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D.S Sharma Petitioner v. Union Of India Etc. S

Delhi High Court
Apr 14, 1970
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Judgment Summary — V.S. Deshpande, J.

Factual and Procedural Background

The dispute arises from an administrative integration of accounts work and personnel between two branches of the Department of Posts and Telegraphs and the Audit Department (Telecommunications Branch). Prior to integration, the main Department of Posts and Telegraphs performed accounts work through "Senior Accountants" governed by the Posts and Telegraphs Accountants' Service (Recruitment) Rules, 1958 (as amended). The Telecommunications Branch's accounts were handled by SAS Accountants of the Audit Department.

On 27 March 1968 the Government decided to transfer the Telecommunications Branch accounts work to the Accounts Department of the Posts and Telegraphs Department, and on 16 May 1968 it settled terms for transferring SAS Accountants into the Posts and Telegraphs Department, equating them with the pre-existing Senior Accountants and fixing inter-se seniority by length of approved continuous service in corresponding grades.

Acting on these administrative decisions, on 6 July 1968 the Posts and Telegraphs Department promoted two transferred SAS Accountants (Survashri S. Jayaraman and V.S. Srinivasan) to the grade of Accounts Officers. Two petitioners, existing Senior Accountants of Posts & Telegraphs, filed writ petitions (Civil Writ Petitions 560 and 561 of 1968) challenging those promotions on three grounds: (1) the promotions contravened the statutory promotion rules in force (General Central Service Class II (Accounts/Administrative Officers) Recruitment Rules, 1968); (2) subsequent statutory rules could not retrospectively validate an originally void promotion; and (3) the equating of transferred SAS Accountants with P & T Senior Accountants was discriminatory contrary to Articles 14 and 16 of the Constitution.

After hearing arguments, the court considered the validity of the interim administrative action, subsequent retrospective statutory rules promulgated by the Government (Indian Audit and Accounts Department (Accountant General, Posts and Telegraphs) Transfer of Officers and Other Staff Rules, 1968, dated 30-8-1968 and Indian Posts and Telegraphs Accounts and Finance Service Class II (Recruitment) Rules, 1968 dated 23-11-1968), constitutional questions about rule-making by the President under the proviso to Article 309 and authentication under Article 77(2), and whether the integration produced discrimination.

Legal Issues Presented

  1. Whether promotions made on 6 July 1968 by administrative orders contrary to existing statutory recruitment rules (Annexure R-5) were legally valid or initially void.
  2. Whether the Government could validate retrospectively those promotions by promulgating rules (R-6 and later R-7) under the proviso to Article 309 and giving them retrospective effect.
  3. Whether rules made by the President under the proviso to Article 309 but authenticated by officers of the Central Government (under Article 77(2)) are valid, and whether such authentication is permissible when the power is said to be non-delegable.
  4. Whether equating the transferred SAS Accountants with the pre-existing Posts & Telegraphs Senior Accountants (for purposes of promotion) amounted to unconstitutional discrimination contrary to Articles 14 and 16.
  5. More broadly, the opinion raises the constitutional question, described as "of first impression", concerning the nature and meaning of the executive power of the President under the Constitution (whether it includes rule-making and the scope of authentication under Article 77(2)).

Arguments of the Parties

Petitioners' (Appellants') Arguments

  • The July 6, 1968 promotions were contrary to the General Central Service Class II (Accounts/Administrative Officers) Recruitment Rules, 1968 (Annexure R-5), which allowed promotion only of Posts & Telegraphs Senior Accountants; therefore the promotions were illegal.
  • The subsequent statutory rules (R-6 and R-7) could not validly be used to retrospectively validate promotions which were ab initio void; R-6 did not genuinely relate to conditions of service but was enacted only to validate the promotions (citing State v. Padmanabhacharya).
  • The transfer rules (R-6) were mala fide, enacted to defeat the already-filed writ petitions; alternatively, if validation were possible, the Government should have cancelled the promotions and reissued fresh promotions under the new rules instead of validating retrospectively.
  • The equation of SAS Accountants with P & T Senior Accountants for promotion purposes was discriminatory and contrary to Articles 14 and 16 of the Constitution.

