Civil Appeal No 2686 of 1979
From the Judgment and order dated 27 8 1979 of the Delhi High Court in Civil Writ Petition No 84478
RK Garg and C M Nair for the Appellant
HS Marwah for the Respondent No 6
VM Tarkunde and P P Juneja for Respondent No 7
Lal Narain Sinha Att
Genl Abdul Khader and Miss A Subhashini for the Union of India
The Judgment of the Court was delivered by CHINNAPPA REDDY J
The judgment in this appeal is really an appendix to the judgment pronounced by us in Civil Appeal No 2112 of 1979
The relevant facts may be gathered from that judgment
The further events requiring to be mentioned are these While the Writ Petition filed by Ahluwalia in the High Court of Himachal Pradesh was pending some of the respondents to the Writ Petition and one R R Verma all direct recruits chose to file a Writ Petition in the Delhi High Court questioning the notice dated June 29 1979 calling upon them to submit representations against the year of allotment proposed to be allotted to Sahney Dhaliwal and Ahluwalia
After the Writ Petition of Ahluwalia was allowed and after the Central Government passed the order dated July 27 1979 pursuant to the direction issued by the High Court of Himachal Pradesh the Delhi High Court dismissed the Writ Petition filed by the direct recruits as infructuous
The High Court however granted a certificate of fitness to appeal to this Court under Article 133 of the Constitution
Therefore this appeal
The Writ Petition having been dismissed as infructuous we do not see how a certificate under Article 133 could have been granted
But we do not want to dismiss the appeal on that preliminary ground
Shri R K Garg learned counsel for the appel 481 lants challenged the order of the Central Government dated July 27 1979 on three grounds 1 Rule 3 of the All India Services Conditions of Service residuary matters Rules offended Article 14 of the Constitution and was ultra vires as it conferred arbitrary and uncanalised power upon the Central Government to grant relaxation whenever it pleased it to do so
2 The discretion to relax the rules was wrongly exercised in the present case
3 The Central Government was powerless to review its earlier orders as such a power of review was not expressly conferred by the rules
The second question has already been considered by us in Civil Appeal No 2112 of 1979 and we have held that this was a fit case for the exercise of the power of the Central Government to relax the rules
The first question is about the Constitutional validity of rule 3 of the All India Services Conditions of Service residuary matters Rules 1960
Rule 3 is as follows 3
Power to relax rules and regulations in certain cases Where the Central Government is satisfied that the operation of i any rule made or deemed to have been made under the All India Services Act 1951 61 of 1951 or ii any regulation made under any such rule regulating the conditions of service of persons appointed to an All India Service causes undue hardship in any particular case it may be order dispense with or relax the requirements of that rule or regulation as the case may be to such extent and subject to such exceptions and conditions as it may consider necessary for dealing with the case in a just and equitable manner
The submission of Shri Garg was that the rule conferred upon the Central Government absolute and arbitrary discretion a discretion left entirely to the satisfaction of the Government Government with no prescribed objective standards or guidelines
It is true that the rule is couched in a language suggestive of near autocratic power reminiscent of bad old days of the Imperial Raj but we have no doubt that the rule is not meant to vest the Central Government with power to pass any order they like with a view to promote the interests 482 of a favoured Civil servant
It is really meant to relax in appropriate cases the relentless rigour of a mechanical application of the rules so that civil servants may not be subjected to undue and undeserved hardship
Sufficient guidance can be had from the very rule and from the scheme of the various statutory provisions dealing with the conditions of service of Members of the All India Service
Section 3 of the All India Services Act enables the Central Government in consultation with the Governments of the States concerned to make rules for the regulation of recruitment and the conditions of service of persons appointed to an All India Service
Pursuant to the power given by Section 3 of the All India Services Act the Central Government has made innumerable sets of rules some common to all the All India Services and some applicable separately to each of the All India Services
The All India Services Leave Rules the All India Services Conduct Rules the All India Services Discipline and Appeal Rules the All India Services Travelling Allowance Rules and the All India Services Conditions of Service residuary matters Rules are examples of rules made under Section 3 of the All India Services Act which are common to all the All India Services
The Indian Police Service Cadre Rules the Indian Police Service Recruitment Rules the Indian Police Service Probation Rules the Indian Police Service Regulation of Seniority Rule are examples of rules made under section 3 of the All India Services Act applicable to a single All India Service namely the Indian Police Service
