Created byFuzzy Cloud

Supreme Court of India

UNION OF INDIA AND ORS.versusSMT. V.P. PARUKUTTY

Citation
1996 INSC 1415
Decided
29 November 1996
Disposal
Disposed off

Holding

Mere existence of a near relation is sufficient ground for termination of an agency under the government instructions, but the appointment is not disturbed in this case due to the respondent's long service and lack of a clear finding of breach.

Summary

The case concerned the termination of Smt. V.P. Parukutty's appointment as an agent under the Mahila Pradhan Kshetriya Bachat Yojana because she was the brother of a post‑office employee, contrary to a 1981 government circular prohibiting near relatives from being appointed by the post‑master. She challenged the termination in the Kerala High Court, which upheld the circular as non‑discriminatory and dismissed her writ petition. On appeal, the High Court division bench reversed, holding that mere existence of a near relation was insufficient to terminate the agency. The Supreme Court held that the division bench’s view was incorrect, as the government policy expressly barred such appointments, but declined to disturb the appointment because the respondent had served since 1976 and no clear finding of breach was recorded. The Court suggested the post‑master could transfer her elsewhere and disposed of the appeal without costs.

Issues considered

  • Whether the termination of an agent's appointment on the ground of being a near relation of a post‑office employee is permissible under the government circular dated 5‑12‑1981.
  • Whether the circular prohibiting near relatives from being appointed as agents is discriminatory or arbitrary.
  • Whether the mere existence of a near relation suffices as a ground for termination of the agency without a specific finding of breach.

Subjects

National Savings SchemeAgent appointmentNear relationsGovernment circularDiscriminationArbitrarinessPost officeAdministrative lawTermination of appointment

Judgment

                             UNION OF INDIA AND ORS.                                A
                                         v.
                              SMT. V.P. PARUKUTTY

-                               NOVEMBER 29, 1996

                 [K. RAMASWAMY AND G.T. NANAVATI, JJ.]                              B

          National Savings Scheme-Mahi/a Pradhan Kshetriya Bachat
    Yojana-Appointment of agents-Government instrnctions that no near rela-
    tions should be appointed as an agent by the Post Master-Respondent
    appointed as Agent-His agency temiinated on the ground that he was
    brother of an employee working in the Post office-Tem1ination of agency
                                                                                    c
    unsuccessfully challenged before a single Judge of the High Cowt-On appeal
    Division Bench held that mere existence of near relations in the division is
    not enough for tenninating the agencrAppeal before Supreme Court-Held,
    the view taken by the Division Bench was not correct-However as the
    respondent has been working right from 1976 and as no clear finding has been    D
    recorded by the authority establishing breach of the said instmctions this is
    not a case warranting inteiference-Ihe appointment of respondent is not to
    be disturbed.

            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 15605 of
    1996.                                                                           E:
         From the Judgment and Order dated 22.7.88 of the Kerala High
    Court in O.P. No. 8428 of 1984.

            R. Mohan, S. Wasim A. Qadri and C.V.S. Rao for the Appellants.
                                                                                    F
            The following Order of the Court was delivered :

            Delay condoned.

            Leave granted.
                                                                                    G
         This appeal by special leave arises from the judgment of the Division
    Bench of the Kerala High Court made on 30.11.1990 in Writ Appeal
    No.767/88 reversing the judgment of the learned single Judge.

         The admitted position is that the respondent was appointed as an
    agent in the National Savings Scheme called Mahila Pradhan Kshetriya H
                                     383
    384                   SUPREME COURT REPORTS [1996] SUPP. 9 S.C.R.
A Bachat Yojana as per order dated 7th August, 1976 under which the
  respondent was working as an agent. The agency was terminated by order
  dated 2.8.1994 on the ground that the respondent is a near relation to the
  employee working in the Post Office (brother) and, therefore, agency was
                                                                                    -
  not validly created. The respondent challenged that order by filing a writ
B petition in the High Court and also the circular dated 5.12.1981 on the basis
                                                                                    -
  of which the said order was passed. The circular was challenged on the
  ground that it was discriminatory and arbitrary. The High court found that
  the circular was neither discriminatory and arbitrary. The High Court
  found that the circular was neither discriminatory nor arbitrary and, there-
  fore, dismissed the writ petition. Feeling aggrieved by the \'irder passed by
C the learned single Judge, the respondent filed an appeal in the High Court.
  The Division Bench allowed the appeal. We are clearly of the opinion that
  the view taken by the Division Bench that mere existence of near relations
  in the division is not enough for terminating the agency is not correct, in
  view of the clear policy of the Government and the Government instruc-
D !ions directing that no near relations, namely, legitimate child, or step-
  child, father/step-father,            mother/step-mother, husband,
  brother/step-brother, sister/step-sister, father-in-law, mother-in-law,
  brother-in-law, sister-in-law, son-in-law, daughter-in-law, as defined under
  the scheme, should be appointed as an agent at the place of work by the
  post-master. But as the respondent has been working right from 1976 and
E as no clear finding has been recorded by the authority establishing breach
  of the said instructions, we do not think that this is a case warranting
  interference. It will be open to appellants to have the post-master trans-
  ferred to 'l"Y other place. Though we find that the view taken by the High
  Court is nllt correct, in view of the peculiar facts of this case, the appoint-
F men! of respondent is not disturbed.
          The appeal is disposed of accordingly. No costs.

    T.N.A.                                                  Appeal disposed of.


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "National Savings Scheme"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.