23 January 2013
Supreme Court
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RAJESH GUPTA Vs STATE OF J&K .

Bench: SURINDER SINGH NIJJAR,ANIL R. DAVE
Case number: C.A. No.-000952-000952 / 2013
Diary number: 14980 / 2011
Advocates: DINESH KUMAR GARG Vs SUNIL FERNANDES


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REPORTABLE    IN THE SUPREME COURT OF INDIA   CIVIL APPELLATE JURISDICTION

   CIVIL APPEAL NO.952 OF 2013  (Arising out of S.L.P.(C) No.14065 of 2011)

RAJESH GUPTA Appellant(s)

       Versus

STATE OF JAMMU AND KASHMIR AND OTHERS Respondent(s)

      O R D E R 1. Leave granted. 2. We have heard learned counsel for the parties. 3. This appeal is directed against the judgment and order  of the Division Bench dated 28th February, 2011 passed by  the High Court of Jammu and Kashmir at Jammu in L.P.A.(SW)  No. 20 of 2008 whereby the Division Bench confirmed the  judgment  and  order  passed  by  the  learned  Single  Judge  dismissing the Writ Petition(S) No. 622 of 2005 by judgment  and order dated 29th January, 2008, wherein the appellant  had  challenged  the  order  passed  by  the  respondent-State  dated 26th April, 2005 prematurely retiring the appellant  from service.   4. We may briefly notice the relevant facts leading to the  filing of the writ petition in the High Court. 5. Upon being selected by the Jammu and Kashmir Public  Service  Commission,  the  appellant  was  appointed  as  Soil  Conservation  Assistant  in  the  Department  of  Agriculture  

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Production  in  March,  1981.   On  20th April,  1985  he  was  posted  as  Assistant  Engineer  in  Rural  Engineering  Wing  (hereinafter referred to as 'REW'), Ramban, District Doda,  Jammu  and  Kashmir.   He  was  promoted  on  the  post  of  Assistant  Executive  Engineer  in  REW  in  September,  1988.  While he was posted as such, three separate criminal cases  were registered against him on the basis of (i) F.I.R. No.  49 of 1991, (ii) F.I.R. No. 63 of 1994 and (iii) F.I.R. No.  11  of  1995.   It  is  not  disputed  before  us  that  upon  investigation in all the matters, the allegations made in  all the three FIRs were found to be ‘Not Proved’. In F.I.R.  No. 11 of 1995, there was, however, a recommendation to  initiate departmental action against the appellant and some  other officers.  It is also not disputed before us, that no  departmental action was ever taken against the appellant.  Record also does not show that any departmental action was  taken against him. After completion of the investigation in  F.I.R. No. 11 of 1995, the appellant was, in fact, promoted  to the post of Executive Engineer on 15.12.1996.  In spite  of having been promoted, the order of promotion was not  given effect to.  Therefore, the appellant challenged the  action of the Deputy Commissioner, Udhampur who had refused  to give effect to the order of promotion by filing a writ  petition in the High Court.  The writ petition was allowed  and  thereafter  the  appellant  was  permitted  to  join  as  Executive  Engineer  on  6th February,  2003.   He  worked  as  Executive Engineer at Jammu till 8th May, 2003. During this  

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period,  in  the  performance  of  his  official  duty,  the  appellant  was  required  to  recommend  the  sanctioning  of  technical  approval  to  the  construction  works  of  various  projects.  

6. On  5th March,  2003,  the  Government  of  Jammu  and  Kashmir,  General  Administration  Department  by  Government  Order No. 306-GAD of 2003 dated 5th March, 2003 constituted  a Committee to consider the cases of officers/officials for  premature retirement in terms of Article 226(2) and 226(3)  of the Jammu and Kashmir Civil Services Regulations, 1956.  On 1st April, 2003, further directions were issued by the  Government  indicating  the  circumstances  which  would  be  relevant  for  making  a  recommendation  for  premature  retirement  of  a  public  servant.   On  9th May,  2003  the  appellant was directed to be attached to the office of the  Director, Rural Development, Jammu pending an enquiry into  some allegations on the appellant. On      22nd July, 2003,  an  enquiry  report  was  submitted  into  the  suspected  irregularities  in  the  execution  of  “Rural  Development  Works” in the eleven Blocks of Jammu and Kashmir. Clause 1  of the terms of reference of the enquiry related to the  execution of works during 2002-2003 particularly during the  month of March, 2003. It was as under:-

“Whether any irregularity has been committed  in  any  blocks  of  District  Jammu  in  the  execution of works during the year 2002-2003  particularly during the month of March, 2003 in  the matter of observing the coral formalities  viz. issuing of technical sanction, approval of  

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estimates and allotment of works to mates, test  checks etc.”

