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2004 INSC 260
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
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Acts
  • Part XIV of the Constitution
  • Article 1976 SC 37
  • Section 4 of the Post Graduate Institute of Medical Education and Research, Chandigarh Act, 1966
  • Article (no specific section/subsection/year mentioned)
  • Article 37, AIR 1976 SC (year not specified)
  • Article 311 of the Constitution
  • Article 311, Article 1971 SC 1409, Section 2 of the 1983 Income Tax Act is not present in the text so it's empty.
  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Neutral Citations
2004 INSC 260
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Part XIV of the Constitution
  • Article 1976 SC 37
  • Section 4 of the Post Graduate Institute of Medical Education and Research, Chandigarh Act, 1966
  • Article (no specific section/subsection/year mentioned)
  • Article 37, AIR 1976 SC (year not specified)
  • Article 311 of the Constitution
  • Article 311, Article 1971 SC 1409, Section 2 of the 1983 Income Tax Act is not present in the text so it's empty.
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

Mrs. Sumitra Dash (Respondent 1) was employed as a Consultant Haematologist at the Post-Graduate Institute of Medical Education and Research, Chandigarh (PGIMER—Respondent 2). At her request PGIMER sanctioned two years’ “ex-India” leave beginning 16-12-1991, expressly stipulating that she would neither seek further extension nor resign/retire while on leave and that failure to resume duty would result in her being deemed to have permanently left the Institute.

During the leave period she accepted employment in Bahrain and, in 1992, filed CWP No. 16212/1992 in the Punjab & Haryana High Court challenging another appointment in PGIMER. She sought but was refused further leave; PGIMER directed her to re-join by 14-2-1994 and later declared that she was “deemed to have permanently left” the Institute w.e.f. 16-12-1991. A stay against disciplinary action was procured from the High Court on 6-9-1994.

After PGIMER withdrew a subsequent charge-sheet, the Institute’s request to vacate the stay (CM No. 5813/1999) remained pending. On 10-1-2000 PGIMER rejected Dash’s “joining report” and Presidential request under Regulations 35/36 to treat the period as leave in exceptional circumstances. Dash then filed CWP No. 8504/2000 seeking a mandamus to permit her re-joining. The High Court allowed her petition, holding that refusal to accept the joining report without hearing her violated natural justice under Article 311 and permitted her to rejoin on 5-4-2001.

PGIMER challenged that decision before the Supreme Court by Special Leave Petition (SLP), resulting in the present judgment.

Legal Issues Presented

  1. Whether employees of PGIMER hold a “civil post” under the Union or a State so as to attract the protective safeguards of Article 311 of the Constitution.
  2. Whether the High Court erred in treating PGIMER’s refusal to allow re-joining as violative of natural justice under Article 311.
  3. Whether PGIMER was justified in deeming Respondent 1 to have vacated her post for failure to return on expiry of sanctioned leave.
  4. Whether the interim stay of disciplinary proceedings granted by the High Court in CWP No. 16212/1992 should be vacated.

Arguments of the Parties

Respondent 1 (Mrs. Sumitra Dash)

  • Automatic termination without charge-sheet, enquiry or opportunity to explain violated principles of natural justice and Article 311.
  • Regulations 35/36 permitted PGIMER to treat her continued absence as leave under “exceptional circumstances”, which should have been considered after hearing her.

Appellant (PGIMER / Professor–Petitioner)

  • PGIMER is a statutory body corporate; its employees do not hold “civil posts” and cannot invoke Article 311.
  • Ex-India leave was granted on explicit conditions; failure to resume duty triggered deeming provision, validly ending her service.
  • The High Court’s stay of disciplinary action was unrelated to the subject-matter of the original writ and should be vacated.

