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Supreme Court of India

PUNJAB STATE POWER CORPORATION LTD.AND ORS.versusHARI KLSHAN VERMA

Citation
2015 INSC 982
Decided
27 March 2015
Disposal
Appeal(s) allowed

Holding

A compulsory retirement order is not stigmatic; the employer may scrutinise the entire service record, and the order of retirement is valid.

Summary

Hari Krishan Verma, an Additional Assistant Engineer with Punjab State Electricity Board, faced disciplinary actions and was deemed inefficient. Upon attaining the age of 55, a High Empowered Integrity Committee examined his entire service record, including past misconduct, and recommended his premature retirement under the Punjab State Electricity Board Service (Premature Retirement) Regulation, 1982. Verma challenged the order, alleging it was punitive and stigmatic; the High Court quashed it, relying on R.K. Panjetha. The Supreme Court held that a compulsory retirement order is not a punishment and does not become stigmatic merely because it references past misconduct, and that an employer may consider the whole service record even after promotion. Consequently, the Court set aside the High Court's decision, allowed the appeal, and directed that Verma receive all benefits and dues of compulsory retirement.

Issues considered

  • The order of compulsory retirement is stigmatic or punitive in nature.
  • Whether past adverse entries lose significance after the employee's promotion for the purpose of retirement.
  • Whether the employer may consider the entire service record, including disciplinary proceedings, in deciding compulsory retirement.

Legislation cited

Subjects

compulsory retirementstigmatic orderpunitiveservice recorddisciplinary proceedingspublic interestemployer discretionpromotionadverse entries

Judgment

                    [2015] 3 S.C.R. 555



PUNJAB STATE POWER CORPORATION LTD.AND ORS.                    A

                             v.
                   HARi Kl SHAN VERMA

              (Civil Appeal No. 4784 of 2007)                  B

                     MARCH 27, 2015

     [DIPAK MISRA AND PRAFULLA C. PANT, JJ.]
        Service Law - Compulsory retirement - Order of
                                                               c
compulsory retirement of the respondent-Additional Assistant
Engineer at the age of 55 years- Committee took into account
the entire service record, the disciplinary proceedings initiated
against him, the punishment imposed, his efficiency in D
service and confidential reports - Challenge to, on the ground
that the order is punitive and stigmatic in character - Order
quashed by the High Court holding it to be stigmatic - On
appeal, held: Entire record can be scrutinized by employer
to adjudge the justification of continuance of the employee E
after reaching a particular age - Past adverse entries did not
loose significance on conferment of benefit of promotion -
Nature of order judges its character, namely, simpficiter or
stigmatic - In the order previous misconduct and the
punishment visited to the respondent, and the decision- F
making process of the Committee, the disciplinary
proceedings, personal records and the reputation was
reflected - Reputation has insegregable nexus, with his
ACRs and poor performance - Use of words like "inefficiency" G
and "not fit" cannot convey the meaning of "stigmatic" - Thus,
it cannot be said there was non-application of mind - Order
passed by the High Court set aside - Punjab State Electricity
Board Service (Premature Retirement) Regulation, 1982.
                                                               H
                            555
556      SUPREME COURT REPORTS              [2015] 3 S.C.R.



A         Allowing the appeal, the Court

         HELD: 1.1 The order of compulsory retirement is
  not a punishment. It also does not cast a stigma. But
  when by any incorporation or some reference or
B otherwise some stigma is attached to the order of
  compulsory retirement, it would be treated as an order
  of punishment, falling in a different compartment
  altogether losing its features of order of compulsory
  retirement under the Rules or Regulations under which
C he is not allowed to continue after attaining a particular
  age. [Para 11] (566-A-D]

         1.2 There can be no iota of doubt that the entire
  record can be scrutinised by the employer to adjudge
D the justification of continuance of the employee after
  reaching a particular age as contemplated in the
  Regulations. The submission that the past entries prior
  to the conferment of benefit of promotion lost
  significance, thus, the competent authority could not
E have relied upon the same while passing an order of
  compulsory retirement, cannot be accepted.(Paras .12
  and 16] [566-E; 569-B-C]

         1.3 On an anxious and careful scrutiny of the
F words used in the order, there can be no quarrel over
  the fact that previous misconduct and the punishment
  visited to the respondent have been stated. The
  decision-making process of the Committee !)as been
G reflected in the order. It includes the disciplinary
  proceedings, personal records and the reputation. The
  reputation has insegregable nexus, as is seen with his
  ACRs and poor performance. The use of words like
  "inefficiency" and "not fit" cannot be put on a pedestal
H to confer on them such status so that they convey the
   PUNJAB STATE POWER CORPN. LTD. v. HARi KISHAN 557
                    VERMA

  meaning of "stigmatic". It cannot be remotely so. It is A
  the nature of order which will judge its character, namely,
  simpliciter or stigmatic. The counsel for the respondent
, canvassed that one of the punishment was set aside. In
  such a case it would not make any difference. It cannot
  be said there was non-application of mind. The entire B
  record was scrutinized, valid punishments were taken
  into consideration and the ACRs were critically
  scrutinized. The order, dwells totally in a different realm
  than the order passed in *RK. Panjetha's case. The C
  distinction is obvious and same has been obviously
  missed by the H igh Court, which makes its order
  fallacious. Thus, the order passed by the High Court is
  set aside. The respondent would reap all the benefits of
  compulsory retirement and be paid all his dues. [Paras o
  18 and19] [570-E-H; 571-A-E]

       *R. K. Panjetha v. Haryana Vidyut Prasaran Nigam
       Ltd. & Another (2002) 10 SCC 590 - referred to.