Respondents' (Government / Opposing) Arguments

  • The initial promotions were made on an ad hoc and temporary basis pending formal statutory rules; the Government subsequently placed the administrative orders on a statutory footing by promulgating transfer rules (R-6) effective retrospectively from 1 March 1968 and later superseding recruitment rules (R-7).
  • Citing B.S. Vadera v. Union of India, the President may give retrospective operation to rules relating to conditions of service under the proviso to Article 309; the transfer rules genuinely relate to conditions of service and thereby validate the earlier administrative action.
  • The powers of authentication under Article 77(2) permit officers of the Central Government to authenticate instruments made in the name of the President; authentication of rules made under Article 309 by authorised officers is valid and does not amount to unlawful delegation.
  • The inter-se seniority and the basis of equating the transferred SAS Accountants with P & T Senior Accountants (length of approved continuous service in corresponding grades with same pay scale and performance of the transferred work) are just, fair and non-discriminatory.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
B.S. Vadera v. Union of India, AIR 1969 Supreme Court 118 The President acting under the proviso to Article 309 can give retrospective operation to rules relating to conditions of service. Relied upon to support the proposition that rules promulgated on 30-8-1968 (R-6) could be given retrospective effect to validate earlier administrative transfers and promotions.
State v. Padmanabhacharya, (1966) 1 S.C.R. 994 Cited by petitioners to argue that certain rules were not rules relating to conditions of service and so could not be retrospective validations. The Court examined the content of R-6 and held Padmanabhacharya inapplicable because R-6 genuinely related to conditions of service; thus the petitioners' reliance on Padmanabhacharya failed.
Madhya Pradesh v. Vishnu Prasad Sharma, A.I.R. 1966 S.C. 1593 Example where administrative action (land acquisition) was struck down and subsequently the statute was amended to validate the action; addresses retrospective validation by legislature. Used as authority to show that retrospective validation of invalid administrative action by later statutory provisions has been recognised; the Court applied analogous reasoning to retrospective rule-making by the President.
Udai Ram Sharma v. Union of India, (1968) 3 S.C.R. 41 Upheld retrospective validation of administrative action after review of case law. Referred to as supporting the proposition that retrospective validation of invalid administrative action is legally permissible; used to justify validation by R-6.
Shri Prithvi Cotton Mills Ltd. v. Broach Borough Municipality, AIR 1970 S.C. 192 Observation that before validation of an invalid tax the cause of invalidity must be removed; general remarks about validation of statutes and administrative action. Quoted to show that validation may apply to invalid statutes and invalid administrative action; Court used it to reinforce that retrospective validation by rules is permissible.
Jayantilal Amrit Lal Shodhan v. F.N. Rana, (1964) 6 S.C.R. 294 Distinction between powers of the President that can be entrusted and those vested personally in the President; the power to make rules under proviso to Article 309 was placed in the non-delegable category. Examined to address whether authentication by officers of rules said to be made by the President is permissible; the Court analysed the decision and concluded Article 77(2) permits authentication without inquiry into whether the President acted personally or as head of the Government.
Emperor v. Sibnath Banerji, AIR 1945 Privy Council 156 Discussed delegation and responsibility where the Governor remains responsible for acts of subordinates taken in his name (comparison with statutory provisions on delegation/authentication). Invoked to support the proposition that authentication by subordinates does not amount to delegation when the head remains responsible; used to distinguish authentication from delegation.
M/s Bijoya Lakshmi Cotton Mills Ltd. v. State of West Bengal, AIR 1967 S.C. 1145 Held that unless rules require ministerial personal action, subordinate officers can deal with matters on behalf of the Government; personal satisfaction of Governor not required. Used to reinforce that authorised officers of the Government may authenticate documents or act on behalf of the Government; supports validity of authentication under Article 77(2).
State of Mysore v. G.N. Purohit, 1967 Services Law Reporter 753 Authority cited on service law propositions related to reversion and conditions of service. One of the authorities relied on to support the Court's view that chances of promotion are not necessarily conditions of service and that reversion may not amount to reduction in rank; used in reasoning on non-discrimination and integration effects.
State Of Orissa v. Durga Charan Das, (1966) S.C.R. 907 Service law authority concerning treatment of promotions/reversions and service conditions. Referred to as supporting precedent for the proposition that integration affecting promotion prospects does not automatically amount to discrimination or an unlawful reduction in rank.
State of Punjab v. Jagdip Singh, AIR 1964 Supreme Court 521 Service law authority approving the decision in Devasahayam's case regarding service matters. Cited in connection with service law principles applied to the integration and non-discrimination analysis in the present case.
Devasahayam's case, AIR 1958 Madras 53; AIR 1959 Madras 1 Local precedent on service law and treatment of promotions/reversions. Appended to the cluster of service-law authorities relied upon to conclude that integration and its effects did not constitute discrimination against petitioners.

Court's Reasoning and Analysis

The court proceeded in a structured manner.

  1. Initial legality of the promotions:

    The Court accepted that on strict legal analysis the promotions made on 6 July 1968 were inconsistent with the statutory recruitment rules (Annexure R-5) then in force; administrative orders (Annexures C and D) could not amend statutory rules and therefore those promotions were initially illegal and "ab initio void".

  2. Retrospective validation by subsequent rules (R-6 and R-7):

    The Government subsequently promulgated the Indian Audit and Accounts Department (Accountant General, Posts and Telegraphs) Transfer of Officers and Other Staff Rules, 1968 (R-6) on 30-8-1968 and declared those rules to be deemed in force from 1 March 1968. The Court relied on the principle, as stated in B.S. Vadera, that the President can give retrospective operation to rules made under the proviso to Article 309 when those rules relate to conditions of service. The Court examined the content of R-6 and concluded that it genuinely related to conditions of service (for example, authorising transfer of persons engaged in Telecommunications Branch accounting and specifying selection by the Comptroller and Auditor General subject to guidelines), so R-6 validly had retrospective effect and could validate the earlier administrative action.

