Supreme Court Upholds Appeal in Service Law Case Concerning Bias and Unauthorized Inquiry in Disciplinary Proceedings. Compulsory Retirement Order Quashed as Inquiry Officer Lacked Jurisdiction and Violated Natural Justice under Hyderabad Civil Services (Classification, Control and Appeal) Rules, 1955, Rule 22.

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Case Note & Summary

The appellant, a clerk-cum-typist in the service of the Government of Andhra Pradesh, filed a suit challenging the order of compulsory retirement passed against him on the basis of a disciplinary inquiry. The appellant alleged that the inquiring officer, one Narsing Rao Manvi, was inimical towards him and had harassed him. Manvi, as Director-in-charge of the Information and Public Relations Department, caused the appellant to be suspended and framed charges against him. The appellant protested against Manvi conducting the inquiry on grounds of bias and lack of authority. Despite protest, Manvi conducted the inquiry ex-parte after the appellant refused to participate due to denial of access to relevant files. The appellant was found guilty of some charges, and the Director issued a show cause notice. The appellant submitted a written explanation contending that the inquiry was vitiated by bias, lack of jurisdiction, and denial of reasonable opportunity. The Director found him guilty and passed an order of removal, which was later modified by the Government on the recommendation of the Public Service Commission to compulsory retirement. The appellant filed a suit for declaration that the order was null and void and sought arrears of salary and damages. The trial court decreed the suit, holding that the inquiring officer had no jurisdiction as Director-in-charge and no authority after he ceased to be Director-in-charge, and that the inquiry was vitiated by bias and denial of reasonable opportunity. The High Court reversed the trial court's decision, finding no bias, holding that the Government had authorized the Director-in-charge to conduct the inquiry and that the Director could authorize the Deputy Director, and that there was no denial of reasonable opportunity. The appellant appealed to the Supreme Court. The Supreme Court examined three issues: bias of the inquiring officer, authority of the inquiring officer, and denial of reasonable opportunity. On bias, the Court reiterated the test of real likelihood of bias based on a reasonable apprehension of a reasonable man fully cognizant of the facts, and held that the cumulative circumstances showed that the inquiring officer was inimical towards the appellant, establishing a real likelihood of bias. On authority, the Court held that the Government had ordered the Director to conduct the inquiry, and the inquiring officer's authority as Director-in-charge ended when he reverted to Deputy Director before examining witnesses; further, under Rule 22 of the Hyderabad Civil Services (Classification, Control and Appeal) Rules, 1955, the Director as Head of Department could not delegate the inquiry to another person contrary to the Government's intention. On reasonable opportunity, the Court found that the refusal to allow inspection of files, especially those relied upon in the inquiry report, was unjustified and vitiated the inquiry. Consequently, the Supreme Court allowed the appeal, set aside the High Court judgment, and restored the trial court's decree, declaring the compulsory retirement order null and void and holding that the appellant was deemed to have continued in service and entitled to arrears of salary claimed.

Headnote

A) Administrative Law - Bias - Real Likelihood of Bias - Hyderabad Civil Services (Classification, Control and Appeal) Rules, 1955, Rule 22 - The inquiring officer was previously inimical towards the appellant and had taken steps like causing suspension and framing charges; the test of likelihood of bias is based on a reasonable apprehension of a reasonable man fully cognizant of the facts; if a reasonable man would think on the basis of existing circumstances that the inquiring officer is likely to be prejudiced, that is sufficient to quash the decision without proof of actual bias. Held that there was real likelihood of bias in the present case, and the inquiry and orders based on it were bad (Paras 5-9).

B) Service Law - Jurisdiction of Inquiring Officer - Authority to Conduct Inquiry - Hyderabad Civil Services (Classification, Control and Appeal) Rules, 1955, Rule 22 - The Government ordered the Director to conduct the inquiry; the inquiring officer was Director-in-charge initially but reverted to Deputy Director before witnesses were examined; the authority to conduct inquiry came to an end when he ceased to be Director-in-charge; under Rule 22, the Head of the Department cannot delegate the power to inquire to another person; delegation by Director to Deputy Director was contrary to the Government's intention and beyond competence. Held that the inquiring officer was not authorised to conduct the inquiry after he ceased to be Director-in-charge (Paras 10-11).

C) Administrative Law - Natural Justice - Reasonable Opportunity to Defend - Hyderabad Civil Services (Classification, Control and Appeal) Rules, 1955, Rule 22 - The appellant was denied access to files and documents which had a material bearing on his defence, including proceedings relied upon in the inquiry report to substantiate a charge; the refusal was unjustified especially as it was too much to assume that the appellant would remember details of 1951 proceedings. Held that the inquiry was vitiated on this score as well (Para 12).

