# SIRSI MUNICIPALITY BY ITS PRESIDENT SIRSI v. CECELIA KOM FRANCIS TELLIS

- **Citation:** [1973] 3 S.C.R. 348
- **Court:** Supreme Court of India
- **Decided:** 1973-01-18
- **Case number:** Civil Appeal No. 330 of 1967
- **Bench:** S. M. Sikri, A. N. Ray, D. G. 'Palekar, M. H. Beg, N. Dwivedi
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/sirsi-municipality-by-its-president-sirsi-v-cecelia-kom-francis-tellis-5819
- **Pages:** 16

## Headnote

Bon1hay District Municipal Act 1901-Rules nuule under
s. 46--
Rults 143 11uindatory-Disn1issal of employee without reasonable oppor~
tunity .to show cause l'oid and illegal-State authorities 1nust cct 'within
Jin1its of statuton,.i poa·ers-Public_ en1ploy11ient distinguished front p'ri·
"·ate en1p/oy1nent.
The respondent was an employee of the -appellant municipality a!'
a midwife in its hospital.
On the death of a patient in the hospital an
enquiry was held by the Civil Surgeon who found that the death was
not <luc to the negligence of the hospital staff.
Thereafter a committee
appointed by the municipality held an enquiry and made
its
report.
The President of the municipality gave notice to the respondent that
as she was responsible for the death of the patient in question due to
her :negligence she. should appear before the Municipal Council at its
meeting at 4 p.m. on 25 March
195~ and give her explanation.
She
s-ent her reply denying her negligence and also stated that if It was
necessary for her to explain anything she should be asked in writing.
She did not appear before the Council at the appointed time.
When
she did appear at 6 p.m. she insisted that the charge against her should
be in writing.
The municipality dis~ssed her from service. The _res·
pondent thereupon filed a suit for a declaration that the resolution of
the municipality dismissing her from
service
was
void.
Her
fir.st
contention was that Rule 143 of the Ruk" framed by the municipality
had been violated as she was !liOt given an opponunity
of defending
herself against the chafge.
Her second contention was that the resolution was passed by the municipality on a day when the question of
her dismissal was not on the agenda. The
High
Court upheld
the
findings of the trial court and the first Appellate court that the
res·
pQndent was not given a reasonable opportunity to defend herself anJ
thus r. 143 was violated and on this ground upheld
the
declaration
that she was deemed to have continued in service from the
date of
dismissal to the date of the suit.
In appeal by. special leave before this
Court the municipality contended that the respondent was not entitled
to any declaration and that if the dismissal was wrongful the remedy ·lay
in damages.
HELD: (per
Sikri,
C.J .,
Ray,
Palekar
and
Dwivedi,
JJ.)
(i) Tennination or dismissal of what is described as a pure contract of
master and servant is not declared to be a nullity
however
wrongful
or iIJ.egal it may be.
The reason is that dismissal in breach of contract
is remedied by damages.
[353F-GJ
In the case of servant of the State or of local authorities, courts
have declared in appropriate cases the dismissal to be invalid
if
the
dismissal is contra'rv to the rules of natural justice or if the dismissal
or if- the dismissal iS in violation of the provisions of the stattife. Apart
fram the intervention of statute there would not be a, declaration
of
A
B
c
D
E
F
G
H
8
D
E
F
G
H
SIRS! MUNIC. v. KOM FRANCIS (Ray, 1.)
349
nullity in the case of termination or dismissal of a setva!nt of the Stat-I!
or of other local authoriti"' or statutory bodies.
[3530-H]
The courts keep the State and the public authorities
within
the
limits of their statutory powers.
Where a State or a public authority dis·
misses an employee in violation of the mandatory procedural require·
ments or on grounds which are not sanctioned ol' supported by statute
the courts may exercise, jurisdiction to declare the act of dismissal to'
be a ;nullity.
Such implication of public employment is thus distinguished
from
private· employment in pure cases of master and .servant.
l353H,354B]
This
Court
in
its
decisions
has
held
that the dismissal or
termination
of
the
services
of
employees
without
complying
with the provisions of statute or scheme or Order is invalid. This Court
has questioned the orders of dismissal and granted appropriate declarations.
[356C-DJ
Executh·e L'o111111iltee of U.P. State Warehousing Corporation Lbnit-
<'d. v.
l~hatulra Kiran T

## Text

_Characters 0–39,929 of 40,347. This is a partial read: ask again with offset=39929 for what follows._

348
SIRSI MUNICIPALITY BY ITS PRESIDENT SIRSI
v.
CECELIA KOM FRANCIS TELLIS
January 18, 1973
(S. M. SIKRI, C. J., A. N. RAY, D. G. 'PALEKAR, M. H. BEG AND
S, N. DWIVEDI, JJ.J
Bon1hay District Municipal Act 1901-Rules nuule under
s. 46--
Rults 143 11uindatory-Disn1issal of employee without reasonable oppor~
tunity .to show cause l'oid and illegal-State authorities 1nust cct 'within
Jin1its of statuton,.i poa·ers-Public_ en1ploy11ient distinguished front p'ri·
"·ate en1p/oy1nent.
