23 May 2014
Supreme Court
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JOGINDER PAL Vs STATE OF PUNJAB

Bench: B.S. CHAUHAN,A.K. SIKRI
Case number: C.A. No.-005589-005605 / 2014
Diary number: 26619 / 2013
Advocates: KAVEETA WADIA Vs


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REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS. 5589-5605 of 2014

JOGINDER PAL & ORS. ETC. .....APPELLANT(S)

VERSUS

STATE OF PUNJAB & ORS. .....RESPONDENT(S)

W I T H

CIVIL APPEAL NOS. 5606-5608 OF 2014

CIVIL APPEAL NOS. 5609-5611 OF 2014

CIVIL APPEAL NO. 5612 OF 2014

CIVIL APPEAL NO. 5613 OF 2014

CIVIL APPEAL NOS. 5614-5621 OF 2014

CIVIL APPEAL NO. 5622 OF 2014

CIVIL APPEAL NO. 5623 OF 2014

CIVIL APPEAL NO. 5624 OF 2014

J U D G M E N T

A.K. SIKRI, J.

One  Mr.  Ravinderpal  Singh  Sidhu  

was the Chairman of the Punjab Public Service Commission (for  

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short,  'PSC')  between  1996-2002.   During  his  tenure  as  the  

Chairman,  some  appointments  were  made  in  the  Executive  

Class–I between 1998-2001, by way of direct recruit as well as by  

nomination,  as provided in the Rules.   Appointments of  judicial  

officers were also made in four batches within the same period.  

On getting tip to the effect that for making such appointments Mr.  

Sidhu had received bribe from many people, raids were conducted  

in  his  house  sometime  in  the  year  2002,  on  more  than  one  

occasion.   A  huge  sum  of  money,  i.e.,  Rs.  16  crores  

(approximately), was recovered from his custody and from other  

relatives of Mr. Sidhu.  This led to lodging of the First Information  

Reports  (FIRs)  against  him,  leading  to  criminal  prosecution  

primarily under the provisions of the Prevention of Corruption Act,  

1988.  In these FIRs, some of the officers of the Executive Branch  

and Allied Services of the Punjab Civil Service (for short, ‘PCS’)  

were also implicated.  Smelling rat in the appointments in the PCS  

Executive Branch and Allied Services Branch, as well as judicial  

appointments, result sheets of the nominated candidates and the  

answer  sheets  of  PCS  Executive  Branch  and  Allied  Services  

Branch  were  seized.   On  going  through  the  same,  Vigilance  

Bureau  of  the  State  of  Punjab  informed  the  Chief  Secretary,  

Punjab that most of the examinations held during the tenure of Mr.  

Sidhu were tainted.  This led to spate of actions taken by the State  

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Government.  In the first instance, the services of all officers in the  

category  of  Nominated  Executive  Officers,  who  were  about  to  

complete their period of probation, were terminated on May 23,  

2002.  This was done by passing orders of termination simpliciter  

purporting  to  be  in  terms  of  Rules,  i.e.,  by  terminating  the  

probation.   Thereafter,  vide  orders  dated  August  24,  2002,  

services  of  the  direct  recruits,  Executive  Class-I  and  II  were  

terminated  by  way  of  dismissal  on  the  premise  that  criminal  

prosecution  had  been launched against  Mr.  Sidhu.   So  far  as  

judicial officers are concerned, the Chief Justice of the High Court  

constituted a Committee to go into the allegations and also the  

news items appearing in the media alleging that wards of some  

sitting Judges of the Punjab and Haryana High Court had been  

favoured  by  the  Chairman  of  the  PSC.   The  said  Committee  

submitted  its  report  recommending  cancellation  of  all  the  

appointments  of  the judicial  officers  who were recruited in  four  

batches from 1998 till 2002.  This report was accepted by the Full  

Court and was sent to the Government.  Initially, the Government  

of  Punjab  raised  a  query  as  to  what  was  the  basis  for  

recommendation  of  cancellation  of  appointments  of  the  1998  

batch candidates, as selection of that batch was not in question.  

Another Committee was constituted and on the basis of report,  

which  was  approved  by  the  Full  Court,  recommendation  was  

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reiterated.  As a consequence, the services of all  these judicial  

officers also came to be terminated.

2)All these persons, who services had been terminated, belonging  

to  Executive,  Allied  Services  as  well  as  Judicial  Branches,  

challenged these actions by filing writ petitions in the High Court.  

We  describe  hereinbelow  the  manner  in  which  the  cases  of  

Executive and Allied Services Branches were dealt with and the  

outcome thereof, as in the present case we are concerned with  

the officers of PCS Executive Branch and Allied Services Branch.  

However, since the judgment rendered by this Court in respect of  

termination of judicial officers has some bearing on the present  

case, we shall take note of the outcome of the cases filed by the  

judicial officers as well.

3)Insofar as PCS Executive Branch and Allied Services Branch  

are  concerned,  a  large  number  of  writ  petitions  were  filed  by  

almost all the officers whose services were terminated; be it direct  

recruits or nominated officers.  The matter was referred to the Full  

Bench,  having regard to the importance of  the question of  law  

involved.  The Full Bench presided by the then Chief Justice of the  

High  Court  and  two  senior  most  Judges,  after  hearing  these  

petitions at length, decided those writ petitions by judgment dated  

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July 07,  2003,  which is  reported as  Amarbir  Singh & Ors.  v.  

State of Punjab & Ors.,  2003 (5) SLR 398.  By means of this  

judgment, the Full Bench dismissed all the writ petitions, thereby  

confirming  the  action  of  the  State  Government  terminating  the  

services of  all  the officers of  PCS Executive Branch and Allied  

Services Branch as well as the judicial officers.  As per the High  

Court, the decision of the Government to terminate the services  

was because of  the reason that  the entire selection process in  

respect of PCS Executive Branch and Allied Services Branch was  

so tainted and vitiated, the Government was left with no alternative  

but to declare the entire selection as null and void.  The case set  

up by the State of Punjab was that during his tenure as Chairman  

of  PSC  from  September  1996  to  March  26,  2002,  Mr.  Sidhu  

completely usurped the powers of the Commission unto himself,  

to the exclusion of all other members, and manipulated the system  

for ensuring the selection of those who had paid money or came  

with the recommendations.  It had relied upon the statements of  

Mr. Jagman Singh, a confident and tout of Mr. Sidhu (who had  

become approver in the criminal case), who disclosed the modus  

operandi adopted by Mr. Sidhu.  It was pointed out that during the  

investigation  it  was  revealed  that  question  papers  and  answer  

scripts were smuggled out of the headquarters of the PSC.  At  

times,  blank  answer  sheets  were  given  to  the  prospective  

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candidates and special instructions were given to the examiners  

towards higher marks to favoured candidates and at  the same  

time less marks were awarded to more meritorious candidates.  

