Reportable
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL No. 5070 OF 2008
National Institute of Technology
& Anr. Appellant(s)
VERSUS
Pannalal Choudhury & Anr. Respondent(s)
J U D G M E N T
Abhay Manohar Sapre, J.
1) This appeal is filed against the final judgment & order dated
17.11.2006 passed by the High Court of Gauhati in W.A. No. 106/2004.
2) In order to appreciate the issue involved in this appeal, which lies
in a narrow compass, it is necessary to set out the relevant facts in brief
infra.
3) The appellant is a reputed Technical Educational Institute in the
country. It is known as "National Institute of Technology" (hereinafter
referred to as “NIT”) at Silchar in the State of Assam. Till 28.06.2002, it
was functioning as Regional Engineering College (hereinafter referred to as
“REC”) in equal participation of State and Central Government. However, on
and after 28.06.2002, it became fully owned Central Government Educational
Institute under the exclusive control and supervision of Central Government
and was accordingly named as NIT.
4) The respondent was originally appointed as Deputy Registrar
(Accounts) on 17.07.1986 by the erstwhile REC in their Institute. After few
years, the respondent, on being selected, was appointed as Registrar of the
REC. However, he was asked to hold the post of Deputy Registrar (Accounts)
till the said post was regularly filled up.
5) In the year 1994-95, it was noticed in the audit that while
functioning as Registrar/Deputy Registrar(Accounts), the respondent had
committed several serious financial as also administrative irregularities.
The irregularities were related to the acts of insubordination,
dereliction of duties while attending to the work of the Institute,
suppression of facts from the higher authorities and misappropriation of
Institution's funds thereby putting the Institute to suffer loss etc.
6) The Management of REC accordingly issued three show cause
notices/charge sheets two on 24.10.1994 (Annexure-P-1collectively) and one
on 01.02.1995 (Annexure P-3) to the respondent under Rule 9 of the Assam
Services (Discipline and Appeal) Rules, 1964 (hereinafter referred to as
“the Rules”). The details of the irregularities/misconduct committed by the
respondent were enclosed with the charge sheets. The respondent was asked
to file his written reply to the aforesaid charge sheets. He was also asked
to inspect the relevant documents, if he so desired to do so.
7) The matter was accordingly placed in the 66th meeting of the Board of
Governors (in short “BOG”) held on 07.12.1994 as agenda Item Nos. 7 (a) and
8 under the caption – “To receive a note of recent financial stalemate
created by Shri Pannalal Choudhary, Registrar who was also holding the
charge of Deputy Registrar (Accounts) and suggest remedial measures to
avoid such situation in future” and second “To consider rectification of
irregularities observed by A.G. Audit in the accounts of REC “Silchar”.
8) The BOG discussed the matter under reference in the said meeting and
viewed the same as being serious because of nature of charges and the
allegations made in support thereof. The BOG approved the action proposed,
initiated and taken by the Principal & Secretary against the respondent so
far and further directed to take next disciplinary step in consultation
with the Chairman, BOG.
9) This led to constitution of an inquiry Committee consisting of three
Members by the Management for holding a regular departmental inquiry into
the charges leveled against the respondent. Out of three Members, one Dr.
S.K. Das – Head of the Department of Humanities of REC Silchar was
appointed as the Presiding Officer while Sri. R. Gupta, Head of the
Department of Applied Mechanics and Sr. A.I. Laskar, Lecturer in the
Department of Civil Engineering were the Members. Since the charges leveled
against the respondent were serious in nature, the BOG, by order dated
17.02.1995 put the respondent under suspension pending departmental
inquiry.
10) The Committee then issued notices to the respondent for his
appearance on various dates such as 04.07.1995, 20.07.1995, 03.08.1995,
14.08.1995 and 27.12.1995 to participate in the inquiry but he failed to
appear for the reasons best known to him. The Management accordingly
examined four witnesses in support of the charges on 14.08.1995.
Thereafter, on 27.12.1995 the respondent sent a letter to the Committee
praying therein that since he has challenged his suspension order in Court,
the departmental proceedings initiated against him be stayed awaiting the
outcome of the Court proceedings.
11) The Committee considered the prayer made by the respondent and was of
the view that in the absence of stay order passed by any Court, there is no
justification to stay the departmental proceedings as prayed by the
respondent. The Committee, therefore, rejected the prayer made by the
respondent and issued another notice to the respondent requesting him to
appear before the Committee on 10.01.1996. The respondent did not appear
and hence the inquiry proceedings were adjourned for 18.01.1996. In the
notice sent to the respondent for his appearance on 18.01.1996, it was
specifically mentioned that in case the respondent fails to appear on that
date, no further notice would be sent to him of the proceedings. The
respondent, despite service of notice, remained absent even on 18.01.1996.
The Committee then concluded its proceedings on the basis of material
produced before it by the Management and submitted its 16-page report on
29.02.1996 (Annexure-P-4), concluding therein that all the charges leveled
against the respondent in 3 charge sheets stood proved.
12) On 11.03.1996, the report of the Committee was placed before the BOG
in their 68th meeting as Agenda Nos. 6 and 24 to decide further action
keeping in view the findings of the Committee. The BOG, after perusing the
report, accepted all the findings of the Committee and accordingly resolved
to impose punishment on the respondent. The BOG also authorized the
Principal & Secretary to prepare the show cause notice and take necessary
action as the Chairman/Board advises (Annexure-P-5) and do the needful in
the matter.
13) Accordingly, a show cause notice was sent to the respondent on
07.06.96 (Annexure-P-6) by registered post along with the copy of the
Inquiry report dated 29.02.1996 proposing therein the punishment of
dismissal of the respondent from the service. Even after receipt of the
show cause notice, the respondent did not file any reply. The Principal &
Secretary accordingly informed the Chairman by his letter dated 01.07.1996
(Annexure-P-7) about non-submission of any reply by the respondent. The
Principal & Secretary by his order dated 16.08.1996(Annexure-P-8) dismissed
the respondent from the services of REC.
14) The matter was then placed before the BOG in their 69th meeting held
on 22.08.1996 as Item No. 2 for appropriate orders, if any, in relation to
the respondent's services. The BOG, in express terms, after deliberating
the matter approved the minutes of earlier meeting and also approved of the
action taken against the respondent by the Principal & Secretary and
accordingly noted its compliance made in that behalf.
