Supreme Court Allows Appeal Against Reversion After 25 Years as Unjust and Arbitrary. Long Delay in Challenging Appointment Based on Alleged Fraud Without Evidence Renders Reversion Unsustainable.

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Case Note & Summary

The appellant, Sukh Bilash Thakur, was appointed as a Bill Clerk in the Bihar State Electricity Board on 03.02.1981 after verification of his educational qualifications and through a competitive examination followed by an interview. He served for 18 years and passed the departmental examination. When he claimed a senior level grade, the respondents issued a show cause notice on 03.07.2006 alleging that he had secured appointment by fraudulent methods and suppressed his lack of requisite qualifications. The appellant replied on 12.07.2006 explaining that mathematics was compulsory only up to class 9 at the time of his matriculation, and that his appointment was valid. The respondents, without properly considering his explanation, passed an order of reversion on 09.08.2007 reverting him from Bill Clerk to Khalasi. The High Court declined to interfere. The Supreme Court allowed the appeal, holding that the reversion order was highly unjust, inequitable, and arbitrary, issued nearly 25 years after appointment. The Court noted that there was no evidence of fraud or suppression, and the respondents had woken up from their stupor only when the appellant claimed selection grade. The Court set aside the reversion order and directed that the appellant be entitled to pensionary benefits as if the reversion had never been passed, with interest at 15% per annum, payable within eight weeks.

Headnote

A) Service Law - Reversion - Delay - An order of reversion issued nearly 25 years after appointment, without proper consideration of the employee's explanation and without any allegations of misconduct during service, is highly unjust, inequitable, and arbitrary, and is liable to be set aside. (Paras 4-5)

B) Service Law - Fraudulent Appointment - Burden of Proof - The employer must prove fraud or suppression; mere allegation without evidence, especially after a long period and where the employee was appointed through a competitive process, cannot sustain a reversion order. (Paras 3-4)

C) Service Law - Show Cause Notice - Reasoned Order - A show cause notice must be considered with reasons; a mere recital of 'after careful consideration' without addressing the cause shown renders the order unsustainable. (Para 3)

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Issue of Consideration

Whether an order of reversion from the post of Bill Clerk to Khalasi, issued nearly 25 years after appointment, based on alleged fraudulent appointment, is sustainable in law.

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Final Decision

The Supreme Court allowed the appeal, set aside the reversion order dated 09.08.2007, and directed that the appellant be entitled to pensionary benefits as if the reversion had never been passed. Pensionary and other retiral dues to be paid within eight weeks with interest at 15% per annum till actual payment.

Law Points

  • Reversion after long delay is arbitrary
  • Fraud must be proved
  • Show cause notice must be considered with reasons
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Case Details

2019 LawText (SC) (1) 75

Civil Appeal No(s). 217 of 2019 (arising out of SLP(C) No.22442 of 2017)

2019-01-09

Arun Mishra, Navin Sinha

Sukh Bilash Thakur

The Bihar State Electricity Board and Others

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Nature of Litigation

Civil appeal against High Court order declining to interfere with reversion order.

Remedy Sought

Appellant sought setting aside of reversion order and restoration of benefits.

Filing Reason

Appellant was reverted from Bill Clerk to Khalasi after 25 years of service based on alleged fraudulent appointment.

Previous Decisions

High Court declined interference with the reversion order.

Issues

Whether reversion order after 25 years is arbitrary and unsustainable. Whether the employer proved fraud or suppression by the appellant.

Submissions/Arguments

Appellant argued that he was appointed after verification and competitive examination, and there was no fraud or suppression. Respondents alleged that appellant secured appointment by fraudulent methods and suppressed lack of qualification.

Ratio Decidendi

An order of reversion issued nearly 25 years after appointment, without proper consideration of the employee's explanation and without any evidence of fraud or suppression, is highly unjust, inequitable, and arbitrary, and cannot be sustained.

Judgment Excerpts

Manifestly from the materials on record there has been no suppression or fraud by the appellant in securing appointment to the post of Bill Clerk on 03.02.1981. We consider the order of reversion issued nearly twentyfive years later to be highly unjust, inequitable and arbitrary suffering from the vice of unreasonableness.

Procedural History

Appellant appointed as Bill Clerk on 03.02.1981. Show cause notice issued on 03.07.2006. Reversion order passed on 09.08.2007. High Court declined interference. Appeal to Supreme Court.

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Supreme Court Supreme Court Allows Appeal Against Reversion After 25 Years as Unjust and Arbitrary. Long Delay in Challenging Appointment Based on Alleged Fraud Without Evidence Renders Reversion Unsustainable.
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