Supreme Court of India
UNION OF INDIA AND OTHERSversusN MURUGESAN ETC.
- Citation
- 2021 INSC 628
- Decided
- 7 October 2021
- Disposal
- Disposed off
- Bench
- SANJAY KISHAN KAUL
Holding
A tenure appointment made by direct recruitment is a discretionary, non‑regular post; without statutory prohibition it cannot be extended, and the respondent’s claim is barred by delay, laches, acquiescence and approbate‑reprobate.
Summary
The respondent, N. Murugesan, was appointed Director‑General of the Central Power Research Institute (CPRI) on a five‑year tenure through direct recruitment, with a clause that re‑appointment would depend on suitability. As his tenure ended, he sought extension, claiming that his appointment was a regular post and that the relieving order amounted to termination. The employer, acting under the CPRI Pay, Recruitment and Promotion Rules, 1989 and with approval of the Appointments Committee of the Cabinet, chose to conduct a fresh recruitment, appointing a private respondent. The High Court dismissed the writ petitions on grounds of delay and laches; the Division Bench allowed the appeals but did not grant reinstatement. The Supreme Court held that a tenure appointment made by direct recruitment is within the employer’s discretion, not a regular post, and that the rules do not prohibit such appointments. The respondent’s claim was barred by the principles of delay, laches, acquiescence and approbate‑reprobate, and the relieving order was not a termination. Consequently, the appellant’s appeal was allowed and the respondent’s relief dismissed.
Issues considered
- The nature of a tenure appointment made by direct recruitment under CPRI Rules – whether it is a regular post eligible for extension.
- Whether the employer acted arbitrarily in refusing re‑appointment of the Director‑General.
- Whether the principles of delay, laches, acquiescence and approbate‑reprobate bar the respondent’s relief under Article 226.
- Whether the doctrine of fairness applies to the employer‑employee relationship involving a State instrumentality.
- Whether the relieving order can be characterised as a termination requiring reinstatement.
Legislation cited
- Constitution of Indias. Article 226
- CPRI (Pay, Recruitment and Promotion) Rules, 1989
- Indian Contract Act, 1872s. 3, s. 39, s. 7, s. 8
- Karnataka Societies Act, 1960
Subjects
service lawtenure appointmentdirect recruitmentdelaylachesacquiescenceapprobate and reprobatedoctrine of fairnessArticle 226employer discretionpublic sector institute
Judgment
[2021] 10 S.C.R. 253 253
UNION OF INDIA AND OTHERS A
v.
N MURUGESAN ETC.
(Civil Appeal Nos. 2491-2492 of 2021)
OCTOBER 07, 2021 B
[SANJAY KISHAN KAUL AND M. M. SUNDRESH, JJ.]
Service Law – CPRI (Pay, Recruitment and Promotion) Rules,
1989 (Working Rule No.1) – Direct recruitment – Tenure appointment
– Non-extension of – Respondent no.1 was an ex-employee of
C
appellant-Central Power Research Institute (CPRI) – Appointed as
Director General thereof through Direct Recruitment for an initial
tenure of five years or until further orders, being eligible for re-
appointment for a further term up to the date of superannuation –
Sought extension of service towards the end of tenure – Not extended
– Fresh recruitment, private respondent was selected as the new D
Director-General – Writ petitions filed by respondent inter alia
questioning his relieving order and challenging the recruitment of
the private respondent – Dismissed by Single Judge on ground of
delay and laches – Appeals, allowed by Division Bench – Held:
Appointment order very explicitly says that extension is subject to
E
suitability, and such suitability for re-appointment having been
considered, this Court is not expected to substitute its view –
Employer had discretion and in the absence of any arbitrariness,
one cannot question its wisdom – Rules do not prohibit a tenure
appointment – Direct recruitment can also be made for filing up the
post on a tenure basis – Division Bench misconstrued direct F
recruitment to mean an appointment to a permanent post –
Respondent not entitled to extension – Further, on the principle
governing delay, laches, and acquiescence, followed by approbation
and reprobation, the respondent ought not to have been granted
any relief – Impugned order set aside – Constitution of India –
G
Article 226 – Contract Act, 1872 – ss.3, 7, 8, 39 – Acquiescence –
Delay/Laches – Approbation and Reprobation – Doctrine of Election
– Doctrine of Fairness – Karnataka Societies Act, 1960.
Delay/Laches and Acquiescence – Principles governing –
Discussed.
H
253
254 SUPREME COURT REPORTS [2021] 10 S.C.R.
A Doctrines/Principles – Doctrine of Fairness – Employer and
employee relationship – Applicability of – Held: In an employer
and employee relationship, the doctrine of fairness has to be applied
with more vigour when it involves an instrumentality of the State.
Constitution of India – Article 226 – Nature of relief –
B Extraordinary and discretionary – Discussed.
Service Law – Direct recruitment – Definition of – Held: Direct
recruitment would mean recruitment through a process stipulated
under the rules – Therefore, it cannot be interpret that all direct
recruitments are to be made by regular employment – Direct
C recruitment can also be made for filing up the post on a tenure
basis.
Words & Phrases – ‘Laches’; ‘acquiescence’; ‘approbation
and reprobation’ – Meaning of – Discussed.
Allowing the appeals filed by the appellants and dismissing
D that of the respondent’s, the Court
HELD: 1. THE INDIAN CONTRACT ACT, 1872:
Section 3 of the Act concerns itself with an act of
communication, acceptance, and revocation of proposal. When
an offer is made, it is required to be accepted by the receiver to
E
partake the character of a concluded contract. Hence, the
knowledge of the terms of the offer is a primary and essential
factor for acceptance. To understand this better, when an
acceptance is made in an unqualified manner, it takes in its sweep
the said acceptance along with the knowledge of the terms of the
F offer. This is for the reason that an unaccepted offer creates
neither any right nor obligation. Such an acceptance as existing
under Section 7 of the Act must both be absolute and unqualified.
As per Section 8, the performance of the conditions of a proposal
or the acceptance of any consideration for a reciprocal promise
which may be offered with a proposal is an acceptance of the
G
proposal. Hence, an absolute and unqualified acceptance would
give birth to the contract along with the terms of the offer. Section
39 deals with the effect of the refusal of the party to perform a
promise wholly. Though the Court is not concerned with this
provision, this provision is the only one that speaks of the concept
H
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 255
of acquiescence, which could be signified by words or conduct, A
being an exception for terminating the contract. Under this
provision, a promisee may put an end to the contract unless there
exists an element of acquiescence that could be seen and
exhibited through his words or conduct. Obviously, such a
contract which would also involve words or conduct, is to be seen
B
on the facts of each case. [Paras 18, 19][264-F-H; 265-A-B]
2.1 DELAY, LACHES AND ACQUIESCENCE:
The principles governing delay, laches, and acquiescence
are overlapping and interconnected on many occasions. However,
they have their distinct characters and distinct elements. One C
can say that delay is the genus to which laches and acquiescence
are species. Similarly, laches might be called a genus to a species
by name acquiescence. However, there may be a case where
acquiescence is involved, but not laches. These principles are
common law principles, and perhaps one could identify that these
principles find place in various statutes which restrict the period D
of limitation and create non-consideration of condonation in
certain circumstances. They are bound to be applied by way of
practice requiring prudence of the Court than of a strict application
of law. The underlying principle governing these concepts would
be one of estoppel. The question of prejudice is also an important E
issue to be taken note of by the Court. [Para 20][265-C-E]
2.2 LACHES:
The word laches is derived from the French language
meaning “remissness and slackness”. It thus involves
unreasonable delay or negligence in pursuing a claim involving F
an equitable relief while causing prejudice to the other party. It
is neglect on the part of a party to do an act which law requires
while asserting a right, and therefore, must stand in the way of
the party getting relief or remedy. Two essential factors to be
seen are the length of the delay and the nature of acts done during G
the interval. It would also involve acquiescence on the part of
the party approaching the Court apart from the change in position
in the interregnum. Therefore, it would be unjustifiable for a Court
of Equity to confer a remedy to a party who knocks its doors
H
256 SUPREME COURT REPORTS [2021] 10 S.C.R.
A when his acts would indicate a waiver of such a right. By his
conduct, he has put the other party in a particular position, and
therefore, it would be unreasonable to facilitate a challenge before
the Court. Thus, a man responsible for his conduct on equity is
not expected to be allowed to avail a remedy. A defence of laches
can only be allowed when there is no statutory bar. The question
B
as to whether there exists a clear case of laches on the part of a
person seeking a remedy is one of fact and so also that of prejudice.