15) It is with these aforementioned facts, which are undisputed, the
respondent, felt aggrieved by the dismissal order dated 16.08.1996, filed
writ petition before the High Court. The challenge to dismissal order in
the writ petition was essentially on one ground, namely, that the
authority, which passed the dismissal order, had no power to pass and hence
it was illegal and thus liable to be set aside. It was contended that the
power to pass the dismissal order, as per the Rules, vests with the BOG
and hence only the BOG could pass such order. It was pointed out that since
the dismissal order was passed by the Principal & Secretary, who had no
authority to pass such order under the Rules, hence dismissal order was bad
in law. It was also contended that even assuming that the BOG had delegated
their powers in favour of Principal & Secretary to take appropriate
disciplinary action against the respondent as their delegate, yet mere
reading of the resolutions passed by the BOG in this behalf would go to
show that no such power was conferred or/and delegated to the Principal &
Secretary so as to empower him to pass dismissal order of the respondent.
16) The appellant (as respondent in the writ petition) while opposing the
writ petition defended their action, which had culminated in respondent's
dismissal from service and contended that it was passed as per the Rules.
According to the appellant, the entire action proposed, initiated and
eventually taken against the respondent which resulted in his dismissal
from service was taken by the BOG and later approved by the BOG in their
meetings held on various dates and hence it was wrong on the part of the
respondent to contend that the dismissal order was not passed by the BOG
but was passed by the Principal & Secretary. It was pointed out that the
Principal & Secretary was also authorized by the BOG to initiate and take
disciplinary action against the respondent in consultation with the
Chairman, BOG and do the needful, which he did pursuant to such power
delegated to him, and later also sought its approval from the BOG. It was
lastly contended that when the BOG, in their last meeting held on
22.08.1996 approved the entire action including passing of the dismissal
order then all previous actions taken by the Principal & Secretary stood
ratified by the BOG from the date they were taken and thus became legal and
proper. The appellant also defended the entire departmental proceedings
initiated against the respondent contending that the departmental
proceedings were held in accordance with law by following proper procedure
prescribed in the Rules and giving full opportunity to the respondent to
defend and hence no flaw can be noticed in the proceedings.
17) As mentioned above, the writ court (single judge) allowed the
respondent's writ petition and set aside the dismissal order dated
16.08.1996 on the short ground that since the competent authority did not
pass the dismissal order prescribed in the Rules, i.e., the BOG, whereas it
was passed by the Principal & Secretary who had no authority to pass such
dismissal order under the Rules and hence it was liable to be set aside
being against the rules. The writ court accordingly set aside the
dismissal order dated 16.08.1996 with a direction to the appellant to
reinstate the respondent in their services by giving him all consequential
benefits.
18) Aggrieved by the said order, the appellant filed intra court appeal.
By impugned order, the Division Bench concurred with the view taken by the
Single Judge (writ court) dismissed the appellant's appeal. Challenging,
the said order, the appellant filed this appeal by way of special leave
before this Court.
19) Heard Mr. Manoj Goel, learned counsel for the appellants and Mr.
Anshuman Sinha, learned counsel for contesting respondent No. 1.
20) Mr Manoj Goel, learned Counsel appearing for the appellant while
assailing the legality and correctness of the view taken by the writ court
and appellate court contended that both the courts below erred in allowing
the respondent's writ petition and quashing the dismissal order dated
16.08.1996.
21) In the first place, learned counsel for the appellant contended that
no fault could be noticed in the entire departmental proceedings, which
eventually resulted in respondent's ouster from the services because it was
conducted strictly in accordance with the Rules prescribed.
22) In the second place, his contention was that the Principal &
Secretary was duly authorized by the BOG to initiate departmental
proceedings and to take appropriate action in consultation with the
Chairman of the BOG against the respondent. In support of his contention,
learned counsel placed reliance on various Resolutions passed by the BOG
from time to time and, in particular, Resolutions dated 07.12.1994,
08.06.1995, 11.03.1996, and 22.08.1996.
23) In the third place, he contended that the BOG was involved in all the
deliberations at every stage of the departmental proceedings as would be
clear from the minutes of meetings of the BOG and hence it can not be said
that the BOG did not take any decision or it was not aware of the
proceedings or did not approve of the action taken against the respondent
by the Principal & Secretary.
24) In the fourth place, it was contended that the entire action in
question having been approved or/and ratified by the BOG in their last
meeting held on 22.08.1996, whatever so-called defects even if existed in
the departmental proceedings including passing of the dismissal order on
16.08.1996, the same stood ratified by the BOG in their meeting held on
22.08.1996 and hence no fault can be noticed in the proceedings.
25) In contra, learned counsel for the respondent supported the reasoning
and the conclusion arrived at by the two Courts below and contended that no
case is made out to interfere in the impugned order. Learned counsel then
elaborated his submissions in support of the reasons rendered by the two
Courts.
26) Having heard the learned counsel for the parties and on perusal of
the record of the case, we find force in all the contentions urged by the
learned counsel for the appellant. This we say so for the following
reasons:
27) At the threshold, it is noticed that in the writ petition, the
respondent had taken several grounds to challenge the dismissal order on
merits. However, a perusal of order of the writ court would show that the
writ petitioner did not press any of the grounds. The only ground, which he
pressed, while prosecuting the writ petition, was that the order of
dismissal was passed by the Principal & Secretary of the NIT, who had no
authority to pass such order. Since the authority, to dismiss the
respondent vested in the BOG of the NIT under the Rules and hence the
dismissal order was bad in law. In view of the fact that the respondent did
not press any of the grounds before the High Court except the one mentioned
above we need not go into any of the ground. The only issue the High Court
was called upon to decide was whether the removal of the respondent from
service was by the competent authority?
28) The High Court, as mentioned above, allowed the writ petition holding
that the impugned order of dismissal dated 16.08.1996 was, in fact. passed
by the Principal & Secretary, who had no authority to pass such order under
the Rules. It was held that the competent authority to pass the dismissal
order under the Rules was the BOG. The High Court accordingly set aside the
order of dismissal with a direction to grant all consequential service
benefits to the respondent. In appeal filed by the appellant, the Division
Bench concurred with the view taken by the Single Judge and accordingly
dismissed the appellant's appeal, giving rise to filing of this appeal by
the appellant (Management).
29) Before we proceed to appreciate the submissions, it is apposite to
reproduce the relevant extracts of the meetings of the BOG, to show as to
how the issue of the respondent was dealt with by the BOG:
(1)
Minutes of the Meeting held on 07.12.1994
“Item-7(a): To receive a note of recent financial stalemate created by Shri
Pannalal Choudhury, Registrar who was also holding the charge of Deputy
Registrar (Accounts) and suggest remedial measures to avoid such situation
in future:
The Board approved the action taken by the Principal & Secretary, on
the advice of the Hon’ble Chairman, BOG, regarding financial stalemate as
ex-post facto.
Further, while discussing various charges of insubordination,
dereliction of duty, suppression of facts etc. brought against and
accordingly charge-sheets served to Shri Pannalal Choudhury, Registrar who
was also holding the charge of Deputy Registrar (Accounts), by the
Principal & Secretary, the Board of Governors took the matter with all
seriousness and directed the Principal & Secretary to take necessary legal
advice for further disciplinary actions in consultation with the Hon’ble
Chairman, BOG, REC Silchar.”
