Holding

The Supreme Court held that the High Court was empowered under Article 226 to direct the CAG to apply the Office Memorandum’s relaxation, that the Memorandum is valid, and that the CAG’s ad‑hoc grace‑marks were arbitrary and violative of Article 335, ordering a uniform 25‑mark relaxation for all future examinations.

Summary

The respondents, two Scheduled Caste auditors, failed to meet the aggregate qualifying marks in the Part II Subordinate Accounts Service examination of December 1980 and sought a writ of mandamus directing the Comptroller and Auditor General (CAG) to apply the relaxation prescribed in Office Memorandum No. 36021/10/76 dated 21 January 1977. The Madras High Court Division Bench allowed the writ, directing the CAG to grant suitable relaxation, but the CAG appealed to the Supreme Court. The Supreme Court held that the High Court was within its jurisdiction under Article 226 to direct a public authority to exercise its discretion properly, and that the Office Memorandum was a valid policy requiring a pre‑fixed relaxed standard for SC/ST candidates. It found the CAG’s ad‑hoc grace‑marks scheme arbitrary, violative of Article 335, and ordered a uniform relaxation of 25 marks for all future examinations, confirming the High Court’s decision but substituting the specific relief. The appeal was dismissed.

Issues considered

The scope of Article 226: can a High Court issue a writ of mandamus directing a public authority to fix a relaxed qualifying standard for SC/ST candidates?
Whether the Office Memorandum dated 21 January 1977, prescribing relaxation of standards for Scheduled Castes and Scheduled Tribes, is constitutionally valid and binding on the CAG.
Whether the relaxation must be fixed in advance and notified to candidates, and whether the CAG’s post‑result grace‑marks constitute an unlawful exercise of discretion.
Whether the CAG’s method of granting relaxation infringed Article 335 by compromising efficiency of the service.
Whether the Supreme Court should prescribe a uniform relaxation for all subsequent Subordinate Accounts Service examinations.

Legislation cited

Comptroller and Auditor General's Manual of Standing Orders (Administrative)s. Paragraph 195, s. Paragraph 197, s. Paragraph 198, s. Paragraph 199, s. Paragraph 207, s. Paragraph 234, s. Paragraph 282
Constitution of Indias. Article 142, s. Article 148, s. Article 16(1), s. Article 16(4), s. Article 226, s. Article 335, s. Article 46

Subjects

Article 226mandamusreservationScheduled CastesScheduled Tribesrelaxation of standardspromotion examinationsefficiency of serviceConstitutional lawpublic authority discretionComptroller and Auditor GeneralSubordinate Accounts Serviceequality of opportunityDirective PrinciplesArticle 335Article 16(4)

Judgment

17

A
<XMP'l'ROU.Ell AND AUDITOR. GENERAL OF INDIA,
GIAN PlWCASB, NEW IJELIII & ANR.
v.
K.S. JAGANRATHAN & ARL

APRIL 1 , 1986 B

[R.S. PATHAK, A.P. SEN AND D.P. MADON, JJ.]

-
...,:.

-~
Constitution of India :

Article 226 - Powers of Court - Writ of MandaDUs -
Issuance of - To direct Government/public authority to c
~ exercise its discretion in a particular manner.
"
Articles 16( 4), 46 and 335 - Qualifying examinations
for promotion - Relaxation of standards in the case of
Scheduled Caste/Tribe candidates - Validity/permissibility of
~ Whether to be consistent with efficiency of service. D

-~ The Comptroller and Auditor General's Manual of Standing
Orders (Adudnistrative), Volume I, Chapter V, paras 195, 197,
198, 199 & 207 - Subordinate Accounts Service Examinations
(Ordinary) - Relaxation of standard for Scheduled Caste/Tribe
candidates - Whether violates Ministry of Home Affairs Office E
Memorandum dated January 21, 1977 -Relaxation- Determination
·~· of in advance - Notification before the examination -
Necessity of.

~ Statutory interpretation - Welfare Legislation
Necessity for being construed in the light of constitutional F
provisions guaranteeing protection.

Practice and Procedure - Passing of orders and giving
directions to compel performance in a proper and lawful manner
of discretion conferred upon Government/public authority -
-4-<' Co~etency of High Court. G

Civil Services - Members of Scheduled Castes/Tribes -
Relaxation of standards in qualifying examinations for
prOtootion - Determination in advance - Notification before
examination - Necessity for.
H
18 SUPREME COURT REPORTS [1986] 2 S.C.R.

Office Memorandum No. 36021/10/76-Estt. (SCT) dated·~-
A

January 21, 1977 issued by the Department of Personnel and •
Administrative Reforms to all Ministeries and Departments,
required that if a sufficient number of Scheduled Caste and
Scheduled Tribe candidates were not available in the
qualifying examinations on the basis of the general standard,
B to fill all the vacancies reserved for them in the promotional
posts suitable relaxation in the qualifying standard be made }.
in their case, bearing in mind ( 1) the number of vacancies
reserved, (2) the performance of the Scheduled Caste and
Scheduled Tribe candidates as well as the general candidates ~
in that examination, (3) the miniDI.liD standard of fitness for. -
c appointment to the post, and also (4) the overall strength o[._
the cadre and that of the Scheduled Castes and Scheduled
Tribes in that cadre, the extent of relaxation to be deter- A
mined on each occasion having regard to the relevant factors. ~

The respondents, who belong to the Scheduled Castes,
D were working as Selection Grade Auditors in the Department of
Indian Audit and Accounts, appeared for Part II Subordinate
Accounts Service (S.A.S.) Examdnation (Ordinary) in December, ~'
1980 for the next promtional post of Section Officer. The
total aggregate of all the papers was 500 marks. Candidates ~
were required to obtain the minimum of 40 per cent .marks in
E the individual subject and 45 per cent in the aggregate. The
first respondent secured 213 marks (42.6%) and the second 204 ~
marks (40.8%), but failed to reach the aggregate requirement
of 225 marks. The Department gave a general relaxation of 5
'"f
grace marks in the aggregate, inclusive of 5 marks in one or
mre subjects, to all the candidates. As against that the llf
F Scheduled Caste and Scheduled Tribe candidates were given 8~
grace marks in the aggregate inclusive of 5 grace marks in onl~
or more subjects, which could be of no avail to the
respondents.

The respondents filed a petition under Art. 226 for a
G direction to the appellants to make suitable relaxation in the
qualifying standard of marks for Part II of the S.A. S. t
Examination held in December 1980 in terms of the aforesaid 'r
Office Meoorandum and to declare them as having passed the
said exam!nat ion.

H
COMPTROLLER & AUDITOR GENERAL v. JAGANNATHAN 19

A
That writ petition was dismissed but the writ appeal was
allowed by a Division Bench holding that the authorities
concerned had not applied their mind to the actual state of
affairs that existed, in fixing the relaxation which negatived
the benefit that lawfully would have gone to the Scheduled
Caste and Scheduled Tribe candidates, and directed the B
appellants to grant suitable relaxation to the respondents as
envisaged in the Office Memorandum dated January 21, 1977 and
to consider whether they had qualified in Part II of the said
examination.
- In this appeal by special leave it was contended for the
appellants that a Division Bench of a High Court could not c
issue a writ of JMDd.81WJS to direct a public authority to
exercise its discretion in a particular manner, that fixing a
relaxed or lower standard in advance for a qualifying exami-
nation was not permissible in law, that the authorities could
not give relaxation to Schedu],.ed Caste and Scheduled Tribe
candidates in such manner as to impair the efficiency of the 0
service, and that the relaxation could be made provided the
candidates belonging to Scheduled Castes and Scheduled Tribes
were found fit for promotion.

Dismissing the appeal, the Court,
E
HELD : 1. The High Courts exercising jurisdiction under
Article 226 of the Constitution have the power to issue a writ
of IMDCiaa•s or a writ in the nature of wnd8J118 or to pass
orders and give necessary directions where the government or a
public authority has failed to exercise or has wrongly
exercised the discretion conferred upon it by a statute or a F
rule or a policy decision of the government or has exercised
such discretion mala fide or on irrelevant considerations or
by ignoring the relevant considerations and materials or in
such a manner as to frustrate the object of conferring
discretion or the policy for implementing which such
discretion has been conferred. In all such cases and any other G
fit and proper case the High Court can compel the performance
in a proper and lawful manner of the discretion so conferred
and in a proper case in order to prevent injustice resulting
to the concerned parties, the Court may itself pass an order
or give directions, which the government or the public
H
20 SUPREME COURT REPORTS . [1986] 2 S.C.R.

A i •
· authority should· have passed or given had it properly
lawfully exercised its discretion. [39 A-D]

In the instant case, what the Division Bench did was to
issue directions to appellants in the exercise of . its
jurisdiction under·Art. 226 of the Constitution. [36H; 37A]
I.

B .
·- INarkanatb, Hindu Undivided Family v.
Ic.c:ome Tax
Officer,- Special Circle, Kanpu.r & !Dr., [1965] 3 s.c.R. 536,
540; BochtiefnGanw>n-v. State of Orissa & Ors., [1976] 1
S.C.R•. 667~ 676; Mayor of Rochester v. Regina, [1858] E.B. &.
E. 1024, 1032, 1034; The King v. The Revising Barrister for
c the Borougb of Hanley, (1912) 3 K.B. 518, 528-9, 531; Padfield
and Ors. v. Minister of Agrlmlture, Fisheries and Food & 't
Ors., [1968] A.C. 997 and Balsbnry's Law's of England, 4th
Edition.(Vol. I, Para·89) referred to.

2. 1By reason of the provisions of Art. 16(4) of the
D Constitution a treatment· to the members of the Scheduled
Castes and Scheduled Tribes . different from that given to
others in matters relating to employment or appointment to any
office under the State does:not violate the fundamental right
to equality of opportunity for all citizens in such matters
guaranteed by Art. 16(1). The reservation in favour of back-
E ward classes of ·citizens, including the members of the ~
Scheduled' Castes and Scheduled Tribes, as contemplated by Art.
16(4), ·ean be made not merely in respect of initial recruit-
ment but- also in respect of posts to which promotions are_ to
be made. [40 C-E]
·- , State of Punjab v. Hiralal & Ors., [1971] 3 S.C.R. 267;
: F ., and 'A!thi 1 Eharatiya Soshit Xaramcllari Sangh (Railway) v. Union >(
of India & Ors., [1981] 1 s.c.c. 246 referred to.'·
3.1 The Office Memorandum dated January 21, 1977 is not
intended only for the Department /
· of the . Comptroller and
Audito~neral of India. ·It also applies to all Ministries
..
and Departments. The. discretion conferred by it is to be
G exercised in the discharge of constitutional duty imposed by
..._Art.· 335 in keeping with the Directive Principles laid down in ,.
Art. 46, for its object is to provide an adequate opportunity --r-;
1

of/ promtion . to the members of the Scheduled Castes and t:.
Scheduled Tribes. [55 D; 39 E; G; 40 B]

H· State of Kerala & Anr. v. N.K. Thomas & Ors., [1976] 1 -
S.C.R. 906 referred to.
COMPTROLLER & AUDITOR GENERAL v. JAGANNATHAN 21

