High CourtDivision BenchAppeal Allowed

Dharam Dev Mehta v. Union of India & Others

Case / Petition Number:Civil Appeal No. 174 of 1976
Neutral Citation:(1980) 2 SCR 554

Case Details & Bench

Court
High Court
Hon'ble Judges
  • V. R. Krishna Iyer
  • R. S. Pathak
Judgment Date
1979-12-20
Court Decision / Holding
Appeal allowed. The retirement order was declared illegal for contravention of Rule 2(a) read with FR 56(j) (and FR 56(i) as referenced). The appointing authority must be the highest among the four enumerated authorities, i.e., the Comptroller and Auditor General, and the order by the Director of Commercial Audit was set aside. The appellant shall be entitled to salary for the period between retirement and actual superannuation.
Final Disposition
Appeal Allowed

Parties to the Case

Appellants / Petitioners

  • Dharam Dev Mehta

Respondents

  • The Union of India and Others

Legal Representation & Advocates

Counsels for Petitioners

  • • P. Rao
  • • A. K. Ganguli
  • • R. Venkataramani

Counsels for Respondents

  • • T. A. Francis
  • • Miss A. Subhashini

Case Synopsis & Summary

This appeal concerns the validity of a compulsory retirement order issued to Dharam Dev Mehta under Rule 56(j) of the Fundamental Rules. Mehta had been retired by the Director of Commercial Audit, though the appointment to the service and the authority to retire a government servant is governed by Rule 2(a) of the CCS (CCA) Rules, 1965. Rule 2(a) provides four alternative authorities to whom retirement or appointments can be traced, and it states that the appointing authority is the highest among them. The Court held that the authority specified in Rule 2(a)(iii) — the Comptroller and Auditor General — is the highest, and therefore the retirement order must be issued by the CAG. The retirement order issued by the Director of Commercial Audit was therefore illegal for contravention of Rule 2(a) read with FR 56(j). The High Court had overlooked this vital requirement, misapprehending the competency of the appointing authority. The Supreme Court concluded that the retirement is illegal and quashed the impugned order. The decision emphasizes the need for compliance with statutory hierarchy of appointing and retirement authorities in the CCS (CCA) Rules and Fundamental Rules to prevent administrative overreach. The Court allowed the appeal, with costs to be borne by the parties, and observed that the administrative flaw, though technical, has significant financial consequences. The appellant is entitled to his salary for the period between retirement and superannuation.

Provisions of Law Cited

Rule 2(a) CCS (CCA) Rules, 1965Fundamental Rules (FR) 56(i)Fundamental Rules (FR) 56(j)

Legal Doctrines & Maxims

  • Whichever authority is the highest (Rule 2(a))
  • Competent authority doctrine in retirement and appointment of government servants

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the appointing authority under Rule 2(a) CCS (CCA) Rules, 1965 is the highest among four enumerated authorities, namely the CAG, the Deputy Comptroller and Auditor General, and others. Since Rule 2(a)(iii) identifies the Comptroller & Auditor General as the highest, retirement orders must be issued by the CAG. The retirement order issued by the Director of Commercial Audit falls outside this hierarchy, contravening FR 56(j)/FR 56(i) and thereby invalidating the order. The High Court erred by overlooking the statutory hierarchy, permitting a lesser official to retire a government servant, creating a legal flaw with financial consequences for the state and the officer.

Contentions of Respondents

The respondents argued that retirement could be effected under the applicable Fundamental Rules by the competent authority within the department. They maintained that the Director of Commercial Audit was a legitimate officer under the FRs and that FR 56(i) or relevant provisions permitted retirement; the reliance on Rule 2(a) was to be read with the entire framework of service rules so as to allow retirement by the responsible official, avoiding disruption in administrative functioning.

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Extracted Judgment Text

Exact text extracted from official judgment records.