  3. On the applicability of Padmanabhacharya:

    The petitioners' reliance on State v. Padmanabhacharya to argue that R-6 was not a conditions-of-service rule was rejected after examining R-6's terms; the Court considered Padmanabhacharya inapplicable in these circumstances (and noted the same conclusion was drawn in paragraph (26) of the Vadera report).

  4. Mala fide / motive argument:

    The Court rejected the submission that R-6 was mala fide and enacted solely to defeat the writ petitions. While recognising the Government could have instead cancelled the promotions and re-promoted after rules were promulgated, the Court held choosing retrospective validation was an available method (and cited legislative precedents where retrospective validation was upheld). The Court declined to order production of internal files concerning departmental deliberations as not relevant to the legal validity once retrospective validation had been effected.

  5. Constitutional analysis — Article 309 and Article 77(2):

    The Court confronted the argument that rules under the proviso to Article 309 are personal to the President and cannot be authenticated by officers under Article 77(2) because authentication provisions relate only to executive action and not legislative (rule-making) instruments. The Court analysed Part V of the Constitution and concluded that the expressions "executive power" and "executive action" as used in Articles 53, 73 and 77 refer to actions of the Executive (i.e., the source of power) and not to the intrinsic quality (administrative vs. legislative) of the function. Accordingly, rule-making under Article 309, though quasi-legislative (subordinate legislation), is an exercise of the Executive's power in relation to services of the Union; such instruments fall within Article 77(2)'s authentication scheme.

    The Court further considered the hypothetical that the President acted as persona designata and observed that Article 77(2) contains no restriction; therefore authentication by authorised officers would still be appropriate. The Court emphasised the crucial legal distinction between authentication of an instrument made in the name of the President and an actual delegation of the President's power to make rules. Authentication pursuant to Article 77(2) does not mean delegation; the President remains responsible for the instrument and Article 77(2) expressly protects the validity of authenticated instruments from challenge on the ground that they were not made by the President personally.

  6. Support from comparative and earlier authorities:

    The Court relied on authorities such as Emperor v. Sibnath Banerji (Privy Council) to illustrate that where a head remains responsible for acts done in his name there is no impermissible delegation, and M/s Bijoya Lakshmi Cotton Mills Ltd. to show that subordinate officers can act on behalf of Government subject to rules of business. These authorities buttressed the conclusion that authentication under Article 77(2) is lawful and that it is not permissible to litigate the question of the President's personal exercise of rule-making power once authentication requirements are satisfied.

  7. On discrimination and the merits of integration:

    On the substantive complaint of discrimination under Articles 14 and 16, the Court found the terms and conditions of integration fair. The Court emphasised that the critical consideration was the position occupied by the SAS Accountants and the P & T Senior Accountants at the time of integration: they held comparable posts with the same pay scales and the SAS Accountants were actually performing the Telecommunications Branch accounts work that was transferred. The criterion applied (approved continuous service in corresponding grades with same pay scale and five years' service for promotion) was uniform, and the Court concluded that integration and equating of seniority did not amount to discrimination. The Court observed that potential grievances of transferred SAS personnel against their own department did not make the integration discriminatory as between the two sets of employees.

Holding and Implications

HOLDING: The writ petitions challenging the promotions were dismissed. The Court held that although the promotions of 6 July 1968 were initially inconsistent with the statutory recruitment rules and therefore initially invalid, the Government validly placed the administrative transfer and promotions on statutory footing by promulgating retrospective rules (R-6, and later R-7). The rules genuinely related to conditions of service and their retrospective operation was permissible under Article 309 as interpreted in relevant authorities; authentication under Article 77(2) was valid; and the integration/equation of SAS Accountants with P & T Senior Accountants did not amount to discrimination under Articles 14 and 16. The Court made no order as to costs.

Implications:

  • Direct effect on the parties: The promotions of the two transferred SAS Accountants are sustained by retrospective rules and the petitioners' challenge fails; the writ petitions are dismissed and no costs are awarded.
  • Broader legal implication (as recorded in the opinion): The Court analysed and affirmed that rule-making by the President under the proviso to Article 309 can be authenticated under Article 77(2) and that retrospective rule-making by the President can validate prior administrative actions where the rules genuinely relate to conditions of service. The opinion reasons on the nature of "executive power" and the distinction between authentication and delegation. The opinion itself does not state that it is declaring a novel binding precedent distinct from the authorities it cites; it applies established lines of authority to the facts before it.

Disposition: Petitions dismissed. (A.N.K.)

Show all summary ...