“Item-8: To consider rectification of irregularities observed by A.G. Audit
in the accounts of Regional Engg. College, Silchar.
The Board scrutinized various financial irregularities highlighted by
A.G. Audit and also by the Principal & Secretary, BOG, and took the whole
matter very seriously and directed the Principal & Secretary to take legal
advice and draw disciplinary proceedings against Shri Pannalal Choudhury,
Registrar who was also holding the charge of Deputy Registrar (Accounts).
The Board further directed the Principal & Secretary, BOG, to take next
disciplinary step in consultation with the Hon’ble Chairman, BOG.”
(2)
Minutes of the Meeting held on 08.06.1995
Item 6: To decide on the case of Sri Pannalal Choudhury, Registrar
(under suspension).
Sri Pannalal Choudhury, Registrar was put under suspension on 17.02.1995 by
the Secretary, Board of Governors obtaining necessary legal advice as well
as the written directive by the Hon’ble Chairman, Board of Governors.
The Hon’ble Board in its 66th meeting vide Item No. 7(a) discussed various
administrative charges of insubordination dereliction of duty, suppression
of facts etc. and accordingly the chargesheets were served to Sri
Choudhury. The Board then directed the Principal and Secretary to take
necessary legal advice for further disciplinary actions in consultation
with the Hon’ble Chairman, Board of Governors. And the Board in the same
meeting vide item No. 8 also scrutinized various financial irregularities
highlighted by the A.G. Audit and also by the Principal and Secretary. The
Board took the whole matter very seriously and directed the Secretary to
take further legal advice and draw disciplinary proceedings against Sri
Choudhury.
The Principal and Secretary accordingly took all necessary legal advice
both from the High Court and the District Court Advocates duly appointed by
the College and a Board of Inquiry was constituted on May 6, 1995 with the
following Members for the purpose of Departmental proceedings:-
1. Presiding Officer : Dr. S.K. Das
2. Members : i) Dr. R. Gupta
ii) Prof. A.I. Laskar
3. Presenting Officer : Sri Sudipta Kr. Bhattacharjee
[However, at present a new Presenting Officer Sri F.A. Talukdar, Lecturer,
Deptt. Of Electrical Engg. has been appointed as Sri Sudipta Kr.
Bhattacharjee has informed his inability to continue as Presenting Officer
as he has applied for leave on medical ground.]
The Board of Inquiry has already completed its assigned job and the report
of the Board will be placed on the table for detailed discussion by the
Hon’ble Members of the Board of Governors and for necessary action
thereafter.”
(3)
Minutes of Meeting held on 11.03.1996
“Item-6: To decide on the case of Shri Pannalal Choudhury Registrar
(under suspension).
The report of the Board of inquiry was placed before the Board and
after a detailed discussion, the board authorized the Principal and
Secretary to prepare a draft show cause notice on behalf of the Board to be
served to Shri Pannalal Choudhury, Registrar (under suspension) for
imposing the punishment and to send a copy of the same to the Ministry of
Human Resource Development, New Delhi with a request to communicate their
comments, if any, within 21 days. The board also authorized the Principal &
Secretary to submit the draft show cause notice after expiry of the above
period of the Ministry of Human Resource Development and after taking legal
advice to the Chairman, Board of Governors for serving the said show cause
notice by the Board to Sri Pannalal Choudhury, Registrar (under suspension)
and to take necessary action as the Chairman/Board advices.”
“Item-24: To decide on the misappropriation of college money by sri
Pannalal Choudhury in his capacity as Deputy Registrar (Accounts).
The Board discussed this item in relation to the item No. 6 and
authorized the Principal Secretary to do the needful accordingly.”
(4)
Minutes of Meeting held on 22.08.1996
“Item-2: To receive a note on the actions taken and progress made on the
resolutions of the last meeting.
Under item-6B68/96:
In pursuance of the resolution and direction of the Board actions
were taken and dismissal order had been issued to Sri Pannalal Choudhury,
Registrar (under suspension) on 16.8.1996 and his name had been struck off
from the strength of the Regional Engineering College, Silchar Society. The
Board noted the compliance of the action taken.
The Board also noted the actions taken against item Nos.7, 8, 10, 15,
24 and 25 and approved the same.”
30) Reading of the aforementioned four Resolutions passed by the BOG in
juxtaposition in no uncertain terms show that the BOG monitored, dealt with
and eventually decided the case of the respondent in their various meetings
since inception and also authorized the Principal & Secretary to deal with
the same in consultation with the Chairman of Board of Governors and to do
the needful by passing appropriate orders. It is also clear that in the
last meeting held on 22.08.1996, the BOG approved the Resolution passed in
the earlier 68th meeting held on 11.03.1996, which had dealt with the case
of respondent at Item Nos. 6 and 24.
31) In our considered view, the expression “authorization” and “to
take necessary action as the Chairman advises” in Item No. 6 and lastly,
the expression “to do the needful accordingly” in Item No. 24 in the
Resolution dated 11.03.1996 were wide enough to clothe the Principal &
Secretary with a power to pass the dismissal order, if occasion so arises.
32) As rightly argued by the learned counsel for the appellant, the
Resolutions authorizing the Principal & Secretary to pass appropriate
orders rightly, did not use the expression “to dismiss the respondent”
because at that point of time, the departmental inquiry was in
contemplation against the respondent. It was, therefore, not known at that
time as to what would be the outcome of departmental proceedings and
secondly use of such expression in the Resolution before the start of
departmental inquiry could have been construed as prejudging the issue
against the respondent thereby indicating existence of bias attitude of the
Members of the Board of Governors towards the respondent and lastly as said
above, the three expressions used in the Resolution did clothe the
Principal & Secretary with the power to pass appropriate orders which
included the order imposing punishment of dismissal as prescribed in the
Rules, against the respondent depending upon the outcome of the
departmental inquiry and subject to grant of final approval by the BOG.
Indeed the expression “and to take necessary action as the Chairman/Board
advises” and "to do the needful" used in the Resolution were very apt
words rightly used in the resolutions for taking intended action which was
in contemplation, against the respondent.
33) In the light of aforesaid discussion and keeping in mind the contents
of the Resolutions, it is difficult to agree with the view taken by the
High Court that the BOG did not pass the dismissal order but it was passed
by the Principal & Secretary. In other words, keeping in view the contents
of the four Resolutions, we have no hesitation to hold that the dismissal
order dated 16.08.1996 was passed by the BOG and the Principal & Secretary
only signed the order for and on behalf of the BOG on the strength of
authorization made in his favour by the BOG vide Resolution dated
11.03.1996.
34) That apart, the issue in question could be examined from yet another
angle by applying the law relating to "Ratification" which was not taken
note of by the High Court.
