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AMICUS AI
Citation Codes
Neutral Citations
1993 INSC 54
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Forty-second Amendment
  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Neutral Citations
1993 INSC 54
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Forty-second Amendment
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

C.L. Verma, an employee of Western Railway, Church Gate, Bombay, was served a charge-sheet on 30 September 1983 and dismissed from service with effect from 29 August 1985. His departmental appeal was rejected by the President of India on 21 August 1986. Verma challenged the dismissal before the Central Administrative Tribunal (CAT), which on 8 August 1991 set aside the dismissal solely because he had not been supplied a copy of the Enquiry Officer’s report, relying on this Court’s decision in Union of India v. Mohd. Ramzan Khan (1991) 1 SCC 588. The Union of India sought relief from the Supreme Court, which condoned delay, granted special leave, and issued the present order.

Legal Issues Presented

  1. Whether the requirement to furnish the Enquiry Officer’s report to a delinquent employee, recognised in Mohd. Ramzan Khan, applies to disciplinary orders passed before that 1991 judgment when those orders are still under challenge.
  2. Whether, pending resolution of the above issue by a Constitution Bench, the respondent should be reinstated with back wages or whether the CAT’s order should be stayed.

Arguments of the Parties

Union of India’s Arguments

  • The ruling in Mohd. Ramzan Khan was expressly given prospective effect; therefore, dismissals ordered prior to that judgment—including Verma’s—cannot be invalidated for non-supply of the enquiry report.
  • The CAT overlooked the operative portion of Ramzan Khan and erred in reinstating the respondent.

Respondent’s Arguments

  • The prospective declaration in Ramzan Khan should not defeat challenges that were already pending on the date of that judgment; it bars only fresh challenges to orders that had become final.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Union of India v. Mohd. Ramzan Khan (1991) 1 SCC 588 Delinquent employee is entitled to a copy of the Enquiry Officer’s report; ruling declared to operate prospectively. CAT relied on it to set aside dismissal; Supreme Court examined para 17 to interpret its prospective scope.
Managing Director, ECIL v. B. Karunakar (1992) 1 SCC 709 Referred question of entitlement to enquiry report to larger Bench; granted interim reinstatement with half back wages. Current appeal tagged with Karunakar for Constitution Bench; Court distinguished interim relief granted there.
Kailash Chander Asthana v. State of U.P. (1988) 3 SCC 600 Earlier view that supply of enquiry report post-42nd Amendment was unnecessary. Cited as creating a conflict necessitating larger Bench consideration.
Union of India v. A.K. Chatterjee (1993) 2 SCC 191 Applied prospective limitation of Ramzan Khan to uphold a pre-1991 dismissal. Referenced to show divergent High Court and Tribunal approaches after Ramzan Khan.

Court's Reasoning and Analysis

The Supreme Court reviewed paragraph 17 of Mohd. Ramzan Khan, which stated that the newly recognised right to receive the enquiry report would apply prospectively. Observing that conflicting views had since arisen—particularly between Kailash Chander Asthana and Ramzan Khan—the Court noted that a three-Judge Bench in B. Karunakar had already referred the issue to a Constitution Bench.

Given the pending constitutional reference, the Court decided that the present appeal should be heard together with B. Karunakar. In considering interim relief, the Court adopted a fact-specific approach: unlike the temporary reinstatement ordered in Karunakar, the charge against Verma involved acceptance of a Rs 2,000 bribe for securing a railway quarter, a serious allegation that had not been set aside on merits. Balancing the gravity of the charge against procedural fairness concerns, the Court concluded that reinstatement or back wages were not appropriate at this stage. Consequently, it stayed the CAT’s order while awaiting the Constitution Bench’s final determination.

Holding and Implications

ORDER: Delay condoned; special leave granted; appeal tagged with B. Karunakar for consideration by a Constitution Bench; operation of the CAT’s judgment dated 8 August 1991 is STAYED insofar as it relates to C.L. Verma; no interim reinstatement or back wages granted.