A
I~J 3. 2 The Office Memrandum neither provides a general
relaxation for all examinations nor is the relaxation to be
t
!
made under it unguided or not based on any principle. On the
contrary, it expressly provides that the extent of relaxation
should be decided on each occasion whenever such examination
is held by taking into account all relevant fa.ctors, including B
those spec~fically set out therein. [45 D-E]
3.3 It postulates two qualifying standards, one a
general qualifying standard for all candidates appearing in·
the departmental co.mpetitive examinations for proootion and in
departmental confirmation examinations, and the other a
relaxed or lower qualifying standard for the candidates c
belonging to the Scheduled Castes and Scheduled. Tribes in
~respect of each examination, so that if a _sufficient number
of candidates belonging to these Castes and Tribes do not
qualify according to· the general standard • they can be
considered for promotion in the light of the relaxed or lower
qualifying standard' where there are a number of vacancies in D
the posts falling in the reserved quota and not enough
candidates belonging to these Caates and Tribes to fill such
vacanices according to the general qualifying standard. When
these two qualifying ~tandards. are fixed 'the dlf.ference
between the general qualifying standard and the relaxed or
~ lower qualifying-standard will form the zone of consideration E
when the result of each examination is ascertained according
to the general qualifying standard. The relaxed or lower
...
I
qualifying standard is the minicum upto which the discretion
under the said office memorandum could be exercised. The
fixation of the relaxed or lower qualifying.standard, however,
could not be construed to mean that all those who qualify F.
~ according to that standard are to l:)e promted. How many are to
be promted mst depend upon the number of vacancies which
remain unfilled on the basis of the ·general qualifying
standard. [41 D-E; 42 B-D; G; ~3 D-El/
4. The candidates who appear for departmental G
competitive .exam?nations· for promotion and departmental
confirmation ev.Jninations know in advance the general
qualifying standjrd because such standard is prescribed. It is
but in consonance with reason and logic that the relaxed or
lower qualifying standard should also be fixed in advance and
cade known so that the candidates belonging to the ·Scheduled
22 SUPREME COURT REPORTS [1986] 2 S.C.R.

A
Chast~-~~ Sichedul~whd Tribes willh k~ before they a?peiar ffor (-
t e ~A4l.il.l.nat on to _ at extent t ey can. expect re 1axa.t on or
themselves on the basis of the. criteria set out in the office
oemorandum. [42 H; 43 A, 44 C, ~3 B; 44 C)

5. It is not open to the appellants in the instant case
B . to assail the eligibility of the respondents for promotion in
view . of . the requisite certificate under para 207 of the
Comptroller and· Auditor General's Manual of Standing Orders
(Administrative), Volume I, Chapter V, having been given to
them by the concerned Accountant General/Head of Office With
due responsibility and not as a matter of form, that they were '
c regular in attendance, energetic, of good moral character and '
business like habits and not likely to be disqualified for
appointment to the Subordinate Accounts Service as not
possessing the aptitude for the work of a holder of a post in
that .service' and that they had a reasonable prospect of .
.

passing Ithe .examdnation.
- .
Unless some event -had occurred
D between the date of the giving of the certificate and final
declaration of results, which could disqualify a candidate
from discharging the duties of a post in the S.A.S., he is to
be considered fit for promotion subject only to the condition
that he. passes the examination.· [SSF, 33G-H; 34A, SSB-c]
E 6.1 Public good and public interest both_ require that
the administration of the Government and the functioning of
its Services should be carried out properly arid efficiently.
Article 335 of the Constitution, which provides for the claims
of the members of the Scheduled Castes and Scheduled Tribes to
be ta~en into consideration in the making of appointments to
F services and posts in connection with the affairs of the Union
or of a State, itself requires that this should be done ~
consistently with the maintenance of efficiency of
administration. [54 E-F]
/

6.2 The question- of impairment of efficiency of the
G Subordinate Accounts Service in the instant case, however,
--does not arise~ The respondents were selec-\ted as candidates
for the said examination by the Accountant\ General/Head of
. . Office under para 199 of the Manual, the ess~ntial condition.
of such selection being that the candidates so\selected
. \
would,
if qualified by examination, be likely to be efficient in all
H the duties of the S.A.S. It is, therefore, n~t open to the
appellants to take a contrary stand. [54 F; SS'A; F-Gl
COMPTROLLER &AUDITOR GENERAL v. JAG~~ATHAN 23

A
~. 7. The entire procedure followed in the case of S.A.S.
Examination ·held in December 1980 by the Department of
Comptroller and Auditor-General of India in respect of the
Schedu~ed Caste and Scheduled Tribe·candidates was completely
contrary to what was required to be done , under the office
memrandum dated January 21, 1977. No relaxed or lower B
standard for the. candidates belonging to these Castes and
'ry/Tribes was fixed in advance of the examination. The relaxation
by way of grace marks given after the results were ascertained
on the basis of the gene~al qualifying.btandard was without
proper application of mind and without taking the relevant
~ factors into consideration. In the proposals submitte_d for
moderation of results and award of grace marks no attempt.had c
been made to focus the attention of the Comptroller and
~Auditor-General on the actual state of affairs that existed,
J

the total number of vacancies reserved and the overall
strength of the Scheduled Castes and Scheduled Tribes in that
cadre. It was, therefore, violative of Art. 335 of .the
Constitution and accordingly bad in law. [55 G - 56 B] D.
,
8. Where two alternative interpretations of a statute
are· possible and the department . prefers one of them, its
action cannot be said to be unreasonable •. However, what has
happened in the instant case is that while two Departments of
the Government have taken one view the Department of the E
·-,.. Cot1ptroller and Auditor-General has ·taken a contrary view,
which is neither warranted nor tenable. The interpretation to
be placed upon the said Office Memorandum must be in keeping·
~ with Arts. 16(4), 46 and 335 of the Constitution. [48 C-D]

V.V. Iyer v. ..Jasjlt Singh; ·· .AIR 1973 S.C. 194 p
·~distinguished.

In order to do complete justice to all concerned, as
required by Art. 142 of the Constitution, it was directed that
there shall be a relaxation of 25 marks in all for candidates
belonging to the Scheduled Castes and Scheduled Tribes for G
Part Ii of the Subordinate Accounts Service Examinations
~(Ordinary) held in December 1980 and subsequent thereto by the
· ' Office of Comptroller and Auditor-General of India. The
respondents and all other candidates similarly situated, who
would pass the said examinations as a result of the aforesaid
relaxation, shall be declared to have passed such examinations H
\
\
24 I
I SUPREME COURT REPORTS [1986] 2 s.c.R.
!
A
and to have been promoted to the Subordinate Accounts Service t-
of the said Department in the vacancies reserved for the
members of the Scheduled Castes- and Scheduled Tribes with
effect from the date when the final declaration of the results
of each such examination was made.' They will not, however,
rank in seniority above those who have already passed and have
B been promoted, but will be placed in the seniority list after
all those : who have passed in · Part II of the S.A.S. '(·
Examinations (Ordinary) held so · far, ranking inter !!:_
according to the rules relating to oeniority. Relaxed or l~er
standard for future examinations·shall be fixed in advance and
notified to the candidates. [57 A; C-H; 58 A-B) .,'
c
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2952 of
1984. (

From the _Judgment and- Order qated 12.1.1984 of the
Madras High Court in W.A. No. 409 of 1982.
D
M.S. Gujral, R.N. Poddar,---Dalveer Bhandari and P.P.
Singh for the Appellants.

Respondent-in-person, V.A. Bobde. · (Amicus .Curiae) for
the Respondents.
E ' .
The Judgment of the Court was delivered by
-
MADON, J. : This Appeal filed by Special Leave granted
by this· Court. under Article 136 of the Constitution is ~
directed against the judgment of a Division Bench of the
F Madras High Court in Writ Appeal No. 409 of 1982 and raises a
que3tion of importance to the members of the Scheduled Castes ~
and the Scheduled Tribes working in the Department of Indian
Audit ·and Accounts who seek proi:ootion to the Subordinate
Accounts Service. : /

G The Respondents belong to the Scheduled Castes •and are
. working as Selection Grade Auditors · in the Department of
- · ·-Indian Audit and Accounts at Madras. The next promotio~l post ~
. for them is that of Section Officer in the same Department and ·
in order to obtain such promotion. Selection Grade Auditors
are required to pass the Subordinate Accounts Service
H
COMPTROLLER & AUDITOR GENERAL v. JAGANNATHAN [MADON, J. ] 25
A
---.{ Examination (hereinafter referred to as "the SAS Examina-
"" tion"). The SAS Examination consists of two parts, namely,
Part I and Pa'rt II. Both the Respondents have passed the Part
I Examination held in December 1979. They appeared for the
Part II Examination in December 1980. Both of them secured the B
minimum number of marks in each individual subject which was
40 per cent and in some papers more than the mdnimum number of
-:- ·,. ~ marks but failed to secure the aggregate minimum which was 45
·r percent. The First Respondent secured 42.4 per cent and the
j) Second Respondent 40.8 per cent.
A The Respondents thereupon filed a peti.tion under Article c
(_ 226 of the Constitution, being Writ Petition No. 10706 of
1981, in the Madras High Court praying for a writ of mandants
} directing the Comptroller and Auditor-General of India and the
Accountant General-I, Madras - the Appellants before us - to
make in accordance with the instructions contained in the
Office Memorandum No. 36021/10/76-Estt.(SCT) dated January 21, D
1977, issued by the Department of Personnel & Administrative
Reforms to all Ministries etc. suitable relaxation for the
~ Respondents in the qualifying standard of marks for Part II of
the SAS Examination held in December 1980 and to declare them
~ -~ as having passed the said examination. The said writ petition
· was dismissed with no order as to costs by a learned Single E
Judge of the High Court. The Respondents thereupon filed the
~ aforesaid Writ Appeal No. 409 of 1982 which was allowed by a
Division Bench of the High Court directing the Appellants to
·~ give suitable relaxation to the Respondents within two months
· from the date of its judgment and to consider whether the
~ Respondents had qualified themselves in Part II of th~J SAS
F
·) Examination held in December 1980 and further. directing the
\Appellants, while granting such relaxation, to bear in mind
the observations made by it in its judgment as also the
criteria envisaged in the said Office Memorandum dated January
21, 1977, The Division Bench made no order with respect to the
costs of the Appeal. G
4 . The Respondents were represented by advocates at the
\' hearing of ·the writ petition but the~ appeared before the
Division Bench in person. They are also not represented at the
hearing of this Appeal but with a view to ensut'e that no
injustice may result to the Respondents by reason of their not
H
having legal assistance, we requested Mr. V.A. Bobde,
26 SUPREME COURT REPORTS [19861 2 s.c.a.
A
Advocate, to appear as amicus curiae, and the Court is greatly-~-
beholden to Mr. Bobde for the assistance which he has rendered ~
to the Court and the labour and industry which he has put in
order to enable him to do so.

Before examining the judgment under appeal and the
B correctness of the submissions advanced at the Bar, it is
necessary to refer to certain provisions of the Constitution, ?
the relevant Office Memoranda and the Standing Orders bearing
upon the subject.

