLAI V. KERALA (Ray, C.J.)
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A. R. Somanatha Iyer and A.G. Pudissery,. for the respondent On
C.A. No .. 275/71).
Gobind Dass, M. N. Shroff and B. D. Sharma, for Attorney General
of India.
R.K. Garg and S.C. Agarwala, for the intervener.
R. K. Garg and S. C. Agarwala, for the. appellants
(In C. A.
2231/70 and 248!71).
Harbdns Singh and R. N. Sacluhey, for the respondent (In C. As.
No. 2231/70 and 248/71).
The Judgment of the Court was delivered by
RAY. C. J. Civil Appeal No. 275 of 1971 is by
certificate from
th<- judgment dated 6 August, 1970 of the High Court of Kerala.
The appellant is M. Ramanatha Pillai.
Civil Appeal No. 2231 of 1970 is by certificate from the judgment
dated N September. 1970 of the High Court of Punjab and Haryau;i.
The appellants are S. Ajit Singh and Janrna Dass Akhtar.
Civil Appeal No. 248 of 1971 is by certificate from the judgment
ciated 30 September, 1970 of the High Court of Punjab and Haryatia.
The appellants are seven ju number. They are
Kulbhushan Lal,
Knshna Lal, Jagdev Singh, Shanti Sarup, Dilawar Singh, Ram Asra
and Inder Lal.
·The facts in Civil Appeal No. 275 of 1970 are these. A Vigilance
Commission was constituted for the State of Kerala by an
oc·dcr
dated 29 May, 1965. The Government of Kerala on 26 October, 1965
sanctioned the creation of a temporary post .of Vigilance Commissioner
for a period of three Years from 3 June, 1965. P. D. Nandana Menen
assumed charge as Vigilance Commissioner in that temporary post.
By an order dated 16 April, 1966 the Government of Kernla defined the constitution, jurisdiction, powers and functions of the Com'
mission. The Order stated that the Commission would be beaned by
a full time officer designated as Vigilance Commissioner. The Vigilance
Commissioner under the order was to be appointed by the Governor
of the State and was not to be removed or suspended from office except
in the manner provided for the remoyal or suspension of the Cho;rman'
of the Kerala Public Service Commission. On 24 Januarv, 1968 the
continuance of the temporary post was sanctioned for a period nf one
year with effect from 3 june, 1968. Meanwhile P. D. Nandana Menon
·retired from tht post.
Ry an order dated 24 September, 1968 the appellant Ramanatha
'.Pillai was aooointed
as Vigilance Commissioner on a consoiidatcd
pav of Rs. 2500 per month for a tenn of three years from the date of
his assumin~ charge vice P. D. Nandana Menon retired. By an ordet
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Vigilance Commissioner would hold office for a period of fiv~ years
or ti'I '1e attained the a!le of 60 years whichever was earlier. By an
order dated 15 November, 1968 sanction was accorded to the continuanc:t of the temporary post of the Vigilance
Commissioner till
28 February, 1970.
518
SUPREME COURT REPORTS
l 1974] 1 s.c.R.
There was an agreement dated 20 December, 1968 between the
appellant Ramanatha Pillai and the Government of Kerala. The ai:rec·
ment provided that the term of appointment was to be for a period
of five years from 3 October, 1968 or till the appellant attained the
age of 60 years whichever is earlier. The agreement further stated that
the appellant is not to be removed or suspended from office except in
the manner provided for removal or suspension of the Chainnan or
Members of the State Public Service Commission.
By an order dated 24 February 1970 the Government of Kerala
stated that the post of Vigilance Commissioner sanctioned was temporarY and the "'Preser.t sanction for the post of Vigilance Ccmmis·
sioncr
will
expire
on 28
February,
1970
and
that
for the staff of the Commission will expire on 28 February, 1971".
