Supreme Court Hears Appeal Against Delhi High Court Strictures on Lt. Governor in Public Interest Litigation. Appeal Seeks Expunction of Remarks That Administrative Decision Not to Transfer Hospital Director Was Illegal and Malafide.

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Case Note & Summary

The appeal arose from a judgment of the Delhi High Court in a public interest litigation concerning alleged massive financial irregularities in G.B. Pant Hospital. The writ petition was filed by Peoples Union of Civil Liberties and Delhi Medicos' and Scientists' Front alleging that Dr. A. Khalilullah, the Director of G.B. Pant Hospital, was responsible for financial fraud involving more than Rs. 39 crores. The petitioners sought immediate suspension of Dr. Khalilullah, registration of a criminal case under the Prevention of Corruption Act, and recovery of wasted public money. The High Court, after considering various inquiry reports including the Arora Committee and Gupta Committee findings, concluded that the Lt. Governor's decision not to initiate disciplinary action against Dr. Khalilullah and not to shift him from the post of Director was vitiated by illegality, irrationality, arbitrariness and malafides. The High Court also observed that the decision appeared to have been dictated by external pressure, specifically from Shri A.N. Verma, Principal Secretary to the Prime Minister. Consequently, the High Court directed that Dr. Khalilullah should not function as Director and should hand over charge. The present appeal was filed by the Lt. Governor of Delhi seeking expunction of the adverse remarks made against him. The appellant argued that he was not a party to the writ petition and was not given notice or opportunity to be heard, that the transfer decision was purely administrative and discretionary, and that he had exercised his discretion bona fide after weighing all circumstances. The appellant denied any influence from the Principal Secretary to the Prime Minister. The respondent contended that the Lt. Governor's role was necessarily under scrutiny for granting relief against Dr. Khalilullah, that the court was entitled to examine whether public authority exercised power fairly, that the note sheets revealed external pressure, and that no prejudice was caused by lack of impleadment. The Supreme Court considered these contentions and the materials on record; however, the provided judgment text ends before the final operative order, so the final decision is not available in the extracted portion.

Headnote

A) Natural Justice - Audi Alteram Partem - Strictures Against Non-Party - The High Court passed strictures against the Lt. Governor of Delhi who was not impleaded as a party in the writ petition and was not given notice or opportunity to be heard; the appellant contended that no strictures could be passed without hearing him; the court considered whether the principles of natural justice were violated - (Paras Not mentioned)

B) Judicial Review - Administrative Discretion - Transfer and Disciplinary Action - The decision not to transfer or suspend Dr. Khalilullah was an administrative act within the Lt. Governor's discretion; the High Court held that the decision was vitiated by illegality, irrationality, arbitrariness and malafides; the appellant argued that the discretion was exercised bona fide after weighing pros and cons and that no external pressure influenced the decision; the court examined whether such finding was justified absent evidence of malafides - (Paras Not mentioned)

C) Expunction of Remarks - Strictures in Judgment - Power to Expunge - The Supreme Court has power to expunge strictures passed by a lower court if they are not integral to the judgment and cause prejudice to the person concerned; the appellant sought expunction of the strictures on grounds of lack of notice and lack of necessity; the respondent argued that the strictures were necessary to grant relief and that no prejudice was caused as the appellant had opportunity to explain in expunction proceedings - (Paras Not mentioned)

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Issue of Consideration

Whether the Delhi High Court was justified in passing strictures against the Lt. Governor of Delhi who was not a party to the writ petition and was not given notice or opportunity of hearing; Whether the strictures were necessary and integral to the judgment; Whether the administrative decision of the Lt. Governor not to shift Dr. Khalilullah could be characterized as illegal, irrational, arbitrary and malafide; Whether the strictures should be expunged.