       State of Orissa v. Ram Chandra Das 1996 (2)         E
       Suppl. SCR 559: (1996) 5 SCC 331; State of
       Gujarat v. Umedbhai M. Patel 2001 (2) SCR 170:
       (2001) 3 SCC 314; Pyare Mohan Lal v. State of
       Jharkhand and Others 2010 (11) SCR 216:(2010)       F
       10 SCC 693; Rajasthan SRTC v. Babula/ Jangir
       2013 (11) SCR 159: (2013) 10 sec 551 - relied
       on.

       Jaswantsingh Pratapsingh Jadeja v. Rajkot
                                                           G
       Municipal Corporation 2007 (10) SCR 1124:
       (2007) 10 sec 71 - distinguished.



                                                           H
558         SUPREME COURT REPORTS                 [2015) 3 S.C.R.


A                        Case Law Reference

      c2002) 1o sec 590          referred to.          Para 4

      1996 (2) Suppl. SCR 559 relied on.               Para 13
B     2001 (2) SCR 170           relied on.            Para 15

      2010 (11) SCR 216          relied on.            Para 15

      2013 (11) SCR 159          relied on.            Para 15
c     2007 (10) SCR 1124         distinguished.        Para 17

            CIVILAPPELLATE JURISDICTION : Civil Appeal No.
      4784 of2007

D           From the Judgment and Order dated 25.08.2005 of the
      High Court of Punjab and Haryana at Chandigarh in CWP No.
      12902 of 2004

            JayshreeAnand, Kuldip Singh for the Appellants.
E
           A. V. Patil, S. Punam Singh, Rekha Palli for the
      Respondent.

            The Judgment of the Court was delivered by

F           DIPAK MISRA, J. 1. The singular question that arises
  for consideration in this appeal is whether the order passed
  by the Punjab State Power Corporation Ltd. [erstwhile, the
  Punjab State Electricity Board (PSEB)], the first appellant
G herein, compulsorily retiring the respondent on attaining the
  age of 55 years is in accordance with Punjab State Electricity
  Board Service (Premature Retirement) Regulation 1982 (for
  short "the Regulation") is sustainable in law or is it vulnerable
  being ex facie stigmatic.
H
 PUNJAB STATE POWER CORPN. LTD. v. HARi KISHAN                559
            VERMA [DIPAK MISRA, J.]

        2. The factual score as depicted is that the respondent A
joined the services of the PSEB as a lineman on 6.2.1969. He
was promoted to the post of Junior Engineer on 4.12.1973
and while holding the post of Junior Engineer in a disciplinary
proceeding he was censured on 29.2.1988. In the year 1992
another disciplinary proceeding was initiated against him and B
he was visited with the punishment of stoppage of two annual
increments without cumulative effect under Regulation 5(4) of
Punjab State Electricity Board (Punishment & Appeal)
Regulation, 1971. He was also visited with stoppage of two C
increments with cumulative effect on 5.8.1993 in another
disciplinary proceeding.

        3. As the factual matrix would unroll the respondent
attained the age of 55 years on 19.4.2003, his date of birth
                                                                0
being 20.04.1948. A High Empowered Integrity Committee
(HEIC) was set up for screening the case of respondent for
his retention in service beyond the age of 55 years. As per the
regulations his case was considered by HEIC on 17.02.2004
and the committee after taking note of entire service record, E
the disciplinary proceedings initiated against him and the
punishment imposed, his inefficiency in service and the
confidential reports from 1992-2003, recommended his case
for premature retirement and accordingly an order dated
19.02.2004 was passed by the Chief Engineer.                    F

       4. Being dissatisfied with the aforesaid order the
respondent filed Civil Writ Petition No.12902/2004 in the High
Court of Punjab and Haryana at Chandigarh assailing the same
on the fundamental ground that the order is punitive and G
stigmatic in character as it entails penal consequences and,
hence, it was legally non-substantiable. The High Court
reproduced the order of compulsory retirement, placed reliance
on the order passed in Civil Appeal No. 3048 of 2000 titled
                                                               H
         o sec 590
1 (2002) 1
560         SUPREME COURT REPORTS                   (2015] 3 S.C.R.


