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  • Central Civil Services (Temporary Service) Rules.
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  • Central Civil Services (Temporary Service) Rules.
Smart Summary

Factual and Procedural Background

The petitioner joined the State Bank of Travancore (1st Respondent) as a Cashier by misrepresenting that he had not been previously employed anywhere and by making a false declaration to that effect. In reality, he was previously employed in the Posts and Telegraphs Department, during which time he was suspended in connection with Savings Bank fraud and temporary misappropriation of Office Cash. His service in that Department was terminated under the Central Civil Services (Temporary Service) Rules. Upon discovering the petitioner’s prior employment and false declaration, the Bank inquired about the non-disclosure and failure to produce a discharge certificate. The petitioner admitted the previous employment but offered no explanation or excuse for the false declaration. Consequently, the Bank terminated his employment under Paragraph 522(1) of the Sastri Award (Bank Award). The petitioner challenged this termination through a writ petition.

Legal Issues Presented

  1. Whether the termination of the petitioner’s service under Paragraph 522(1) of the Bank Award was lawful given the false declaration and non-disclosure of previous employment.
  2. Whether the termination, though in form a termination simpliciter, was effectively a dismissal for misconduct requiring different procedural safeguards.
  3. Whether the petitioner’s termination amounted to victimisation on account of trade union activities.
  4. Whether natural justice was violated in the termination process.
  5. Whether the petitioner’s appointment was valid or void ab initio due to non-disclosure of antecedents.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Chartered Bank v. Chartered Bank Employee's Union, AIR 1960 SC 919 Scope of employer’s power to terminate service under notice or payment in lieu, requirement of bona fides, and tribunal’s jurisdiction to examine true nature of termination. The court relied on this precedent to affirm that termination simpliciter must be bona fide and not a guise for dismissal for misconduct, allowing tribunal scrutiny of substance over form.
S.R. Tewari v. District Board Agra, AIR 1964 SC 1680 Requirement that termination as punishment must be pleaded and established as a question of fact. Used to emphasize that the petitioner did not plead or argue that termination was disguised punishment, thereby falling outside that category.
P. Kunhikrishnan v. State of Kerala, 1964 KLT 1066 An appointment made to an ineligible person is void; termination order declaring ineligibility is effectively no appointment. Applied to hold the petitioner’s appointment was void due to non-disclosure of antecedents, hence the termination was a declaration of no appointment.
Faramus v. Film Artistes' Association, 1963 ALL ER 636; 1964 App. Cas. 925 Appointment of an ineligible person is invalid and can be declared void without natural justice requirements in some circumstances. Supported the principle that no natural justice violation occurred in declaring the petitioner’s appointment void due to ineligibility.
Jayadev v. Kerala Public Service Commission, 1973 KLJ 915; Public Service Commission v. Jayadev, 1977 KLT 85 Consideration of mistakes in appointment and scope of Rule 3(c) for cancellation of appointment. Distinguished as irrelevant because the petitioner’s case involved false declaration, not merely a mistake by the commission.
Prem Regan v. General Manager KSRT, 1976 KLT 399 Probationer entitled to opportunity to explain false information before termination. Distinguished on facts since the petitioner here was given an opportunity to explain but failed to do so.
Vasudev Gopalakrishna Tamwekar v. Happy Home Co-operative Housing Society, AIR 1964 SC 521 Principle that inherent right to correct a mistake may not require notice or explanation opportunity. Supported the court’s view that correction of mistaken appointment need not always involve notice or hearing.
Indian Chamber of Commerce v. C.I.T, (1976) 1 SCC 324 Similar principle regarding correction of mistakes without mandatory hearing. Reinforced the principle applied in this case.
Ranjit Singh v. President of India, 1971 (2) SLR 561 Support for correction of mistakes and procedural nuances. Used to buttress the court’s reasoning on procedural fairness in correcting mistaken appointments.
Sirsi Municipality v. C.K.F Tellia, (1973) 1 SCC 409 Application of Article 12 of the Constitution to statutory bodies and public authorities regarding natural justice. The court assumed without deciding that the respondents were public authorities subject to natural justice requirements.

