Holding

A final judicial order directing seniority and consequential benefits is binding and must be complied with; the Board cannot rely on statutory provisions to refuse payment, and the appeal is dismissed.

Summary

C. Muddaiah, a former First Division Assistant of the Karnataka Housing Board, challenged the Board's seniority list and obtained a judgment from a Single Judge of the Karnataka High Court directing that his seniority be placed above respondents 2‑34 and that he be granted all consequential benefits. The Board appealed, but the intra‑court appeal and a Special Leave Petition were dismissed, making the High Court order final and binding. The Board later contended that it could not pay the consequential benefits because the Karnataka State Civil Services (Regulation of Promotion, Pay and Pension) Act, 1973 did not envisage such payment and that the dismissal of contempt petitions barred a fresh claim. The Supreme Court held that a final judicial direction must be obeyed irrespective of statutory provisions, that legislative provisions cannot override a binding court order, and that the Board’s refusal amounted to a violation of the rule of law. Consequently, the Court dismissed the Board’s appeal and ordered compliance with the High Court’s directions.

Issues considered

Whether a final judicial order directing seniority and consequential benefits is binding on the employer despite provisions of the Karnataka State Civil Services Act, 1973.
Whether the employer can refuse payment of consequential benefits on the ground that the statutory scheme does not provide for such payment.
Whether a fresh petition for arrears of salary can be filed after contempt petitions have been dismissed.
Whether legislative provisions (e.g., Section 11(2) of the 1973 Act) can override a judicial decree.
Whether non‑compliance with a court order amounts to contempt and violates the rule of law.

Legislation cited

States Reorganisation Act, 1956s. 115

Subjects

senioritypromotionconsequential benefitsservice lawKarnataka State Civil Services Actcontemptrule of lawjudicial directionadministrative law

Judgment

A COMMISSIONER, KARNATAKA HOUSING BOARD
v.
C.MUDDAIAH

SEPTEMBER 7, 2007

B (C.K. THAKKERANDD.K.JAIN,JJ.J

Service Law:

Karnataka State Civil Services (Regulation and Promotion, Pay and
C Pension) Act, 1973:
Seniority and promotion-Seniority list-Challenged by respondent-
employee-Seniority granted and promotion given by the employer with
retrospective effect-Payment of consequential benefits-Denial of-Held:
Incumbent-employee granted seniority over other candidates and other
D consequential benefits in terms of order of the Single Judge of the High
Court, as. affirmed by Division Bench of the High court and also by the
Supreme Court-Thus, order passed by the Single Judge of the High cpurt
aiiained finality and binding between the parties-Employer was under
obligation to comply with the directions in terms of such order-Direction
E to grant consequential benefits consequent upon reassigning seniority to the
incumbent was express and unequivocal-Under the circumstances, it is not
open to employer not to comply with the directions on the ground no such
directions could be issued in terms of provisions under 1973 Act-Once a
direction is issued by a competent Court, it has to be obeyed and implemented
without any reservation-Non-compliance of such order would result in
F ending Rule of Law-Only remedy available to aggrieved party in such
circumstances is to challenge the order by initiating appropriate proceedings
in the Court of Law-But, it cannot be ignored on a spacious plea that no
such directions could have been issued by the Court-Courts generally issue
appropriate directions in terms of the provisions of law but, in the giver.
G circumstances, as in the present case, they could also issue appropriate
directions in the larger interest ofjustice following the principles ofjustice,
equity and good conscience-Administrative Law-Rule of Law-Judgment/
order-Non-compliance-Affect of

Respondent joined as Second Division Assistant in Karnataka Housing
H 784
COMMR.KARNATAKAHOUSINGBOARDv. C.MUDDAIAH 785
Board in the year 1972 and was promoted as First Division Assistant on A
;.(
February 15, 1972. Respondent challenged before the High Court the
seniority list of First Division Assistants as issued by the Board, which was
allowed by a Single Judge of the High Court directing the Board to reassign
seniority to the respondent by placing him above respondent Nos. 2 to 34 and
to grant him 'other consequential benefits'. Writ Appeal filed by the State
was dismissed by the Division Bench of the High Court. Special Leave Petition B
filed by the appellant before this Court was dismissed by the Court. Since
consequential benefits were not extended to him by the Board, he filed a
-~ Contempt Petition, which was dismissed by the High Court. Later, he filed a
contempt petition, which was also dismissed by the High Court. Thereafter, a
substantive petition was filed by him after his retirement from service
contending that arrears of salary to whieh he was entitled, was not paid by
c
the Board. The Single Judge of the High Court dismissed the petition.
Aggrieved, the respondent filed an appeal, which was allowed by the Division
Bench of the High Court. Hence the present appeal.

