Supreme Court Upholds Union's Appeal Against Tribunal's Reinstatement of Railway Employee in Disciplinary Authority Delegation Case. Divisional Railway Manager Held Competent to Impose Removal Under Rule 2(a) and Rule 9 of Railway Servants (Discipline and Appeal) Rules Because Delegation of Disciplinary Power Was Permissible and Not Barred by Sub-Delegation Doctrine.

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Case Note & Summary

The dispute arose from the removal from service of a railway employee, N.V. Phaneendran, who worked as a Travelling Ticker Examiner in the pay scale of Rs.425-640. The Divisional Railway Manager imposed the punishment of removal from service. Phaneendran challenged this removal before the Central Administrative Tribunal, contending that the Divisional Railway Manager was not the appointing authority and thus lacked competence to impose such a punishment. The Tribunal accepted this contention and by order dated November 15, 1989, set aside the removal from service. The Union of India and others, aggrieved by the Tribunal's decision, appealed to the Supreme Court by special leave. The only point urged on behalf of the respondent before the Tribunal, as recorded in paragraph 4 of the Tribunal's order, was that the Divisional Railway Manager not being the appointing authority was not competent to impose punishment of removal. The Supreme Court considered whether that finding was correct in law and whether the matter should be remitted to the Tribunal for consideration of other contentions. The Court referred to its earlier decision in Scientific Adviser to the Ministry of Defence and others v. S. Daniel and others, 1980 (2) SCR 440, which interpreted Rule 2(a) and Rule 9 of the Railway Servants (Discipline and Appeal) Rules. In that case, it was held that it would be impossible for the President to deal with all disciplinary matters of government employees, and therefore delegation of appointment power was made to the General Manager and disciplinary power was delegated to the Divisional Manager. The General Manager was not the delegator, so the doctrine that a delegator cannot further delegate his powers had no application. Consequently, delegation of power to impose appropriate punishment was permissible. Applying this binding ratio, the Supreme Court held that the Tribunal's order was clearly illegal. On the respondent's alternative prayer for remitting the matter to the Tribunal to agitate other contentions, the Court rejected it because the only point argued before the Tribunal was the competence of the Divisional Railway Manager, and there was no justification to remit the matter. The appeal was accordingly allowed, the Tribunal's order was set aside, and no costs were awarded.

Headnote

A) Service Law - Disciplinary Authority - Delegation of Power - Railway Servants (Discipline and Appeal) Rules, Rule 2(a), Rule 9 - The Divisional Railway Manager was held competent to impose removal from service on a Travelling Ticker Examiner despite not being the appointing authority because the President delegated appointment power to the General Manager and disciplinary power to the Divisional Manager; the General Manager was not a delegator, so the doctrine that a delegator cannot further delegate had no application - Held that the Tribunal's order setting aside removal was illegal and based on an erroneous premise; appeal allowed (Para 4).

B) Service Law - Scope of Tribunal's Consideration - Remand - Railway Servants (Discipline and Appeal) Rules - The respondent contended that other merits should be remitted, but the only point argued before the Tribunal was the competence of the Divisional Railway Manager; therefore there was no justification to remit the matter - Held that since the controversy was limited to that point, the matter need not be remitted and appeal allowed without costs (Para 4).

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Issue of Consideration

Whether the Divisional Railway Manager, not being the appointing authority, was competent to impose punishment of removal from service on a railway employee; whether the matter should be remitted to the Tribunal for other contentions

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Final Decision

The appeal was allowed. The order of the Central Administrative Tribunal was set aside as clearly illegal. The removal from service by the Divisional Railway Manager was upheld. No order as to costs.

Law Points

  • Delegation of disciplinary power to Divisional Railway Manager permissible under Rule 2(a) and Rule 9 of Railway Servants (Discipline and Appeal) Rules
  • General Manager is not a delegator so doctrine of delegator cannot further delegate has no application
  • ratio of Scientific Adviser to the Ministry of Defence v. S. Daniel is binding
  • unless a point was argued before the Tribunal it cannot be remitted for fresh consideration
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Case Details

1995 LawText (SC) (08) 30

1995-08-29

K. Ramaswamy, B.L. Hansaria

1995 SCC (6) 45, 1995 SCALE (5) 355

Union of India and Others

N.V. Phaneendran

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Nature of Litigation

Service law dispute challenging removal from service of a railway employee on the ground that the disciplinary authority lacked competence.

Remedy Sought

The Union of India sought to set aside the Central Administrative Tribunal's order that had quashed the removal from service; the respondent employee initially sought to quash the removal order and later sought remand for other contentions.

Filing Reason

The Central Administrative Tribunal had set aside the removal from service, holding that the Divisional Railway Manager was not the appointing authority and hence incompetent to impose punishment.

Previous Decisions

Central Administrative Tribunal, by order dated November 15, 1989, set aside the removal from service, accepting the contention that the Divisional Railway Manager was not the appointing authority and therefore not competent to impose punishment of removal.

Issues

Whether the Divisional Railway Manager, not being the appointing authority, was competent to impose punishment of removal from service under the Railway Servants (Discipline and Appeal) Rules. Whether the matter should be remitted to the Central Administrative Tribunal for consideration of other contentions raised on merits.

Submissions/Arguments

The appellant Union of India contended that the issue was no longer res integra and was squarely covered by Scientific Adviser to the Ministry of Defence v. S. Daniel, under which delegation of disciplinary power to the Divisional Manager was permissible; therefore the Tribunal's order was illegal. The respondent contended that since several contentions on merits were raised, an opportunity should be given to agitate those questions by remitting the matter to the Tribunal. The respondent before the Tribunal had argued solely that the Divisional Railway Manager not being the appointing authority was not competent to impose punishment of removal.

Ratio Decidendi

Delegation of disciplinary power to the Divisional Railway Manager is permissible under Rule 2(a) and Rule 9 of the Railway Servants (Discipline and Appeal) Rules. The General Manager is not the delegator of that power; therefore the doctrine that a delegator cannot further delegate his powers has no application. The ratio in Scientific Adviser to the Ministry of Defence v. S. Daniel is binding. A matter cannot be remitted to the Tribunal for contentions that were not argued before it.

Judgment Excerpts

On a reading of Rule 2(a) and Rule 9 of the Railway Servants (Discipline and Appeal) Rules, it was held that it would be impossible for the President to deal with all the disciplinary matters of the Government employees. Therefore, delegation of appointment power was made to the General Manager and disciplinary power was delegated to the Divisional Manager. The General Manager is not the delegator. Consequently, the doctrine that a delegator cannot further delegate his powers to the delegatee has no application. The only point that was urged before us by the learned counsel appearing for the applicant is that the Divisional Railway Manager not being the appointing authority is not competent to impose a punishment of removal from service on the applicant who is a Travelling Ticker Examiner in the pay scale of Rs.425-640.

Procedural History

N.V. Phaneendran, a Travelling Ticker Examiner in the pay scale of Rs.425-640, was removed from service by the Divisional Railway Manager. He challenged the removal before the Central Administrative Tribunal. The Tribunal, by order dated November 15, 1989, set aside the removal, holding that the Divisional Railway Manager was not the appointing authority and thus incompetent to impose the punishment. The Union of India appealed to the Supreme Court by special leave. The Supreme Court granted leave and allowed the appeal on August 29, 1995, setting aside the Tribunal's order and upholding the removal.

Acts & Sections

  • Railway Servants (Discipline and Appeal) Rules: Rule 2(a), Rule 9
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