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Issue of Consideration

Whether the inquiring officer was biased against the appellant; whether the inquiring officer had authority to conduct the inquiry; whether the appellant was denied a reasonable opportunity to defend himself due to refusal of access to relevant files.

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Final Decision

Supreme Court allowed the appeal, set aside the High Court judgment, and restored the trial court decree. The order of compulsory retirement was declared null and void; the appellant was deemed to have continued in service and entitled to arrears of salary claimed.

Law Points

  • Real likelihood of bias test based on reasonable apprehension
  • actual prejudice not required
  • authority of inquiring officer limited to designated post
  • Head of Department cannot delegate inquiry power contrary to Government direction
  • denial of access to relevant files violates natural justice
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Case Details

1973 LawText (SC) (09) 10

Civil Appeal No. 656 of 1971

1973-09-20

Kuttyil Kurien Mathew, B.K. Mukherjea

1973 AIR 2701, 1974 SCR (1) 697, 1974 SCC (3) 459

B.R.L. Aiyanagar, H.K. Puri, P. Rwn Reddy, P. Parmeswararao

S. Parthasarathi

State of Andhra Pradesh

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Nature of Litigation

Civil appeal against High Court judgment reversing trial court's decree in a suit for declaration that compulsory retirement order was null and void.

Remedy Sought

Appellant sought declaration that the order of Director of Information and Public Relations dated April 11, 1960 as modified by Government order compulsorily retiring him from service was null and void; also arrears of salary and damages Rs. 65,000.

Filing Reason

Appellant alleged that disciplinary inquiry was vitiated by bias of inquiring officer, lack of jurisdiction, and denial of reasonable opportunity to defend due to refusal of access to relevant files.

Previous Decisions

Trial court decreed suit in appellant's favour, holding inquiry vitiated and orders set aside; High Court allowed State's appeal and dismissed suit, holding no bias, jurisdiction present, and no denial of opportunity.

Issues

Whether the inquiring officer was biased against the appellant. Whether the inquiring officer had authority to conduct the inquiry. Whether the appellant was denied a reasonable opportunity to defend himself due to refusal of access to relevant files.

Submissions/Arguments

Appellant: Inquiring officer was biased against him, had no authority to conduct the inquiry, and he was denied reasonable opportunity as he was not given access to several files which had a material bearing on his defence. Respondent: No material to show bias; Government authorized Director-in-charge to conduct the inquiry; Director authorized Deputy Director; Government accepted suggestion; appellant was not denied reasonable opportunity as he was not denied access to any file which had material bearing upon his defence.

Ratio Decidendi

A quasi-judicial authority must be free from bias; the test of likelihood of bias is based on a reasonable apprehension of a reasonable man fully cognizant of the facts; if a reasonable man would think that the inquiring officer is likely to be prejudiced, that is sufficient to quash the decision, without proof of actual bias. Also, the authority to conduct an inquiry under the Hyderabad Civil Services (Classification, Control and Appeal) Rules, 1955, Rule 22, is limited to the officer designated by the Government; once the designated officer ceases to hold that post, his authority ends, and the Head of the Department cannot delegate the power to another person contrary to the Government's direction. Denial of access to relevant files relied upon in the inquiry vitiates the inquiry for violation of natural justice.

Judgment Excerpts

The test of likelihood of bias which has been applied in a number of cases is based on a 'reasonable apprehension' of a reasonable man fully cognizant of the facts. M was not authorised to conduct the inquiry ordered by the Government after he ceased to be the Director in-charge and became a Deputy Director. There is no justification for the refusal of the inquiring officer to give access of the files to the appellant and not granting the prayer of the appellant to inspect the files containing the proceedings on the ground that the appellant was appraised of the earlier proceedings especially when it is seen that these proceedings have been relied upon by the inquiry officer in his report to substantiate one of the charges against the appellant.

Procedural History

Appellant appointed in 1940 as Clerk-cum-Typist in Public Works Department; posted as Office Superintendent in Information and Public Relations Department on June 7, 1952; confirmed in 1956. Manvi was Deputy Director from 1956 to 1957 and became Director-in-charge on August 1, 1957. Appellant suspended and charges framed on May 13, 1959. Inquiry conducted ex-parte after appellant's protest. Director issued show cause notice; appellant replied alleging bias, lack of jurisdiction, and denial of opportunity. Director passed removal order effective April 11, 1960. Government, on recommendation of Public Service Commission, modified to compulsory retirement on November 10, 1961. Appellant filed suit; trial court decreed in his favour. High Court allowed State's appeal and dismissed suit. Appellant appealed to Supreme Court by certificate. Supreme Court allowed appeal, set aside High Court judgment, and restored trial court decree.

Acts & Sections

  • Hyderabad Civil Services (Classification, Control and Appeal) Rules, 1955: Rule 22
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