35) The expression “Ratification” means “the making valid of an act
already done”. This principle is derived from the Latin maxim “ratihabitio
mandato aequiparatur” meaning thereby “a subsequent ratification of an act
is equivalent to a prior authority to perform such act.” It is for this
reason; the ratification assumes an invalid act, which is retrospectively
validated.
36) The expression “ratification” was succinctly defined by the English
Court in one old case, Hartman Vs. Hornsby reported in 142 Mo 368 44 SW
242, 244 as under:
“ ‘Ratification’ is the approval by act, word, or conduct, of that which
was attempted (of accomplishment), but which was improperly or
unauthorisedly performed in the first instance.”
37) The law of ratification was applied by this Court in Parmeshwari
Prasad Gupta Vs. U.O.I (1973) 2 SCC 543. In that case, the Chairman of the
Board of Directors had terminated the services of the General Manager of a
Company pursuant to a resolution taken by the Board at a meeting. It was
not in dispute that the meeting had been improperly held and consequently
the resolution passed in the said meeting terminating the services of
General Manager was invalid. However, the Board of Directors then convened
subsequent meeting and in this meeting affirmed the earlier resolution,
which had been passed in improper meeting. On these facts, the Court held,
“Even if it be assumed that the telegram and the letter terminating the
services of the appellant by the Chairman was in pursuance of the invalid
resolution of the Board of Directors passed on 16-12-1953 to terminate his
services, it would not follow that the action of the Chairman could not be
ratified in a regularly convened meeting of the Board of Directors. The
point is that even assuming that the Chairman was not legally authorised to
terminate the services of the appellant, he was acting on behalf of the
Company in doing so, because, he purported to act in pursuance of the
invalid resolution. Therefore, it was open to a regularly constituted
meeting of the Board of Directors to ratify that action which, though
unauthorised, was done on behalf of the Company. Ratification would always
relate back to the date of the act ratified and so it must be held that the
services of the appellant were validly terminated on 17-12-1953.”
38) This view was approved by this Court in High Court of Judicature for
Rajasthan Vs. P.P. Singh & Anr. (2003) 4 SCC 239.
39) The aforesaid principle of law of ratification was again applied by
this Court in Maharashtra State Mining Corpn. Vs. Sunil (2006) 5 SCC 96. In
this case, the respondent was an employee of the appellant Corporation.
Consequent to a departmental enquiry, he was dismissed by the Managing
Director of the appellant. The respondent then filed a writ petition
before the High Court. During the pendency of the writ petition, the Board
of Directors of the appellant Corporation passed a resolution ratifying the
impugned action of the Managing Director and also empowering him to take
decision in respect of the officers and staff in the grade of pay the
maximum of which did not exceed Rs. 4700 p.m. Earlier, the Managing
Director had powers only in respect of those posts where the maximum pay
did not exceed Rs.1900 p.m. The respondent at the relevant time was
drawing more than Rs.1800 p.m. Therefore, at the relevant time, the
Managing Director was incompetent to dismiss the respondent. Accordingly,
the High Court held the order of dismissal to be invalid. The High Court
further held that the said defect could not be rectified subsequently by
the resolution of the Board of Directors. The High Court set aside the
dismissal order and granted consequential relief. The appellant then filed
the appeal in this Court by special leave. Justice Ruma Pal, speaking for
three- Judge Bench, while allowing the appeal and setting aside of the
Court held as under :
“The High Court rightly held that an act by a legally incompetent
authority is invalid. But it was entirely wrong in holding that such an
invalid act could not be subsequently “rectified” by ratification of the
competent authority. Ratification by definition means the making valid of
an act already done. The principle is derived from the Latin maxim
ratihabitio mandato aequiparatur, namely, “a subsequent ratification of an
act is equivalent to a prior authority to perform such act.” Therefore,
ratification assumes an invalid act which is retrospectively validated.”
“In the present case, the Managing Director’s order dismissing the
respondent from service was admittedly ratified by the Board of Directors
unquestionably had the power to terminate the services of the respondent.
Since the order of the Managing Director had been ratified by the Board of
Directors such ratification related back to the date of the order and
validated it.”
40) Applying the aforementioned law of ratification to the facts at hand,
even if we assume for the sake of argument that the order of dismissal
dated 16.08.1996 was passed by the Principal & Secretary who had neither
any authority to pass such order under the Rules nor there was any
authorization given by the BOG in his favour to pass such order yet in our
considered view when the BOG in their meeting held on 22.08.1996 approved
the previous actions of the Principal & Secretary in passing the
respondent's dismissal order dated 16.08.1996, all the irregularities
complained of by the respondent in the proceedings including the authority
exercised by the Principal & Secretary to dismiss him stood ratified by the
Competent Authority (Board of Governors) themselves with retrospective
effect from 16.8.1996 thereby making an invalid act a lawful one in
conformity with the procedure prescribed in Rules.
41) In such circumstances, the respondent's grievance that the dismissal
order had not been passed by the competent authority, i.e., the BOG is no
longer survived.
42) In the light of foregoing discussion, we differ with the view taken
by the High Court and accordingly hold that the dismissal order dated
16.08.1996 was passed by the Competent Authority, namely, the BOG as
prescribed in the Rules and hence it was legal and proper. It is
accordingly upheld.
43) As already mentioned above, no other point was urged by the
respondent in the writ petition and also in intra court appeal of the
appellant by filing cross objection therein for assailing the legality and
correctness of the dismissal order on other grounds except the one which we
have decided. It is, therefore, not necessary to go into any other
question.
44) In view of foregoing discussion, the appeal succeeds and is hereby
allowed. The impugned order is set aside. As a consequence, the writ
petition filed by the respondent stands dismissed. No costs.
…….….……............................J.
[VIKRAMAJIT SEN]
…………..................................J.
[ABHAY MANOHAR SAPRE]
New Delhi;
July 01, 2015.
ITEM NO.1C COURT NO.12 SECTION XIV
(For judgment)
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Civil Appeal No(s). 5070/2008
NATIONAL INSTITUTE OF TECHNOLOGY & ANR. Appellant(s)
VERSUS
PANNALAL CHOUDHURY & ANR. Respondent(s)
Date : 01/07/2015 This appeal was called on for pronouncement
of judgment today.
For Appellant(s) Mr. Shuvodeep Roy, AOR
For Respondent(s) Mr. Renjith. B, AOR
M/s Corporate Law Group, Advs.
Hon'ble Mr. Justice Abhay Manohar Sapre pronounced the reportable
judgment of the Bench comprising Hon'ble Mr. Justice Vikramajit Sen and His
Lordship.
The appeal succeeds and is hereby allowed in terms of the signed
reportable judgment.
