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Smart Summary

Factual and Procedural Background

The petition challenges the Central Administrative Tribunal, Principal Bench, New Delhi's order dated 7.1.1999 (Annexure-P.2) disposing of Miscellaneous Application No. 2726/98 in O.A.2560/98 filed by respondents 2 to 5. The respondents, who were working as scientists in different institutions under the Indian Council of Agricultural Research (ICAR), approached the Tribunal on 28.12.1998 against the proposed action to retire them on attaining the age of 60 years. On 29.12.1998, while issuing notice in the main petition, the Tribunal restrained the petitioners from retiring the respondents on 31.12.1998. The impugned order extended that interim protection until final disposal of the petition on the condition that the respondents give undertakings to their respective institutions that, if they do not succeed in their petition, they will deposit in lump sum the excess salary received by them. The petitioners filed the present writ petition challenging that Tribunal order. The Court heard counsel at the admission stage, and the respondents filed reply affidavits and documents that had been part of the Tribunal pleadings.

Legal Issues Presented

  1. Whether the Tribunal was justified in granting interim relief that prevented the respondents' superannuation at age 60 and effectively allowed them to continue in service pending final disposal of their petition.
  2. Whether the Tribunal erred in treating the Chadha Committee's recommendations (to raise the retirement age from 60 to 62) as having been approved by the Prime Minister/President of ICAR and as being effectively implemented or on a course to be implemented, notwithstanding apparent objections and lack of formal Cabinet or Governing Body approval.
  3. Whether, in granting such interim relief, the Tribunal properly considered the balance of convenience, irreparable loss/injury and public interest in addition to any prima facie case favouring the respondents.

Arguments of the Parties

Petitioners' Arguments

  • Bye-law 33(a) of ICAR fixes the age of superannuation of scientific and technical personnel at 60 years; no extension is permissible unless absolutely essential in the interest of research.
  • ICAR is only a deemed university for degree recognition and cannot be treated as a university under the parameters of Section 4 of the University Grants Commission Act (as argued by the petitioners).
  • The Tribunal incorrectly assumed that the Chadha Committee recommendations (including raising retirement age to 62) had been approved by the Agriculture Minister/Prime Minister. The record showed only approval to place the recommendations before the Cabinet; neither the Cabinet nor the Governing Body had approved them and the Cabinet had in fact returned the proposal.
  • The Department of Personnel and Training (DOPT) had raised serious objections to the recommendations; thus the Tribunal erred in treating the recommendations as effectively approved and in stating that the Governing Body would likely follow whatever the Cabinet approved.

Respondents' Arguments

  • ICAR is fully funded by Government of India and administratively controlled by the Government through the Department of Agricultural Research and Education, Ministry of Agriculture.
  • The Government (on UGC recommendation) issued a policy circular dated 27.7.1998 revising pay scales effective 1.1.1996 and decided to increase the age of superannuation of university and college teachers from 60 to 62 years; subsequent circulars (6.11.1998 and 31.7.1998) extended related benefits to other categories and institutions.
  • The Chadha Committee was constituted to address pay revision and retirement age for ICAR scientists; it made recommendations which the respondents' counsel contended were "duly approved and accepted by Prime Minister of India being Minister-in-Charge", leaving only implementation to be carried out by ICAR's administration.
  • On an earlier occasion (30.10.1988) the UGC package had been extended to ICAR scientists effective 1.1.1986, creating a parity which, it was contended, made it imperative to apply UGC recommendations mutatis mutandis when the revised pay package and retirement age were adopted in July 1998.
  • Counsel relied on two Supreme Court decisions (Dr. S.M. Ilyas v. ICAR and ICAR v. Satish Kumar) to support the submission that the UGC package's benefits apply mutatis mutandis to ICAR scientists and therefore the Tribunal was justified in granting interim relief in view of a strong prima facie case.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bank of Maharashtra v. Race Shipping and Transport Co. Pvt. Ltd., (1995) 3 SCC 257 (cited with AIR 1975 S.C. 1368) The Supreme Court deprecated granting interim orders which practically grant the principal relief on the basis of a prima facie case alone, without regard to balance of convenience, public interest and other relevant factors. The Court relied on this principle to criticize the Tribunal for granting an interim order that in effect allowed the respondents to continue in service beyond the bye-law retirement age, without adequate consideration of balance of convenience and public interest.
Bharatbhushan Sonaji Kshirsagar (Dr) v. Abdul Khalik Mohd. Musa, 1995 Supp (2) SCC 593 It was held that it is improper to allow interim relief which has the effect of almost allowing the main relief itself. The Court invoked this authority to support its conclusion that the Tribunal should not have granted interim relief that conferred on respondents the practical benefit they sought in the main petition.
Dr. S.M. Ilyas v. Indian Council of Agricultural Research, (1993) 1 SCC 182 Referenced by respondents' counsel in support of the submission that the UGC package (as applied to universities) should be applied mutatis mutandis to ICAR scientists. The Court recorded that respondents relied on this decision to argue parity/application of UGC package; the opinion notes the reliance but reaches its own conclusion that the Tribunal's interim order was not justified for the reasons set out in the judgment.
ICAR v. Satish Kumar, (1998) 4 SCC 219 Referenced by respondents' counsel along with Dr. S.M. Ilyas to support the contention that UGC package principles apply mutatis mutandis to scientists/teachers in ICAR settings. The Court noted the respondents' reliance on this decision but determined that, notwithstanding those citations, the Tribunal's grant of interim relief was improper because it failed to consider balance of convenience, irreparable injury and facts regarding approval of Chadha Committee recommendations.