Implications: The decision maintains the status quo pending authoritative clarification of the prospective scope of Ramzan Khan. It signals that interim relief following Karunakar is not automatic and will depend on case-specific factors. No new precedent is set until the Constitution Bench rules.

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    Union Of India And Others v. C.L Verma .

    N.M Kasliwal, J.— Delay condoned.

    2. Special leave granted.

    3. The respondent C.L Verma was an employee of Western Railway, Church Gate, Bombay. He was served with a charge-sheet dated September 30, 1983. He was dismissed from railway service with effect from August 29, 1985 by the disciplinary authority. An appeal filed by the respondent was dismissed by the President of India, vide order dated August 21, 1986. The respondent challenged his dismissal in the Central Administrative Tribunal. The Tribunal by an order dated August 8, 1991 set aside the order of dismissal on the ground that the respondent was not supplied the copy of the Enquiry Officer's report. The Tribunal placed reliance on a decision of this Court in Union of India v. Mohd. Ramzan Khan (1991) 1 SCC 588, (1991) 16 ATC 505. The Tribunal considered the effect of the observations made in Mohd. Ramzan case (1991) 1 SCC 588, (1991) 16 ATC 505 that the said decision shall have prospective application and no punishment imposed shall be open to challenge on this ground. The Tribunal in this regard held that no inference can be drawn from the observations made by the Hon'ble Supreme Court in Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505 that all the pending matters will also abate. The Tribunal further held as under:

    “Thus all the pending matters which were open for adjudication and would be so open after the decision in Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505 would be adjudicated upon not having become final and would be thus within the ambit of plural judgments would have prospective effect used in Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505.”

    4. The Tribunal further clarified that this decision may not preclude the disciplinary authority from reviving the proceeding and continuing with it in accordance with law from the stage of supply of the inquiry report in cases where dismissal or removal was the punishment.

    5. Aggrieved against the aforesaid order, the Union of India has come in appeal before this Court.

    6. We have considered the arguments advanced by the learned counsel for the parties. In para 17 of the judgment of Mohd. Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505 it was held as under:

    “There have been several decisions in different High Courts which, following the Forty-second Amendment, have taken the view that it is no longer necessary to furnish a copy of the inquiry report to delinquent officers. Even on some occasions this Court has taken that view. Since we have reached a different conclusion the judgments in the different High Courts taking the contrary view must be taken to be no longer laying down good law. We have not been shown any decision of a coordinate or a larger bench of this Court taking this view. Therefore, the conclusion to the contrary reached by any two-Judge Bench in this Court will also no longer be taken to be laying down good law, but this shall have prospective application and no punishment imposed shall be open to challenge on this ground.”

    7. After the decision in Mohd. Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505 the matter came up for consideration again before a three-Judge Bench of this Court in Managing Director, Electronic Corporation of India v. B. Karunakar (1992) 1 SCC 709, (1992) 19 ATC 652, JT (1992) 3 SC 605. In this case, notice was taken of an earlier decision of this Court in Kailash Chander Asthana v. State of U.P (1988) 3 SCC 600, JT (1988) 2 SC 291 wherein it had been observed by a bench of three Judges that the question of furnishing a copy of the report of enquiry in disciplinary proceedings held after Forty-second Amendment does not arise. This Court therefore, held that there was a seeming conflict as to the entitlement of a copy of the enquiry report to the delinquent officer in between the cases of Kailash Chander Asthana (1988) 3 SCC 600, JT (1988) 2 SC 291 and Mohd. Ramzan Khan (1991) 1 SCC 588, (1991) 16 ATC 505 and as such it was considered necessary to refer this matter to a larger bench. This Court, therefore, in B. Karunakar case (1992) 1 SCC 709, (1992) 19 ATC 652, JT (1992) 3 SC 605 granted special leave on this question and directed the papers to be placed before the Chief Justice for constitution of a larger bench. This Court in B. Karunakar case (1992) 1 SCC 709, (1992) 19 ATC 652, JT (1992) 3 SC 605 also gave the following directions:

    “Since the matter is likely to take a long time for disposal of the matter, any stay order would prejudicially affect the interest of the respondent in whose favour there is an order of reinstatement with liberty reserved for continuing the inquiry. We, therefore, direct that respondent be reinstated in service within a month from today with the payment of one half of the back wages.”

