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State Of Bombay v. Dr. N.T Advani

Bombay High Court
Jan 29, 1962
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Structured Summary of the Opinion (Patel, J.)

Factual and Procedural Background

The plaintiff entered State service in 1933 as an Assistant Director of Public Health and became a permanent holder of that office. He was due to retire on 18 October 1953 at age 55. The plaintiff alleges that, instead of being promoted to Director of Public Health in early 1953, he agreed to serve as a Junior Malariologist because his retirement was imminent, and he was assured by superior officers that he would be continued in service after superannuation from 18 October 1953 to 13 March 1955.

On 14 October 1953 the Government issued a resolution (published in the Bombay Government Gazette and communicated to the plaintiff and the Accountant General, Bombay) directing that the plaintiff be re-employed from 18 October 1953 to 13 March 1955 as Junior Malariologist. The plaintiff accepted the re-employment and continued in service.

On 15 May 1954 the plaintiff was informed by the Director of Public Health that his services would be terminated. He made representations; ultimately he was relieved of office on 2 June 1954 and another person took charge. The Government replied that the plaintiff had been re-employed on a purely temporary basis and that the Government could determine the appointment before the expiry of the period specified in the re-employment order.

The plaintiff sued, alleging unlawful termination in violation of Service Rules and Article 311 of the Constitution, and claimed damages of Rs. 8,062-2-0 (and alternatively claimed unpaid balance of pay for the disputed period). The City Civil Court entered a decree in favour of the plaintiff for Rs. 8,062-2-0. The State appealed against that decree. This opinion is the appellate judgment dismissing the State's appeal.

Legal Issues Presented

  1. Whether the Government's resolution dated 14 October 1953 (and its publication and communication) amounted to a contract of service entitling the plaintiff to remain in employment from 18 October 1953 to 13 March 1955.
  2. Whether the termination of the plaintiff's re-employment (by letters in May/June 1954) was valid, or whether it violated the Service Rules and Article 311 of the Constitution.
  3. Whether Article 299 of the Constitution (and related rules governing execution of contracts on behalf of the State) required that the appointment/re-employment be executed in a particular formal manner so as to render the October 14, 1953 order ineffective as a contract.
  4. Whether the lapse to consult the Public Service Commission (Article 320(3)(b)) when the appointment exceeded one year rendered the appointment invalid or voidable by the employee.
  5. Whether temporary appointments for a specified period attract the protection of the Service Rules and Article 311 of the Constitution.

Arguments of the Parties

Plaintiff's Arguments

  • The Government's resolution of 14 October 1953, published in the Gazette and communicated to him, together with acceptance and continued service, amounted to a contract of service for the period 18 October 1953 to 13 March 1955.
  • The termination of his service in May/June 1954 was without proper authority; there was no Government order or notification terminating his service by the appointing authority.
  • He could only be discharged by an authority competent to appoint him; the termination violated the Service Rules and Article 311 of the Constitution and was ultra vires, wrongful and void.
  • He therefore claimed damages of Rs. 8,062-2-0, and alternatively claimed balance of pay for the disputed period if the May/June letters did not amount to termination.