 7. As noticed earlier, the appellant was working as the  Executive  Engineer  at  Jammu  at  the  relevant  time.  Therefore, during the performance of his official duty, he  was  required  to  issue  technical  sanctions,  approve  estimates and allot work to mates as well as conducting  test checks of the works allotted by the Block Development  Officer.  The conclusion recorded by the inquiry officer is  as under:-

“The Executive Engineer, Rural Engineering  Wing, Jammu has also confessed having accorded  such  sanctions  on  spot.   All  this  clearly  indicates  that  no  proper  records  have  been  maintained  by  that  office  and  some  sanctions  have  been  issued  out  of  record.   No  record/register  of  bills/test  checks  has  been  maintained.  

Regarding  accord  of  back  dated  technical  sanctions  and  delays,  it  could  not  be  established  with  evidence  that  their  existed  some  back  dated  technical  sanctions  or  there  were delays in accord of technical sanctions and  clearance  of  bills.   However,  the  casual  and  haphazard manner of maintenance of records could  be a probable pointer towards the direction.”  

8. The  Inquiry  Officer  further  records  that  Block  Development Officers have taken up number of works without  technical  sanctions  which  was  contrary  to  the  standing  rules  governing  execution  of  work.   The  Inquiry  Officer  further observed that the Executive Engineer, REW, Jammu,  i.e. the appellant, has not maintained the proper record of  technical sanctions and test checks.  Non-maintenance of  

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the important records has resulted in mismanagement owing  to the issue of technical sanctions not adopting a proper  procedure for the execution of works and test checks etc.  It is a matter of record that even though this report was  submitted on 22nd July, 2003, no action was taken on the  basis thereof.

9. We may also notice at this stage that the appellant had  a spotless service record throughout 24 years of service.  In the annual performance report for the period 1.4.1997  till 31.3.1998, his work has been assessed as 'Good'. The  reviewing  authority  has  graded  the  appellant  as  a  'Very  Good Officer'. Against the column of integrity, the  remark  is 'Excellent'.  Similarly, for the year 1998-1999, he was  assessed  as  'Good  officer'  and  having  'excellent'  integrity. In the annual performance report for the year  1999-2000 again his integrity is said to be 'Excellent'.  He  has  been  assessed  as  a  very  capable  and  efficient  officer.   The  overall  assessment  given  by  the  reviewing  authority is 'A very good officer'. For the year 2000-2001,  the  annual  performance  report  again  records  that  the  appellant  is  'A  good  officer'  with  good  integrity.   A  separate assessment was given on 12th March, 2005 for the  period 27th October, 2001 to 29th July, 2002 and thereafter  from  23rd October,  2002  till  23rd December,  2002.   This  annual  performance  report  was  recorded  by  the  Deputy  Commissioner, Jammu for the period of 11 months.  In the  

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aforesaid  two  tenures,  the  work  and  conduct  of  the  appellant was found to be good.  It is also recorded that  no complaint was brought to the notice of the reporting  officer.   For  the  year  2003-2004  against  the  column  integrity, it is mentioned that 'nothing against came in  notice'.  The reporting officer has said 'he is a very good  field  officer'.   The  reviewing  officer  assessed  the  appellant as 'An outstanding officer'.

10. In spite of having a blemish-free record of service as  noticed above, the appellant was directed to be prematurely  retired by order dated 26th April, 2005 on the basis of the  recommendations made by the High Powered Review Committee.  The conclusion on the basis of which the recommendations  for  retirement  of  the  appellant  has  been  made  are  as  under:-

“5. As per inputs provided by the Additional  DG  CID  the  officer  has  amassed  property  disproportionate to his known sources of income  which include a palatial house at Krishna Colony  Kathua  built  over  about  3  kanals  of  land;  two  shops  in  Kathua  market;  six  kanals  of  land  in  Kathua town, one kanal of land at Trikuta Nagar  Jammu (Sector No.3), two kanals of land at Trikuta  Nagar extension, three kanals of land at Greater  Kailash Colony, Jammu; 10 marla plot at Bhatiandi  and bank account and lockers in United Commercial  Bank, R.N. Bazar and Vijay Bank, Purani, Mandi,  Jammu.”   

