Case: State Of U.P Vs. Shyam Lal Sharma

inasmuch as the proposal for retirement was approved, therefore, there was approval of the letter dated 14 February, 1962 and that letter was the basis of the order of compulsory retirement.16. The letter dated 14 February, 1962 was in four paragraphs. The concluding paragraph contained a proposal for compulsory retirement of the plaintiff-respondent. The concluding paragraph did not contain any stigma or imputation against the plaintiff-respondent. In the preceding paragraph 2 the author of the letter wrote that "He is considered to be a bad lot incorrigible and no longer useful." It was said on behalf of the plaintiff-respondent that there was stigma in the words incorrigible and no longer useful and the order of compulsory retirement was based on that stigma. Only the proposal for compulsory retirement was sent for approval. The order of compulsory retirement cannot be stated to sustain the plea of punishment by extracting opinions expressed by the authorities in regard to the officer in the past.17. This Court in Saksenas case, (AIR 1967 SC 1264 ) (supra) said "where an order requiring a Government servant to retire compulsorily contains express words from which a stigma can be inferred, that order will amount to removal within the meaning of Art. 311. But where there are no express words in the order we cannot delve into Secretariat files to discover whether some kind of stigma can be inferred on such research"In Saksenas case (supra) the order was as follows:"In pursuance of the orders contained in General Administration Department memorandum No. 433-258-I (iii)/63 dated the 28th February 1963, the State Government have decided to retire you with effect from the afternoon of the 31st December 1963."The relevant rule in Saksenas case (supra) conferred power on the Government to retire an officer after he attains the age of 55 years on three months notice without assigning any reason. The rule stated that the power would normally be exercised to weed out unsuitable employees after they have attained the age of 55 years.18. It was contended on behalf of Saksena that the order of retirement cast a stigma. This Court in Saksenas case (AIR 1967 SC 1264 ) referred to two earlier decisions of this Court to illustrate as to whether the order of retirement itself cast a stigma. One was Jagdish Mitter v. Union of India AIR 1964 SC 449 where the order was in these terms."Shri Jagdish Mitter, a temporary 2nd Division Clerk of this office having been found undesirable to be retained in Government service is hereby served with a months notice of discharge with effect from November 1, 1949".The other was the decision in (AIR 1967 SC 1260 ) (supra) where the order of retirement was as follows:"I am directed to say that the Governor has been pleased to order in the public interest under Art. 465A and Note (1) thereof of the Civil Service Regulations, the compulsory retirement with effect from September 1, 1960 of Shri Madan Mohan Nagar, Director State Museum, Lucknow who completed 52 years of age on July 1, 1960 and 28 years and 3 months of qualifying service on 31-5-1960 as he has outlived his utility".In Nagars case, (supra) this Court held that the words "respondent had outlived his utility" occurring in the order attached stigma to the officer. In Saksenas case, (supra) the order was that the Government decided to retire the officer with effect from 31 December 1963 and as the order did not contain any words from which stigma could be inferred it could not be said that the order of compulsory retirement amount to an order of removal in Saksenas case, (supra). This Court in Shyam Lals case, (AIR 1954 SC 369 ) (supra) held that the mere fact that the Government servant was compulsorily retired before he reached the age of superannuation could not in itself be a stigma.19. The ruling in Saksenas case, (AIR 1967 SC 1264 ) (supra) is also that where there are no words in the order of compulsory retirement which throw any stigma there should not be any inquiry into Government files to discover whether any remark amounting to stigma could be found in the files. The reason is that it is the order of compulsory retirement which alone is for examination. If the order itself does not contain any imputation or charge against the officer the fact that "considerations of misconduct or misbehaviour weighed with the Government in coming to its conclusion whether any action could be taken under rule 278 does not amount to any imputation or charge against the officer". This was the view empressed by this Court in Dalip Singhs case, AIR 1960 SC 1305 (supra).In that case the relevant rule was as follows:"The State reserves to itself the right to retire any of its employees on pension on political or on other reasons".Where the authorities can make an order of compulsory retirement for any reason and no reason is mentionany in the order it cannot be predicated that the order of