Table of Precedents Cited

PrecedentRule or Principle Cited ForApplication by the Court
Jai Shanker v. State of Rajasthan, AIR 1966 SC 492 Termination for unauthorised leave without hearing infringes Art. 311 Distinguished; applies only where employee holds a civil post
State of Assam v. Akshaya Kumar Deb, (1975) 4 SCC 339; AIR 1976 SC 37 Opportunity to show cause mandatory under Art. 311 Held inapplicable; PGIMER staff not covered by Art. 311
Deokinandan Prasad v. State of Bihar, (1971) 2 SCC 330 Removal without hearing violates Art. 311 Distinguished on same ground
Uptron India Ltd. v. Shammi Bhan, (1998) 6 SCC 538 Nature of dismissal and natural justice under service law Distinguished; facts and constitutional context different
State of Assam v. Kanak Chandra Dutta, AIR 1967 SC 884 Meaning of “civil post”; tests of master–servant relationship Relied upon to conclude PGIMER employees do not hold civil posts
S.L. Agarwal v. GM, Hindustan Steel Ltd., (1970) 1 SCC 177 Employment in public corporation not necessarily a civil post; corporation not “State” for Art. 311 Used to reinforce PGIMER’s independent corporate identity
Syndicate Bank v. General Secy., Syndicate Bank Staff Assn., (2000) 5 SCC 65 Misplaced reliance on natural justice can cause miscarriage of justice Invoked to justify PGIMER’s action and critique High Court reasoning
Aligarh Muslim University v. Mansoor Ali Khan, (2000) 7 SCC 529 Where only one outcome possible, absence of notice causes no prejudice Cited as analogous justification for deeming vacancy after overstay
S.L. Kapoor v. Jagmohan, (1980) 4 SCC 379 Notice principles; “useless formality” theory Referred to in Mansoor Ali Khan; indirectly relied upon
Anil Bajaj v. PGIMER, (2002) 2 SCC 240 Employee estopped from challenging condition after benefiting from foreign leave Applied directly: estoppel bars Dash from questioning deeming clause

Court's Reasoning and Analysis

1. The Court first examined whether PGIMER employees are entitled to Article 311 safeguards. Citing Kanak Chandra Dutta and S.L. Agarwal, it held that a “civil post” requires a master–servant relationship with the State, which is absent because PGIMER is a distinct statutory corporation. Therefore Article 311 protection is unavailable to Respondent 1.

2. Consequently, the High Court’s reliance on precedents arising exclusively under Article 311 (Jai Shanker, Akshaya Kumar Deb, Deokinandan Prasad, Uptron India) was misplaced. Those decisions were deemed distinguishable and inapplicable.

3. The Court considered the contractual and regulatory framework governing ex-India leave. Respondent 1 accepted leave on a clear condition that failure to return would result in deemed vacation of her post. Analogous rulings in Mansoor Ali Khan and Anil Bajaj affirmed the validity of such stipulations and the “useless formality” doctrine where only one conclusion is possible.

4. The interim stay of disciplinary proceedings obtained in the earlier writ (CWP No. 16212/1992) was found to be unsustainable because that writ concerned a separate selection dispute and had no nexus with leave obligations. Exercising extraordinary powers, the Supreme Court vacated the stay and authorised PGIMER to resume disciplinary action.

5. Recognising that Respondent 1 had already re-joined under the High Court’s order, the Court allowed her continuance ad interim but left PGIMER free to suspend her or take other steps pending inquiry.

Holding and Implications

Appeal Allowed; High Court judgment set aside.

Immediate Effect: The stay on disciplinary proceedings is vacated; PGIMER may proceed with inquiry into Respondent 1’s unauthorised absence, consider suspension, and, if warranted, fill the post temporarily. Respondent 1’s continued service is made subject to the outcome of that inquiry.

Broader Implications: The decision clarifies that employees of statutory corporations like PGIMER do not enjoy Article 311 protections and that adherence to contractual leave conditions may validly result in deemed termination without separate departmental proceedings, provided no prejudice is demonstrable. No new constitutional doctrine was created; the ruling applies established principles to the statutory corporation context.