A     R.K. Panjetha v. Haryana Vidyut Prasaran Nigam Ltd. &
      Another1 and after quoting a passage from the said order
      opined that the case of the respondent is covered by the order
      passed by this Court, eventually treated the order to be
      stigmatic and quashed it.
B
          5. We have heard Ms. JayshreeAnand, learned counsel
  for the appellants and Ms. Rekha Palli, learned counsel for the
  respondent. It is submitted by the learned counsel for the
  appellants that HEIC had perused all relevant records,
C mentioned the disciplinary proceedings and the punishment
  imposed on the officials and appreciating the entire service
  record had recommended for passing of an order of
  compulsory retirement and there is nothing to suggest that the
  order is punitive or stigmatic and the High Court has erroneously
0
  placed reliance on the order passed by this Court in R.K.
  Panjetha's case and set aside the order of compulsory
  retirement which really cannot withstand scrutiny. It is her further
  submission that when such an order is passed in accordance
E with regulations it is purely a simple compulsory retirement on
  the basis of assessment after attaining the requisite age by
  an employee and in the absence of anything stated in the order,
  the High Court could not have treated the same as stained.

F        6. Ms. Palli, learned counsel appearing for the
  respondent, in her turn, would contend that when the order
  expressly uses certain kind of language from which it becomes
  clear that it is stigmatic and hence, it loses the flavour of
  compulsory retirement which is passed under the regulations
G and, therefore, the High Court is justified in treating the same
  as punitive·. It is also argued that despite the imposition of
  punishment he had been promoted to the post.of Additional
  Assistant Engineer on 4.11.1999 and hence, his post prior to
  the said date should be regarded to have been washed off.
H
 PUNJAB STATE POWER CORPN. LTD. v. HARi KISHAN 561
            VERMA [DIPAK MISRA, J.]

Additionally, it is canvassed by her, as one of the punishments   A
has been taken into consideration wherein the respondent has
been exonerated and, therefore, the order of compulsory
retirement is otherwise flawed or faulted.

      7. To appreciate the contending proponements, it is         B
necessary to reproduce the order of compulsory retirement
passed by the PSEB. It reads as follows:-

          "PUNJAB STATE ELECTRICITY BOARD

     Office of Chief Engineer (South) Punjab State
                                                                  c
     Electricity Board, Patiala

     Office Order No. 166              Dated 19.02.2004

           Whereas Sh. Hari Krishan Verma JE-1                    D
     presently posted under Nabha Division Punjab
     State Electricity Board Nabha under Patiala has
     attained the age of 55 years on 19.04.2003
     because his date of birth is 20.04.1948.
                                                                  E
           Whereas as per Punjab State Electricity
     Board service premature regulation the case Sh.
     Hari Krishan Verma JE-1 was considered in the
     meeting held on 17.02.2004 by the HEIC which has
     been set up for screening the cases of Sh. Hari              F
     Krishan Verma JE-1 for retention's in service beyond
     the age of 55 years. The committee took note of
     disciplinary cases personal records and his
     reputation. The reports of disciplinary cases
                                                                  G
     indicates the Sh. Hari Krishan Verma JE-1 was
     served with the sheet/SCN, where in his three
     annual increments with future effect vide office order
     no. 27 dated 11.01.1983 two AGI without future
     effect vide office order no. 151 dated 09.03.1992,           H
562       SUPREME COURT REPORTS                      [2015] 3 S.C.R.


A         two AGI without future effect vide office order no.
          697 dated 05.08.1993, two AG I without future effect
      '   vide office order no. 858 dated 01.10.1999 two
          times censured vide office order no. 154 dated
          29.02.1988, office order no. 566 dated 08.08.2003.
B
                TheACR as well as disciplinary cases clearly
          shows that Sh. Hari Krishan Verma JE-1 has a poor
          record as well as poor performances and inefficient
          and not fit for retention in the service in Punjab State
C         Electricity Board.

               HEIC recommended that the official Sh. Hari
          Krishan Verma JE-1 might be premature retired. The
          Chairman ofHEIC in its meeting held on 17.02.2004
D         approved the recommendations.

                 The matter was further considered by the
          competent authority as per instruction circulated by
          the Punjab State Electricity Board, took the note of
E         recommendation of HEIC, service record general
          reputation as well as inefficiency of the official Sh.
          Hari Krishan Verma JE-1 and decided to prematurely
          retire Sh. Hari Krishan Verma JE-1 from the Punjab
          State Electricity Board service w.e.f 19.02.2004
F         without prejudice to the outcome of the pending
          disciplinary cases against him. The necessity for
          the personal hearing was not felt necessary because
          of his record available was sufficient for this
          decision.
G
                And as such Sh. Hari Krishan Verma JE-1 is
          required to be prematurely retired from the service
          from the Punjab State Electricity Board w.e.f.
          19.02.2004 as per Punjab State Electricity Board
H
PUNJAB STATE POWER CORPN. LTD. v. HARi KISHAN            563.
           VERMA [DIPAK MISRA, J.]

   service (Premature) regulation to be read with         A
   amendments issued from time to time.