State's Arguments

  • The 14 October 1953 order did not amount to a contract of service enforceable by suit; reliance was placed on Article 299 and on decisions of the Calcutta High Court (Subodh Ranjan v. N.A. O'Collaghan; Lakshmi Narain v. A.N. Puri) to support that position.
  • Because the appointment (re-employment) exceeded one year, the matter had to be referred to the Public Service Commission; since the Public Service Commission did not confirm the re-employment, the Government properly terminated the plaintiff's services by the letter dated 8 May 1954.
  • Even if treated as a contract, the State contended the contract was not valid for the whole period and that the plaintiff's notice was not in accordance with law; consequently the State denied liability for the claimed sum.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Subodh Ranjan v. N.A. O'Collaghan, [1953] A.I.R. Cal. 319 Supports the contention that a government order may not amount to a contract of service enforceable in court (as relied upon by State). The court noted these decisions supported the Government Pleader's contention but rejected their broad application here, observing that the rules and authorities relied upon in those cases were not (apparently) considered and that adopting their ratio would exclude Service Rules and Article 311 from applying to most civil servants. The judge declined to accept the view expressed in those Calcutta cases.
Lakshmi Narain v. A.N. Puri, [1954] A.I.R. Cal. 335 Similarly relied upon for the proposition that appointments must conform to Article 299 formalities before constituting contracts. The court treated this authority as not persuasive for the present case for reasons similar to those stated regarding Subodh Ranjan, and declined to follow its ratio.
J.K. Gas Plant Mfg. Co. v. Emperor, [1947] A.I.R. F.C. 38 Interpreted provisions of the Government of India Act in relation to execution/formation of contracts by Government. The judge said this decision had no application to the present facts because it dealt with s.40 of the Government of India Act and construction issues different from those before the court.
Secretary of State v. Bhagwandas Goverdhandas, (1937) 40 Bom. L.R. 19 Construction of s.30 of the Government of India Act; whether a formal indenture/deed was required for a contract. The court noted Spence C.J.'s explanation that s.30 does not require a formal indenture, and relied on that to support the view that a contract need not always be a formal instrument; this supported holding the October 14 order to be a contract when accepted and acted upon.
P.L. Dhingra v. Union of India, [1958] A.I.R. S.C. 36 Holds that appointment to a temporary post for a specified period gives the appointee a right to hold the post for that tenure and protection from premature termination except by disciplinary removal. The court relied on this authority to support that temporary servants are protected by Service Rules and Article 311, and that premature termination contrary to rules would entitle the plaintiff to damages.
State of U.P. v. Manbodhan Lal Srivastava, [1958] S.C.R. 533 Holds that the provisions of Article 320(3)(c) are not mandatory and confer no enforceable right on a public servant; absence or irregularity of consultation with PSC does not give a cause of action. The court applied the ratio and held there was no reason why that ratio should not apply to Article 320(3)(b) (whose language is the same). On that basis the court rejected the contention that failure to consult the Public Service Commission rendered the appointment invalid.

Court's Reasoning and Analysis

The court proceeded through a structured legal analysis, anchored in constitutional provisions, service rules and precedent cited in the record. The principal lines of reasoning in the judgment are as follows:

  1. Article 299 (the judgment also references the obligations under the Constitution concerning contracts by the State) requires that contracts made in exercise of the executive power be expressed to be made by the President or the Governor and executed on their behalf by persons and in the manner authorised. The court explained that compliance with Article 299 depends on whether rules prescribing particular modes of execution exist for the contract in question.
  2. The court examined the existing delegated rules and service regulations (Fundamental Rules framed under the Government of India Act and the Bombay Civil Services Rules). Those instruments commonly contemplate appointments being made by an order of the appropriate authority rather than by a particular form of document. Rule provisions (e.g., enabling rules for agreements) show that appointments can be effected by appropriate authority and that where special agreements are used they remain subject to the rules.
  3. Applying these principles to the facts, the court emphasized that the 14 October 1953 resolution was: (a) issued in the name of the Governor via the Deputy Secretary to Government, (b) published in the Bombay Government Gazette, and (c) communicated to the plaintiff who accepted it and performed duties. On these facts the court held it amounted to a contract of employment for the period stated (18 October 1953 to 13 March 1955).
  4. The court considered authorities relied on by the State (Calcutta cases) but found them distinguishable or inadequately attentive to the service rules and other relevant provisions; it declined to follow their broad ratio which would produce the consequence of excluding application of Service Rules and Article 311 to the majority of civil servants.
  5. The court relied on Secretary of State v. Bhagwandas Goverdhandas and the Federal Court's explanation that a formal indenture is not always required for a valid contract involving Government; thus, lack of a specific form did not defeat the October 14 order where it was issued in the Governor's name, published and acted upon.
  6. Turning to protection of temporary appointees, the court cited P.L. Dhingra v. Union of India for the principle that a temporary appointment for a specified period gives a right to hold the post for that tenure and attracts the protection of Service Rules and Article 311.
  7. The court addressed the State's contention regarding the Public Service Commission (Article 320(3)(b)). Relying on the Supreme Court decision in State of U.P. v. Manbodhan Lal Srivastava (which held Article 320(3)(c) not mandatory), the court concluded that the same reasoning applies to paragraph (b) and that failure of consultation does not render the appointment invalid as against the employee.
  8. On these bases the court concluded that (a) the plaintiff's re-employment order was a valid contract of service, (b) the alleged termination by letters of May/June 1954 was contrary to relevant Fundamental Rules, Bombay Civil Services rules and Article 311, and (c) the plaintiff was entitled to the damages awarded by the trial court.

Holding and Implications

Holding: The appellate court dismissed the State's appeal and confirmed the decree of the City Civil Court in favour of the plaintiff.