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    Dr. Gurjeewan Garewal (Mrs) v. Dr. Sumitra Dash (Mrs) And Others

    S. Rajendra Babu, J.— Leave granted.

    2. The 1st respondent, Mrs Sumitra Dash, was working with the 2nd respondent Post Graduate Institute of Medical Education and Research, Chandigarh (PGIMER). At her request, ex-India (extraordinary) leave was granted to her by PGIMER with effect from 16-12-1991 for a period of two years by the ordermade on 6-4-1992. This leave was sanctioned, inter alia, on the express condition that: “she will neither resign/seek voluntary retirement while on leave nor will request for further extension of ex-India leave”. By this time she had already started working as a consultant Haematologist at the Salmaniya Medical Centre, Bahrain.

    3. Sometime in 1992, the 1st respondent filed a writ petition bearing CWP No. 16212 of 1992 before the Punjab and Haryana High Court challenging the selection and appointment of the petitioner herein as Professor of Haematology in PGIMER. It is submitted, before us that this matter is still pending before the High Court. On 11-12-1993, the 1st respondent requested PGIMER for an extension of her ex-India leave up to 15-12-1994. This request was rejected. PGIMER asked her to resume duty by 14-2-1994. She did not respond to this request. On 26-9-1994 the 1st respondent was informed by PGIMER that she was deemed to have permanently left the Institute with effect from 16-12-1991. That on 6-9-1994, an application bearing No. 8535 of 1994 in CWP No. 16212 of 1992 was moved by the 1st respondent before the High Court to stay the initiation of disciplinary action against her for not joining duty on expiry of the leave. The High Court granted an interim stay on 6-9-1994, made the same absolute on 21-9-1994.

    4. On 14-1-1995 PGIMER issued a memorandum to the 1st respondent. The memorandum proposed to hold an inquiry against the 1st respondent under Rule 14 of the Central Civil Services (Classification, Control and Appeal) Rules, 1965 concerning her misconduct. The same was also annexed with articles of charge, statement of imputations and the relevant documents. The 1st respondent filed a contempt petition against PGIMER alleging that the memorandum amounts to contempt of the orders of the High Court dated 6-9-1994. Subsequently, PGIMER withdrew the charges against the 1st respondent and tendered unqualified apology before the High Court.

    5. Later, on 8-2-1999, Application CM No. 5813 of 1999 in CWP No. 16212 of 1992 was moved before the High Court to vacate the stay orderdated 6-9-1994 so as to enable PGIMER to initiate appropriate disciplinary proceedings against the 1st respondent. It is submitted before us that this matter is also pending before the High Court. By the time, on 27-12-1999 the 1st respondent requested PGIMER to allow her to join the duty by treating her extended ex-India leave as leave under exceptional circumstances in the light of Regulations 35 and 36 of the PGIMER Regulations, 1967. Thereafter she is said to have forwarded a joining report. Vide memo dated 10-1-2000 PGIMER rejected the said joining report. It is also clarified in the same memo that the President rejected her application on the ground that no exceptional circumstances existed to prevent her from joining the duty. Subsequently, the authority concerned ratified this decision of rejection.

    6. On 11-5-2000 the 1st respondent moved Application CM No. 4912 of 2000 in CWP No. 16212 of 1992 before the High Court seeking directions to PGIMER to permit her to rejoin her duty. This application was rejected with liberty to her to move a separate petition to the same effect. On 11-7-2000 CWP No. 8504 of 2000 was filed by the 1st respondent before the Punjab and Haryana High Court. It challenges the orders passed by PGIMER on 10-1-2000 whereby the joining report was rejected. The main prayer of the 1st respondent before the High Court in CWP No. 8504 of 2000 is to issue a writ of mandamus “… directing the respondents to permit the petitioner to rejoin her duties immediately …”. She contended in that petition that there couldn't be an automatic termination of service without any charge-sheet, departmental proceedings or enquiry against her. Therefore, she submitted that she was not given an opportunity to explain or defend herself and consequently there is violation of the principles of natural justice.

    7. While deciding the matter the High Court has adverted to the decision in Jai Shanker v. State of Rajasthan AIR 1966 SC 492 wherein a State Government employee was discharged from service due to his unauthorised leave. Here the orderof termination was passed without hearing him. In this context, quashing the orderof discharge, this Court held that: (AIR p. 495, para 6)

    “A removal is removal and if it is punishment for overstaying one's leave an opportunity must be given to the person against whom such an orderis proposed, no matter how the regulation describes it. To give no opportunity is to go against Article 311….”

