High CourtDivision BenchAppeal Allowed; High Court Reversed; Compulsory...

State of Tamil Nadu & ORS. v. M. N. Sundarajan

Case / Petition Number:Civil Appeal No. 1743 of 1980
Neutral Citation:1981 SCR (1) 471

Case Details & Bench

Court
High Court
Hon'ble Judges
  • R. S. Sarkaria
  • R. S. Pathak
Judgment Date
1980-08-19
Court Decision / Holding
Appeal allowed; High Court order quashed; Government’s order upholding compulsory retirement of Sundarajan is upheld; costs payable by each party.
Final Disposition
Appeal Allowed; High Court Reversed; Compulsory Retirement Upheld

Parties to the Case

Appellants / Petitioners

  • State of Tamil Nadu & ors.

Respondents

  • M. N. Sundarajan

Legal Representation & Advocates

Counsels for Petitioners

  • • K. Parasaran, Solicitor General; A. V. Rangam

Counsels for Respondents

  • • V. Srinivasan; Chandrasekaran; A. T. M. Sampath

Case Synopsis & Summary

This is a Supreme Court appeal concerning whether the power to appoint includes the power to terminate an appointment by compulsory retirement. Before 1973, a Section Officer was non-Gazetted; GO 1616 (13 June 1973) elevated the post to Gazetted status, and GO 1782 (27 June 1973) stated that in matters of appointments, transfers, postings, punishments and pay, such officers would be treated as non-Gazetted until further orders. Sundarajan, promoted to Section Officer in 1969, was compulsorily retired under Fundamental Rule 56(d) in 1976. The High Court quashed the retirement on the ground that the Review Committee, which recommended retirement, was not headed by the Chief Secretary as required by GO 761 (19 March 1973). The State contended that GO 1782’s reference to “appointments” includes retirements, and that the Committee’s head being a Departmental Secretary was valid; it was further argued that even if the Committee’s composition was irregular, its recommendations did not void the Government’s ultimate decision. The Court ultimately held that (i) the power to appoint includes the power to terminate by compulsory retirement under the General Clauses Act; (ii) Review Committee recommendations are advisory and cannot vitiate the Government’s decision; (iii) the Government’s power remains intact despite procedural irregularities. The appeal was allowed and the High Court’s order set aside, upholding the retirement with costs.

Provisions of Law Cited

Fundamental Rule 56(d)General Clauses Act, Section 16Article 226 (Constitution of India)Constitution of India (Art. 14)G.O. No. 761, 19 March 1973G.O. No. 1782, 27 June 1973G.O. Ms No. 1616, Public (Services-J)Public (Services) – Government Orders relating to Secretariat service rules

Legal Doctrines & Maxims

  • Power to appoint includes power to terminate (including by compulsory retirement) as an incident to the power of appointment (General Clauses Act, Section 16)
  • Decisions of Review Committee are advisory and have no proprio vigore; ultimate power to decide rests with Government
  • Non-differential treatment under Article 14 when reviewing multiple officers is insufficient to create grievance

Submissions & Arguments

Contentions of Appellants / Petitioners

The Government Order No. 1782 includes the term 'appointments' to cover retirements; since Section Officers, though Gazetted, were held to be non-Gazetted for certain procedural matters, the Review Committee headed by a Departmental Secretary was valid to review Sundarajan’s case; once appointed, the power to terminate by retirement follows from the power of appointment under the General Clauses Act.

Contentions of Respondents

The word 'appointments' cannot be construed to include retirements or terminations; GO 1782 did not intend to cover compulsory retirement; a restrictive interpretation is proper; irregularities in the Review Committee do not automatically vitiate the retirement order; the government retains ultimate power; Article 14 is not violated since no differential treatment occurred.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
The Jawahar Mills' caseW.P. 1547 of 1977OverruledThe High Court relied on this decision; the Supreme Court’s reasoning in the present case undermines the Jawahar Mills approach on Review Committee validity and retirement review, effectively limiting that prior stance.
Manager Govt. Branch Press & Anr. v. D. B. Belliappa—PositiveCited as authority supporting the interpretation that 'appointments' can include retirement and related actions.
State of Uttar Pradesh v. Chandra Mohan Nigam & Ors.—PositiveCited in support of the broader interpretation of 'appointments' including retirement terms.

