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1998 Supreme(SC) 224

1998(2) Supreme 118
Supreme Court of India
(From Karnataka High Court)
Sujata V. Manohar & D.P. Wadhwa, JJ.
M.H. Devendrappa -Appellant
versus
The Karnataka State Small Industries Development Corporation -Respond­ent
Civil Appeal No. 3867 of 1988
Decided on 17-2-1998
Counsel for the Parties :
For the Appellant : Mr. S.R. Bhat, Advocate.
For the Respondent : Mr. S.S. Javali, Sr. Advocate and Mr. P.R. Rama­sesh, Advocate.

Important Point
A reasonable code of conduct designed to promote discipline and effi­ciency in service can be enforced by the Government organisation and it cannot be flouted in the name of other freedoms.

Headnote:Constitution of India-Articles 19(1)(a), 19(1)(c), 19(2), 19(4)-Karnataka State Small Industries Development Corporation Serv­ice Rules-Rule 22-Right of freedom of speech and expression and right to form associations-Subject to reasonable restriction-Reason­able­ness of Service Rules which curtail certain kinds of activities amongst Government servants in the interests of efficiency and disci­pline-A proper balancing of interests of an individual as a citizen and the right of the State to frame a code of conduct for its employ­ees in the interest of proper functioning of the State is required-Order dismissing the appellant from service under Rule 22 of the Rules of the Karnataka State Small Industries Development Corpora­tion - Charges against appellant that he being an employee of the Corporation had written a letter to the Governor pointing out misman­agement in the Corporation and issued a press statement of a political nature attri­buting motives to the then Chairman of the Corporation-His act of leaving the office unauthorisedly-Whether this amounted to violation of Rule 22 of the Service Rules?-(Yes)-Appellant’s plea of exercise of his fundamental rights under Art. 19(1)(a) and 19(1)(c)-Whether sustainable?-(No)-Whether Rule 22 is meant to curtail freedom of speech or expression or freedom to form associations or unions?-(No).

       Held : Rule 22 of the Service Rules is not meant to curtail freedom of speech or expression or the freedom to form associations or unions. It is clearly meant to maintain discipline within the service, to ensure efficient performance of duty by the employees of the Corpo­ration, and to protect the interests and prestige of the Corporation. Therefore, under Rule 22 an employee who disobeys the service Rules or displays negligence, inefficiency or in-subordination or does anything detrimental to the interests or prestige of the Corporation or acts in conflict with official instructions or is guilty of misconduct, is liable to disciplinary action. Rule 22 is not primarily or even essen­tially designed to restrict, in any way, freedom of speech or expres­sion or the right to form associations or unions. A Rule which is not primarily designed to restrict any of the fundamental rights cannot be called in question as violating Article 19(1)(a) or 19(1)(c). In fact, in the present proceedings the constitutional validity of Rule 22 is not under challenge. What is under challenge is the order of dismissal passed for violating Rule 22 when the impugned conduct which viola­tes Rule 22 is held out as an exercise of a right under Article 19(1)(a) or 19(1)(c). (Para 10)

       In the present case, the restraint is against doing anything which is detrimental to the inter­ests or prestige of the employer. The detrimental action may consist of writing a letter or making a speech. It may consist of holding a violent demonstration or it may consist of joining a political organi­sation contrary to the Service Rules. Any action which is detrimental to the interests or prestige of the employer clearly undermines disci­pline within the organisation and also the efficient functioning of that organisation. Such a Rule could be construed as falling under “public order” clause. (Para 12)

       The same requirements of Rule 22 can be better looked at from the point of view of Article 19(1)(g) as requirements in furtherance of the proper discharge of the public duties of Government service. Rules which are directly linked to and are essential for proper discharge of duties of a public office would be protected under Article 19(1)(g) as in public interest. If these Rules are alleged to violate other free­doms under Article 19, such as, freedom of speech or expression or the freedom to form associations or unions or the freedom to assemble peaceably and without arms, the freedoms have to be read harmoniously so that Rules which are reasonably required in furtherance of one freedom are not struck down as violating other freedoms. (Para 13)

       The fundamental freedoms enumerated under Article 13 are not necessarily and in all circumstances mutually supportive, although taken together they weave a fabric of a free and equal democratic society, e.g. the right to reside and settle in any part of the coun­try can be put in jeopardy by a vociferous local group freely express­ing its view against persons from another part of the country. Freedom of speech of one affects the freedom of movement of another. Exercis­ing the right to form an association may curtail the freedom to ex­press views against its activities. The rights must be harmoniously construed so that they are properly promoted with the minimum of such implied and necessary restrictions. In the present case, joining Government service has, implicit in it, if not explicitly so laid down, the observance of a certain code of conduct necessary for the proper discharge of functions as a Govern­ment servant. That code cannot be flouted in the name of other free­doms. Of course, the courts will be vigilant to see that the code is not so widely framed as to unreasonably restrict fundamental freedoms. But a reasonable code designed to promote discipline and efficiency can be enforced by the Government organisation in the sense that those who flout it can be subjected to disciplinary action. (Para 14)