The order further stated that the Govefnment having considereJ all
aspects of the matter came to the conclusion that there was no need to
have a Vigilance Commissioner. The Government, therefore, ordered
that the post of Vigilance Commissioner would be
abolished with
effect from 28 February, 1970. The continuance of the staff nf the
Commission upto 15 March, 1970 was sanctioned to enable the office
of the Commission to wind up its work. It may be stated here that i.n
the Government Order dated 3 December, 1969 sanction for che con·
tinuance of the staff in temporary posts from 1 March, 1970 to 28
February, 1971 was accorded. The affidavit evidence of the 'Jovern·
ment of Kerala about the continuance of the temporary posts in the
staff of the Vigilance Commission till 28 February, 1971 is that the
budget for 1970-71 was prepared in advance of the presentation of
the proposal in the Legislature.
At the time when the proposals were
forwarded by the Administrative Departments concerned
with
the
ostablishment of the Vigilance Commissioner no decision had been
taken regarding the abolition of the post of the Vigilance Comr.:ii.ssioner. After taking the decision to abolish the Vigilance Commissil)n
the Government considered the feasibility of omitting the provisi<lns
in the budget, but it was found to be too late to make any changes.
The post of Vigilance Commissioner was sanctioned upto 28 February,
1970.
The appellant Ramanatha Pillai raised three principal contentions
in the High Court.
Frrst, that the abolition of the post of Vigilance
Commissioner amounted to removal of the appellant from
service
within the meaning of Article 311 of the Constitution.
Second, that
the abolition of the post was made ma/a fide.
Third, the· appeUant
entered into an agreement with the Government and by accepting the
offer changed his position and the State was precluded from altering
the terms of agreement on the principle of estoppel.
The High Court
did not accept any of the contentions,
The High Court held that the
termination of service resulting from the abolition of the post would
oot attract the provisions of Aricle 311 of the Constitution.
The
High Court however added that this would. be so when the abolition
of the post was not a oolourable exercise of power with a view to
removing the incumbent holding the post from service.
The
High
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M. R. PILLAI v. KERALA (Ray, CJ.)
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Court in the facts and circumstances came to the conclusion that it was.-
impossible to draw any infere~ that the. abolition of ~ po5t was
with a motive of doing away with the semces of the pettu-oner.
The
High Court held ~at no estoppel could ~~ or operate to fetter. ~e
powers and discretion of the Government if m the interest of admuus·
tration and in ·public interest certain alterations in the establishment
were made and new post• or departments were created.
'Iqe reason
given by the High Court was that this would be a governmental function and the court would not sit in judgment on such action and decide
whether the course was proper or not The High Court, t!ierefore.
held that there coulci not be any estoppel against the Government ilil
the discharge of duty owed to the public. The ratio of the High Court
judgment is that there cannot be an estoppel in respect of statutory
provisions of the governance of the State which are made for the benefit of some one other than the person against whom the estoppel is
asserted.
In Civil Appeal No. 2231 of 1970 the questions raised in the High
Court were whether the abolition of the Subordinate Services Selectioi~
Board and the consequential termination of the services of the Chair -
man and the Member of the Board attracted application of Article
311 of the Constitution. The High Court found that the State Gov·
crnment decided in public interest to abolish the Board.
There were
bickerings among the Members of the Board. The Administrative
Reforms Commission recommended the abolition of the Board.
The
appointment of the Members was of a temporary charcter. Consc·
quent upon the abolition of the Board there existed no post on which·
the appellants could claim appointment.
Civil Appeal No. 248 of 1971 concerns posts held by the appel·
!ants in the Industr al Training Institute in Haryana.
The appellants
were permanent employees.
Their posts were abolished with effect
from 26 March 1969. The Government terminated their services.
upon the abolition of the posts. The appellants raised the similar
question as to whether the abolition of posts would attract article 311
of the Constitution. The High Court relied on its decision in Civil
Appeal No. 2231 of 1970 and held that the abolition of posts did not
attract Article 311 of the Constitution.
The contentions on behalf of the appellant Ramanatha Pillai were
these. First, the order abolishing the post is vitiated by ma/a fid~s
of. respondent No. 2.
