DEV DUTT versus UNION OF INDIA & ORS.

[2008] 8 S.C.R.174

DEV DUTT

v: UNION OF INDIA & ORS. (Civil Appeal No.7631/2002)

MAY 12, 2008

[H.K. SEMA AND MARKANDEY KAT JU, JJ.]

Service law -Adverse entries, in Annual Confidentiai Re-port - Non-communication- Effect of - On facts, for promotion [to ][the post ][of ][Superintending Engineer, bench mark 'very good' ]for last 5 years- Incumbent having only 'good' entry for 1993-94, thus; not considered for promotion - Challenge to, for non-communication of 'good' entry - Held: Every entry in ACR of every employee under the State, whether in civil, judicial, po-D [lice ][or ][other service (except military) must be communicated ]to him, within reasonable period, to enable him to make rep-resentation against it and praying for its up-gradation - It is not that only adverse entry is to be communicated - In the factual situation 'good' entry is adverse entry because it elimi-nated the incumbent's chance from being considered for pro-E motion - Rigours of entry is important and not phraseology -Non-communication of entry may affect his chances for pro-motion or get other benefits - Hence, non-communication of entry in CR arbitrary, and violative of Article 14 - Constitu-tion of India, 1950 Article 14.

The appellant-Executive Engineer was not found eli-gible for promotion to the post of Superintending Engi-n~er on completion of 5 years on the grade of Executive Engineer. However, his juniors were selected and pro-G [moted to the rank ][of ][Superintending Engineer. Appellant ]filed Writ Petition. Respondent contended that as per para 6.3(ii) of the guidelines for promotion of departmental can-didates issued by Government of India, Ministry of Public Grievances and Pension, vide Office Memorandum dated

DEV DUTT v. UNION OF INDIA & ORS.

10.4.1989, for promotion to the post of Superintending

Engineer, bench mark was 'very good' for last 5 years be-fore DCP, and the appellant did not have 'very good' en-try but only 'good' entry for the year 1993-94, thus, was not considered for promotion. Appellant filed writ petition. He contended that since he was not communicated the 'good' entry for the year 1993-94, the rules of natural jus-tice were violated. High Court dismissed the writ petition as also the appeal. Hence the present appeal.

Allowing the appeal, the Court

HELD: 1.1 It cannot be said that only an adverse entry needs to be communicated to an employee. Every entry must be communicated to the employee concerned, so that he may have an opportunity of making representation

against it if he is aggrieved. [Paras 8 and 9) [182-G,H, 183-A] 0

1.2 The bench mark (i.e. t!le essential requirement)

laid down by the authorities for promotion to the post of Superintending Engineer was that the candidate should have 'very good' entry for the last five years. Thus, in this situation the 'good' entry in fact is an adverse entry be-E cause it eliminates the candidate from being considered for promotion. The nomenclature is not relevant, it is the effect which the entry is having which determines whether it is an adverse entry or not. It is thus the rigours of the entry which is important, not the phraseology. The grant of 'good' entry is of no satisfaction to the incumbent if it in fact makes him ineligible for promotion or has an ad-verse effect on his chances.[Para 10) [183-8-D]

1.3 The 'good' entry should have been communicated

to the appellant so as to enable him to make representa-tion praying that the said entry for the year 1993-94 should be upgraded from 'good' to 'very good'. After considering such representation it was open to the authority con-cerned to reject the representation and confirm the 'good' entry (though of course in fair manner), but at least an

opportunity of making such representation should have been given to the appellant, and that would only have been possible had the appellant been communicated the 'good' entry, which was not done in the instant case. Hence, the non-communication of the 'good' entry was arbitrary and hence illegal. [Para 11] [183-D-F]

Vijay Kumar vs. State of Maharashtra & Ors. 1988 (Supp) SCC 67 4; State of Gujarat & Anr vs. Suryakant Ch uni/a/ Shah 1999 (1) sec 529 - distinguished.