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Law Points

  • Principles of natural justice require notice and opportunity before passing adverse remarks
  • Strictures against a non-party without hearing are impermissible
  • Judicial review of administrative action limited to arbitrariness and malafides
  • Administrative discretion cannot be interfered with unless exercised malafide
  • Expunction of remarks is warranted when not integral to decision and cause prejudice
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Case Details

1996 LawText (SC) (05) 43

1996-05-10

G.B. Pattanaik, S.C. Agrawal

1996 SCC (4) 262 JT 1996 (5) 381 1996 SCALE (4)652

K.K. Venugopal (for appellant), Shanti Bhushan (for respondent)

Shri P.K. Dave (Lt. Governor of Delhi)

Peoples Union of Civil Liberties (Delhi) & Ors.

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Nature of Litigation

Appeal by Special Leave against strictures passed by Delhi High Court in a Public Interest Litigation concerning alleged financial irregularities in G.B. Pant Hospital.

Remedy Sought

Appellant (Lt. Governor of Delhi) sought expunction of strictures made against him by the Delhi High Court in its judgment dated 26.5.1995.

Filing Reason

The High Court passed strictures holding that the Lt. Governor's decision not to initiate disciplinary action against Dr. Khalilullah and not to shift him from Director post was vitiated by illegality, irrationality, arbitrariness and malafides, and that the decision was dictated by external pressure.

Previous Decisions

Delhi High Court decided Civil Writ Petition No. 3032 of 1994 on 26.5.1995, passing strictures against the appellant and directing that Dr. Khalilullah should not function as Director. Dr. Khalilullah moved the Supreme Court by SLP, which was disposed of on 5.6.1995 directing Central Government to decide disciplinary action by 15.6.1995.

Issues

Whether the Delhi High Court was justified in passing strictures against the Lt. Governor who was not a party to the writ petition and was not given notice or opportunity of hearing. Whether the strictures were necessary and integral to the judgment or wholly uncalled for. Whether the administrative decision not to transfer or suspend Dr. Khalilullah could be characterized as illegal, irrational, arbitrary and malafide. Whether the strictures should be expunged.

Submissions/Arguments

Appellant: No strictures could be passed without notice and hearing; the transfer decision was purely administrative and discretionary; the decision was taken bona fide after weighing pros and cons; no connection with request by Principal Secretary to Prime Minister; strictures uncalled for. Respondent: The role of the Lt. Governor was under scrutiny for granting relief; the court is entitled to examine whether public authority exercised power fairly; note sheets showed external pressure from Principal Secretary to Prime Minister; no prejudice from lack of impleadment as appellant had opportunity to explain in expunction proceedings.

Judgment Excerpts

(a) We would hold that the decision of the Lt. Governor, Delhi, not to initiate disciplinary action against respondent no. 2 and not to shift him from the post of Director, G.B. Pant Hospital, is vitiated by illegality, irrationality, arbitrariness and malafides and hence it has no legal sanction. It is declared accordingly. (b) In fact by rejecting the suggestion of the Secretary and the Chief Secretary to transfer Dr. Khalilullah the Lt. Governor acted in an arbitrary and unreasonable manner and abused his power. (c) The Lt. Governor overruled and rejected the suggestion of the Secretary and the Chief Secretary in an arbitrary and unreasonable manner. No fair minded authority could have rejected the suggestion in the given circumstances. (d) In these circumstances the learned counsel for the petitioners is justified in alleging that the decision not to take disciplinary action against Dr. Khalilullah and not to shift him from the post of Director of G.B. Pant Hospital was not taken by the Lt. Governor on his own and that it was dictated by someone else, that is, Shri A.N. Verma who is stated to be a close friend and personal patient of Dr. Khalilullah.

Procedural History

Writ Petition No. 3032 of 1994 filed before Delhi High Court by Peoples Union of Civil Liberties and Delhi Medicos' and Scientists' Front against State of Delhi, Union of India and Dr. Khalilullah. Delhi High Court delivered judgment on 26.5.1995 making adverse remarks against Lt. Governor and directing Dr. Khalilullah to relinquish charge. Dr. Khalilullah filed SLP in Supreme Court, disposed on 5.6.1995 with direction to Central Government. Thereafter, Lt. Governor filed present appeal by special leave seeking expunction of strictures.

Acts & Sections

  • Prevention of Corruption Act, 1988:
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