The respondent was an employee of the -appellant municipality a!'
a midwife in its hospital.
On the death of a patient in the hospital an
enquiry was held by the Civil Surgeon who found that the death was
not <luc to the negligence of the hospital staff.
Thereafter a committee
appointed by the municipality held an enquiry and made
its
report.
The President of the municipality gave notice to the respondent that
as she was responsible for the death of the patient in question due to
her :negligence she. should appear before the Municipal Council at its
meeting at 4 p.m. on 25 March
195~ and give her explanation.
She
s-ent her reply denying her negligence and also stated that if It was
necessary for her to explain anything she should be asked in writing.
She did not appear before the Council at the appointed time.
When
she did appear at 6 p.m. she insisted that the charge against her should
be in writing.
The municipality dis~ssed her from service. The _res·
pondent thereupon filed a suit for a declaration that the resolution of
the municipality dismissing her from
service
was
void.
Her
fir.st
contention was that Rule 143 of the Ruk" framed by the municipality
had been violated as she was !liOt given an opponunity
of defending
herself against the chafge.
Her second contention was that the resolution was passed by the municipality on a day when the question of
her dismissal was not on the agenda. The
High
Court upheld
the
findings of the trial court and the first Appellate court that the
res·
pQndent was not given a reasonable opportunity to defend herself anJ
thus r. 143 was violated and on this ground upheld
the
declaration
that she was deemed to have continued in service from the
date of
dismissal to the date of the suit.
In appeal by. special leave before this
Court the municipality contended that the respondent was not entitled
to any declaration and that if the dismissal was wrongful the remedy ·lay
in damages.
HELD: (per
Sikri,
C.J .,
Ray,
Palekar
and
Dwivedi,
JJ.)
(i) Tennination or dismissal of what is described as a pure contract of
master and servant is not declared to be a nullity
however
wrongful
or iIJ.egal it may be.
The reason is that dismissal in breach of contract
is remedied by damages.
[353F-GJ
In the case of servant of the State or of local authorities, courts
have declared in appropriate cases the dismissal to be invalid
if
the
dismissal is contra'rv to the rules of natural justice or if the dismissal
or if- the dismissal iS in violation of the provisions of the stattife. Apart
fram the intervention of statute there would not be a, declaration
of
A
B
c
D
E
F
G
H
8
D
E
F
G
H
SIRS! MUNIC. v. KOM FRANCIS (Ray, 1.)
349
nullity in the case of termination or dismissal of a setva!nt of the Stat-I!
or of other local authoriti"' or statutory bodies.
[3530-H]
The courts keep the State and the public authorities
within
the
limits of their statutory powers.
Where a State or a public authority dis·
misses an employee in violation of the mandatory procedural require·
ments or on grounds which are not sanctioned ol' supported by statute
the courts may exercise, jurisdiction to declare the act of dismissal to'
be a ;nullity.
Such implication of public employment is thus distinguished
from
private· employment in pure cases of master and .servant.
l353H,354B]
This
Court
in
its
decisions
has
held
that the dismissal or
termination
of
the
services
of
employees
without
complying
with the provisions of statute or scheme or Order is invalid. This Court
has questioned the orders of dismissal and granted appropriate declarations.
[356C-DJ
Executh·e L'o111111iltee of U.P. State Warehousing Corporation Lbnit-
<'d. v.
l~hatulra Kiran Tyagi, [1970} 2 S.C.R. 250 a:nd Indian Airli1u•\'
Corpora.tio11 v. Suklufeo Rai, [1971] 2 S.C.C. 192, distinguished.
S. R. Tewari v. District' Boar,/, Agra, [1964)
3 S.C.R. 56,
Life
Insurance l'orporation of India v.
Sunit
Kz11nar
Mukherjee,
[1964]
5 S.C.R. 528, Ca!cutta Dock Labour Board v. Jafjar bnani &
Ors.,
1'1965] 3 S.C.R. 453 and Nc.raindas
Barot
v.
Divisiorui/
Controller,
S.T.C., [1966] 3 S.C.R. 40, referred to.
Recent English decisions, also indicate that statutory provisions
may
lin1it the power of dismisSal.
[356D-F]
Vine v. National Dock Labour Board, [1956) 3 All.E.R. 939 Barber
v. Manchester Hospital Board, [1958] I All. E.R. 322. RidRe v. B<l/dwi11,
11964) A.C. 41, Malloch v. Aberdeen Corporation. [19711 2 All. E.R.
1278 and McClelland v. Northern Ireland Generc.l Health Services Board.
[1957] I W.L.R. 594, referred to.
(ii) In the present case the dismissal of the respondent
must
he
declared to be illegal and void.
Rule 143 in1poses a mandatory obligation.
The rules y,·erc made in
exercise of power confeired on the nlunicipality by statute. The rules
are binding on the municipality.
They cannot be. amended without
the
assent of the State Government. The disn1issal of the respondent
was
rightly found by the Hi~h Court to be in violation of rule 143 which
imposed- a ma,Ttdatory obligation. The respondent was dismissed without
a reasonable opportunity of being heard in her defence.