Direct consequences on the parties:

  • The decree passed by the Court below for Rs. 8,062-2-0 in favour of the plaintiff was confirmed.
  • The appeal by the State was dismissed with costs, and the defendant (State) was ordered to pay the stated amount to the plaintiff forthwith.

Broader legal implications (as expressed by the court in this opinion):

  • The court held that a governmental re-employment order, published in the Gazette, issued in the name of the Governor and communicated to and accepted by the appointee who then performed duties can constitute a contract of service — even in the absence of a specific formal instrument in a particular shape — provided the mode of execution required by Article 299 and relevant delegated rules is satisfied or not shown to require a different form.
  • The court applied and endorsed the principle that temporary appointments for a specified term carry the protection of Service Rules and Article 311, relying on P.L. Dhingra.
  • The court accepted the Supreme Court's reasoning in State of U.P. v. Manbodhan Lal Srivastava to the extent that consultation with the Public Service Commission (Article 320(3)(b)/(c)) is not a mandatory condition that confers a personal right on the employee enforceable in court; failure to consult the PSC does not automatically invalidate an appointment for the purposes of an employee's cause of action.
  • The opinion expressly rejects the broader construction of certain Calcutta High Court decisions which would have the effect of excluding most civil servants from protection of Service Rules and Article 311 merely because their appointments were not executed in a particular formal instrument.

No other remedies or ancillary directions were indicated beyond confirming the decree, awarding costs, and directing payment forthwith.

Show all summary ...

Patel, J.:— This is an appeal by the State against the decree passed by the’ City Civil Court, for a sum of Ss. 8,062-2-0 made against it in favour of the plaintiff.

2. The short facts in the case are as follows:— The plaintiff entered the service of the State in 1933 as an Assistant Director of Public Health, and was in due course of time confirmed as a permanent holder of the office. He was due to retire at the age of 55 on October 18, 1953. He says in the plaint that in the ordinary course, lie would have been promoted to the post of the Director of Public Health in about February 1953 but, as he was due to retire within about seven months, he agreed to work as a Junior Malariologist in the same Department and he was assured by his superior officers that even after superannuation he would be continued in service from October 18, 1953, to March 13, 1955. On October 14, 1953, before due date of his retirement, Government issued an order as follows:—

“Shri N.T Advani, Junior Malariologist,

Malaria Organisation,

Government of Bombay,

Local Self Government & Public Health Department.

Resolution No. HDO 1853.

Bombay Castle, 14th October 1953.

Letter from the Director of Public Health for the Government of Bombay No. S. 2(M)-A, dated 7th July 1953.

Resolution:—Government is pleased to direct that Shri N.T Advani, Assistant Director of Public Health, now working as Junior Malariologist, Malaria Organisation should be re-employed for a period from 18th October 1953, the date of his superannuation to 13th March 1955, the date on which the sanction for the post of Junior Malariologist will expire.

2. The requisite notification should be published in the Bombay Government Gazette.

By order and in the name of the

Governor of Bombay.

G.B Deshmukh,

Deputy Secretary to Government.”

3. The Notification in respect of the same was published in the Government Gazette and this order or direction was communicated to the plaintiff, the Assistant Director of Public Health, Malaria, at Poona, and also to the Accountant General, Bombay, as required by law. In pursuance to this order, which he accepted, he continued to work as a Junior Malariologist, when on May IS, 1954, he was informed by the Director of Public Health that his services would be terminated. He made representations to the Government for continuance of his service but ultimately on June 2, 1954, he was relieved of his office and another gentleman was appointed to take charge from him. In answer to his representation, the Government wrote to him that he was re-employed as a Junior Malariologist on a purely temporary basis, and though the order of his re-employment specified that lie was to be in service upto March 13, 1955, it was open to the Government to determine his appointment before the expiry of the said period. The plaintiff alleged that he was relieved from service without proper authority, that there was no order or notification by the Government terminating his service, that he could only be discharged from service by an authority competent to appoint him and that the termination of his service was in violation of the Service Rules and art. 311 of the Constitution and was ultra vires, wrongful and void. In the result, he claimed damages amounting to Rs. 8,062-2-0. The plaintiff also contended that, in any event, the order made by the Director of Public Health on May 8, 1954, and another dated June 21, 1954, did not amount to termination of his service and, therefore, he was entitled to the balance of his pay, for the period in dispute.