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Extracted Judgment Text

Exact text extracted from official judgment records.

. 471 STATE OF TAMIL NADU & ORS. _v._ M. N. SUNDARAJAN _August_ 19, 1980 (R. S. SARKARIA AND R. S. PATHAK, JJ.J _Civil_ _Services-A_ _power_ _to_ _appoint whether includes the power to termiMte_ _the appointment by compulsory retirement._ _Fundamental Rules, F.R. 56(d)-Compulsory retirement_ _of_ _Section Officer_ _in_ _State Secretariat-G._ _0._ _providing that Review Committee_ _be_ _headed by Chief_ _Secretary-Departmental Secretary heading Committee-'Decision'_ _of_ _Committee_ _-Validity_ _of._ . Before June 27, 1973, a Section Officer in the Tamil Nadu Secretariat used to be a non-Gazetted Officer. The Government by Order G. 0. Ms. No. 1616, Public (Services J) dated June 13, 1973 made the post of a Superintendent of the Secretariat a Gazetted post and re-designated it as Section Officer, and by Government Order No. 1782, Public (Services-J.), dated June 27, 1973, provided that _ill_ _all matters relating to appointments, transfers, postings punishments and_ _drawal_ _of pay, they continued to be treated_ _as_ _non-gazetted Government servants_ _until further orders._ The respondent was recruited as a Clerk in the Indian Army in the year 1943 ·and after demobilization was appointed in the Revenue Secretariat of the State Government (Appellant) from March 1948. He was promoted as Section Officer in April 1969 and he continued in the post till March 2, 1976 when he was compulsorily retired from service under Fundamental Rule 56(d). The respondent challenged his compulsory retirement in the High Court contending that the procedure set out in G.O. No. 761 dated March 19, 1973, envisaged that the Review Committee that had to consider the cases of Gazetted Government Officers in· the Secretariat should be headed by the Chief Secretary and not by the Departmental Secretary and since the Committee which reviewed his case was headed by a Departmental Secretary, the violation had vitiated the retirement order. The High Court. accepted this contention and quashed the retirement order. In the appeal to this Court it was contended on behalf of the appellant . that though under G. 0. No. 1782 Public (Service-I) dated June 27, 1973, all Superintendents or Section Officers were given the status of Gazetted Officers in matters like appointments, transfer and posting they continued to be treated as non-gazetted officers and that the constitution of the Review Committee headed by a Departmental Secretary was valid. It was also contended that in the aforesaid Order, the word 'appointments' includes compulsory 'retirements', also. #### ·c F G On the respondent's behalf it was submitted that the word 'appointments' ffi, in the order dated Ju~e 27, 1973 cannot be construed to include 'retirements' from or 'terminations' of service, for if that. had been the intention there would have been no difficulty in adding the word 'retirements' or 'terminations' along B ### c D E F G 472 SUPREME COURT REPORTS [19811 1 S.C.R. with the words 'appointments, transfers, postings and p~nishments' in the Government Order and consequently a restricted interpretation should be. placed on this expression. Allowing the appeal, HELD : _1._ The order of the High Court is set aside and the order of the respondent's compulsory retirement upheld. [475 HJ 2. Unless a contrary intention appears from the context, a power to appoimt should include a power to terminate the appointment including termination by compulsory retirement in accordance with the terms and conditions of service. This fundamental principle underlies Section 16 of the General Clauses Act. [474 H-475 A] 3. The power to terminate the appointment by compulso1y retirement or otherwise is a necessary adjunct of the power of appointment ~nd is exercised as an incident to or consequences of that power. Nothing in the Government Order No. 1782, dated June 27, 1973, militates against this rule of construction. [475 B] 4. The "decision' of the Review Committee had no force _proprio_ _vigore._ The 'decisions' were mere recommendations which did not, and could not, have a peremptory effect. The ultimate power to accept or not to accept the _re-_ commendations of the Review Committee and to take an effective and definitive decision vests in the Government. Even if there was some irregularity in the constitution of the Review Committee, that could not by itself, have the effect of vitiating the order of the respondent's compulsory retirement. [475 E-F] In the instant case it was not the respondent alone (from the category ' of Section Officers) whose case was reviewed by the Review Committee in questi•)n. The cases of .all the Section Officers of _the_ Secretariat, were reviewed hy the same committee. The respondent had therefore not been singled out for a differential treatment. [475 G] CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1743 of 1980. Appeal by Special Leave from the Judgment and Order dated 24-4-1979 of the Madras High Court in W.P. No. 886/77. _K._ _Parasaran,_ Solicitor General and _A._ _V._ _Rangam_ for the Appellant. _V._ _Srinivasan, Chandrasekaran_ and _A._ _T. M. Sampath_ for the R<'spondent. The Judgment of the Court was delivered by SARKARTA, J.