By accepting the bribes to favour such persons, Mr. Sidhu had  

amassed assets  worth Rs.  22 crores.   It  was averred that  the  

entire selection process was completely vitiated and it  was not  

possible to separate the meritorious candidates from others and,  

therefore, a decision was taken to terminate all the appointments.

4)The  High  Court,  after  examining  the  matter,  accepted  the  

aforesaid argument of the State Government to the effect that it  

was  not  possible  to  segregate  the  tainted  candidates  from  

untainted ones, leaving no option for the State Government but to  

cancel the entire selection process.  Few judgments of this Court  

were relied upon to hold that  in such circumstances, when the  

selection process is found to be vitiated, the Administration had a  

right to cancel the selection process and while doing so it was not  

necessary to adhere to the principles of natural justice, which had  

no role to play in matters like these.

5)Aggrieved by the aforesaid judgment in Amarbir Singh’s case  

(supra),  all  these  officers  whose  services  were  terminated  

approached this Court.   Special  leave was granted in all  these  

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petitions and civil appeals were heard and decided by this Court,  

with  lead case known as  Inderpreet  Singh Kahlon & Ors.  v.  

State of Punjab,  (2006)  11 SCC 356.   Since this  judgment  is  

sheet anchor of the appellants before us, in the second round of  

litigation,  we would  like  to  take  note  of  this  judgment  in  some  

detail.

6)It can be easily guessed, as it is so obvious, that the case of the  

appellants in  Inderpreet Singh Kahlon’s  case (supra) was that  

the action of the State Government and the stamp of approval of  

the  High  Court  in  cancelling  the  entire  selection  process  was  

impermissible.  The appellants therein had argued that there was  

no basis for such a finding, namely, the entire selection process  

had been vitiated and it  was necessary for  the Government  to  

separate cases of tainted persons from non-tainted ones and to  

take action against only those who were tainted.  It was argued  

that by not undertaking such an exercise and clubbing together  

tainted as well as non-tainted persons, two unequal classes were  

clubbed together thereby meting out discriminatory treatment qua  

those who were without blemish and it  amounted to violation of  

Articles 14 and 16 of the Constitution of India.  The appellants in  

the  said  case  had  also  argued  that  while  holding  that  entire  

selection process was vitiated by corruption and cancelling  the  

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same after appointees had put in few years of service, the High  

Court had applied the principle of ‘mass cheating cases’, which  

principle  was  applicable  only  in  the  cases  of  examination  in  

academic institutions and not the examination for the purpose of  

public employment.  Pertinently, this Court generally accepted the  

aforesaid submissions of the appellants.  From the reading of the  

judgment, one can discern the following principles:

(a) An  appointment  made  in  violation  of  

Articles 14 and 16 of the Constitution of India would be void.  It  

would  be  a  nullity.   Since  the  services  of  the  appellants  were  

terminated not in terms of the rules but in view of the commission  

of illegality in the selection process involved, the applicability of  

the relevant provisions of  the statutes as also the effect  of  the  

provisions  of  Article  311  of  the  Constitution  need  not  be  

considered.

(b) Before a finding that an appointment has  

been made in violation of Articles 14 and 16 of the Constitution  

can  be  arrived  at,  the  appointing  authority  must  take  into  

consideration the foundational facts.  Only when such foundational  

facts are established, can the legal principles be applied.  When  

the services of employees are terminated inter alia on the ground  

that they might have aided and abetted corruption and, thus, either  

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for  the sake of  probity in governance or in  public  interest  their  

services should be terminated, the court  must  satisfy itself  that  

conditions therefor exist.  The court while setting aside a selection  

may require the State to establish that the process was so tainted  

that the entire selection process is liable to be cancelled.  In a  

case  of  this  nature,  thus,  the  question  which  requires  serious  

consideration  is  as  to  whether  due  to  the  misdeed  of  some  

candidates, honest and meritorious candidates should also suffer.

(c) A distinction exists between a proven case  

of  mass  cheating  for  a  board  examination  and  an  unproven  

imputed  charge  of  corruption  where  the  appointment  of  a  civil  

servant is involved.  Only in the event it is found to be impossible  

or highly improbable that the tainted cases can be separated from  

the non-tainted cases could  en masse orders of termination be  

issued.  Both the State Government as also the High Court in that  

view of the matter should have made all endeavours to segregate  

the tainted from the non-tainted candidates.

(d) Cases  which  may  arise  where  the  

selection process is perceived to be tainted may be categorised in  

the following manner:

(i) Cases where the “event” has been investigated.

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(ii) Cases  where  CBI  inquiry  took  place  and  was  

completed  or  a  preliminary  investigation  was  

concluded.

(iii) Cases  where  the  selection  was  made  but  

appointment was not made.

(iv) Cases  where  the  candidates  were  also  ineligible  

and the appointments were found to be contrary to  

law or rules.

If the services of appointees who had put  

in a few years of service were terminated, compliance with three  

principles at  the hands of  the State was imperative viz.:  (1)  to  

establish satisfaction in regard to the sufficiency of the materials  

collected so as to enable the State to arrive at its satisfaction that  

the selection process was tainted; (2) to determine the question  

that the illegalities committed went to the root of the matter, which  

vitiated the entire selection process.  Such satisfaction as also the  

sufficiency of materials were required to be gathered by reason of  

a  thorough  investigation  in  a  fair  and  transparent  manner;  (3)  

whether the sufficient material present enabled the State to arrive  

at a satisfaction that the officers in majority had been found to be  

part of the fraudulent purpose or the system itself was corrupt.