4. The State contested the suit. It admitted the order dated October 14, 1953, but contended that since the appointment of the plaintiff was for a period exceeding one year, it was subject to the consultation of the Public Service Commission, and inasmuch as the Public Service Commission did not confirm the re-employment, his services were properly terminated by the Government by its letter dated May 8, 1954. The State also contended that the order dated October 14, 1953, did not amount, to a contract of service and that the notice given by the plaintiff was not in accordance with law. Assuming that it were a contract, the State denied that it was valid for the whole period and binding upon it. The State denied its liability for the sum of Rs. 8,062-2-0 asked for by the plaintiff.

5. The learned Judge held that the notice was valid, that the Resolution and/or order dated October 14, 1953, taken along with the communication dated October 16, 1953, amounted to a contract of service as alleged, that it was valid and that the contract of service was not validly terminated by the defendant. The learned Judge awarded damages as claimed by the plaintiff. It is this judgment that is sought to be challenged in this appeal.

6. [His Lordship after dealing with points not material to this report, proceeded.] It is contended by the learned Government Pleader that the order dated October 14, 1953, does not amount to a contract of service in respect of which the plaintiff is entitled to sue. He relies for the purposes of his argument on art. 299 of the Constitution of India and also the decision's of the Calcutta High Court in Subodh Ranjan v. N.A O'Collaghan . [1953] A.I.R Cal. 319. and Lakshmi Narain v. A.N Puri. . [1954] A.I.R Cal. 335. The decisions referred to by him no doubt support his contention. It is desirable, however, to examine the question apart from authorities in the present case. Article 229 of the Constitution provides by sub-cl. (1) as follows:—

“I All contracts made in the exercise of the executive power of Union or of a State shall be expressed to be made by the President, or by the Governor… of the State, as the case may be, and all such contracts and all assurances of property made in the exercise of that power shall be executed on behalf of the President or the Governor… by such persons and in such manner as he may direct or authorise.”

7. First part of this article is simple and says that all contracts shall be expressly made either by the President or by the Governor of the State, as the case may be; the second part and the more important part says that all such contracts, which means contracts referred to in the first part of the paragraph and all assurances of property etc. shall be executed on behalf of the President or the Governor by such persons and in such manner as he may direct or authorise. It is clear from the second part of art. 299 that what is required is that all contracts which the President or the Governor may make must be executed in the manner and by the authority prescribed by the President or the Governor. If rules prescribing the mode of executing such contracts have been made then whether or not the requirements? of art. 299 are satisfied will depend upon the nature of the contract in question. Under the second part of the article, on the dates on which the Constitution came into force, the Government of Bombay has made provision for the execution of certain kinds of contracts in the specified manner, by a Notification No. G.E, H.D No. 1758/6, dated January 26, 1960 (amended by G.R, H.D No. 1758/6, dated July 24, 1950). Under this Notification all contracts relating to assurances in respect of properties, conveyances of properties or for purchases and other specified matters are required to be entered into on behalf of the Government, as directed there. But the rules do not require that contracts of employment to the services must be executed in a particular manner. One may in this respect refer with advantage to the Fundamental Rules framed by the Secretary of State under art, 96A, Government of India Act, 1919, and still in force, as also the Bombay Civil Services Rules. C.S (C.C.A) Rule 3 makes the rules applicable to every person in the whole time civil employment of a Government in India. As to Central Sendees in Class I. r. 29 directs that all first appointments shall be made by the Secretary of State. Other rules provide for all first appointments by other authority there named. In respect of Provincial Services, r. 38 provides that all first appointments shall be made by the Local Government or an authority empowered by the Local authority in that behalf. It is clear that normally so far as appointment to the services is concerned, it is intended to be by an order of appointment by an appropriate authority and not by document. Rule 46 which is an enabling rule enables the controlling authority to enter into an agreement when the circumstances require that special conditions should be prescribed for a particular post or posts consistent with the rules. Even then it directs that every agreement should include a provision that wherever the agreement is silent in respect of any matter, then the rules shall apply. We have similar provisions in the B.C.S Rules which are supplementary and are made Under the powers delegated to the Local Government under the Fundamental Rules.

8. It is clear, therefore, that if the proper authority issues an order appointing a person to a post and that person accepts it and joins his duties then he is a person employed and is governed by all the rules and contract of service must be regarded as having been made out.