Court's Reasoning and Analysis

The court analyzed the nature of the petitioner’s appointment and termination in light of the Bank Award’s Paragraph 522(1) and relevant precedents. It noted that termination simpliciter under such provisions requires bona fide exercise of power and is subject to tribunal scrutiny for victimisation or unfair labour practice. However, the petitioner did not plead or prove that the termination was a disguised punishment for misconduct or victimisation due to trade union activities.

The court applied the principle that an appointment made to an ineligible person—here due to non-disclosure and false declaration—is void ab initio. The termination order was thus a declaration that no valid appointment existed. The petitioner was afforded an opportunity to explain his non-disclosure but failed to do so.

The court distinguished other cases where procedural fairness required opportunity to explain, noting that the petitioner’s case involved deliberate falsehood and concealment rather than mere mistakes by the appointing authority. It further noted no violation of natural justice occurred, as the petitioner had the chance to respond and did not offer any explanation.

Lastly, the court refrained from deciding whether the respondents are “other authorities” under Article 12 of the Constitution, proceeding on the assumption that they are public authorities subject to judicial review.

Holding and Implications

The writ petition is dismissed.

The court held that the petitioner’s appointment was void due to deliberate false declaration and non-disclosure of previous employment. The termination under the Bank Award was lawful and did not violate natural justice. The petitioner was not entitled to relief on grounds of victimisation or procedural unfairness. No new precedent was established, and the decision’s direct effect is the upholding of the Bank’s termination of the petitioner’s service without costs.

    Gopalan v. Managing Director

    George Vadakkel, J.:— Misrepresenting that he was not previously employed anywhere and making a false declaration to that effect, the petitioner joined the service of the State Bank of Travancore (1st Respondent) as Cashier. Actually he was previously employed in the Posts and Telegraphs Department and while so employed he was under suspension during 30-7-1968 to 16-3-1969 in connection with Savings Bank fraud and temporary misapporpriation of Office Cash. His service in that Department was terminated on 18-3-1969 under the Central Civil Services (Temporary Service) Rules. Coming to know of his previous employment the 1st Respondent Bank asked the petitioner about it; and about his failure to produce a discharge Certificate from the previous employer as required by the conditions of appointment. He admitted his previous employment but did not offer any explanation regading the non-disclosure of it nor any excuse for the false declaration that he was not previously employed anywhere. The Bank terminated his employment under Paragraph 522(1) of the Sastri Award, also known as the Bank Award. This termination is challenged in this writ petition.

    2. Paragraph 522(1) of the Bank Award marked here as Ext. P7 so far as it is material for this case reads:—

    “In cases not involving disciplinary action for misconduct and subject to clause (6) below, the employment of a permanent employee may be terminated by three months' notice or on payment of three months' pay andallowances in lieu of notice.”

    3. The Supreme Court considered this provision in Chartered Bank v. Chartered Bank Employee's Union (AIR. 1960 SC. 919 (922) and said as follows:—