(e) Once  the  necessary  factual  findings  as  

enumerated  above  are  arrived  at,  or  it  is  found  impossible  or  

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highly improbable  to  separate  tainted from untainted cases,  all  

appointments  traceable  to  the  officers  concerned  could  be  

cancelled.  But admittedly, in the present case, although there had  

been serious imputations against Ravinderpal Singh Sidhu being  

at the helm of the affairs of the State Public Service Commission,  

all decisions made by the Commission during his tenure are yet to  

be set aside.

7)Applying these  principles  to  the facts  of  the case,  the Court  

found that  no candidate for  the year 2001 had been appointed  

and, therefore, persons who were selected in that year were on a  

different footing as merely a person comes in the selected list, he  

has no right to be appointed on that ground.  However, held the  

Court, those who had already been appointed and had completed  

about  three  years  of  service,  some of  them had even passed  

departmental test and some were given higher responsibilities and  

had  even  completed  the  period  of  probation  or  nearing  the  

completion  thereof  and  were  working  to  the  satisfaction  of  the  

authorities concerned, different yardsticks were to be applied while  

terminating their services.  As a matter of fact, the Court found  

that apart from inferences drawn on certain facts and in particular  

the circumstances enumerated by the High Court, it was difficult to  

accept  the  contention  of  the  State  Government  that  it  was  

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absolutely impossible for it  to separate the innocent candidates  

from the tainted ones.  In the opinion of the Court, by appointing  

an independent scrutiny committee it was still possible to sift the  

evidence and separate tainted candidates from the innocent ones.  

The Court also recorded that relevant records were still available  

and  had  not  been  destroyed,  which  included  question  papers,  

answer sheets and other documents.  Since these records were  

still  available,  a  fair  investigation into  the whole  affair  was still  

possible.  Such an exercise was, therefore, needed when it had  

not  been  found  that  all  the  appointments  were  made  on  

extraneous considerations,  including monetary consideration.   It  

was, thus, held that the High Court was not right in applying the  

principle of ‘mass cheating cases’ in the instant case.  The Court  

concluded the matter in the following manner:

(a) If services of appointees who had put in a  

few  years  of  service  are  to  be  terminated,  compliance  with  

following principles by State is imperative: (1) sufficient materials  

are to be collected, to be gathered by thorough investigation in fair  

and transparent manner; (2) illegalities committed must go to the  

root of the matter, vitiating entire selection process; and (3) the  

appointees/officers  in  majority must  be found to  be part  of  the  

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fraudulent  purpose  or  the  system  itself  must  be  found  to  be  

corrupt.

(b) In the present case, above principles not  

having been adhered to and since it could not be said that a fair  

investigation into the suspected selection process to the Punjab  

PCS for the years 1998-2001 was an impossible task, or despite  

availability of a large part of the records a thorough investigation  

had been made so as to arrive at a satisfaction that the entire  

selection process suffered from a large-scale fraud, High Court  

was not right in applying the principle of mass cheating cases in  

the instant case and approve the en masse termination of services  

of the appellants by the State.

(c) Impugned orders of State Government and  

High Court were set aside.  Matters were remitted to High Court  

for  consideration  afresh,  status  quo to  be  maintained  in  the  

meantime.  High Court was directed to constitute two independent  

Scrutiny Committees, one relating to the executive officers and the  

other  to  the judicial  officers.   Various directions were given for  

functioning of  said Committees and expeditious disposal  of  the  

matters, and State was directed to file report in this Court in each  

individual case.  It was further directed to unearth the scam and  

spare no officer involved in wrongdoing, howsoever high he may  

be.

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8)Dealing with the case of judicial officers whose services were  

terminated, the Court took the view that they had not been fairly  

treated by the High Court and deserved better treatment.  In their  

cases also the Court directed fresh inquiry.  That aspect we would  

discuss in detail at the appropriate stage as in the present case  

we are not concerned with the cases of judicial officers.

9)After the judgment in Inderpreet Singh Kahlon’s case (supra),  

a Committee of three Judges of the High Court was constituted  

with the specified task to separate the tainted candidates from the  

non-tainted candidates selected to the executive post by the PSC.  

The  said  Committee  undertook  the  mammoth  and  painstaking  

task with deep scrutiny of the case of each and every candidate.  

This Committee submitted its report dated February 08, 2007.  It is  

pertinent  to note that  the Committee could achieve the task of  

segregating tainted candidates from the innocent ones, meaning  

thereby the Committee could pinpoint those candidates who had  

got selected were selected for oblique considerations.  It meant  

that  others  against  whom  no  such  taint  was  found  had  been  

selected  on  their  own  merit  and  performance  in  the  written  

examination as well as  viva voce.  That is the reason that these  

candidates were put in non-tainted category.  However, even when  

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the Committee was able to achieve this result, as mandated by  

this  Court  in  Inderpreet  Singh  Kahlon’s  case  (supra),  the  

Committee also went into another aspect, namely, whether it could  

be  stated  that  the  process  of  selection  could  be  described  as  

fraudulent, tainted and arbitrary.  Looking into the matter from this  

angle,  the  Committee  came  to  the  conclusion  that  the  entire  

processes of selections to the premier executive post was carried  

out by a well-planned scheme of deception, forgery and fraud and,  

therefore,  deserved to  be set  aside in  their  entirety.   The final  

analysis of the report dated February 08, 2007 is as under:

“Firstly,  it  is  possible to infer that in  the processes of  selection to  which the present  investigation is  limited,  there were 40 tainted candidates.  This inference would,  however, be subject to an opportunity to be afforded to  them during the course of re-hearing of the matter on the  judicial side, in terms of the direction of the Apex Court  in Inderpreet Singh Kahlon’s case (supra).

Secondly,  the  process  of  selection  under  reference  (within  the  ambit  of  investigation  of  the  Vigilance  Department),  can  be  described  as  fraudulent,  tainted  and  arbitrary.   The  said  processes  of  selection  were  clearly  rifle  and abounding with manipulations, carried  out by a well planned scheme of deception, forgery and  fraud; executed for showing favour, or for consideration.  And as such, the entire processes of selection, to the  premier executive posts, which were subject  matter of  investigation at the hands of the Vigilance Department,  deserve to be set aside in their entirety.”