The Constitution of India has made certain provisions ,.
c with a view to undo the wrong and to right the injustice done~,
to the members of the Scheduled Castes and the Scheduled ·
Tribes for centuries. Article 335 of the Constitution provides~
that the claims of the members of the Scheduled Castes and the
Scheduled Tribes should be taken into consideration,
consistently with the maintenance of efficiency of administra-
D tion, in the making of appointments to services and posts in
connection with the affairs of the Union or of a State.
Article 46, which occurs in Part IV containing the Directive
Principles of State Policy, provides that the State shall
promote with special care the educational and economic ~
interests of the weaker sections of the people, and, in ~
E particular, of the Scheduled Castes and the Scheduled Tribes,
and shall protect them from social injustice and all forms of
exploitation. Article 16 which embodies the Fundamental Right
of all citizens to equality of opportunity in matters relating
to employment or appointment to any off ice under · the State, ~
makes an-exception in clause (4). Clause (4) is as follows :
F
"(4) Nothing in this article shall prevent the/~
State from making any provision for the reservation
of appointments or posts in favour of any backward
class of citizens which, in the opinion of the
State, is not adequately represented in the
G services under the State."
~

The said Office Memorandum dated January 21, 1977, ·..,-
referred to above, provides as follows :

"Subject :- Relaxation of standards in the case of
H Scheduled Caste/Tribe candidates in qualifying
COMPTROLLER & AUDITOR GENERAL v. JAGANNATHAN [MADON, J.] 27

__ j A
\ examinations for promotion to the higher grade on
the basis of seniority subject to fitness.

The undersigned is directed to refer to this Department's
Office Memorandum No. 8/12/69-Estt.(SCT), dated 23rd December,
1970 in which it has been provided that in promotions made B
through departmental competitive examinations and in
-~ departmental confirmation examinations, if sufficient number
of Scheduled Caste/Scheduled Tribe candidates are not
available on the basis of the general standard -to fill the
...-:. vacancies reserved for them, candidates belonging to these
_~ coDIIllnities who have not acquired the general qualifying
-~standard should also be considered for promotion/confirmation c
provided they are not found unfit for such
~promotion/confirmation. A question has been raised whether
relaxation in qualifying standards should be granted to
Scheduled Castes and Scheduled Tribes candidates, on the same
basis, in promtions on the basis of seniority subject to
fitness, where fitness is decided on the basis of qualifying D
examination. The matter has been carefully considered and it
..: has now been decided that in proootions made on the basis
of seniority subject to fitness in which there is reservation
-~ for Scheduled Castes and Scheduled Tribes in accordance with
this Department's Office Memorandum No. 27/2/71-Estt. (SCT),
dated the 27th November, 1972, and where a qualifying examina- E
tion is held to determine the fitness of candidates for such
~ promotion, suitable relaxation in the qualifying standard in
such examinations should be made in the case of Scheduled
{- Caste/Scheduled Tribe candidates. The extent of relaxation
~ should, however, be decided on each occasion whenever such an
-.examination is held taking into account all relevant factors F
.,including (i) the number of vacancies reserved, (ii) the
performance of Scheduled Caste/Scheduled Tribe candidates as
well as general candidates in that examination, (iii) the
minimum standard of fitness for appointment to the post, and
also (iv) the overall strength of the cadre and that of the
Scheduled Castes and Scheduled Tribes in that cadre." G·

The Office Memorandum dated December 23, 1970, referred
to in the said Office Memrandum dated January 21, 1977,
provides as follows :
H
28 SUPREME COURT REPORTS [1986] 2 s.c.R.

A
"Subject :- Relaxation of standards in favour o~
Scheduled Castes/Scheduled Tribes candidates in
departmental competitive examinations for promotion ~
and in departmental confirmation examinations.

Attention of the Ministry of Finance etc. is invited to
B Ministry of Home Affairs O.M.No. 1/1/70-Est. (SCT) dated the
25th July, 1970, in which it has been provided that in the>-
case of direct recruitment, whether by examdnation or
othe~ise, if sufficient number of Scheduled Castes/Scheduled
Tribes candidates are not available on the basis of the ...._
general standard to fill all the vacancies reserved for them, ~
c candidates belonging to these communities may be selected t~
fill up the remaining vacancies reserved for them provided ·
they are not found unfit for appointment to such post or. . .
posts. A question has been raised whether relaxations in the
qualifying standards could be granted to Scheduled
Castes!Sched1Jled Tribes candidates on the same basis in
0 promotion made through departmental competitive examinations
and in departmental
.. confirmation examinations where such
examinations are prescribed to determine the suitability of •
candidates for confirmation. The matter has been carefully
considered and it has been decided that in· promotions/~ -
confirmations made through such examinations, Scheduled
E Castes/Scheduled Tribes candidates who have not acquired the
., general qualifying standard in such examinations could also be
considered for promotions/confirmations provided they are not ~
found unfit for such promotions/confirmations. In other words.
the qualifying standards in these examinations could be relax-+
ed in favour of Scheduled Castes/Scheduled Tribes candidates ~
F in keeping with the above criterion."
'
The Office Memorandum dated November 27. 1972, referred
to in the said Office Memorandum dated January 21, 1~77, inter
alia provides as follows :

G "Subject :- Reservations for Scheduled Castes and
Scheduled Tribes in posts filled by promotion - ~
Pro100tions on the basis of seniority subject to';
fitness.

The undersigned i.e directed to refer to para 2-c of the
H Ministry of Home Affairs O.M. No. 1/12/67-Ests.(C) dated the
C<JtPTROLLER & AUDITOR GENERAL v. JAGANNATHAN [MADON, J. J 29
A
-~
'11th July 1%8 aecording to which there is no reservation for
~ Scheduled Castes and Scheduled Tribes in appointments made by
promotion on the basis of seniority subject to fitness,
although cases involving supersession of Scheduled Castes and
Sch&duled Tribes officers in Class I and Class II appointments
are required to be submitted for prior approval to the B.
Minister or Deputy Minister concerned and cases of superses-
Jsion in Class III and Class IV appointments have to be report-
ed within a month to the Minister or Deputy Minister concerned
for information.

"'"' 2. The policy in regard to reservations for Scheduled
4bastes and Scheduled Tribes officers in posts filled by c
promotion on the basis of seniority subject to fitness has now
~en revi~ed and it has been decided, in supersession of the
orders contained in the aforesaid para 2-c of the O.M. dated
lttb July, 1968, that there will be- reservation at 15% ior
Seheduled Castes ·and 7-1/2% f-or Scheduled Tribes in promtions
.ade on the ~asis of seniority subject to fitness, in D
appointments to all Class I, Class II, Class III and Class IV
• posts in grades or services in which the element of direct
recruitment, if any, does not exceed 50 per cent."
-~
In this connection it will 8e useful also to refer to
Ministry of Home Affairs Office Mea>randum No.lf../17 /67-Estt. E
~ (C) dated Pebruary 8, 1968. The said Office Memorandum deals
with reservations for the members of the Scheduled Castes and
!he Scheduled Tribes in services and with the minimum
~tandards in exaadnations for recruitment. The relevant para-
~ graph of the said Office Memrandum is as follows :
F
'l. "4. In the ca8e of direct recruitment through a
qualifyi~ examination a minimum standard is
generally fixed and candidates attain!~ that
standard ·are placed on the select list for
appointment against vacancies occurring from time
to time. In such cases, therefore, a lower minimum G
qualifying standard should be fixed for candidates
~longi~ to-Scheduled Castes and Scheduled Tribes,
taking into ac-count the minillllm standard necessary
for maintenance of efficiency of administration. If

H
30 SUPREME COURT REPORTS [1986] 2 S.C. R.
A
t-
the minillllm qualifying standard for general'
candidates is reviewed at a later date, the lower ~
minimum qualifying standard applicable to Scheduled
castes and Scheduled Tribes should be revierwed."

B Under Article 148 (S) of the Constitution, subject to the
provisions of the Constitution and of any law made by .
Parliament, the conditions of service of persons serving in;.
the Indian Audit and Accounts Department and the
administrative powers of the Comptroller and Auditor-General
are to be such as may be prescribed by rules made by the ~
c President after consultation with the Comptroller and Auditor-\ ~
General. The Comptroller and Auditor-General's Manual of,,
Standing Orders (Administrative), Volume I, contains the
provisions applying to the organization and control of th~
Indian Audit and Accounts Department, the Indian Audit and
Accounts Service, the ~ubordinate Accounts Service, clerical
0 staff of the. Department, Divisional Accountants and other
cognate matters. Chapter. VII of the said ·.Manual deals with
• I

Divisional Accountants. Under paragraph 314, Divisional
Accountants constitute a separate cadre. Paragraph 318 makes •
it a specific condition of the appointment of a Divisional
Accountant that he is liable for service anywhere within the ~
E jurisdiction of the Accountant General concerned including his
own office. Under paragraph 335, the cadre of Divisional
Accountants in each office has a selection grade with effect ~
from January 1, 1961. Divisional Accountants promoted to the
selection grade are normally to be entrusted with charges~
which are heavier, more important and responsible than those·
F entrusted to other Divisional Accountants. The Respondents ""'
belong to this grade. Under paragraph 336 members of the Divi~~--
sional Accountants' cadre are eligible for promotion to the__
Subordinate Accounts Service (hereinafter referred to as "the
SAS.") subject to the conditions governing appointments in that
service 'set out in Chapter V of the said Manual and necessary
G faciiities are to be afforded to them by utilizing the provi-
sions of paragraph 318 and posting from time to time a select-
ed number of Divisional Accountants to work in the Audit ...,.....•
Office. ,

Chapter V of. the said Manual deals with the SAS.
H Paragraph 176 provides that the SAS is a Central Subordinate
Service under the rule-making control of the President acting
31
A
-~ in consultation with the Comptroller and Auditor-General
constituted for the subordinate supervision of the working of
~ the Indian Audit and Accounts Departaent. It is divided into
several branches. Under paragraph 178, appointamts to the SAS
are to be lllde by the Accountants General, etc., partly by
confirmation of eligible apprentices and SAS Accountants on B
probation but llflinly by promotion of the eligible clerks in
~ the offices and the Divisional Accountants under their control
\

subj act always to the condition taat .the elielble ,ersons are
aleo qualified in the opinion of the appointing authority by
~ ability, character and experience to discharge adequately and
-- t efficiently the duties required of the incumbent of a post in
the SAS. Under paragraph 180, no person who has not passed the
departmental examdnation prescribed in Section II of Chapter V
c
)._ is to be eligible for appointment to the SAS. Paragraph 184
, deals with seniority in the SAS cadre. Under it, subject to
the conditions prescribed in paragraphs 178 and 180, a clerk
or a Divisional Accountant who passes the SAS Examination in
an earlier examination will have precedence in appointment to D
the SAS over a person·who passes in a later examination. As
-~ amongst persons who pass in the same examination, the one
senior in the clerical cadre will have a prior claim for such
~t appointment. Further, when the date of completely passing the
SAS Examination is the same, the seniority is to be determined
according to the year of recruitment. Paragraph 187 provides E
that appointment to the SAS is departmental promotion for
~ purposes of the orders governing reservation of vacancies in
favour of the members of the Scheduled Castes and the
l Scheduled Tribes, but in so far as appointment is also made
<# from eligible SAS Apprentices and SAS Accountants on
-L_probation, the appointing authority is to pay due regard to F
111 the proper and adequate representation of these communities in
the SAS. Under paragraph 210, no candidate is to be allowed to
take the SAS Examination of any branch other than that of the
branch which is appropriate to the establishment in which he
is seNing. The said paragraph further sets out tlte exaaina-
tions which are regarded as appropriate to the meabers of the G
• establishment working in different branches. The appropriate
.....( examination for those working in Civil and Audit Accounts
Offices is SAS (Ordinary) Examination.