The rules as may be seen deal with countless matters which concern a civil servant such as creation of cadres fixation of Cadre Strength recruitment seniority promotion leave allowances conduct discipline and appeal and a host of such other matters
The golden thread if we may so call it which runs through the entire complex fabric of rules is the securing of honest and competent civil servants
Integrity and efficiency are the hall marks of any civil service anywhere and they are what are contemplated and aimed at by the wide range of rules
The interest to be served is always the public interest and not individual interest
Public interest in the matter of the conditions of service of civil servants is best served by rules which are directed towards efficiency and integrity
Now very wide as the range covered by the rules is the rules can never be exhaustive
Unforeseen and complex situations often arise as will be obvious even from a bare perusal of the cases reported in the Law Journals arising out of service controversies
Very often it is found that an all too strict application of a rule works undue hardship on a civil servant resulting in injustice and inequity causing disappointment and frustration to the civil 483 servant and finally leading to the defeat of the very object aimed at by the rules namely efficiency and integrity of civil servants
Hence it is that the Central Government is vested with a reserve power under rule 3 to deal with unforeseen and unpredictable situations and to relieve the civil servants from the infliction of undue hardship and to do justice and equity
It does not mean that the Central Government is free to do what they like regardless of right or wrong nor does it mean that the Courts are powerless to correct them
The Central Government is bound to exercise the power in the public interest with a view to secure civil servants of efficiency and integrity and when and only when undue hardship is caused by the application of the rules the power to relax is to be exercised in a just and equitable manner but again only to the extent necessary for so dealing with the case
We do not have to add that the exercise of the power of relaxation like all other administrative action affecting rights of parties is subject to judicial review on grounds now well known
Viewed in this light we do not think that Rule 3 is unconstitutional on the ground that it vests an unfettered discretion in the Government
The last point raised by Shri Garg was that the Central Government had no power to review its earlier orders as the rules do not vest the Government with any such power
Shri Garg relied on certain decisions of this Court in support of his submission  Patel Narshi Thakershi  Ors
vs Pradvamunsinghji Arjunsinghji D N Roy and section K Bannerjee  Ors
vs State of Bihar  Ors
 and State of Assam  Anr
vs J N Roy Biswas
All the cases cited by Shri Garg are cases where the Government was exercising quasi judicial powers vested in them by statute
We do not think that the principle that the power to review must be conferred by statute either specifically or by necessary implication is applicable to decisions purely of an administrative nature
To extend the principle to pure administrative decisions would indeed lead to untoward and startling results
Surely any Government must be free to alter policy or its decision in administrative matters
If they are to carry on its their daily administration they cannot be hide bound by the rules and restrictions of judicial procedure though of course they are bound to obey all statutory requirements and also observe the principles of natural justice where rights of parties may be affected
Here again we emphasise that if administrative decisions are reviewed the decisions 484 taken after review are subject to judicial review on all grounds on which an administrative decision may be questioned in a Court
We see no force in this submission of the learned counsel
The appeal is therefore dismissed
SR Appeal dismissed


Summary:
One Sri Ahluwalia a senior member of the Indian Police Service sought to quash the decision of the Union of India dated 26 6 1976 whereby his year of allotment was fixed as 1965
When the Writ Petition of Sri Ahluwalia was pending in the High Court of Himachal Pradesh some of the respondents in that Writ Petition and one R R Verma all direct recruits choose to file a Writ Petition in the Delhi High Court questioning the notice dated June 29 1973 calling upon them to submit representations against the year of allotment proposed to be allotted to Ms Sahney Dhaliwal and Ahluwalia
After the Writ Petition of Ahluwalia was allowed and after the Central Government passed the order dated July 27 1979 pursuant to the direction issued by the High Court of Himachal Pradesh to Union of India to refix the seniority and year of allotment to Sri Ahluwalia the Delhi High Court dismissed the Writ Petition filed by the direct recruits as infructuous
The High Court however granted a certificate of fitness to appeal to this Court under Article 133 of the Constitution
Dismissing the appeal the Court  HELD 1
The Writ Petition having been dismissed as infructuous it is not proper on the part of the High Court to grant a certificate of fitness under Article 133 of the Constitution