1.4 The non-communication of an entry in the A.C.R.

of public servant is arbitrary because it deprives the con-cerned employee from making representation against it and praying for its up-gradation. Every entry in the Annual Confidential Report of every employee under the State, 0 [whether he is in civil, judicial, police ][or ][other service (ex-]cept the military) must be communicated to him, within reasonable period, so as to enabl~ him to make repre-sentation against it. It makes no difference whether there is bench mark or not. Even if there is no bench mark, non-communication of an entry may adversely affect employee's chances of promotion (or getting some other benefit), because when comparative merit is being consid-ered for promotion (or some other benefit) person having 'good' or ·average' or 'fair' entry certainly has less chances of being selected than person having 'very good' or 'outstanding' entry. Moreover, object of writing the confi-dential report and making entries in them is to give an op-portunity to public servant to improve his performance. [Paras 13, 14 and 45] [184-C-F;G,H; 185-A-B]

Maneka Gandhi vs. Union of India & Anr AIR 1978 SC 597; State of UP vs. Yamuna Shankar Misra 1997 (4) SCC 7 referred to.

1.5 No rule or government instruction can violate Ar-ticle 14 or any other provision of the Constitution, as the Constitution is the highest law of the land. If the Office Memo-

randum dated 10/11.09.1987, is interpreted to mean that only

adverse entries (i.e. 'poor' entry) need to be communicated and not 'fair', 'average' or 'good' entries, it would become arbitrary (and hence illegal) since it may adversely affect the incumbent's chances of promotion, or get some other ben-efit. All similar Rules/Government Orders/Office Memoranda, in respect of all services under the State, whether civil, judi-cial, police, or other service (except the military), will hence also be illegal and are therefore liable to be ignored. [Paras 12 and 17] [183-H; 184-A, 185-A, 184-8]

1.6 Every entry in the A.C.R. of public servant must [c ]

be communicated to him within reasonable period, whether it is poor, fair, average, good or very good en-try. This is because non-communication of such an entry may adversely affect the employee in two ways: (1) Had the entry been communicated to him he would know about the assessmPnt of his work and conduct by his Sl'peri-ors, which would enable him to improve his work in tu-ture (2) He would have an opportunity of making repre-sentation against the entry if he feels it is unjustified, and pray for its upgradation. Hence non-communication of entry is arbitrary. Thus it is not only when there is bench mark but in all cases that an entry (whether it is poor, fair, average, good or very good) must be communicated to public servant, otherwise there is violation of the principle of fairness, which is the soul of natural justice. Even an outstanding entry should be communicated since that would boost the morale of the employee and make him work harder. [Paras 19 and 20] [186-C-F]Maneka Gandhi vs. Union of India & Anr. AIR 1978 SC 597; U. P Jal Nigam vs. Prabhat Chandra Jain AIR 1996 SC 1661; Bharat Petroleum Corporation Ltd. vs. N.R. Vairamani AIR 2004 SC 4778; Union of India & Anr. vs. S. K. Goel & Ors. AIR 2007 SC 1199 - referred to.

1.7 The rules of natural justice are not codified nor

are they unvarying in all situations, rather they are flex-ible. They may, however, be summarized in one word: fair-ness. In other words, what they require is fairness by the authority concerned. Of course, what is fair would depend on the situation and the context. The question to be asked [in every case to determine whether the rules ][of ][natural ]justice have been violated is: have the authorities acted fairly? [Paras 26 and 34] [188-D-E, 190-D]

A.K. Kraipak & ors v Union of India & ors AIR 1970 SC

150; K. I. Shephard & Ors. vs. Union of India & Ors. AIR 1988 SC 686; Kumaon Manda/ Vikas Nigam Ltd. vs. Girja Shankar Pant AIR 2001 SC 24; Union of India etc. vs. Tulsiram Patel etc. AIR 1985 SC 1416; Swadesh Cotton Mills etc. vs. Union of India etc. AIR 1981 SC 818; Mohinder Singh Gill & Anr vs. The Chief Election Commissioner & Ors. AIR 1978 SC 851; S.N. Mukherji vs. Union of India AIR 1990 SC 1984; Maneka Gandhi vs. Union of India AIR 1978 SC 597 - referred to.

vs. SC 686; Kumaon Manda/ Vikas Nigam Ltd. vs. Girja Shankar

Voinet vs. Barrett (1885) 55 L.J. QB 39; Russe// vs. Duke of Norfolk (1949) 1 All ER 109; Norwest Holst Ltd. vs. Secre-tary of State for Trade (1978) 1, Ch. 201 - referred to.