(R.NATARAJAN) (SNEH LATA SHARMA)
Court Master Court Master
(Signed reportable judgment is placed on the file)
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL No. 5070 OF 2008
National Institute of Technology
& Anr. Appellant(s)
VERSUS
Pannalal Choudhury & Anr. Respondent(s)
J U D G M E N T
Abhay Manohar Sapre, J.
1) This appeal is filed against the final judgment & order dated
17.11.2006 passed by the High Court of Gauhati in W.A. No. 106/2004.
2) In order to appreciate the issue involved in this appeal, which lies
in a narrow compass, it is necessary to set out the relevant facts in brief
infra.
3) The appellant is a reputed Technical Educational Institute in the
country. It is known as "National Institute of Technology" (hereinafter
referred to as “NIT”) at Silchar in the State of Assam. Till 28.06.2002, it
was functioning as Regional Engineering College (hereinafter referred to as
“REC”) in equal participation of State and Central Government. However, on
and after 28.06.2002, it became fully owned Central Government Educational
Institute under the exclusive control and supervision of Central Government
and was accordingly named as NIT.
4) The respondent was originally appointed as Deputy Registrar
(Accounts) on 17.07.1986 by the erstwhile REC in their Institute. After few
years, the respondent, on being selected, was appointed as Registrar of the
REC. However, he was asked to hold the post of Deputy Registrar (Accounts)
till the said post was regularly filled up.
5) In the year 1994-95, it was noticed in the audit that while
functioning as Registrar/Deputy Registrar(Accounts), the respondent had
committed several serious financial as also administrative irregularities.
The irregularities were related to the acts of insubordination,
dereliction of duties while attending to the work of the Institute,
suppression of facts from the higher authorities and misappropriation of
Institution's funds thereby putting the Institute to suffer loss etc.
6) The Management of REC accordingly issued three show cause
notices/charge sheets two on 24.10.1994 (Annexure-P-1collectively) and one
on 01.02.1995 (Annexure P-3) to the respondent under Rule 9 of the Assam
Services (Discipline and Appeal) Rules, 1964 (hereinafter referred to as
“the Rules”). The details of the irregularities/misconduct committed by the
respondent were enclosed with the charge sheets. The respondent was asked
to file his written reply to the aforesaid charge sheets. He was also asked
to inspect the relevant documents, if he so desired to do so.
7) The matter was accordingly placed in the 66th meeting of the Board of
Governors (in short “BOG”) held on 07.12.1994 as agenda Item Nos. 7 (a) and
8 under the caption – “To receive a note of recent financial stalemate
created by Shri Pannalal Choudhary, Registrar who was also holding the
charge of Deputy Registrar (Accounts) and suggest remedial measures to
avoid such situation in future” and second “To consider rectification of
irregularities observed by A.G. Audit in the accounts of REC “Silchar”.
8) The BOG discussed the matter under reference in the said meeting and
viewed the same as being serious because of nature of charges and the
allegations made in support thereof. The BOG approved the action proposed,
initiated and taken by the Principal & Secretary against the respondent so
far and further directed to take next disciplinary step in consultation
with the Chairman, BOG.
9) This led to constitution of an inquiry Committee consisting of three
Members by the Management for holding a regular departmental inquiry into
the charges leveled against the respondent. Out of three Members, one Dr.
S.K. Das – Head of the Department of Humanities of REC Silchar was
appointed as the Presiding Officer while Sri. R. Gupta, Head of the
Department of Applied Mechanics and Sr. A.I. Laskar, Lecturer in the
Department of Civil Engineering were the Members. Since the charges leveled
against the respondent were serious in nature, the BOG, by order dated
17.02.1995 put the respondent under suspension pending departmental
inquiry.
10) The Committee then issued notices to the respondent for his
appearance on various dates such as 04.07.1995, 20.07.1995, 03.08.1995,
14.08.1995 and 27.12.1995 to participate in the inquiry but he failed to
appear for the reasons best known to him. The Management accordingly
examined four witnesses in support of the charges on 14.08.1995.
Thereafter, on 27.12.1995 the respondent sent a letter to the Committee
praying therein that since he has challenged his suspension order in Court,
the departmental proceedings initiated against him be stayed awaiting the
outcome of the Court proceedings.
11) The Committee considered the prayer made by the respondent and was of
the view that in the absence of stay order passed by any Court, there is no
justification to stay the departmental proceedings as prayed by the
respondent. The Committee, therefore, rejected the prayer made by the
respondent and issued another notice to the respondent requesting him to
appear before the Committee on 10.01.1996. The respondent did not appear
and hence the inquiry proceedings were adjourned for 18.01.1996. In the
notice sent to the respondent for his appearance on 18.01.1996, it was
specifically mentioned that in case the respondent fails to appear on that
date, no further notice would be sent to him of the proceedings. The
respondent, despite service of notice, remained absent even on 18.01.1996.
The Committee then concluded its proceedings on the basis of material
produced before it by the Management and submitted its 16-page report on
29.02.1996 (Annexure-P-4), concluding therein that all the charges leveled
against the respondent in 3 charge sheets stood proved.
12) On 11.03.1996, the report of the Committee was placed before the BOG
in their 68th meeting as Agenda Nos. 6 and 24 to decide further action
keeping in view the findings of the Committee. The BOG, after perusing the
report, accepted all the findings of the Committee and accordingly resolved
to impose punishment on the respondent. The BOG also authorized the
Principal & Secretary to prepare the show cause notice and take necessary
action as the Chairman/Board advises (Annexure-P-5) and do the needful in
the matter.
13) Accordingly, a show cause notice was sent to the respondent on
07.06.96 (Annexure-P-6) by registered post along with the copy of the
Inquiry report dated 29.02.1996 proposing therein the punishment of
dismissal of the respondent from the service. Even after receipt of the
show cause notice, the respondent did not file any reply. The Principal &
Secretary accordingly informed the Chairman by his letter dated 01.07.1996
(Annexure-P-7) about non-submission of any reply by the respondent. The
Principal & Secretary by his order dated 16.08.1996(Annexure-P-8) dismissed
the respondent from the services of REC.
14) The matter was then placed before the BOG in their 69th meeting held
on 22.08.1996 as Item No. 2 for appropriate orders, if any, in relation to
the respondent's services. The BOG, in express terms, after deliberating
the matter approved the minutes of earlier meeting and also approved of the
action taken against the respondent by the Principal & Secretary and
accordingly noted its compliance made in that behalf.