The dismissal
by the municipality was without recdrding anv written statemerit "'hich
might have been tendered.
The dismissal by the municioalitv was \vith·
out \vrittcn order. The dismissal was ultra v;1·es.
[357G-358A]
Per Beg, J. (concurri11g)-The competence of the
Municipal courl
to pass the rcso]utir.n dismis..;;ing
the
respondent depended
more on
compliance with Rule 143 made unclor s. 46 of the Bombay District
Municipal Act, 1901 than on s. 26(8) of the
Act. Compliance
wit~
such a rule could not be dispensed with bv the Collllcll or its presiding
au1hority under s. 26(8) of the Act.
[359C-E]
Neither r\lles nor bye-Jaws of the municipality could
be
made or
altered by it unilaterallv. lloth operated as. laws which bound the local
nuthority.
This was clear frlllll ss. 46 and 48 of the Act_
350
SUPREME COURT REPORTS
[1973) 3 S.C.R.
An express statutory provision or guarantee is not the
only
basis
of a mandatory duty, or obligation. It ca'! he impo~ed either_ by .a r:ite
made in exercise of a statutory power or 1t may ar1sc
by
1mpltcation
when exercising a quasi-judicial function,
[360G-HJ
The present case undoubt£dly fell within the category of cases where
dismissal must be based upon a decision arrived at quasi·judicially about
a wrong done by the seryant. This ele-ntary and
basic
procedural
safeguard, flows not merely from an implied rule of natural justice but
in the present case it is actually embodied in a rule which cannot
be
interpreted as anything other than a legal limitation or fett£r on th<:
power of the municipality to dismisses.
[362F-Gl
This could not be a case in which damages for a simple breach of
contract could afford adequate relief.
Damages could !OOt wipe off the·
stigma attached to the record. of the sefV'aD.t.
The law
requires
that
he_fore the future of a servant is allowed to be marred by
a blot on
the recorJ of the servant concerned,, rules of natural justice must -be
complied with.
[363A-Bl
Case law referred to.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 330 of
1967.
Appeal by a special leave from the judgm~nt and order dated
June 16, 1966 of the Mysore High Court at Bangalore in Regular
First Appeal No. 33 of 1962.
R. B. Datar and S. N. Prasad, for the appellant.
A
B
c
D
S. S. Javali, B. P. Singh and D. N. Mishra, for the re.spondent.
E
G. B. Pai and C. S. Rao, for the intervener No. 1.
G. Ramchandra Rao and B. Parthasarath.v, for intervener
No. 2.
D. V. Patel and K. L. Hathi, for intervener No. 3.
S. Balakrishnan, for intervener No. 4.
B. Datta, for intervener No. 5.
The Judgment of Sikri, C. J., Ray, Palekar and Dwivedi, JJ.
was delivered by Ray, J. Beg, J. gave a separate Opinion.
RAY, J.-The question which falls for determination in this
appeal by special leave is whether the respondent is entitled to a
declaration in a suit filed by her that her dismissal by the appellant
municipality referred to as the municipality was illegal and void.
The respondent was an employee of the municipality.
Her
services were terminated by a resolution dated 23 March, 1955.
She. was dismissed from service. She filed this suit for a declaration . that the resolution of the municipality dismissing her from
service was void and that she continued to be in service of the
F
G
H
A
B
c
D
E
G
II
~IRS! MUNIC. v. KOM FRANCIS (Ray, J.)
351
municipality and was entitled to emoluments from the date of the
resolution up ~o the date of the suit.
The Municipality is goverened by the Bombay District Municipalities Act, 1901 referred to as the Act. Sectic;>n 46 of the Act
provides that the municipality shall make rules in respect oi matters enumerated in that section. Clause (g) of section 46 empowers
the municipality, to frame rules regulating inter alia the period of
service, the conditions of service etc.
Rule 183 framed by the municipality provides that except in
the case of Chief Health Officer and the Engineer every municipal
officer or servant is liable to be discharged at one month's notice.
Rule 183 was not invoked by the municipality in 'the present appeal.
Therefore, rule 183 is out of consideration.
Rule 143 of the municipality provides two things. First, no
officer or servant shall be dismissed without a reasonable opportunity being given to him of being heard in his defence. Any
written statement tendered shall be recorded and written order
shall be passed thereon. Second, every order of dismissal or confirming dismissal shall be in writing and shall specify the charge
or charges brought, the defence and the reasons for the order.
Sometime in February 1955 one Nayak brought his wife
Nagarnma to Pandit Cottage l{ospital administered by the municipality. Nagamma was admitted to the maternity section. , On
15 February 1955 Nagamma died.
Nagamma's husband complained to the municipality against
the negligence of the staff of the hospital as the cause for the death
of Nagamma. The Civil Surgeon held an enquiry.
He gave a
finding that the death of Nagamma was not due to the negligence
of the staff. There was public agitation for a fresh enquiry.
On 7 March 1955 the municipality passed a resolution appointing a committee of four persons to hold an enquiry into the cause
of the death of Nagamma and the alleged negligence of the staff
of·the hospital. The committee recorded the statements of several
persons.
