LALJEE DUBEY AND OTHERS versus UNION OF INDIA AND OTHERS

LALJEE DUBEY AND OTHERS

UNION OF INDIA AND OTHERS November 13, 1973

[A. N. RAY, C.J. ANDS. N. DW!VEDI, J.J

Constitution of lridia, Arts. 14 and 16-Discrlminatlon in the mat/Ir oj con-ferment of benefit through an administraJlve order-IAttet of Preside/II dated November 11, 1953 classifying checker's post in Government Harness OJtd Saddlery Factory, Kanpur as posr. of lower division c/erks-,f.ppellant1 tlenied the designation as clerks while others similarly .situate were ziven the bemfll-Held discriminatory.

The appellants were employed as chec~ra in the Government Harness and Saddlery Fac(9ry, Kanpur. Their dutiea were substantially clerical. The ques-tion of designating checkers substantially during clerical work was refetTed by the Government to committee known as "Kalyanwala Committee". The com .. mittee recommended that tho peraoos d<)ing clerical work should be desianated as lower division clerks. The reco~dation was accepted by the Prelident of India by his letter dated November· 17, 1953. The Director General was directed to· re-classify cbeCkers· as L.D.'Cs if they were matriculate& or completed three. years continuous service as checkers. The appellants . claimed that they satisfied the above test and yet they were not classified as lower division clerb. The appellants filed civil suit for declaration that· they wero entitled to be Classified and re-designated as lower division clerks, foil!tding their claim on the President's letter dated November 17, 1953. Tho srliivinco of the appellantl was that other employees who did not possess the necessary qualifications were designated as LD.C.. Th• trial Court on evidence found that the appellanta were performing duties which were substantially of clerical nature and there· fore granted the declaration in favour of the appellants. The District Court, on appeal by the State. held that the Court had no jurisdiction to grant relief 1ince the .President's letter wBs in the nature of departmental rules. On appeal by the appellants, the High Court held that the letter of the Prooident of India did aot constitute 'a rule under Art 309 of the Constitution but was merely in the nature of an administrative '.Or executive order. Before thia Court, tho appellants con· tended that the letter dated November 17, 1953, should ·be implemented becalllO the Government accepted ·the recommendations of the Kalyanwala Committee. The other checkers 1>0rforming duties similar to those of the. &pl'Ollants having been granted the benefit of the order contained in the President's letter, denial of r the same benefit to the appellants who were similarly •ituate would be 'violative of the fundamental rights guaranteed under Art. 14 and 16. -

Allowing the appeal,

HELD: (i) The Jetter of the President of India dated 17th November, 1953 gave 118l1Clion to the recommendations of the Kalyanwala Committee. The authorities admitted some checkers as lower division clerks and left· others tG the_ir own posts. The direction· containing the sanction of the President indica· tes that the checket:s who had the requisite qualifications, viz., passing matricula· tion examination. or. in the alternative· three years continuous service in the· department, '1ere to be put in the category of lower division clerks. In the case of checkers who had requisite qualifications the authorities concerned had no· option to make any selection am.Qng such J?ersons f<?r th~ conferment of the ·benefit. The appellants possessed the required quallficat1ons imd were perform· ing the duties which were substantially clerical. The appellants are thus entitled to be designated as lower division clerks in accordance with the directions con· tained ii! the letter of the President dated November 17, 1953. Thero !)as beea arbitrary discrimination against the appellants.

In the case of checkers who did not posse8s the requisite qualifications, the authorities bad the dii;:cretion in matters of classification of cheCkers as lower division clerks. [253F-G]

(ii) Held further that it was not necessary to express any opinion as to whether the President's letter dated November 17, 1953 became rule under Art. 309 of the Constitution. [254C]

Purushottam Lal and others v. Union of India and another, [1973! 1 S.C.C. 651, ·followed.

Union of India v. K. P. Joseph and others, A.I.R. 1973 S.C. 303, referred to. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1987 of 1968. Appeal by Special Leave from the judgment and Orde~ dated the 29th September, 1965 of the Allahal>ad High Court in Second Appeal No. 2517 of 1961.

R. K. Garg, S. C. Agrawala and V. I. Francis, for the appellants.

S. N. Prasad and R. N. Sachthey, for the respondents.

The Judgment of the Court was delivered by

. RAY, C.J. This is an appeal by special leave from the judgment dated 29 September, 1965 of the Allahabad High Court.

The question, in this appeal is· whether the appellants who are plaintiffs in the suit are entitled to be classified and re-designated as lower division clerks.

plaintiffs in the suit are entitled to be classified and re-designated as lower division clerks. The appellants were employed in the Government Harness and Saddlery Factory, Kanpur. They were designated as checkers. Their duties were substantially clerical. They made representations to the authorities for being classified as clerks. The matter was referred to Committee called 'Kalyanwala Committee'. The Committee recommended that persons doing clerical work should be designated as lower division clerks. The recommendation was accepted by the President of India. The Director General was directed to re-classify checkers as lower division clerks if they were matriculates or com-pleted three years' continuous service. The appellants claimed that they satisfied the tests and yet they, were not classified as lower divtsion clerks. The grievance of the appellants was that other employees who did. not possess the necessary qualificatiOns were designated as lower division clerks. The appellants asked for declaration that they were entitled to be classified and rede_signated as lower division cler!CS. The appellants founded their claim on the leiter dated 17 November, 1953. ·

The respondents . contended that th,e duties performed by the . appellants were not substantially clerical and other employe" who . were sufficiently qualified were designated as lqwer division clerks.