 

10)In  the  light  of  this  report,  the  original  writ  petitions  were  

reheard, as a result of remand of these cases to the High Court,  

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as directed in  Inderpreet Singh Kahlon’s  case (supra).  Matter  

was referred to the five Judge Bench of the High Court.  The High  

Court has accepted the report thereby giving its approval to that  

part of the report as well  which has treated the entire selection  

process  to  be  vitiated.   As  a  result,  all  the  writ  petitions  are  

dismissed again vide judgment of the Full Bench rendered on May  

31, 2013.

11)Insofar as those cases wehre the petitioners were found to be  

tainted  candidates,  after  the  scrutiny  by  the  Committee,  the  

obvious result was that the writ petitions were dismissed on this  

ground.   However, even in respect of non-tainted candidates, the  

High Court has held that it was permissible for the Government to  

cancel  the  entire  selection  process,  once  it  is  found  that  the  

process of selection itself is a result of manipulations carried out  

by a well-planned scheme of deception, forgery and fraud.

12)We will proceed to discuss the cases of tainted and non-tainted  

candidates seperately.

TAINTED CANDIDATES

13)The particulars of candidates who are facing criminal trial are  

as under:

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S.No. Case No. Name Remarks 1. CA Nos. 5606-5608/2014 Jiwan Kumar GargKamal Kumar PCS (EB) Direct 2. CA No. 5622/2014 P.S. Sodhi PCS Nominated

3. CA Nos. 5614-5621/2014

O.P. Verma Inderdeep Kahlon Jasbir Singh Toor H.L. Bansal Parvinderpal Singh Jarnail Singh Balraj Kaur Rajinder Sidhu

PCS Nominated

4. CA No. 5623/2013 Bhupinderjit Singh PCS Nominated

14)As far  as these cases are concerned, they hardly pose any  

challenge.  As it  is specifically found that the aforesaid persons  

have indulged in unfair means and have been selected either by  

paying bribe or because of other extraneous reasons and not on  

their merit, their writ petitions have been rightly dismissed by the  

High Court.  It was argued by Mr. Manoj Swarup, learned counsel  

appearing for these appellants, that those who are facing trial may  

be acquitted after investigation.  Likewise, some of those who are  

even convicted, their appeals are pending and there is a possibility  

that their appeals are allowed thereby setting aside the conviction.  

Therefore, such a decision to terminate their services could not  

have been taken at this stage.

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This argument is totally unimpressive  

and does not hold any water.  Such candidates who were selected  

with unfair and illegal means cannot have the audacity to say that  

they should be reinstated in service and allowed to continue till  

their appeals are decided.  In any case, having found that they are  

tainted candidates and their entry into public service was soiled,  

the decision to terminate their services becomes perfectly justified.  

In respect of these appellants, the High Court has found that FIRs  

have  been  registered  against  them and  they definitely  carry  a  

trace,  stain  or  blemish  that  they  were  tainted.   FIRs  were  

registered  when  during  investigation  the  Vigilance  Bureau  

recorded statements of  Mr. Sudhu,  Jagman Singh and Randhir  

Singh  Gill  under  Sections  161  and  164  Cr.P.C.   The  modus  

operandi  of  conducting  the  manipulations  in  the  written  

examination was disclosed by them.  Question papers were given  

to Mr. Jagman Singh to be shown to the candidates who were to  

appear in the written examination conducted by the PSC.  The  

same were to be collected from the official residence of Mr. Sidhu,  

i.e. House No. 914, Sector-39, Chandigarh, and some times to be  

collected from Mrs.  Pritpal  Kaur,  the mother  of  Mr.  Sidhu from  

House No. 549, Sector-10, Chandigarh.  Candidates were then  

shown  these  question  papers  during  the  night  preceding  the  

examination at the residence of Mr. Jagman Singh.  The above  

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procedure was also followed at the residence of the mother of Mr.  

Sidhu.   Mr.  Jagman  Singh  was  deputed  to  the  residences  of  

influential  persons  for  showing  the  question  papers  to  the  

concerned candidates.

In  this  backdrop,  the  High  Court  rightly  

covered  these  persons  as  tainted  persons,  ascribing  following  

meaning to the expression 'taint':

“The word 'taint' as per the New Shorter Oxford English  Dictionary  (Vol.-II)  can  be  expressed  to  mean  a  trace,  'stain'  or  a  'blemish'.   It  denotes  some  evil  quality,  a  contaminating or corrupting influence.  It can lead to mean  an imbue with any thing objectionable or to contaminate or  infect.   The  word  'taint'  when  used  as  a  verb  means  dishonest, destroy integrity, vitiate, tarnish and degenerate  morally.”

Therefore,  all  these  appeals  are  

dismissed,  except  Civil  Appeal  No.  5606  of  2014 filed  by one  

Randeep Singh, inasmuch as against him no case is registered as  

he is ultimately found innocent.  We shall deal with his case along  

with non-tainted candidates.

NON-TAINTED CANDIDATES/DIRECT RECRUITMENT

15)The particular of those appellants who fall in this category of  

non-tainted candidates are as under:

S.No. Case No. Name Remarks 1. CA No. 5589/2014 Joginder Pal

Balkaran Singh Shishpal Mandeep Singh

Tehsildar

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Baljinder Singh Gurdev Singh Ramesh Kumar

2. CA No. 5590/2014 Sarabjot Singh Sidhu ETO 3. CA No. 5591/2014 Harcharan Singh PCS (EB) 4. CA No. 5592/2014 Amarjit Singh PCS (EB) 5. CA No. 5593/2014 Gurjit Singh PCS (EB) 6. CA No. 5594/2014 Jagjit Singh PCS (EB) 7. CA No. 5595/2014 Anita Darshi PCS (EB) 8. CA No. 5596/2014 Jaspal Singh Gill PCS (EB)

9. CA No. 5597/2014 Rajan Sharma Prabhjot Singh Dilbagh Singh

EO

10. CA No. 5598/2014 Balwinder Singh AR 11. CA No. 5599/2014 Raj Singh DFSO 12. CA No. 5600/2014 Rupinder Pal Singh PCS (EB) 13. CA No. 5601/2014 Monish Kumar PCS (EB) 14. CA No. 5602/2014 Rajesh DhimanHarsuhinder Pal Singh PCS (EB) 15. CA No. 5603/2014 Paramjit Singh PCS (EB) 16. CA No. 5604/2014 Surinder Kaur PCS (EB) 17. CA No. 5605/2014 Manpreet Kaur ETO 18. CA No. 5612/2014 Rubinderjit Singh Brar PCS (EB) 19. CA No. 5613/2014 Sukhpreet Singh Sidhu PCS (EB)

20. CA No. 5609-5611/2014 Amit Talwar Rajdeep Brar Gaurav Duggal Ramandeep Pandher

PCS (EB) PCS (EB)

AR AR

21 CA No. 5624/2014 Bikramjit Shergill PCS (EB)

Before discussing these cases, we would  

like  to  have  a  peek  into  the  Report  of  the  Committee  dated  

February 08, 2007, which is placed on record.