The said principle may not have any application when the
existence of fraud is pleaded and proved by the other side. To
determine the difference between the concept of laches and
C acquiescence is that, in a case involving mere laches, the principle
of estoppel would apply to all the defences that are available to a
party. Therefore, a defendant can succeed on the various grounds
raised by the plaintiff, while an issue concerned alone would be
amenable to acquiescence. [Paras 21-23][265-F-H; 266-A-C]
D 2.3 ACQUIESCENCE :
Acquiescence would mean a tacit or passive acceptance. It
is implied and reluctant consent to an act. In other words, such
an action would qualify a passive assent. Thus, when acquiescence
takes place, it presupposes knowledge against a particular act.
E From the knowledge comes passive acceptance, therefore instead
of taking any action against any alleged refusal to perform the
original contract, despite adequate knowledge of its terms, and
instead being allowed to continue by consciously ignoring it and
thereafter proceeding further, acquiescence does take place. As
a consequence, it reintroduces a new implied agreement between
F the parties. Once such a situation arises, it is not open to the
party that acquiesced itself to insist upon the compliance of the
original terms. Hence, what is essential, is the conduct of the
parties. When acquiescence is followed by delay, it may become
laches. The concept of acquiescence is to be seen on a case-to-
G case basis. [Paras 24, 25][266-D-G]
2.4 APPROBATE AND REPROBATE:
These phrases are borrowed from the Scott’s law. They
would only mean that no party can be allowed to accept and reject
H
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 257
the same thing, and thus one cannot blow hot and cold. The A
principle behind the doctrine of election is inbuilt in the concept
of approbate and reprobate. Once again, it is a principle of equity
coming under the contours of common law. Therefore, he who
knows that if he objects to an instrument, he will not get the
benefit he wants cannot be allowed to do so while enjoying the
B
fruits. One cannot take advantage of one part while rejecting the
rest. A person cannot be allowed to have the benefit of an
instrument while questioning the same. Such a party either has
to affirm or disaffirm the transaction. This principle has to be
applied with more vigour as a common law principle, if such a
party actually enjoys the one part fully and on near completion of C
the said enjoyment, thereafter questions the other part. An
element of fair play is inbuilt in this principle. It is also a species
of estoppel dealing with the conduct of a party. [Para 26][266-H;
267-A-C]
3. ARTICLE 226 OF THE CONSTITUTION OF INDIA D
The Court would not dwell deep into the extraordinary and
discretionary nature of relief under Article 226 of the Constitution
of India. This principle is to be extended much more when an
element of undue delay, laches and acquiescence is involved. The
principle is also required to be adopted while considering a case E
involving approbation and reprobation. [Paras 28, 29][271-C;
279-D-E]
4. DOCTRINE OF FAIRNESS:
The doctrine of fairness is inbuilt in every employer and
employee relationship. The said doctrine has to be applied after F
the relationship come into being rather than at the stage of
recruitment. While dealing with recruitment, on the question of
suitability and adequacy, substantial discretion is appropriately
conferred on the employer. At that stage, the question is with
respect to the need of the employer to complete a particular type G
of work. In an employer and employee relationship, the doctrine
of fairness has to be applied with more vigour when it involves
an instrumentality of the State. Therefore, a State is not expected
to act adversely to the interest of the employee, and any
discrimination should be a valid one. Ultimately, one has to see
the overwhelming public interest as every action of the H
258 SUPREME COURT REPORTS [2021] 10 S.C.R.
A instrumentality of the state is presumed to be so. While applying
the said principle, one has to be conscious of the fact that there
may not be a legitimate expectation on the part of an employee
as against the statute. [Para 30][279-E-H]
5. WORKING RULES :
B The rules per se do not prohibit a tenure appointment. The
definition of direct recruitment would mean recruitment through
a process stipulated under the rules. Therefore, by no stretch of
the imagination, one can interpret that all direct recruitments
are to be made by regular employment. Therefore, direct
C recruitment can also be made for filing up the post on a tenure
basis. Hence, in the absence of any statutory bar under the rules,
a tenure appointment made through direct recruitment by
following the due procedure cannot be termed as contrary to law.
In a direct recruitment the appointment on a regular or tenure
basis is the discretion of the employer, especially when the rules
D do not prohibit. Rule 48 speaks of the age of superannuation for
a regular employee which will be the completion of sixty years.
There is no difficulty in appreciating the said rule, which deals
with a regular employee alone and therefore can have no
application while dealing with an appointment made on a tenure
E basis. After all, a Court of law cannot give a different status to an
employee than the one which was conferred and accepted
especially when the same is not prohibited under the rules.
[Para 32][282-C-E]
6.1 There is no element of an unequal bargaining power
F involved. Nobody has forced the respondent to enter into a
contract. He indeed was an employee of the society for 23 years.
This Court does not wish to go into the question as to whether it
is a case of re-employment or not, as the fact remains that the
respondent wanted the job, which is why there was an unexplained
and studied reluctance to raise the issue of him being a permanent/
G regular employee, but only at the fag end of his tenure. The first
of the representations were made on 30.12.2014, followed by
others. The conduct speaks for itself. Hence, on the principle
governing delay, laches, and acquiescence, followed by
approbation and reprobation, respondent no.1 ought not to have
H
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 259
been granted any relief by invoking Article 226 of the Constitution A
of India. There is no prohibition in law for a tenure appointment.
The Court is dealing with a post that stands at the top realm of
the administration. There is an intended object and rationale
attached to the post. It is the incumbent of the post who has to
carry forward the object and vision in the field of research. There
B
is certainly an overwhelming public interest involved. The
employer, has a load of discretion available. In the absence of
any arbitrariness, one cannot question its wisdom. After all, a
decision has been taken at the highest level. The Court cannot
infer that materials have not been placed before taking the
decision. A conscious decision has been made to go for a tenure C
appointment in the interest of society. Similarly, a conscious
decision was also made to go for a fresh recruitment. [Paras 37,
38][284-D-H; 285-A-B]
6.2 What was challenged is only a relieving order, which
cannot be given the character of a termination. The Division D
Bench misconstrued direct recruitment to mean an appointment
to a permanent post. The Court is dealing with direct recruitment
to a post of primary importance, i.e. Director-General, which is
to be filled on a tenure basis. The rules as perused and
understood do not prohibit a tenure appointment. In the absence
of any prohibition and mandatory mode of appointment, the E
appellant’s decision in going for a tenure appointment is perfectly
in order. [Para 39][285-C-D]
Somesh Thapliyal v. HNB Garhwal University 2021 SCC
Online SC 659 – distinguished.
F
6.3 On reading the appointment order, the Court could not
identify the existence of automatic extension. The order is very
explicit in saying that it is subject to suitability, and such suitability
for re-appointment having been considered, this Court is not
expected to substitute its view. The non-consideration of the
report by the “ACC” also would not be fatal, as the Cabinet G
Secretary himself has approved it, and so also the other higher
authorities. The respondent has not shown any substantial
prejudice. Even if one assumes that these materials have not
been placed before “ACC”, there may not be any need for such
H
260 SUPREME COURT REPORTS [2021] 10 S.C.R.
A approval for two reasons. Firstly, the first appellant found that
the respondent is not suitable for re-appointment, which was
approved by the other authorities. Therefore, the employer has
taken a conscious decision in the interest of the society. Secondly,
it is not a case of extension in which case maybe the confirmation
by “ACC” would have been warranted. All the appellants,
B
including the Hon’ble Minister, have approved the subsequent
decision to go for a fresh recruitment by taking note of the larger
public interest. Once it is held that the respondent is not entitled
to any extension, the consequential benefits cannot be granted.
The respondent is not entitled to any relief. The impugned order
C is set aside. [Paras 42-44][286-A-E]
Nagubai Ammal v. B. Shama Rao, 1956 SCR 451; State
of Punjab v. Dhanjit Singh Sandhu, (2014) 15 SCC
144 : [2014] 3 SCR 1121; Rajasthan State Industrial
Development & Investment Corpn. v. Diamond & Gem
D Development Corpn. Ltd., (2013) 5 SCC 470: [2013] 4
SCR 331; UP Jal Nigam v. Jaswant Singh, (2006) 11
SCC 464 : [2006] 8 Suppl. SCR 916; Eastern Coalfields
Ltd. v. Dugal Kumar, (2008) 14 SCC 295: [2008] 11
SCR 369; State of J&K v. R.K. Zalpuri, (2015) 15 SCC
602: [2015] 12 SCR 285; Assistant Excise Commissioner
E and Others v. Issac Peter and Other, Issac Peter;
Assistant Excise Commissioner, (1994) 4 SCC 104:
[1994] 2 SCR 67 – relied on.