The trial Court referred to the oral evidence. Three witnesses on behalf of the appellants µarrated their career in· the. service of Harness . and Saddlery Factory and d~ribed · the duties performed by them. The trial Court, also referred to the eviden~ on behalf of the res-pondents. The principal issue before th: trlal . Court was whether the appellants were entitled to be clasaifted and designated as lower division. clerks on the basis of the reeommendation of Kalyanwala Committee and the sanction of . the President of India thereon. On

this .issue the trial Court referred to the evidence on behalf of the parties and found that the evidence showed beyond any doubt that the appellants performed duties which are of substantially clerical nature. The trlil · Court, therefore, answered the issue in favour of . the appellants. ·

On appeal the District Judge found in favour of the appellants that the duties performed by them were of substantially clerical nature. The District Judge, bowever, held that the Court had no jurisdiction tO grant .relief to the appellants even if departmental rules have been disregarded by the executive authorities.

The High Court on second appeal found that the finding of the trial Court as well as of the appellate Court was in favour of the appellants that they performed duties of substantially clerical nature. The learned single Judge of the High Court on second appeal referred the matter to the learned Chief Justice for constituting larger Bench on the question as to whether the order of the President of India created right in favour of · the appellants.

The matter was thereafter heard by a· Division Bench of the High Court. The question for consideration before the High Court was whether the letter dated 17 November, 1953 conferred any right on the appellants. The appellants contended that the letter constituted rule framed by the President of India under Article 309 of the Con-stitution. The -i;espondents on the other hand contended that the letter was merC'..pfder of an administrative nature.

The letter dateN_7 November, 1953 was addre;sed by ihe Under Secretary to the Government of India, Ministry of Defence to the Dh-ector General, Ordna"hce Factories. The letter referred to \be re-commendations of conltnjttee of Enquiry called the 'Kalyanwala Committee' and conve}"d the sanction of the President as follows :-

"The existing posts of Checkers, Grades I & II in Ordnance. Factories, · the duties· of which are substantially cledcal, shall be classified by you in consultation with the D.F.A. (FYS) as posts of Lower Division Clerks. The incumbents of the posts so classified will be· .redesignated .as lower division clerks provided they are at least matriculates, or, if non·matrlculates, they have completed 3 years' conti· nuous se~ ~ Chf.ckers on the date from which these orde!'S take tif~,or #om the date qf reorganisation of the· existing cadre of Checkers whichever is later. Such of the incumbents of those posts as are non-matriculates and have not completed '3 years' continuous service as Checkers on the date of e!fect of this letter, .provided they are considered suitable in all rcfpects for the work, will also be redesignat, ed as Lower Divilion Clerks; they will,. how~ver, be r~verted as checkers as and when vacancies occur; ID future ID that grade and will then be replaced in the grade of Lower Divi· sion Clerks by qualified individuals. ·

The reroail\ing posts will contin~ to be de~ignated as Checkers but there will be· no grades. Incumbents of theee

posts .will be brought on to the single scale of Rs. 45-2-55-3·85 m place of the existing two scales of Rs. 40-1-50-2-60 and Rs. 55-3-85 on the date of from which these orders talce effect '?r the date of. reorganisation of the cadre of Checkers; whichever is.later".

. The letter dated 17 November, 1953 consisted of directions of two different nature. First, there were directions laying down how certain Checkers were to be reclassified as lower division Clerks Second directions ~iven related to t~e abolition of the two grades of Cbecke~ who rema1'!e?. after excludmg those persons who were redesignated as Lower D1vis10n Clerks. There was further direction that in future there would be onl~ one single grade for the. Checkers. That grade would be Rs. 45-2-55·3·85 instead of the two pre-existing scales of Rs. 40-1-50--2-60 and Rs. 55-3-85. The High Court on second appeal was divided in opinion. One of the learned Judges held that the letter contained orders and imtruc-tions governing certain -individuals only who were in service towards the end of the year 1953 and the underlying idea Wl!S to reclassify them as Checkers. There was no idea to fix conditions of servke of Checkers for all time. The letter did not constitute rule under Article 309 of the Constitution. The letter Wl!s aJ mere direction of an administrative nature. The other learned Judge held' that the letter laid down conditions of service. Conditions of service could only be prescribed by the President by Rules under Article 369. Tho letter amounted to rule framed by the President of India. ·

In view of the division the. question was referred to the third learned Judge as to whether the letter dated 17 November, 1953 constituted rule framed by the President under Article 309. The third. learned Judge held that the letter was of composite nature. There were ad hoc directions in ~pect of certain checkers. The letter also laid down some conditions of service which would apply to the. remaining checkers. The letter did not constitute rule framed by, the President of India under Article 309, The letter merely contained an order of an administrative or executive nature. This view of the third learned Judge become the majority view of the High Court.