11. As per information provided by the Rural Development  Department, the officer was attached vide Government Order  No. 112-RD of 2004 dated 9.5.2003 for issuing back dated  sanctions relating to the execution of departmental works,  

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passing of bills and estimates in Jammu District and other  matters related thereto. A departmental enquiry has been  ordered  vide  Government  Order  No.  125-RD  of  2004  dated  22.5.2003. The Officer is a professional litigant who has  created  problems  for  the  department.   Besides,  the  reputation of the officer is very bad.”

12. On the basis of these recommendations the Government  issued the order of retirement which was impugned by the  appellant in the writ petition.

13. The learned Single Judge dismissed the writ petition  with the observations that “there is sufficient material on  the record which clearly speaks of the doubtful integrity  of the petitioner.” The Division Bench also concluded that  the decision of the High Powered Committee to recommend the  appellant's premature retirement was based on the inputs  received from the Additional DG, CID regarding assets of  appellant which were disproportionate to his known sources  of  income  and  the  information  received  from  the  Rural  Development Department that the appellant had issued back  dated sanctions to some departmental works and passed bills  and estimates in respect thereof.    14. The  Division  Bench  concluded  that  the  Vigilance  Organization  has  found  part  of  the  assets  allegedly  disproportionate  to  the  known  source  of  income  of  the  

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appellant though not purchased in the appellant's own name.  The Division Bench notices that the assets at S. Nos. 6 and  7 were shown to have been purchased in the name of the  father-in-law of the appellant.  The Vigilance Organization  had also indicated that there was unaccounted money in the  sum of Rs.6,66,103/- in the bank account.  It was also  stated that in other bank accounts of the appellant, there  were transactions of Rs.24 lacs since 23rd February, 2008.  Therefore,  the  Division  Bench  concluded  that  there  was  sufficient  material  before  the  Committee  constituted  to  consider  the  case  of  the  appellant  to  recommend  his  premature retirement.   

15. Mr.  D.K.  Garg,  learned  counsel  appearing  for  the  appellant  submitted  that  the  conclusion  recorded  by  the  High  Powered  Committee  are  based  on  no  material  and  therefore, the recommendations for premature retirement of  the appellant was without any basis.  He submits that the  decision taken by the State Government on the basis of the  recommendations  of  the  High  Powered  Committee  is  unreasonable  and  arbitrary  and  therefore,  liable  to  be  quashed.  He  relies  on  the  unblemished  record  of  the  appellant  for  the  past  24  years  in  support  of  the  submissions that the impugned order has been passed without  application of mind and therefore, deserves to be quashed  and set aside. He further submitted that even subjective  satisfaction of the Government had to be formulated on the  

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basis  of  relevant  material  which  was  wholly  missing.  Learned counsel further submitted that on the basis of the  service record of the appellant it was not possible for the  Government to come to the conclusion that the appellant had  become deadwood. Furthermore, according to Mr. Garg, there  is  no  justification  for  the  conclusion  reached  by  the  learned Single Judge as well as by the Division Bench that  the Committee had recorded a finding of doubtful integrity  with  regard  to  the  appellant.  He  submitted  that  on  the  basis of some allegations an enquiry was conducted and the  conclusion could at best indicate that the appellant had  been negligent in performance of his duties. In support of  his submissions, learned counsel has relied on judgments of  this  Court  titled  Nand  Kumar  Verma versus  State  of  Jharkhand and others reported in 2012 (3) SCC 580 and State  of Gujarat versus  Umedbhai M. Patel reported in 2001 (3)  SCC 314.    16. On the other hand, Mr. Sunil Fernandes, learned counsel  appearing for the respondent-State relying particularly, on  the conclusions recorded by the Additional DG, CID submits  that the material provided by the Additional DG, CID in his  report dated 19th October, 2004 clearly indicate that the  properties  mentioned  therein  belong  to  the  appellant  as  also there was no denial that the bank accounts mentioned  at S.No. 9 also belong to the appellant. Learned counsel  submitted that since the order of premature retirement is  

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not by way of punishment nor is it stigmatic, it was not  open  to  challenge  any  of  the  grounds  taken  by  the  appellant.  He submitted that the plea put forth by the  appellant that the properties at S.Nos. 6 and 7 have been  gifted to his wife by the father-in-law are without any  basis.  The appellant has failed to place on record any  material to show that the properties were in fact, gifted  by the father-in-law.