Case Law Reference
F [2014] 3 SCR 1121 relied on Para 27
[2013] 4 SCR 331 relied on Para 27
[2006] 8 Suppl. SCR 916 relied on Para 28
[2008] 11 SCR 369 relied on Para 28
G [2015] 12 SCR 285 relied on Para 28
[1994] 2 SCR 67 relied on Para 30
H
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 261
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos.2491- A
2492 of 2021.
From the Judgment and Order dated 26.04.2019 of the High Court
of Karnataka at Bengaluru in Writ Appeal Nos.1555 and 1556 of 2018
(S-Res).
With B
Civil Appeal Nos.2493-2494 of 2021.
K. M. Nataraj, ASG, Gurmeet Singh Makker, Rajan Kr. Chaurasia,
Ms. Vimla Sinha, Vatsal Joshi, Sharath Nambiar, Prashant Bhushan,
Ms. Alice Raj, Rahul Gupta, Advs. for the Appearing Parties.
The Judgment of the Court was delivered by C
M. M. SUNDRESH, J.
1. Heard Shri KM Nataraj, learned Additional Solicitor General
appearing for the appellant and Shri Prashant Bhushan, learned counsel
for the respondent. There is no representation on behalf of Shri VS
Nandakumar who has been arrayed as a private respondent and whose D
recruitment and selection was also challenged by Respondent No.1. We
have also perused the documents filed and written submissions placed
by the parties.
2. As the present appeals are filed by both contesting parties
challenging the same impugned judgment, for the sake of brevity they
are disposed of by a common order. Civil Appeal No. 2491-2492 of 2021 E
is taken up as a lead case, and the parties arrayed thereunder are to be
taken in the same manner for the other cases as well.
PRIMARY FACTS:
3. Central Power Research Institute (CPRI) is an autonomous
body registered as a society under the Karnataka Societies Act, 1960. It F
functions under the aegis of the Ministry of Power. The object of this
institution is to contribute to the power sector in the country for improved
planning, operation and control of power systems while serving as a
national level laboratory for undertaking applied research in electrical
power engineering besides functioning as an independent national testing,
certification authority for electrical equipment, components to ensure G
reliability in power systems and to innovate and develop new products.
Thus, there is an extreme element of public interest involved in the
functioning of the CPRI.
4. The respondent/writ petitioner initially joined the services of
CPRI way back in the year 1984 - 05.07.1984. On his request, he was H
262 SUPREME COURT REPORTS [2021] 10 S.C.R.
A voluntarily retired while working as Engineering Officer, Grade-IV w.e.f.
31.03.2008.
5. By the Office Memorandum dated 08.11.1991, the Government
of India, Department of Personnel and Training introduced a procedure
which states that for appointment of certain specified posts, the approval
B of “Appointments Committee of the Cabinet” (“ACC”) consisting of
the Hon’ble Prime Minister and Hon’ble Home Minister, would be
required. A further Office Memorandum was issued on 03.07.2006,
facilitating appointments approved by “ACC” in autonomous institutions.
Needless to state, the post of Director-General is one among them.
C 6. An advertisement was made on 16.05.2009 to fill up the post of
Director-General either by direct recruitment or on deputation in tune
with CPRI (Pay, Recruitment and Promotion) Rules, 1989 (Working
Rule No.1). The respondent had applied for the said post being eligible
to be appointed on direct recruitment.
D 7. The working rule referred to above deals with various categories
of officers and personnel along with the mode of recruitment, designation,
the scale of pay, and the date of superannuation for the regular employees.
For the post of Director-General, there are two modes of recruitments
as noted earlier by us. One is by way of deputation, and the other is by
direct recruitment. Qualification with respect to age restriction is 55
E years for direct recruitment, while the same is extended by one more
year for deputation. On the educational qualification part, from the requisite
degrees, it would also involve 15 years of experience in the fields
mentioned thereunder. A performance review is also mandated on
completion of one year of service after appointment as Director-General,
F in the case of direct recruitment. The evaluation is made by the Search-
cum-Selection Committee consisting of experts in the field. The period
of deputation is capped at three years, extendable up to five years.
8. From the above, we could gather in clear terms that the post of
Director-General carries a very high degree of importance. The fact
G that the age limit is fixed at 55 years of completion, being the maximum
with 15 years of experience also indicates the rationale behind the
qualification fixed.
9. The Ministry of Power, after due deliberation on the
recommendation made by the Search-cum-Selection Committee in
favour of the respondent, sought the approval of “ACC” to the post of
H
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 263
[M. M. SUNDRESH, J.]
Director-General, CPRI from the date he assumes charge up to the A
date of his retirement on superannuation (31.05.2019) or until further
orders, whichever is earlier.
10. The file was circulated to the Hon’ble Minister and then to
the Hon’ble Prime Minister in pursuance of the recommendations made
by the Cabinet Secretary. After considering the relevant materials, the B
Hon’ble Prime Minister as member of the “ACC” gave his seal of
approval for an initial tenure of five years or until further orders, with a
further direction that the respondent would be eligible for re-appointment
for a further term up to 31.05.2019, the date of his superannuation.
11. An order of appointment was issued by the Ministry of Power C
vide its letter dated 22.03.2010. On 26.03.2010, the respondent accepted
the offer and joined his office. He was accordingly informed of the
decision made by the “ACC” regarding his appointment and tenure, even
prior to his acceptance. We may also note that due intimation has been
given on the terms and conditions, including the pay scale.
D
12. The respondent went on performing his part from the date of
him taking charge without any demur. On finding his tenure coming to
an end, for the first time he submitted a representation after about four
years and nine months from the date of his joining, to the Secretary,
Ministry of Power on 30.12.2014, taking a stand that since his
appointment was made by way of direct recruitment, he should be treated E
as a regular employee and therefore, to be continued till the date of his
superannuation. A similar request was also made to the President, CPRI
Governing Council. This was followed by a series of representations,
one after the other, perhaps knowing full well that time was running out.
13. Meanwhile, performance assessments were made as F
mandated under the rules, which were found satisfactory. On the question
of considering his eligibility for a further term of extension, a detailed
study was undertaken, resulting in a report dated 05.02.2015. This report
in clear terms, indicated that it would not be in the interest of the institute
to extend the tenure-based appointment for a further period. On such
report being placed before all the authorities, including the Hon’ble G
Minister, a conscious decision was made by the employer to go for fresh
recruitment. This decision was also approved by all the authorities. In
this connection, we may note that there is no clarity with regard to the
approval given by the “ACC” for the extension of service of the
respondent. In pursuance of the advertisement dated 22.02.2015, the H
264 SUPREME COURT REPORTS [2021] 10 S.C.R.
A private respondent was recruited and selected as the new Director-
General.
14. Under the aforesaid circumstances, the respondent filed two
writ petitions before the High Court of Karnataka questioning the relieving
order given to him by terming it as an order of termination with a further
B challenge to the report dated 05.02.2015, advertisement dated 22.02.2015,
and the recruitment of the private respondent.
15. The learned Single Judge dismissed the writ petitions on the
ground of delay and laches. It was further held that such a case did not
require the invocation of the discretionary jurisdiction under Article 226
C of the Constitution of India.
16. Aggrieved by the aforesaid, the respondent filed appeals before
the Division Bench. The Division Bench allowed the appeals without
granting an order of reinstatement by compensating the respondent. Thus,
the other reliefs sought by the respondent were not considered and
D granted. Against this order of the Division Bench dated 26.04.2019, these
appeals have been filed before us.
17. Before we deal with the submissions made at the Bar, it would
be imperative to deal, appreciate and reiterate the general and settled
principles of law while understanding the rules governing the present
E case.