Second, the abolition of the post does not tcr·
mmate the agreement, dated 20 December, 1968. Third the abolition of the post has the effect of terminating the services of the appellant, and, therefore, it is invalid by reason of non-compliance with the
provisions of Article 311 of the Constitution.
Fourth, the order of
the Government was made without giving an opportunity to the appell~t and thereby violated the principles of natural justice. It was
said that the order of Government entailing the civil consequences of
loss of service could be made only after observll:js the principles of
natural justice. Fifth, the principle of estoppel applies to the case that
it 'was not lawful for the Government to terminate the services of the
~ppellant.
520
SUPREME COURT REPORTS
[ 1974] 1 s.c.R.
On behalf of the other appellants the contentions are these.
The
right to. permanent tenure is created by rules or .Acts.
The executive
·decision cannot put iln end to these rights. Service Rules create statutory rights fo receive salary and pension till' t.!ie age of superannuation.
These statutory rights coastitute property within the· meaning
of Article 19(t}(f), 31(1) and (2) of the Constitution. The aboiition of a post is a mere executive decision and it cannot terminate the
statutory tenure of service nor can it' affect fundamental rights without
the support of a valid law. The tenure cannot be taken away by rule
or an Act which is inconsistent with Article 311 (1) and (2) of the
Constitution, ooth before ·and after the amendment of that Article.
After amendment of Article 311 ( 1 ) a permanent Government servant
holds office during good behaviour and the doctrine of pleasure stands
negatived except to the extent saved expressly by Article 310.
A
premature termination on abolition of post violates Articles 311(2),
19(1) (f) and 31(1) and also Articles 14 and 16. If termination of
employment after notice is bad a termination without notice without
a valid rule is worse.
The first question which falls for determination is whether the
Government has a right to abolish a post in the service.
The power
to create or abolish a post is not related . to the doctrine of p1easure.
It is a matter of governmental policy.
Every sovereign Government
has this power in the interest and necessity of internal administration.
The creation or abolition of post is dictated by policy decision, exigencies of circumstances and administrative necessitY.
The creation.
the continuance and the abolition of post are all decided by the Government in the interest of adnlinistration and general public.
The next question is whether abolition of post is dismissal or removal within the meaning of Article 311.
This question has directly
not come up for decision in this Court. There are however observations on this aspect in three decisions of this Court.
These
are
Parsh,Jtam Lal Dhingra v. Union of India [19581 S.C.R. 828· Champaklal Chimanlal Shah v. The Union of India [1964] 5 S.C.R. 190
and Mnti Ram Deka etc. v. General Manager, N.E.F. Railways, Maligaon, Pandu, etc. [1964) 5 S.C.R. 683.
Article 311 as it stood prior to the Constitution Fifteenth Amencrment Act 1963 enacted that no person as mentioned in Article 311 (1)
shall be dismissed or removed or reduced in rank. until he has been
given a reasonable opportunity of showing cause against the acti0 n proposed to be taken in regard to him.
After the Constitution Fif'eenth
Amendment Act, 1963 Artic'e 311 states that no person mentioned in
Article 311 (1) shall be. dismissed or removed or reduced in rank
except after an enauiry in which he. has been informed of a11 the charges against him and giving a reasonable opportunity of being heard
in respect of those char~es. Further. where it is nroposed, after such
enquiry, to impose on him any such penalty of disnlissal, removal or
·reduction in rank he has tn b• riven an opportunity of making reprc-
'Sentation to the penalty proposed.
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Article 309 provides that subject to the provisions of the Constitution, Acts of the appropriate Legislature may regulate the recruitment a:nd conditions of service of persons appointed, to. public services and posts in conn:ection with the affairs of the Union or <if any
State. Therefore, Acts in respect of terms and conditions of service
of persons are contemplated.
Such Acts of Legislature must however
be subject to the provisions of the Constitution.