As the Respondents were working as Auditors in the office
H
of the Accountant-General, Madras, the appropriate examination
for them was the SAS Examination (Ordinary).
32 SUPREME COURT REPORTS [19861 2 s.c.R.
A

Paragraph 195 provides that the departmental examination ~-
qualifying for appointment to the SAS is divided into two
parts and an examination in both the parts will be normally
held once a year for all Audit and Accounts Offices in all
branches on notified dates. The relevant provisions of
B paragraphs 197 and 198 are as follows :

"197. Subject to the various instructions issued by >-.
the Comptroller and Auditor General from time to
time, and also subject to his final approval, the
Accountants General/Heads of Offices may permit the
c candidates in their offices to appear in the
appropriate branch of the S.A.S. Examination_,._
provided they are otherwise eligible to take the
Examination. The names and other particulars of ""'
the candidates perm.i tted to take the Examination
should be sent to the Comptroller and Auditor
D General by the 15th August each year in Form No. 8
which should not be larger than double foolscap
size. Th.a Accountants General and other Heads of
the Offices should see that the particulars noted
therein are correct especially in regard to the
number of chances a candidate has already availed ;..
E of, the age and the exe~tion marks obtained by the
candidates. To ensure correctness , the Heads of
Offices should get the particulars in the statement
checked by an Accountant and an Officer other than
those who are responsible for its preparation••••• "
+
F "198. The selection of candidates for the S.A.S. •
Examination :!.s primarily the responsibility of the '1.--
Head of the Off ice who may be aided by an Advisory ,. ,
Commdttee in the discharge of this responsibility.
The composition and strength of the Committee will
be determined by the Head of the Office and the
G Co~ttee itself will be an advisory body only, the
final selection resting with the Head of Office
himself. The preliminary selection should be made t
as early as possible after the results of the last ~
S.A.S. Examination are circulated so that intending
candidates may start their preparation with the
H practical certainty that they will be permitted to
take up the Examination•••• "
COMPTROLLER & AUDITOR GENERAL v. JAGANNA.THAN [MADON, J. ] 33

-~Paragraph 199 provides as follows: A

"199. The essential condition which shall govern
the selection by the Accountant General or other
Heads of Offices is that the c.andidate selected
shall, if qualified by examination, be likely to be
efficient in all the duties of the Subordinate B
Accounts Service."

Paragraph 207 provides as follows:

"207. Candidates satisfying the <~ondttions set out
in paragraphs 199 to 201 are eligible, but have no
claim to appear for the examination. The Heads of c
Offices should certify at the foot of the statement
required in paragraph 197 with due res}i)onsibility
and not as a matter of form, that the candidates
recoDJDended are regular in attendance, energetic,
of good moral character and business-like habits,
are not likely to be disqualified for appointment D
to the Subordinate Accounts Service as not
possessing the aptitude for the work of a holder of
a post in the Subordinate Accounts Service and that
they have a reasonable prospect of passing the
examination."
E
~-
Under paragraph 201, a candidate who has not passed Part I of
the SAS Examination, is not to be allowed to take Part II of
i· the SAS Examination. The Respondents were permitted to appear
• for Part I of the SAS Examination and had passed in that part •
.,_'-' They were also permitted to appear for Part II of the SAS
· ',Examination. Taking this fact into account in conjunction F
with the provisions of paragraphs 197,198,199 and 207, it is
clear that the Respondents were in the! opinion of the
concerned Accountant General or Head of Office qualified by
ability, character and experience to discharge adequately and
efficiently the duties required of the incumbent of a post in
~ th~ SAS as required by paragraph 178 and that if qualified by
G
~ examination, they were likely to be efficient in all the
duties of the SAS as prescribed by paragraph 199. Obviously,
they _had been given a certificate under paragraph 207, given
with due responsibility and not as a matter of form, by the
Head of Office certifying that the Respondents were regular in
H
34 SUPREME COURT REPORTS [1986] 2 S.C.R.
A
attendance, energetic, of good moral character and ~ --
business-like habits and not likely to be disqualified for
appointment to the SAS as not possessing the aptitude for the
work of a holder of a post in the SAS and had a reasonable
prospect of passing the SAS Exaudnation.
B
Under paragraph 234., the number of marks required to
secure a pass in each branch is 40 per cent in each subject ~.
and 45 per cent in the aggregate.

Sub-paragraphs (a)(i),(ii),(iv) and (vi) of paragraph 282
provide as follows :
c
"282. (a)(i) There will be reservation at 12-1/2%'-"--
and 5% of the vacancies for Scheduled Castes and A
Scheduled Tribes respectively in promtions made
(i) by selection (ii) on the results of competitive
D
examination limited to departmental candidates, in
or to class III and IV posts, grades or services in
which the element of direct recruitment, if any,
does not exceed 50%.

(ii) Lists of Scheduled Castes and Scheduled Tribes }-
E
Officers should be drawn up separately to fill the
reserved vacancies. Officers belonging to these
classes should be adjudged separately and not along
with other officers and if they are suitable for .,_
promotion, they should be included in the list
irrespective of their merit as compared to others. ~
Promotions against reserved vacancies shall, .,.
F
however, be subject to the candidates satisfying _.·
the prescribed minimum standards. ~

X X X X X X X X X X

(iv) If candidates from Scheduled Castes and
G
Scheduled Tribes obtain, on the basis of their
positions in the aforesaid general select list, ~
less vacancies than are reserved for them, the )-
difference should be made up by such of those
selected candidates who are in the separate select
lists fo~ Scheduled Castes and Scheduled Tribes
H
respectively.
COMPTROLLER & AUDITOR GENERAL v. JAGANNATHAN [MADON, J.] 35
A
X X X X X X X X X X

(vi) If owing to non-availability of suitable
candidates belonging to Scheduled Castes/Scheduled
Tribes, it becomes necessary to dereserve a
B
reserved vacancy, the proposals for de-reservation
should be sent to the Ministry of Home Affairs
through the Comptroller & Auditor General,
indicating whether claims of Scheduled Castes and
Scheduled Tribes candidates eligible for promotion
in reserved vacancies have been considered in the
manner prescribed in the preceding sub-paragraphs.
j

.~ When de-reservations are agreed to by the Ministry c
the reserved vacancies can be filed by other
candidates subject to the reservation being carried
forward to two subsequent years."

X X X X X X X X X X
D

The reservation of 12-1/2 per cent and 5 per cent mentioned
in paragraph 282(a)(i) has been subsequently increased to 15
per cent and 7-1/2 per cent.

The learned Single Judge held that the Respondents had
not challenged the validity of the instructions contained in E
the said Office Memorandum dated January 21, 1977, and,
therefore, the only question which fell for consideration was
i- whether those instructions had been carried out. He held that
.. the extent of relaxation in the case of the Scheduled Castes
and the Scheduled Tribes candidates would have to be decided
---. every time an examination was held. He referred to an un-
reported decision of the Orissa High Court in Subodh Chandra
F

Das and another v. Collptroller and Auditor. General of lDdf.a
and others, O.J.C. 73S·of 1970 decided by R.N. Misra and K.B.
·Panda, JJ., on September 12, 1973 in which a general relaxa-
tion to the extent of three per cent in the aggregate and two
per cent in two papers given to the Scheduled Castes and the G
Scheduled Tribes candidates with effect from the examination
held in November 1961 was struck down and to the fact that
the Petition for Special Leave to Appeal against the said
judgment was dismissed by this Court. The learned Single
Judge accepted the statement made in the counter affidavit
H
filed on behalf of the Appellants that necessary and suitable
36 SUPREME COURT REPORTS [19861 2 s.c.R.
A

' relaxation had ~een made ··in favour of the Respondents after ~
taking into account the various factors contained in the said
Office Memrandum dated January 21, 1977. He accordingly
i .
;
dismissed.the writ petition filed by the Respondents.
'

B .
At the hearing
. of the writ appeal before the Division
. Bench the Appellants before us produced the file co~taining )--· .
'" · · , the proposals for moderation of results and award of grace
·marks for the SAS Examination and Revenue Audit Examination
for Section Officers held in December 1980, made by the Joint
Director (Exam.), Office of the Comptroller and
c Auditor-General of India, the notings made thereon by other
concerned authorities and the final order passed thereon by
the Comptroller and Auditor-General of India, the First
Appellant before u8 •. After looking into the said file and. Y
analysing the figures to be found therein, the Division Bench
came to the conclusion that the authorities concerned had not
I

D applied .their mind. to the actual state of affairs which
existed and that this had resulted in an arbitrary fixing of
the relaxation which negatived thebenefit that lawfully would
have come to. the . Scheduled Castes and Scheduled Tribes
candidates and that, therefore, the fixing of the relaxation
was arbitrary and made in a perverse fashion. The Division
E Bench further held that it could not straightaway delcare the
Respondents ·as having passed Part II of the SAS Examination -1:'?
·held in December 1980 as it was for the concerned authorities
to apply their mind, bearing in mind the criteria which the
Division Bench had mentioned, and to consider the case of the
-.. -, Respondents . by granting relaxation. The Division Bench
F "----accordingly allowed the appeal and passed the order under
' ahppea1i b e£ore us. hit.hais aghainsAt. this judgmhaent ~nd ohredder hiof 'f.
t e 0 v 1s 1on Bene t t .t e ppe11ants ve approac t s
Court in appeal.
. ·. . .· /-
. The first contention urged by learned Counsel for the
G Appellants was that the Division Bench of the High Court could
not issue a writ ·of aandants to direct. a public authority to'
. _ exercise its discretion in a particular manner. There is a l··.

basic fallacy underlying this submission both with respect to .......
· the order _of. the Division Bench and the purpose and ·scope of··
the writ of aandaots. The High Court had not issued a writ of
•
mandauts. A writ of mandau11s was the relief prayed for by the
H
Respondents in their writ petition. What the Division Bench
COMPTROLLER & AUDITOR GENERAL v. JAGANNATHAN [MADON, J.] 37

A
did was to issue directions to the Appellants in the exercise
of its jurisdiction under Article 226 of • the Constitution.
Under Article 226 of the Constitution, every High Court has
the power to issue to any person or authority, including in
appropriate cases, any Government, throughout the territories
in relation to which it exercises jurisdiction, directions,
B
orders, or writs including ·writs in the. nature of habeas
corpus, CjlOO~lS, quo warranto and certiorari, or any of them,
for the enforcement of- the FundaiOOntal Rights conferred by
Part III of the ·constitution or for any other purpose. In
Diiarkanath, Hindu. Undivided Family v. Income-Tax Officer,
.Special Circle, Kanpur, and another, [1965] 3 S.C.R. 536, 540
this Court pointed·out that Article 226 is designedly couched
in a wide language in order not to confine the power conferred
c
by it only to the-power to issue prerogative writs as under-
stood in England, such wide language being used to enable the
High Courts !'to reach injustice wherever it is found" and "to
mul.d the reliefs . to meet the peculiar and coqJlicated re-
quirements of this oountry." In Bochtief Gammon v. State of
D
Orissa & Ors., [1976] 1 S.C.R. 667, 676 this Court held that
the powers of the cou.rts in England as regards the control
which the Jlldiciary has over , the Executive indicate the
winism licdt to which the courts in this country would be
prepared to go in considering the validity of orders passed by
the Government ·or its officers. ,
E
Even had the Division Bench issued a writ of mandanns .
giving the directions which it did, if circumstances of the
case justified such directions, theHigh Court would have been
entitled in law to do so for·even the courts in England could
have issued a writ of m~ndanss giving such directions. Almost
F
a hundred and thirty years ago. Martin, B., in Mayor of
Rochester v. Regina, [1858] E.B. & E. 1024,1032,1034 said :
('
"But, were there·no authority upon the subject, we
should be prepared upon principle to affirm the
judgment of the Court of Queen's Bench. That G
Court has power, ·.by the prerogative _!7rit of
mandarus, to amend all errors which tend to the
oppression of the subject or other misgovernment,
and ought to be used when the law has provided no
specific remedy, and justice and good government
require that there ought to be one for the
H
38 SUPREME COURT REPORTS [1986] 2 S.C.R.