         And whereas it is not feasible in the public
   interest to give three month notice in terms of
   regulations Punjab State Electricity Board service     B
   (Premature retirement) regulation 1982 and it has
   been decided by the competent authority to pay
   three months pay and allowances in advance in lieu
   of notice period.
                                                          c
         Accordingly a cheque no. 499574 dated
   19.02.2004 amounting to Rs. 62288.00 in favour of
   office Sh. Hari Krishan Verma JE-1 is hereby sent
   to official in lieu of pay and allowances of three
   months notice period.                                  D

         Now therefore, the competent authority in .
   exercise of powers to order that Sh. Hari Krishan
   Verma JE-1 is hereby prematurely retired from the
   service of board w.e.f. 19.02.2004 in terms of         E
   Punjab State Electricity Board (premature
   retirement) regulation to be read with amendments
   issued from time to time without prejudice to the
   outcome of pending disciplinary cases.
                                                          F
   Chief Engineer (South)
   Punjab State Electricity Board Patiala,
   Endst no. 2025                  Dated 19.02.2004
        A copy of the above is forwarded to senior Xen    G
   Nabha Div Punjab State Electricity Board Patiala
   to relieve Sh. Hari Krishan Verma JE-1 w.e.f.
   19.02.2004. A cheque no. 499574 dated
   19.02.2004 amounting to Rs.62283.00 in lieu of pay
                                                          H
564         SUPREME COURT REPORTS                   [2015] 3 S.C.R.


A          and allowances forthree months notice period and
           office order no. 166 dated 19.02.2004 be delivered
           to the official Sh. Hari Krishan Verma JE-1 and dated
           acknowledgement duly signed by him on full-scape
           paper be sent to this office for record.
B
                                        Chief Engineer (South)
                       Punjab State Electricity Board Patiala,
           Endst no. 2025                    Dated 19.02.2004
c               A copy of the above is forwarded to Sh. Hari
           Krishan Verma JE-1 office of SDO Punjab State
           Electricity Board Sub Division for information. He
           should treat him self relieved from service w.e.f.
           19.02.2004.
D
                                        Chief Engineer (South)
                       Punjab State Electricity Board Patiala"

             8. As stated earlier the High Court has placed reliance
E     on R.K. Panjetha's case. We are disposed to think that first
      we must reproduce the paragraph in which the High Court has
      stated how the order is stigmatic:-

           "On careful consideration of the facts of the case,
F          we are of the view that the impugned order
           Annexure P-1 is stigmatic and punitive in nature
           and therefore, it deserves to be quashed in the light
           of the observations made by the Apex Court in R.K.
           Panjeta's case (Supra). We are thus, satisfied that
G
           case of the present petitioner is squarely covered
           by the aforesaid judgment of the Apex Court."

           9. Keeping in view what has been stated in the
    aforesaid paragraph, it becomes imperative to refer to the
H
r
:

      .:PUN'J8~SJ~TE POWER...CQRP.N11,!.TQ; y.;H8Rl~lSH~N c5&5
                           VERMA [DIPAKMISRA,J.]                                  '·

       decision in R.K. Panjetha)s:P<ISealruthe1said.:;c;aseJLWhiJe ,A
       passing the order of compulsory retirement, PSEB took riote
      'Of tfied isCrpiifiaryproceedtr1gsliiitiatecfagainst the 1a'ppellant

I     'Uiereiri;rvarrou~ 'puiiisnmenfl 1m'i>os?cr;afici?penclency'1ot
     'tfiargeshee1 1arf<fthereafterstafetfthu~DS Z>lJf\ ed! TO OiOO
     of err.so 1nems1iJs1 '{lozfuqmoo to isb10 eril \(lt]nibmo::m brrn
     lot begT!le GPi:nmittee als0: opted, tl:!aLCIJ<Irge:~s.tie.et~o>zi ed
     as bo:1Q5/.C9of.2902;dated.&;9::1997,is.Pending.relating2noo
                                                                                         cB


     '{lo<:! iJ~rllle cpe. rjctd$wti i!as h. e. 1re m<I ine,d ~ P!>.te cJ1 :~ sri gitz
      .srngi.Executive..Enginee;JOP.):Pivisioo Ba,1Ja.ciurgC\rh.formite1
     sdw:sthe.reasoos tl:lat.h_e ,h?s yjolate9. tt!!'l lnstrvctions andv 1u8 §
     ,lnsrn .i ss_u ~d>2Z ~ 7.1 c'No rks,1tPf <I.Elis)~ <I mo u ottn g1iJlOJmo2
     s ni 1;Rs.;-2Qr28;243.d.~fcmain!en...anpes()fsWoJJ< L<Ibw ti
     1eb10 13ahadurgam i;ucn as dismantlemei:it of distribµtiov:e11iti
     1ebnu line;1rEt~rectiortof;li11esiJ~l!aggii:ig:ofJ<qnciuctpr:oo to
     1s:uoLan~,r~layJng, .of -!'lerviw.:c;a!:>Je.s.t.Wherna§rP!i'l.<1te1::iiriw J)
             labour was to be engaged only after fully deploying .sgs
             the departmental labour and in no case the
     1sb10  mam1enance      was toi5e entrusted tdlnecantractor
     sl!;hc; faioolif.i Whereas ·ille "Officeffengaged rt11ei~rivate22eq E
     crit 1o6on1iacfor hmaunilrig t'c>RS': 1606"against 23 Wciri<s-:1 b o1
     s::in s::.-Ql·crefs'fo~bonsfriictloii wcirl<s bytaking-excessiveilnco
     ncc;u fmeasuremerit th'roughtethiiicalsubordinates;:>narl brm
      Jnsms1iis1 '(lOciuqmo::i 'to 1sb10 ns gnizzsq nfiriw ems<> eril
      bebn<:And;fo1md cthat: S.hrL8;K~R.anjettia)s;\l!1fi! to, !?.~1eriT                 F
    1 esrl Jr:allowed extei'isi.09 beY?r:td,tl;le,,age,9f:59¥EiJars,}nsd erH             '
    'icr::d 10:.01f1~~la9tJ ~iilrtifr'ar1~.gm;;?J~£\ci'Br<leFiffsnw~
             1

