Compulsory retirement orders must be based on valid evidence and cannot rely solely on inadequate adverse materials; arbitrary decisions are subject to judicial review.

Order :

(Shree Chandrashekhar, J):

This Special Appeal is pending since last 15 years.

2. The Rajasthan State Road Transport Corporation has filed this Special Appeal against order dated 30^th July 2009 passed in S.B. Civil Writ Petition No.5942/1992.

3. By the order dated 30^th July 2009, the writ Court interfered with the order of compulsory retirement passed on 27^th June 1992 against the employee Vijay Singh.

4. Without looking into the facts of the case, this Special Appeal is liable to be dismissed for the simple reason that there is a finding recorded by the writ Court that the service records of the employee regarding his overall performance during his service tenure was not placed on record in spite of opportunities granted to the employee. Just to indicate, the employee Vijay Singh was working on the post of Senior Foreman. He was served the order of compulsory retirement dated 27^th June 1992 which was in the nature of pre-mature retirement from service and not by the measure of punishment inflicted upon him.

5. Considering the stand taken by the employee that he had unblemished service record, an opportunity was granted to the Rajasthan State Road Transport Corporation to produce the service records showing his overall performance. It was in that context that the writ Court passed the following order:

“(6) As regards the over all performance, opportunities were granted to the respondents to place the entire record before the Court but the record has not been shown.

(7) In the service jurisprudence, the charge sheet is never treated as adverse material. The other adverse material which has been shown is two warnings. No reasonable person would form the requisite opinion on the given adverse material, therefore, the order of compulsory retirement is arbitrary and perverse. Therefore, the present case is covered by aforesaid principle (iv) of Baikuntha Nath Das as the order of compulsory retirement is arbitrary as well as perverse.

(8) In the result, the writ petition is allowed, the impugned order of compulsory retirement 27.6.1992 (Anx.2) is quashed and set aside and the petitioner is also entitled for consequential benefit. If, during the pendency of writ petition, the petitioner has already attained the age of superannuation, then he will be deemed to have been reinstated in service and retired on attaining the age of superannuation and in such a situation, he will be entitled to revised pension accordingly, with all consequential benefits. Three months' time is given to the respondents for compliance of this order.”

6. In Baikuntha Nath Das and another V. Chief District Medical Officer, Baripada and another (1992(2) SLR 2) the Hon’ble Supreme Court held as under:

“32. The following principles emerge from the above discussion:

(i) An order of compulsory retirement is not a punishment. It implies no stigma nor any suggestion of misbehaviour.

(ii) The order has to be passed by the government on forming the opinion that it is in the public interest to retire a government servant compulsorily. The order is passed on the subjective satisfaction of the government.

(iii) Principles of natural justice have no place in the context of an order of compulsory retirement. This does not mean that judicial scrutiny is excluded altogether. While the High Court or this Court would not examine the matter as an appellate court, they may interfere if they are satisfied that the order is passed (a) mala fide or (b) that it is based on no evidence or (c) that it is arbitrary in the sense that no reasonable person would form the requisite opinion on the given material; in short, if it is found to be a perverse order.(emphasis supplied)

(iv)The Government or the Review Committee, as the case may be) shall have to consider the entire record of service before taking a decision in the matter of course attaching more importance to record of and performance during the later years. The record to be so considered would naturally include the entries in the confide