A
execution of the coDDDOn law or the provisions of a l--
statute : Comyn' s Digest, MandaDI.ls (A) • • • •
Instead of being astute to discover reasons for not
applying this great constitutional remedy for error
and misgovernment, we think it our duty to be
vigilant to apply it in every case to which, by
B any reasonable construction, it can be made
applicable." 1.

The principle enunciated in the above case was approved and
followed in l'be ling v. 1be Revising Barrister for the Bor<JIIIh
of Banley 1 [1912] 3 K.B. 518, 528-9, 531. In Hochtief Gammon's
c Case this Court pointed out (at page 675) that the powers of ;
the Courts in relation to the orders of the Government or an
officer of the Government who has been conferred any power "'
under any statute, which apparently confer on them absolute
discretionary powers, are not confined to cases where such
power is exercised or refused to be exercised on irrelevant
D considerations or on erroneous ground or mala fide, and in
such a case a party would be entitled to move-the High Court
for a writ of mandaDIS. In Padfield and Others v. Minister of
Agrieulture, Fisheries and Food 8Dd Otbers 1 [ 1968] A. C. 997
the House of Lords held that where Parliament had conferred a ~
discretion on the Minister of Agriculture, Fisheries and Food,
E to appoint a committee of investigation so that it could be
used to pro100te the policy and objects of the Agricultural
Marketing Act, 1958, which were to be determined by the
construction of the Act which was a matter of law for the
court and though there might be reasons which would justify --r--
the Minister in refusing to refer a complaint to a committee
F of investigation, the Minister's discretion was not unlimited •
and if it appeared that the effect of his refusal to appoint __.;.,/
a colllllittee of investigation was to frustrate the policy of
the Act, the court was entitled to interfere by an order of
•nd,..Js. In Halsbury's Laws of England, Fourth Edition,
Volume I, Paragraph 89, it is stated that the purpose of an
G order of 118ndanw "is to remedy defects of justice; and
accordingly it will issue, to the end that justice may be
done, in all cases where there is a specific legal right and
no specific legal remedy for enforcing that right; and it may
issue in cases where, although there is an alternative legal
remedy, yet that mode of redress is less convenient,
H beneficial and effectual."
CO~·!PTROLLER & AUDITOR · GENERAL v. JAGANNATIIAN [MADON, J. ] 39

.,. There is thus no doubt that the High Courts in . Iridia
A

exercising their jurisdiction under Article . 226 have the power
to issue a writ. of mandam1s .or a writ in the nature of
mandmD~ or to pass orders and give necessary directions where
the Government" or a public authority has failed to exercise or B
has wrongly exercised the discretion conferred upon it by . a -
-f statute or a rule! or a policy decision of the Government or
--
has exercised such discretion mala fide or on irrelevant
considerations or by ignoring the relevant considerations and
materials or in such a manner _as to frustrate the object of
conferring such . discretion or the policy for implementing
which such discretion has been conferred. In all such cases c
and in any other fit and proper case a High Court can, in the
~exercise of its jurisdiction under Article 226, issue a writ
J of mndamJS or a writ in the nature of mnd;mns or pass orders
and give directions to compel the performance in a proper and
lawful manner of the discretion conferred upon the Government .
or a public ! authority, . and · in a proper case, in order to D
prevent injustice resulting ·. to· the · concerned · parties~ the
Court may itself pass ·an ·. order or give directions which the
Government or the public. authority should have passed or given
had it properly and lawfu~ly exercised ~ts discretion.

It is now -necessary to examine the nature of the discre- E
~ tion conferred by the said Office Memorandum dated January 21,
1977 - "Whether it is a discretionary pawer simpliciter or a
discretionary power.coupled with a duty?" From the provisions
of the Constitution referred · to above, it is · transparently
clear that it is a discretion to be exercised in .t11e- discharge
of the Constitutional duty imposed .by Article 335 to take into F
-'r.consideration the claims of ·· the members of the Scheduled

.
Cas tes and the S~heduled Tribes, consistently with the mainte-
nance of.. efficiency of administration, - in · the · making . of
appointn:ents to services and . posts in connection with the
affairs of · the Union or of a State. This duty is · to be ·
exercised in keeping with the Directive Principle laid down in ·G
Article 46 to promote with special care the educational and
- 1. economic interests of the weaker sections of the people, and,
~ in particular~ of the Scheduled Castes and the Scheduled
Tribes, and to protect them from social injustice and all
forms of exploitation. Article 37 of the Constitution provides ·
that the Directive Principles of State Policy contained in H
Part IV of the Constitution, in which Article 46 occurs, are
40 SUPREME COURT REPORTS [19861 2 s.c.R.

A
fundamental to the governance of the country and that it ist--
the duty of the State to apply·· these principles in malting
Jr4
laws. As said bf Murtaza Fazal Ali, J.t in State of Kerala &
Aar. v. 1.~ ~· &~ •• [1976] 1 S.C.R. 906 (at page 996)
"the directive principles form the fundamental feature and the
social conscience of the Constitution and the Constitution
B enjoins upon the State to implement these directive
principles".

The object of the said Off~ce Memorandum dated January
21, 1977, is to provide an adequate ~pportunity of promotion ~
to the members of the Scheduled Castes and the Scheduled
c Tribes. By reason of the provisions of Article 16(4) of the~
Constitution a treatment to the members of the Schedulea
Castes and the Scheduled Tribes different from that given toA
others in matters relating to employuient or appointment to
any office under the Stat~ does not· vi.olate the Fundamental
Right to equality of opportunity for all citizens in such
D matters guaranteed by Article 16(1) of the Constitution. It" is
now well-sett"!ed by decisions of this Court that the
reservation in favour of backward classes of citizens,
including the members of the Scheduled Castes and the ,.
Scheduled Tribes, as contemplated by Article 16(~) can be made~.
not merely in respect of initial recruitment but also in
E respect of posts to which promotions are to be made : (see,
for instance : State of Punjab v. Biralal & On., [1971] 3
S.C.R, 267 and Akhil Bbaratiya Soehit Karamcllari Sansh •
(lailway) v. UaiOD of IDdia ~ Or1., (1981] 1 S.C.C, 246.

The question which now falls to be considered is the ..,
F manner in which the Comptroller and Auditor-General of India -"'
is required to exercise the discretion conferred by the said;'
Office Memorandum dated January 21, 1977, and the manner in
which he has, in fact, exercised it. The said Office
Memorandum dated January 21, 1977, refers to two other Office
Memoranda, namely, the Office Memorandum dated December 23,
G 1970, and the Office Memorandum dated November ·27, 1972, Under
the Office Memorandum dated December 23, 1970, where a ~
sufficient number of Scheduled Castes and Scheduled Tribes v
candidates are not available on the basis of the general ·
standard to fill all the vacancies reserved for them, they may
also be considered for promotion provided they are not found
H unfit for such promotion, and to achieve this, the said Office
C(}IP'!'R()LLER & AUDITOR GENERAL v. JAGANNATHAN [MADON, J.] 41

A
--~ Memrandum directs that the qualifying standard in such
examinations can be relaxed in their favour in keeping with
the above criterion. The Office Memorandum dated November 27,
1972, fixes the reservation quota for the members of the
Scheduled Castes at 15 per cent, and the Scheduled Tribes at
7-1/2 per cent, in appointments filled by promotion on the B
basis of seniority subject to fitness. Under the said Office
, Memorandum dated January 21, 1977, if a sufficient number of
·'~ Scheduled Castes and Scheduled Tribes candidates are not
available in the qualifying examinations on the basis of the
general standard to fill all the vacancies reserved for them
in the promotional posts, suitable relaxation in the
qualifying standard for such examinations should be made in c
,,, the case of the Scheduled Castes and the Scheduled Tribes
candidates bearing in mind all relevant factors including,
~ namely, (1) the number of vacancies reserved, (2) the
performance of the Scheduled Castes and the Scheduled Tribes
candidates as well as the general candidates in that
examination, (3) the minimum standard of fitness for appoint- D
ment to the post, and also (iv) the overall strength of the
cadre and that of the Scheduled Castes and the Scheduled
Tribes in that cadre. The said Office Memorandum dated January
--{'
21, 1977, thus postulates two qualifying standards --one, a
general qualifying standard and the other, a relaxed or lower
qualifying standard for candidates belonging to the Scheduled E
Castes and the Scheduled Tribes. Paragraph 4 of the said
Office Memorandum dated February 8, 1968, reproduced earlier,
shows that in the case of direct recruitment through a quali-
fying examination a mdnimum standard is generally to be fixed
t and that in such cases, a lower minimm qualifying standard
• should be fixed for the candidates belonging to the Scheduled F
:.. Castes and the Scheduled Tribes, taking into account the
· miniUillD standard necessary for the maintenance of efficiency
of administration, and that if the minimum qualifying standard
for general candidates is reviewed at a later date, the lower
minimum qualifying standard applicable to the Scheduled Castes
and Scheduled Tribes candidates should also be reviewed. The G
Office Meoorandum No. 1/1/70-Estt. (SCT) dated July 25, 1970
-_,. which deals with examination for direct recruitment also
'i speaks of a general standard and of a lower standard for
candidates belonging to the Scheduled Castes and the Scheduled
Tribes, the standard being required to be relaxed in their
H
42 SUPREME COURT REPORTS [ 1986] 2 S. C.R.