    8. In State of Assam v. Akshaya Kumar Deb (1975) 4 SCC 339, AIR 1976 SC 37 while upholding the High Court orderof quashing the unilateral removal of a government servant, this Court opined that:

    “[T]he impugned orderdated 13-2-1963 was violative of Article 311(2) of the Constitution and, as such, illegal. It was imperatively necessary to give the servant an opportunity to show cause against the proposed action….”

    The High Court then referred to another decision by a Constitution Bench of this Court in Deokinandan Prasad v. State of Bihar (1971) 2 SCC 330, AIR 1971 SC 1409. This is a case in which a civil servant was removed from service and this Court ruled that since an opportunity of hearing was not given before passing the order, the same was held to be violative of Article 311. Another case referred to by the High Court is Uptron India Ltd. v. Shammi Bhan (1998) 6 SCC 538. Here also the issue was related to the violation of Article 311.

    9. Relying on the ratio in the aforementioned decisions, the High Court allowed the petition filed by the 1st respondent herein by observing that the request of the petitioner for joining duty ought not to have been declined without giving her an opportunity of hearing to put forward her case and without an opportunity to the petitioner for showing cause as to why the provisions of Regulation 36 ought not to have been applied to her case. Therefore this writ petition has to succeed.

    10. Thus the High Court permitted the 1st respondent to rejoin the duty in PGIMER during the pendency of CWP No. 16212 of 1992. This decision is impugned before us. Pursuant to this decision, PGIMER permitted the 1st respondent to rejoin duty w.e.f 5-4-2001. The impugned decision and the subsequent action of PGIMER aggrieved the petitioner. Hence this SLP.

    11. The first question for consideration is the correctness of the decision by the High Court. Relying upon the decisions of this Court in Jai Shanker AIR 1966 SC 492, State of Assam v. Akshaya Kumar Deb (1975) 4 SCC 339, AIR 1976 SC 37, Deokinandan Prasad (1971) 2 SCC 330, AIR 1971 SC 1409 and Uptron India Ltd. (1998) 6 SCC 538 the High Court went on to find that Respondent 1 was not given an opportunity of hearing. Is the High Court correct in its approach? To judge this issue, primarily, the general nature of cases upon which the High Court placed its reliance needs to be looked into. It is pertinent to note that all these cases emanate due to the violation of Article 311 of the Constitution.

    12. At the outset it is to be mentioned that Article 311 cannot be automatically invoked in all the instances where a person is not given an opportunity of hearing. Article 311 confers certain safeguards upon persons employed in civil capacities under the Union of India or a State. Only persons who are holding “civil posts” can claim the protection provided under Article 311. The 1st respondent could claim the protection of Article 311 only if she holds a “civil post”. A Constitution Bench of this Court in State of Assam v. Kanak Chandra Dutta AIR 1967 SC 884 has explained the meaning of “civil post”. Here it was held that:

    “There is no formal definition of ‘post’ and ‘civil post’. The sense in which they are used in the services chapter of Part XIV of the Constitution is indicated by their context and setting. … a civil post means a post not connected with defence outside the regular services. A post is a service or employment. A person holding a post under a State is a person serving or employed under the State. … There is a relationship of master and servant between the State and a person holding a post under it. The existence of this relationship is indicated by the State's right to select and appoint the holder of the post, its right to suspend and dismiss him, its right to control the manner and method of his doing the work and the payment by it of his wages or remuneration. A relationship of master and servant may be established by the presence of all or some of these indicia, in conjunction with other circumstances and it is a question of fact in each case whether there is a relation between the State and the alleged holder of a post.” (AIR p. 886, para 9)
    (emphasis supplied)

    13. In State of Assam v. Kanak Chandra Dutta AIR 1967 SC 884 it was also held that “a post is an employment but every employment is not a post”. While dealing with the termination of an employee, another Constitution Bench of this Court looked into the applicability of Article 311 in S.L Agarwal (Dr) v. G.M, Hindustan Steel Ltd. (1970) 1 SCC 177 Here this Court held that job in Hindustan Steel is not a “civil post” so as to claim the protection of Article 311. Another issue noted by the Court in Hindustan Steel (1970) 1 SCC 177 is the nature of independent existence of Hindustan Steel Company. Considering this and other aspects it is ruled that Hindustan Steel Company is not a State for the purpose of Article 311.