REPORT OF THE COMMITTEE DATED FEBRUARY 08, 2007

16)The report  starts with noticing the directives of  this Court  in  

Inderpreet Singh Kahlon’s case (supra).  It specifically mentions  

that to implement the directions contained in the said judgment,  

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the then Acting Chief Justice had constituted a Committee of three  

Judges “to submit a report, on the basis of investigations carried   

out by officers of the State Government, so as to separate the   

tainted candidates from the non-tainted candidates,  selected to   

executive posts by the Punjab Public Service Commission, during  

the Chairmanship of Shri  Ravinderpal Singh Sidhu”.  Thus, the  

Committee knew the scope of exercise which it was to carry out,  

namely, to separate the tainted candidates from the non-tainted  

candidates.  This aspect is thereafter gone into in detail with in-

depth scrutiny and analysis  of  the records and material  placed  

before it,  which not only pertained to the selection process, i.e.  

question and answer sheets, etc., but also records which surfaced  

during investigation into the FIRs filed against Mr. Sidhu and other  

persons,  including  some  of  those  who  were  the  selected  

candidates.  No doubt, it was a mammoth task and it goes to the  

credit  of  the  Committee  that  it  could  successfully  achieve  the  

same.   After  detailed  and  thorough  analysis  of  all  cases  

individually, the Committee was able to separate grain from the  

chaff, notwithstanding some handicaps which came its way and  

are specifically pointed out in the Report.

17)The following observations, after noticing and examining each  

case individually and separately, need a reproduction as it depicts  

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the  state  of  mental  and  physical  exercise  carried  out  by  the  

Committee:

“8.   Having  narrated  and  summarized  the  factual  sequence emerging from the investigation carried out by  the officers of the Vigilance Department, the next step is  to record conclusions.  Before attempting to record our  conclusions, we have considered it appropriate to deal  with.   (sic)  The  veracity  of  the  statements  of  Shri  Jagman Singh son of Shri Autar Singh Sekhon, and Shri  Randhir  Singh  Gill  son  of  Shri  Kirpal  Singh  as  their  statements are likely  to have a strong bearing on the  eventual  outcome  of  the  task  entrusted  to  us.  Accordingly,  we  have  examined  the  veracity  of  their  statements  in  sub-paragraph  (A),  hereunder.   In  this  paragraph,  it  is  also  necessary  to  examine  the  handicaps,  which  confronted  the  Investigating  Agency  during the course of its deliberation.  The Committee on  several  occasions  felt  that  on  some  aspects,  further  material should have been collected during the course of  investigation.  These handicaps have been summarized  in  sub-paragraph  (B)  hereunder.   In  rendering  our  conclusions, based on the investigation process carried  on by the Vigilance Department of the State Government  we have in  sub-paragraph (C),  hereunder,  carried out  the  task  of  identifying  the  tainted  candidates  i.e.  the  candidates who, according to the Investigating Agency,  are  shown  to  have  managed  and  manipulated  their  recommendations  at  the  hands  of  the  Punjab  Public  Service  Commission,  for  reasons  other  than,  or  in  addition to their  own merit.   In sub-paragraph (D),  we  have  recorded  our  conclusions  in  terms  of  the  parameters expressed in Inderpreet Singh Kahlon’s case  (supra) i.e.:  whether or not it  is  possible to separately  identify  the  tainted  candidates  from  the  untainted  candidates,  and  if  not,  whether  there  is  sufficient  material  gathered  by  the  Investigating  Agency  to  conclude, that the entire process of selection was bad,  as  such,  deserved  to  be  set  aside  in  terms  of  the  parameters laid down in Inderpreet Singh Kahlon’s case  (supra).”

18)Further discussion ensued on the aforesaid parameters and in  

para  8(C)  appears  the  list  of  40  persons  who,  as  per  the  

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investigation  carried  out  by  the  Vigilance  Department  and  the  

compilation made by the Committee, ensured their  selection by  

way of  manipulation.   Out  of  these who have approached this  

Court,  their  cases  have  already  been  dealt  with  in  the  first  

category  resulting  in  the  dismissal  of  their  appeals.   The  

Committee, thus, found that others, namely, the appellants herein,  

were  not  tainted.   It  thereafter  proceeded  further  to  deal  with  

another  aspect,  namely,  whether  the  entire  selection  process  

could be said to be vitiated.   

19)The  Committee  has  recorded  its  reasons  for  the  aforesaid  

answer/conclusion and concluded at the end that the processes of  

selection  were  clearly  rife  and  abounding  with  manipulations,  

carried out by a well-planned scheme of deception, forgery and  

fraud; executed for showing favour or for consideration.  As such,  

the  Committee  opined  that  the  entire  processes  of  selection  

deserved to be set aside in their entirety.

IMPUGNED JUDGMENT

20)After taking note of the seminal facts relating to the raids on Mr.  

Sidhu, the judgment discusses the importance of PSCs, their role  

and  their  duties,  responsibilities  as  well  as  expectation  of  a  

common man who is, as per the Preamble to the Constitution of  

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India, entitled to equality of status and opportunities.  Thereafter, it  

poses three questions which needed consideration by the Court as  

under:

“1)  Whether  23  selected  candidates  who  are  facing  criminal trial can be described to be tainted:?

2)  Whether the selection of other candidates who are  not facing criminal trial can be described to be vitiated,  in  view  of  the  detailed  investigation  carried  out  by  Punjab Vigilance Bureau?