Appellant-employer contended that it was the case of the respondent that D
the appellant-Board had committed contempt since the order passed by the
High Court had not been complied with; that since the contempt petitions were
dismissed, it is not open to the respondent to contend that there was non-
compliance of the order passed by the Court; that a fresh petition for such
relief was not maintainable; that the Single Judge of the High Court was wholly
justified in dismissing the second petition filed by the respondent in view of
E
dismissal of contempt petitions; and that the Division Bench of the High Court
was in error in setting aside the order of Single Judge allowing the appeal.

Respondent-employee submitted that it was not open to the Board not to
\
pay arrears as accrued to him due to consequential benefits in terms of the F
directions of this Court on the ground that such payment was not envisaged
by law; that once an order is passed by a competent court, it has to be
implemented.

Dismissing the appeal, the Court
G
HELD:l.1. The decision of the Single Judge of the High Court was
challenged by the Board by filing intra court appeal, which was dismissed by
-1... the Division Bench of the High Court. Even Special Leave Petition was
dismissed by this Court and, thus, the order passed by the Single Judge had
become final and binding between the parties. It was, therefore, obligatory on
the Board to implement the directions issued by the Single Judge of the High H
y
786 SUPREME COURT REPORTS [2007) 9 S.C.R

A Court in the writ petition, to reassign seniority to the respondent by placing
him over respondent Nos. 2 to 34 in the petition and also to extend
consequential benefits. [Para 13) (791-C-D)

1.2. In the instant case, express and unequivocal direction was issued
by the Court to grant to the writ-petitioner such other consequential benefits
B that he might get consequent upon the revision of ranking. It was also observed
that such benefits should be paid to him by December 30, 1997 as the
respondent was to retire in February, 1998. The said decision, to reiterate,
has become final and binding. It is, therefore, not open to the appellant-Board
to contend that the respondent is not entitled to such benefits under 1973 Act
and hence no such direction could have been issued by the Court
C · (Para 2~) (795-C-D]

S.R. Bhagwat v. State of Mysore, (1995) 6 SCC 16, relied on.

1.3. When a decision has been rendered by a competent Court, the law
provides a remedy to an aggrieved party. If the appellant-Board thought that
D the writ-petitioner was not entitled to financial benefits as contended before
this Court now and he could be granted such benefits only on 'notional' basis,
it could have challenged the said direction and ought to have obtained an
appropriate order from an appropriate Court. The directions issued by the
Single Judge of the High Court were challenged by the Board, but intra court
appeal as well as Special Leave Petition came to be dismissed. The direction,
E thus remained and in the teeth of such direction, it is not open to the appellant-
Board not to comply with it by contending that it would not grant consequential
benefits as no such direction could be issued in view of 1973 Act.
(Para 25) (795-E-F)

S.R. Bhagwat v. State of Mysore, (1995( 6 SCC 16, relied on.
F
1.4. In spite of clear direction issued by a competent Court, no payment
was made to the respondent and an express order was passed by the Board to ·
the effect that the respondent would not be entitl.ed to pay as he had not worked.
He, therefore, had legitimate grievance against such direction. A fresh
substantive petition, hence, could be filed by him and since he was entitled to
G such relief, the Division Bench of the High Court was justified in granting
the prayer. (Para ~OJ (797-C-D)

2.1. Once a direction is issued by a competent Court, it has to be obeyed
and implemented without any reservation. If an order passed by a Court of
H Law is not complied with or is ignored, there will be an end of Rule of Law. If
COMMR.KARNATAKAHOUSINGBOARDv.C.MUDDAIAH[lHAKKER,J.] 787
a party against whom such order is made has grievance, the only remedy A
available to him is to challenge the order by taking appropriate proceedings
known to law. But it cannot be made ineffective by not complying with the
directions on a specious plea that no such directions could have been issued
by the Court In the judgment, upholding of such argument would result in
chaos and confusion and would seriously affect and impair administration of
justice. [Para 31)-(797-E-F) B
2.2. It is true that while granting a relief in favour of a party, the Court
must consider the relevant provisions of law and issue appropriate directions
keeping in view such provisions. There may, however, be cases where on the
facts and in the circumstances, the Court may issue necessary directions in C
the larger interest of justice keeping in view the principles of justice, equity
and good conscience. [Para 32) [797-G)

