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U.P. JAL NIGAM AND ORS. versus PRABHA T CHANDRA JAIN AND ORS.

Citation: [1996] 1 S.C.R. 1118 · Decided: 31-01-1996 · Supreme Court of India · Bench: M.M. PUNCHHI, K.S. PARIPOORNAN · Disposal: Dismissed

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Judgment (excerpt)

A 
U.P. JAL NIGAM AND ORS. 
v. 
PRABHA T CHANDRA JAIN AND ORS. 
JANUARY 31, 1996 
B 
[M.M. PUNCHHI AND K.S. PARIPOORNAN, JJ.J 
Service Law : 
Annual Confidential Report~System of recording-Downgrading 
C enflies in confidential rep01t~Employer U.P. Jal Nigam taking a plea that 
both entries not adverse entries and hence not conununicated to the 
employe<:-Plea n1111ed down by the High Cowt-On appeal held, reasons to 
be recorded for downgrading and employee infonned of the charge in the fonn 
of an advic<:-When downgrading is reflected by compaiison without giving 
reason, it cannot be sustained. 
D 
CIVIL APPELLATE JURISDICTION: Special Leave Petition (C) 
No. 16988 of 1995. 
From the Judgment and Order dated 1.5.95 of the Allahabad High 
E Court in W.P. No. 2244 (S/S) of 1994. 
F 
Rajeev Dhawan, R.B. Misra, Sudhansu, M.K. Roy and K. Misra for 
the Petitioners. 
S.C. Maheshwari and R.K. Jain, Ajay Bhalla, P.K. Chakraborty and 
Ms. Prabha Jain for the Respondents. 
The following Order of the Court was delivered : 
What we say in this order shall not only cover the case of the first 
respondent but shall also regulate the system of recording annual confiden-
G tial reports prevalent in the U.P. Jal Nigam - the first petitioner herein. 
The first respondent was down graded at a certain point of time to 
which the Service Tribunal gave a correction. Before the High Court, the 
petitioners' plea was that down grading entries in confidential reports 
cannot be termed as adverse entries so as to obligate the Nigam to 
H communicate the same to the employee and attract a representation. This 
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I 
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U.P. JAL NIGAM 1•. P.C. JAIN 
1119 
argument was turned down by the High Court, as in its view confidential A 
reports, were assets of the employee, since they weigh to his advantage at 
the promotional and extensional stages of service. The High Court to justify 
its view has given an illustration that if an employee legitimately had earned 
an 'outstanding' report in a particular year \vhich, in a succeeding one, and 
without his knowledge, is reduced to the level of 'satisfactory' without any 
communication to him, it would certainly be adverse and effect him at one 
or the other stage of his career. 
We need to explain these observations of the High Court. The Nigam 
has rules, whereunder an adverse entry is required to be communicated to 
B 
the employee concerned, but not down grading of an entry. It has been 
urged on behalf of the Nigam that when the nature of the entry does not 
reflect any adverseness that is not required to be communicated. As we 
view it the extreme illustration given by the High Court may reflect an 
adverse element compulsorily communicable, but if the graded entry is of 
going a step down, like falling from 'very good' to 'good' that may not 
ordinarily be an adverse entry since both are a positive !,'fading. All what D 
is required by the Authority recording confidentials in the situation is to 
record reasons for such down grading on the personal file of the officer 
concerned, and inf arm him of the change in the form of an advice. If the 
variation warranted be not permissible, then the very purpose of writing 
annual confidential reports would be frustrated. Having achieved an op-
timum level the employee on his part may slacken in his work, relaxing 
secure by his one time achievement. This would be an undesirable situation. 
c 
E 
All the same the sting of adverseness must, in all events, be not reflected 
in such variations, as otherwise they shall be communicated as such. It may 
be emphasised that even a positive confidential entry in a given case can 
previously be adverse and to say that an adverse eniry should always be 
qualitatively damaging may not be true. In the instant case we have seen 
the service record of the first respondent. No reason for the change is 
mentioned. The down grading is reflected by comparison. This cannot 
sustain. Having explained in this manner the case of the first respondent 
F 
and the system that should prevail in the Jal Nigam, we do not find any 
difficulty in accepting the ultimate result arrived at by the High Court. 
G 
The special leave petition is, therefore, dismissed. 
G.N. 
Petition dismissed.