    “There is no doubt that an employer cannot dispense with the services of a permanent employee by mere notice and claim that the industrial tribunal has no jurisdiction to inquire into the circumstances in which such termination of service simpliciter took place. Many standing orders have provisions similar to paragraph 522(1) of the Bank Award, and the scope of the power of the employer to act under such provisions has come up for consideration before labour tribunals many a time. In Buckingham and Carnatic Co. Ltd. v. Workers of Company, 1952 Lah AC 490, the Labour Appellate Tribunal had occasion to consider this matter relating to discharge by notice or in lieu thereof by payment of wages for a certain period without assigning any reason. It was of opinion that even in a case of this kind the requirement of bona fides is essential and if the termination of service is a colourable exercise of the power or as a result of victimisation or unfair labour practice the industrial tribunal would have the jurisdiction to intervene and set aside such termination. Further it held that where the termination of service is capricious, arbitrary or unnecessarily harsh on the part of the employer judged by normal standards of a reasonable man that may be cogent evidence of victimisation or unfair labour practice. We are of opinion that this correctly lays down the scope of the power of the tribunal to interfere where service is terminated simpliciter under the provisions of a contract or of standing orders or of some award like the Bank Award. In order to judge this, the tribunal will have to go into all the circumstances which led to the termination simpliciter and employer cannot say that it is not bound to disclose the circumstances before the tribunal. The form of the order of termination is not conclusive of the true nature of the order, for it is possible that the form may be merely a camouflage for an order of dismissal for misconduct. It is therefore always open to the tribunal to go behind the form and look at the substance and if it comes to the conclusion, for example, that though in form the order amounts to termination simplicter it in reality cloaks a dismissal for misconduct it will be open to it to set it aside as a colourable exercise of the power.”

    4. In his pleadings the petitioner has no case that though in form a termination simplicter, it is really a punishment for misconduct. Whether an apparently simple termination of service is really by way of punishment, is a question of fact to be pleaded and established. (See S.R Tewari v. District Board Agra (AIR 1964 SC. 1680 : 1964 (3) SCR. 55 at 70-71). There was also no argument on that basis. The petitioner has pleaded that his service was terminated on account of his trade union activities and the termination amounts to victimisation but except for the assertion as aforesaid in the writ petition there is no material to support the same; nor was the case argued on that basis. The case on hand is one falling within the rule stated by Mathew, J. of this Court (as he then was) in P. Kunhikrishnan v. State of Kerala (1964 KLT. 1066 : AIR. 1965 Kerala 149). The learned Judge said:—

    “So, as the appointing authority was not satisfied about the character and antecedents of the petitioner, he was ineligible for being appointed to the service, which means that he had no qualification for being appointed to the service. Therefore Ext. P4 order can only mean that the Government have finally decided that the petitioner was ineligible for appointment. It cannot therefore be said that the petitioner's service as Panchayat Executive Officer was terminated by Ext. P4 as the appointment itself was void.”

    5. The learned Judge reiterated the same principle in O.P No. 973 of 1968 as follows:—

    “When a person who is ineligible for appointment to a post is appointed in ignorance of the fact that he is ineligible, the appointment is invalid. It was so held in Kunhikrishnan Nair v. State of Kerala 1964 KLT. 1066. There this Court followed the decision of the Court of Appeal in Faramus v. Film Artistes' Association 1963 ALL. ER. 636 which was subsequently upheld by the House of Lords in Faramus v. Film Artistes Association. 1964 App. Cas. 925. Applying the reasoning in that case I think that since the petitioner did not possess one of the necessary qualifications for the post, he was not validly appointed to it. The order of the Chairman in effect only declared that the petitioner was not validly appointed to the post and that he should be reverted. It was not an order cancelling a valid or even a voidable order; it was merely a declaration that there has been no appointment of the petitioner to the post. In the circumstances, I do not think that natural justice required that the petitioner should have been given an opportunity of being heard by the 1st or the 2nd respondent. I also do not think that in the circumstances there was any manifest injustice, so that interference under article 226 is required.”

    6. We are in respectful agreement with these principles stated above.

    7. Apply the above Rules to this case. Petitioner's appointment was a mistaken appointment in ignorance of his character and antecedents which he succesfully kept away from the 1st respondent not only by non-disclosure (despite requirement to disclose) but also by making a false declaration that he was not previously employed anywhere-a case of not mere Suppressio veri but one of Suggestio falsi Ext. P6 communication informing the petitioner that he has been discharged from service of the Bank as at close of business on 23-2-1978 ‘is merely a declaration that there has been no appointment of the petitioner’ to the service of the Bank.