    14. Reverting back to the case in hand, Section 4 of the Post Graduate Institute of Medical Education and Research, Chandigarh Act, 1966 (PGIMER Act) says that PGIMER is a “body corporate which is having a perpetual succession and a common seal with power”. This clearly provides that PGIMER is a separate entity in itself. Admittedly, the employees of any authority which is a legal entity separate from the State, cannot claim to be holders of civil posts under the State in orderto attract the protection of Article 311. There is also no master and servant relationship between the State and an employee of PGIMER, which is a separate legal entity in itself. It is a settled position that a person cannot be said to have the status of holding a “civil post” under the State merely because his salary is paid from the State fund or that the State exercises a certain amount of control over the post. The PGIMER Act might have provided for some control over the institution but this doesn't mean that the same is a State for the purpose of Article 311. Therefore the employees of PGIMER cannot avail the protection of Article 311 since the same can be claimed only by the members of a civil service of the Union or of all-India service or of a civil service of a State or by persons who hold a civil post under the Union or a State. PGIMER cannot be treated as a “State” for the purpose of Article 311 and the employees therein are not holding any “civil post”. In result, the 1st respondent is not holding a “civil post” and she cannot claim the guard of Article 311.

    15. In this background the view subscribed by the High Court, that the 1st respondent was not given an opportunity of hearing and therefore her removal is bad under Article 311, is not correct. The premise in which the High Court has proceeded is faulty. The High Court has not examined the applicability of Article 311 in the present case. This results in its wrong conclusion. Therefore, the cases relied upon by the High Court Jai Shanker AIR 1966 SC 492, State of Assam v. Akshaya Kumar Deb (1975) 4 SCC 339, AIR 1976 SC 37, Deokinandan Prasad (1971) 2 SCC 330, AIR 1971 SC 1409 and Uptron India Ltd. (1998) 6 SCC 538 are not applicable in the present context. All of them are distinguishable.

    16. The last case relied upon by the High Court is Syndicate Bank v. General Secy., Syndicate Bank Staff Assn. (2000) 5 SCC 65 Here this Court allowing the appeal in favour of the appellant Bank holds that:

    “19. This undue reliance on the principles of natural justice by the Tribunal and even by the High Court has certainly led to a miscarriage of justice as far as the Bank is concerned.”

    Here the dismissal of an employee by the Bank was upheld. Hence it is not clear how the High Court placed its reliance on this case to decide the present issue in favour of the 1st respondent. On the other hand, in our view, the decision in the case of Syndicate Bank (2000) 5 SCC 65 justifies the action taken by PGIMER.

    17. Now the only question that remains for consideration is the correctness of PGIMER's stand that the 1st respondent was “deemed to have permanently left the Institute due to her non-joining after the expiry of granted leave period”.

    18. This Court dealt with similar situations in Aligarh Muslim University v. Mansoor Ali Khan (2000) 7 SCC 529. In this case an employee of Aligarh Muslim University obtained ex-India leave for two years. Then he applied for an extension of leave for another three years. But the University granted an extension of leave for only one year and clearly conveyed to him that no further extension will be allowed. Later he applied for another extension. Rejecting his request the University informed him that in case of overstay he would be deemed to have “vacated” his post and cease to be in university service. However, the University extended the joining time. Yet he failed to join. Consequently, the University deemed him to have vacated the office. His writ before the Single Bench was dismissed but the Division Bench allowed the same mainly on the ground of “non-compliance with natural justice”. The University preferred an appeal before this Court. Allowing the appeal, this Court, following S.L Kapoor (1980) 4 SCC 379 held that based

    “on the admitted and indisputable facts, only one view is possible. In that event no prejudice can be said to have been caused to Mr. Mansoor Ali Khan though notice has not been issued”.