3)   Whether  the State  Government  was fair  in  giving  chance  of  second  examination  in  2003  to  all  the  candidates?”

Insofar  as  the  first  question  is  

concerned, we have already dealt with and discussed the same  

while dealing with the first  category of cases.   It  is  the second  

question which concerns this Court at this juncture.

21)After taking note of and discussing various judgments where  

the Court upheld the action of the Government in cancelling the  

selection process when found to  be vitiated on account  of  not  

following the procedure of  selection,  smacks of  mala fides  and  

malpractices, the Full Bench held that here also the entire process  

suffered from manipulations and was to be treated as vitiated.

OUR CONCLUSION AND REASONS IN SUPPORT

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22)From the Report of the Committee dated February 08, 2007,  

constituted  on  the  directions  of  this  Court  in  the  case  of  

Inderpreet Singh Kahlon  (supra), which has been accepted by  

the High Court, it is apparent that the Committee has not found  

anything against  these 21 persons, in respect of  whom we are  

deliberating on the issue involved.  At the same time, on going  

through  the  process,  the  Committee  was  of  the  view that  the  

selection process was vitiated and, therefore, the result warranted  

to be cancelled in its entirety, including that of these non-tainted  

persons as well.

23)The question that falls for consideration is as to whether the  

entire process could be labelled as vitiated because of purported  

manipulations, forgery and fraud?  Or, to put it otherwise, once the  

non-tainted persons are segregated from tainted ones, would it  

still  be  justified  to  quash  the entire  selection,  even  when non-

tainted made into the service because of their merit?   

24)It was argued by Mr. Raju Ramachandran and Mr. Gurminder  

Singh, learned senior counsel appearing for the appellants, that  

the mandate of  Inderpreet Singh Kahlon (supra) was limited to  

one  aspect  only,  namely,  to  segregate  the  cases  of  tainted  

candidates from non-tainted ones, if it was possible.  It was their  

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submission that after this task was successfully accomplished by  

the  Committee,  there  was  no  occasion  to  go  into  the  second  

aspect,  which  was  not  part  of  any  direction  of  this  Court  in  

Inderpreet Singh Kahlon (supra).  It was further argued that the  

findings  on  two  aspects  are  self-contradictory.   Once  it  was  

accepted that some of the candidates were innocent, who entered  

the  service  by  virtue  of  their  merit  and  not  because  of  any  

extraneous  considerations  and  these  candidates  should  be  

segregated as well,  such a finding to the effect  on the second  

aspect that the entire selection process was vitiated could not be  

arrived at.

25)We  find  force  in  the  aforesaid  argument  advanced  by  the  

learned senior counsel appearing for the appellant in these set of  

appeals.The  two  conclusions  of  the  High  Court  appear  to  be  

antithetical.  Once it  is  found that  segregating tainted from non-

tainted  is  possible  and  is  achieved  also,  other  conclusion  is  

incompatible with the first one.  

26)We have already narrated the background in which judgment in  

Inderpreet  Singh Kahlon  (supra)  was rendered by this  Court.  

Those were the appeals filed against the Full Bench judgment in  

Amarbir Singh (supra) where the Court had held that the action  

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of the Government in cancelling the entire selection process was  

justified.  This very conclusion of the Full Bench was challenged  

by  the  appellants  in  Inderpreet  Singh  Kahlon (supra)  with  

specific  plea  that  it  was  not  a  case  for  cancelling  the  entire  

selection process and, in the first instance, the Court should have  

attempted to find out as to whether cases of the candidates who  

were  tainted  could  be  segregated  from  those  who  were  

unblemished. The court was convinced with the submission. While  

setting  aside  the  judgment  and  remanding  the  case  back,  the  

Court  went  to  the  extent  of  holding  that  by  clubbing  together  

tainted as well as non-tainted persons, two unequal classes were  

clubbed together and it amounted to violation of Articles 14 and 16  

of the Constitution of India.  It was also held that no attempt was  

made in this direction, namely, whether there was a possibility of  

segregating the two classes of persons.  The Court found that as  

the relevant records were still available a fair investigation into the  

whole affair was possible.  We would like to reproduce hereunder  

some portions of  the judgment of  S.B.  Sinha,  J.  in  Inderpreet  

Singh Kahlon (supra) touching upon this aspect:

“43.  Apart from inferences drawn on certain facts and in  particular  the  circumstances  enumerated  by  the  High  Court which have been repeated by the learned counsel  for the State before us, it is difficult to accept that it was  demonstrated  by  the  State  that  it  was  absolutely  impossible for it  to separate the innocent people from  the tainted ones.

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xx   xx   xx

45.  If  fraud in the selection process was established,  the State should not have offered to hold a reselection.  Seniority of those who were reselected ordinarily could  not have been restored in their favour.  Such an offer  was evidently made as the State was not sure about the  involvement of a large number of employees.

46.   A distinction  moreover  exists  between  a  proven  case of mass cheating for a board examination and an  unproven  imputed  charge  of  corruption  where  the  appointment of a civil servant is involved.

xx   xx   xx   50.  In those cases also tainted cases were separated  from the non-tainted cases.  Only, thus, in the event it is  found to be impossible or highly improbable, could en  masse orders of termination have been issued.

51.  Both the State Government as also the High Court  in  that  view  of  the  matter  should  have  made  all  endeavours  to  segregate  the  tainted  from  the  non- tainted candidates.

xx   xx   xx   59.  In a case of this nature, thus, the question which  requires serious consideration is as to whether due to  the misdeed of some candidates, honest and meritorious  candidates should also suffer.”

27)After noticing the aforesaid features, the directions which are  

given for  setting up of  the Committee to go into the issue are  

contained in para 94, which reads as under:

“94.  The impugned judgment as also the orders of the  State Government and the High Court are, thus, liable to  be set  aside and directions are issued.   Although the  impugned judgments cannot be sustained, we are of the  opinion that the interest of justice would be subserved if  the  matters  are  remitted  to  the  High  Court  for  consideration  of  the  mattes  afresh.   However,  with  a  view to segregate the tainted from the non-tainted, and  

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that in the interest of justice the High Court should be  requested  to  constitute  two  independent  Scrutiny  Committees – one relating to the executive officers and  the other relating to the judicial officers.”

