RAJASTHAN STATE ROAD TRANSPORT CORP. & ORS. versus BABU LAL JANGIR

Citation: [2013] 11 S.C.R. 159 · Decided: 16-09-2013 · Supreme Court of India · Bench: K.S. RADHAKRISHNAN · Disposal: Appeal(s) allowed
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Judgment (excerpt)

[2013) 11 S.C.R. 159 
RAJASTHAN STATE ROAD TRANSPORT CORP. & ORS. 
A 
V. 
BABU LAL JANGIR 
(Civil Appeal No. 8245 of 2013) 
SEPTEMBER 16, 2013 
B 
[K.S. RADHAKRISHNAN AND A.K. SIKRI, JJ.] 
Service Law - Retirement - Compulsory retirement -
Respondent working in appellant-transport Corporation 
compulsorily retired from service in the year 2002 - Writ 
C 
Petition - High Court held that the acts of misconduct pointed 
out against the respondent pertained to a period more than 
12 years before his compulsory retirement and it was unjust, 
unreasonable and arbitrary to retire the respondent 
prematurely on the basis of old and stale material pertaining o 
to the period 1978-1990 -
Quashing of the order of 
compulsory retirement of respondent - Justification - Held: 
The entire service record is relevant for deciding as to whether 
the government servant needs to be eased out prematurely 
- However, at the same time, subsequent record is also 
E 
relevant, and immediate past record, preceding the date on 
which decision is to be taken would be of more value, 
qualitatively -
What is to be examined is the "overall 
performance" on the basis of "entire service record" to come 
to the conclusion as to whether the concerned employee has 
become a deadwood and it is public interest to retire him 
compulsorily - On facts, insofar as period 1978-1990 is 
concerned, the respondent was charge sheeted in 19 cases 
- In few cases he was exonerated and in some other cases 
F 
he was given minor penalty which projects a dis17Jal picture -
Even the service record after 1990 i.e. in last 12 years 
G 
preceding the order of retirement does not depict a rosy 
picture - In any case, nothing to show the performance of 
respondent became better during this period - Order of 
159 
H 
160 
SUPREME COURT REPORTS 
[2013) 11 S.C.R. 
A compulsory retirement accordingly upheld -
Industrial 
Employment (Standing Orders) Act, 1946 - Rajasthan State 
Road Transport Workers and workshop Employees Standing 
Orders, 1965 - r.18-D. 
Service Law - Retirement - Compulsory retirement -
8 Nature of - Scope for judicial review - Held: The order of 
compulsory retirement is neither punitive nor stigmatic - It is 
based on subjective satisfaction of the employer and a very 
limited scope of judicial review is available in such cases -
Interference is permissible only on the ground of non 
C application of mind, malafide, perverse, or arbitrary or if there 
is non-compliance of statutory duty by the statutory authority 
- Power to retire compulsorily, the government servant in 
terms of service rule is absolute, provided the authority 
concerned forms a bonafide opinion that compulsory 
D retirement is in public interest. 
Service Law - Retirement - Compulsory retirement -
Considerations for - Entire service record - If to be looked at 
- Adverse entries - Relevance of - Held: After promotion of 
E an employee, the adverse entries prior thereto have no 
relevance and can be treated as wiped off when the case of 
the employee is to be considered for further promotion -
However, this 'washed off theory' has no application when case 
of an employee is assessed to determine whether he is fit to 
be retained in service or requires to be given compulsory 
F retirement - The rationale is that since such an assessment 
is based on "entire service record': there is no question of not 
taking into consideration earlier old adverse entries or record 
of the old period - While such a record can be taken into 
consideration, at the same time, the service record of the 
G immediate past period are to be given due credence and 
weightage. 
The Respondent worked in appellant-Rajasthan State 
Road Transport Corporation. The appellant had framed 
H Standing Orders for its employees known as the 
RAJASTHAN STATE ROAD TRANSPORT CORP. v. 
161 
BABU LAL JANGIR 
Rajasthan State Road Transport Workers and workshop 
A 
Employees Stan_ding Orders, 1965. There was 
amendment in these Standing Orders and certain new 
clauses under rule 18, were inserted introducing the 
provision of compulsory and voluntary retirement. The 
clauses pertaining to compulsory retirement. gives the 
B 
app~llant-Corporation absolute right to :retire any 
employee after he attains the age of 50 y•ars or on 
completion of 25 years service whichever is earlier. 
A Screening Committee was consti(uted by the C 
appellant-Corporation to look into the conduct and 
continuance of four employees incl~Jling the responde
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