A
case to make up the deficiency in the reservation quota ~ _.
provided they are not found unfit for such post or posts. As
seen above, a similar provision exists in the said Office -
Memorandum dated December 23, 1970, with respect to
departmental competitive examinations for promotion and in
departmental confirmation examinations.
B
What is, therefore, required to be done under the said
Office Memorandum dated January 21, 1977, is to fix a general _)-
qualifying standard for all candidates appearing in depart-
mental competitive examinations for promotion and in depart-
mental confirmation examinations as also to fix a relaxed or
c lower qualifying standard for the candidates belonging to the
Scheduled Castes and the Scheduled Tribes in respect of each ~
examination, so that if a sufficient number of candidates
belonging to the Scheduled Castes and the Scheduled Tribes do --'.
not qualify according to the general standard, they can be
considered for promotion in the light of the relaxed or lower
D qualifying standard where there are a number of vacancies in
the posts falling in the reserved quota and not enough
candidates belonging to the Scheduled Castes and the Scheduled
Tribes to fill such vacancies according to the general quali-
fying standard. In this connection, it should be borne in mind ,..
that the Office Memorandum dated December 23, 1970, referred
E to in the said Office Memorandum dated January 21, 1977,
states that it was provided by Office Memorandum No.
1/1/70-Est. (SCT) dated July 25, 1970, that in the case of
direct recruitment, whether by examination or otherwise, "if
sufficient number of Scheduled Castes/Scheduled Tribes -t
candidates are not available on the basis of the general
F standard to fill all the vacancies reserved for them,
candidates belonging to these conmunities may be selected to -.~~·
fill up the re.dning vacancies reserved for them provided -·
they are not found unfit for appointment to such post or
posts", and that it had been decided to make a similar relax-
ation in the case of promotion made through departmental
G competitive examinations and in departmental confirmation
examinations. When these two qualifying standards are fixed, ~-
the difference between the general qualifying standard and the t-
relaxed or lower qualifying standard will form the Zone of
consideration when the result of each examination is ascer-
tained according to the general qualifying standard. The
H candidates who appear for departmental competitive exami-
COMPTROLLER & AUDITOR GENERAL v. JAGANNATHAN [MAOON, J.] 43

A
-~ nations for promotion and departmental confirmation
examinations know in advance the general qualifying standard
because such standard is prescribed. This naturally postulates
that the relaxed or lower qualifying standard should also be
· fixed in advance and made known so that the candidates belong-
ing to the Scheduled Castes and the Scheduled Tribes will know B
before they appear for the examdnation to what extent they can
1.. expect relaxation for themselves, provided that the other
conditions prescribed by the said Office Memorandum dated
January 21, 1977, are fulfilled. The relaxed or lower quali-
fying standard cannot be fixed for all time or for a number of
years. It DllSt of necessity be fixed for each examination
~ because it has to be fixed taking into account the reserved c
vacancies remaining unfilled and the overall strength of the
).. cadre and of the Scheduled Castes and the Sc:heduled Tribes in
that cadre. This would naturally vary from year to year and
cannot be fixed in advance but III.lst necessarily be fixed
before each examination and notified so that the candidates
appearing in such examination would know what the lower quali- D

.. fying standard is. The relaxed or lower qualifying standard is
the minimum up to which the discretion under the said Office
Meroorandum dated January 21, 1977, is to be exercised. This
- ~ should not be construed to mean that all who qualify according
to the relaxed or lower qualifying standard are to be
promoted. How many are to be promoted 1111st depend upon the E
number of vacancies which remain unfilled on the basis of the
general qualifying standard. For instance, if the general
qualifying standard is 45 per cent and the relaxed or lower
t qualifying standard has been fixed at 35 per cent and if on
• the basis of the general qualifying standard only ten reserved
-,_"-~vacancies remain unfilled, then ten candidates who obtain less F
~.than 45 per cent but have obtained 35 per cent or more should
be selected in order of merit. If, however, there are fifteen
reserved vacancies which remain unfilled according to the
general qualifying standard and only ten candidates belonging
to the Scheduled Castes and the Scheduled Tribes have obtained
35 per cent or more, the standard cannot be further lowered G
~ helow 35 per cent to enable the remaining five candidates also
~· to be selected for promotion. The said Office Memorandum dated
January 21, 1977, also makes it clear that the relaxed or
lower qualifying standard is to be fixed each time an exami-
nation is to be held, by taking into account all relevant
factors including those specifically set out in the said H
44 SUPREME COURT REPORTS [19861 2 s.c.R.
A
Office Meroorandum. This it does by stating that "The extent of 4-
relaxation should be decided on each occasion whenever such an
examination ie held". "'-

In the case of the SAS Examinations, Paragraph 234 of
the said Manual fixes the general qualifying standard as 40
B
per cent for each subject and 45 per cent in the aggregate for
each part of that Examination. Thus, every candidate appearing .)._1
in either of the two parts of the SAS Examination knows the
minimum percentage of marks he has to obtain in each subject
:ts also in the aggregate percentage of marks and it is in
consonance with reason and logic that the candidates belonging
c to the Scheduled Castes and Seheduled Tribes should also know ~
in advance the maximm relaxation they can expect to get on -
the basis of the criteria set out in the said Office __._
Memorandum dated January 21, 1977.

It was, however, argued on the basis of the decision of
the Orissa High Co~rt referred to above that fixing a relaxed
or lower standard ·in advance was not permissible in law and
that when this was done for the SAS Examination, the Orissa
High Court had struck it down and the Petition for Special
Leave to Appeal against its judgment was dismissed by this
Coutt. The learned Single Judge of the High Court was
impressed by this argument. A perusal of the said judgment,
however, shows that it has no relevance to the present
situation. Before the Orissa High Court, the question was of
an Office Me100randum dated May 7, 1955, on which date there
was no reservation made in the case of posts to be filled by ~
promotion on the basis of a qualifying examination. The said
Office Memorandum dated May 7, 1955, expressly provided that •
there would be no reservation for the Scheduled Castes and the
Scheduled Tribes in regard to the vacancies filled by
promotion but where the passing of tests or examinations was
laid down as a condition, the authority prescribing the rules
..
7
for such tests or examinations may issue suitable instructions
to ensure that the standard of qualification in respect of
the members of the Scheduled Castes and the Scheduled Tribes
is not unduly high. By a confidential Circular dated December
18, 1961, issued by the Comptroller and Auditor-General of
India instructions were given that a reduction in pass
percentage should be made to the extent of 3 per cent in the
aggregate and 2 per cent in any two of the papers in each
COMPTROLLER & AUDITOR GENERAL v. JAGANNATHAN [MADON, J.] 45

A
--r part of the SAS Examination in favour of the candidates
belonging to the Scheduled Castes and the Scheduled Tribes. It
was the case of both the parties before the Orissa High Court
that the said Office Memrandum dated May 7, 1955, did not
create a reservation in favour of the members of the Scheduled
Castes and the Scheduled Tribes under Article 16(4). Further, B
the said confidential Circular made merely a general relax-
A.. ation without prescribing any guideline or criterion for
giving the relaxation. The Orissa High Court, therefore, held
that the concession granted by the insructions contained in
the said confidential Circular being unguided did not pass the
objective test and was, therefore, bad in law. The High Court
.A further pointed out that there was even no material before it
I

c
to show that the members of the Scheduled Castes and the
;.. Scheduled Tribes were already not in adequate number in
employment in the establishment of the Accountant General. The
said Office Memrandum dated January 21, 1977, stands on a
wholly different footing from the Office Memorandum referred
to in the aforesaid judgment of the Orissa High Gourt. It D
neither provides a general relaxation for all exa~nations nor
,. is the relaxation to be made under it unguided or not based on
any principle. On the contrary, it expressly provides that the
-..{ extent of relaxation should "be decided on each occasion
whenever such an examination is held taking into account all
relevant factors including those specifically set out E
therein."

It appears that the other Departments of the Union of
~India have implemented the Office Memorandum dated January 21,
~ 1977, in keeping with the interpretation given above. For
- , instance, the Circular No. 63/1/77-SPB I dated January 31, F
\ 1978, i,ssued by the Office of the Director General of Posts
and Telegraphs, after referring to the said Office Memorandum
dated January 21, 1977, states as follows :

n The matter has been examined in detail and it has
been decided that a lower standard for SC and ST G
candidates in all the groups, where the promotion
is on the basis of seniority-cum-fitness and there
is qualifying examination to determine the fitness
of the candidates, to the extent as prescribed in
this Office letter No. 63/10/71-SPBI dated 17th
July 1971 (copy enclosed) be observed subject to H
46 SUPREME COURT REPORTS [1986] 2 s.c.R.

A '
the instructions contained in the last sentence of i-
para 1 of Department of Personnel and A.R.O.M.
dated 21.1.77 referred to above. It may also be
stated that the relaxation of standard should be
the minimm limit upto which the competent
authorities could go down in order to fi 11 the
B vacancies reserved for ST and SC in such qualifying
examination."

It appears that a doubt was raised as to what should be the
relaxed or lower standard in the case of the candidates
belonging to the Scheduled Castes and the Scheduled Tribes in
c qualifying examination for promotion to a higher post on the ~
basis of seniority-cum-fitness. Clarifications in that behalf ··
were issued by a Circular No. 202/17 /78/STN/SPB I dated ~
December 19, 1978. These clarifications were as follows :

" a) No relaxation is to be made for SC and ST
0 candidates if sufficient number of candidates
belonging to SC/ST qualify to take up the posts
reserved for them as per the standard prescribed ·"~
for other community candidates (40% in each
individual paper and 45% in aggregate for o.c.
candidates).
E
b) Relaxation is to be made if sufficient number of
ST and SC candidates do not qualify the standard
prescribed for other community candidates.

The relaxation may be as follows :- 1
F .,.;"'
i) MaxitmJm lowering of standard upto 33% in the J
individual papers and 38% in the aggregate.

ii) If, however, the number of SC and ST candidates
equal to the number of vacancies become available
G at a high standard, say 35% in individual papers
and 40% in the aggregate, no further lowering is to ,..
be resorted to. t-

iii) If the number of SC and ST candidates
qualifying at 33% in each individual paper and 38%
H in the aggregate is not equal to the number of
COMPTROLLER &AUDITOR GENERAL v. JAGANNATHAN [MADON, J.) 47

A
vacancies reserved for them, no further lowering is
to be resorted to to ensure that number of SC and
ST candidates qualifying is equal to the number of
vacancies reserved for them. In other words in no
case standard is to be lowered below 33% in each
individual paper and 38% in the aggregate." B

~ The Railway Board's Letter No. E/SCT/70CM 15/6(B) dated
·July 29, 1970, is also instructive. It states :

" Sub : Filling up of promotion vacancies-
Relaxation of qualifying marks for Scheduled Castes
and Scheduled 1ribes. c
****
In their letter No. E(SCT)68CM15/10 dated 27th
August 1968 the Board had decided to reduce
minillllm qualifying marks both in "professional
ability" and "aggregate'' from 60 percent for others D

.. to 50 percent for Scheduled Castes and Scheduled
Tribes in respect of promotions to selection posts
in class I l l where safety aspect is not involved. A
similar concession of 10 percent marks was granted
to reserved community candidates in competitive
examinations limited to departmental candidates in E
competitive examinations to fill up 10 per cent of
the posts of Clerks scale Rs.130-300 in Board's
letter No. E(SCT) 68CM15/10 dated lOth January
1970.

In respect of promotions made on seniority-cum- F
suitability, the extant instructions are that the
cases of Scheduled Castes and Scheduled Tribes
should be judged sympathetically without applying
too rigid a standard. In order to give practical
shape to this provision of "sympathetic
consideration", the Board have now decided that a G
concession of 10 per cent marks may be granted to
Scheduled Castes and Scheduled Tribes in the
suitability tests written or oral, in the
categories where safety aspect ie not involved."

H
48 SUPREME COURT REPORTS [1986] 2 S.C.R.

