SUPREME COURT OF INDIA
DELHI TRANSPORT CORPORATION
VERSUS
D. T. C. MAZDOOR CONGRESS ANB
DECIDED ON: September 4, 1990
Service Law - Delhi Road Transport (Amendment) Act, 1971. - Delhi Road Transport Act, 1950 - S. 3 - Constitutional validity of right of employer to terminate service of permanent employee without holding enquiry – whether the clauses permitting the employers or the authorities concerned to terminate the employment of the employees by giving reasonable notice or pay in lieu of notice but without holding any inquiry, are constitutionally valid and, if not, what would be the consequences of termination by virtue of such clauses or powers, and further whether such powers and clauses could be so read with such conditions which would make such powers constitutionally and legally valid ? In order to appreciate the question the factual matrix of these cases so far as these are relevant for the determination of the aforesaid questions, will have to be borne in mind in the light of the actual legal provisions involved in the respective cases
Finding of the Court:
In an appropriate case where there is no sufficient evidence available to inflict by way of disciplinary measure, penalty of dismissal or removal from service and to meet such a situation, it is not as if that the authority is lacking any power to make rules or regulations to give a notice of opportunity with the grounds or the material on records on which it proposed to take action, consider the objections and record reasons on the basis of which it had taken action and communicate the same. However scanty the material may be, it must form foundation. This minimal procedure should be made part of the procedure lest the exercise of the power is capable of abuse for good as well as for whimsical or capricious purposes for reasons best known to the authority and not germane for the purpose for which the power was conferred. The action based on recording reasoning without communication would always be viewed with suspicion. Therefore, I hold that conferment of power with wide discretion without any guidelines, without any just, fair or reasonable procedure is constitutionally anathema to Articles, 16 (1, 19 (l) (g) and 21 of the Constitution. Doctrine of reading down cannot be extended to such a situation –
In Hindustan Steel case that it is for the concerned (sic authority) to make appropriate rules or regulations arid to take appropriate action, even. without, resortng to elaborate enquiry needed consistent with the constitutional scheme. The correctness of the decision in Tulsiram Patel case though was doubted in Ram Chander v. Union of India, it is unnecessary to go into that question. For the purpose of this case it is sufficient to hold that proviso to Article 311 (2 itself is a constitutional provision which excluded the applicability of Article 311 (2 as an exception for stated grounds. It must be remembered that the authority taking action under either of the clause (b) or (c) to proviso are enjoined to record reasons, though the reasons are not subject to judicial scrutiny, but to find the basis of which or the ground on which or the circumstances under which they are satisfied to resort to the exercise of the power under either of the two relevant clauses to proviso to Article 311 (2 of the Constitution. Recording reasons itself is a safeguard for preventing to take arbitrary orunjust action. That ratio cannot be made applicable to the statutory rules
Result: Ordered accordingly
JUDGMENT
SABYASACHI MUKHARJI, J.
( 1 ) ). These civil appeals, special leave petitions and civil miscellaneous petitions deal with the question of constitutional validity of the right of the employer to terminate the services of permanent employees without holding any inquiry in certain circumstances by reasonable notice or pay in lieu of notice. The facts involved in these matters are diverse but the central question involved in all these is one, i. e. whether the clauses permitting the employers or the authorities concerned to terminate the employment of the employees by giving reasonable notice or pay in lieu of notice but without holding any inquiry, are constitutionally valid and, if not, what would be the consequences of termination by virtue of such clauses or powers, and further whether such powers and clauses could be so read with such conditions which would make such powers constitutionally and legally valid ? In order to appreciate the question the factual matrix of these cases so far as these are relevant for the determination of the aforesaid questions, will have to be borne in mind in the light of the actual legal provisions involved in the respective cases.
( 2 ) ). It will, therefore, be proper and appropriate to deal with the relevant facts in Civil No. 2876 of 1986 first. The appellant herein the Delhi Transport Corporation, is a statutory body formed and established under S. 3 of the Delhi Road Transport Act, 1950 (hereinafter called the Act) read with Delhi Road Transport (Amendment) Act, 1971. The appellant carries out the objects of vital public utility, according to the appellant, i. e. transport of passengers in the Union territory of Delhi and other areas. Respondent 2, Sri Ishwar Singh was appointed as conductor therein on probation for a period of I year in 1970. The probation period was extended thereafter for a further period of one year and thereafter he was regularised in service of the appellant. Similarly, respondent 3 Sri Ram Phal was appointed as Assistant Traffic in charge and after the probation period he was regularised in service. Respondent 4 Sri Vir Bhan was appointed as driver and after completing the probation period he was also regularised in service. It is stated that respondents 2 to 4 became, according to the appellant, inefficient in their work and started inciting other staff members not to perform their duties. They were served with termination notices on 4/06/1985 under Regulation 9 (b) of the Delhi Road Transport Authority (Conditions of Appointment and Service) Regulations, 1952. On 11/06/1985 respondents 2 to 4 and their Union being respondent 1 DTC Mazdoor Congress, filed Writ Petition No. 1422 of 1985 in Delhi High court, challenging the constitutional validity of Regulation 9 (b ). On May 11, 1986 the Division bench of the High court of Delhi allowed the said writ petition and struck down Regulation 9 (b) of the said Regulations, and directed the appellant to pay back respondents wages and benefits within 3 months from the date of the said judgment. This is an appeal, therefrom, by special leave. The question, therefore, is, was the High court justified in the view it took? It may be mentioned that Regulations 9 (a) and (6 were framed in exercise of the powers conferred under S. 53 of the said Act, which enables the formulation of Regulations. Regulation 9 of the said Regulations, which is material for the present controversy, reads as follows:"9. Termination of service. (a) Except as otherwise specified in the appointment orders, the services of an employee of the authority may be terminated without any notice or pay in lieu of notice: (I) During the period of probation and without assigning any reason thereof. (II) For misconduct. (III) On the completion of specific period of appointment. (IV) In the case of employees engaged on contract for a specific period, on the expiration of such period in accordance with the terms of appointment, (B) Where the termination is made
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