1.8 The natural sense of what is right and wrong tells

that it was wrong on the part of the respondent in not com-municating the 'good' entry to the appellant since he was thereby deprived of the right to make representation [against it, which ][if ][allowed would have entitled him to be ]considered for promotion to the post of Superintending Engineer. One may not have the right to promotion, but one has the right to be considered for promotion, and this right of the appellant was violated in the present case.

[[Para 28] [188-F-G] ]

1.9 Fair play required that the respondent should

have communicated the 'good' entry of 1993-94 to the appellant so that he could have an opportunity of making representation praying for upgrading the same so that

he could be eligible for promotion. Non-communication

of the said entry, was hence unfair on the part of the re-spondent and hence, arbitrary and violative of natural jus-tice, because in substance the 'good' entry operates as an adverse entry. [paras 25 and 36] [190-F-G; 188-C-D]

1.10 In the instant case, the principles of natural jus-

8 tice are being developed by holding that fairness and transparency in public administration requires that all entries (whether poor, fair, average, good or very good) in the ACR of public servant, whether in civil, judicial, police or any other State service (except the military), must be communicated to him within reasonable period so that he can make representation for its upgradation. This is the correct legal position even though there may be no Rule/G.0. requiring communication of the entry, or even if there is Rule/G.O. prohibiting it, because the principle of non-arbitrariness in State action as envisaged by Article 14 of the CC'nstitution requires such communicati,.,n. Ar-ticle 14 will override all rules or government orders. [Para 39] [191-C-E]

1.11 When the entry is communicated to him the pub-

lic servant should have right to make representation against the entry to the concerned authority, and the con-cerned authority must decide the representation in fair manner and within reasonable period. The representa-tion must be decided by an authority higher than the one who gave the entry, otherwise the likelihood is that the representation will be summarily rejected without ad-equate consideration as it would be an appeal from Cae-sar to Caesar. All this would be conducive to fairness and transparency in public administration, and would result in fairness to public servants. The State must be model employer, and must act fairly towards its employees. Only then would good governance be possible. The said di-rections would not apply to military officers because the position for them is different as clarified by this Court. But they will apply to employees of statutory authorities, public f-1

sector corporations and other instrumentalities of the State (in addition to Government servants). [Para 40 and 41] [191-F-H; 192-A-B]

Union of India vs. Major Bahadur Singh 2006 (1) SCC 368; Canara Bank vs. V K. Awasthy 2005 (6) SCC 321; State of Maharashtra vs. Public Concern for Governance Trust & Ors. 2007 (3) SCC 587 - referred to.

1.12 The appellant has already retired from service.

However, if his representation for upgradation of the 'good' entry is allowed, he may benefit in his pension and get some arrears. Hence it is directed that the 'good' en-try of 1993-94 be communicated to the appellant forthwith and he should be permitted to make representation against the same praying for its upgradation. If the upgradation is allowed, the appellant should be consid-0 ered forthwith for promotion as Superintending Engineer retrospectively dnd if he is promoted he will get the ben-efit of higher pension and the balance of arrears of pay along with 8% per annum interest. [Para 47] [193-C-E]

CIVILAPPELLATE JURISDICTION: Civil Appeal No. 7631 of 2002

From the final Judgment and Order dated 26.11.2001 of the Gauhati High Court in Writ Appeal No. 447 of 2001

M.T. George for the Appellant.

Ashok Bhan, Rekha Pandey, D.S. Mahra and Anil Katiyar for the Respondents.

The Judgment of the Court was delivered by

MARKANDEY KATJU, J. 1.This appeal by special leave has been filed against the impugned judgment of the Gauhati High Court dated 26.11.2001 in Writ Appeal No. 44 7 of 2001. By the aforesaid judgment the Division Bench of the Gauhati High Court dismissed the Writ Appeal of the appellant filed against the judgment of the Learned Single Judge dated

21.8.2001.

2. Heard learned counsel for the parties and perused the record.

3. The appellant was in the seNice of the Border Roads

Engineering SeNice which is governed by the Border Roads Engineering SeNice Group 'A' Rules, as amended. As per these rules, since the appellant was promoted as Executive Engineer on 22.2.1988, he was eligible to be considered for promotion to the post of Superintending Engineer on completion of 5 years on the grade of Executive Engineer, which he completed on 21.2.1993. Accordingly the name of the appellant was included in the list of candidates eligible for promotion.