V.S Deshpande, J.:— A constitutional question of first impression as to the nature and meaning of executive power of the President under the Constitution has arisen among other questions in this case.

The accounts work of the main Department of Posts and Telegraphs used to be done by the petitioners designated as Senior Accountants governed by the Posts and Telegraphs Accountants' Service (Recruitment) Rules, 1958 at Annexure R-2 of the written statement as amended on 29th March 1963 at Annexure R-3. The accounts work in the Telecommunications Branch of the Department of Posts and Telegraphs was, on the other hand, done by the personnel of the Audit department called the SAS Accountants. The recruitment to the grade of Accounts Officers used to be made under the General Central Service Class II (Accounts/Administrative Officers) Recruitment Rules, 1968, dated 15th February 1968 at Annexure R-5 to the written statement. Under these rules, the Senior Accountants of the Posts and Telegraphs Department with five years' approved service in the grade were alone eligible for promotion as Accounts Officers.
On 27th March 1968, as per letter at Annexure C to the writ petition, the Government decided that the accounts work of the Telecommunications Branch of the Posts and Telegraphs Department should be transferred to the Accounts Department of the Posts and Telegraphs Board. Along with this work, the SAS Accountants belonging to the Audit department were also to be transferred to the Posts and Telegraphs Department. The terms and conditions of the transfer were settled by the Government on 16th May 1968 as per letter at Annexure D to the writ petition. The SAS Accountants formerly of the Audit department were equated with the Senior Accountants of the Posts and Telegraphs department and were to be designated as Senior Accountants. As per para (11) of Annexure D the inter-se seniority of the SAS Accountants formerly of the Audit department vis-a-vis the Senior Accountants of the Posts and Telegraphs department was to be fixed according to the length of the approved continuous service in the corresponding grades. Acting on this basis, on 6th July 1968, as per Annexure H, the Posts and Telegraphs department appointed Survashri S. Jayaraman and V.S Srinivasan who were formerly SAS Accountants in the Audit department but who were since then transferred to the Posts and Telegraphs Department along with the accounts work of the Telecommunications Branch of the Posts and Telegraphs Department were on promotion as Accounts Officers.
The petitioners who have been Senior Accountants of the Posts and Telegraphs Department from before the integration have filed these writ petitions (Civil Writ Petitions 560 and 561 of 1968) challenging the promotion of Survashri S. Jayaraman and V.S Srinivasan as Accounts Officers on the following grounds namely :—
(1) The promotion was contrary to the statutory rules, namely, General Central Service Class II (Accounts/Administrative Officers) Recruitment Rules, 1968, dated 15-2-1968 at Annexure R-5 which provided for the promotion of only the Senior Accountants of the Posts and Telegraphs Department to the grade of Accounts Officers;
(2) The promotion could not be retrospectively validated by the two sets of statutory rules subsequently made by the Government, namely, (a) the Indian Audit and Accounts Department (Accountant General, Posts and Telegraphs) Transfer of Officers and Other Staff Rules, 1968 dated 30-8-1968 at Annexure R-6 and (b) the Indian Posts and Telegraphs Accounts and Finance Service Class II (Recruitment) Rules, 1968, dated 23-11-1968 at Annexure R-7;
and (3) The equation of the SAS Accountants formerly of the Audit department with the Senior Accountants of the Posts and Telegraphs Department for the purpose of promotion to the grade of Accounts Officers is discriminatory against the petitioners contrary to Articles 14 and 16 of the Constitution.
Let us consider the above contentions in the order in which they have been set out.
On 6th July 1968, the Posts and Telegraphs Accounts Officers (Recruitment) Rules, 1968 at Annexure R-5 were in force. The Government could not therefore legally appoint Survashri Jayaraman and Srinivasan as Accounts Officer's inasmuch as their transfer to the Posts and Telegraphs Department, their designation as Senior Accountants and the fixation of their seniority vis-a-vis the pre-existing Senior Accountants of the Posts and Telegraphs department was all done by administrative orders at Annexures C and D to the writ petition. These administrative orders were strictly speaking inconsistent with the statutory rules at Annexure R-5. They could not have the offect of amending the statutory rules. They could not, therefore, prevail against the statutory rules. The result was that strictly speaking the promotion of Survashri Jayaraman and Srinivasan, being contrary to the statutory rules, was illegal and, therefore, initially invalid.
The Government had however made the promotion only on a purely ad hoc and temporary basis. Apparently the Government did not have time to amend the existing statutory rules before actually making the promotion. But the Government soon put the administrative orders at Annexures C and D to the writ petition on statutory footing by promulgating the Indian Audit and Accounts Department (Accountant General, Posts and Telegraphs), Transfer of Officers and Other Staff Rules, 1968, on 30-8-1968 as per Annexure R-6 to the written statement. Under rule 1(2) thereof, these rules shall be deemed to have come into force on the first day of March 1968. It is now settled by the Supreme Court decision in B.S Vadera v. Union of India (AIR 1969 Supreme Court 118) that the President acting under the proviso to Article 309 can give retrospective operation to the rules relating to the conditions of service. Shri P.P Rao, learned counsel for the petitioners, relied upon the Supreme Court decision in State v. Padmanabhacharya (1966) 1 Supreme Court Reports 994, to urge that the rules at Annexure R-6 are not rules relating to the conditions of service at all but were made only to validate the promotion made on 6th July 1968 which was ab initio void. A look at the content of the rules at Annexure R-6 however shows that they genuinely related to conditions