17. Learned  counsel  was  at  pains  to  emphasise  that  the  order  of  compulsory  retirement  is  based  on  the  recommendation of the Screening Committee. It was open to  the court to interfere, unless such order is based on no  evidence or is totally perverse. In the present case, the  High Powered Committee had made the recommendation on the  basis  of  relevant  material.  Therefore,  according  to  the  learned  counsel,  the  High  Court  had  rightly  declined  to  interfere  with  the  order.  In  support  of  his  submission,  learned counsel relied on Jugal Chandra Saikia vs. State of  Assam & Anr. (2003) 4 SCC 59.

18. Mr.Fernandes  also  submitted  that  the  object  of  compulsory retirement is to weed out the dead wood and also  to dispense with the services of those whose integrity is  doubtful. The order of compulsory retirement does not per  se cast any stigma on the government servant. Therefore,  the  scope  for  interference  by  the  court  is  minimal.  In  

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support  of  this,  he  relied  on  Allahabad  Bank  Officers’  Association & Anr. vs. Allahabad Bank & Ors. (1996) 4 SCC  504. In support of this submission, he relied on Baikuntha  Nath  Das  &  Anr.  vs.  Chief  District  Medical  Officer,  Baripada & Anr. (1992) 2 SCC 299.

19.  We have considered the submissions made by the learned  counsel for the parties.

20. The principles on which a government servant can be  ordered  to  be  compulsorily  retired  were  authoritatively  laid down by this Court in the case of Baikuntha Nath Das  (supra). In Paragraph 34, the principles have been summed  up as follows :  

 “34. The following principles emerge from the  

above discussion: (i) An order of compulsory retirement is not a  punishment. It implies no stigma nor any sug- gestion of misbehaviour. (ii) The order has to be passed by the govern- ment on forming the opinion that it is in the  public interest to retire a government servant  compulsorily. The order is passed on the sub- jective satisfaction of the government. (iii)Principles  of  natural  justice  have  no  place in the context of an order of compulsory  retirement. This does not mean that judicial  scrutiny is excluded altogether. While the High  Court or this Court would not examine the mat- ter as an appellate court, they may interfere  if they are satisfied that the order is passed  (a) mala fide or (b) that it is based on no ev- idence or (c) that it is arbitrary — in the  sense that no reasonable person would form the  requisite  opinion  on  the  given  material;  in  short, if it is found to be a perverse order.

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(iv) The government (or the Review Committee,  as the case may be) shall have to consider the  entire  record  of  service  before  taking  a  decision in the matter — of course attaching  more importance to record of and performance  during the later years. The record to be so  considered would naturally include the entries  in  the  confidential  records/character  rolls,  both favourable and adverse. If a government  servant is promoted to a higher post notwith- standing the adverse remarks, such remarks lose  their sting, more so, if the promotion is based  upon merit (selection) and not upon seniority. (v) An order of compulsory retirement is not  liable to be quashed by a Court merely on the  showing  that  while  passing  it  uncommunicated  adverse remarks were also taken into considera- tion. That circumstance by itself cannot be a  basis for interference. Interference is permissible only on the grounds  mentioned in (iii) above. This aspect has been  discussed in paras 30 to 32 above.

The  aforesaid  principles  have  been  re-examined  and  reiterated by this Court in the case of  Nand Kumar Verma  (supra). The principles have been restated as follows :-

34. It is also well settled that the for- mation of opinion for compulsory retirement  is based on the subjective satisfaction of  the authority concerned but such satisfaction  must be based on a valid material. It is per- missible for the courts to ascertain whether  a  valid  material  exists  or  otherwise,  on  which the subjective satisfaction of the ad- ministrative  authority  is  based.  In  the  present matter, what we see is that the High  Court, while holding that the track record  and service record of the appellant was un- satisfactory, has selectively taken into con- sideration  the  service  record  for  certain  years  only  while  making  extracts  of  those  contents of the ACRs. There appears to be  some discrepancy. We say so for the reason  that the appellant has produced the copies of  the ACRs which were obtained by him from the  High  Court  under  the  Right  to  Information  Act, 2005 and a comparison of these two would  positively indicate that the High Court has  

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not faithfully extracted the contents of the  ACRs.