       Courts have made sure that such impingement is minimal, and Rules are made in public interest and for proper discharge of public duties. A proper balancing of interests of an individual as a citizen and the right of the State to frame a code of conduct for its employees in the interest of proper functioning of the State, is required. (Para 15)

       In the present case, the appellant had made a direct public attack on the head of his organisation. He had also, in the letter to the Governor, made allegations against various officers of the corporation with whom he had to work and his conduct was clearly detrimental to the proper functioning of the organisation or its internal discipline. Making public statements against the head of the organisation on a political issue also amounted to lowering the prestige of the organi­sation in which he worked. On a proper balancing, therefore, of indi­vidual freedom of the appellant and proper functioning of the Govern­ment organisation which had employed him, this was a fit case where the employer was entitled to take disciplinary action under Rule 22. (Para 17)

       

Judgment

Mrs. Sujata V. Manohar, J.-At the material time the appellant was the Assistant Manager of the respondent-Karnataka State Small Industries Development Corporation (KSSIDC), Bangalore. He was also the President of the Karnataka State Small Industries Development Corporation Em­ployees’ Welfare Association, Bangalore.

2. On 3rd of June, 1977 the appellant addressed a letter to the Gover­nor of Karnataka on behalf of the Karnataka State Small Industries Development Corporation Employees’ Welfare Association in which he stated that the KSSIDC Corporation was likely to be wound up on ac­count of bad administration, corruption and nepotism. He said that till 1977 the Corporation was running at a profit. However, since then it was sustaining continuous losses. In the letter it was alleged that several persons were being appointed in the Corporation who were not properly qualified at the instance of political leaders and ministers. The letter set out some instances of these kinds of appointments. There were also allegations in the letter about the nexus between contractors for various projects and the management of the Corpora­tion. There were also some allegations about cement purchased from the Corporation being diverted and various such alleged malpractices in general terms. The letter requested the Governor to arrange to inves­tigate the working conditions of the said Corporation. The letter had no connection with the service conditions of the employees or the objects of the Employees’ Welfare Association.

3. On 31st of December 1977, the appellant issued a press statement which was published in a Kannada Daily called Samyuktha Karnataka of the same date. The appellant issued a statement welcoming the dismissal of Mr. S.C. Venkatesh, who was then the Chairman of the appellant-Corporation from the Presidentship of the Bangalore City District Congress Committee. The appellant also expressed the hope that politi­cal leaders would prevail upon the Government and remove Mr. S.C. Venkatesh from the Presidentship of the respondent-Corporation thereby saving lakhs of rupees as Mr. S.C. Venkatesh was doing illegal activi­ties.

4. In January, 1978 the respondent wrote to the appellant seeking confirmation about the authorship of the letter which had been sent to the Governor and asking for his explanation as to why disciplinary action should not be taken against him. Thereupon the appellant went on leave from 9th of January 1978 till 31st of January, 1978. The appellant absented himself from duty from 9th of January, 1978 and on 12th of January, 1978 he sent a telegram to the respondent seeking commuted leave from 9.1.1978 to 31.1.1978. On 1st of February, 1978 the respondent published a notice in the newspaper calling upon the appellant to report back for duty within seven days. By letter of 9th of February, 1978, the appellant was asked to show cause in writing as to why disciplinary action should not be taken as per Rule 22 of the Service Rules of the Corporation. The appellant sent a reply dated 17.2.1978.

5. Thereafter on 11.4.1978 three articles of charge were served on the appellant. The charges were to the following effect:

Charge No. 1 was to the effect that he had written a letter dated 3.6.1977 to the Governor of Karnataka pointing out mismanagement in the respondent-Corporation. Being an employee of the Corporation he could not address the letter to the Governor without permission of the management. This amounted to violation of Rule 22 of the Service Rules of the Corporation, since it was misconduct and knowingly doing something detrimental to the interests and the prestige of the Corpo­ration.

Charge No. 2 was to the effect that the appellant had issued a state­ment in Samyukta Karnataka Kannada Daily dated 31.12.1977 attributing motives to the then Chairman of the respondent-Corporation and welcom­ing his dismissal from the Presidentship of the Bangalore District Congress Committee. Being an employee of the Corporation he





























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