28)It becomes crystal clear that the concern of the Court was that  

for  the  misdeeds  of  some  candidates,  honest  and  meritorious  

candidates  should  not  suffer.   Therefore,  endeavour  should  be  

made to segregate the tainted candidates from those who were  

without any stigma and had been selected because of their sheer  

merit and not on account of any illegal considerations.  We would  

also  like  to  reproduce  some  of  the  parts  of  the  concurring  

judgment authored by Justice Dalveer Bhandari (as His Lordship  

then was) with the aforesaid message, eloquently and impeccably:

“118. Undoubtedly,  in  the  selection  process,  there  have been manipulations and irregularities at the behest  of R.S. Sidhu, the then Chairman, Punjab Public Service  Commission.   On  careful  scrutiny  of  the  facts  and  circumstances of the case, in my considered opinion, the  High Court ought to have made a serious endeavour to  segregate the tainted from the non-tainted candidates.  Though the task was certainly difficult, but by no stretch  of imagination, it was not an impossible task.

xx xx xx

124. The High Court has not considered the case in  the proper perspective. The consequences of en masse  cancellation  would  carry  a  big  stigma  particularly  on  cancellation of the selections which took place because  of  serious  charges  of  corruption.  The  question  arises  whether for the misdeeds of  some candidates,  honest  and good candidates should  also suffer  on en masse  cancellation  leading  to  termination  of  their  services?  Should those honest candidates be compelled to suffer  

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without there being any fault on their part just because  the respondents find it difficult to segregate the cases of  tainted candidates from the other candidates?  The task  may  be  difficult  for  the  respondents,  but  in  my  considered  view,  in  the  interest  of  all  concerned  and  particularly  in  the  interest  of  honest  candidates,  the  State  must  undertake  this  task.  The  unscrupulous  candidates should not be allowed to damage the entire  system in such a manner where innocent people also  suffer great ignominy and stigma.

125. This  Court  had  an  occasion  to  examine  a  similar controversy in the case of Onkar Lal Bajaj's case  (supra).  In that case, there were serious allegations of  political  patronage  in  allotment  of  retail  outlets  of  petroleum  products,  (LPG  distributorships  and  SKO- LDO dealerships).   This Court laid down that how could  a large number of candidates against whom there was  not even insinuation be clubbed with handful  of  those  who  were  said  to  have  been  allotted  dealerships/distributorships  on  account  of  political  connection and patronage?   This Court clearly stated  that the two were clearly unequals.  Equal treatment to  unequals  is  nothing  but  inequality.   This  is  the  most  important  principle  which  has  been  laid  down in  this  case by this Court.  The Court further observed that to  put both the categories, tainted and the rest, on par is  wholly  unjustified,  arbitrary  and unconstitutional,  being  violative of Article 14 of the Constitution.  In somewhat  similar  circumstances,  in  this  case,  the  Government,  instead of discharging its obligation, unjustly resorted to  the  cancellation  of  all  the  allotments  en  masse  by  treating  unequals  as  equals  without  even prima  facie  examining their cases.  Those officers whose services  were affected because of en masse cancellation have  not been given an opportunity to represent before the  concerned authorities.   In the case of  Onkar Lal Bajaj  there were 413 cases and the task was indeed difficult to  segregate  the  cases  of  political  connection  and  patronage with other cases.  But, even then, this Court  while,  setting  aside  the  order  of  the  Government  cancelling the allotment, appointed a Committee of two  retired Judges, one of this Court and another from the  Delhi High Court, and they were requested to examine  all  413 cases and decide  the matter  after  getting the  report from that Committee appointed by the Court.”

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29)In  view of  the  above,  the  issue  of  entire  selection  process  

having been vitiated would have arisen only if the findings of the  

Committee were that it was not possible to distinguish the cases  

of tainted from the non-tainted ones and there was a possibility  

that all of them would have got the benefit of wrong doings of Mr.  

Sidhu and his accomplices.  Fortunately for these appellants, it is  

not  so  as  they have  been found  innocent.  The  appellants  get  

ensconced, earning a safe place, once they are removed from the  

category  of  nefarious  persons.  Though  the  tainted  candidates  

have rightly received their comeuppance, but the innocent persons  

cannot be punished with them. Thus, it  is difficult to accept the  

fallibilistic conclusion of the High Court.  

30)We  have also gone through the reasons given by the High  

Court in the impugned judgment, in support of the conclusion that  

the entire process is to be treated as vitiated. We find that reasons  

are the same which were placed earlier before the High Court by  

the Government in Amarbir Singh's case (supra) and they were  

very  much  before  this  Court  as  well  when  the  judgment  in  

Inderpreet Singh Kahlon (supra) was rendered. Without alluding  

to them in detail, we may say in nutshell that the reasons given  

pertain to the conduct and role of Mr. Sidhu and his accomplices  

who had taken money/bribes from some of the candidates or had  

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given undue favour to some other candidates because of other  

influences.  The material discussed is the allegations in various  

FIRs and statements of Mr. Jagman Singh, a confident and tout of  

Mr. Sidhu (who had become approver in the criminal case), and  

others  recorded  under  Section  161  of  the  Code  of  Criminal  

Procedure,  1973 and the cases in  the criminal  trial.   However,  

even after noticing these very reasons, this Court had held that  

those  who  are  innocent  cannot  be  punished  because  of  the  

misdeeds  of  Mr.  Sidhu  in  showing  favour  to  other  tainted  

candidates.

31)There is yet another reason to hold that these persons who  

have  come up  clean,  meaning  thereby,  who have  entered  the  

service by passing the examination on their own merits, should be  

allowed to continue in the Government service.  We have already  

mentioned in the earlier part of the judgment, while discussing the  

case of Inderpreet Singh Kahlon (supra), that the Court had not  

approved the recommendation of the High Court, on the basis of  

which the Government had acted, in respect of the judicial officers  

whose services were also terminated.  It is not necessary to state  

in detail  the reasons given by the Court  while condemning the  

action of terminating the services of the judicial officers, which was  

taken in undue haste.  The Court had also remarked that all these  

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judicial officers were subjected to viva voce/interview test as well,  

which was conducted as per  Rule 17(a)(iii)  of  the Punjab Civil  

Services (Punishment and Appeal) Rules, 1970, and no breach of  

the  aid  Rule  had  been  pointed  out.   The  Committee  which  

interviewed these judicial  officers included a Judge of the High  

Court as well.  The Court categorically observed that there may be  

some  cases  where  marks  had  been  given  for  extraneous  

considerations, but only because there was such a possibility, the  

same by itself, without analysing more, may not be a ground for  

arriving  at  a  conclusion  that  the  entire  selection  process  was  

vitiated.   The  direction  was,  accordingly,  given  to  consider  the  

entire matter afresh.