4. The Departmental Promotion Committee (DPC) held

its meeting on 16.12.1994. In that meeting the appellant was not held to be eligible for promotion, but his juniors were se-lected and promoted to the rank of Superintending Engineer. Hence the appellant filed Writ Petition before the Gauhati High Court which was dismissed and his appeal before the Division Bench also failed. Aggrieved, this appeal has been filed by special leave before this Court.

5. The stand of the respondent was that according to para

6.3(ii) of the guidelines for promotion of departmental candi-dates which was issued by the Government of India, Ministry of Public Grievances and Pension, vide Office Memorandum dated 10.4.1989, for promotion to all posts which are in the pay scale of Rs.3700-5000/- and above, the bench mark grade should be 'very good' for the last five years before the D.P.C .. In other words, only those candidates who had 'very good' entries in their Annual Confidential Reports (AC Rs) for the last five years would be considered for promotion. The post of Superintend-ing Engineer carries the pay scale of Rs.3700-5000/- and since the appellant did not have 'very good' entry but only 'good' entry for the year 1993-94, he was not considered for promotion to the post of Superintending Engineer.

[2008] 8 S.C.R.

6. The grievance of the appellant was that he was not com-

municated the 'good' entry for the year 1993-94. He submitted that had he been communicated that entry he would have had an opportunity of making representation for upgrading that entry from 'good' to 'very good', and if that representation was allowed he would have also become eligible for promotion. Hence he submits that the rules of natural justice have been violated.

7. In reply, learned counsel for the respondent submitted

that 'good' entry is not an adverse entry and it is only an ad-C verse entry which has to be communicated to an employee. Hence he submitted that trere was no illegality in not communi-cating the 'good' entry to the appellant.

8. Learned counsel for the respondent relied on deci-

sion of this Court in Vijay Kumar vs. State of Maharashtra & Ors. 1988 (Supp) sec 674 in which it was held that an un-communicated adverse report should not form the founc.:ation to deny the benefits to government servant when similar ben-efits are extended to his juniors. He also relied upon decision of this Court in State of Gujarat & Anr vs. Suryakant Chunila/ Shah 1999 (1) SCC 529 in which it was held:

"Purpose of adverse entries is primarily to forewarn the government servant to mend his ways and to improve his performance. That is why, it is required to communicate the adverse entries so that the government servant to whom the adverse entry is given, may have either opportunity to explain his conduct so as to show that the adverse entry was wholly uncalled for, or to silently brood over the matter and on being convinced that his previous conduct justified such an entry, to improve his performance".

On the strength of the above decisions learned counsel for the respondent submitted that only an adverse entry needs to be communicated to an employee.

9. We do not agree. In our opinion every entry must be

communicated to the employee concerned, so that he may have an opportunity of making representation against it if he is ag-grieved.

10. In the present case the bench mark (i.e. the essential

requirement) laid down by the authorities for promotion to the 8 post of Superintending Engineer was that the candidate should have 'very good' entry for the last five years. Thus in this situa-tion the 'good' entry in fact is an adverse entry because it elimi-nates the candidate from being considered for promotion. Thus, nomenclature is not relevant, it is the effect which the entry is having which determines whether it is an adverse entry or not. It is thus the rigours of the entry which is important, not the phrase-ology. The grant of 'good' entry is of no satisfaction to the incumbent if it in fact makes him ineligible for promotion or has an adverse effect on his chances.

11. Hence, in our opinion, the 'good' entry should have been [D ]

communicated to the appellant so as to enable him to make representation praying that the said entry for the year 1993-94 should be upgraded from 'good' to 'very good'. Of course, after considering such representation it was open to the authority concerned to reject the representation and confirm th,e 'good' entry (though of course in fair manner}, but at least an oppor-tunity of making such representation should have been given to the appellant, and that would only have been possible had the appellant been communicated the 'good' entry, which was not done in this case. Hence, we are of the opinion that the non-communication of the 'good' entry was arbitrary and hence ille-gal, and the decisions relied upon by the learned counsel for the respondent are distinguishable.