THE INDIAN CONTRACT ACT, 1872:
18. Section 3 of the Act concerns itself with an act of
communication, acceptance, and revocation of proposal. When an offer
is made, it is required to be accepted by the receiver to partake the
F character of a concluded contract. Hence, the knowledge of the terms
of the offer is a primary and essential factor for acceptance. To
understand this better, when an acceptance is made in an unqualified
manner, it takes in its sweep the said acceptance along with the knowledge
of the terms of the offer. This is for the reason that an unaccepted offer
creates neither any right nor obligation. Such an acceptance as existing
G
under Section 7 of the Act must both be absolute and unqualified. As per
Section 8, the performance of the conditions of a proposal or the
acceptance of any consideration for a reciprocal promise which may be
offered with a proposal is an acceptance of the proposal. Hence, an
absolute and unqualified acceptance would give birth to the contract
H along with the terms of the offer.
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 265
[M. M. SUNDRESH, J.]
19. Section 39 deals with the effect of the refusal of the party to A
perform a promise wholly. Though we are not concerned with this
provision, this provision is the only one that speaks of the concept of
acquiescence, which could be signified by words or conduct, being an
exception for terminating the contract. Under this provision, a promisee
may put an end to the contract unless there exists an element of
B
acquiescence that could be seen and exhibited through his words or
conduct. Obviously, such a contract which would also involve words or
conduct, is to be seen on the facts of each case.
DELAY, LACHES AND ACQUIESCENCE:
20. The principles governing delay, laches, and acquiescence are C
overlapping and interconnected on many occasions. However, they have
their distinct characters and distinct elements. One can say that delay is
the genus to which laches and acquiescence are species. Similarly, laches
might be called a genus to a species by name acquiescence. However,
there may be a case where acquiescence is involved, but not laches.
These principles are common law principles, and perhaps one could D
identify that these principles find place in various statutes which restrict
the period of limitation and create non-consideration of condonation in
certain circumstances. They are bound to be applied by way of practice
requiring prudence of the Court than of a strict application of law. The
underlying principle governing these concepts would be one of estoppel. E
The question of prejudice is also an important issue to be taken note of
by the Court.
LACHES:
21. The word laches is derived from the French language meaning
“remissness and slackness”. It thus involves unreasonable delay or F
negligence in pursuing a claim involving an equitable relief while causing
prejudice to the other party. It is neglect on the part of a party to do an
act which law requires while asserting a right, and therefore, must stand
in the way of the party getting relief or remedy.
22. Two essential factors to be seen are the length of the delay G
and the nature of acts done during the interval. As stated, it would also
involve acquiescence on the part of the party approaching the Court
apart from the change in position in the interregnum. Therefore, it would
be unjustifiable for a Court of Equity to confer a remedy to a party who
knocks its doors when his acts would indicate a waiver of such a right.
H
266 SUPREME COURT REPORTS [2021] 10 S.C.R.
A By his conduct, he has put the other party in a particular position, and
therefore, it would be unreasonable to facilitate a challenge before the
Court. Thus, a man responsible for his conduct on equity is not expected
to be allowed to avail a remedy.
23. A defence of laches can only be allowed when there is no
B statutory bar. The question as to whether there exists a clear case of
laches on the part of a person seeking a remedy is one of fact and so
also that of prejudice. The said principle may not have any application
when the existence of fraud is pleaded and proved by the other side. To
determine the difference between the concept of laches and acquiescence
is that, in a case involving mere laches, the principle of estoppel would
C apply to all the defences that are available to a party. Therefore, a
defendant can succeed on the various grounds raised by the plaintiff,
while an issue concerned alone would be amenable to acquiescence.
ACQUIESCENCE :
D 24. We have already discussed the relationship between
acquiescence on the one hand and delay and laches on the other.
Acquiescence would mean a tacit or passive acceptance. It is implied
and reluctant consent to an act. In other words, such an action would
qualify a passive assent. Thus, when acquiescence takes place, it
presupposes knowledge against a particular act. From the knowledge
E comes passive acceptance, therefore instead of taking any action against
any alleged refusal to perform the original contract, despite adequate
knowledge of its terms, and instead being allowed to continue by
consciously ignoring it and thereafter proceeding further, acquiescence
does take place.
F 25. As a consequence, it reintroduces a new implied agreement
between the parties. Once such a situation arises, it is not open to the
party that acquiesced itself to insist upon the compliance of the original
terms. Hence, what is essential, is the conduct of the parties. We only
dealt with the distinction involving a mere acquiescence. When
G acquiescence is followed by delay, it may become laches. Here again,
we are inclined to hold that the concept of acquiescence is to be seen on
a case-to-case basis.
APPROBATE AND REPROBATE:
26. These phrases are borrowed from the Scott’s law. They would
H only mean that no party can be allowed to accept and reject the same
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 267
[M. M. SUNDRESH, J.]
thing, and thus one cannot blow hot and cold. The principle behind the A
doctrine of election is inbuilt in the concept of approbate and reprobate.
Once again, it is a principle of equity coming under the contours of
common law. Therefore, he who knows that if he objects to an instrument,
he will not get the benefit he wants cannot be allowed to do so while
enjoying the fruits. One cannot take advantage of one part while rejecting
B
the rest. A person cannot be allowed to have the benefit of an instrument
while questioning the same. Such a party either has to affirm or disaffirm
the transaction. This principle has to be applied with more vigour as a
common law principle, if such a party actually enjoys the one part fully
and on near completion of the said enjoyment, thereafter questions the
other part. An element of fair play is inbuilt in this principle. It is also a C
species of estoppel dealing with the conduct of a party. We have already
dealt with the provisions of the Contract Act concerning the conduct of
a party, and his presumption of knowledge while confirming an offer
through his acceptance unconditionally.
27. We would like to quote the following judgments for better D
appreciation and understanding of the said principle:
• Nagubai Ammal v. B. Shama Rao, 1956 SCR 451:
“But it is argued by Sri Krishnaswami Ayyangar that as the
proceedings in OS. No. 92 of 1938-39 are relied on as barring
the plea that the decree and sale in OS. No. 100 of 1919-20 E
are not collusive, not on the ground of res judicata or estoppel
but on the principle that a person cannot both approbate and
reprobate, it is immaterial that the present appellants were not
parties thereto, and the decision in Verschures Creameries
Ltd. v. Hull and Netherlands Steamship Company F
Ltd. [(1921) 2 KB 608], and in particular, the observations of
Scrutton, LJ, at page 611 were quoted in support of this position.
There, the facts were that an agent delivered goods to the
customer contrary to the instructions of the principal, who
thereafter filed a suit against the purchaser for price of goods
and obtained a decree. Not having obtained satisfaction, the G
principal next filed a suit against the agent for damages on the
ground of negligence and breach of duty. It was held that such
an action was barred. The ground of the decision is that when
on the same facts, a person has the right to claim one of two
reliefs and with full knowledge he elects to claim one and obtains H
268 SUPREME COURT REPORTS [2021] 10 S.C.R.
A it, it is not open to him thereafter to go back on his election and
claim the alternative relief. The principle was thus stated by
Bankes, L.J.:
“Having elected to treat the delivery to him as an
authorised delivery they cannot treat the same act as a
B misdelivery. To do so would be to approbate and
reprobate the same act”.
The observations of Scrutton, LJ on which the appellants rely
are as follows:
“A plaintiff is not permitted to ‘approbate and
C reprobate’. The phrase is apparently borrowed from the
Scotch law, where it is used to express the principle
embodied in our doctrine of election — namely, that no
party can accept and reject the same
instrument: Ker v. Wauchope [(1819) 1 Bli 1, 21]
D : Douglas-Menzies v. Umphelby [(1908) AC 224, 232]
. The doctrine of election is not however confined to
instruments. A person cannot say at one time that a
transaction is valid and thereby obtain some advantage,
to which he could only be entitled on the footing that it
is valid, and then turn round and say it is void for the
E purpose of securing some other advantage. That is to
approbate and reprobate the transaction”.
It is clear from the above observations that the maxim that a
person cannot ‘approbate and reprobate’ is only one application
of the doctrine of election, and that its operation must be
F confined to reliefs claimed in respect of the same transaction
and to the persons who are parties thereto. The law is thus
stated in Halsbury’s Laws of England, Vol. XIII, p. 464, para
512:
“On the principle that a person may not approbate and
G reprobate, a species of estoppel has arisen which seems
to be intermediate between estoppel by record and
estoppel in pais, and may conveniently be referred to
here. Thus a party cannot, after taking advantage under
an order (e.g. payment of costs), be heard to say that it
is invalid and ask to set it aside, or to set up to the
H
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 269
[M. M. SUNDRESH, J.]
prejudice of persons who have relied upon it a case A
inconsistent with that upon which it was founded; nor
will he be allowed to go behind an order made in
ignorance of the true facts to the prejudice of third
parties who have acted on it”.