36. The material on which the decision of  the compulsory retirement was based, as ex- tracted by the High Court in the impugned  judgment, and material furnished by the ap- pellant would reflect that totality of rele- vant materials were not considered or com- pletely ignored by the High Court. This leads  to only one conclusion that the subjective  satisfaction of the High Court was not based  on the sufficient or relevant material. In  this view of the matter, we cannot say that  the service record of the appellant was un- satisfactory  which  would  warrant  premature  retirement from service. Therefore, there was  no justification to retire the appellant com- pulsorily from service.

21. In the case of  State of Gujarat vs. Umedbhai M.Patel  (supra),  the  same  principles  were  reiterated  in  the  following words :-

“11. The law relating to compulsory re- tirement has now crystallised into definite  principles, which could be broadly summarised  thus:

(i) Whenever the services of a public ser- vant are no longer useful to the general ad- ministration, the officer can be compulsorily  retired for the sake of public interest.

(ii) Ordinarily, the order of compulsory  retirement is not to be treated as a punish- ment coming under Article 311 of the Consti- tution.

(iii)  For  better  administration,  it  is  necessary to chop off dead wood, but the or- der of compulsory retirement can be passed  after having due regard to the entire service  record of the officer.

(iv) Any adverse entries made in the con- fidential record shall be taken note of and  be given due weightage in passing such order.

(v)  Even  uncommunicated  entries  in  the  confidential record can also be taken into  consideration.

(vi)  The  order  of  compulsory  retirement  shall not be passed as a short cut to avoid  

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departmental enquiry when such course is more  desirable.

(vii) If the officer was given a promotion  despite adverse entries made in the confiden- tial record, that is a fact in favour of the  officer.

(viii) Compulsory retirement shall not be  imposed as a punitive measure.”

22. The  judgments  cited  by  Mr.Fernandes  have  only  reiterated  the  principles  earlier  enunciated.  In  Jugal  Chandra  Saikia (supra),  this  Court  reiterated  the  principles in the following words:-

“6. ………………………………………………………………………………………………………………….I t cannot be disputed that the passing of an  order of compulsory retirement depends on the  subjective satisfaction of the competent au- thority,  of  course  on  objective  considera- tion. Unless it is shown that the order of  compulsory retirement was passed arbitrarily  and without application of mind or that such  formation of opinion to retire compulsorily  was based on no evidence or that the order of  compulsory retirement was totally perverse,  the court cannot interfere.”  

23. Examining the record of the appellant therein and the  material that was placed before the Screening Committee,  the High Court as well as this Court came to the conclusion  that on an objective consideration of the material on the  record it was not possible to accept the argument that the  Screening  Committee  had  acted  only  on  the  basis  of  the  report  of  the  Rao  Committee.  It  was  found  that  the  recommendations of the Screening Committee were based on  relevant material.  24. In  Allahabad Bank Officers’ Association case (supra),  this  Court  examined  whether  the  order  of  compulsory  

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retirement, passed in that case, cast a stigma on appellant  No.2. The impugned order therein had recited that there was  “want of application to Bank’s work and lack of potential”  and “he has also been found not dependable”. It was the  case of the appellant NO.2 that the aforesaid expressions  were  stigmatic  as  they  cast  aspersions  on  his  conduct,  character and integrity. The High Court rejected the plea  of appellant No.2 on the ground that the recitals do not  cast any stigma but only assesses the work of appellant  No.2  for  determining  the  issue  of  his  compulsory  retirement. In these circumstances, it was observed that  the object of compulsory retirement is to weed out the dead  wood in order to maintain efficiency in the service and  also to dispense with the services of those whose integrity  is  doubtful,  so  as  to  preserve  purity  in  the  administration.  The  order  of  compulsory  retirement  was  distinguished from the order of dismissal and removal, as  it  does  not  inflict  any  punishment  on  the  government  servant.  It  only  deprives  the  government  servant  of  the  opportunity  to  remain  in  service  till  the  age  of  superannuation.  Therefore,  the  order  of  compulsory  retirement differs from an order of  dismissal or removal  both in its nature and consequence. However, in case it is  found that the order is stigmatic it would be treated as an  order  of  punishment,  which  cannot  be  passed  without  complying with the provisions of Article 311 (2) and the  rules of natural justice. Upon examination of a large body  