2.3. This Court is conscious and mindful that even in absence of statutory
provision, normal rule is 'no work no pay'. In appropriate cases, however, a
Court of Law may, nay must, take into account all the facts in their entirety D ·
and pass an appropriate order in consonance with law. The Court, in a given
case, may hold that the person was willing to work but was illegally and
unlawfully not allowed to do so. The Court may in the circumstances, direct
the Authority to grant him all benefits considering 'as if he had worked'. It,
therefore, cannot be contended as an absolute proposition of law that no
direction of payment of consequential benefits can be granted by a Court of E
Law and U such directions are issued by a Court, the Authority can ignore
them even if they had been finally confirmed by the Apex Court of the country
as has been done in the present case. [Para 32) (798-C-E)

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4108 of2007.
F
From the final Judgment and Order dated 22.03.2005 of the High Court
of Karnataka at Bangalore in Writ Appeal No. 6722 of 2003 (S-RES).

S.K. Kulkarni, M. Gireesh Kumar and Vijay Kumar for the Appellant.

R.S. Hegde, Chandra Prakash, Rahul Tyagi, J.K. Nayyar and P.P. Singh G
for the Respondent.

The Judgment of the Court was delivered by

C.K. THAKKER, J. 1. Leave granted.
H
y
'\

788 SUPREME COURT REPORTS [2007] 9 S.C.R.

A 2. The present appeal is filed by the Commissioner, Karnataka Housing
Board against the judgment and order dated March 22, 2005 passed by the
Division Bench of the High Court of Karnataka, Bangalore in Writ Appeal
No.6722 of 2003. By the impugned order, the Division Bench set aside the
order dated August 4, 2003, passed by a Single Judge of that Court in Writ
Petition No. I 0722 of2000. The Division Bench held that the dismissal of the
B claim of the respondent-employee writ-petitioner by the learned Single Judge
on the ground that contempt petitions filed by him were dismissed was not
legal and in consonance with law. The Division Bench, hence, directed the
appellant-Board to implement the direction issued by the learned Single Judge
in Writ Petition No. 1848of1992 decided on October 27, 1997 in 'letter and
C spirit' and disburse 'all consequential benefits' to which the writ-petitioner was
held entitled.

3. The facts of the case are that the respondent herein (writ-petitioner)
joined service in Karnataka Housing Board ('Board' for short) in the year 1972.
He was appointed as a Second Division Assistant and was promoted as First
D Division Assistant on February 15, 1972. On December 30, 1974, a seniority
Jist of the First Division Assistants was published. The writ-petitioner
challenged the said seniority list by approaching the High Court under Article
226 of the Constitution. The Writ Petition No. 1848 of 1992 was allowed on
October 27, 1997 by a Single Judge of the High Court of Karnataka. The Court
E directed the Board to reassign seniority of the writ-petitioner by placing him
above respondent Nos. 2 to 34 and to grant 'other consequential benefits'.

4. It appears from the record that Writ Appeal filed by the State against
the order passed by the learned Single Judge was dismissed on March 30,
1998 by the Division Bench. Even Special Leave Petition (Civil) No. 5487 of
F 1998 was dismissed by this Court. The order passed by the learned Single
Judge thus became final.

5. It is the case of the Board that the order passed by the Court was
implemented and the writ-petitioner was reassigned seniority above respondent
Nos. 2 to 34 as per the direction of the Court and was also granted
G co11sequential benefits. The grievance of the writ-petitioner, however, was
that he was not granted consequential benefits as awarded to him by the
learned Single Judge and confirmed even by this Court. The writ-petitioner
retired from service on February 28, 1998.

