JUDGMENT

FAZAL ALI, J. :—These two appeals (one by the State of Andhra Pradesh and the other by the Union of India) by certificate are directed against a Division Bench Judgment of the Andhra Pradesh High Court dated 17-11-1977 confirming the decision of a single Judge by which an order passed by the Central Government compulsorily retiring M.E. Reddy respondent No. 1 (hereinafter referred to as Reddy) from service in public interest was quashed in a writ petition filed before the High Court.

2. The facts of the case lie within a very narrow compass particularly in view of the fact that we have decided not to go into the question of mala fide alleged against respondent No. 3, Mr. K. Brahmanand Reddy before the High Court because Reddy in a previous writ filed in the High Court against the order of suspension had expressly withdrawn all the allegations against Mr. K. Brahmanand Reddy, respondent No. 3 in the High Court. We shall however, touch the fringes of this question so far as it directly affects the order impugned passed by the Government of India.

3. Reddy started his career in the Police Service as Deputy Superintendent of Police in the year 1948. In the year 1958 Reddy was appointed to the Indian Police Service and 1952 was the year of his allotment. On 31-7-1958 Reddy was promoted as Superintendent of Police in the State of Andhra Pradesh and held charge of a number of Districts from time to time. Reddy was also awarded the President Police Medal near about the 14th August, 1967, but the award of the President Police Medal was withheld as Reddy was placed under suspension by the Government on 11-8-1967 pending departmental enquiry into a number of allegations made against him. It is not necessary for us to detail those allegations which are not germane for the purpose of deciding these appeals.

4. In 1969 Reddy filed a writ petition in the Andhra Pradesh High Court praying that the order of suspension passed against him dated 11-8-1967 may be quashed as it was passed on false allegations and at the instance of Mr. K. Brahmanand Reddy who was the Chief Minister of Andhra Pradesh at that time. A large number of allegations in support of the plea of malice were made by Reddy. The writ petition was admitted by the High Court which passed an order dated 17-7-1969 staying all further proceedings including the written statement by Reddy to the six charges framed against him by the Department. When the writ came up for hearing before the single Judge, the State Government represented to the High Court that it had decided to withdraw the order of suspension and reinstate the respondent No. 1, Reddy. The State Government accordingly withdrew the order of suspension and directed that the period of suspension may be treated as on duty. Thereafter Reddy filed an application before the High Court Seeking permission to withdraw the petition as also the allegations made in the petition against the Chief Minister, Respondent No. 3 in the High Court. The High Court accepted the prayer of Reddy and allowed the petition to be withdrawn and passed the following order:-

"It seems that orders reinstating the petitioner and virtually cancelling the suspension order are being issued. The learned Advocate for the petitioner therefore desires to withdraw the writ petition. The writ petition is therefore dismissed as withdrawn".

As a result of these developments the departmental proceedings against Reddy were dropped and he was given Selection Grade which appears to have been withheld because of the order of suspension passed against Reddy. On 27-4-1871 Reddy was given the Selection Grade with retrospective effect from 6-6-1969. Thereafter by an order dated 28-4-1971 Reddy was promoted to the Rank of Deputy Inspector General of Police by the State Government. It appears that during the course of the departmental enquiry the following entry appears to have been made in the Annual Confidential Report of Reddy:-

"He is under suspension. Allegation agains