Court's Reasoning and Analysis

The Court considered the submissions made at the bar and the record before it. It articulated a multi-step analysis explaining why the Tribunal's impugned interim order was impermissible:

  1. The Court acknowledged that the respondents may have a strong prima facie case, but emphasized that a prima facie case alone is not sufficient to justify an interim order that effectively grants the main relief sought; the Tribunal was required also to consider balance of convenience and irreparable loss and injury.
  2. The Court relied on precedents warning against interim orders that practically give the principal relief (Bank of Maharashtra and Bharatbhushan), using those authorities to underline the necessity of factoring in public interest and competing rights before granting such relief.
  3. The Court observed that although the impugned order conditioned continued payment on respondent undertakings to repay salaries if they lose, the Tribunal had nevertheless granted a "fresh lease of service life" that the bye-laws did not permit; the Court noted that monetary compensation could adequately remedy any eventual success by respondents and that interim continuation of service could usurp positions of others who would otherwise occupy those posts.
  4. The Court examined the factual record relating to the Chadha Committee recommendations and concluded that the Tribunal proceeded on erroneous factual premises: neither had the Prime Minister (as ex-officio President of ICAR) given the substantive approval the Tribunal attributed, nor had the Department of Personnel and Training concurred; what was approved was only a note to place the recommendations before the Cabinet, and there were objections and the Cabinet had returned the proposal.
  5. On the basis of these factual errors and the failure to weigh balance of convenience and irreparable injury, the Court concluded the Tribunal should not have granted the interim relief allowing respondents to remain beyond the bye-law retirement age.

The Court expressly limited its determination to the propriety of the interim order and noted that the observations made would not prejudice either party on the merits nor influence the Tribunal when disposing of the main petition.

Holding and Implications

Holding: Writ petition allowed; the impugned Tribunal order dated 7.1.1999 is quashed and set aside.

Implications:

  • The interim protection granted by the Tribunal, which permitted respondents to continue in service beyond the superannuation age provided in the ICAR bye-laws, has been vacated by the High Court.
  • The direct effect is that the Tribunal's order permitting continuation pending final disposal is set aside; the respondents no longer have the interim safeguard previously granted by the Tribunal.
  • The Court stated that its observations should not prejudice the parties on the substantive merits; the Tribunal remains free to adjudicate the main petition on its merits without being influenced by the High Court's comments in this order.
  • No broader legal precedent was announced beyond the application of existing principles governing interim relief; the decision is confined to the facts and reasoning described in the opinion.
W.P allowed.

    Union Of India v. Central Administrative Tribunal & Ors.

    Devinder Gupta, A.C.J— Order (Annexure-P.2) dated 7.1.1999 passed by the Central Administrative Tribunal, Principal Bench, New Delhi disposing of Miscellaneous Application No. 2726/98 in O.A.2560/98 filed by respondents 2 to 5 is under challenge by the petitioners.

    2. The respondents working as scientists in different Institutions under Indian Council of Agricultural Research (for short “I.C.A.R”), approached the Tribunal on 28.12.1998 against the proposed action to retire them on attaining the age of 60 years. On 29.12.1998, while issuing notice in the main petition, by way of interim measure, the petitioners were restrained from retiring the respondents on 31.12.1998 After hearing the miscellaneous application impugned order was passed holding that it was a fit case where interim order deserves to be extended till final disposal of the petition on the condition that the respondents shall give an undertaking before their respective Institutions/Directorates that in case they do not succeed in their petition, they shall deposit back, in lump sum, the excess salary received by them.