This attracts Artic!_e
31 O (I). The proviso to Article 309 makes it competent to the President or such person as he may direct in the case of services a .. d posts
in connection with the affairs of the Union and for the Governor of
a State or such person as he may direct in the case of services and
posts in connection with the affairs of the State, to make rules regulating the r=uiunent and the conditions of service of persons appointed,
to such services and posts under the Union and the
State.
These
Rules and the exercise of power conferred on the delegate must be
subject to Article 310.
The result is that Article 309 cannot impair or affect the pleasure of the President or the Governor therein
specified. Article 309 is, therefore, to be read subject to Article 310.
Article 310 deals with the tenure of office of persons serving the
Union or the State. Article 310 provides that such office is held
during the pleasure of the President if the post is under the Union or
during the pleasure of the Governor if the post is under the State. The
doctrine of pleasure is thus embodied in Article
310( 1). Article
310(2) deals with cases of persqps appointed under contra~!. This
Article provides that if the President or the Governor deems it ne::essary to secure the services of a person having special" qualification, he
may appoint him under a special contract. Such a contract may pr<>-
vide for the payment to him of compensation if before the expiration
of an agreed period that post is abolished or he is, for reasons not
connected with any misconduct on his part, required to vacate that
post. It is noticeable that Article 310 ( l) begins with a clause "except
as expressly provided by this Constitution''. Therefore, the other provisions in the Constitution which impinge on Article 310 have the effect
of making Article 310 to be subject to those Articles.
The exceptions
thus contemplated occur in Articles 124, 148, 218 and 324. Another
important exception IS Article 311.
Article 311 is however not subject to any other provision of the Constitution.
When Article 311 states that no person shall be dismissed, removed or reduced in rank until he has been given a reasonable opportunity of showing cause against the action proposed to be taken in
regard to him it affords a protection and security of Government
service.
A.rticle 311 applies to all Government servants holding permanent, temporary or ofticiating post. The protection afl'n•ded
by
Article 311 is however limited to the imposition of three maior penalties. These are dismissal, removal or reduction in rank. The words
"dismissed", "removed" and "reduced in rank" are technicol words.
Botn in the ca&e of removal or dismissal tliere is a stbima. It also involves los! ofbenefit. There may a),o be an element of personal blame"
worthiness of the Government servant Reduction in rank is also a
punishment. The expression "rank" in Article 311(2) has reference
S22
SUPREME COURT REPORTS
[ 1974. J 1 S.C.R.
to a person's classification and not to his particular place in the same
.cadre in the hieraroh!Y of the service to which he belongs.
Merely
sending back a servant to his substantive post has been held not to be
.a reduction in rank as a punishment since he had no legal right to continue in officiating post. The striking o-ut of a name from the pa!\el
has been held to affect future rights of promotion and to be a reduction in rank.
A reduction in rank is a punishment if it carries penal consequences
with it. In Dhingra case (supra) it has been said that whether a
servant is punished by way of reduction in rank is to be found by applying one of the two following tests : Whether the servant has a right
to the post or the rank or whether evil consequences such as forfeiture
of pay or allowances, Joss of seniority in his substantive rank, stoppage
or postponement of future chances of promotion follow as a result of
the order.
Any and every termination of service cannot amount to dismissal
or removal. A termination of service brought about by the exercise of
.contractual right is not by itself dismissal or removal.
(Sie Satis/1
Chandra Anand v. The Union of India (1953 S.C.R. 665). Again,
termination of service by compulsory retirement in terms of a specific
rule regulating the conditions of service is not tantamount to infliction
of a punishment and does not attract Article 311 (2). (See Sh yam Lal
v. 6tate of U.P. and the Union of India (1955 1 &.C.R.
26). Similarly the retirement of a permanent servant on his attaining the age of
superannuation does not amount to his removal within the meaning of
Article 311 (2).
Jn these cases the termination of service does not
carry with it the penal consequences of loss of pay or allowances.
The ruling in Dhingra case (supra) is
that the protection of
Article 311 is afforded to permanent as well as temporary posts or officiating in any of them. Where a person has a substantive appointment
to a permanent post he has a right to hold the post until, under the
rules, he attains the age of superannuation or is compulsorily retired
after ha\ing put in the prescribed number of years' service or the post
is abolished and his service cannot be terminated except by way of
punishment for misconduct, negligence, inefficiency or any oiher disqualification found against him on enquiry after due notice to him.