     'cie~~~t~at' 'it''tia'5'~' ;aifi~ici~liiJilt3\Ir:'F\~;'fCrerJ/S' 1iJ!.1h'~
      chargesheet pending against the incumbent and s~BOR8, ffie(e
                                                                              1


     Js. also reference: puttirig)re~p_OIJS[blli!J', P[l; hiCTr fOJrmaking ,9
      excess payment .toJhE? private .cqoJr~<:<tors_alJ~ ~?l!!P~!a~ii;ig
      excess measurement through technical subordinates. The
     ·ane9aUcirisgraph1ca11Yrevea1vi01au0n'"ofinstructions. There
      can be no shadow of doubt such an order ha~ ~~f:,Q ~~L~J:W~ ,1;1

                                   •.
566        SUPREME COURT REPORTS                   (2015} 3 S.C.R.


A two-Judge Bench to be stigmatic.

          11. Coming to the case at hand, as we find from the
  order it has reflected on the order passed in the past, taken
  note of the ACRs and opined that the respondent was unfit
B and accordingly the order of compulsory retirement came to
  be issued. In this backdrop the question that has emerged for
  consideration whether such an order can be treated as
  stigmatic. It is well settled in law that the order of compulsory
  retirement is not a punishment. It also does not cast a stigma.
C But when by any incorporation or some reference or otherwise
  some stigma is attached to the order of compulsory retirement,
  it would be treated as an order of punishment, falling in a
  different compartment altogether losing its features of order
D of compulsory retirement under the Rules or Regulations under
  which he is not allowed to continue after attaining a particular
  age.

          12. Prior to dwelling upon the issue whether the order
E passed in this case is stigmatic or not, we think it appropriate
  to deal with the contention whether the past entries prior the
  conferment of benefit of promotion have lost their significance
  and hence, the competent authority could not have relied upon
  the same while passing an order of compulsory retirement.
F There is no cavil over the fact thatthe respondent was extended
  the benefit of promotion to the higher post. The issue that has
  been raised by the learned counsel for the respondent is that
  after the promotion the earlier adverse entries totally lost their
  signification.
G
          13. To appreciate the said submission, we think it
  appropriate to refer to certain authorities in the field.

            14. In State ofOrissa v. Ram Chandra Das2a three-
H   2 (1996J s sec 331
       PUNJAB STATE POWER CORPN. LTD. v. HARi KISHAN                       567
                  VERMA [DIPAK MISRA, J.)

    Judge Bench has emphatically held that object behind A
    compulsory retirement is public interest and, therefore, even if
    an employee has been subsequently promoted, the previous
    entries do not melt into insignificance. To quote:-
~
                  "7 .... Merely because a promotion has been given         13
                  even after adverse entries were made, cannot be a
                  ground to note that compulsory retirement of the
                  government servant could not be ordered. The
                  evidence does not become inadmissible or
                  irrelevant as opined by the Tribunal. What would be       c
                  relevant is whether upon that state of record as a
                  reasonable prudent man would the Government or
                  competent officer reach that decision. We find that
                  selfsame material after promotion may not be taken        I
                                                                            D
                  into consideration only to deny him further promotion,
                  if any. But that material undoubtedly would be
                  available to the Government to consider the overall
                  expediency or necessity to continue the government
                                                                            I
                  servant in service after he attained the required         E
                  length of service or qualified period of service for
                  pension."

            15. The aforesaid dictum has been approved and
    followed in State of Gujarat v. Umedbhai M. PateP· wherein
                                                                            F
    emphasis has been laid on the factum that entire service record
    of the government servant is tc; be examined. Same principle
    has also been followed in another three-Judge Bench decision
    in Pyare Mohan Lal v. State of Jharkhand and Others4                   I
                                                                            I·'-
    Slightly recently, a Division Bench in Rajasthan SRTC v.               G. i
    Babula/ Jangit°, after discussing number of authorities, has
    held thus:-
                                                                                i
                                                                                "..
    3 (2001) 3 sec 314
                                                                            H
    4 (201 o) 1o sec 693
    5 (2013) 10 sec 551
    (::: ''"'l"I""' .., ("........... """ r::
•--                                                      .. -----~~~•.