32)After remand the Writ petitions of these judicial officers were  

decided by the High Court in the case titled as  Sirandip Singh  

Panag  v.  State of Punjab,  2008 (4) RSJ 288.  The High Court  

had allowed those petitions. The said judgment of the High Court  

was challenged before this Court in the matter of  High Court of  

Punjab and Haryana at Chandigarh v. State of Punjab & Ors.,   

(2010)  11  SCC  684.   This  Court,  by  means  of  the  aforesaid  

judgment,  upheld  the  decision  of  the  High  Court.   The  Court  

specifically  noted that  after  the  directions  in  Inderpreet  Singh  

Kahlon  (supra), a Committee of  three  Judges was constituted  

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which undertook this exercise and submitted its report.  It was a  

fractured report where two learned Judges of the Committee were  

of  the  view that  entire  selection  process  was vitiated  and  one  

Judge had appended his dissent thereto on the ground that only  

those who were found to be tainted and were segregated by the  

Committee should be dismissed from service and not the non-

tainted officers.  No doubt, while upholding the directions of the  

High Court, this Court made it clear that it was not to be construed  

as giving seal of approval to the judgment of the High Court.  At  

the same time, the Court also stated, in so many words, that in  

order to work out the equities and to do complete justice, that it  

was proper to allow those judicial officers to continue in service  

who were found to be untainted.  It would be apposite to quote the  

following portion of the said judgment in this behalf:

“26.  It is not in dispute any more that the candidates  were given fresh opportunity to appear for selection for  the aforesaid post in the exams exclusively held for them  in  the  year  2004.   Out  of  57  such  candidates,  20  candidates were reslected and they were given benefit  of original appointment.  As many of these candidates  are the respondents and have worked as judicial officers  for  some  period  and  it  has  also  not  been  proved  or  established  completely  against  them  that  they  had  indulged in malpractice in examinations, we are of the  view that they should also be given reappointment and  posting orders to the existing vacancies in the State of  Punjab and if no vacancy exists, Mr. Sharan has assured  the court that the State will create supernumerary posts  for  them but  they would not  be entitled to  get  all  the  benefits  as  have  been  granted  to  them  vide  the  impugned judgment.

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27.   However,  it  should  not  be  construed  that  our  judgment is giving seal of approval to the judgment of  the Full  Bench of the Punjab and Haryana High Court  but with an intention to work out the equities and to do  complete justice between the parties and in view of the  earlier judgment of his Court in Kahlon case that tainted  candidates  be  separated  from  untainted,  meaning  thereby that  this  Court  did  not  accept  the submission  that it was not practically possible to do so; and further  this Court had taken note of reselection held in 2004 in  para 92 of the judgment, but held that the effect thereof  would be subject to this case, this is the only via media,  through which the respondents  could  also  be  granted  relief as it could not be established that even otherwise,  they  would  have  been  declared  as  unsuccessful  candidates.   Precisely,  that  is  the  reason  we  have  moulded the reliefs granted to the respondents by the  High Court as our order is not likely to affect seniority of  any  of  the  judicial  officers,  who  had  already  been  working prior to the respondents.  We are conscious of  the fact that by this procedure, there is no likelihood of  any offshoots of the said order and hopefully the whole  controversy  triggered  in  the  year  1998,  would  stand  settled for all times to come.”

33)There is yet another crucial development which needs to be  

mentioned here.  In the first instance, it  is the State which had  

taken a decision to cancel the entire selection process.  However,  

after  the  remand  order  passed  in  Inderpreet  Singh Kahlon’s  

case (supra), in the exercise done by the Committee screening out  

the tainted from non-tainted candidates, the State came forward  

and showed its  willingness to take back  these candidates who  

were non-tainted and were selected on the basis of their merit.  A  

specific affidavit to this effect was filed in the High Court.  To the  

same effect the affidavit has been filed before us also.  We are of  

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the opinion that once those untainted officers, who were appointed  

under  the  same  environment,  have  been  allowed  to  continue,  

there is no reason to deprive this benefit of such recourse to the  

PCS (Executive Branch) and Allied Services.  We may note that  

the High Court has recorded in the impugned judgment that 66%  

cases were found to be of the persons given appointment who  

were  tainted,  which  influenced  the  entire  selection  process.  

However, during the course of arguments, it was placed before us  

that the aforesaid percentage is worked out by taking the cases of  

direct recruits and nominated candidates together.  If the figures  

are separately taken, out of 93 direct recruits, 76 have joined and  

only 10 are found to be tainted.  In fact, the percentage of such  

tainted candidates in nominated category was much higher, i.e.  

80%.  It was, thus, argued that the cases of direct recruits cannot  

be taken along with those in nominated category, who influenced  

the decision in their matter as well.  This is also a supportive and  

important fact which goes in favour of these appellants viz. the  

non-tainted direct recruits.

34)The aforesaid discursive exercise prompt us to set aside the  

judgment of the High Court in respect of these persons with the  

direction that the appellants be allowed to join the duties forthwith.  

It is, however, made clear that the intervening period during which  

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they remained out of service shall not count for seniority or any  

other benefit.  However, these persons shall be given the benefit  

of service rendered by them earlier viz. from September 1999 till  

May 22,  2002,  when  they  actually  worked,  for  the  purpose  of  

seniority  and  future  promotion,  etc.    These appeals are partly  

           allowed to the aforesaid extent.  

There shall, however, be no order as to costs.

 

.............................................J. (DR. B.S. CHAUHAN)

.............................................J. (A.K. SIKRI)

NEW DELHI; MAY 23, 2014.

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