compulsory retirement has an inherent stigma in the order. In the present case, the fact found is that the order of compulsory retirement could not be said to be on account of malice.20. Unless it is established from the order of compulsory retirement itself that a charge or imputation against the officer is made the condition of the exercise of that power or that by the order the officer is losing benefits already earned, the order of retirement cannot be said to be one for dismissal or removal in the nature of penalty or punishment. In the present case, the order of compulsory retirement does not suffer from any such vice.21. The High Court fell into the error of holding that the order of compulsory retirement in the present case contained stigma by going behind the order of retirement and also by misreading the letter dated 14 February, 1962 in the manner not warranted by the letter itself containing a mere proposal for compulsory retirement.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]14. The following propositions can be extracted from these decisions. First, in ascertaining whether the order of compulsory retirement is one of punishment it has to be ascertained whether in the order of compulsory retirement there was any element of charge or stigma or imputation or any implication of misbehaviour or incapacity against the officer concerned. Secondly, the order for compulsory retirement will be indicative of punishment or penalty if the order will involve loss of benefits already earned. Thirdly, an order for compulsory retirement on the completion of 25 years of service or an order of compulsory retirement made in the public interest to dispense with further service will not amount to an order for dismissal or removal as there is no element of punishment. Fourthly, an order of compulsory retirement will not be held to be an order in the nature of punishment or penalty on the ground that there is possibility of loss of future prospects, namely, that the officer will not get his pay till he attains the age of superannuation, or will not get an enhanced pension for not being allowed to remain a few years in service and being compulsorily retired.15. Judged by the principles enunciated by this Court it is apparent that the order of compulsory retirement in the present case does not on the face of it contain any stigma or imputation or penalty. It is not the case of the plaintiff-respondent that the order of compulsory retirement involved any loss of benefits already earned or that there was any penalty in the nature of loss of emoluments or pension. It was contended on behalf of the plaintiff-respondent that the reasoning adopted by the Court of Civil and Sessions Judge and upheld by the High Court was correct that the letters dated 16 March, 1962 and 14 February, 1962 established in the present case that there was stigma in these letters and the order of compulsory retirement was based on these letters and therefore the orderwas one of punishment.The letter dated 16 March, 1962 stated that "proposal for compulsory retirement............... is approved". This letter cannot be said to have any stigma or imputation. It was submitted that inasmuch as the proposal for retirement was approved, therefore, there was approval of the letter dated 14 February, 1962 and that letter was the basis of the order of compulsory retirement.16. The letter dated 14 February, 1962 was in four paragraphs. The concluding paragraph contained a proposal for compulsory retirement of the plaintiff-respondent. The concluding paragraph did not contain any stigma or imputation against the plaintiff-respondent. In the preceding paragraph 2 the author of the letter wrote that "He is considered to be a bad lot incorrigible and no longer useful." It was said on behalf of the plaintiff-respondent that there was stigma in the words incorrigible and no longer useful and the order of compulsory retirement was based on that stigma. Only the proposal for compulsory retirement was sent for approval. The order of compulsory retirement cannot be stated to sustain the plea of punishment by extracting opinions expressed by the authorities in regard to the officer in the past.Unless it is established from the order of compulsory retirement itself that a charge or imputation against the officer is made the condition of the exercise of that power or that by the order the officer is losing benefits already earned, the order of retirement cannot be said to be one for dismissal or removal in the nature of penalty or punishment. In the present case, the order of compulsory retirement does not suffer from any such vice.21. The High Court fell into the error of holding that the order of compulsory retirement in the present case contained stigma by going behind the order of retirement and also by misreading the letter dated 14 February, 1962 in the manner not warranted by the letter itself containing a mere proposal for compulsory retirement.