                                                                                                                              PUNJA~ SiA\E POV'JERCQ8f.>N:L1:0;,v,:H~RI t<ISHAN 1..56~
                                                                                                                                                                                                                                  '
                                                                                                                                                   VERMA [DIPAK MISRA, J.]
 '568 V1AHsliPRE.ME: col.l,Eii'FfE~ORTs':J~~ 3,[2o1sj3 'ifc.'R..                                                                                                                                                               '<''


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                    and the ·o6seRfationsoftti1sc'ourtirfSta1ecifPutijab"iiln·J
                                                                                                                                   to integrity of a person then that may be sufficient                  13                       I
                  rKl\;~Hill~e ,filn~r&it9rm!'& ~tt:£\.!.tt~htii1ce,~~v-~r~e
                                                                                                                                                                                                                                il1·
  8                                                                                                                                  tojustify the" ordef°orpremature· retirement of the                                          '
                                                                                                                                                                                                                                i'dl
                  ;,e{1rJ3.~ne9~Jot9nt_h~ .. ~~~!nRt\<;>J1.,Bft~?f~Jry~.)\qf .                                                      govetf'nnent se'r\tant."J2i1 f; fffi0l1'olq '(10i~)Glz:J£2 n \J
                                                                                                                                                                                                                                       1




                                                                                                                                                                                                                                "'
                  s1u 1 PJ~.~.9Yr R,~rr JrRL~~~~ rltB Wi:i~~ s~~~ ~r~D~,t
                                                                                                                                                                                                                                I<
                                                                                                                                    tud ,tns1811ib nsed svr;r\ Jnn:rn 19Hs111 srU ,!nrJ\.3qqc
                  s~ 1 P:v,RITt.m;iq,a~~1Pn1t~~e\hl~J?,tiq8q~IJ\1:.Yh\1e·                                       .                   1r.16.' In view. olthe..afo~esajd stateroel')tqOav-1.:tl1ere can
                                                                                                                              be no.iota of.doubt ~ha~,the .entirerecor? can .b~ sc;\"U~iriised by C
                                                                                                                                                                                                                                1!!1
                                                                                                                                                                                                                                '.,1II
                  1'2PO~lf!e!i1.~.y1,Jhr s~X~~~,I~ P,r,Ff0JmJtn~,15rPJ~!~~ .·.                                                                                                                                                   :11

  c               s~P. 1.~~7~,~J~enit~9W~.~1,t9J~;:,1S~D~~7.~~~gr,Rf                                                          the er:nployerto adjudg~ tlJe justi~cation, cit. coptiJJIJ?ll.00.., of the
                                                                                                                              employee afteuE'laching a. particuJa.r age_al;,C()!lt~J11.P.!?ted in
                                                                                                                                                                                                                                 11


                  r~~~,?J ~ .,~t. ~'TIP..!~Y~~ f,0.~ ~~7,rl]~~~&~. f7~r~m,~iit.s 1
                                                                                                                                                                                                                                  ,,



                  '23~Tfie principle ot"lawwhichisclaiifieOana ·stands .
                                                                                                                              the Regulations.,J.\'lis~be\ng;tl:le P.?!?itioll;()t)~w.-~eiJ1ave no                                1i


