( 1 ) TERMED as harsh and yet firmly established rule, namely, the rule of res judicata has been invoked in this case by the Union of India, respondent by way of defence to the appellant s suit for a declaration that the orders of the appellant s reduction in rank and subsequent dismissal on September 16, 1954, from Government service are illegal and for recovery of Rs. 52,075. 00 on account of pay and allowances by way of consequential relief.

( 2 ) IT was in March 1941 that the appellant joined as a Lower Division Clerk in the Commerce Department of the Government of India. He made a marked progress and on June 27, 1948, was promoted as Administrative Officer, Gazetted, in the office of Chief Controller of Exports which post was, on September 1, 1949, re-designated as that of Assistant Controller. In 1950 the posts of Chief Controller of Exports and Chief Controller of Imports were merged but the appellant continued to hold the charge as Assistant Controller of Exports. On March 26, 1953, the appellant got a letter informing him that he had been suspended and two days later a charge-sheet was served on him. Two charges were levelled against the appellant-

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