The committee submitted its report to the Municipal
Council.
On 23 March 1955 a meeting of the Municipal Council ~'as
held. The respondent alleged that though the consideration of the
report of the sub-committee and the taking of a decision thereon
were not inc~uded in th~ agenda of that meeting, yet the President
of the Council sent a nouce to the respondent. The communication
to the respondent was to the effect that it had come to the notice
of the President that the death of Nagamma was due to the negli-
'
352
SUPREME COURT REPORTS
(1973) 3 S.C.R.
gcnce of rthe respondent, and, therefore, she was to appear before
the Municipal Council at 4 p.m. on 23 March 1955 and give )\er
explanation.
The respondent received a notice on 23 March,
1955 at about 10.30 a.m. She sent her reply denying her negli·
gence. The respondent also stated that if it was necessary for !J.er
to explain anything she should be asked questions in writing and
she would give her answers in writing.
The respondent did not appear before the Municipal Council
at 4 p.m. The respondent came to !he municipal hall at about
6 p.m. But that rtime, the Municipal Council had passed a resolu·
tion dismissing the respondent from service. The President asked
the respondent what her statement was about negligence.
The
respondent did not make any oral sfatement.
The respondent
insisted that the charge ·against her should be given in writing and
that she would reply in writing. The municipality did not acceds
to the respondent's request.
The resolution of the municipality
was communicated to the respondent on the same day. The respondent handed over charge on 24 March 1955.
Broadly stated, the two contentions of :the respondent were
these. First, rule 143 of the municipality was violated. She was
not given a reasonable opportunity of defending herself against
the charge. Second, the resolution was passed by the municipality
on a day when the agenda before the municipality did not contain
any subject of dismissal of the respondent. On these grounds the
respondent filed a suit for a declaration that the resolution was
illegal, that the status of the respondent as mid-wife in the hospital
remained unaffected and that the respondent was an employee of
the municipality as !Jiefore. The respondent claimed other reliefs.
The contention of the municipality on the other hand was that
the rules and bye-laws of the municipality were only for the guidance of the municipality and that the respondent could not challenge the resolution or action of the municipality on the ground
of violation of rules and bye-laws.
The High Court upheld the findings of the trial Court and the
first Appellate Court that the respondent was not given a reasonable opportunity of defending herself against the charge on which
she was dismissed and that the municipality thus violated rule 143.
The High Court however did not accept the finding of the courts ,
below that the Municipal Council was not competent to pass the
resolution on the ground of want of notice on the agenda. The
High Court also set aside the findings ol the courts below that the
charge had not been proved against the respondent.
The High
Court found that the resolution of the municipality was c~
·
in violation of rule 143 and declared it as invalid and inopeiative;
A
II
c
D
E
F
G·
•
H
A
B
SIRS! MUNIC. V. KOM FP.ANCIS (Ray, /.)
353
The High Court maintained the declaration tha:t the respondent
was deemed to have continued in service from the date of dismissal to the date of the suit.
Counsel on behalf of the municipality contended that the respondent was not entitled to any declaration. In short, it was said
on behalf of the municipality that if the dismissal was wrongful
the remedy lay in damages.
The cases of dismissal of a servant fall under three broad
heads. The fir5t head relates to relationship of master and servant
governed purely by contract of employment. Any breach of contract in such a case is enforced by a suit for wrongful dismissal
C
and damages. Just as a contract of employment is not capable of
specific performance similarly breach of contract of emvloY1Dent
is not capable of founding a declaratory judgment of subsistence
of employment. A declaration of unlawful termination and restoration to service in such a case of contract of employment would
be indirectly an instance of specific performance of contract for
D
personal services. Such a declaration is not permissible under the
Law of Specific Relief Act.
E
F
G
H
.
The second type of cases of master and servant arises under
Industrial Law. Under That branch of law a servant who is wrongfully dismissed may be reinstated. This is a special provision
under Industrial Law. _This relief is a departure from the reliefs
available under the Indian Contract Act and the Specific. Relief
Act which do not provide for reinstatement of a servant.
The third category of cases of master and servant arises in
regard to the servant in the employment of the Sta:te or of other
public or local authorities or bodies created under statute.
Termination or dismissal of what is described as a pure oontract of master and servant is not declared to be a nullity however
wrongful or illegal it may be. The reason is that dismissal in
breach of contract is remedied biy damages. In the case of servant
of the State or of local authorities or statutory bodies, ·courts have
declared in appropriate cases the dismissal to be invalid if the
dismissal is contrary to rules of natural justice or if the dismissal
is in violation of the provisions of the statute.
Apa~t from the
intervention of statute there would not be a declaia'lion of nullity
in the case of termination or dismissal of a servant of the State or
of other local authorities or statutory bodies.
The courts. keep the State and the public authorities within
the limit~ of their statutory powers. Where a State or ·a public
authority dismis.~ an employee in violation of the mandatory
procedural requirements or an grounds which are not sanctioned
354
SUPREME COURT REPORTS
[1973) 3 S.C.R.
or suppol'ted by statute the courts may exercise jurisdiction to
declare the act of dismissal to be a nullity. Such implication of
public employment is thus distinguished from private employment
in pure cases of master nnd servant.