15) It is with these aforementioned facts, which are undisputed, the
respondent, felt aggrieved by the dismissal order dated 16.08.1996, filed
writ petition before the High Court. The challenge to dismissal order in
the writ petition was essentially on one ground, namely, that the
authority, which passed the dismissal order, had no power to pass and hence
it was illegal and thus liable to be set aside. It was contended that the
power to pass the dismissal order, as per the Rules, vests with the BOG
and hence only the BOG could pass such order. It was pointed out that since
the dismissal order was passed by the Principal & Secretary, who had no
authority to pass such order under the Rules, hence dismissal order was bad
in law. It was also contended that even assuming that the BOG had delegated
their powers in favour of Principal & Secretary to take appropriate
disciplinary action against the respondent as their delegate, yet mere
reading of the resolutions passed by the BOG in this behalf would go to
show that no such power was conferred or/and delegated to the Principal &
Secretary so as to empower him to pass dismissal order of the respondent.
16) The appellant (as respondent in the writ petition) while opposing the
writ petition defended their action, which had culminated in respondent's
dismissal from service and contended that it was passed as per the Rules.
According to the appellant, the entire action proposed, initiated and
eventually taken against the respondent which resulted in his dismissal
from service was taken by the BOG and later approved by the BOG in their
meetings held on various dates and hence it was wrong on the part of the
respondent to contend that the dismissal order was not passed by the BOG
but was passed by the Principal & Secretary. It was pointed out that the
Principal & Secretary was also authorized by the BOG to initiate and take
disciplinary action against the respondent in consultation with the
Chairman, BOG and do the needful, which he did pursuant to such power
delegated to him, and later also sought its approval from the BOG. It was
lastly contended that when the BOG, in their last meeting held on
22.08.1996 approved the entire action including passing of the dismissal
order then all previous actions taken by the Principal & Secretary stood
ratified by the BOG from the date they were taken and thus became legal and
proper. The appellant also defended the entire departmental proceedings
initiated against the respondent contending that the departmental
proceedings were held in accordance with law by following proper procedure
prescribed in the Rules and giving full opportunity to the respondent to
defend and hence no flaw can be noticed in the proceedings.
17) As mentioned above, the writ court (single judge) allowed the
respondent's writ petition and set aside the dismissal order dated
16.08.1996 on the short ground that since the competent authority did not
pass the dismissal order prescribed in the Rules, i.e., the BOG, whereas it
was passed by the Principal & Secretary who had no authority to pass such
dismissal order under the Rules and hence it was liable to be set aside
being against the rules. The writ court accordingly set aside the
dismissal order dated 16.08.1996 with a direction to the appellant to
reinstate the respondent in their services by giving him all consequential
benefits.
18) Aggrieved by the said order, the appellant filed intra court appeal.
By impugned order, the Division Bench concurred with the view taken by the
Single Judge (writ court) dismissed the appellant's appeal. Challenging,
the said order, the appellant filed this appeal by way of special leave
before this Court.
19) Heard Mr. Manoj Goel, learned counsel for the appellants and Mr.
Anshuman Sinha, learned counsel for contesting respondent No. 1.
20) Mr Manoj Goel, learned Counsel appearing for the appellant while
assailing the legality and correctness of the view taken by the writ court
and appellate court contended that both the courts below erred in allowing
the respondent's writ petition and quashing the dismissal order dated
16.08.1996.
21) In the first place, learned counsel for the appellant contended that
no fault could be noticed in the entire departmental proceedings, which
eventually resulted in respondent's ouster from the services because it was
conducted strictly in accordance with the Rules prescribed.
22) In the second place, his contention was that the Principal &
Secretary was duly authorized by the BOG to initiate departmental
proceedings and to take appropriate action in consultation with the
Chairman of the BOG against the respondent. In support of his contention,
learned counsel placed reliance on various Resolutions passed by the BOG
from time to time and, in particular, Resolutions dated 07.12.1994,
08.06.1995, 11.03.1996, and 22.08.1996.
23) In the third place, he contended that the BOG was involved in all the
deliberations at every stage of the departmental proceedings as would be
clear from the minutes of meetings of the BOG and hence it can not be said
that the BOG did not take any decision or it was not aware of the
proceedings or did not approve of the action taken against the respondent
by the Principal & Secretary.
24) In the fourth place, it was contended that the entire action in
question having been approved or/and ratified by the BOG in their last
meeting held on 22.08.1996, whatever so-called defects even if existed in
the departmental proceedings including passing of the dismissal order on
16.08.1996, the same stood ratified by the BOG in their meeting held on
22.08.1996 and hence no fault can be noticed in the proceedings.
25) In contra, learned counsel for the respondent supported the reasoning
and the conclusion arrived at by the two Courts below and contended that no
case is made out to interfere in the impugned order. Learned counsel then
elaborated his submissions in support of the reasons rendered by the two
Courts.
26) Having heard the learned counsel for the parties and on perusal of
the record of the case, we find force in all the contentions urged by the
learned counsel for the appellant. This we say so for the following
reasons:
27) At the threshold, it is noticed that in the writ petition, the
respondent had taken several grounds to challenge the dismissal order on
merits. However, a perusal of order of the writ court would show that the
writ petitioner did not press any of the grounds. The only ground, which he
pressed, while prosecuting the writ petition, was that the order of
dismissal was passed by the Principal & Secretary of the NIT, who had no
authority to pass such order. Since the authority, to dismiss the
respondent vested in the BOG of the NIT under the Rules and hence the
dismissal order was bad in law. In view of the fact that the respondent did
not press any of the grounds before the High Court except the one mentioned
above we need not go into any of the ground. The only issue the High Court
was called upon to decide was whether the removal of the respondent from
service was by the competent authority?
28) The High Court, as mentioned above, allowed the writ petition holding
that the impugned order of dismissal dated 16.08.1996 was, in fact. passed
by the Principal & Secretary, who had no authority to pass such order under
the Rules. It was held that the competent authority to pass the dismissal
order under the Rules was the BOG. The High Court accordingly set aside the
order of dismissal with a direction to grant all consequential service
benefits to the respondent. In appeal filed by the appellant, the Division
Bench concurred with the view taken by the Single Judge and accordingly
dismissed the appellant's appeal, giving rise to filing of this appeal by
the appellant (Management).
29) Before we proceed to appreciate the submissions, it is apposite to
reproduce the relevant extracts of the meetings of the BOG, to show as to
how the issue of the respondent was dealt with by the BOG:
(1)
Minutes of the Meeting held on 07.12.1994
“Item-7(a): To receive a note of recent financial stalemate created by Shri
Pannalal Choudhury, Registrar who was also holding the charge of Deputy
Registrar (Accounts) and suggest remedial measures to avoid such situation
in future:
The Board approved the action taken by the Principal & Secretary, on
the advice of the Hon’ble Chairman, BOG, regarding financial stalemate as
ex-post facto.
Further, while discussing various charges of insubordination,
dereliction of duty, suppression of facts etc. brought against and
accordingly charge-sheets served to Shri Pannalal Choudhury, Registrar who
was also holding the charge of Deputy Registrar (Accounts), by the
Principal & Secretary, the Board of Governors took the matter with all
seriousness and directed the Principal & Secretary to take necessary legal
advice for further disciplinary actions in consultation with the Hon’ble
Chairman, BOG, REC Silchar.”