of service. Rule 2 authorises the transfer to the Posts and Telegraphs Department of all persons who had been previously engaged in the accounting work relating to the Telecommunications Branch. The selection of persons for such a transfer was to be made by the Comptroller and Auditor General of India. Shri P.P Rao attacked this rule as giving unfettered discretion to the Comptroller and Auditor General. But the discretion is subject to the guidelines contained in rule 2 itself. The transfer is to be effected according to the decision of the Government contained in the letter dated 1st March 1968. Secondly the transfer is to be of such officers and staff which shall, as far as possible, be persons who at the time of the transfer were engaged in the accounting work relating to the Telecommunications Branch which work itself was being transferred to the Posts and Telegraphs Department. Thus only those persons who were actually doing the work of the Telecommunications Branch were transferred along with the work itself. The Comptroller and Auditor General had thus little or no discretion left in choosing the persons to be transferred. Further, the terms and the conditions of the transfer were to be agreed upon by the Comptroller and Auditor General of India on the one hand and the Secretary to the Government of India in the department of Communications (Posts and Telegraphs) on the other hand. These being two departmental heads representing the two sets of employees to be integrated by the transfer. Rule 3 says that the transfers effected from 1st March 1968 onwards before the date of the publication of these rules (30-8-1968) shall be deemed to have been made in pursuance of these rules. The decision in Padmanabhacharya's case is, therefore, inapplicable to the present case just as it was held inapplicable to the rules framed in Vadera's case in paragraph (26) of the report in AIR 1969 SC 118.
Shri P.P Rao, however, strongly attacked the transfer rules dated 30-8-1968 at Annexure R-6 as being mala fide. He argued that the sole purpose of these rules was to defeat the writ petitions which had already been filed. He argued that the Government should have first cancelled the promotion made on 6th July, 1968 and passed fresh orders of promotion after the promulgation of the transfer rules dated 30-8-1968. We are unable to agree. The course of action suggested by Shri P.P Rao was certainly open to the Government. But it would have been inconvenient and round about. The officers promoted would have been reverted for no fault of theirs and the action of the Government in promoting them would have had to be admitted to be illegal. The Government, therefore, chose an alternative method of achieving the same result by making the transfer rules retrospective. In Madhya Pradesh vs. Vishnu Prasad Sharma, A.I.R 1966 S.C 1593, the administrative action of the Government in acquiring certain lands was struck down as being contrary to the provisions of the Land Acquisition Act 1894. Thereupon, the Land Acquisition Act was amended and the administrative action consisting of acquisition of land was retrospectively validated. The legality of such retrospective validation was upheld by the Supreme Court in Udai Ram Sharma vs. Union of India (1968) 3 S.C.R 41 at pages 62 to 67 after a review of the case law. Mitter, J. speaking for the majority of the Court pointed out that the Legislature may adopt either of the following two methods to validate an invalid administrative action, namely, (1) to give retrospective effect to the legislation under which the administrative action would have been valid and (2) to declare that invalid action shall be deemed to have been validly taken. We see no reason why the same principle should not apply to the making of rules by the President to validate an invalid administrative action retrospectively. In the present case, the Government has adopted the first method, namely, of giving retrospective effect to the rules at Annexure R-6. The learned Chief Justice of India speaking for the Court in Shri Prithvi Cotton Mills Ltd. v. Broach Borough Municipality (AIR 1970 S.C 192) para 4, made the following observations about validating statutes in general:
“When a legislature sets out to validate a tax declared by a Court to be illegally collected under ineffective or invalid law, the cause for ineffectiveness or invalidity must be removed before validation can be said to take place effectively.”
The validation can, therefore, be not only of invalid administrative action but also of an invalid statute and both can be done retrospectively. The Government was, therefore, justified in validating its invalid administrative action by giving retrospective effect to the rules at Annexure R-6. The question of mala fides simply does not arise. It would not be proper to insist that the Government should not exercise the power of giving retrospective affect to the rules though the Government undoubtedly possessed such power. The obvious reason for giving retrospective effect to the rules was to validate the promotions made by the Government in anticipation of the promulgation of the rules. It cannot be doubted that the legal Advisers of the Government must have advised the Government that statutory rules must be amended soon to regularise the ad hoc and temporary promotions made on 6th July, 1968. They must have also pointed out to the Government that in the absence of such new statutory rules, the promotions were invalid in the eye of law. The application by the petitioners that the respondents be asked to produce the files containing the deliberations and decisions to promulgate the new rules on 30-8-1968 was intended to expose the mistake committed by the Government and the admissions which may have been contained in the files that the action of the Government was legally wrong and had therefore to be validated. But we are prepared to assume all this to be true. The mere exposure of the mistake made by the Government would not help the petitioners, because the Government subsequently validated their action retrospectively. We therefore disallow the application made by the petitioners for the production of these documents as they are not relevant for our purpose. We also hold that the retrospective validation of their action by the Government does not in any way amount to bad faith.