Counsel on behalf of the municipality relies on the decisions
of this Court in Executive Committee of U.P. State Warehousing
Corporation limited v. Chandra Kiran Tyagi
(1970) 2 S.C.R.
250 and Indian Airlines Corporation v. Sukhdeo Rai
(1971) 2
S.C.C. 192 in support of 1the contention that even in cases· cf
statutory authorities or bodies a dismissal would only sound in
damages and not entitle the dismissed servant to the relief of a
declaratory judgment against the order of dismissal or termination.
In Tyagi's case (supra) the Warehousing Corporation was
competent to make regulations not inconsistent with the Agricultural Produce (Development and Warehousing) Corporation Act,
1956.
The
Warehousing
Corpor®.on
framed
regulations.
Regulation 11 dealt wrth termination of the service al an
employee other than b!y way of punishment. Regulation 16 dealt
with penalties imposed on servant. Regulation 16(3) s1ated that
no punishment other than fine, censure or postponement of increments or promotion was to be imposed on an employee without
giving him an opportunity for tendering an explanation in writing
and cross examining the witnesses against him and of. producing
evidence in defence.
Tyagi in that case complained that at the
enquiry he was not given opportunity to adduce evidence in
defence and 1he persons from whom the Enquiry Officer gathered
information were not tendered for cross-examination. The question for consideration by this Court in that case was whether the
dismissal of Tyagi could support the
grant of a declaration
that the
dismissal was
null and void and that Tyagi was
entitled to be reinstated. This Court held that an order made in
breach of regulation 16(3) was not in breach of any statutory
obligation. It was also held in Tyagi's( 1) case (supra) that the
relevant Act did not 'guarantee any statutory status to Tyagi' nor
did it 'impose any obligation' on the Warehousing Corporation in
the matter of dismissal. The ratio in Tyagi's( 1) case (supra) was
that violation of reeulation 16(3) was a breach al terms and cOnditions of relationship of master and servant and the master was
liable for damages for wrongful dismissal.
This Comt did not
find any violation of statntCl'.'y obligation in Tyagi's( 1)
case
(supra).
A
B
c
D
E
F
G
H
A
B
c
D
E
F
G
H
SIRS! MUNIC. V. K-OM FRANCIS (Ray, ].)
355
In the Indian Airlines Corporation case (supra)
Sukhdeo
Rai was suspended on certain charges. Later on he was found
quilty of those charges in an enquiry. He was thereafter dismissed.
He filed a suit alleging that the enquiry had been conducted in
breach of the procedure laid down by regulations made by the
Corporation under section 45 oi the Act, and, therefore, the dismissal was illegal and void. The High Court held that the Corporation was under a statutory obligation to obServe the procedure
laid down in the regulations and gave the relief of a declaratory
judgment. This Court set aside the declaration granted by the
High Court. The ratio in Indian Airlines Corporation case
was st:rted · thus :
"The employment of the respondent not being one
to an office or status and there being no obligation or
restriction in the Act or the rules subject to which only
the power to terminate the respondent's employment
could be exercised, could the respondent contend that
he was entitled to a declaration that the termination of
his employment was null and void ?"
·
In the Indian Airlines Corporation case
(supra)
regulations framed under section 45 of the Act were said by this Court
to be terms and conditions of service but the same did not constitute a statutory restriction as to the kind of contracts ·which the
Corporation could make with the servants or he ground on which
it could terminate. The dismissal in ithat case was found to he
wrongful and not to fall within the vice of infraction of statutory
limitation or statutory obligation.
This Court in S. R. Tewari v. District Board Agra (1964)
3 S.C.R. 55, Life Insurance Corporation of India v. Sunil Kumar
Mukherjee (1964)
5 S.C.R.
528, Calcutta Dock Labour
BOlll'd v. Jaf]ar Imam & Ors. (1965) 3 S.C.R. 453 and Naraindas Barot v. Divisional Controller, S.T.C. (1966) 3 S.C.R. 40
dealt with power of statutory authorities and bodies to dismiss
servants. These decisions establish that the dismissal of a servant
by statutory including local authorities or bodies in breach of the
provisions of the statutes or orders or schemes made under the
statute which regulate the exercise of their power is invalid or
ultra vires and the principle of pure master and servant contractual
relationship has no application to such cases.
In Tewari's case (supra) this Court said that dismissal, temoval or reduction of an officer or servant might be effected under
356
SUPREME COURT REPORTS
[1973] 3 S.C.R.
the rules only after giving the servant a reasonable opportunity
of showing cause against the action proposed to be taken. This
Court held in Tewari's case (supra) that in three instances a
dismissed employee might in ~ppropriate cases o1'tain a declaratory judgment that the dismissal was wrongful. Those three instances are : first, cases of public servants falling under Article
3I1 (2) of the Constitution; secondly, cases falling under the Industrial Law and, thirdly, cases where acts of statutory bodies are
in breach of mandatory obligation imposed by a statute.