9. In the present case, the order, which I have reproduced at the beginning of the judgment, clearly indicates that the order was communicated by the Deputy Secretary to Government by and in the name of the Governor of Bombay. Not only that, it was published in the Bombay Government Gazette and communicated to the employee and he worked in obedience to it. In my view, therefore, it becomes a contract of employment. He must, therefore, be held to be employed from October 18, 1953 to March 13, 1955.

10. The learned Government Pleader, however, contended that the resolution of the Government cannot be regarded as a contract. He has invited my attention to the decision in J.K Gas Plant Mfg. Co. v. Emperor . [1947] A.I.R F.C 38. which has really no application where the question was one of construction of s. 40 of Government of India Act. There reliance was placed on the construction placed on s. 30 of the Act in Secretary of State v. Bhagwandas Goverdhandas . 1937 40 Bom. L.R 19.. But Spence C.J of the Federal Court explained that in that case the initial correspondence which it was contended contained the contract was not made in the name of the Secretary of State and when Government passed a resolution accepting the transaction it became a one sided move. The other side refused to accept the transaction when in pursuance to the resolution contract form was submitted. The decision in Secretary of State v. Bhagwandas Goverdhandas is against Mr. Kotwal since it holds that s. 30 of the Government of India Act, 1915, does not require a formal document in the nature of an indenture or a deed in the case of a contract. In the present case the order of appointment was addressed by the appropriate authority in the name of the Governor to the plaintiff, who accepted it and continued in office thereafter until he was relieved, of the charge after June 21, 1954.

11. It is undoubtedly true that where a contract is required to be in a particular form to be executed by a particular authority, then the requirements must necessarily be complied with. But then the first tiling that must be established on behalf of the State is that the contract of service is required to be executed as contended for by the State. Since that has not been established, it is impossible to hold that there was in fact no contract of service. In the cases cited by Mr. Kotwal, viz. Subodh Ranjan v. N.A O'Callaghan and Lakshmi Narain v. A.N Puri, attention of the learned Judge does not seem to have been invited to any of the rules referred to by me. It was assumed in these cases that appointment to the services must be by a contract executed as required by art, 299 of the Constitution. Its ratio would produce the astounding result that neither the service rules nor art. 311 of the Constitution will apply to about ninety-nine per cent, of the civil servants. In view of what I have stated above, with respect, it is not possible to accept the view expressed by Mr. Justice Bose in those cases.

12. In P.L Dhingra v. Union of India . [1958] A.I.R S.C 36. S.E Das C.J says (p. 42 c2):

“…An appointment to a temporary post for a certain specified period also gives the servant so appointed a right to hold the post for the entire period of his tenure and his tenure cannot be put an end to during that period unless he is, by way of punishment, dismissed or removed from the service.”

13. In the same case it is held that the protection of the Services Rules and art. 311 is available to such temporary servants.

14. Now, in the present case, if it is assumed that the services of the plaintiff were terminated before March 13, 1955, by letters dated May 8, 1954 and June 21, 1954, the termination of his service is contrary to r. 4, 9 of the Fundamental Rules, 33 of the Bombay Civil Services Conduct, Discipline and Appeal Rules and art. 311 of the Constitution. He is in that case clearly entitled to claim damages.

15. It has been very seriously argued by Mr. Kotwal that since while making his appointment the procedure of referring the matter to the Public Service Commission was not followed, the appointment was invalid. He relies on art. 320 of the Constitution, para. (3)(b). It has been held by the Supreem Court in State Of U.P v. Manbodhan Lal Srivastava . [1958] S.C.R 533., that the provisions of art. 320(3)(c) of the Constitution of India are not mandatory and that they do not confer any rights on a public servant so that the absence of consultation or any irregularity in consultation does not afford him a cause of action in a Court of law. There is no reason why the ratio in that case should not apply to para. (b), language of which is the same as that of para (c). I am not, therefore, prepared to hold that on this ground the order dated October 14, 1953, was an invalid order and, therefore inoperative.

16. It is also contended that the order having been made without reference to the Public Service Commission, the order of appointment is subject to the sanction being accorded by the Public Service Commission thereafter. In the first place, the order itself does not make its operation subject to the sanction of the Public Service Commission. It is impossible to read into the words of the order something which is not there as it would amount to re-writing of the order. This argument must, therefore, fail. [His Lordship after dealing with a contention not material to this report, concluded.] In the result, the decree passed by the Court below must be confirmed and the appeal must be dismissed with costs. The defendant to pay the amount to the plaintiff forthwith.

17. Appeal dismissed.