                                                                                                                               hesitation io ~oldjng that!IJe 5uqml!i!?iQ.n of M!?J.B.E!'51:1a,J'alli is 0
                  t ciYsta1iiseci' atter 111e Jud9ment in
                                             1
                                                              'Mo'hanLai    'Pra're                                            sans ~.ubstancer.c; ;;i li 1ud dol r; 1oi s\d£;liuz11u bnuo! ;;,sw          ~.
                   v:  state of JhaikhanC!is that afiehne'promotiorl"ot
 D
                    an. employee: the' adverse' 'entries''"piior'tfier'eto                                               ~
                                                                                                                                       9 'f'i.'TW~WJ;>d· ~58~~'Wh1t~\~1~€C1oWi1·r.....,,11rr".r·--,··:·rn
                                                                                                                                                                                Jti~~ wileffier the
                  \vollid have norelevance'aria"ca'n b"e1trsated'as                                                             order passed by the employer is stigmatic" so as'to lose the
                  :wiped c otf· when' ttietcase 10Ffhe 19ove'riiment .                                                          flavouri of ~co[TlPIJlsory, rE'l1\re.rne.nt. Y1bi~IJ,1d.()E!~\1)9! 1 11.ave the E
                  ~employee is to' he'consfdereCi for furtfier proriiotian:                                                     attributes of punishment;. Leamed. pqun,se\fo~i\l.e,..appella,l),t§ -
  E               1 However.''thisc·wa'shed:ott 'theory''\vill'.tiave'no                                                        would contend that whatever has been stated Jn"tJ:ie_.PfHef,J?Y
                 'application\>Jtlen"the 'case of einployeEiis'being  an                                                         no stretch of imagination, can be said that it would constitute
                   assessed to determine whether he is fit tci'.be                                                               1eX'~faci~rsligiiiatic: Pef'contra7 learned rc;ourise\!for the
          bn' t!~Je\~~~ Nl<~~~'i]Re,1~r".r~qp/re"~ N~ be, giv~n                                                                  'fesp0noeritwou1d give·emphasls'on thewords~re~utation";, F.1
  _
      ,
            ·0    COl')'lpuh;ory retirem_ent.J"~e rat10J'lale,given is that .. ""'
          n\...,l911~J •-lj>,• \ -.d.ttJt04.~A.J..,.•.l,t\l .-.t ''~''.;;-t·~ ...,..- t~-' -.J.l~<,\(• ' ' __ :.,.},v\            •gene'raffeputati'on~; ~rnefficiency'!and ~riot finiTo tiolsferher
  F       rn_ c:i0~Lf!,9T1t::PEh1 ~.f'.,':'~~.~.~.~~Wrnt i~,~~~~.~,,~n;·~~J~f~riG·_.ns                                            subfuissioll1: ·~h'el<nas''draWnlfin'splratlon·ifrom'>ttie
            I   ; serv.1ce.record".     there 1s no question of not ta~mg 3 1·.,,                                                 i>i'onouiicemenr in'Jaswantsirigh'.f>ratapsingh 'Jadeia v.
          s ~~~rlntb"'ccl"~iife~~~ti~n~the'Eiarliei     . 01a· acivers'e ~'Of''es ' ' 2·~                                          Rajlcot'• Muii1Clpal 1Corpofaticin8Ji1ril the' said ','.tase',Slhe
          ?~1~ 1 or ~coRT ~?jfle"old'1 iierlo~'. We 'mayhasten'icl'~~(l s,~ ':
               1 8
                                                                                                                                   appellant; whilecin' pfobation tiad 'got e5ctensions'in·respect of G
            ~ " th~twti'l~~s'u~h" ~~ r'gcl)i-a''ca~ be :'a~~n'' into{\-~
 """" .'1 '01 .... v ti):i~\~ ..:,i:j\~1' 1il dJ11~-,u 1!01c1~U t.> ~;..:i10:)~~1 ..·,,·nD'i..:1
                                                                               i
                                                                                                                                  protiatior{and hewas'ser\ied'a"shovicause'notice"to explain .....
 G    , rl ..consideration, atUie              same time tbe seiv1ce record :· -                                                   'oii tile'alleged ~miscoriduct'ot 1 rein·aining 1atise11t' from tduty
      .~s · "'df'i~~·1;nn;~'illate 1p'asii:l~H~a'Wll1 ~:..'e·iCi'tig 1?i!v~'~'"·ub·~.:..rl···
                                                   .
             due ere dence and we1ghtage. or examp1e, as
                                                             F                  ,,,un ,s                    1                      witnoUt leave:'After thec'ause was'showri bY tlim~the inquir)t
                                                                                                                                    0 d~ ,,.,r.,t,...,.. .., ,,rl• n0 .OB '(\910rf1S1 s:J !onnr:.o Jf .''::>i1G.rt1git2" .lo
          against some very old adverse entrieswherethe-·-·- ..                                                                   ~.<~~OJ),.1~, ~5£ 7J.:::;:;'11.'J cG'v'I (r.;iq:.J2) m\\;o}\._nr,O. JIS\ ni 1sb10 ,11
 f.j 1 1998 4 sec 92                           He 003 c (taos;)£
            (       )       '·                                                         cca Xl2 Ot (OtO'.':) l>
                                                                                       rec :io2 or (LtC~J a
  PUNJA~ STATE POWERCQ8f.'l:'J;L"'(D,·,v~ H~RI f<ISHAN 1_56~
                        VERMA [DIPAK MISRA, J.]