• State of Punjab v. Dhanjit Singh Sandhu, (2014) 15 SCC B
144:
“22. The doctrine of “approbate and reprobate” is only a
species of estoppel, it implies only to the conduct of parties. As
in the case of estoppel it cannot operate against the provisions
of a statute. (Vide CIT v. V. MR. P. Firm Muar [CIT v. V. MR. C
P. Firm Muar, AIR 1965 SC 1216]).
23. It is settled proposition of law that once an order has been
passed, it is complied with, accepted by the other party and
derived the benefit out of it, he cannot challenge it on any
ground. (Vide Maharashtra SRTC v. Balwant Regular Motor D
Service [Maharashtra SRTC v. Balwant Regular Motor
Service, AIR 1969 SC 329].) In R.N. Gosain v. Yashpal
Dhir [R.N. Gosain v. Yashpal Dhir, (1992) 4 SCC 683] this
Court has observed as under: (SCC pp. 687-88, para 10)
E
“10. Law does not permit a person to both approbate
and reprobate. This principle is based on the doctrine
of election which postulates that no party can accept
and reject the same instrument and that ‘a person cannot
say at one time that a transaction is valid and thereby F
obtain some advantage, to which he could only be
entitled on the footing that it is valid, and then turn
round and say it is void for the purpose of securing
some other advantage’.”
25. The Supreme Court in Rajasthan State Industrial G
Development and Investment Corpn. v. Diamond and Gem
Development Corpn. Ltd. [Rajasthan State Industrial
Development and Investment Corpn. v. Diamond and Gem
Development Corpn. Ltd., (2013) 5 SCC 470 : (2013) 3 SCC
(Civ) 153] , made an observation that a party cannot be
permitted to “blow hot and cold”, “fast and loose” or “approbate H
270 SUPREME COURT REPORTS [2021] 10 S.C.R.
A and reprobate”. Where one knowingly accepts the benefits of
a contract or conveyance or an order, is estopped to deny the
validity or binding effect on him of such contract or conveyance
or order. This rule is applied to do equity, however, it must not
be applied in a manner as to violate the principles of right and
good conscience.
B
26. It is evident that the doctrine of election is based on the
rule of estoppel, the principle that one cannot approbate and
reprobate is inherent in it. The doctrine of estoppel by election
is one among the species of estoppel in pais (or equitable
estoppel), which is a rule of equity. By this law, a person may
C be precluded, by way of his actions, or conduct, or silence
when he has to speak, from asserting a right which he would
have otherwise had.”
· Rajasthan State Industrial Development & Investment
Corpn. v. Diamond & Gem Development Corpn. Ltd.,
D (2013) 5 SCC 470:
“I. Approbate and reprobate
15. A party cannot be permitted to “blow hot-blow cold”, “fast
and loose” or “approbate and reprobate”. Where one knowingly
E accepts the benefits of a contract, or conveyance, or of an
order, he is estopped from denying the validity of, or the binding
effect of such contract, or conveyance, or order upon himself.
This rule is applied to ensure equity, however, it must not be
applied in such a manner so as to violate the principles of what
is right and of good conscience. [Vide Nagubai Ammal v. B.
F Shama Rao [AIR 1956 SC 593] , CIT v. V. MR. P. Firm
Muar [AIR 1965 SC 1216] , Ramesh Chandra
Sankla v. Vikram Cement [(2008) 14 SCC 58 : (2009) 1 SCC
(L&S) 706 : AIR 2009 SC 713] , Pradeep Oil
Corpn. v. MCD [(2011) 5 SCC 270 : (2011) 2 SCC (Civ) 712 :
G AIR 2011 SC 1869] , Cauvery Coffee Traders v. Hornor
Resources (International) Co. Ltd. [(2011) 10 SCC 420 : (2012)
3 SCC (Civ) 685] and V. Chandrasekaran v. Administrative
Officer [(2012) 12 SCC 133 : (2013) 2 SCC (Civ) 136 : JT
(2012) 9 SC 260] .]
H
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 271
[M. M. SUNDRESH, J.]
16. Thus, it is evident that the doctrine of election is based on A
the rule of estoppel—the principle that one cannot approbate
and reprobate is inherent in it. The doctrine of estoppel by
election is one among the species of estoppel in pais (or
equitable estoppel), which is a rule of equity. By this law, a
person may be precluded, by way of his actions, or conduct, or
B
silence when it is his duty to speak, from asserting a right which
he would have otherwise had.”
ARTICE 226 OF THE CONSTITUTION OF INDIA:
28. We would not dwell deep into the extraordinary and
discretionary nature of relief under Article 226 of the Constitution of C
India. This principle is to be extended much more when an element of
undue delay, laches and acquiescence is involved. The following decisions
of this Court would suffice:
• UP Jal Nigam v. Jaswant Singh, (2006) 11 SCC 464:
“8. Our attention was also invited to a decision of this Court D
in State of Karnataka v. S.M. Kotrayya [(1996) 6 SCC 267 :
1996 SCC (L&S) 1488] . In that case the respondents woke
up to claim the relief which was granted to their colleagues by
the Tribunal with an application to condone the delay. The
Tribunal condoned the delay. Therefore, the state approached E
this Court and this Court after considering the matter observed
as under: (SCC p. 268)
“Although it is not necessary to give an explanation
for the delay which occurred within the period mentioned
in sub-sections (1) or (2) of Section 21, explanation F
should be given for the delay which occasioned after
the expiry of the aforesaid respective period applicable
to the appropriate case and the Tribunal should satisfy
itself whether the explanation offered was proper. In
the instant case, the explanation offered was that they
came to know of the relief granted by the Tribunal in G
August 1989 and that they filed the petition immediately
thereafter. That is not a proper explanation at all. What
was required of them to explain under sub-sections (1)
and (2) was as to why they could not avail of the remedy
of redressal of their grievances before the expiry of the H
272 SUPREME COURT REPORTS [2021] 10 S.C.R.
A period prescribed under sub-section (1) or (2). That
was not the explanation given. Therefore, the Tribunal
was wholly unjustified in condoning the delay.”
9. Similarly in Jagdish Lal v. State of Haryana [(1997) 6 SCC
538 : 1997 SCC (L&S) 1550] this Court reaffirmed the rule
B that if a person chose to sit over the matter and then woke up
after the decision of the Court, then such person cannot stand
to benefit. In that case it was observed as follows: (SCC p.
542)
“The delay disentitles a party to discretionary relief
C under Article 226 or Article 32 of the Constitution. The
appellants kept sleeping over their rights for long and
woke up when they had the impetus from Virpal Singh
Chauhan case [Union of India v. Virpal Singh
Chauhan, (1995) 6 SCC 684 : 1996 SCC (L&S) 1 :
(1995) 31 ATC 813] . The appellants desperate attempt
D to redo the seniority is not amenable to judicial review
at this belated stage.”
10. In Union of India v. C.K. Dharagupta [(1997) 3 SCC 395
: 1997 SCC (L&S) 821] it was observed as follows: (SCC p.
398, para 9)
E
“9. We, however, clarify that in view of our finding that
the judgment of the Tribunal in R.P. Joshi [R.P.
Joshi v. Union of India, OA No. 497 of 1986 decided
on 17-3-1987] gives relief only to Joshi, the benefit of
the said judgment of the Tribunal cannot be extended
F to any other person. The respondent C.K. Dharagupta
(since retired) is seeking benefit of Joshi case [R.P.
Joshi v. Union of India, OA No. 497 of 1986 decided
on 17-3-1987] . In view of our finding that the benefit
of the judgment of the Tribunal dated 17-3-1987 could
G only be given to Joshi and nobody else, even
Dharagupta is not entitled to any relief.”
11. In Govt. of WB v. Tarun K. Roy [(2004) 1 SCC 347 : 2004
SCC (L&S) 225] their Lordships considered delay as serious
factor and have not granted relief. Therein it was observed as
follows: (SCC pp. 359-60, para 34)
H
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 273
[M. M. SUNDRESH, J.]
“34. The respondents furthermore are not even entitled A
to any relief on the ground of gross delay and laches
on their part in filing the writ petition. The first two writ
petitions were filed in the year 1976 wherein the
respondents herein approached the High Court in 1992.