6. Since consequential benefits were not extended to him, the writ-
H
CO--KARNATAKAHOUSINGBOARDv. C.MUDDAIAH[THAKKER,J.] 789

petitioner filed Contempt Petition No. 12of1998 which was dismissed. Similarly, A
another Contempt Petition No. 1134 of 1999 was also dismissed. He, thereafter,
filed a substantive petition, being Writ Petition No. 10722 of2000 contending
that though an order was passed in the writ petition filed by him wherein
directions were issued to reassign him seniority and consequential benefits,
arrears of salary to which he was entitled, was not paid to him. The said action
was clearly illegal, unlawful and not sustainable at Jaw. A prayer was, therefore, B
made that the Board may be directed to extend monetary benefits as per the
judgment rendered in the earlier litigation. The learned Single. Judge, as
observed above, dismissed the petition observing that the Division Bench
disposed of Contempt Petitions observing that the Board had complied with
the directions issued by the learned Single Judge in W.P. 1848 of 1992. C
According to the learned "Single Judge, if it were so, the writ-petitioner could
not contend that he was entitled to monetary benefits from the date he was
denied seniority in the final gradation list of First Division Assistant prepared
and published by the Board. The petition was, therefore, dismissed. Intra
court appeal, however, was allowed by the Division Bench. The Board has
challenged the order passed by the Division Bench of the High Court of D
Karnataka in this Court by filing this appeal.

7. On July 14, 2005, notice was issued by this Court. Counter affidavit
was thereafter filed by the writ-petitioner and matter was ordered to be heard
finally. Accordingly, the matter has been placed before us.
E
8. We have heard learned counsel for the parties.

9. The learned counsel for the appellant-Board contended that the writ-
petitioner had succeeded in earlier litigation. A Single Judge of the High Court
directed the appellant-Board to reconsider the seniority list and reassign F
seniority to the writ-petitioner over respondent Nos. 2 to 34. It is also true
that the Court directed consequential benefits to be extended to the writ-
petitioner. According to the learned counsel, however, the said order had
been complied with and the appellant-Board has paid all consequential benefits
to the writ-petitioner to which he was entitled in law. He also submitted that
it was the case of the writ-petitioner that the order passed by the Court had G
not been complied with and the appellant-Board had committed contempt, but
the contempt petitions were dismissed. In view of the said order, it is not open
to the writ-petitioner to contend that there was non-compliance with the order
passed by the Court. A fresh petition for such relief was not maintainable.
According to the counsel, the learned Single Judge was wholly justified in H
790 SUPREME COURT REPORTS [2007] 9 S.C.R.

A dismissing the petition taking into consideration dismissal of contempt petitions
and in observing that the complaint of the writ-petitioner against non-
compliance with the order of the Court was ill-founded. The Division Bench
was in error in setting aside the said order and in allowing the appeal. He,
therefore, submitted that the present appeal deserves to be allowed by quashing
B the directions issued by the Division Bench and by restoring the order of the
learned Single Judge.

IO. The learned counsel for the respondent-writ-petitioner, on the other
hand, submitted that the Division Bench was wholly right and fully justified
in passing the order in the light of the earlier litigation between the parties.
C He submitted that the case was finally decided, the learned Single Judge
allowed the petition filed by the petitioner and directed the Board to reassign
him the seniority above respondent Nos. 2 to 34 and also to grant consequential
benefits. The said order was challenged by the Board but intra court appeal
as also Special Leave Petition came to be dismissed by the Division Bench
of the High Court and by this Court respectively. The said order thus became
D final and binding on the parties. It was, thereafter, not open to the Board not
to pay consequential benefits on the so-called ground that such payment was
not envisaged by law. Once an order is passed by a competent court, it has
to be implemented. Dismissal of contempt petitions was totally irrelevant. The
learned Single Judge was, therefore, not justified in dismissing the petition
E and the Division Bench was right in setting aside the said order. The present
appeal, therefore, has no substance and deserves to be dismissed.

I I. Having heard learned counsel for the parties and having given
anxious consideration to the rival submissions of the counsel, in our opinion,
the appeal filed by the Board must be dismissed. Certain facts are not in
F dispute. The writ-petitioner was promoted as First Division Assistant iit the
year I 972. Seniority list of First Division Assistants was prepared and
published. The writ-petitioner had grievance against the said list. He, therefore,
challenged the said seniority list and his placement therein. A Single Judge
was satisfied as to the grievance raised by the writ-petitioner and allowed the
petition directing the Board to place the writ-petitioner above respondent
G Nos. 2 to 34 and also to grant consequential benefits.

