1993 JTR(SC) 507
1993 Supp4 SCC 594 ; 1994 SCC(L&S) 319 ; 1995 7 SLR 476
SUPREME COURT OF INDIA
Kuldip Singh : Yogeshwar Dayal
Awadh Bihari Singh
Versus
State Of Bihar
Case No. : 4602 of 1992
Date of Decision : 5/12/93
An administrative order that is detrimental to an employee's status or emoluments is invalid if issued without providing the affected party an opportunity to be heard, as it violates the principles of natural justice.
(A) Administrative Law - Principles of Natural Justice - Opportunity of being heard - Notification downgrading posts and reducing emoluments issued without affording an opportunity to the affected employees - Order to the detriment of the employees cannot be passed without following the principles of natural justice. (Paras 1, 3)
(B) Service Law - Back wages - Employees are not entitled ipso facto to back wages as a consequence of an order setting aside a detrimental notification; entitlement to back wages is contingent upon the final decision of the government in favor of the employees. (Para 5)
Facts of the case:
Employees working as Agricultural Inspectors had their posts upgraded to a higher class of service and were paid higher salaries. Subsequently, a notification was issued downgrading their posts and reducing their emoluments. This notification was issued without providing the affected employees any opportunity to be heard or a show-cause notice.
Findings of Court:
The notification was on the face of it to the detriment of the employees as it resulted in the downgrading of their posts and a reduction in their emoluments. Since no opportunity was afforded to the employees before the issuance of the notification, the order is unsustainable.
Issues: Whether a notification that downgrades the posts and reduces the emoluments of employees is valid if issued without providing them an opportunity to be heard.
Ratio Decidendi: An administrative order that is detrimental to the interests of the affected parties must be preceded by an opportunity to be heard, in accordance with the principles of natural justice.
Result: Appeal allowed.
(B) Service Law - Back wages - Employees are not entitled ipso facto to back wages as a consequence of an order setting aside a detrimental notification; entitlement to back wages is contingent upon the final decision of the government in favor of the employees. (Para 5)
Facts of the case:
Employees working as Agricultural Inspectors had their posts upgraded to a higher class of service and were paid higher salaries. Subsequently, a notification was issued downgrading their posts and reducing their emoluments. This notification was issued without providing the affected employees any opportunity to be heard or a show-cause notice.
Findings of Court:
The notification was on the face of it to the detriment of the employees as it resulted in the downgrading of their posts and a reduction in their emoluments. Since no opportunity was afforded to the employees before the issuance of the notification, the order is unsustainable.
Issues: Whether a notification that downgrades the posts and reduces the emoluments of employees is valid if issued without providing them an opportunity to be heard.
Ratio Decidendi: An administrative order that is detrimental to the interests of the affected parties must be preceded by an opportunity to be heard, in accordance with the principles of natural justice.
Result: Appeal allowed.
Judgment
KULDIP SINGH, J.
(1) IT is not necessary to state the detailed facts and various legal submissions raised by the appellants before the High court as we are inclined to allow this appeal on the short ground that before passing the impugned order dated 8/02/1991 to the detriment of the appellants they were not afforded an opportunity of being heard by the respondents.
(2) THE appellants are working as Agricultural Inspectors (sic or) equivalent posts in the service of the State of Bihar. By an order dated 28/01/1988 the posts held by the appellants were upgraded and were brought under the Bihar Agricultural Service Class-11. It is not disputed that with effect from 28/01/1988 the appellants were treated as Class-11 Officers and were also paid the higher salary of Class-11 service.
(3) ON 8/02/1991 the State of Bihar issued the impugned notification downgrading the posts held by the appellants and as a consequence reducing the emoluments which they were drawing as Class- 11 Officers. It is not disputed that before issuing the said notification no opportunity was afforded to the appellants. The notification dated 8/02/1991 is on the face of it to the detriment of the appellants, inasmuch as the posts held by them were downgraded and their emoluments were reduced.
(4) WE set aside the notification dated 8/02/1991 and direct the State of Bihar to issue a show-cause notice to the appellants, if they so desire, staling therein all the material on the basis of which it is proposed to downgrade the posts held by the appellants. Mr B.B. Singh, learned counsel for the State of Bihar states that the show-cause notice shall be served on the appellants within two months from today. The appellants shall file a reply to the show-cause notice within one month thereafter. We further direct the State of Bihar to finally decide the matter by a speaking order within six months from today.
(5) WE make it clear that the appellants shall not be entitled, ipso facto to the back wages as a consequence of our order. In case, the State Government ultimately decides the matter in favour of the appellants then they would be entitled, to the back wages which shall be paid to them within a reasonable time.
(6) WE allow the appeal in the above terms. No costs.