    19. Elaborating this aspect it was observed that:

    “28. We may state that the University has not acted unreasonably in informing him in advance — while granting one year extension, in addition to the initial absence of 2 years — that no further extension will be given. We have noticed that when the extension is sought for three years, the Department has given extension only for one year as he had already availed 2 years' extraordinary leave by that time. It has to be noticed that when employees go on foreign assignments which are secured by them at their own instance, in case they do not come back within the original period stipulated or before the expiration of the extended period, the employer in the parent country would be put to serious inconvenience and will find it difficult to make temporary alternative appointments to fill up the post during the period of absence of those who have gone abroad. However, when rules permit and provide for an employee to go abroad discretion must be exercised reasonably while refusing extension. In this case, giving of further extension only for one year out of the further period of three years sought for is not unreasonable. In such a situation, if the employee has entangled himself into further commitments abroad, he has to blame himself.
    29. On the above facts, the absence of a notice to show cause does not make any difference for the employee has been told that if his further overstay is for continuing in the job in Libya, it is bound to be refused.”
    (emphasis supplied)

    20. Recently in another case of a very similar nature Anil Bajaj (Dr) v. Postgraduate Institute of Medical Education & Research (2002) 2 SCC 240, JT (2002) 1 SC 245 this Court held:

    “A person who gets an advantage, namely, of a sanction to go abroad on service on the condition that he will come back within two years and if he does not come back, his lien will automatically be regarded as being terminated, he then cannot turn around and challenge the said condition on the basis of which sanction to go abroad was granted. … but where the facts are not in dispute the inquiry would be an empty formality. In any case the principle of estoppel would clearly apply and the High Court was right in dismissing the writ petition filed by the appellant wherein he had challenged his termination.”
    (emphasis supplied)

    21. Similarly, in the case in hand the 1st respondent was originally granted an ex-India leave for two years on the express condition that she will be deemed to have vacated the post if she opts not to join after the leave period. But she preferred to remain in the greener pastures for a pretty long time in spite of the repeated reminders from PGIMER. She employed the case before the High Court as a dilatory tactic to continue with her foreign assignment and evaded herself from joining under some pretext or the other.

    22. Crucial aspect to be noted in this case is that Respondent 1, on 6-9-1994 obtained a stay of disciplinary action against her vide an application bearing No. 8535 of 1994 in CWP No. 16212 of 1992. In the face of law, such a stay ought not to have been granted by the High Court since the prayer in that CWP cannot have any bearing upon the ex-India leave obtained by R-1 or on its subsequent extensions or on the outcome of disciplinary action. The disciplinary proceedings against her and the case filed by her are separate actions. They could proceed separately. Thus that stay is liable to be vacated. But the judgment impugned in this case arises from CWP No. 8504 of 2000 wherein R-1 essentially challenges her rejection of her application to join duty under Rule 36 of the PGIMER Rules on the ground of violation of the principles of natural justice. In the facts of this case, that issue will not arise if the original disciplinary proceedings are completed. Therefore, exercising our extraordinary powers, we vacate the stay granted by the High Court in CWP No. 16212 of 1992 and direct the PGIMER authorities to proceed with the disciplinary proceedings against R-1 regarding her unauthorised absence from duty. Since R-1 is allowed to rejoin her duty under the orders of the High Court, in the meanwhile she may continue in service subject to the outcome of disciplinary enquiry. PGIMER may complete the enquiry as expeditiously as possible. If necessary PGIMER is at liberty to consider whether her continuance in the service during pendency of the inquiry is appropriate or not, and place her under suspension, if necessary, and in which event also consider whether the appellant before us should be given appointment in her place and pass appropriate orders, if necessary.

    23. This appeal is allowed accordingly.

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    Comments

    Dr. Gurjeewan Garewal (Mrs) v. Dr. Sumitra Dash (Mrs) And Others
    (Apr 12, 2004)