“Item-8: To consider rectification of irregularities observed by A.G. Audit
in the accounts of Regional Engg. College, Silchar.
The Board scrutinized various financial irregularities highlighted by
A.G. Audit and also by the Principal & Secretary, BOG, and took the whole
matter very seriously and directed the Principal & Secretary to take legal
advice and draw disciplinary proceedings against Shri Pannalal Choudhury,
Registrar who was also holding the charge of Deputy Registrar (Accounts).
The Board further directed the Principal & Secretary, BOG, to take next
disciplinary step in consultation with the Hon’ble Chairman, BOG.”
(2)
Minutes of the Meeting held on 08.06.1995
Item 6: To decide on the case of Sri Pannalal Choudhury, Registrar
(under suspension).
Sri Pannalal Choudhury, Registrar was put under suspension on 17.02.1995 by
the Secretary, Board of Governors obtaining necessary legal advice as well
as the written directive by the Hon’ble Chairman, Board of Governors.
The Hon’ble Board in its 66th meeting vide Item No. 7(a) discussed various
administrative charges of insubordination dereliction of duty, suppression
of facts etc. and accordingly the chargesheets were served to Sri
Choudhury. The Board then directed the Principal and Secretary to take
necessary legal advice for further disciplinary actions in consultation
with the Hon’ble Chairman, Board of Governors. And the Board in the same
meeting vide item No. 8 also scrutinized various financial irregularities
highlighted by the A.G. Audit and also by the Principal and Secretary. The
Board took the whole matter very seriously and directed the Secretary to
take further legal advice and draw disciplinary proceedings against Sri
Choudhury.
The Principal and Secretary accordingly took all necessary legal advice
both from the High Court and the District Court Advocates duly appointed by
the College and a Board of Inquiry was constituted on May 6, 1995 with the
following Members for the purpose of Departmental proceedings:-
1. Presiding Officer : Dr. S.K. Das
2. Members : i) Dr. R. Gupta
ii) Prof. A.I. Laskar
3. Presenting Officer : Sri Sudipta Kr. Bhattacharjee
[However, at present a new Presenting Officer Sri F.A. Talukdar, Lecturer,
Deptt. Of Electrical Engg. has been appointed as Sri Sudipta Kr.
Bhattacharjee has informed his inability to continue as Presenting Officer
as he has applied for leave on medical ground.]
The Board of Inquiry has already completed its assigned job and the report
of the Board will be placed on the table for detailed discussion by the
Hon’ble Members of the Board of Governors and for necessary action
thereafter.”
(3)
Minutes of Meeting held on 11.03.1996
“Item-6: To decide on the case of Shri Pannalal Choudhury Registrar
(under suspension).
The report of the Board of inquiry was placed before the Board and
after a detailed discussion, the board authorized the Principal and
Secretary to prepare a draft show cause notice on behalf of the Board to be
served to Shri Pannalal Choudhury, Registrar (under suspension) for
imposing the punishment and to send a copy of the same to the Ministry of
Human Resource Development, New Delhi with a request to communicate their
comments, if any, within 21 days. The board also authorized the Principal &
Secretary to submit the draft show cause notice after expiry of the above
period of the Ministry of Human Resource Development and after taking legal
advice to the Chairman, Board of Governors for serving the said show cause
notice by the Board to Sri Pannalal Choudhury, Registrar (under suspension)
and to take necessary action as the Chairman/Board advices.”
“Item-24: To decide on the misappropriation of college money by sri
Pannalal Choudhury in his capacity as Deputy Registrar (Accounts).
The Board discussed this item in relation to the item No. 6 and
authorized the Principal Secretary to do the needful accordingly.”
(4)
Minutes of Meeting held on 22.08.1996
“Item-2: To receive a note on the actions taken and progress made on the
resolutions of the last meeting.
Under item-6B68/96:
In pursuance of the resolution and direction of the Board actions
were taken and dismissal order had been issued to Sri Pannalal Choudhury,
Registrar (under suspension) on 16.8.1996 and his name had been struck off
from the strength of the Regional Engineering College, Silchar Society. The
Board noted the compliance of the action taken.
The Board also noted the actions taken against item Nos.7, 8, 10, 15,
24 and 25 and approved the same.”
30) Reading of the aforementioned four Resolutions passed by the BOG in
juxtaposition in no uncertain terms show that the BOG monitored, dealt with
and eventually decided the case of the respondent in their various meetings
since inception and also authorized the Principal & Secretary to deal with
the same in consultation with the Chairman of Board of Governors and to do
the needful by passing appropriate orders. It is also clear that in the
last meeting held on 22.08.1996, the BOG approved the Resolution passed in
the earlier 68th meeting held on 11.03.1996, which had dealt with the case
of respondent at Item Nos. 6 and 24.
31) In our considered view, the expression “authorization” and “to
take necessary action as the Chairman advises” in Item No. 6 and lastly,
the expression “to do the needful accordingly” in Item No. 24 in the
Resolution dated 11.03.1996 were wide enough to clothe the Principal &
Secretary with a power to pass the dismissal order, if occasion so arises.
32) As rightly argued by the learned counsel for the appellant, the
Resolutions authorizing the Principal & Secretary to pass appropriate
orders rightly, did not use the expression “to dismiss the respondent”
because at that point of time, the departmental inquiry was in
contemplation against the respondent. It was, therefore, not known at that
time as to what would be the outcome of departmental proceedings and
secondly use of such expression in the Resolution before the start of
departmental inquiry could have been construed as prejudging the issue
against the respondent thereby indicating existence of bias attitude of the
Members of the Board of Governors towards the respondent and lastly as said
above, the three expressions used in the Resolution did clothe the
Principal & Secretary with the power to pass appropriate orders which
included the order imposing punishment of dismissal as prescribed in the
Rules, against the respondent depending upon the outcome of the
departmental inquiry and subject to grant of final approval by the BOG.
Indeed the expression “and to take necessary action as the Chairman/Board
advises” and "to do the needful" used in the Resolution were very apt
words rightly used in the resolutions for taking intended action which was
in contemplation, against the respondent.
33) In the light of aforesaid discussion and keeping in mind the contents
of the Resolutions, it is difficult to agree with the view taken by the
High Court that the BOG did not pass the dismissal order but it was passed
by the Principal & Secretary. In other words, keeping in view the contents
of the four Resolutions, we have no hesitation to hold that the dismissal
order dated 16.08.1996 was passed by the BOG and the Principal & Secretary
only signed the order for and on behalf of the BOG on the strength of
authorization made in his favour by the BOG vide Resolution dated
11.03.1996.
34) That apart, the issue in question could be examined from yet another
angle by applying the law relating to "Ratification" which was not taken
note of by the High Court.