12. Learned counsel for the respondent submitted that under the Office Memorandum 21011/4/87 [Estt.'A'] issued by the Ministry of Personnel/Public Grievance and Pensions dated 10/11.09.1987, only an adverse entry is to be communicated to the concerned employee. It is well settled that no rule or gov-ernment instruction can violate Article 14 or any other provision

of the Constitution, as the Constitution is the highest law of the land. The aforesaid Office Memorandum, if it is interpreted to mean that only adverse entries are to be communicated to the concerned employee and not other entries, would in our opin-ion become arbitrary and hence illegal being violative of A1iicle 14. All similar Rules/Government Orders/Office Memoranda, in respect of all services under the State, whether civil, judicial, police, or other service (except the military), will hence also be illegal and are therefore liable to be ignored.

13. It has been held in Maneka Gandhi vs. Union of India

& Anr Al R 1978 SC 5Sl7 that arbitrariness violates Article 14 of the Constitution. In our opinion, the non-communication of an entry in the A.C.R. of public servant is arbitrary because it deprives the concerned employee from making representa-tion against it and praying for its up-gradation. In our opinion, 0 every entry in the Annual Confidential Report of every employee under the State, whether he is in civil, judicial, police or other service (except the military) must be communicated to him, so as to enable him to make representation against it, because non-communication deprives the employee of the opportunity of making representation against it which may affect his chances of being promoted (or get some other benefits). More-over, the object of writing the confidential report and making entries in them is to give an opportunity to public servant to improve his performance, vide State of UP vs Yamuna Shankar Misra 1997 (4) SCC 7. Hence such non-communica-tion is, in our opinion, arbitrary and hence violative of Article 14 of the Constitution.14. In our opinion, every entry (and not merely poor or

adverse entry) relating to an employee under the State or an instrumentality of the State, whether in civil, judicial, police or other service (except the military) must be communicated to him, within reasonable period, and it makes no difference whether there is bench mark or not. Even if there is no bench mark, non-communication of an entry may adversely affect the employee's chances of promotion (or getting some other ben-

DEV DUTT v. UNION OF INDIA & ORS. [MARKANDEY KATJU, J.)

efit), because when comparative merit is being considered for

promotion (or some other benefit) person having 'good' or 'average' or 'fair' entry certainly has less chances of being se-lected than person having 'very good' or 'outstanding' entry.

15. In most services there is gradation of entries, which

is usually as follows:

(i) Outstanding

(ii) Very Good

(iii) Good

(iv) Average

(v) Fair

(vi) Poor

. person getting any of the entries at items (ii) to (vi) should be communicated the entry so tha.t he has an opportunity of making representation praying for its upgradation, and such representation must be decided fairly· and within reason· able period by the concerned authority.

16. If we hold that only 'poor' entry is to be communicated,

the consequences may be that persons getting 'fair', 'average', 'good' or 'very good' entries will not be able to represent for its upgradation, and this may subsequently adversely affect their chances of promotion (or get some other benefit).

17. In our opinion if the Office Memorandum dated 10/

11.09.1987, is. interpreted to mean that only adverse entries (i.e. 'poor' entry) need to be communicated and not 'fair', 'aver-age' 'or 'good' entries, it would become arbitrary (and hence illegal) since it may adversely affect the incumbent's chances [G ]of promotion, or get some other benefit.

18. For example, if the bench mark is that an incumbent must have 'very good' entries in the last five years, then if he has 'very good' (or even 'outstanding') entries for four years,

'good' entry for only one year may yet make him ineligible for promotion. This 'good' entry may be due to the personal pique of his superior, or because the superior asked him to do some-· thing wrong which the incumbent refused, or because the in-' cumbent refused to do sycophancy of his superior, or because of caste or communal prejudice, or for some other extraneous consideration.

19. In our opinion, every entry in the A. C.R. of public servant must be communicated to him within reasonable pe-riod, whether it is poor, fair, average, good or very good entry. This is because non-communication of such an entry may ad-versely affect the employee in two ways : (1) Had the entry been, communicated to him he would know about the assessment of his work and conduct by his superiors, which would enable him to improve his work in future (2) He would have an opportunity of making representation against the entry if he feels it is un-justified, and pray for its upgradation. Hence ron-communica-tion of an entry is arbitrary, and it has been held by the Constitu-tion Bench decision of this Court in Maneka Gandhi vs. Union of India (supra) that arbitrariness violates Article 14 of the Con-

stitution.