12. In the operative part of the order, the learned Single Judge stated;
).-.
"Hence, there will be a direction to the 1st respondent to the effect
that the date of seniority to be assigned to respondents Nos.2 to 34
H shall be with effect from 30-12-1974 and below the petitioner. The
COMMR.KARNATAKAHOUSINGBOARDv.C.MUDDAIAH[THAKKER,J.] 791

seniority list of the petitioner and respondents Nos.2 to 34 shall be A
revised accordingly. Necessarily it follows that the petitioner is entitled
to such other consequential benefits that he might earn consequent
upon this revision of ranking. The learned counsel for the petitioner
submits that the petitioner is due to retire by February, 1998. Taking
into account all the circumstances, it is desirable that the lst respondent
awards all the consequential benefits that the petitioner would have B
earned consequent upon this judgment by 30-12-1997. With the above
direction, the writ petition is disposed of".

(emphasis supplied)

13. It is not in dispute that the Board challenged the said decision by C
filing intra court appeal but the appeal was dismissed by the Division Bench ..
Even Special Leave Petition was dismissed by this Court and the order passed
by the learned Single Judge had become final and binding between the
parties. It was, therefore, obligatory on the Board to implement the directions
issued by the learned Single Judge in the writ petition, to reassign seniority D
of the writ-petitioner by placing him over respondent Nos. 2 to 34 in the
petition and also to extend 'consequential benefits'.

14. It is the case of the appellant-Board that all those directions had
been carried out. The writ-petitioner has been reassigned seniority over
respondent Nos. 2 to 34 and he has been awarded consequential benefits. E
When it was contended by the learned counsel for the writ-petitioner that no
arrears of salary had been paid, the learned counsel for the Board did not
dispute the fact. He, however, relied upon statutory provisions. He also
referred to a decision of this Court in S.R. Bhagwat v. State ofMysore, [1995]
6 SCC 16. The counsel for the writ-petitioner also placed reliance on that
decision. It is, therefore, necessary to consider the said decision and the law F
laid down therein by this Court.

15. In S.R. Bhagwat, certain Deputy Conservator of Forests were serving
in the former States of Bombay and Hyderabad. Pursuant to reorganization
of States, they were allotted to the new State of Mysore under Section 115 G
of the States Reorganisation Act, 1956. Under the 1956 Act, the Central
Government issued certain directions for equation of posts and promotions
on the basis of provisional inter-State seniority lists subject to the revision
of such promotions in accordance with the ranking in the f:nal seniority list.
The petitioners claimed certain benefits which were not granted. They, therefore,
approached the High Court of Mysore. The claim was finally allowed and a H
792 SUPREME COURT REPORTS [2007] 9 S.C.R

A direction was issued by the Court to grant all consequential benefits to the
petitioners. The State of Mysore thereupon enacted an Act known as the
Kamataka State Civil Services (Regulation of Promotion, Pay and Pension)
Act, 1973 (hereinafter referred to as 'the Act'). By the said Act, the actual
financial benefits directed to be made available to the petitioners pursuant to
the order passed by the Division Bench of the High Court, which had become
B final, were sought to be taken away. The petitioners, in the circumstances,
approached this Court by filing a substantive petition under Article 32 of the
ConstitUtion challenging constitutional validity and vires of the Act to the
extent they had affected the petitioners.

C 16. After hearing the parties, this Court allowed the petition, struck
down certain provisions of the Act as ultra vires the legislative power of the
State and directed the Authorities to comply with the directions contained in
the binding decision of the Division Bench in favour of the petitioners by
granting 'all consequential financial benefits' within the stipulated period.

D 17. In that case also, it was contended by the State that the petitioners
were not entitled to consequential benefits in view of legislative provision );
and overriding effect under Section 11 of the Act. The Court, however,
negatived the contention. It observed that it is open to a competent Legislature
to remove a defect in a legislation. Such enactment or validating statute could
not be held unconstitutional or ultra vires. But it is equally well settled that
E a binding judicial pronouncement between the parties cannot be made
ineffective or inoperative with the aid of legislative power by making a
provision which, in substance and in reality, overrides and overrules a decision
rendered by competent Court. Such process virtually renders a judicial decision
ineffective by indirectly exercising appellate power over a judicial forum which
p is impermissible.