    3. The challenge by the petitioners to the impugned order is on various grounds. The main ground being that Bye-law 33(a) of I.C.A.R provides age of supperannuation of scientific and technical personnel as 60 years and no extension of service is permissible unless absolutely essential in the interest of research. I.C.A.R is only a deemed university for the purpose of giving recognition to the degrees so offered by the Institutes and cannot be considered as an university falling within the parameters of Section 4 of the University Grants Commission Act. Tribunal erroneously assumed that the recommendtions of Chadha Committee, constituted to advise on pay package, retirement age and other conditions of service of teachers/scientists etc. recommending the raising of the retirement age from 60 to 62 years, had been approved by the Agriculture Minister (the Prime Minister), who is also the Ex-officio President of I.C.A.R There was no such approval on the file. Approval was only to the note of putting up the recommendations of the Committee before the Cabinet for its approval. Only on approval by the Cabinet that the recommendations of the Chadha Committee, if ultimately approved by the Governing Body, any right would have accrued to the respondents to claim increase in the age of retirement. Neither the Cabinet, nor the Governing Body had yet approved the recommendations of the Committee. To the contrary the Cabinet had returned the proposal. The Department of Personnel and Training had also raised serious objection while putting up the recommendation of Chadha Committee before the Cabinet. In this view of the matter, the Tribunal, in the impugned order, wrongly assumed that “admittedly the proposal to enhance the age of retirement of the scientists, engaged in teaching and research has been approved by the President of ICAR, namely, the Prime Minister of India as the Minister-in-Charge of Agriculture.” The Tribunal also wrongly assumed that the proposal relating to the extension of age from 60 to 62 years, in ICAR Scientists duly approved by the Department of Expenditure and Department of Personnel and Training stands submitted to the Cabinet. As a matter of fact Department of Personnel and Training had objected to the recommendations. On misreading of record and on this erroneous premise the Tribunal remarked that “the possibility of the Governing Body not agreeing to the Cabinet decision is remote since the proposal has emanated from the Council itself duly approved by Agriculture Minister.”

    4. Learned Counsel for the parties were heard at the admission stage itself. The respondents along with reply affidavit also placed on record documents, which the petitioners had not appended with the petition, which formed part of pleadings before the Tribunal.

    5. Mr. B.T Kaul, Learned Counsel for the respondents vehemently contended that ICAR is totally funded by Government of India and its complete administrative control vests in Government of India through Department of Agricultural Research and Education, Ministry of Ariculture. On the recommendation of University Grants Commission, Government of India, Ministry of Human Resources Development issued a policy circular on 27.7.1998 whereby pay scales of all teachers in Central Universities were revised with effect from 1.1.1996 In addition to the revised pay scales and other terms and conditions of service of teachers, a decision was also taken by the Government of India to increase the age of superannuation of university and college teachers from 60 to 62 years. It was slightly modified by another circular dated 6.11.1998 whereby the benefit of increase in the age of superannuation was also made available to non-teaching officers/employees of the Central Universities including Registrars, Librarians, Physical Education personals etc., who were being treated at par with teachers. In respect of working teachers in institutions affiliated/controlled by AICTE like S.P.A, N.I.F.T etc. a policy circular was issued by Ministry of Human Research Development on 31.7.1998 increasing the retirement age from 60 to 62 years. The scientists, teachers and administrators working in various institutes of ICAR had some genuine additional demands over and above pay revision with effect from 1.1.1996 and superannuation age from 60 to 62 years, on the pattern of University Grants Commission's recommendation. Chadha Committee was constituted. It made recommendations, which were duly approved and accepted by Prime Minister of India being Minister-in-Charge. The only thing which remained to be done was to carry out the decision of the Prime Minister, who was also ex-officio President of ICAR. Thus the Tribunal was right in allowing the interim relief to the respondents, after it came to the conclusion that a strong case had been made out in respondents' favour.