20. Thus it is not only when there is bench mark but in all cases that an entry (whether it is poor, fair, average, good or' very good) must be communicated to public servant, other-wise there is violation of the principle of fairness, which is the soul of natural justice. Even an outstanding entry should be com-municated since that would boost the morale of the employee and make him work harder.

21. Learned counsel for the respondent has relied on the decision of this Court in U. P Jal Nigam vs Prabf1at Chandra Jain AIR 1996 SC 1661. We have perused the said decision, which is cryptic and does not go into details. Moreover it has not noticed the Constitutior. Bench decision of this CJurt in Manaka Gandhi vs. Union of India (supra) which h<''" i:eld that all State action must be .on-arbitrary, otherwise Article t14 of

& ORS. [MARKANDEY KAT JU, J.]

· the Constitution will be violated. In our opinion the decision in U.P. Jal Nigam (supra) cannot be said to have laid down any legal principle that entries need not be communicated. As ob-served in Bharat Petroleum Corporation Ltd. vs. N.R. Vairamani AIR 2004 SC 4778 (vide para 9):

"Observations of Courts are neither to be read as Euclid's Theorems nor as provisions of the statute, and that too, taken out of their context".

22. In U.P. Jal Nigam's case (supra) there is only stray observation "if the graded entry is of going step down, like falling from 'very good' to 'good' that may not ordinarily be an adverse entry since both are positive grading". There is no discussion about the question whether such 'good' grading can also have serious adverse consequences as it may virtually elimi-nate the chances of promotion of the incumbent if there is benchmark requiring 'very good' entry. And even when there is nc. benchmark, such downgrading can have serious adverse effect on an incumbent's chances of promotion where compara-tive merit of several candidates is considered.

23. Learned counsel for the respondent also relied upon the decision of this Court in Union of India & Anr vs. S. K. Goel & Ors. AIR 2007 SC 1199 and on the strength of the same sub-mitted that only an adverse entry need be communicated to the incumbent. The aforesaid decision is 2-Judge Bench deci-sion and hence cannot prevail over the 7-Judge Constitution Bench decision of this Court in Maneka Gandhi vs. Union of India (supra) in which it has been held that arbitrariness vio-lates Article 14 of the Constitution. Since the aforesaid deci-sion in Union of India vs. S.K. Goel (supra) has not considered the aforesaid Constitution Bench decision in Maneka Gandhi's case (supra), it cannot be said to have laid down the correct law. Moreover, this decision also cannot be treated as Euclid's formula since there is no detailed discussion in it about the ad-verse consequences of non-communication of the entry, and the consequential denial of making representation against it.

24. It may be mentioned that communication of entries and giving opportunity to represent against them is particularly im-portant on higher posts which are in pyramidical structure where often the principle of elimination is followed in selection for promotion, and even single entry can destroy the career of an officer which has otherwise been outstanding throughout. This often results in grave injustice and heart-burning, and may shatter the morale of many good officers who are superseded due to this arbitrariness, while officers of inferior merit may be promoted.

25. In the present case, the action of the respondents in not communicating the 'good' entry for the year 1993-94 to the appellant is in our opinion arbitrary and violative of natural jus-tice, because in substance the 'good' entry operates as an ad-verse entry (for the reason given above).

26. What is natural justice? The rules of natural justice are not codified nor are they unvarying in all situations, rather they are flexible. They may, however, be summarized in one word : fairness. In other words, what they require is fairness by the authority concerned. Of course, what is fair would depend on the situation and the context.

27. Lord Esher M.R. in Voinet vs. Barrett (1885) 55 L.J. QB 39, 39 observed: "Natural justice is the natural sense of what is right and wrong."

28. In our opinion, our natural sense of what is right and wrong tells us that it was wrong on the part of the respondent in not communicating the 'good' entry to the appellant since he was thereby deprived of the right to make representation against it, which if allowed would have entitled him to be con-G sidered for promotion to the post of Superintending Engineer. One may not have the right to promotion, but one has the right to be considered for promotion, and this right of the appellant was violated in the present case.