18. The Court stated:

"It is now well settled by a catena of decisions of this Court that a
binding judicial pronouncement between the parties cannot be made
ineffective with the aid of any legislative power by enacting a provision
G
which in substance over-rules such judgment and is not in the realm
of a legislative enactment which displaces the basis of foundation of
the judgment and uniformly applies to a class of persons concerned
with the entire subject sought to be covered by such an enactment
having retrospective effect".
H
COMMR.KARNATAKAHOUSINGBOARDv. C.MUDDAIAH[THAKKER,J.] 793

I 9. Considering the overriding effect of Section I I of the Act, the Court A
observed:

"A mere look at sub-section (2) of Section I I shows that the respondent,
State of Kamataka, which was a party to the decision of the Division
Bench of the High Court against it had tried to get out of the binding
effect of the decision by resorting to its legislative power. The B
judgments, decrees and orders of any court or the competent authority
which had become final against the State were sought to be done
away with by enacting the impugned provisions of sub-section (2) of
Section I I. Such an attempt cannot be said to. be a permissible
legislative exercise. Section l I(2), therefore, must be held to be an C
attempt on the part of the State Legislature to legislatively over-rule
binding decisions of competent courts against the State. It is no
doubt true that if any decision was rendered against the State of
Kamataka which was pending in appeal and had not become final it
could rely upon the relevant provisions of the Act which were given
retrospective effect by sub-section (2) of Section I of the Act for D
whatever such reliance was worth. But when such a decision had
become final as in the present case when the High Court clearly
directed respondent-State to give to the concerned petitioners deemed
dates of promotions if they were otherwise found fit and in that
eventuality to give all benefit consequential thereon including financial E
benefits, the State could not invoke its legislative power to displace
such a judgment. Once this decision had become final and the State
of Karnataka had not thought it fit to challenge it before this Court
presumably because in identical other matters this Court had upheld
other decisions of the Karnataka High Court taking the same view, it
passes one's comprehension how the legislative power can be pressed F
in service to undo the binding effects of such mandamus. It is also
pertinent to note that not only sub-section (2) of Section 11 seeks to
bypass and over-ride the binding effect of the judgments but also
seeks to empower the State to review such judgments and orders and
pass fresh orders in acco:dance with provisions of the impugned Act.
The respondent-State in the present case by enacting sub-section (2) G
of Section I I of the impugned Act has clearly sought to nullify or
abrogate the binding decision of the High Court and has encroached
upon the judicial power entrusted to the various authorities
functioning under the relevant statutes and the Constitution. Such
an exercise of legislative power cannot be countenanced H
794 SUPREME COURT REPORTS [2007] 9 S.C.R.

A (emphasis supplied)

20. The Court, therefore, held that the provisions of sub-section (2) of
Section 11 which interfered with the judgment of a competent Court was
unconstitutional, ultra vires and void.

B 21. As to Section 4 of the Act, which provided certain benefits to
employees only on 'notional basis', the Court held that it would not apply to
the petitioners.

22. The Court stated:

c "We, therefore, strike down Section 11 sub-section (2) as
unconstitutional, illegal and void. So far as the underlined impugned
portions of Section 4, sub-sections (2), (3) and (8) are concerned, they
clearly conflict with the binding direction issued by the Division
Bench of the High Court against the respondent-State and in favour
of the petitioners. Once respondent-State had suffered the mandamus
D to give consequential financial benefits to the allottees like the
petitioners on the basis of the deemed promotions such binding
direction about payment of consequential monetary benefits cannot
be nullified by the impugned provisions of Section 4. Therefore, the
underlined portions of sub-sections· (2), (3) and (8) of Section 4 will
E have to be read down in the light of orders of the court which have
become final against the respondent-State and in so far as these
provisions are inconsistent with these final orders containing such
directions of judicial authorities and tompetent courts, these impugned
provisions of Section 4 have to give way and to the extent of such
inconsistency must be treated .to be inoperative and ineffective.
F Accordingly the aforesaid provisions are read down by observing
that the statutory provisions contained in sub-sections (2), (3) and
(8) of Section 4 providing· that su~h person who have been giVen
deemed promotions shall not be. entitled to any arrears for the
period prior to the date of their f!Ctual promotion, shall not apply
in cases where directions to the contrary of competent courts against
G
the respondent-State have become final".