In Naraindas Barot's case (supra) this Court held that the
order of tem1ination was bad in law since it contravened the provisions of clause 4(b) of the regulation and also the principles of
natural justice.
This Court has held in the decisions referred to that the dismissal or termination of the services of employees without complying with the provisions of statute or scheme or order is invalid.
This Court has quashed the orders of dismissal and granted appropriate declarations.
There have been recent English decisions on this subject.
These are Vine v. National Dock Labour Board (1956) 3 All
E.R. 939; Barber v. Manchester Hospital Board (1958) 1
All E.R. 322; Ridge v. Baldwin 1964 A.C. 41; Malloch v.
Aberdeen Corporation (1971) 2 All E.R. 1278 and McClelland v. Northern lreland General Health Services Board (1957)
l W.L.R. 594.
These decisions indicate that statutory provisions may limit the
power of dismissal.
Where such limitation is disregarded a dismissal may be held invalid. In this respect employment under
statutory bo,dies differs from ordinary private employment. Where
a public body is empowered to terminate employment on specified
grounds or where a public body does not observe the procedure
laid down l\Y legislation e.g., improperly delegates power of dismissal to another body the courts have declared such dismissal
from public employment to be invalid.
The cases of a statutory status of an employee can be also form
the subject matter of protection of the rights of an employee under
the statute. In Vine's case
(supra)
the removal of Vine's
name from the register was held to be a nullity. The statutory
scheme of employment was held to confer on the worker a status.
A
B
c
D
E
F
G
H
A
B
c
D
E
F
~IRS! MUNIC. V. KOM FRANCIS (Ray, J.)
357
An unlawful act of the Board was found to be interference with
status. The status of ·the dock worker was recognised by this in
J11ffar Imam's case (supra). In Jaffar Imam's case (supra) the
t~nnination of the employment in breach of clause 36(3) of
the scheme made by the Central Government in exercise of the
power conferred on it by section 4( 1) of the Dock Workers (Regulation of Employment) Act 1948 was held to be bad.
The
ground given by this Court was that before any disciplinary action
was taken
under clauses
36( 1) and (2) of the
scheme in
Jaffar Imam's case (supra) th~ person concerned was to be given
an opportunity to show cause as to why the proposed action should
not be taken against him.
Again in Barber's case (supra) under the memorandum
issued by the Minister of H:ealth the Hospital Board was not to
carry into effect the dismissal of consultant before a certain appeal
procedure had been completed.
Barbar was dismissed without
the prescribed procedure being followed. It was held that despite
the 'strong statutory flavour ~ttaching to the plaintiff's contract'
this was an ordinary contract between master and servant. The
House of Lord in McC/e/land's case held that the dismissal of
the plairrtiff by the Board in that case on the ground of redundancy
of staff was not one of the grounds specified in the tenns and conditions of service.
It was found that the dismissal could be on
specified grounds e.g .. , gross
miscouduct.
A declaration was
granted in favour of McClelland on an originating summons as
to whether the agreement of service was validly tenninated. It
was not a case of a Government servant. There was no question
of breach of statutory provisions. The employment was based on
contract. The Court found that the express power of the Board
did not include reduction on the ground of redundancy.
The
Court spelt out security of status in employment. The legal basis
of the decision in McClel/and's case
(supra) is that the post
was terminable only on certain specified grounds.
G
In the present appeal, the pre-eminent question is whether the
dismissal is in violation of rule 143. Rule 143 imposes a mandatory
obligation. The rules were made in exercise of power conferred
on the municipality by statute. The rules are binding on the municipality. They cannot be amended without the assent of the State
Government. The dismissal of the respondent was rightly found
H
by the High Court to be in violation of rule 143 which imposed a
mandatory obligation. The respondent was di~missed without a
reasonable opportunity of bein~ heard in her defence. The dismissal by the municipality was without recording any written
:iss
SUPREME COURT REPORTS
(1973] 3 S.C.R.
statement which might have been tendered. The dio.missal by the
municipality was without written order. The dismissal was ultra
vires ..
For the foregoing reasons the High Court was correct in
declaring the dismissal of the respondent to be illegal anq void.
The appeal is therefore dismissed. Jn
view of the fact
thL1
court directed the appellant would in any event pay the respondents' costs, 1he Respondent will be pai1 these costs.
BEG, J.-The facts of the case before us, which are so clearly
set out in the judgment of my learned Brother Ray, need not be
repeated by me. I respectfully concur with what has fallen from
my learned brother. I would, however, like to add some observation on two aspects of the case before us.
Firstly, it was suggested, on behalf of the Municipality, that
the local authority had some kind of dispensing power which
could enable it to over-ride Rule 143 in the circumstances of the
case before us.
Rule 143 of the Sirsi Murticipality,
reads as
follows :-
"Rule 143 (I). No officer or servant be dismissed
without a reasonable opportunity cieing given to him of
being heard in his defence.
Any written defence tendered shall be recorded and written order shall be passed
thereon.
;2) Every order of dismissal or confirming a dismbsal shall be in writing and shall specify the charge or
charges brought, the defence and the reasons for the
order".