This is the statement of law in Dhingr1J case as well as Moti Ram
Deka case (supra). An.,appointment to a temporary post for a certain specified period gives the servant a right to hold the post for the
entire period of his tenure, and his tenure cannot be put an end to
during that period un'ess he is, by way of punishment, dismissed or
removed from the service. Except in these two cases the appointment
to a post, permanent or temporary, on probati~n or on an officiating
basis or a substantive appointment to a temporary post gives to the
servant so appointed no right to the post and his service may be terminated unless his service had ripened into what is, in the service rules,
called a quasi-permanent service. (See Dhingra case (supra) ) .
A post may be abolished in good faith. The order abolishing the
post may lose its effective character if it is established to have been
made arbitrarily, malafide or as a mask of some penal action within
the meaning of Article 311 (2).
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M. It, PILLAI v. KBRALA (Ray, C.J.)
523
Counsel for the appellants relied on the observations at pp. 706-707
of the Repon in Moti Ram Deka case (supra). The observations
are these. "A person who substantively holds a permanent post has a
right to continue in service, subject, of course, to the rule of superannuation and the ·rule as to compulsory retirement. If for any other
reason that right is invaded and he is asked to leave his service, the
termination of his service must inevitably mean the defeat of his right
to continue in service and as such, it is in the nature of a penalty and
amounts to removal".
Th~se observations were extracted in support
of the contention that Moti Ram Deka case (supra) is an authority
for the proposition that abolition of post amounts to removal. That is
totally misreading the decision in Moti Ram Deka case
(;upra).
The phrase "if for any other reason that right is invaded" is in juxtaposition to the two exceptions of the rule of superannuation and the
rule of compulsory retirement as exceptions
to the applicability of
Article 31 L The third exception of termination as a result of the abolition of a post was not b~ing considered in that portion of the judgment
in Moti Ram Deka case (supra). Earlier in the jud&ment in Moti
Ram Deka case (supra) it is said that a permanent servant would
normally acquire a right to hold the post until under the rules he attained the age of superannuation or was compulsorily retired or the
post was abolished. The same view is taken in Champak/al case
(supra).
In Moti Ram Deka case (supra) it was said that the statement
of law in Dhingra case (supra) "in the absence of a contract, express
or implied, or service rule the permanent servant cannot be turned
out" would permit the authority to terminate the service of a perrnanent servant under terms of contract or service rμles without taking
the case under Article 311
though such termination might amount
to removal or compulsory retirement.
This
Court in Moti Ram
Deka case (supra) did not agree with this statement of law in
Dhingra case (supra) and laid down the Jaw to be that where
a rule is alleged to violate the constitutional guarantee afforded by
Article 311 (2) the argument of contract between the parties and its
binding character is whollY inappropriate. The introduction of the
two clauses "in the absence of a contract, expressed or implied. or
service rule" in Dhingra case (supra) was by reason of consideration of Rule 49 in that case.
Rule 49 spoke of termination
of employment of a pmbationer or a temporary servant or a servant
under a contract not to amount to removal or ·dismissal within the
meaning of that Rule. That is why these two clauses, it was pointed
out. in Moti Ram Deka case, would have no relevance or
~ppli
catmn to permanent servants.
In other words, it was said that the two tests laid
down in
Dhingra case (supra) first whether the servant had a right to
hold the post and whether he had been visited with evil consequences
of the kind referred to therein were not cumulative but were alternative.
Therefore, if the first test was satisfied termination of the permanent
servant's services would amount to removal because his right to the
post is prematurely invaded. This ruling in Moti Ram Deka (supra) is
524
SUPREME COURT REPORTS
[ 1974) 1 s.c.I( ..
on the relevant issue as to whether the order of termination with notice
as oontemp!ated in Rule 149(3) was valid. Such a rule was found to
be a clear inrraction of Article 311.