29. large number of decisions of this Court have discussed

& ORS. [MARKANDEY KATJU, J.]

the principles of natural justice and it is not necessary for us to go

into all of them here. However, we may consider few.

30. Thus, in A. K. Kraipak & Ors. vs. Union of India & Ors.

AIR 1970 SC 150, Constitution Bench of this Court held :

"The concept of natural justice has undergone great deal of change in recent years. In the past it was thought that it included just two rules, namely (1) no one shall be judge in his own cause (Nemo debet csse judex propria causa), and (2) no decision shall be given against party without affording him reasonable hearing (audi alteram partem). Very soon thereafter third rule was envisaged and that is that quasi-judicial enquiries must be held in good faith, without bias and not arbitrarily or unreasonably. But in the course of years many more subsidiary rules came to be added to the rules of natural justice".

(emphasis supplied)

31. The aforesaid decision was followed by this Court in K. I. Shephard & Ors. vs. Union of India & Ors. AIR 1988 SC 686 (vide paras 12-15). It was held in this decision that even administrative acts have to be in accordance with natural jus-tice if they have civil consequences. It was also held that natu-ral justice has various facets and acting fairly is one of them.

32. In Kumaon Manda/ Vikas Nigam Ltd. vs. Girja Shankar Pant AIR 2001 SC 24, this Court held (vide para 2):

The doctrine (natural justice) is now termed as synonym of fairness in the concept of justice and stands as the most accepted methodology of governmental action".

(emphasis supplied)

33. In the same decision it was also held following the decision of Tucker, LJ in Russell vs. Duke of Norfolk (1949) 1 All ER 109:

"The requirement of natural justice must depend on the

circumstances of the case. the nature of the enquiry, the rules under which the tribunal is acting, the subject-matter that is being dealt with, and so forth".

34. In Union of India etc. vs. Tulsiram Patel etc. AIR 1985 SC 1416 (vide para 97) Constitution Bench of this Court referred to with approval the following observations of Ormond, L.J. in Norwest Holst Ltd. vs. Secreta0; of State for TJ-ade (1978) 1, Ch. 201 :

"The House of Lords and this court have repeatedly emphasized that the ordinary principles of natural justice must be kept flexible and must be adapted to the circumstances prevailing in any particular case".

(emphasis supplied)

Thus, it is well settled that the rules of natural justice are flexible. The question to be asked in every case to determine whether ihe rules of natural justice have been viola Led is : have the authorities acted fairly?

35. In Swadesh Cotton Mills etc. vs. Union of India etc. AIR 1981 SC 818, this Court following the decision in Mohinder Singh Gill & Anr vs. The Chief Election Commissioner & Ors. AIR 1978 SC 851 held that the soul of the rule (natural justice) is fair play in action

36. In our opinion, fair play required that the respondent should have communicated the 'good' entry of 1993-94 to the appellant so that he could have an opportunity of making rep-resentation praying for upgrading the same so that he could be eligible for promotion. Non-communication of the said entry, in our opinion, was hence unrair on the part of the respondent and hence violative of natural justice.

37. Originally there were said to be only two principles of natural justice : (1) the rule against bias and (2) the right to be heard (audi alteram partem). However, subsequently, as noted in A.K. Kraipak's case (supra) and K.L. Shephard's case (su-

pra), some more rules came to be added to the rules of natural justice, e.g. the requirement to give reasons vide S.N. Mukherji vs. Union of India AIR 1990 SC 1984. In Maneka Gandhi vs. Union of India (supra) (vide paragraphs 56 to 61) it was held that natural justice is part of Article 14 of the Constitution.

38. Thus natural justice has an expanding content and is not stagnant. It is therefore open to the Court to develop new prif)ciples of natural justice in appropriate cases.·

39: In the present case. we are developing the principles

of natural justice by holding that fairness and transparency in public administration requires that all entries (whether poor, fair, average, good or very good) in the Annual Confidential Report of public servant, whether in civil, judicial, police or any other State service (except the military), must be communicated to him within reasonable period so that he can make repre-D sentation for its upgradation. This in our opinion is the correct. legal pc.>ition even though there may be no Rule/G.O. requiring communication of the entry, or even if there is Rule/G.O. pro-hibiting it, because the principle of non-arbitrariness in State action as envisaged by Article 14 of the Constitution in our opin-ion requires such communication. Article 14 will override all rules or government orders.