In between 1976 and 1992 not only two writ petitions
B
had been decided, but one way or the other, even the
matter had been considered by this Court in Debdas
Kumar [State of WB v. Debdas Kumar, 1991 Supp (1)
SCC 138 : 1991 SCC (L&S) 841 : (1991) 17 ATC 261].
The plea of delay, which Mr Krishnamani states, should
be a ground for denying the relief to the other persons C
similarly situated would operate against the
respondents. Furthermore, the other employees not
being before this Court although they are ventilating
their grievances before appropriate courts of law, no
order should be passed which would prejudice their
D
cause. In such a situation, we are not prepared to make
any observation only for the purpose of grant of some
relief to the respondents to which they are not legally
entitled to so as to deprive others therefrom who may
be found to be entitled thereto by a court of law.”
E
• Eastern Coalfields Ltd. v. Dugal Kumar, (2008) 14 SCC
295:
“24. As to delay and laches on the part of the writ petitioner,
there is substance in the argument of learned counsel for the
appellant Company. It is well settled that under Article 226 of
the Constitution, the power of a High Court to issue an F
appropriate writ, order or direction is discretionary. One of the
grounds to refuse relief by a writ court is that the petitioner is
guilty of delay and laches. It is imperative, where the petitioner
invokes extraordinary remedy under Article 226 of the
Constitution, that he should come to the court at the earliest G
reasonably possible opportunity. Inordinate delay in making the
motion for a writ is indeed an adequate ground for refusing to
exercise discretion in favour of the applicant.
25. Under the English law, an application for leave for judicial
review should be made “promptly”. If it is made tardily, it may H
274 SUPREME COURT REPORTS [2021] 10 S.C.R.
A be rejected. The fact that there is breach of public law duty
does not necessarily make it irrelevant to consider delay or
laches on the part of the applicant. Even if leave is granted,
the question can be considered at the time of final hearing
whether relief should be granted in favour of such applicant or
not. (Vide R. v. Essex County Council [1993 COD 344] .)
B
26. In R. v. Dairy Produce Quota Tribunal, ex p
Caswell [(1990) 2 AC 738 : (1990) 2 WLR 1320 : (1990) 2 All
ER 434 (HL)] , AC at p. 749, the House of Lords stated [Ed.:
Quoting from O’Reilly v. Mackman, (1982) 3 All ER 1124 at
p. 1131a-b.] : (All ER p. 441a-b)
C
“The public interest in good administration requires that
public authorities and third parties should not be kept
in suspense as to the legal validity of a decision the
authority has reached in purported exercise of decision-
making powers for any longer period than is absolutely
D necessary in fairness to the person affected by the
decision.”
27. The underlying object of refusing to issue a writ has been
succinctly explained by Sir Barnes Peacock in Lindsay
Petroleum Co. v. Prosper Armstrong Hurd [1874 LR 5 PC 221
E : 22 WR 492] , thus: (LR pp. 239-40)
“Now the doctrine of laches in courts of equity is not
an arbitrary or a technical doctrine. Where it would be
practically unjust to give a remedy, either because the
party has, by his conduct, done that which might fairly
F be regarded as equivalent to a waiver of it, or where by
his conduct and neglect he has, though perhaps not
waiving that remedy, yet put the other party in a
situation, in which it would not be reasonable to place
him if the remedy were afterwards to be asserted, in
either of these cases, lapse of time and delay are most
G material. But in every case, if an argument against relief,
which otherwise would be just, is founded upon mere
delay, that delay of course not amounting to a bar by
any statute of limitations, the validity of that defence
must be tried upon principles substantially
H equitable. Two circumstances, always important in such
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 275
[M. M. SUNDRESH, J.]
cases, are, the length of the delay and the nature of the A
acts done during the interval, which might affect either
party and cause a balance of justice or injustice in
taking the one course or the other, so far as it relates to
the remedy.”
(emphasis supplied) B
28. This Court has accepted the above principles of English
law. In Tilokchand Motichand v. H.B. Munshi [(1969) 1 SCC
110 : (1969) 2 SCR 824] and Rabindranath Bose v. Union of
India [(1970) 1 SCC 84 : (1970) 2 SCR 697] this Court ruled
that even in cases of violation or infringement of fundamental
C
rights, a writ court may take into account delay and laches on
the part of the petitioner in approaching the court. And if there
is gross or unexplained delay, the court may refuse to grant
relief in favour of such petitioner.”
• State of J&K v. R.K. Zalpuri, (2015) 15 SCC 602:
D
“20. Having stated thus, it is useful to refer to a passage
from City and Industrial Development Corpn. v. Dosu
Aardeshir Bhiwandiwala [City and Industrial Development
Corpn. v. Dosu Aardeshir Bhiwandiwala, (2009) 1 SCC 168] ,
wherein this Court while dwelling upon jurisdiction under Article
226 of the Constitution, has expressed thus: (SCC p. 175, para E
30)
“30. The Court while exercising its jurisdiction under
Article 226 is duty-bound to consider whether:
(a) adjudication of writ petition involves any complex
and disputed questions of facts and whether they can F
be satisfactorily resolved;
(b) the petition reveals all material facts;
(c) the petitioner has any alternative or effective remedy
for the resolution of the dispute;
G
(d) person invoking the jurisdiction is guilty of
unexplained delay and laches;
(e) ex facie barred by any laws of limitation;
(f) grant of relief is against public policy or barred by
any valid law; and host of other factors.” H
276 SUPREME COURT REPORTS [2021] 10 S.C.R.
A 21. In this regard reference to a passage from Karnataka
Power Corpn. Ltd. v. K. Thangappan [Karnataka Power
Corpn. Ltd. v. K. Thangappan, (2006) 4 SCC 322 : 2006 SCC
(L&S) 791] would be apposite: (SCC p. 325, para 6)
“6. Delay or laches is one of the factors which is to be
B borne in mind by the High Court when they exercise
their discretionary powers under Article 226 of the
Constitution. In an appropriate case the High Court
may refuse to invoke its extraordinary powers if there
is such negligence or omission on the part of the
applicant to assert his right as taken in conjunction
C
with the lapse of time and other circumstances, causes
prejudice to the opposite party.”
After so stating the Court after referring to the authority in State
of M.P. v. Nandlal Jaiswal [State of M.P. v. Nandlal
Jaiswal, (1986) 4 SCC 566] restated the principle articulated
D
in earlier pronouncements, which is to the following effect:
(SCC p. 326, para 9)
“9. … the High Court in exercise of its discretion does
not ordinarily assist the tardy and the indolent or the
acquiescent and the lethargic. If there is inordinate delay
E
on the part of the petitioner and such delay is not
satisfactorily explained, the High Court may decline to
intervene and grant relief in exercise of its writ
jurisdiction. It was stated that this rule is premised on a
number of factors. The High Court does not ordinarily
F permit a belated resort to the extraordinary remedy
because it is likely to cause confusion and public
inconvenience and bring, in its train new injustices, and
if writ jurisdiction is exercised after unreasonable delay,
it may have the effect of inflicting not only hardship
and inconvenience but also injustice on third parties.
G
It was pointed out that when writ jurisdiction is invoked,
unexplained delay coupled with the creation of third-
party rights in the meantime is an important factor which
also weighs with the High Court in deciding whether or
not to exercise such jurisdiction.”
H
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 277
[M. M. SUNDRESH, J.]
22. In State of Maharashtra v. Digambar [State of A
Maharashtra v. Digambar, (1995) 4 SCC 683] a three-Judge
Bench laid down that: (SCC p. 692, para 19)
“19. Power of the High Court to be exercised under
Article 226 of the Constitution, if is discretionary, its
exercise must be judicious and reasonable, admits of B
no controversy. It is for that reason, a person’s
entitlement for relief from a High Court under Article
226 of the Constitution, be it against the State or
anybody else, even if is founded on the allegation of
infringement of his legal right, has to necessarily
depend upon unblameworthy conduct of the person C
seeking relief, and the court refuses to grant the
discretionary relief to such person in exercise of such
power, when he approaches it with unclean hands or
blameworthy conduct.”
23. Recently in Chennai Metropolitan Water Supply and D
Sewerage Board v. T.T. Murali Babu [Chennai
Metropolitan Water Supply and Sewerage Board v. T.T.