(emphasis supplied) >--
23. The learned counsel for the appellant-Board strenuously urged that
H in S.R. Bhagwat, this Court struck down sub-section (2) of Section 11, but did
COMMRKARNATAKAHOUSINGBOARDv.C.MUDDAIAH[lHAKKER,J.] 795

not hold Section 4 unconstitutional or ultra vires. The Court held that on the A
facts and in the circumstances of the case, the said provision did not apply
to the petitioners in view of the direction issued by the Court and the
petitioners were held entitled to consequential benefits. But the ratio laid
down in the said decision would help the appellant-Board. The Division
Bench, in the light of S.R. Bhagwat, could not have issued direction as to
payment to be made to the writ-petitioner. B
24. We are unable to uphold the argument. In our judgment, the
submission of the learned counsel for the writ-petitioner is well-founded that
in the instant case also, express and unequivocal direction was issued by the
Court to grant to the writ-petitioner "such other consequential benefits that C
he might get consequent upon the revision of ranking": It was also observed
that such benefits should be paid to him by December 30, 1997 as the writ-
petitioner was to retire in February, 1998. The said decision, to reiterate, has
become final and binding. It is, therefore, not open to the appellant-Board to
contend that the respondent is not entitled to such benefits under 1973 Act
and hence no such direction could have been issued by the Court. D
25. As observed in S.R. Bhagwat, when a decision has been rendered
by a competent Court, the law provides a remedy to an aggrieved party. If
the appellant-Board thought that the writ-petitioner was not entitled to financial
benefits as contended before us now and he could be granted such benefits
only on 'notional' basis, it could have challenged the said direction and ought E
to have obtained an appropriate order from an appropriate Court. In the case
on hand, the directions issued by the learned Single Judge were challenged
by the Board, but intra court appeal as well as Special Leave Petition came
to be dismissed. The direction, thus remained and in the teeth of such
direction, it is not open to the appellant-Board not to comply with it by F
contending that it would not grant consequential benefits as no such direction
could be issued in view of 1973 Act.

26. In our opinion, the contention that no fresh petition could be filed
by the respondent-writ petitioner in 2000 has also no substance. So far as
contempt petitions are concerned, the Court held that the order passed by the G
Court had been complied with and it could not be said that the Board or its
Officers were liable to be punished. An Office Memorandum dated February
2, 1998 is on record. It refers to a decision of the High Court dated October
27, 1997 in Writ Petition No. 1848of1992 and states as to how the direction
of the Court has been complied with. The relevant part of the said order reads
H
796 SUPREME COURT REPORTS [2007] 9 S.C.R.

A thus: \'
~

"Accordingly, the promotion of Sri C. Muddaiah, be worked out with
reference to the promotion accorded to Sri K. Srinath and the
consequential benefit be allowed to Sri C. Muddaiah, as per the
Judgment referred to above". (emphasis supplied)
B
27. From the above order, it is clear that promotion of the writ petitioner
was ordered to be worked out with reference to the promotion accorded to
Shri K. Srinath and the 'consequential benefits' be allowed to the writ-petitioner
as per the judgment referred to in the writ petition.

C 28. But our attention was also invited by the learned counsel for the
writ-petitioner to a subsequent order dated June 1, 1998. The Preamble of the
order refers to the decision in the writ petition and direction of the Court to
place the writ-petitioner above respondent Nos. 2 to 34 and to grant him
consequential benefits.

D 29. It then proceeds to state:

"In view of the facts explained in the preamble I, P.B. Mahishi, Housing
Commissioner, Kamataka Housing Board, order that Sri C. Muddaiah
is deemed to have been promoted as Superintendent from the cadre
ofF.D.A's with effect from 22-03-1984 i.e. the date from which Sri K.
E Srinath was so promoted. I further order that Sri C. Muddaiah is
deemed to have been promoted as Assistant Revenue Officer from the
cadre of Superintendent with effect from 12.06.1985 i.e: the date. on
which his junior was so promoted. He is deemed to have been posted
as Assistant Revenue Officer with effect from 27.10.1997, the date on
F which the Hon'ble High Court of Kamataka rendered its judgment in
W.P. No. 1848 of 1992. I also order that Sri C. Muddaiah be paid
arrears of pay and allowance for the period from 27.10.1997 to 28.2.1998
the date on which he retired from service on attaining the age of
superannuation presuming that he has worked as Assistant Revenue
Officer during the said period even though he had actually not worked
G in that capacity. Sri C. Muddaiah will not be eligible for arrears of
pay and allowance for any earlier period since he has not actually
worked in the cadre of Superintendents and Assistant Revenue
Officers, in view of the provisions of Karnataka State Civil Services
(Regulation of Pay, Promotion and Pension) Act, 1973. A statement
showing the pay fixation allowed in favour of Sri C. Muddaiah
H
COMMR.KARNATAKAHOUSINGBOARDv.C.MUDDAIAH[IHAKKER,J.] 797