-Special leave to appeal granted. The respondent herein, M. N. Sundarajan was recruited as a Clerk in the Indian Army in the year 1943. Sometime after the regiment was demobilised, he was appointed in the Revenue Secretariat of the State Government from March, 1948 in a vacancy reserved for war sr-rvice candidates. He was promoted as Section Officer in April. 1969 H · and he continued in the post till March 2, 1976, when he was compul sorily retired from service by the appellant-State in exercise of its power under Fundamental Rule 56(d). TAMIL NADU _V._ M. N. SUNDARAJAN _(Sarkaria,_ J.) 473 The respondent challenged the validity of the order of his compulsory retirement by a writ petition under Article 226 of the Constitution in the High Court of Madras. One of the grounds of challenge was that as per procedure set out in G.0. No. 761, d.ated March 19, 1973, the Review Commrttee has to consider the cases of Gazetted Government Officers in the Secretariat headed by the Chief Secretary and not by the Departmental Secretary; and that, therefore, the order passed by the appellant-State based on the review made by a Committee which had no jurisdiction, cannot be sustained in law. Following a previous decision in W.P. 1547 of 1977 _(The Jawahar_ _Mills'_ case), the High Court held that since the Committee which reviewed the respondent's case was not a Committee duly constituted under G.O. No. 761, dated March 19, 1973, and had not been presided over by the Chief Secretary, there was a violation of the procedure laid down by the Government in G.O. No. 761, dated March 19, 1973, :ind, this violation had vitiated the impugned order passed by the Governmenc In the result, the writ petition was allowed and the impugned order was quashed. Hence, this appeal by special leave. The main contention of the learned Solicitor-General who has appeared on behalf of the appellant-State, is that the High Court has not correctly appreciated the import of the relevant Government Orders. It is submitted that under Government Order No. 1782. Public (Services-I), dated June 27, 1973, all Superintendents or Section Officers were given ·the status of Gazetted Officers with effect from June 13, 1973, "but, in all matters relating _to_ _appointments,_ transfers, postings. punishments and drawal of pay," they continued to be treated as non-Gazetted Government servants "until further orders." That was why, the case of the respondent pursuant to the aforesaid Government Order of June 27, 1973, for compulsory retirement under Fundamental Rule 56(d), was considered by the appropriate Committee constituted for non-Gazetted Government servants in the Secretariat. In the aforesaid Government Order, dated June 27, 1973, the word 'appointments', according to the learned Solicitor-General includes compulsory 'retirements', also. In support of his contention, he has referred to the decisions of this Court in _Manager Govt. Branch Press_ _&_ _Anr._ v. _D. B. Belliappa(_ _[1]_ _);_ _and State_ _of_ _Uttar Pradesh_ v. _Chandra_ _Mohan Nigam_ _&_ _Ors.(2)._ A ### c D E F G On the other hand. Shri Srinivasan, appearing for the respondent,. submits that the word 'appointments' in: the G.O. No. 1782. dated June U (I) [1979] 2 S.C.R. 458. (~) [1978] 1 S.C.R. 521. A. B. .. 474 SUPREME COURT REPORTS [198ll 1 S.C.R. 27, 1973, cannot be construed to include 'retirements' from or 'terminations' of service. If that had been .the intention, it is argued, there was no difficulty in adding the word 'retirements' or 'terminations' along with the words "appointments, transfers, postings and punishments" in that Government Order. It is urged that a restricted interpretation should be placed on this expression. Thus, the short question that falls to be considered is : Wa~ the High Court right in quashing the order of the respondent's compulsory retirement, who was a Gazetted Officer at the material time, merely on the ground that it was considered by a Review Committee other than the one constituted for Gazetted Officers ? ## _c_ For the sake of perspective, it is necessary to recall that before June 27, 1973, a Section Officer in the Tamil Nadu Secretariat used to 'be a non-Gazetted Officer. In 1972 