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of case law, it was observed that the order of compulsory  retirement  does  not  cast  a  stigma  on  the  Government  servant.  But  if  the  order  contains  a  statement  casting  aspersion on his conduct or character, then the court will  treat the order as an order of punishment, attracting the  provisions of Article 311(2) of the Constitution. In the  facts of that case, it was concluded that the two recitals  contained  in  the  order  of  premature  retirement  had  been  made in relation to the work of appellant No.2 and not for  any  other  purpose.  Therefore,  the  court  declined  to  interfere with the order of the High Court.  25. Examining the fact situation in this case on the basis  of  the  aforesaid  principles,  it  becomes  evident  that  recommendation  made  by  the  High  Powered  Committee  was  indubitably arbitrary.  26. The report submitted by the Additional DGP CID is as  follows:  

“Sub: Disproportionate assets of Shri Rajesh  Gupta, Executive Engineer, Rural Engineering Wing,  Kathua.

The officer originally hails from Kathua and  has amassed property and assets worth crores of  rupees. He has accumulated unaccounted wealth in  the shape of movable/immovable properties both at  Kathua  and  Jammu  by  misusing  his  official  position  for  pecuniary  gains.  As  per  reliable  sources  he  is  in  possession  of  the  following  assets which are in no way commensurate with all  known sources of his income:- i) He owns a palatial house at Krishna Colony,  Kathua built over at least 3 kanals of land with  all  modern  fittings,  fixtures,  electronics  gadgets  and  costly  household  articles.  In  the  same building he has set up a shoe making unit  and goods are being sold by his brother in the  market on shops owned by him. The estimated cost  

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of this building alongwith other infrastructure  is not less than Rs.30 lacs.  ii)  He  owns  a  shop  below  State  Bank  of  India  Branch  at  Kathua  which  is  a  busy  market.  The  minimum value assessed is Rs.10 lacs.  iii)  Another  shop  situated  opposite  DC  Office  Kathua which is also a prime location valued at  more than Rs.10 lacs. iv) He is also in possession of about 6 kanals of  land near DPL Kathua which is also a costly chunk  of land valued at not less than Rs.30 lacs.  v) Recently the said officer has purchased plot  No.158  measuring  one  kanal  at  Trikuta  Nagar,  Jammu in Sector 3 behind Gurdwara Saheb for Rs.24  lacs.  On  this  piece  of  land,  the  officer  has  spent more than RS.30 lacs for the construction  of a house. Previously, he was putting up in a  rented house at 48/4 Nanak Nagar, Jammu. vi) He is also in possession of 2 kanals of land  at  Trikuta  Nagar  Ext.  Khoo  Wali  Gali  which  is  also a valuable site and values about Rs.15 lacs.  vii) 3 kanals of land at Greater Kailash Colony,  Jammu whose market value is about Rs.25 lacs.   viii) 10 Marla plot at Bathindi valuing Rs.3 lacs. ix) He has bank accounts and lockers in United  Commercial Bank, R.N.Ba….and Vijay Bank, Purani  Mandi Jammu. 2.  Besides,  he  may  be  in  possession  of  other  assets  in  the  shape  o  jewellery/valuables/securities etc. which can be  unearthed only after proper probe. He also having  lockers/bank  accounts  in  the  name  of  his  wife  namely Smt. Poonam Gupta, Rahil (son), Balkrishen  (father) and Rakesh (brother) at Jammu as well as  Kathua. It is worthwhile to mention here that he  comes from a family of model means. His father is  a  retired  Sr.  Assistant.  He  has  developed  connections manipulate lucrative postings to mint  money.

Sd/-  Addl. DGP CID J & K

Chief Secretary, J&K  No.NGO/EMP©/2698-99 Dated Oct.19, 2004”

           

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27. During the course of the submissions before us, learned  counsel  for  the  State  of  Jammu  &  Kashmir  accepted  that  there was no material with regard to properties at Sl.No.1  to 5. Therefore, we shall say no more about the same. With  regard to the properties at Sl.No.6 and 7, Mr.Garg learned  counsel  for  the  appellant  pointed  out  that  during  the  pendency of the Letters Patent Appeal in the High Court,  the  respondents  were  directed  to  place  on  record  the  findings recorded by the Special Investigation Team which  was  constituted  for  carrying  detailed  investigation  into  the question as to whether the petitioner was in possession  of the assets mentioned in the report of the Additional DGP  dated  19th October,  2004.  The  report  dated  1.7.2010  submitted by the Joint Director (Prosecution) was placed on  record of the High Court alongwith an affidavit. The report  with regard to the aforesaid two properties is as under:-

“03. Two kanals of land at Trikuta Nagar  Extn. Jammu :-

The land/plots were found purchased  by Shri Devi Dutt Mal Gupta, (Father-in-law  of  the  subject  officer),  who  subsequently  gifted it to his grandson Rahul Gupta, who  happens  to  be  the  son  of  Rajesh  Gupta  (subject officer) in the year 2003.