Shri Rao then advanced a novel argument against the validity of the transfer rules at Annexure R-6 as also the subsequent rules dated 23-11-1968 at Annexure R-7 which formally superseded the rules dated 15th February 1968 and provided for the promotion of both the transferred personnel as well as the preexisting personnel as Accounts Officers. These rules were framed by the President under the proviso to Article 309 of the Constitution. In Jayantilal Amrit Lal Shodhan v. F.N Rana (1964) 6 S.C.R 294, Shah J. speaking for the majority of the Court at pages 307 and 308, drew a distinction between two kinds of powers exercised by the President, namely, (1) powers of the Central Government which may be entrusted to a State Government or an officer of the State or to other officers; and (2) powers which are not powers of the Union Government but are vested in the President and which are incapable of being delegated or entrusted to any other body or authority. The power to make rules under the proviso to Article 309 was placed in the second category to be exercised by the President and not to be entrusted or delegated to any other body or authority. Shri P.P Rao points out that the rules at Annexures R-6 and R-7 are not signed by the President himself. They are expressed to be made by the President but purport to be authenticated by officers of the Central Government apparently under Article 77(2) of the Constitution. But, says Mr. Rao, Article 77 like the preceding Articles 53(1) and 73(1) apply only to exercise of executive power of the Government of India. These articles do not authorise the authentication of the rules at Annexures R-6 and R-7 firstly because the rules are not made by the President as the head of the Union of India but as the President and secondly because the authentication under Article 77(2) can be made only of executive orders and instruments but not of rules which are legislative in character.
The rules at R-6 and R-7 are undoubtedly an exercise of legislative power i.e rule-making or subordinate legislation by the President. These rules govern the “conditions of service of persons appointed to public services and posts in connection with the affairs of the Union” within the meaning of Article 309. Article 309 itself is a part of Chapter XIV of the Constitution which deals with “Services under the Union and the State”. These services are therefore of the Central Government and not of the President as such. It would appear therefore, with respect, that the point emphasised by Shah J. is that this power of the President was not such as could be entrusted or delegated by him to some other authority. His lordship did not say that the services for whom the rules under the proviso to Article 309 are made do not belong to the Union and belong to the President as such. It would appear, therefore, that these rules are made by the President as the head of the Union of India for the Services of the Union of India though on principle this function of the President, being legislative in character, could not be entrusted or delegated by him to any other authority except insofar as the proviso to Article 309 expressly provides that the President may direct some other person to make such rules.
The legal position may be considered from two points of view, namely, (1) that the President acts as the head of the Union Government in making these rules or (2) that he does so as a persona designata. If he acts as the head of the Central Government in making these rules, then the provisions of Chapter I Part V of the Constitution would be applicable to the exercise of this function by the President. Shri Rao, however, argues against this on the ground that the rule-making is a legislative function and therefore these provisions do not apply to the exercise of this function by the President. We appreciate this argument. It is necessary to consider the scheme of Part V of the Constitution. The title of Part V is “The Union” namely, the Union of India. It is divided into four chapters. Chapter I deals with the “Executive”, Chapter II with the “Parliament” and Chapter IV with the “Union Judiciary”. The legislative powers proper i.e, the sovereign power to make ordinances equal in status to parliamentary statutes is dealt with separately in Chapter III. The power of the President to make rules either under the Constitution or under a parliamentary legislation is not covered by Chapter III. It is an administrative power though given by a statute. This is why rules are called by some authors “administrative quasi legislation” or “subordinate legislation”. The power to make such rules is not covered by Chapter III. This power is covered by Chapter I as it is analogus to administrative power in the sense that it is a power exercised by the executive. The division of the Union of India is made into three departments or branches of the State, namely, the executive department, the legislative department and the judicial department—all three constituting the State or the Union of India. Such a division is different from the separation of powers exercised by the different branches of the State, namely, executive power, legislative power and judicial power. This latter division rests on the nature or quality of the function performed by the Government or the department concerned. The distinction between legislative, administrative, judicial and quasi-judicial powers may be relevant in a totally different context, such as judicial review, etc. But Part V is not concerned with the nature or the quality of the powers exercised by the Executive, the Parliament and the Union Judiciary as observed by the Supreme Court at page 306 of Jayantilal's case referred to above as follows—“it cannot however be assumed that the legislative functions are exclusively performed by the Legislature and executive functions by the Executive and judicial functions by the Judiciary alone. The Constitution has not made an absolute or rigid division of functions between the three agencies of the State. To the Executive exercise of functions legislative or judicial are often entrusted”.