and earlier, several representations - were made by the Tamil Nadu Secretariat Associations and others that the Superintendents of the Secretariat should be accorded Gazetted status. Ultimately, the Government by Order, G.0. Ms. No. 1616, D Public (Services-J), dated June 13, 1973, made the post of a Superintendent of the Secretariat a Gazetted post with effect from the date of that Order. Such Superintendents were re-designated as Section Officers. In the aforesaid G.O., it was stated that the amendment to the said Rule should be issued shortly. Since the framing of the Rules E. involved lot of administrative complications and unavoidable delay, the Government took a policy decision that in regard to various procedures concerning such newly designated Section Officers, the Rules under which they were functioning earlier, namely, Rules applicable to non-Gazetted Government servants should continue to apply till D # Jl . . F G such time as Service Rules are made with a view to avoid administrative dislocation. This decision was the subject of Government Order No. 1782, Public (Services-J), dated June 27, 1973. The net effect of this Order was that although the Superintendents were given a Gazetted status and their designations were changed into Section Officers with effect from June 13, 1973 ; _but in all matters_ _re/(JJfing_ _to_ _appointments, transfers, postings, punishments and drawal_ _of_ _pay, they_ _continued to be treated as non-Gazetted Government servants until_ _further orders._ The question· is, whether the expression "appointments" used in this Government Order, dated June 13,. 1973. will include 'termination' of service or 'compulsory retirement' from service, also. It is a H fundamental principle of interpretation that unless a contrary intention appears from the context, a power to appoint should include a power to terminate the appointment, including termination of the person TAMIL NADU _v._ M. N. SUNDARAJAN _(Sarkaria,_ _**J.)**_ 4 7,5 appointed by his compulsorily retirement in accordance with the terms and conditions of his service. This fundamental principle underlies Section 16 of the General Clauses Act. In other words, the power to terminate the appointment by compulsory retirement or otherwise is a neces_sary adjunct of the power of appointment and is exercised as an incident to or consequences of the power. There is nothing in the Government Order No. 1782, dated June 27, 1973, which militates against this rule of construction. The above being the true construction of the word 'appointments' in the aforesaid Government Order of June 27, 1973, notwithstanding the conferment of Gazetted status, the respondent continued to be governed, _inter alia,_ in the matter of 'appointment', which would include compulsory retirement or termi!nation of service also, by the Rules and Government Orders applicable to non-Gazetted Officers of the Secretariat, and therefore, the Review Committee presided over by a Departmental Secretary, set up for reviewing the cases of nonGazetted Officers of the Secretariat, was fully competent to consider the case of the respondent and recommend his retirement. Assuming that there was some irregularity in the constitution of the Review Committee, which dealt with the case of the respondent, that could not affect the validity of the impunged Orders. The "decisions" of the Review Committee had no force _proprio vigore._ At best. the 'decisions' were mere recommendations which did not, and could not, have a ·peremptory effect. The ultimate power to accept or not to accept the recommendations of the Review Committee and to take an effective and definitive decision in the matter, vested in the Government. Thus, even if there was some irregularity in the constitution of the Review 'Committee, the functions of which were purely advisory, that could not by itself have the effect of vitiating the order of the respondent's compulsory retirement, passed by the Government in the exercise of the power vested in it. Furthermore, it was not the respondent alone (from the category of 'section Officers) whose case was reviewed by the Review Committee in question. The cases of all the Section Officers of the Secretariat, were reviewed by the same Committee. It could not, therefore, be contended that the respondent had been singled out for a differential treatment. Article 14 of the Constitution was not attracted and the respondent could not have any grievance on that score. For the foregoing reasons, we allow this appeal, set aside _the order **A** **B** ### **c** **D** **E** **F** **G** -of the High Court, and uphold the order of the respondent's compulsory **H** retirement. The parties shall pay and bear their own costs. **-N.V.K.** _Appeal allowed._