This suggestion was based on the provisions of Section 26,
sub. s(8) of the Bombay District Municipal Act 1901 (hereinafter referred to as "the Act") which has ,really nothing to do with
any general power to disperse wi1h the application of any rule.
A
B
c
Il
E
F
All that Section 26, sub. s(8), empowers the Council to do is to
take up a matter for consideration and discussion with the perG
mission of the Presiding authority even though it may not have
been tabled on 'the notified agenda for the meeting. This provision reads as follows :
"26 ( 8). Except with the permission of the presiding
authority, which permission shall not ijl given in the case
H
of a motion or proposition to modiiy or cancel anv resolution within three months after the passing thereof. no
business shall be transacted and no propositiorvshall be
A
B
SIRS! MUNIC. v. KOM FRANCIS (Beg, J.)
359
discussed at any general meeting unless it has been menuoned in the notice convening such meeting .or, in the
case of a special general meetmg, in the written request
for such meeting. The order in which any business that
may be transacted or any proposition that may be discussed at any meeting in accordance with this subsection shall be brought forward at such meeting, shaU
be determind by the presiding authority, who in case it
is proposed by any member to give priority to any particular rtem of such business, or to any particular proposition shall put the proposal to the meeting and be guided
c
by the majority of votes given for or agaill.9t the
proposal".
D
E
Section 26, sub. s. ( 8), seems initially to have been relied upon
only to meet the argument that the impugned resolution could
not be passed in the absence of a previous notice of it to the
Members of the Council. The competence of the Municipal
Council to pass the resolution dismissing the respcindent depended
more on compliance with Rule 143 made under Section 46 of the
Act than on Section 26 ( 8) of the Act. Compliance with such a
rule could not be dispensed with by the Council or its presiding
authority under Section 26 (8) of the Act.
The mode and conditions of appoi_ntment, punishment, and
dismissal of officers and servants of the Municipality were meant
to be regulated by rules which had to ~ approved by the State
Government in the case of the City ¥unicipalities and by the Com·
missioner in other cases before they could become binding or be
altered. Bye-laws could be made on certain specified subjects only
after the previous sanction of the State Government or the Com·
missioner, as the case may be, given to them. Neither rules nor
F
bye-laws of the Municipality could be made or altered unilaterally
by it. Both operated as laws which bound the local authority.
This was clear from the provisions of Section 46 and 48 of the Act.
In Yabbicon v. King(') it was said :
"The District Council could not control the law, and
G
b!y~Iaws properly made have the effect of laws; a public
body cannot any more than privl!te persons dispense
with laws that have to be administered; they have no dispensing power whatever".
Again in William Feam & Sons. v. Flaxton Dural Council(')
Sankey, L. J., held that a local authority has "no power" to conH travene its own bye-laws properly made. In Kruse Vs. Johnson('),
(I) (1-899) (I Q.B. 444 (a).
(3) (1898) (2 Q.B. 91).
(2) (1929) (I K. B. 4SO @ 467).
JGO
SUPREME COURT REPORTS
[1973] 3 S.C.R.
Lord Russel pointed out that a bye-law has the "force of law"
within the sphere of its legitimate operation.
Therefore, quite apart from the basic character of Rule 143
as a procedural protection against un-meritted punishment by dismissal of servants of the Municipality, I think that the local body
was not competent to act upon the assumption that it had any
po:-ver to dispense with compliance with this rule so long a& it stood
unaltered.
Secondly, the question arose whether the violation of Rule
143, which admittedly took place, made the dismissal of the respondent merely illegal, for which award of damages was sufficient
remedy, or m~tje it void and ineffected, so that a declaration of the
rights of_ the respondent as a servant of the Municipality could also
be given despite the provisions of Section 21 Specific Relief Act.
It is true that, ordinarily, a Co1c1rt will not give a declaration which
will have the effect of enforcing a contract of personal service and
will restrict relief to the injured party to damages for breach of
contract. But, the principles which are applicable to the relation
of a private master and a servant, l!n-regulated by statute, could
not apply similarly to the case of a public statutory body exercising
powers of punishment fertered or limited by statute and relevant
rules of procedure.
Although Indian Airlines Corporation
v.
Sukhdeo Rai(1),
which was cited on behalf of the appellant, could perhaps be dis·
tinguished on facts, I am unable to reconcile the decision of this
Court in the case of Executive Committee of U.P. State Ware·
housing Corporation Ltd. v. Chandra Kiran Tyagi('), with our
view in the case before us. In Tyagi's case (supra), as in the case
be.fore us, no express statutory provision was contravened by the
impugned dismissal, but a rule, made under. powers conferred by
statute, which protects the servant concerned from punishment bv
way of dismissal contrary to rules of natural justice, was violated.
If a guaranteed "statutory status" means only an express statutory
p,rellection, such as the one found in Article 311 of 1he Constitution,
and a rule made under a statutory power is not enough to confer
it, there was none either in T,vagi's case. (supra) or in the case
before us. An express statutory provision or guarantee is not the
only basis of a mandatory duty or obligation. It can be imoosed
either by a rule made in exercise of a statutorv oower or it may
arise by implication when exercising a qu'asi-judicial functions.