A B 554 DHARAM DEV MEHTA _v._ THE UNION OF INDIA & OTHERS _December_ 20, 1979 [V. R. KRISHNA IYER AND R. S. PATHAK, JJ,] _Compulsory retiren1ent-Appointing authority as per Rule_ 2(a) _oi_ _C.C.s ......_ _(CCA)_ _Rules_ 1965 _i::i_ _Co111ptroller_ & _Auditor_ _General_ _of_ _lndia--Contpu!Jory_ _retire1ne11t_ _orders under F.R._ 56(i) _issued_ _by_ _the Director_ _of_ _Commercial_ _Audit_ _is_ _contrary_ _10_ _law and illegal._ C Allowing the appeal by special leave, the Court, 0 HELD. Rule 2(a) of the C.C.S. (C.C.A.) Rules, 1965 states, after setting out alternative authorities, that the appointing authority is one out of four categories who is the highest, by using the expression "whicbev0r authority is the highest". There is no doubt that of the four classes of authorities listed under Rule 2(a), the one falling under sub~rule (iii) viz. Comptroller & Auditor D General (in the present case) is the highest. Therefore the order of the retirement to be legal must be issued by the Comptroller & Auditor General. The mpugned order of retirement issued by the Director of the Commercial Audit who is a lesser officia~ is contrary to lav;'. On account of the contravention of F.R. 56(j) read with rnle 2(a) of the C.C.S. (C.C.A.) Rules, 1965, the retirement is iJJegal. [555 E-G, _556_ B] E _Observation_ : Administrative law i!ll a course necessary for administrative officers at the highest levels so that such flaws may not vitiate orders they pass. I F CIVIL APPELLATE JURISDICTION : Civil Appeal No. 174 of 1976. Appeal by Special Leave from the Judgment and Order dated 1-11-1974 of the Delhi High Court in L.P.A. No. 19171. _P._ _P._ _Rao,_ _A. K. Ganguli_ and _R._ _Venkataramani_ for the Appellant. _T._ _A._ _Francis_ and _Miss_ _A._ _Subhashini_ for the Respondents. G The Judgment of the Court was delivered by KRISHNA IYER, J.-This appeal by special leave raises a short ques .. tion as to whether the appellant, who was retired under Rule 56(j) of the Fundamental Rules was so retired by a competent authority contemplated by the rule. Admittedly he was appointed by the Comptroller H and Auditor General. The only point that arises or, at any rate, we are concerned with is, as to whether the retirement order is in confonnity with Rule 2(a) of the C.C.S. (C.C.A.) Rules 1965. The:appeinting } ...... D. D. MEHTA _v._ u.o.I. _(Krishna Iyer,_ _!.)_ 5 5 5 ~ :authority according to Rule 56(j) is the competent authority. Who A ·then, is the appointing authority in the context of this case? The answer is to be sought under Rule 2(a) which reads thus: "In these rules, unless the context otherwise, requires .... ##### • ## 2 (a) appointing authority in relation to a Government servant means (i) the authority empowered to make appointments to the Service of which the Government servant is for the time being a member or to the grade of the Service in which the Government servant is for the time being included, or (ii) the authority, empowered to make appointments t1) the post which the Government servant for the time being holds, or (iii) the authority which appointed the Government servant to such Service, grade or post, as the case may be, or (iv) where the Government servant having been a permanent member of any other service or having substantively held any other permanent post,1 has been in continuous employment of the Government the authority which appointed him to that service or to any grade in that service or to that post. B ###### c D E I whichever authority is the highest authority." The most significant part of the rule states, after setting out alternative authorities, that the appointing authority is one out of these four categories who is the highest. This is emphatically brought out by the p i::xpression "whichever authority is the highest". There is no doubt # that among the four classes of authorities listed under Rule 2(a), the l ·one fallin,g under sub·rule (iii) viz. Comptroller and Auditor general (in the present case) is the highest. It evidently follows-that the order ·of retirement to be legal, must be issued by the Comptroller and Auditor <Jenera!, but actually the irnpugned order of retirement was issued by G the Director of Commercial Audit. In fact the order of retirement runs ithus : "Whereas the Director of Commercial Audit is of the ·.opinion that it is in the public interest to to do so ...... " Obviously the Director of Commercial Audit is a lesser official. The N - (:Onc!usion is, therefore, inescapable that the compulsory retirement is .\ (:ontrary to law. ### - A ###### \B D The appellant has already become suparannuated and therefore, he will be eligible to his salary (by which we mean to include .other allow- _f_ ances automatically admissible and going with salary) for the period ' between the date of compulsory retirement and the date of actual superannuation at the age of 58, It is unfortunate that this legal flaw bas proved fatal. Administrative law is a course necessary for administrative officers at the highest levels so that such flaws may not '1tiate orders they pass. Eventually Government is put to considerable loss for no fault of it except that no proper legal training in this branch of the law for the concerned officers had been given by it. With these observations we allow the appeal, but parties will bear their costs. · V.D.K. _Appeal allowed._ ) 556 SUPREME COURT _REPORTS (1980] 2 S.C.R. The High Court, in its extensive judgment, considered the scheme of the rules and, indeed, referred to the point mentioned above but after highlighting this question as om: most emphasised by the appellant, has slurred over the point and proceeded to discussion of other issues. We are concerned with the vital-perhaps the fatal-aspect of the order which has not received due attention at the hands of the High Court. In this view, on account of the contravel!!ion of F.R 56(j) read with Rule 2(a) of the (C.C.A.), we are constrained to come to the conclusion that f:be retirement is illegal. #### • j