consequent on the above orders is enclosed herewith. On the basis A
of the revised pay fixation order enclosed Sri C. Muddaiah will also
be entitled for pension, gratuity and family pension etc."

(emphasis supplied)

30. Bare reading of the above order makes it more than clear that the B
salary to be paid to the writ petitioner was from October 27, 1997 to February
28, 1998. It was expressly stated that the writ-petitioner would not be entitled
to arrears of pay and allowances for any earlier period "since he has not
actually worked in the cadre of Superintendents and Assistant Revenue
Officers". It is thus obvious that in spite of clear direction issued by a C
competent Court, no. payment was made and an express order was passed to
the effect that the writ-petitioner would not be entitled to pay as he had not
worked. The writ-petitioner, therefore, had legitimate grievance against such
direction. A fresh substantive petition, hence, could be filed by him and since
he was entitled to such relief, the Division Bench was justified in granting the
prayer. D
31. We are of the considered opinion that once a direction is issued by
··"- a competent Court, it has to be obeyed and implemented without any
reservation. If an order passed by a Court of Law is not complied with or is
ignored, there will be an end of Rule of Law. If a party against whom such
order is made has grievance, the only remedy available to him is to challenge E
the order by taking appropriate proceedings known to law. But it cannot be
made ineffective by not complying with the directions on a specious plea that
no such directions could have been issued by the Court. In our judgment,
upholding of such argument would result in chaos and confusion and would
seriously affect and impair administration of justice. The argument of the F
Board, therefore, has no force and must be rejected.

32. The matter can be looked at from another angle also. It is true that
while granting a relief in favour of a party, the Court must consider the
relevant provisions of law and issue appropriate directions keeping in view
such provisions. There may, however, be cases where on the facts and in the G
circumstances, the Court may issue necessary directions in the larger interest
of justice keeping in view the principles of justice, equity and good conscience.
Take a case, where ex facie injustice has been meted out to an employee. In
spite of the fact that he is entitled to certain benefits, they had not been given
to him. His representations have been illegally and unjustifiably turned down. H
798 SUPREME COURT REPORTS [2007] 9 S.C.R.

A He finally approaches a Court of Law. The Court is convinced that gross
injustice has been done to him and he was wrongfully, unfairly and with
oblique motive deprived of those benefits. The Court, in the circumstances,
directs the Authority to extend all benefits which he would have obtained had
he not been illegally deprived of them. Is it open to the Authorities in such
B case to urge that as he has not worked (but held to be illegally deprived), he
would not be granted the benefits? Upholding of such plea would amount to
allowing a party to take undue advantage of his own wrong. It wouid perpetrate
injustice rather than doing justice to the person wronged. We are conscious
and mindful that even in absence of statutory provision, normal rule is 'no
work no pay'. In appropriate cases, however, a Court of Law may, nay must,
C take into account all the facts in their entirety and pass an appropriate order
in consonance with law. The Court, in a given case, may hold that the person
was willing to work but was illegally and unlawfully not allowed to do so. The
Court may in the circumstances, direct the Authority to grant him all benefits
considering 'as if he had worked'. It, therefore, cannot be contended as an
D absolute proposition of law that no direction of payment of consequential
benefits can be granted by a Court of Law and if such directions are issued
by a Court, the Authority can ignore them even if they had been finally
confirmed by the Apex Court of the country (as has been done in the present >-
case}. The bald contention of the appellant-Board, therefore, has no substance
and must be rejected.
E
33. For th.e foregoing reasons, we see no ground to interfere with the
order passed by the Division Bench of the High Court. The appeal deserves
to be dismissed and is accordingly dismissed with costs which is quantified
as Rs.10,000/-. The appellant-Board shall comply with the directions within
twelve weeks from today.
F .+
S.K.S. Appeal dismissed.

,. !