    6. Mr. Kaul also contended that on an earlier occasion decision regarding pattern to be adopted for the revision of pay scales of IACR was for consideration by Government of India. On 30.10.1988 a policy decision was taken that U.G.C package be extended to ICAR scientists, which was made applicable with effect from 1.1.1986 Once there was a parity between those governed by U.G.C recommendations and the one governed by ICAR, it was imperative upon the petitioners to have implemented the U.G.C recommendations mutatis mutandis, when revised pay package and other conditions of service were made applicable to scientists, teachers etc. with effect from the issuance of notification dated 27.7.1998

    7. Learned Counsel for the respondents also made reference to the two decisions of the Supreme Court in Dr. S.M Ilyas v. Indian Council of Agricutural Research, (1993) 1 SCC 182 and I.C.A.R v. Satish Kumar, (1998) 4 SCC 219 in support of his submission that in so far as U.G.C package is concerned, the same mutatis mutandis applies to all scientists/teachers as this was made applicable with effect from 1.1.1986 and when through notification dated July, 1998 it was applied to all Central Universities, it automatically applied to respondents also and thus in view of a strong case having been made out by respondents, the Tribunal was justified in granting interim relief with which no interference was called for by this Court in exercise of its writ jurisdiction.

    8. Having considered submissions made at the Bar, we are of the view that for more than one reason, it was not permissible for the Tribunal to have passed the impugned order by way of interim measures, which has the effect of almost allowing the relief prayed for in the main petition. The case of the respondents is yet to be adjudicated on merits. May be that, as has been contended by learned Counsel for the respondents that there is a very strong prima facie case in favour of the respondents, but that alone cannot form the basis to grant such a relief by way of an interim measure, since such a relief will have to be granted to the respondents only on allowing the petition. At this stage when only the question of interim relief was being considered, in addition to a very strong prima facie case, it was also incumbent upon the Tribunal to have taken into consideration two other aspects, namely, balance of convenience and irreparable loss and injury.

    9. In Bank of Maharashtra v. Race Shipping and Transport Co. Pvt. Ltd., (1995) 3 SCC 257 : AIR 1975 S.C 1368, the Supreme Court deprecated the practice of granting interim orders, which practically give the principal relief sought in the petition for no better reason than that a prima facie case has been made out, without being concerned about the balance of convenience, the public interest and other relevant factors. Again in Bharatbhushan Sonaji Kshirsagar (Dr) v. Abdul Khalik Mohd. Musa, 1995 Supp (2) SCC 593, it was held that it was not proper to allow interim relief, which has the effect of almost allowing the main relief itself.

    10. Admittedly, the impugned order has been made subject to condition that the respondents will pay back salary, to be drawn by them, in case of dismissal of their petition. It was the case of the respondents before the Tribunal that as per existing Bye-law action was being taken by the petitioners to superannuate them on 30.12.1998 For the reasons stated in the petition they were entitled to continue till the age of 62 and not till the age of 60. In such a case when on the existing Bye-laws of ICAR the respondents would have retired on 30.12.1998 on attaining the age of 60 years, a fresh lease of service life, for the duration of the pendency of their petition before the Tribunal has been granted by the impugned order. The Tribunal failed to consider an important aspect that in the event of success of the respondents in their petition, they can very well be compensated in terms of money. To the contrary in case their petition would fail it will also have the effect of an employee being continued on the rolls of the I.C.A.R, who otherwise would not be entitled to hold that position. In that situation it would amount to usurping the right of others, who would have been in their position, but for the interim order. Thus the balance of convenience did not lie, in such like situation, in granting injunction in favour of the respondents. Moreover on perusal of the relevant files, we find that the Tribunal proceeded contrary to the facts on two basic espects. Neither the Prime Minister, being the ex-officio President of I.C.A.R, in the capacity of Minister-in-Charge of Agriculture, had given his approval to the recommendations of Chadha Committee, nor there is concurrence to such a proposal by the Department of Personnel and Training. The note for putting up of the report of the Committee before Cabinet alone was approved by the Prime Minister, as Minister-in-Charge of Agriculture. There was a strong objection raised by the Department of Personnel and Training in accepting recommendation of Chadha Committee. Thus on wrong assumption an opinion was formed by the Tribunal that the possibility of Governing Body not agreeing to Cabinet decision is remote.

    11. In the circumstances aforementioned the Tribunal was not at all justified in having allowed the respondents' prayer by way of interim measure and thereby permitting them to be continued beyond the age of superannuation, as provided in the Bye-laws and for that reason, we are of the view that the writ petition deserves to be allowed and the impugned order deserves to be quashed and set aside. Ordered accordingly. Needless to add that the observations made herein will not prejudice the case of either parties on merits, nor influence the Tribunal while disposing of the main petition of the respondents.

    W.P allowed.
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    Union Of India v. Central Administrative Tribunal & Ors.
    (Feb 5, 1999)