!u;;gJrnrnedia!eJpast1r_eco.rd:!stioY{~;9-l<ernp,larY1 !c;ril                                                                         A
:Jmo: performar:iet},· ig(lorjQgsucti..a rec~rd. ofrec:.:e,11t pash t•n 9
~o 19Lai;id acti(lg_<;mly 9i;i,tnepa~is .C?f ql9,?d.v~r~E:l E!rl~~es1 ,srnii
b\eirl (to.retire a, per,sori Wil\ be.a. c2ear,exa!J1pJe ()~arl?itr~!Y it:db
        exercise of power. However, if old record pertain§\ioi <:G
        to integrity of a person then that may be sufficient       B
                                         or
        tojustify the" order' prehiat\.rre· retirement of the
        govemmentservant.~'0'1f;rmo11sq ·,1o;~)Gt2:is2nu
        !ud Jns1811ib nsed svr;rl ii'1f!:rn 19Jts111 srU ,!nrJ!·3qqc
        1r.16.' In view. olthe_afo~esajd statemet')tqfJav.i.:tlJere can
be no.iota of.doubt that.the .entir.erecor? can .b~ sc;ru_tinised by g
the employetto adjudg~ tlJe justi~catio(\ cif. copt\.l)\lall.~ of the
employee afteu~aclJing a particu]a.r age_a5,c9nt~fl!P.)?ted in
the Regulations.,J.tiis~being ;tt:ie.. P.?!?itio11; c:>Uaw.-~ E!J1a,ve no
hesitation\o ~aiding that!IJe su~mls!?i()_n ()f M~... B.~~ha, _Palli is
                                                                          0
sans ~-ubstancer.G 2i ii' 1ud.doi r; 1oi sldr;Jiu211u bnuo! zsw           ~·
        9
            'f7:rW;;w~-XT~'S~~.'Wh16!,
                         ·
                                      1
                                        \~'t~€C1o~i1
                                                     dli~~ wt1effierthe
                                                    ·r.....,,11rr"".r·--,··:·..-n
 order passed by the employer is stigmatic' so as'to'lose the
flavourJ of:Co[TlP~lsolY: re!!re_rne11twbif:h,1d.C)E?~lr:19M1,ave the E
 attributes of punishment. Leamed. pqun,selfo~~h.e,..appeTI<!~t§
 would contend that whatever has been stated Jn,Jhe_.PJE.E1.r,J)y
 no stretch of imagination, can be said that it would constitute
1
 e'x'~fac;ersligiriatic? Pe('contra? learned rc;ourisel!for the
'fesp0naeritwou1d give ·emphasis 'on the words ~reputation•;,
i<g'iine'rarieputatiCin~; ~rnefficielit:y~anil ~not fit"liTo tiolster her Fi
 slibfuiss!on1: ·sh'el'has"cirawhlfin'splratlontfrom"ttie
pronouiicemehr                       in<1aswan tsingh'.f>raiapsingh 'Jadeja v.
 Rajfcot' Miiiilclpal 1Ci:ii'pcifa tioi18Jl1nl the' said >case~Sthe
appellan~ while-cin' probation' Ii ad 'got extensions' in' respect of §
protiation'and heWas'seriJed~·snov/"'cfause'notice'to explain
'on°file'ane·ged1Tiiscoriduct 'oPrerriair\ing 'absent' from tduty
witnout leave:'After           tnecause               was' shown by him~the inquif'Y
0 d~ ,,..11:.. .,t .... ,.. .., nrl• riO .OB \'.\e1orr1s1 s:J Jonnr:.o if .'':Ji1G:rngit2".lo

~.(f.OOJ>_,1~,~~-S 7J,:;;:;\ y,•J ?.GVI (r.;1q:J2) m\\;o}\._n:;C\ JIS\ ni 1Gb10                                                      ,1-;t




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570         SUPREME COURT REPORTS                     [2015] 3 S.C.R.



A that was initiated against him was not brought to its logical
      end and his period of probation was extended and after some
      time, he was discharged. This Court reproduced the order of
      discharge and after analysing many an aspect, came to hold
      as follows:-
B
            "If the satisfaction of the employer rested on the
            unsatisfactory performance on the part of the
            appellant, the matter might have been different, but
            in that case, from the impugned order it is evident
c           that it was not the unsatisfactory nature and
            character of his performance only which was taken
          · into consideration but series of his acts as well,
            misconduct on his part had also been taken into
            consideration therefor. It is one thing to say that he
D
            was found unsuitable for a job but it is another thing
            to say that he was said to have committed some
            misconduct."

E            Thus, it is limpid that the language employed in the said
      case is quite different and hence, the decision is
      distinguishable.

           18. In the present case, on an anxious and careful ·
  scrutiny of the words used in the order, there can be no quarrel
F over the fact that previous misconduct and the punishment
  visited to the respondent have been stated. The decision-
  making process of the Committee has been reflected in the
  order. It includes the disciplinary proceedings, personal records
G and the reputation. The reputation here has insegregable nexus,
  as is seen, with hisACRs and poor performance. The use of
  words like "inefficiency" and "not flt" cannot be put on a pedestal
  to confer on them such status so that they convey the meaning
  of "stigmatic". It cannot be remotely so. On the contrary, the
H order in R.K. Panjetha (supra) was ex facie stigmatic. It is
 PUNJAB STATE POVl/ER CORPN. LTD. v. HARi KISHAN 571
            VERMA [DIPAK MISRA, J.]

worth noting that the learned Single Judge has drawn a parity        A
solely on the ground that the relationship between an employer
and employee is common and the employer PSEB has passed
the order on two different occasions in respect of two different
employees. Their status is absolutely irrelevant for the purpose
of determination of the controversy in question. It is the nature    B
of order which will judge its character, namely, simpliciter or
stigmatic. The learned counsel for the respondent has
canvassed with immense enthusiasm that one of the
punishment has been set aside. Be that as it may, in such a          C
case it will not make any difference. It cannot be said there is
non application of mind. The entire record has been scrutinized,
valid punishments have been taken into consideration and the
ACRs have been critically scrutinized. The order, according to
us, dwells totally in a different realm than the order passed in     D
R.K. Panjetha's case. The distinction is obvious and same
has been obviously missed by the High Court, which makes
its order fallacious.

        19. Resultantly, the appeal is allowed and the order E
passed by the High Court in Civil Writ Petition No. 12902/2004
is set aside. The respondent shall reap all the benefits of
compulsory retirement and be paid all his dues, if not paid,
within four weeks hence. There shall be no order as to costs.

Nidhi Jain                                         Appeal allowed.


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PUNJAB STATE POWER CORPORATION LTD.AND ORS. versus HARI KLSHAN VERMA — 2015 INSC 982 - Legal Desk AI