    8. It has come to our notice that in several cases the view has been taken that the ratio of Mohd. Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505 shall apply prospectively and shall not apply in the cases where the order of dismissal was passed prior to the said decision in Mohd. Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505. One of such cases is Union of India v. A.K Chatterjee (1993) 2 SCC 191 by a bench of two Judges, of which P.B Sawant, J. was a member and was also one of the Judges in Mohd. Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505. In the aforesaid case the respondent A.K Chatterjee was dismissed from service by order dated January 6, 1978. On appeal filed by A.K Chatterjee, the order was modified to the extent that the order of dismissal was reduced to removal, vide appellate order dated February 22, 1980. On a further revision, the General Manager reduced the penalty of removal of service to that of compulsory retirement, vide order dated August 1, 1988. The Tribunal, vide its judgment dated February 18, 1992 set aside the order of compulsory retirement placing reliance on Mohd. Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505. On appeal by the Union of India this Court held that the Tribunal had not noticed the operative part of the judgment in Mohd. Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505 where it was made clear that the law laid down there will apply prospectively. It was held that admittedly in the case, the order of dismissal was passed prior to the said decision and as such the decision of the Tribunal was set aside and the matter was remanded to the Tribunal for decision on merits of other points.

    9. It was thus contended before us by the learned counsel for the Union of India that in Mohd. Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505 it was clearly laid down that the said decision will apply prospectively and will not affect such orders of dismissal which had been passed prior to the date of the said decision. On the other hand, it was contended on behalf of the respondent that the aforesaid observations cannot apply to a case in which the delinquent officer had already challenged the order of dismissal before the Administrative Tribunal and the observations made in Mohd. Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505 should only apply in such cases where the order of dismissal had become final and not in such cases where the proceedings were pending.

    10. We, therefore, direct that this appeal may also be heard along with the Civil Appeal No. 3056 of 1991 arising out of Special Leave Petition No. 12103 of 1991 entitled Managing Director, Electronic Corporation of India v. B. Karunakar (1992) 1 SCC 709, (1992) 19 ATC 652, JT (1992) 3 SC 605 in which a reference has already been made to the Constitution Bench. Now, so far as the question of granting the stay order is concerned, in our view it should depend on the facts and circumstances of each case. In the case in hand before us, the charge levelled against the respondent was of having accepted Rs 2000 as illegal gratification from a ‘Khalasi’ employed in the workshop for getting him allotted a railway quarter out of turn. The respondent has been found guilty of the said charge in disciplinary proceedings and the order of dismissal has been set aside by the Tribunal only on the ground of non-supply of enquiry report and following the decision in Mohd. Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505.

    11. Thus, taking note of the aforesaid decisions as well as the gravity of the charge levelled against the respondent and the same having not been set aside on merits, we do not consider it proper in the interest of justice to give any direction of reinstatement of the respondent in service or award of any back wages as done in B. Karunakar case (1992) 1 SCC 709, (1992) 19 ATC 652, JT (1992) 3 SC 605. The respondent would be governed by an appropriate direction to be given at the time of the final decision of the case. In view of the circumstances mentioned above, we direct that the operation of the impugned judgment of the Central Administrative Tribunal, Bombay Bench dated August 8, 1991 shall remain stayed so far as the respondent — C.L Verma is concerned. This appeal may now be heard by the Constitution Bench along with the appeal arising out of Special Leave Petition No. 12103 of 1991 entitled Managing Director, Electronic Corporation of India v. B. Karunakar (1992) 1 SCC 709, (1992) 19 ATC 652, JT (1992) 3 SC 605.

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    Comments

    Union Of India And Others v. C.L Verma .
    (Feb 12, 1993)