A
Learned Counsel for the Appellants relied upon a decisioni-
of this Court in V.V. Iyer v. Jasjit Singh, A.I.R. 1973 S.C. ~
194 in which it was held that where two alternative
interpretations are possible with respect to the scope and
applicability of an Item in Schedule I to the Imports
(Control) Order, 1955, made under section 3(1) of the Imports
B and Exports (Control) Act, 1947, and the Customs authorities
have adopted a reasonable view relating thereto which is_;. .
favourable to the revenue, such finding of the authorities
cannot be interfered with by the High Court under Article 226
of the Constitution even though another view which can be ~
adopted is in fAvour of the subject. In that case, two alter- ~
c native interpretations were possible with respect to an item~
in the Schedule to the Imports (Control) Order and the -
Department had preferred one of them. The interpretation~
placed by the Department was held by this Court not to be
unreasonable. The ratio of the above decision applies where
the Court has before it two possible alternative interpre-
D tations and the concerned Department of the Government has
accepted one of them. Here, what has happened is. that two.
Departments of the Government have taken one view and the .,.
Department of the Comptroller and Auditor-General of India has
taken a contrary view which is neither warranted nor borne ut ·'r ·
by a reading of the relevant Office Memoranda.
E
What relevance the above decision has to the facts of the
present case is also beyond us. It is not possible to equate ,
the members of the Scheduled Castes with goods imported from
abroad. They are human beings like all other human beings, the~
only difference being that for centuries a large number of •
F their countrymen have not treated them as human beings but a s /
sub-human creatures beyond the pale of society and even of 1
humanity. William Blake in his poem "Auguries of Innocencen
said:

"Every Night and every Morn
G Some to Misery are Born.
Every Morn and every Night
Some are Born to sweet delight.
Some are Born to sweet delight,
Some are Born to Endless Night."

H The members of the Scheduled Castes were the children of the
cotw!PTROLLER & AUDITOR GENERAL v. JAGANNATH&~ [MADON, J.] 49

~· "Endless Night". Their birth-right was the badge of sharoo;
-.\their inheritance, the overflowing cup of humiliation; their
: constant and closest companion, degradation; the bride of ) .
·their marriage, lifelong poverty; and their only fault, to be i
born to their parents. They were denied education. They were
!.
1 denied jobs except the lowest menial tasks. They were denied
B I' :
-
contact with persons not belonging to their castes for their
}

l touch polluted and even their shadow defiled, though the touch
I ~ I

t and the shadow of the animals did not, for men rode on horses
~-~· a,nd elephants and on nules and camels and milked cows, goats
t -and buffaloes. They were denied worship and the doors of the
· temples were shut in their faces for their very presence was
t supposed to offend the gods. All these wrongs were done to
c
t them by those who fancied themselves their superiors. As the
z) anonymous satirist said :
!
·~eare the precious chosen few: •
Let all the rest be damned.
I There's only room for one or two: 0
I We can't have Heaven crammed."

t The treatment meted out to the members of the Scheduled Castes
throughout the ages was an affront to Human Rights. It was in
, a spirit of atonement for the wrongs done to them and to make
> restitution for the injury and injustice inflicted upon them E
1 that the fra~rs of the Constitution · enacted Article 16(4)
; placing them in a separate class in matters relating to
1 employment or appointment to any office under the State,
; formulated the Directive Principle embodied· in Article 46. and
( proclat~d the great Constitutional mandate set out in Article
f... 335. F
-!-
~·
1,~.
It is equ.1 lly not possible to equate the members of the
Scheduled Tribe~ with good 9 imported from abroad. They too are
human beings ttke oth~r huoan beings with this dlfference that
for centuries they h~ve preferred to follow the primitive ways
of their forefathers. Remote and almost inaccessible in their G
~ hilly vastness and secluded forests, ctviltzation has passed
them by. The beneftts of htgh sophisticated technology is as
Unknown to them as its hazards of noxious fu~s and potsonous
gases. Simple and naive they have become a rich mtne for
exploitation by the hu~n products of civilization. Their
~r lands have been stolen from them by skulduggery and they have H r -·
':
.;---·-
.. .
.
50 SUPREME COURT REPORTS [19861 2 s.c.R.

·A
been tricked irito selling the products of their craft and ·.,-
skill for a song. It was to protect them from such
exploitation and to enable them to participate in the
mainstream of the nation's life that they have been given
'special treatment. by Articles 16(4), 46 and 335 of the
Constitution. !

B .. ·. . '
--The - interpretation to _-be placed .upon the said Off ice -+-
Memrandum dated January 21, 1977, must, therefore, be in
· keeping with the -above provisions of the Constitution and not
as if the said Office ·Memorandum were an entry in a Tariff
Schedule· or a notification levying import duty upon goods.
c
What remains now to be .examined is the manner in which
· the Comptroller and Auditor-General of India has exercised his ~
discretion under the said Office Memorandum dated January 21,
1977. As mentioned earlier, the learned Single Judge of the
' . .
High Court accepted the statement made by the Second Appellant
in his counter affidavit filed . on behalf of· the Appellants
that necessary and -suitable - relaxations had been made in
favour of the Respondents after taking into account the
. various factors contained in the said Office Memorandum dated
~anuary 21, 1977. Af~er the_ Division Bench of the High Court
..-.. had perused the file containing the proposals for moderation
E of results \and award of grace marks. in the SAS Examination and -¥i
the. Revenue and Audit Examination for Section Officers held. in
December 1980, this statement held good no · longer and
accordingly i.t was sought to be explained away in paragraph 11
·- of,the ·Petition for Special Leave to Appeal as follows :.
.·· ... - "'-,_
·-....,
F ' , , '·-,_ -·, "Although the office note did not -di~cuss in detai11
-. . . all the relevant . factors, it is incorrect to say
-- - - that the authorities had not applied their mind to
the actual state of a7fairs that existed, resulting
in arbitrary fixing of ~elaxation. the _extent of
relaxation is to be decided by the first petitioner
G (that - is,·· the Comptroller and Auditor-General of
India) at his discretion, keeping in view all ~
relevant factors. 11 ,.-411\

. .
Like the~counter affidavit filed tn the writ petition the
affidavit af~irming the Petition for Special Leave to Appeal
H w~s also-not made by the Comptroller and Auditor-General of
COMPTROLLER & AUDITOR GENERAL v. JAGANNATHAN [MAOON, J. ] 51

A
·~ India but by the Joint Director in the Office of the
Comptroller and Auditor-General of India. According to the
""' said affidavit, what was stated in the Petition for Special
Leave to Appeal was "stated on the basis of information
derived from the record of the case". The information to be
derived from the record of the case clearly shows that the B
relevant factors set out in the said Office Memorandum dated
l January 21, 1977, were not and could not be considered or kept
in mind and the so-called relaxation given to the members of
the Scheduled Castes and Scheduled Tribes made a mockery of
... the said Office Metoorandum. The office file referred to in
paragraph 11 of the Petition for Special Leave to Appeal is
,. l_ the file containing the said proposals for moderation of
· results and award of grace marks. The said paragraph 11 is an
c
~admission that these proposals did not set out all the
relevant particulars upon which the Comptroller and Auditor-
General of India could properly exercise his discretion or be
made acquainted with the material data which would enable him
to take into account all the relevant factors including the D
four specifically set out in the said Office Memorandum dated
January 21, 1977. The heading of the said proposals itself
~ show that it was concerned only with awarding of grace marks
~ --~ and not with relaxation of the qualifying standard in the case
, of the candidates belonging to the Scheduled Castes and the
Scheduled Tribes. Further, according to the said paragraph 11
E
the authorities had applied their mind to the actual state of
~- affairs that erlsted. When what the actual state of affairs
that existed is ascertained, the above statement turns out to
~be as divorced from reality as the Second Appellant's
~
statement in his counter affidavit referred to above earlier.
""'.: F
~ It will be useful to refer first to the relevant
paragraphs of the said proposals for moderation of results
1 and award of grace marks. Paragraph 4 dealt with Part II of
the SAS Examination and was as follows :

"4. (a) Part II 809 candidates appeared from different
G
offices out of whom 361 have passed showing 44.6%
pass which does not compare favourably well with
the 28.1% of February 1977, 41.5% of December
1977, 55.51 of December 1978 and 34.4% of December
1979. The figures for the previous years are after
H
52 SUPREME COURT REPORTS [1986] 2 S.C.R.

A
moderation. The percentages of pass before and)--~
after moderation are shown in Table No. II-B. As
was done in the case of Part I candidates it is,
therefore, recommended that the border line cases
where the caP-didates fail by 5 marks in the
aggregate inclusive of 5 marks in one or 100re
B subjects may be considered for award of grace
marks. This will enable 30 candidates more to ..l.
clear the examination in Part II; of which three
will be from the SC/ST category and the balance
from the general candidates. The effect of this
proposal will be the percentage of pass of 44.6
c will go upto 48.33%. ..,..1..;,

(b) In the same branch out of 72 SC/ST candidates-A
who appeared for the examination 24 have passed
recording 33.3%. As was recommended in the case of
Part I candidates, it is recommended that the grace
0 marks in respect of SC/ST candidates may be given 8
in the aggregate inclusive of 5 marks in one or
more subjects. This will benefit 5 candidates from ~
this category, of which 3 have already been covered
in the general grace recormnended for the general )-- . . .
candidates in the previous sub-para. The award of
E this grace mark will increase the percentage of
pass in respect of SC/ST candidates from 33.3 to
40.29." -~

It is difficult to understand how the percentage of 44.6-r
who passed out of the candidates who appeared for Part II of ~
F the SAS Examination held in December 1980 did not cotl\")are /-"
favourably well with the 28.1 per cent of the February 1977;
and 41.5 per cent of the December 1977 examination of Part II
of the SAS Examination. No attempt has been made in the said
proposals to focus the attention of the Comptroller and
Auditor-General of India on the total number of vacancies
G reserved and the overall strength of the cadre and of the
Scheduled Castes and the Scheduled Tribes in that cadre. It
is left to be gathered, if one is so minded, from the number ~
of tables annexed to the said proposals. The admitted
position, however, is that a general relaxation of five grace
marks in the aggregate inclusive of five marks in one or more
H
. COHPTROLLER & AUDITOR GENERAL v. JAGANNATHAN [MADON, J.] 53
i .
' ; '•

~ A "'
·~

~~ subjects was given to all the candidates and that so far . as
the candidates belonging to the Scheduled Castes and the I
J

Scheduled Tribes were concerned, they were given eight grace
,. · marks in the aggregate inclusive of five grace marks in one or
; more subjects. This resulted in five candidates belonging . to
the Scheduled Castes and the Scheduled Tribes passing, out of B
which three had already passed by reason of the grace marks
\ allotted to all the candtdates. Thus, the effect of this
r relaxation was that only two candidates belonging to the.
Scheduled Castes and the Scheduled Tribes were enabled to
.
; .
!

pass the examination. The number of .vacancies reserved for
the Scheduled Castes and the Scheduled Tribes was 445 ln the
l· year 1980, out of which . 55 reserved vacancies were for the c-
.l State of Tamil Nadu. Only 72 candidates belonging to the
\ · Scheduled Castes and the Scheduled Tribes appeared for Part ·II
f SAS Examination held in December 1980. Twenty-four of them
had passed without any relaxation and after such · relaxation
was made altogether 29 passed. As seen earlier, out of these
additional five candidates who passed, . three had passed by D
reason of the grace marks allotted generally to all candidates
and only two by reason of the additional grace marks given to
\ the Scheduled Castes and the Scheduled Tribes candidates • . So
far as th~ State of Tamil Nadu was concerned, not a single
candidate passed. As the aggregate number : of marks · was 500
and eight grace m3rks were given to the candidates belonging E
to the Scheduled Castes and the Scheduled Tribes, the percent-.
1

I age of relaxation comes to about 1.3/5 per cent. In the Part ;J
. II SAS Examination held in December 1977 3 per cent relaxation •
was given, in December 1978 Examination a relaxation up t~ ten
, marks in the aggregate was given and in December 1979 Examt-
l
~
l.