04.  Three  kanals  of  land  at  Greater  Kailash, Jammu :-

This piece of land alongwith 1 kanal and  6 Marlas have been purchased by one Shri Vijay  Kumar  from  actual  owners  and  stand  mutated  since in the name of purchaser. This asset as  per revenue records was found not attributable  to the subject officer.”

28. The report also does not indicate that there is any  

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irregularity  in  the  bank  accounts  maintained  by  the  appellant. The affidavit filed on behalf of the State of  Jammu  and  Kashmir  clearly  shows  that  according  to  the  Vigilance  Organization,  three  First  Information  Reports  bearing Nos. 49/91, 11/95 and 63/94 were registered by the  State Vigilance Organization against the appellant when he  was  posted  as  Executive  Engineer  (REW,  Kathua).  Upon  investigation, all the FIRs were found to be “Not Proved”.  However, recommendation was made to initiate departmental  action  against  the  officer.  Inspite  of  the  aforesaid  recommendation, it has not been disputed before us, that no  departmental  action  was  ever  initiated  against  the  appellant.  In  fact,  after  the  completion  of  the  investigation into the FIRs, the appellant was promoted to  the post of Executive Engineer on 15.12.1996. Therefore, it  can be safely concluded that there were no material before  the  High  Powered  Committee  to  conclude  that  the  officer  possessed assets beyond his known source of income.  

29. This now takes us to the other material on the basis of  which the recommendation has been made by the High Powered  Committee.  It  has  been  noticed  by  us  earlier  that  the  appellant was required, in the performance of his official  duties, to recommend the sanctioning of technical approval  to  the  construction  of  works  of  various  projects.  The  allegation  with  regard  to  issuing  back  dated  technical  sanctions was duly inquired into. The conclusion ultimately  

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reached by inquiry officer noticed in the earlier part of  the order indicates that at best the appellant acted in a  casual and haphazard manner in the maintenance of records.  Such negligence on the part of the appellant cannot per se  lead to the conclusion that the appellant was acting in such  a manner with an ulterior motive. The conclusions reached by  the High Powered Committee also do not co-relate to the  assessment of work and integrity of the appellant in the  annual performance report. As noticed earlier, in all the  annual performance reports, the officer has been rated ‘very  good’, ‘excellent’ and even ‘outstanding’.                  30. In  view  of  the  aforesaid,  the  conclusion  is  inescapable, that the order passed by the State Government  suffers from vice of arbitrariness.  The High Court erred  in arriving at conclusions which were not borne out by the  record produced before the High court.  In view of the  settled  law,  it  is  not  possible  for  us  to  uphold  the  judgments  of  the  Single  Judge  as  also  of  the  Division  Bench.  

31. Consequently, the appeal is allowed, the impugned order  of  the  premature  retirement  of  the  appellant  dated  26th  

April, 2005 is quashed and set aside.  It is brought to our  notice that the appellant has still not reached the age  

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of  superannuation.  He  is,  therefore,  directed  to  be  reinstated  in  service.   In  view  of  the  fact  that  the  appellant  has  not  challenged  the  order  of  premature  retirement  on  the  ground  that  the  action  taken  by  the  Government  was  malafide,  it  would  not  be  appropriate  in  this  case,  to  follow  the  normal  rule  of  grant  of  full  backwages on reinstatement. We, however, direct that the  appellant shall be paid 30% of the backwages from the date  of  order  of  premature  retirement  till  reinstatement.  He  shall not be entitled to any interest on the backwages.

32. We  may  further  observe  that  upon  reinstatement,  it  shall be open to the Government to post the appellant on a  non sensitive post in view of the background of the case. 33. Let the order be implemented within a period of four  weeks. 34. There shall be no order as to costs.

                                         ....................J.

                         (SURINDER SINGH NIJJAR)

        ...................J.                                           (ANIL R. DAVE) New Delhi, January 23, 2013

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