Murali Babu, (2014) 4 SCC 108 : (2014) 1 SCC (L&S) 38] ,
it has been ruled thus: (SCC p. 117, para 16)
“16. Thus, the doctrine of delay and laches should not E
be lightly brushed aside. A writ court is required to weigh
the explanation offered and the acceptability of the
same. The court should bear in mind that it is exercising
an extraordinary and equitable jurisdiction. As a
constitutional court it has a duty to protect the rights of
the citizens but simultaneously it is to keep itself alive F
to the primary principle that when an aggrieved person,
without adequate reason, approaches the court at his
own leisure or pleasure, the court would be under legal
obligation to scrutinise whether the lis at a belated stage
should be entertained or not. Be it noted, delay comes G
in the way of equity. In certain circumstances delay and
laches may not be fatal but in most circumstances
inordinate delay would only invite disaster for the
litigant who knocks at the doors of the court. Delay
reflects inactivity and inaction on the part of a litigant—
a litigant who has forgotten the basic norms, namely, H
278 SUPREME COURT REPORTS [2021] 10 S.C.R.
A ‘procrastination is the greatest thief of time’ and second,
law does not permit one to sleep and rise like a phoenix.
Delay does bring in hazard and causes injury to the
lis.”
24. At this juncture, we are obliged to state that the question
B of delay and laches in all kinds of cases would not curb or
curtail the power of the writ court to exercise the discretion.
In Tukaram Kana Joshi v. Maharashtra Industrial
Development Corpn. [Tukaram Kana Joshi v. Maharashtra
Industrial Development Corpn., (2013) 1 SCC 353 : (2013)
1 SCC (Civ) 491] it has been ruled that: (SCC pp. 359-60, para
C 12)
“12. … Delay and laches is adopted as a mode of
discretion to decline exercise of jurisdiction to grant
relief. There is another facet. The Court is required to
exercise judicial discretion. The said discretion is
D dependent on facts and circumstances of the cases.
Delay and laches is one of the facets to deny exercise
of discretion. It is not an absolute impediment. There
can be mitigating factors, continuity of cause of action,
etc. That apart, if the whole thing shocks the judicial
E conscience, then the Court should exercise the discretion
more so, when no third-party interest is involved. Thus
analysed, the petition is not hit by the doctrine of delay
and laches as the same is not a constitutional limitation,
the cause of action is continuous and further the
situation certainly shocks judicial conscience.”
F
And again: (SCC p. 360, para 14)
“14. No hard-and-fast rule can be laid down as to when
the High Court should refuse to exercise its jurisdiction
in favour of a party who moves it after considerable
delay and is otherwise guilty of laches. Discretion must
G
be exercised judiciously and reasonably. In the event
that the claim made by the applicant is legally
sustainable, delay should be condoned. In other words,
where circumstances justifying the conduct exist, the
illegality which is manifest, cannot be sustained on the
H sole ground of laches. When substantial justice and
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 279
[M. M. SUNDRESH, J.]
technical considerations are pitted against each other, A
the cause of substantial justice deserves to be preferred,
for the other side cannot claim to have a vested right in
the injustice being done, because of a non-deliberate
delay. The court should not harm innocent parties if
their rights have in fact emerged by delay on the part
B
of the petitioners. (Vide Durga Prashad v. Controller of
Imports and Exports [Durga Prashad v. Controller of
Imports and Exports, (1969) 1 SCC 185] , Collector
(LA) v. Katiji [Collector (LA) v. Katiji, (1987) 2 SCC 107
: 1989 SCC (Tax) 172] , Dehri Rohtas Light Railway
Co. Ltd. v. District Board, Bhojpur [Dehri Rohtas Light C
Railway Co. Ltd. v. District Board, Bhojpur, (1992) 2
SCC 598] , Dayal Singh v. Union of India [Dayal
Singh v. Union of India, (2003) 2 SCC 593]
and Shankara Coop. Housing Society Ltd. v. M.
Prabhakar [Shankara Coop. Housing Society Ltd. v. M.
D
Prabhakar, (2011) 5 SCC 607 : (2011) 3 SCC (Civ)
56].)”
29. The aforesaid principle is also required to be adopted while
considering a case involving approbation and reprobation.
DOCTRINE OF FAIRNESS: E
30. The doctrine of fairness is inbuilt in every employer and
employee relationship. The said doctrine has to be applied after the
relationship come into being rather than at the stage of recruitment.
While dealing with recruitment, on the question of suitability and adequacy,
substantial discretion is appropriately conferred on the employer. At that F
stage, the question is with respect to the need of the employer to complete
a particular type of work. In an employer and employee relationship, the
doctrine of fairness has to be applied with more vigour when it involves
an instrumentality of the state. Therefore, a State is not expected to act
adversely to the interest of the employee, and any discrimination should
be a valid one. Ultimately, one has to see the overwhelming public interest G
as every action of the instrumentality of the state is presumed to be so.
While applying the said principle, one has to be conscious of the fact that
there may not be a legitimate expectation on the part of an employee as
against the statute. We would like to refer to the following judgment of
this court on the above principle. H
280 SUPREME COURT REPORTS [2021] 10 S.C.R.
A • Assistant Excise Commissioner and Others v. Issac Peter
and Other, Issac Peter ; Assistant Excise Commissioner,
(1994) 4 SCC 104:
“26. Learned counsel for respondents then submitted that
doctrine of fairness and reasonableness must be read into
B contracts to which state is a party. It is submitted that the state
cannot act unreasonably or unfairly even while acting under a
contract involving State power. Now, let us see, what is the
purpose for which this argument is addressed and what is the
implication? The purpose, as we can see, is that though the
C contract says that supply of additional quota is discretionary, it
must be read as obligatory — at least to the extent of previous
year’s supplies — by applying the said doctrine. It is submitted
that if this is not done, the licensees would suffer monetarily.
The other purpose is to say that if the state is not able to supply
so, it would be unreasonable on its part to demand the full
D amount due to it under the contract. In short, the duty to act
fairly is sought to be imported into the contract to modify and
alter its terms and to create an obligation upon the state which
is not there in the contract. We must confess, we are not aware
of any such doctrine of fairness or reasonableness. Nor could
E the learned counsel bring to our notice any decision laying down
such a proposition. Doctrine of fairness or the duty to act fairly
and reasonably is a doctrine developed in the administrative
law field to ensure the rule of law and to prevent failure of
justice where the action is administrative in nature. Just as
principles of natural justice ensure fair decision where the
F function is quasi-judicial, the doctrine of fairness is evolved to
ensure fair action where the function is administrative. But it
can certainly not be invoked to amend, alter or vary the express
terms of the contract between the parties. This is so, even if
the contract is governed by statutory provisions, i.e., where it
G is a statutory contract — or rather more so. It is one thing to
say that a contract — every contract — must be construed
reasonably having regard to its language. But this is not what
the licensees say. They seek to create an obligation on the
other party to the contract, just because it happens to be the
state. They are not prepared to apply the very same rule in
H
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 281
[M. M. SUNDRESH, J.]
converse case, i.e., where the state has abundant supplies and A
wants the licensees to lift all the stocks. The licensees will
undertake no obligation to lift all those stocks even if the state
suffers loss. This one-sided obligation, in modification of express
terms of the contract, in the name of duty to act fairly, is what
we are unable to appreciate. The decisions cited by the learned
B
counsel for the licensees do not support their proposition. In
Dwarkadas Marfatia v. Board of Trustees of the Port of
Bombay [(1989) 3 SCC 293] it was held that where a public
authority is exempted from the operation of a statute like Rent
Control Act, it must be presumed that such exemption from
the statute is coupled with the duty to act fairly and reasonably. C
The decision does not say that the terms and conditions of
contract can be varied, added or altered by importing the said
doctrine. It may be noted that though the said principle was
affirmed, no relief was given to the appellant in that case.
Shrilekha Vidyarthi v. State of UP [(1991) 1 SCC 212 : 1991 D
SCC (L&S) 742] was a case of mass termination of District
Government Counsel in the State of UP It was a case of
termination from a post involving public element. It was a case
of non-government servant holding a public office, on account
of which it was held to be a matter within the public law field.
This decision too does not affirm the principle now canvassed E
by the learned counsel. We are, therefore, of the opinion that
in case of contracts freely entered into with the state, like the
present ones, there is no room for invoking the doctrine of
fairness and reasonableness against one party to the contract
(State), for the purpose of altering or adding to the terms and F
conditions of the contract, merely because it happens to be the
state. In such cases, the mutual rights and liabilities of the parties
are governed by the terms of the contracts (which may be
statutory in some cases) and the laws relating to contracts. It
must be remembered that these contracts are entered into
pursuant to public auction, floating of tenders or by negotiation. G
There is no compulsion on anyone to enter into these contracts.