The statement of law in Dhingra case (supra)
that in
the
absence of a contract, express or implied, or a service rule, a permanent servant cannot be turned out of his post unless
the
post is
abolished or unless he is guilty of misconduct was examined In Moti
Ram Deka case.
In Moti Ram Deka case (supra) it has been said that iK
regard to temporary servants or servants on probation the terms of
contract or service rules may provide for the termination of the service
on notice of a specified period or on payment of salary for the said
period, and if in exercise of the power thus conferred the services
of a temporarY or probationary servant are terminated, it may not
necessarily amount to removal.
If it is shown that the termination
of services is no more than discharge simpliciter effected by virtue
of the contract, or the relevant rules, Article 311(2) may not be
applicable to such a case. lf, however, the termination of a temporary
servant's service in substance represents a penalty imposed on him
or punitive action is taken against him then such termination would
amount to removal and Article 311 (2)
would be attracted.
The
position would be the same in regard to reduction in rank of an officiating servant.
·
The temtination of the service of a pern;ianent servant on the
terms of a contract or under a service rule will attract Article 311
if such termination is in the nature of penalty and amounts to removal.
This. statement of law in Moti Rain Deka case (supra) is on the
consideration of Rules 148(3) and 149(3) of the Indian Railway
Establishment Code.
Rule
148(3)
deals with
non-pensionable
railway servants.
Rule 149 (3) deals with otlter railway
servants.
Both the ru!es provided that the service of railway servant "shall be
liable to termination on noiice on either side of the periods shown
below."
Such notice is not however required under those
Rules
148(3), 149(3) in cases of dismissal or removal as a disciplinary
measure after compliance with .the provisions of clause (2) of Article
311 of the Constitution, retirement on attaining the age of super·
annuation and termination of service due to mental or physical in•
capacity. In Moti Ram D~ka case (supra) ic was held that neither
of the two rules contemplated an enquiry and in none of the actual
cases there the procedure prescribed by Article 311 (2) was followed.
In Mali Ram Deka case
(supra) Rnle
149 (3) which
permi!tcd
termination for service with no•;ce in cases of misconduct to which
the second part of the Rule applied was found to be unconstitutional.
Rules 148 and 149 in Moti Ram Deka case
(supra)
referred
to retirement on superannuation and termination due to physical or
mental
incapacity.
These considerations were not fixed on . any
ad hoc basis and did not invol\>e exercise of l\llV discretion
The•PRules would apply uniformly to servants under those categories. It
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525
1s m this background that the two clauses "in the absence of
a
contract expressed or implied, or service rule" in Dhingar case
(supra) were read to support the reasoning that in regard to a permanent civil servant the termination of his services otherwise than under
the rule of superannuation or compulsory retirement would amount
to removal. Rules 148 and 149 authorised Administration to
terminate the services of all the permanent servants on giving notice. That
clearly amounted to the removal of the servant in question.
Argument was advanced in
Moti
Ram Deka case
(supra)
that Article 310(1) and Article
311 are to be construed in such
manner that the pleasure contemplated by Article 310 (1) does not
become illusory. The contention was that Article 311 (2) was in the
nature of proviso and an exception to Article 310 and in all cases
falling outside the scope of Article 311 the pleasure of the President
or the Governor must be allowed to rule. This Court in Moti Ram
Deka case (supra) said that the pleasure of the President has
to be exercised in accordance with the requirements of Article 311.
Once it is shown that a permanent civil servant is removed from
service Articl6 311 (2) would apply and Article 310 (1) cannot be
invoked independently with the object of justifying the contravention
of the provisions of Article 311(2).
Where it was said in Moti Ram Deka (Supra) that the order of
termination could be effective after complying .with Article 311
it
was presumed that the provisions of Article 311, viz., issue of the
charge-sheet, enquiry would be applicable to such cases of termination.
With regard to abolition of post and consequential termination no
charges could normally be framed and no enquiry could be
held.