Under Article 53(1) “the executive power of the union shall be vested in the president and shall be exercised by him either directly or through officers subordinate to him in accordance with the Constitution. Under Article 73(1) “subject to the provisions of this constitution, the executive power of the union shall extend to the matters with respect to which Parliament has power to make laws”. Under Article 77(1) “all executive action of the Government of India shall be expressed to be taken in the name of the President”. What is the meaning of the expressions “executive power” and “executive action” in the above provisions of the constitution? They can mean only one of the following two things, namely:—
(1) the power or the action exercised or taken by the executive department of the state,
or (2) only such power as is administrative in nature as distinguished from legislative or judicial power exercised by the Executive.
The latter meaning could be placed on these provisions only if chapter I of part V of the constitution were concerned with the distinction between different kinds of powers such as judicial, legislative and executive according to the quality or the content of the power. But such a distinction has no relevance to chapter I of part V of the constitution inasmuch as the only division contemplated by part V is between the three great departments of the State, namely, the Executive, the Legislature and the Judiciary, irrespective of the kinds of powers which may be exercised by each of them. It would follow, therefore, that the expressions “executive power” and “executive action” in this context mean the power or the action of the Executive. The adjective “executive” denotes that part of the state which is exercising the power. It is the source of the power which is designated thereby and not the nature or the quality of it. Therefore, so long as the source or the author of the power is the Executive, the provisions of chapter I of part V of the constitution would apply whether the nature of the power is strictly administrative or not. Therefore, when Article 77(2) says that “orders and other instruments made and executed in the name of the President shall be authenticated in such manner as may be specified in rules to be made by the President” all orders and instruments made by the President are contemplated, it is immaterial if a particular order or instrument is administrative or rule making that is, subordinate legislative in character. The very purpose of Article 77(2) is to enable certain authorised officers to authenticate the orders and instruments on the sole ground that they are made in exercise of the executive power of the Government of India. All that the officers have to see is that the order is made by the Executive as distinguished from the Legislature or the Judiciary. They do not have to scrutinize the nature or the contents of the order. In fact, they would not have the power to sit in Judgment over such orders of the Government. It is not open to these authorised officers to refuse to authenticate an order of the Government on the ground that the contents of the order are not administrative but are legislative in character. Article 77 would be unworkable if every order and instrument would have to be scrutinized by the authorised officers with a view to determine if it is administrative in nature. In fact, some orders would be partly administrative and partly legislative and it would be impossible for anyone to decide whether it should be regarded as executive or legislative only. The provisions of Article 77(2) are fundamental and have to be broadly construed. To construe them narrowly would be to defeat their very purpose and to subject action taken thereunder to the uncertainty of challenges and litigation. This is why Article 77(2) further enacts that “the validity of an order or instrument which is so authenticated shall not be called in question on the ground that it is not an order or instrument made or executed by the President”. We are, therefore, of the view that the executive power or the executive action of the President in Chapter I of Part V of the Constitution is not restricted to the exercise of powers which are entirely administrative in nature but is broad enough to include rule-making are distinguished from the power to issue ordinances which are sovereign legislation and not subordinate legislation like rule making. Therefore, the authentication of a statutory instrument made by the President in exercise of the powers conferred on him by the proviso to Article 309 has to be authenticated under Article 77(2) of the Constitution in the same way as an administrative order made by him has to be authenticated thereunder.
Let us now assume that the rules made under the proviso to Article 309 are made by the President not as the head of the Central Government but as a persona designata. There is no provision either in the Constitution or outside as to how orders made by the President as such are to be authenticated. The only provision is Article 77(2). It would be reasonable to conclude, therefore, that all orders made by the President whether acting as the head of the Central Government or otherwise have to be authenticated under Article 77(2) of the Constitution.
Shri Rao says that, except according to the proviso to Article 309, the power of the President to make rules thereunder cannot be delegated by him to any person or authority. As the President has not delegated this power to any other authority, the rules at R-6 and R-7 could not be issued under the signatures of the officers inasmuch as these officers have not been delegated the power to make these rules by the President. This argument proceeds on a misconception. There is a basic distinction between authentication of the order made in the name of the President by an authorised officer and action taken by a person or an authority to whom the President has delegated any of his powers. Article 77(2) deals with authentication of the powers of the President and not with orders made by the delegates of the President. This is why the orders are expressed to be made by the President. Instead of being signed by the President personally they are authenticated by officers who are also a part of the Government of India to show that they are executed by the President himself. This is the significance of the provision in Article 77(2) that “the validity of an order or instrument which is so authenticated shall not be called in question on the ground that it is not an order or instrument made or executed by the President”.