·\ !.
' 1 nation also a relaxation of ten marks was given. The total F ·
;f, aggregate of all the papers in Part tl .SAS Examination is 500
. )''narks. Therefore the minil1llm aggregate of 45 per cent would
r' e 25 marks. The, First Respondent had obtained 213 marks in
rc b 2

1
the aggregate while the Second Respondent had obtained 204
; ~rks in the aggregate If one were to give eight grace marks
;,:._ Which were allowed, t~e First Respondent would have got 220 G
!!larks and the Second Respondent would have got 212 marks. · Had
' ' ~he extent of re laxat ton b~en 2 • 6 per cent that is 13 marks,
; ; he First Respondent would have · passed and had it been 4 • 2
. , . Per cent, that ts 21 marks the Second Respondent would have
t ·. als
a passed. The, percentage' of five general gcace tMr· k 3 was
l : only 1 per cent. The additional three grace marks given to
th~ Scheduled Ca~tes and the Scheduled Tribes candidates,
H

r
54 SUPR£HE COURT REPORTS [1986) 2 S.C.R.

A taking into account the extent of general relaxation, works 1,;
•
out to 1. 3/5 per cent only. When one compares what is being \_:
·' done in the Posts and Telegraphs and in the Railways With what r
was done in the present case, it is clear that the relaxation ( .
which was given was purely an illusory one, paying only
Up-service to the said Office Meroorandum dated January 21, ~ 1
1977.
l
;'·
B -~
It was, however, submitted on behalf of the Appellants ~
that the authorities cannot give relaxation in such a manner

I.
I
•'
to impair the efficiency of the service and that had the
relaxation been given to a greater extent, 11.: would have
resulted in impairing the maintenance of efficiency of the J,
c SAS. It was further urged t:hat under the said Office
..
Memrandum dated January 21, 1977, relaxation is to be made
provided the ~andidates belonging to the Scheduled Castes and
the Scheduled Tribes are not found unfit for promotion. ~
submission would requlre to be accepted had it any relevance
to the _facts of the present case. However much one may desire
D
to better th~ prospects and promote the interests of the
members of the Scheduled Castes and the Scheduled Tribes, no
sane-thinking person would want to do it irrespective of the ,
cosideratioM of efficiency, or at the cost of the proper ·
functioning of the adminis tration and the gove~ntat
machinery. Public good and publtc interest both require that
E
the administration of the Governm:!nt and the functioning of
..
.: its ~ervices should be · carr. led out properly and efficiently•
I
' Art lcle 335 of the Const itut lon, whlch provides for the clai!IS
of the members of the Scheduled Castes and the Scheduled .
Tribes to be taken into considerat ton in the making of · '
F appointments to services and posts in connection ~Jith the
affairs of the Union or of a State, itself requires that this
should be done 11 consistently with the maintenance of effi.cien- -'
cy of admlnist rat Lon". The quest ton of lmpai~nt of
efficiency of the SAS service does not, h~ever, arise here•
. I
'
I The relevant paragraphs of the s~ld Manual have already been
I G ref erred to but lt wl U not be out of place · ln the context
of the above submlsston to refer to them again. The relevant
paragraphs are 197, 198, 199 and 207. Both the Respondents
were permitted to appear in Part I of the SAS Examination and ·
after passing such examlnat ton were permitted to appear £orr
.. Part II of the SAS Examination. Under: paragraph 197, theY
H required permission of the Accountant General or Head of
Office to do so. Under paragraph 198, the selection of the
- tt
----- - ·· --
COMPTROLLER & AUDITOR GENERAL v• .JAGANNATIIAN [MAOON, J. J 55

A
~ candidates was primarily the responsibility of the Head of the
Office. Under paragraph 199, the essential condition of such
~ selection was that the candidates selected ~ould, if qualified
by examination, be likely to be efficient in all the duties of
the SAS. Under paragraph 207, a certificate had to be given
to eac~ candidate that he was regular in attendance, B
energetic, of good moral character and business-like habits
and was not likely to be disqualified for appointment to the
A-SAS as not possessing the aptitude for the work of a holder of
a post in the SAS and that he had a reasonable prospect of
passing the examination. This certificate is required by
4 paragraph 207 to be given "with due responsi.bility and not as
·a matter of form". Thus, unless some event had occurred C
.--Lbetween the date of the giving of the certificate and the
final declaration of results which would disqualify a
~candidate from discharging the duties of a post in the SAS, he
is considered to be eligible for promotion to the SAS, subject
only to the condition that he passes the examination. The
said Office Memorandum dated January 21, 1977, is not intended D
only for the Department of the Comptroller and Auditor-General
of India. It also applies to all Ministries and Departments,
·~ and it has to be applied in the context of the rules governing
. _.Jeach Department. The condition contained in the said Office
Memorandum dated January 21, 1977, that the candidates
belonging to the Scheduled Castes and the Scheduled Tribes E
should not be found unfit for promotion is a general condition
~ applying to all Ministries and Departments. In the case of
candidates selected to appear for the SAS Examination, this
• ~ondition has already been satisfied by reason of their
-L~ selection as candidates. If it was considered that the
_,_ _Respondents would not be able to discharge the duties of the F
'-~lder of a post in the SAS, they would not have been given
the relevant certificate required under paragraph 207 of the
said Manual. They were given such certificates and it is not
open to the Appellants to take a stand contrary to what the
certificates given to the Respondents state.
G
The above discussion shows that the entire procedure
'1~.allowed in the case of the SAS Examination held in December
- 1980 was completely contrary to what was required to be done
under the said Office Memorandum dated January 21, 1977. No
relaxed or lower standard for the candidates belonging to the
H
56 SUPREME COURT REPORTS [1986] 2 s.c.R.

A
Scheduled Castes and the Scheduled Tribes was fixed in advance ~
of the examination. As it was not fixed in advance, the
question of it being notified to the candidates does not ~
arise. The relaxation by way of grace marks given after the
results were ascertained on the basis of the general
qualifying standard ~as without proper application of mind and
B did not take into consideration the relevant factors, and was,
therefore, contrary to what was required to be done by the
said Office Meroorandum dated January 21, 1977, and the other_.~.,
Office Memoranda referred to earlier and was violative of
Article 335 of the Constitution and accordingly must be held
to be bad in law.
c
In the result, this Appeal must fail. The Division Bench~
of the Madras High Court has, however, contented itself with
lssuing directions to the Appellants to consider the case of~
the Respondents and grant suitable relaxation to them within
two months from the date of its judgment as to whether they
D had qualified in Part Il Examination of the SAS held in
December 1980 and while granting such relaxation to bear in
mind the observations made in its judgment as also the
criteria envisaged in the said Office Memorandum dated January ~
21, 1977. The Division Bench did so because it felt that it\._ ..
could not straight away declare the Respondents as having
E passed the said examination. The judgment of the Division
Bench of the Madras High Court was given on .January 12, 1984.
More than two years have elapsed since then. In the meantime ~
the Appellants have approached this Court by obtaining Special
Leave to Appeal and have obtained interim stay of ther •
execution of the order of the Division Bench. This interim _...
F stay has now obviously come to an end. Further examinations,- .....
however, must have been held in the mean ti.me. ln view of th~
order of interim stay, they must have been held on the same
basis as the December 1980 Examination. The Respondents had
appeared in Part II of the SAS Examination in December 1980
and, therefore, to give the same or similar directions as were
G given by the Division Bench of the Madras High Court would
result in further delay and would perhaps result in a fresh ._,
writ petition. Further, such directions cannot be given onl}~
'Nith respect to the Respondents because there may be othe!'
candidates belonging to the Scheduled Castes and the Scheduled
Tribes who are similarly situated nor can such directions be
H confined merely to the December 1980 examinat lon. They also
COMPTROLLER & AUDITOR GENERAL v. JAGANNATHAN [MADON, J.} 57

-...should not jeopar1ize those who have already been promoted for
.· A

none of them are parties to this Appeal. It is, therefore,
necessary that _in order to do complete justice to all
concerned as required by Article 142 of the· Constitution, the
matter should not be left to the Comptroller _and Auditor-
General of India but all· requisite directions should be given B
-1J -this- Cou~t·__ ~

For the reasons given above, we dismiss this Appeal and
confirm the judgment_of the Division Bench of the Madras High
~ Court in Writ Appeal No. 409 of 19~, but we substitute the
following Order for the order passed by it in the said Writ
_Appeal : . . c
_,..,;
i For Part It examination of the Subordinate Accounts
Service Examination (Ordinary) and all subsequent
Part II examinations of the Subordinate Accounts
Service Examination (Ordinary) held thereafter
until today there will be a relaxation of 25 marks D
in all for candidates belonging to the Scheduled
Ca:stes and the Scheduled Tribes, that. is, this
relaxation will cover not only the pass marks to be
given in the aggregat~ but will be inclusive of the
pass marks to be given in each individual paper so
that the total_ number of marks covered by such E
relaxation will not exceed 25. The Respondents and
all other carididates belonging to the Scheduled
Castes and the Scheduled Tribes who will pass the
said examinationS ·as a result of the above
relaxation are declared to have·passed such exam!~
nations and . to have- been prorooted ~ to the F
Subordinate Accounts Service in , the vacancies
· reserved for the members' of· the Scheduled Castes
. .
and the Scheduled Tribes with/effect from-the date
when the final declaration of the results of each ..
·
such examination was made and will be paid such
salary and shall be entitled to all other benefits c
on the basis of such promotion with effect from the
said date. So far as seniority is concer~d,
however, they will not rank above those who have
already passed and have been promoted but will be
placed in the seniority list after all those who
have passed in Part II of the Subordinate Accounts H
Service Examination (Ordinary) held so far, ranking
inter se ~ccording to the rules relating to
58 SUPREME COURT REPORTS _ {1986] 2 s.c.R.

A seniority set out in paragraph 184 of Volume I ot-
the Comptroller and Auditor General's Manual of
Standing Orders (Administrative). r

In respect of all subsequent examinations to be
held for the Subordinate Accounts Service, the
Comptroller and Auditor-General of India will fix a
B relaxed or lower standard in advance and notify itA
to the candidates who are going to appear for such
examination. In fixing such standard, he will bear
in mind the observations made in this Judgment and
what has been held therein.
l
~-
c For the purpose of this Appeal the Respondents have been
compelled to come to New Delhi to appear before this Cour.t.
time and again and also had to spend money on their board and
lodging. The Appellants will, therefore, pay to each of the
Respondents a sum of Rs.l,SOO by way of costs of this Appeal.
D As th~ Respondents ar~ not r~pr~sent~d by any Advocate,
the Registry will communicate this order to the Respondents •
without claiming the cost thereof from the Respondents.
~
Before parting with this Appeal, the Court must on~e
again express its deep sense of appreciation of the valuable
E assistance rendered to it by Mr. V.A. Bobde, Advocate, who
appeared as amicus curiae, and without whose assistance it
perhaps may not have been possible to reach the above
conclusion. l

F

P.S.S. Appeal dismissed.