E
Therefore, apart from the consideration that abolition of post is not
infliction of a penalty like dismissal or removal or reduction in rank,
the framing of charge, the enquiry and opportunity of showing cause
against the imposition of penalty cannot normally apply to the case
of abolition of post. The discharge of the civil servant on account
of abolition of the post held by him is not an action which is proposed
to be taken as a personal penalty but it is an action concerning the
F
policy of the State whether a perman·~nt post should continue or not.
Counsel on behalf of the appellants contended that the , power to
abolish the post is derived from the doctrine of pleasure as embodied
in Article 310 and since Mo ti Ram Deka case · (supra)
has
abolished the doctrine of pleasure there would not exist any power
to abolish
the post. This contention is unsound.
The power
G
to abolish any civil post is inherent in every sovereign Government.
This JX?Wer is a policy decision exercised by the executive. This
power is necessary for the proper functioning and internal administration of the State. The doctrine of pleasure as embodied in Article 31 O
has not been abolished in Moti Ram Deka case (supra). It has been
made subject to Article 311. The doctrine. of pleasure cannot be invoked to terminate the services in contravention of Article 311. Article
H
310(2) throws a decisive light on the nature of tenure of office
provided by Article 310( 1).
Article 310 (2) recognises the consequences of service at pleasure and expressly overrides them in a very
limited class of cases. These cases are where a fixed
term con8 -L 382SupCJ/74
526
SUPREME COURT REPORTS
[ 1974 J 1 s.c.R.
tract is made. Article 310(2), authorises payment of compensation
to a government servant if before the expiration of that period the post is
abolished or he, for reasons not connected wnh any misconduct, is
required to vacate the post. The terminatkm under· Art. 310(2) is in
case3 of contract having specific provisions for compensation. Moti
Ram Deka case (supra) has not abolished the doctrine of pleasure as
embodied in Article 310. Article 310 has been made subject to Article
311 where termination is by way of punishment.
Counsel for the appellants contended that since Article 310(2)
refers to the event of abolition of post such right is limited by p:o·
vision for compensation and the necessi!Y of securing the services of
the person having special qualification. It is, therefore,
argued on
behalf of the appellants that there was no unconditional right in the
Executive or the legislature to abolish the post. The concept of
contract of payment of compensation is an exception to the doctrine
of pleasure as embodied in Article 310 (I). The reference to abolition
of post in Article 310(2) is in relation to payment of compensation.
as a provision in the contract.
The provisions of Article 310(2)
furnish intrinsic
evidence that the right to abolish the post is
a
category of power exercisable by th~ State. Article 310 is prefaced
by the words "expressly provided by this Constitution."
The abolition of post may have the consequence of termination
of service of a government servant. Such termination is not dismissal
or removal within the meaning of Article 311 of the Constitutt:>n. The
opportunity of showing cause against the proposed penalty of dismissal
or removal does not therefore arise in the case of abolition of post. The
abolition of post is not a personal penalty against the government
servant. The abolition of post is an executive policy decision. Whether
after abolition of the post. the Government servant who was bolding
the post would or could be offered any employment under the State
would therefore be a matter of policy decision of the Government
because the abolition of post does not confer on the person holding
the abolished post any right to hold the post.
The High Court was rorrect in holding that no estoppcl could
arise against tbe State in regard to abolition of post. The appellant
Ramanathan Pillai Knew that the post was temporary. In Amcnr<,il
Jurisprudence 2d at page 783 paragraph 123 it is stated "Gener~lly,
a state is not subject to an estoppel to the same extent as in an
individual or a private corporation. Otherwise it might be rendered
helpless to assert its powers in government.
Therefore as a general
rule the doctrine of estoppel will not be applied agaillst the state in
its governmental, public or sovereign capacity.
An exception however :>Tises in the. application of estoppel to the State where it
is .
necessary to prevent fraud or manifest
injustice".
The
estoppel
alleged by the appellant Ramanathan Pillai was on the ground tliat he
entered into an agreement and thereby changed his position to his
detriment.