35) The expression “Ratification” means “the making valid of an act
already done”. This principle is derived from the Latin maxim “ratihabitio
mandato aequiparatur” meaning thereby “a subsequent ratification of an act
is equivalent to a prior authority to perform such act.” It is for this
reason; the ratification assumes an invalid act, which is retrospectively
validated.
36) The expression “ratification” was succinctly defined by the English
Court in one old case, Hartman Vs. Hornsby reported in 142 Mo 368 44 SW
242, 244 as under:
“ ‘Ratification’ is the approval by act, word, or conduct, of that which
was attempted (of accomplishment), but which was improperly or
unauthorisedly performed in the first instance.”
37) The law of ratification was applied by this Court in Parmeshwari
Prasad Gupta Vs. U.O.I (1973) 2 SCC 543. In that case, the Chairman of the
Board of Directors had terminated the services of the General Manager of a
Company pursuant to a resolution taken by the Board at a meeting. It was
not in dispute that the meeting had been improperly held and consequently
the resolution passed in the said meeting terminating the services of
General Manager was invalid. However, the Board of Directors then convened
subsequent meeting and in this meeting affirmed the earlier resolution,
which had been passed in improper meeting. On these facts, the Court held,
“Even if it be assumed that the telegram and the letter terminating the
services of the appellant by the Chairman was in pursuance of the invalid
resolution of the Board of Directors passed on 16-12-1953 to terminate his
services, it would not follow that the action of the Chairman could not be
ratified in a regularly convened meeting of the Board of Directors. The
point is that even assuming that the Chairman was not legally authorised to
terminate the services of the appellant, he was acting on behalf of the
Company in doing so, because, he purported to act in pursuance of the
invalid resolution. Therefore, it was open to a regularly constituted
meeting of the Board of Directors to ratify that action which, though
unauthorised, was done on behalf of the Company. Ratification would always
relate back to the date of the act ratified and so it must be held that the
services of the appellant were validly terminated on 17-12-1953.”
38) This view was approved by this Court in High Court of Judicature for
Rajasthan Vs. P.P. Singh & Anr. (2003) 4 SCC 239.
39) The aforesaid principle of law of ratification was again applied by
this Court in Maharashtra State Mining Corpn. Vs. Sunil (2006) 5 SCC 96. In
this case, the respondent was an employee of the appellant Corporation.
Consequent to a departmental enquiry, he was dismissed by the Managing
Director of the appellant. The respondent then filed a writ petition
before the High Court. During the pendency of the writ petition, the Board
of Directors of the appellant Corporation passed a resolution ratifying the
impugned action of the Managing Director and also empowering him to take
decision in respect of the officers and staff in the grade of pay the
maximum of which did not exceed Rs. 4700 p.m. Earlier, the Managing
Director had powers only in respect of those posts where the maximum pay
did not exceed Rs.1900 p.m. The respondent at the relevant time was
drawing more than Rs.1800 p.m. Therefore, at the relevant time, the
Managing Director was incompetent to dismiss the respondent. Accordingly,
the High Court held the order of dismissal to be invalid. The High Court
further held that the said defect could not be rectified subsequently by
the resolution of the Board of Directors. The High Court set aside the
dismissal order and granted consequential relief. The appellant then filed
the appeal in this Court by special leave. Justice Ruma Pal, speaking for
three- Judge Bench, while allowing the appeal and setting aside of the
Court held as under :
“The High Court rightly held that an act by a legally incompetent
authority is invalid. But it was entirely wrong in holding that such an
invalid act could not be subsequently “rectified” by ratification of the
competent authority. Ratification by definition means the making valid of
an act already done. The principle is derived from the Latin maxim
ratihabitio mandato aequiparatur, namely, “a subsequent ratification of an
act is equivalent to a prior authority to perform such act.” Therefore,
ratification assumes an invalid act which is retrospectively validated.”
“In the present case, the Managing Director’s order dismissing the
respondent from service was admittedly ratified by the Board of Directors
unquestionably had the power to terminate the services of the respondent.
Since the order of the Managing Director had been ratified by the Board of
Directors such ratification related back to the date of the order and
validated it.”
40) Applying the aforementioned law of ratification to the facts at hand,
even if we assume for the sake of argument that the order of dismissal
dated 16.08.1996 was passed by the Principal & Secretary who had neither
any authority to pass such order under the Rules nor there was any
authorization given by the BOG in his favour to pass such order yet in our
considered view when the BOG in their meeting held on 22.08.1996 approved
the previous actions of the Principal & Secretary in passing the
respondent's dismissal order dated 16.08.1996, all the irregularities
complained of by the respondent in the proceedings including the authority
exercised by the Principal & Secretary to dismiss him stood ratified by the
Competent Authority (Board of Governors) themselves with retrospective
effect from 16.8.1996 thereby making an invalid act a lawful one in
conformity with the procedure prescribed in Rules.
41) In such circumstances, the respondent's grievance that the dismissal
order had not been passed by the competent authority, i.e., the BOG is no
longer survived.
42) In the light of foregoing discussion, we differ with the view taken
by the High Court and accordingly hold that the dismissal order dated
16.08.1996 was passed by the Competent Authority, namely, the BOG as
prescribed in the Rules and hence it was legal and proper. It is
accordingly upheld.
43) As already mentioned above, no other point was urged by the
respondent in the writ petition and also in intra court appeal of the
appellant by filing cross objection therein for assailing the legality and
correctness of the dismissal order on other grounds except the one which we
have decided. It is, therefore, not necessary to go into any other
question.
44) In view of foregoing discussion, the appeal succeeds and is hereby
allowed. The impugned order is set aside. As a consequence, the writ
petition filed by the respondent stands dismissed. No costs.
…….….……............................J.
[VIKRAMAJIT SEN]
…………..................................J.
[ABHAY MANOHAR SAPRE]
New Delhi;
July 01, 2015.
ITEM NO.1C COURT NO.12 SECTION XIV
(For judgment)
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Civil Appeal No(s). 5070/2008
NATIONAL INSTITUTE OF TECHNOLOGY & ANR. Appellant(s)
VERSUS
PANNALAL CHOUDHURY & ANR. Respondent(s)
Date : 01/07/2015 This appeal was called on for pronouncement
of judgment today.
For Appellant(s) Mr. Shuvodeep Roy, AOR
For Respondent(s) Mr. Renjith. B, AOR
M/s Corporate Law Group, Advs.
Hon'ble Mr. Justice Abhay Manohar Sapre pronounced the reportable
judgment of the Bench comprising Hon'ble Mr. Justice Vikramajit Sen and His
Lordship.
The appeal succeeds and is hereby allowed in terms of the signed
reportable judgment.
(R.NATARAJAN) (SNEH LATA SHARMA)
Court Master Court Master
(Signed reportable judgment is placed on the file)