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UNION OF INDIA AND ORS. ETC. ETC. versus M. BHASKARAN, ETC. ETC.

Citation: [1995] SUPP. 4 S.C.R. 526 · Decided: 30-10-1995 · Supreme Court of India · Bench: B.P. JEEVAN REDDY · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A 
UNION OF INDIA AND ORS. ETC. ETC. 
v. 
M. BHASKARA..1\1, ETC. ETC. 
OCTOBER 30, 1995 
B 
[B.P. JEEVAN REDDY AND S.B. MAJMUDAR, JJ.] 
S e1Vice Law : 
Rule 3(J)(i) and (iii}-Railway Se1Vices (Conduct) Rules, 1966. 
c 
Removal from se1Vice-Workmen obtaining employment in Railway 
se1Vice on the basis of bogus and forged casual labourer se1Vice cards--Fraud 
detected by Railway authorities-Orders of removal from service 
passed-Central Administrative Tribunal ordering reinstatement of the 
employees-On appeal held-Even independently of the Rule such 
D fraudulently obtained appointment orders could be legitimately treated as 
voidable by the employer and could be recalled by the employer-Merely 
because such employees had continued in se1Vice for number of years on the 
basis of such fraudulently obtained employment orders cannot create any 
equity in their favour or any estoppel against the employei-<Jrders of 
E 
Tribunal set aside. 
The respondent-workmen obtained employment in Railway service 
on the basis of bogus and forged casual labourer service cards. The 
Railway authorities detected the fraud and removed them from service. 
They approached the Central Administrative Tribunal which ordered their 
F 
reinstatement with all consequential benefits. Hence these appeals. 
G 
Allowing the appeals, this Court 
HELD : 1. The unauthenticity of the service cards on the basis of 
which the respondents got employment is clearly established on record of 
the departmental enquiry held against the concerned employees. Conse-
qnently, respondents were guilty of misrepresentation and fraud per-
petrated on the appellant-employer while getting employed in Railway 
Service and had snatched such employment which would not have been 
made available to them if they were not armed with such bogus and forged 
H 
labourer cards. (530-B-C] 
526 
U.O.l. v. M. BH/\SKARAN IS.B. M/\JMUDAR. J.] 
527 
2. Once such fraud is detected, the appointment orders themselves A 
\Vhich "'ere found to be tainted and vitiated by fraud and acts of cheating 
on the part of en1ployees, were liable to be recalled and \\Β·ere at least 
voidable at the option of the en1ployer concerned. This is precisely \\'hat 
has happened in the present case. The respondents \\'ere proceeded against 
in departmental enquiries and were called upon to have their say and B 
thereafter have been removed from service. Such orders of removal would 
amount to recalling of fraudulently obtained erroneous appointment or-
ders which were avoided by the employer-appellant after following the due 
procedure of law and complying with the principles of natural justice. 
Therefore, even independently of Rule 3(1) (i) and (iii) of the Rules, such 
fraudulently obtained appointment orders could be legitimately treated as 
voidable at the option of the employer and could be recalled by the 
employer and in such cases merely because the respondent-employees have 
continued in service for number of years on the basis of such fraudulently 
obtained employment orders cannot create any equity in their favour or 
c 
any estoppel against the employers. [530-E-H) 
D 
District Collector & Chainnan, Vizianagarani Social Welfare Residen-
tial School Society, Vizianagaram & Anr. v. M. T1ipura Sundwi Devi, [1990) 
3 sec 655, relied on. 
3. It cannot be said that the appellants are estopped from recalling 
such fraudulently obtained employment orders of the respondents subject 
of course to following due procedure of law and in due compliance with 
the principles or natural justice, on which aspect there is no dispute 
beh\'een the parties. lf' any lenient vi~\V is taken on the facts of the present 
case in favour of the respondents then it \\'ould amount to putting premium 
on dishonesty and sharp practice which on the facts of the present cases 
cannot be permitted. [532-A-B) 
E 
F 
4. If by committing fraud any employment is obtained such a 
fraudulent practice cannot be permitted to be countenanced by a Court of G 
law. Tribunal had comn1itted a patent error of la\\' in directing reinstate-
n1ent of the respondent-workn1en \\'ith all consequential benefits. The 
removal orders could not have been faulted by the Tribunal as they were 
the result of a sharp and fraudulent practice pn the part of the respon-
dents. [531-E) 
H 
528 
SUPREME COURT REPORTS [1995) SUPP. 4 S.C.R. 
A 
CIVIL APPELLATE JURISDICTION : Civil appeal No. 9636 of 
B 
c 
1995. 
From the Judgment and Order dated 1.7.94 of the Central

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