480G H 2
Rule 3 of the All India Services Conditions of Service residuary matters Rules 1960 is couched in a language suggestive of near autocratic power reminiscent of bad old days of the Imperial Raj but the rule is not ment to vest the Central Government with power to pass any order they like with a view to promote the interests of a favoured Civil servant
It is really meant to relax
In appropriate cases the relentless rigour of a mechanical application of the rules so that civil servants may not be subjected to undue and undeserved hardship
Sufficient guidance can be had from the very rule and from the scheme of the various statutory provisions dealing with the conditions of service of Members of the All India Service
481G H 482A B 3
Rule 3 is not unconstitutional on the ground that it vests an unfettered discretion in the Government
Section 3 of the All India Services Act enables 479 the Central Government in consultation with the Governments of the States concerned to make rules for the regulation of recruitment and the conditions of service of persons appointed to an All India Service
Pursuant to the power given by Section 3 of the All India Services Act the Central Government has made innumerable sets of rules some common to all the All India Services and some applicable separately to each of the All India Services
The All India Services Leave Rules the All India Services Conduct Rules the All India Services Discipline and Appeal Rules the all India Services Travelling Allowance Rules and the All India Services Conditions of Service residuary matters Rules are examples of rules made under Section 3 of the All India Services Act which are common to all the All India Services
The Indian Police Service Cadre Rules the Indian Police Service Recruitment Rules the Indian Police Service Probation Rules the Indian Police Service Regulation of Seniority Rules are examples of rules made under section 3 of the All India Services Act applicable to a single All India Service namely the Indian Police Service
The rules deal with countless matters which concern a civil servant such as creation of cadre fixation of Cadre Strength recruitment seniority promotion leave allowances conduct discipline and appeal and a host of such other matters
The golden thread which runs through the entire complex fabric or rules is the securing of honest and competent civil servants
Integrity and efficiency are the hall marks of any Civil service anywhere and they are what are contemplated and aimed at by the wide range of rules
The interest to be served is always the public interest and not individual interest
Public interest in the matter of the conditions of service of civil servants is best served by rules which are directed towards efficiency and integrity
482B G  483D Now very wide as the range covered by the rules is the rules can never be exhaustive
Unforeseen and complex situations often arise
Very often it is found that all too strict application of a rule works undue hardship on a civil servant
resulting in injustice and inequity causing disappointment and frustration to the civil servant and finally leading to the defeat of the very objects aimed at by the rules namely efficiency and integrity of civil servants
Hence it is that the Central Government is vested with a reserve power under rule 3 to deal with unforeseen and unpredictable situations and to relieve the civil servants from the infliction of undue hardship and to do justice and equity
It does not mean that the Central Government is free to do what they like regardless of right or wrong nor does it mean that the Courts are powerless to correct them
The Central Government is bound to exercise the power in the public interest with a view to secure civil servants of efficiency and integrity and when and only when undue hardship is caused by the application of the rules the power to relax is to be exercised in a just and equitable manner but again only to the extent necessary for so dealing with the case Moreover the exercise of the power of relaxation like all other administrative action affecting rights of parties is subject to judicial review on grounds now well known
482G H 483A C 4
It is not correct to say that the principle that the power to review must be conferred by statute either specifically or by necessary implication is applicable to decisions purely of an administrative nature
To extend the principle to pure administrative decisions would indeed lead to untoward and startling re 480 sults
Surely any Government must be free to alter its policy or its decision in administrative matters
If they are to carry on their daily administration they cannot be hide bound by the rules and restrictions of judicial procedure though of course they are bound to obey all statutory requirements and also observe the principles of natural justice where rights of parties may be affected
Again if administrative decisions are reviewed the decisions taken after review are subject to judicial review on all grounds on which an administrative decision may be questioned in a Court
483F H 484A Patel Narshi Thakershi and Ors
vs Pradvamunsinghji Arjunsinghji AIR 1970 SC 1273 D N Roy and section K Banerjee and Ors
vs State of Bihar and Ors
  and State of Assam and Anr
vs J N Roy Biswas 1976 2 SCR 128 distinguished