    8. On coming to know of his previous employment in the Posts and Telegraphs Department the petitioner was asked about it and as to why he did not produce a discharge certificate. He admitted his previous employment and had no explanation or excuse for the non-disclosure of details concerning previous employment and for making the false declaration. In the circumstances of the case, we do not think that there has been any violation of the rules of natural justice. This in our view is a case where things speak for themselves, and the petitioner has no explanation to offer for the same.

    9. The learned single Judge in Jayadev v. Kerala Public Service Commission (1973 KLJ. 915) took the view that all mistakes would not warrant cancellation of an advice for appointment issued by the Public Service Commission, and R. 3(c) in Part II of the Kerala State and Subordinate Service Rules, 1958 cannot be invoked to a case where the candidate has altered his position in such a way that it may not be possible for restoring him to the original position and to a case where the mistake is solely that of the Public Service Commission and has not been occasioned by the candidate. On appeal the Division Bench in Public Service Commission v. Jayadev (1977 KLT. 85) pointed out that the Rule does not contain any such limitation. These cases have no relevance so far as the case on hand is concerned. The decision in Prem Regan v. General Manager KSRT. (1976 KLT. 399) concerned a probationer whose service was terminated on the ground that he furnished false information in the attestation form regarding his previous employment in a private firm. This court said that the probationer was entitled to an opportunity to explain before his service was terminated, and this having not been afforded termination is bad. In that case the probationer appears to have been not asked anything about the alleged false information. Not so here, where the petitioner was afforded an opportunity to establish that he truly said that he was not previously employed anywhere. In Case No. 215 (W.A 30 and 46 of 1978) reported in K.L.N 276, the petitioner therein was demoted on the basis of an attack made on his promotion by the 3rd respondent therein; this Court held that in such circumstances the order of demotion cannot be characterised as one which ‘corrected or rectified an error’, and that therefore ‘it was not only fair and proper but very necessary, that the writ-petitioner should have been given notice of the grievance-petition (of the 3rd respondent) and afforded an opportunity for explanation in regard to the matters contained in the said petition’. The said decision also recognised the Rule that as regards exercise of the inherent right of correcting a mistake, there can be no question of notice or affording opportunity for explanation, and pointed out the decisions in Vasudev Gopalakrishna Tamwekar v. Happy Home Co-operative Housing Society (AIR. 1964 SC. 521 : 1964 (3) SCR. 964), Indian Chamber of Commerce v. C.I.T, W.B ((1976) 1 SCC 324 : AIR. 1976 SC. 353) and Ranjit Singh v. President of India (1971 (2) SLR. 561) in support of that proposition. We do not think that the decisions discussed above on which reliance was placed by the learned Counsel for the petitioner lay down any principle incompatible with what is ssated in Kunhikrishnan Nair's Case or in O.P 973 of 1978 with which we have already expressed our full agreement.

    10. Before parting with this case it is necessary to caution that we have not in this case decided that the State Bank of India and the State Bank of Travancore, the two respondents herein, are ‘other authorities’ mentioned in Article 12 of the Constitution, as argued on behalf of the petitioner, and have proceeded only on the assumption (without deciding) that it is so, and that they are statutory bodies and public authorities who by this court can, in exercise of its Writ jurisdiction, be kept within the limits of their statutory powers and compelled to follow the Rules of natural justice, as stated in Sirsi Municipality v. C.K.F Tellia ((1973) 1 SCC 409 : AIR. 1973 SC. 855 (857)). On this question which was raised at the bar by the learned counsel for the respondents in the form of a preliminary objection as regards the entertainability of this writ petition, elaborate arguments were advanced on both sides, but in view of what is stated earlier on the main question raised herein, we do not think that we are called upon to decide the same. That question is left open. Dismissed. No orders as to costs.

    11. Dismissed.

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    Gopalan v. Managing Director
    (Aug 30, 1979)