Even when there was no specific rule on the subject. like Rule
143 in the case before us, this' Court has held that violation cf ita1·
(I) [19711 S·1p,, S.C.R. 510.
(3) (1970J (2) S.C. R. 250.
·-
A
8
c
D
E
F
G
H
A.
B
c
D
E
F
G
H
51RSI MUNIC. V. KOM FRANCIS (Beg, J . .)
:1 Ii 1
plied rules of natural justice, iii exercise of a quasi-judicial statutor:
power, results in a· legally void decision. It was so held because
the obligation to observe .~ules of natural justice was imperative in
such a situation. In State of Orissa v.
Dr.
(Miss)
Bi11apa11i
Rai('), this Court said :
"The rule
that a party to whose prejudice an order
is intended to be passed is entitled to a hearing applies
alike 10 judicial tribunals and bodies of persons invested
with authority to adjudicate
upon matters involving
civil consequences. It is one of the fundamental rules of
our constitutional set up that every citizen is protected against exercise bf arb:itrary authority by the State
or its officers. Duty to act judicially would, 'therefore,
arise from the very nature of the function intended to be
performed; it need not be shown to be super-added. If
there is power to decide and determine to the prejudice
of a person, duty to act judicially is implicit in the
exercise of such power.
If the essentials of justice be
ignored and an order to the prejudice of a person is
made, the order is a nullity. That is a basic concept of
the rule of Jaw and importance thereof transcends the
significance of a decision in any particular case".
This principle would be equally applicable to local Government
bodies which fall within the definition of "State" given in Artkl~
12 of the Constitution.
Byles, J., in Cooper v. The Board of Works for We11dswor1/1
District('), said long ago about the primordial character of the
opportunity to be heard before punishment :
"The laws of God and man both give the party an
opportunity to make his defence, if he has any.
I remember to have heard it obseryed by a very learned
man, upon such an occasion, that even God himsell did
not pass sentence upon Adam before he was called upon
to make his defence.
'Adam' (says God) 'where art
thou ? Hast thou not eaten of the tree whereof I commanded those that thou shouldst not ear?"'
Such a principle has been described as a principle of "Universa
jurisprudence" by Mahomood, J., in Queen Empress v. Po11hi(" l
Tn Ridge v. Baldwin(') Lord Reid observed (at page 71)
"The authorities ·on the applicability of the Principle& of natural justice are in some confusion and so I
(I) \196'.IJ (2) S.C::.R.625.
12) 0863) 14 C.N.S.180.
(3) .L.R. 13 Alld. 171.
(4) 1964 A.C. <IO@ 65.
362
SUPREME COURT REPORTS
[1973] 3 s.c.R.
find rt necessary to examine this matter in some detail.
The principle audi a/teram partem goes back many c.entunes in our law and appears in a multitude of judgments of judges of the highe!lt authority. In ,modem
tlliles opinions have sometimes been expressec> to the
eltect that natural justice is so vague as to be practically
meaningless. But I would regard these as tainted by the
perennial fallacy that because something cannot be cut
and dried or ni~ly' weighed or measured therefore it
does not exist. The idea of negligance is equally insusceptible of exact definition but what a reasonable man
would regard as fair procedure in particular circumstances and what he would regard as negligance in particular circumstances are equally capable of serving as
tests in law, and natural justice as it had been interpreted
in the coul'ts is much more definite than that. It appears
to me that one reason why the authorities on natural justice have been found difficult to reconcile in that insufficient attention has been paid to the great difference between various kinds of cases in which it has been sought
to apply the principle. What a minister ought to do in
considering objections to a scheme may be very different from what a watch committee ought to do in considering whether to dismiss a chief constable. So I shall
deal first with cases of dismissal. These appear to fall
in.to t11ree classes, dismissal of. a servant by his master,
dismissal from an office held during pleasure, and dismissal from an office where there must be something
against a man to warrant his dismissal".
The case before us undoubtedly falls within the category of
cases
where
dismissal
must
be based upon
a decision
arrived at quasi-judicially about a wrong done by the servant.
This elementary and basic procedural safeguard flows not merely
from an implied rule of na'lural justice, but, in the case l:lefore us,
it is actually embodied in a rule which we cannot interpret as
anything other than a legal limitation or fetter on the power of
the Municipal authority to dismiss. It constitutes a condition precedent to a valid decision to dismiss whether contained in a resolution or an order of the local authoritv. As the local Government
authority had failed to see that a mandatory duty, embodied ill
a basic rule, had been carried out. the resulting decision must
neces~arily be held to be void.
If the c;lecision to dismiss the resnondent was vnid and inooerat.i ve in law, there seems no reason whv a declaration to that effect
be not granted.
Such a case would be covered by the principles
A
n
c
D
E
F
G
H
SlllS! MUN!C, V. KOM FRANCIS (Beg, J,)
363
A laid down by this court in. : Life Insurance Corporation of l ndia
v.
Sunil Kumar Mukherjea & 019.(1)
and S, P. Tewari
v.
District Board Agra & Anr. ('). This could not be a case in
which damages for a simple breach of contract could afford adequate relief.