Counsel on behalf of the appellants contended that the letter dated 17 November, 1953 should be implemented because the Government accepted the recommendation of Kalyanwala Committee, Counsel for the appellants submitted these reasons. Demal of the benefits of the order to the appellants is violative of fundamental rights guaranteed under Articles 14 and 16 of the Constitution. Other checkers performing duties similar to those of the appellants have been granted the benefit of the order contained in the letter dated 17 November, 1953 whereas the appellants who are similarly situate have been arbitrarily denied the benefit of the same.

In the recent decision in Purshottam Lal & Ors. v, Union of India & Anr. [1973] LS.C,C. 651 this Court h!'ld that the Government was bound to implement the recommendatI.ons of the Second Pay

Commlllion and . If the Govonunont did not iimplement the n:port regarding some employees only there would be breach of ArtlClet 14 and 16 of the Constitution. In Purshottam Lal case (supra) the Government of India set up Commission called the . ~'Second Pay Commission" to enquire into emoluments -and conditions of service of Centr~ Government employees. Purshottam Lal and othera were employed 1n the Forest Research Institute and College, Dehra Dun; They were Research Assistants. Their contention was that their case was covered by the recommendations of the Commission. On 2 August, 1960 the Government issued notification giving effect to the recommendations of the Pay Commission. On 21 June, 1962 the Government of India revised the pay scales of the ~titioners and stat· ed that the revision of the pay scales of the petitioners would take effect from .the date of the issue of the order. The petitioners con-c terided that the .rev!Sed pay scales of similar posts in similar sister institutes of the Research Institute under the same· Ministry had been implemented from l July, 1959 according to the Second PlllY Commis-sion recommendations, and, therefore, the. petitioners were entitled lo th~ bealefit of the r~trospective date, viz., l July, 1959. The Govern-~'COlile!Jded that 1t was for the Government to acoept the recom-D. aleiGati0111 the Pay Co~ion and while doing so to clctermine . ~· cateaories of · employeels should be taken to have been included in the terms of reference. This Court did not accept the. contention · of the Government. The Government made reference in respect of all Government employees. The Government accepted the n:commen-datioils. Therefore, the Government was bound to implement the recommendations in respect· of all Government employees. The reason given by this Court was that if the Government did not imple-ment the Report· regarding some employees only there would be breach of Articles 14 and 16 of tire Constitution.

In the present case the letter dated 17 November, 1953 shows that the President of India gave sanction to the recommendations of Kalyan-wala Committee. The authorities admitted some of the persons as lower division clerks and left others to their own po8ts. The direction con-taining the sanction of the President indicates that checkers . who had the requisite qualifications, viz., passing the matriculation examination or in the alternative three years' continuous service in the department were to be put in the category of lower divisioils clerks. The letter dated 17 November, 1953 divided checkei;s into hl-o groups. The first. group consisted of checkers who possessed the necessary qualifications as laid down in that order, The second group consisted Of those who .did not possess that qualification. In the case of perso~ Of the first group the authorities concerned could not . have any option to mako any seleciion among such persons. The direction in that letter indicates that such persons should be classified as lo,wer division clerks., In !he case of the secotid group, viz., those who di~. not f111fil ~e qul!1ific,ation requirements it was left open to the aut\lonties to exrc1se thell' ~~c,re­H tien and classify some of the checkers in the posts of lower _d1v1s1on clerks if they considered them to be fit and suitable to serve m those posts. The appellants were, therefore, entitled to. be design~ted l!8 lower division clerks, in accordance with the directions contained m

the letter Jated 17 November 1953. There bas been arbitrary dis· crimination against the appellants.

Jn another decision in Unio11 of India v. K. P. Joseph· and Ors. not yet reported in SuprelilJ) Court Reports but reported in A. I. R. 1973 S. C. 303 this Court considered whether general order descti· bed as Office Memorapdum providing for certain benefits to ex-military personnel on re-employment on the basis of their length of actual military service conferred any right relating to conditions of. service. This Court held that the persons mentioned in the order were entitled to have their pay fixed ii! the manner specified in the order and that was part of the conditions of service.·

It is not necessary to e~press any opinion as to whether .the letter dated 17 November, 1953 became rule under Article 309 of the Constitution. For the purposes of the appeal it is sufficient to hold that the letter has been accepted by. the authorities and given effect to in the case of some .of the employees belonging to the sam~ group as the appellants. ,

For these reasons, the appellants are entitled to succeed. The appeal is accepted. The judgment of the High Court is set aside ..

, · The. parties wil_I pay and bear. their own costs in view of the fact . that they ·ct id so throughout under the orders of Court. · ,

Appeal allowed.