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PARBODH SAGAR versus PUNJAB STATE ELECTRICITY BOARD AND ORS.

Citation: [2000] 3 S.C.R. 866 · Decided: 01-05-2000 · Supreme Court of India · Bench: S.B. MAJMUDAR · Disposal: Dismissed

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Judgment (excerpt)

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PARBODH SAGAR 
v. 
PUNJAB STATE ELECTRICITY BOARD AND ORS. 
MAY 1, 2000 
[S.B. MAJMUDAR AND UMESH C. BANERJEE, JJ.] 
Service Law : 
Compulsory Retirement-Employee-Unsatisfactory service records-
Tendency to reso11 to unsuccessful litigations-Premature retirement on attain-
ing the age of 50 years in public interest-Validity of-Held, employee had 
become a liability than an asset to the employer-Employer has power under 
the Regulations to retire an employee in public interest-Order of premature 
retirement upheld-Punjab State Electricity Board Services (Premature Retire-
ment) Regulations 1982-Regulation 3(i)(e). 
'Malafide'-Allegations of-Held, there cannot be any set guidelines for 
proof of malafides-It has to be appreciated from the facts and records of each 
case-Mere averments not sufficient-Factual suppon penaining to allega-
tions must. 
Words & Phrases : 
'Malafides'-Meaning of 
Appellant was working as Senior Accounts Officer with Respondent-
Board. His service record though initially "good'' but subsequently started 
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deteriorating to "average" "just average" and lastly "poor''. Appellant 
umuccessfully filed several litigations against the Board challenging his 
stoppage of increments, supersession etc. etc. Respondent-Board passed an 
order prematurely retiring him on attaining the age of 50 years under 
Regulation 3(i)(e) of the Punjab State Electricity Board Services (prema-
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ture retirement) Regulations, 1982. Appellant's Writ petition challenging 
the said order was dismissed by High Court. Hence the present appeal. 
On behalf of appellant, it was contended that the order of compul-
sory retirement was passed 'malfidely', and the member, Finance & Acยท 
counts who passed the orders was not a competent authority to exercise 
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the power. 
866 
PARBODH SAGAR v. PUNJAB STATE ELECTRICITY BOARD 
867 
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Dismissing the appeal, the Court 
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HELD: 1.1. Respondent-Board has power under Regulation 3(i)(e) 
of the Punjab State Electricity Board Services (Premature Retirement) 
Rules, 1982 to retire an employee in public interest. Thus, Respondent-
Board was justified in prematurely retiring the appellant from senice on 
attaining the age of 50 years in public interest. [878-E-F] 
B 
..... 
1.2. Not only there has been a steady decline in appellant's progress 
as would be appearing from the annual Confidential Report but he was 
indulging in litigation against the Company one after the other. Instead of 
improving his capability as an employee of the Board so that the Board c 
could obtain maximum benefit from out of his services, his litigations spirit 
prevailed upon him. Thus, appellant become a liability to the Board than 
an asset. In such a situation an employer is at liberty to take appropriate 
steps including cessation of employer-employee relationship. 
[874-G-H; 877-E-F; H; 878โ€ขA] 
2. The expression 'malafide) is not a meaningless Jargon and it has its 
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proper connotation. Malice or malafides can only be appreciated from the 
records of the case in the facts of each case. There cannot possibly be any 
set guidelines in r,egard to the proof of malafides. Malafides, where it is 
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alleged, depends upon its own facts and circumstances. There must be 
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factual support pertaining to the allegation of malafides. Mere user of the 
word 'malafide' would not by itself make it established. The Court must 
scan the factual aspect and come to its own conclusion. In the instant case, 
tampering of Annual Confidential Reports have been alleged but there is 
no evidence in that regard to come to the conclusion of malafides. Thus on 
facts, the allegation of malafides is unsustainable. [877-G-H; 878-B-C] 
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3. Chairman of the Board in exercise of his powers is terms of Rule 14 
of the Punjab State Electricity Board (Chairman's Powers) Rules, 1959 had 
prescribed the functions and duties of the members of the Board including 
the member, Finance & Accounts. Item 6 of the said allocation provides that 
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all disciplinary cases of Dy. Chief Auditors, Dy. Finance Advisors, Sr. ACs. 
& A Os. ought to be considered by the Member, Finance & Accounts. Fur-
ther, only on the recommendation of the High Power Committee, appellant 
was prematurely retired from service. Thus, the contention of the appellant 
that the order of retirement was passed in unauthorized exercise of power 
cannot be accepted. [870-F-H; 871-A-G; 872-F-G] 
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868 
SUPREME COURT REPORTS 
[2000] 3 S.C.R. 
CIVIL APPELLATE

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