40. We further hold that when the entry is communicated to

him the pub\jc servant should have right to make representa-tion against the entry to the concerned authority, and the con-cerned authority must decide the representation in fair manner and within reasonable period. We also hold that the represen-tation must be decided by an authority higher than the one who gave the entry, otherwise the likelihood is that the representation will be summarily rejected without adequate consideration as it would be an appeal from Caesar to Caesar. All this would be conducive to fairness and transparency in public administration, and would result in fairness to public servantS. The shte must ~e model employer, and must act fairly towards its employees. Only then would good governance be possible.

41. We, however, make it clear that the above directions will

not apply to military officers because the position for them is differ-ent as clarified by this Court in Union of India vs. Major Bahadur Singh 2006 (1) SCC 368. But they will apply to employees of statutory authorities, public sector corporations and other instru-B mentalities of the State (in addition to Government servants).

42. In Canara Bank vs. II. K. Awasthy 2005 (6) SCC 321,

this Court held that the concept of natural justice has undergone great deal of change in recent years. As observed in para 8 of the said judgment:

"Natural justice is another name for common-sense justice. Rules of natural justice are not codified canons. But they are principles ingrained into the conscience of inan. Natural justice is the administration of justice in common-sense liberal way. Justice is based substantially on natural ideals and human values·.

43. In para 12 of the said judgment it was observed:

"What is meant by the term "principles of natural justice• · is not easy to determine. Lor~ Summer (then Hamilton, L.J.) in R. v. Local Govt. Board (1914) 1 KB 160:83 LJKB 86 described the phrase as sadly lacking in precision. In General Council of Medical Education & Registration of . U.K. v. Spackman (1943) AC 627: (1943) 2 Ali ER 337, ·Lord Wright observed that it was not desirable to attempt ·"to force it into a_ny Procrustean bed".

44. Jn State of Maharashtra vs. Public Concem fc?rGovemance

Trust & Ors. 2007 (3) ~CC 587, it was observed (vide para 39):

~· . "In our opinion, when an authority takes decision which may have civil consequences and affects the rights of person, · the principles of naturaljustice wou!d at once come into play".

45. In our opinion, r.on-communication of entries in the Annual Confidential Report of public servant, whether he is in civil, judicial, police or any other service (other than the mili-

& ORS. [MARKANDEY KAT JU, J.]

> · tary}, certainly has civil consequences because it may affect his chances for promotion or get other benefits (as already dis-cussed above). Hence, such non-communication would bear-bitrary, and as such violative of Article 14 of the Constitution.

46. In view of the above, we are of the opinion that both the learned Single Judge as well as the learned Division Bench erred in law. Hence, we set aside the judgment of the Learned > Single Judge as well as the impugned judgment of the learned Division Bench. · · ·

47. We are informed that the appellant has already retired

from service. However, if his representation for upgradation of the 'good' entry is allowed, he may benefit in his pension and get some arrears. Hence we direct that the 'good' entry of 1993-94 be communicated to the appellant forthwith and he should be permitted to make representation against the same pray-ing for its upgradation. If the upgradation is allowed, the appel-lant should be considered forthwith for promotion as Superin-tending Engineer retrospectively and if he is promoted he will get the benefit of higher pension and the balance of arrears of pay along with 8% per annum interest.

· 48. We, therefore, direct that the 'good' entry be commu-

' nicated to the appellant within period of two months from the . dale of receipt of the copy of this judgment. On being commu-

,. nicated, the appellant may make the representation, if he so chooses, against the said entry within two months thereafter and the.said representation will be decided within two months thereafter. If his entry is upgraded the appellant shall be con-sidered for promotion retrospectively by the Departmental Pro-motion Committee (DPC} within three months_ thereafter and if the appellant gets selected for promotion retrospectively, he should be given higher pension with arrears of pay and interest )@ 8% per annum till the date of payment. ·

49. With these observations this appeal is allowed. No costs.

Appeal allowed.