In Emperor v. Sibnath Banerji (AIR 1945 Privy Council 156), the Judicial Committee of the Privy Council had to consider section 49(1) of the Government of India Act, 1935, which in the sphere of Provinces (now States under the Constitution) corresponded with Article 154(1) of the Constitution. In the Union field, it corresponds to Article 53(1) of the Constitution. In connection with this provision, their Lordships observed at page 162 column 2 of the report as follows :
“Their Lordships would also add, on this contention, that sub-section (5) of section 2 (of the Defence of India Act) provides a means of delegation in the strict sense of the word, namely, a transfer of the power or duty to the officer or authority defined in the sub-section with a corresponding divestiture of the Governor of any responsibility in the matter, whereas under section 49(1) of the Act of 1935 the Governor remains responsible for the action of his subordinates taken in his name”.
The implication is that there is no delegation when the Governor remains responsible for the action of his subordinates taken in his name. In M/s Bijoya Lakshmi Cotton Mills Ltd. v. State of West Bengal (AIR 1967 Supreme Court 1145) it was held by the Supreme Court that unless Rules of business required the Minister to deal with a matter himself, an Assistant Secretary could deal with it on behalf of the Government. The personal satisfaction of the Governor was not needed.
To sum up, therefore, when we have an order or an instrument before us which is expressed to be made in the name of the President and which is duly authenticated then, in our view, the order or instrument “shall not be called in question on the ground that it is not an order or instrument made or executed by the President” in view of Article 77(2) of the Constitution. Since the order is thus established to have been made by the President, it is neither necessary nor permissible to enquire whether the President was acting as the head of the Union Government or as President as such.
The terms and conditions on which the Audit personnel doing the accounts work of the Telecommunications Branch has been integrated with the pre-existing Posts and Telegraphs department's Senior Accountants are eminently just and fair. The basis for the fixation of the seniority between the SAS Accountants and the pre-existing P & T Senior Accountants is simple, namely, the length of approved continuous service in the corresponding grades which carried the same pay scales. Shri Rao pointed out to the representation made by the P & T Senior Accountants at Annexure I to the writ petition. In our view, it would not be relevant to look into the previous history of the personnel belonging to these two different Services. The only relevant consideration is the position occupied by the SAS Accountants vis-a-vis the P & T Senior Accountants at the time of the integration. At that time, they were both enjoying the same pay scale. The SAS Accountants were actually doing the accounts work of the Telecommunications Branch. This work has been transferred to the Posts and Telegraphs department. Necessarily therefore the SAS Accountants doing that work had to be transferred to the Posts and Telegraphs department along with the work. They have also to be equated with the P & T Senior Accountants who are doing equivalent work in the Posts and Telegraphs department. It is because the SAS Accountants were doing the work now transferred to the Posts and Telegraphs department that the SAS Accountants are entitled to promotion as Accounts Officers in the same way that the P & T Senior Accountants are so entitled. Therefore, the same criteria have been applied to both these sets of employees for promotion, namely, five years of approved service in the grades which have had the same pay-scale. It is not permissible to enquire any further into the history of the services. The SAS Accountants themselves may have a grievance against their transfer to the Posts and Telegraphs department as their prospects in the Indian Audit and Accounts department may have been better and we understood during the argument that some of them had actually filed a writ petition in the Punjab and Haryana High Court complaining against their transfer to the Posts and Telegraphs department. But that writ petition failed. The present writ petitions by the P & T Senior Accountants would also fail inasmuch as the past history of the Services is not material at all. Whatever may be the previous history and whatever may be the reasons by which the SAS Accountants and the P & T Senior Accountants came to occupy their present position at the time of the integration, once they occupied the posts of SAS Accountants and the P & T Senior Accountants which had the same scales of pay and which had the same work, they are bound to be equated by the integration. If the integration in any way affected their chances of promotion or even resulted in the reversion of some of them, the chances of promotion are not conditions of service and the reversion is not a reduction in rank. [State of Mysore v. G.N Purohit, 1967 Services Law Reporter 753; State Of Orissa v. Durga Charan Das, (1966) S.C.R 907; and State of Punjab v. Jagdip Singh AIR 1964 Supreme Court 521 approving the decision in Devasahayam's case reported in AIR 1958 Madras 53 and AIR 1959 Madras 1]. We therefore find that the integration did not involve any discrimination against the petitioners.
During the course of argument, the rules promulgated by the Government on 23rd November 1968 were produced by the learned counsel for the respondents. We took judicial notice of the same and exhibited them as Annexure H-7 to the written statement. Even in the absence of these rules, the decision of these writ petitions would have been the same. For the sake of completeness of the record, however, we have taken them on record as we are convinced that no prejudice is caused to the petitioners thereby.
The writ petitions are therefore dismissed but in the circumstances of the case we make no order as to costs.
A.N.K Petitions dismissed.