It is voluntary on both sides. There can be no question of the
State power being involved in such contracts. It bears repetition
to say that the state does not guarantee profit to the licensees
in such contracts.” H
282 SUPREME COURT REPORTS [2021] 10 S.C.R.
A WORKING RULES :
31. We have already discussed the qualification qua the post of
Director-General. Recruitment to the post of Director-General is to be
made under the working rules either directly or on deputation. This is on
an all-India basis through a duly constituted Search-cum-Selection
B Committee. The only exception is by way of a contractual appointment
which is for a very brief and temporary period, which can be appointed
by the President, CPRI, with the approval of the Government of India.
32. The rules per se do not prohibit a tenure appointment. The
definition of direct recruitment would mean recruitment through a process
C stipulated under the rules. Therefore, by no stretch of the imagination,
one can interpret that all direct recruitments are to be made by regular
employment. Therefore, direct recruitment can also be made for filing
up the post on a tenure basis. Hence, in the absence of any statutory bar
under the rules, a tenure appointment made through direct recruitment
by following the due procedure cannot be termed as contrary to law. In
D a direct recruitment the appointment on a regular or tenure basis is the
discretion of the employer, especially when the rules do not prohibit.
Rule 48 speaks of the age of superannuation for a regular employee,
which will be the completion of sixty years. There is no difficulty in
appreciating the said rule, which deals with a regular employee alone
E and therefore can have no application while dealing with an appointment
made on a tenure basis. After all, a Court of law cannot give a different
status to an employee than the one which was conferred and accepted
especially when the same is not prohibited under the rules.
SUBMISSIONS OF THE PARTIES:
F SUBMISSIONS OF THE APPELLANTS:
33. The learned Additional Solicitor General appearing for the
appellants submitted that the relief sought by the respondent cannot be
granted on the ground of delay, laches, and acquiescence. Similarly, the
principle governing approbation and reprobation would also disentitle the
G relief, especially when Article 226 of the Constitution is invoked. The
rules do not prohibit a tenure-based appointment. The respondent made
a request only after enjoying his tenure near the end of the period. It
was also only made for continuance till the date of superannuation. The
impugned order passed by the appellants is only a relieving order. The
performance assessment under the rules after the first year or subsequent
H
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 283
[M. M. SUNDRESH, J.]
thereto has nothing to do with the assessment made for re-appointment. A
The initial appointment itself was by way of re-employment. The
appointment order clearly states that the respondent is appointed for an
initial tenure of five years or until further orders and re-appointment will
be based on suitability. Clause 48 of the rules is only applicable to regular
employees, indicating the upper age limit to remain in service and thus,
B
cannot be an enabling one to a tenure-based appointee. The
recommendation of the Search-Cum-Selection Committee and by way
of the cabinet note is not binding while considering the tenure of the
respondent. All the materials were placed before the “ACC”, and
thereafter, a conscious decision was taken on both occasions. Suitability
and adequacy are the discretion of the employer alone. There is no C
arbitrariness involved in not considering the extension. The Division Bench
has not considered the materials in the correct perspective.
34. On the relief sought by the respondent, it is submitted that
even the period of superannuation is over, and the private respondent
has been selected on merit on the recommendation of the Search-cum- D
Selection Committee. No specific plea has been raised with respect to
his continuance as the representation was made on the ground that the
respondent should be considered as a regular employee. Thus, the appeals
filed by the respondents are also to be dismissed.
SUBMISSIONS BY THE RESPONDENTS: E
35. Mr. Prashant Bhushan, in his own inimitable style, submitted
that the Division Bench has gone through the files while recording its
findings which do not warrant any interference. There is a clear violation
of Articles 14 and 16 of the Constitution of India. On the first occasion,
there is nothing to infer that relevant materials have been considered, F
and on the second, “ACC” has not been put on notice on the adverse
report. The adverse report itself has been prepared by persons junior to
the respondent, and therefore, the same ought to be eschewed. There is
no power or authority in passing the impugned termination order. Since
the very case of the respondent is that he should be continued till the
date of his superannuation, the impugned order passed by the appellants G
is not a mere relieving order but a termination. The Division Bench has
not considered the other relief sought by the respondent, and therefore
in light of the findings rendered, the writ petitions are liable to be allowed
in toto. There are no statutory rules for a tenure appointment, and hence
the respondent should have been treated as a regular employee. The H
284 SUPREME COURT REPORTS [2021] 10 S.C.R.
A annual performance reports of the respondent found him to be
“outstanding”. The President, CPRI-GC, does not have the power to
terminate, as the “ACC” being the appointing authority, alone has the
right.
36. There is no inordinate delay in approaching the Court as the
B respondent was under the bona fide impression and the legitimate
expectation that since the rules do not permit a tenure-based appointment,
he is to continue till the date of superannuation. In fact, the respondent
made multiple representations to the appellants seeking rectification in
the terms of his appointment letter. A mere delay in approaching the
employer by way of representations and the High Court would not
C constitute estoppel, especially when the terms are not in consonance
with the rules, as held in the judgment of this Court in Somesh Thapliyal
Vs. HNB Garhwal University, 2021 SCC Online SC 659.
DISCUSSION:
D 37. We have already dealt with the principles of law that may
have a bearing on this case. There is no element of an unequal bargaining
power involved. Nobody has forced the respondent to enter into a
contract. He indeed was an employee of the society for 23 years. We
do not wish to go into the question as to whether it is a case of re-
employment or not, as the fact remains that the respondent wanted the
E job, which is why there was an unexplained and studied reluctance to
raise the issue of him being a permanent/regular employee, but only at
the fag end of his tenure.
38. The first of the representations were made on 30.12.2014,
followed by others. The conduct speaks for itself. Hence, on the principle
F governing delay, laches, and acquiescence, followed by approbation and
reprobation, respondent no. 1 ought not to have been granted any relief
by invoking Article 226 of the Constitution of India. On the interpretation
of the rules, we have already discussed that there is no prohibition in law
for a tenure appointment. We are dealing with a post that stands at the
G top realm of the administration. There is an intended object and rationale
attached to the post. It is the incumbent of the post who has to carry
forward the object and vision in the field of research. As noted earlier,
there is certainly an overwhelming public interest involved. The employer,
has a load of discretion available. In the absence of any arbitrariness,
one cannot question its wisdom. After all, a decision has been taken at
H the highest level. We cannot infer that materials have not been placed
UNION OF INDIA AND OTHERS v. N MURUGESAN ETC. 285
[M. M. SUNDRESH, J.]
before taking the decision. The Division Bench was not right in holding A
that the highest constitutional authority on the executive side was misled
by the lower officials. We find no place for such an inference. A conscious
decision has been made to go for a tenure appointment in the interest of
society. Similarly, a conscious decision was also made to go for a fresh
recruitment.
B
39. There is a marked difference between the assessments made
during the respondent’s tenure and the one made for continuation after
the completion of the tenure. No question of being a junior or senior
arises as materials have been placed for assessment by a different
department. The assessment was done by the highest authorities, as
approved by the Secretary to the Government of India and by the Hon’ble C
Minister concerned apart from the Cabinet Secretary. What was
challenged is only a relieving order, which cannot be given the character
of a termination. The Division Bench has misconstrued direct recruitment
to mean an appointment to a permanent post. We are dealing with direct
recruitment to a post of primary importance, i.e. Director-General, which D
is to be filled on a tenure basis. The rules as perused and understood by
us do not prohibit a tenure appointment. In the absence of any prohibition
and mandatory mode of appointment, the appellant’s decision in going
for a tenure appointment is perfectly in order.
40. We find, much water has already flown under the bridge. The E
private respondent has already been appointed in 2016 after following
the due procedure and continues to date. The respondent is an ex-
employee of the first appellant-Society and, having put in 23 years of
service, knows its functioning very well. Thus, in our considered view,
the order passed by the Division Bench cannot be sustained in the eye
of the law. F
41. Mr. Prashant Bhushan, made reliance upon the decision
rendered by this Court in Somesh Thapliyal V. HNB Garhwal
University, 2021 SCC OnLine SC 659. We are of the view that it is
not a case in point. In the said decision, rules were in place for a regular
employment, and the post filled was a bottom-line post. The concept of G
bargaining power was thus rightly applied by this Court. The grievance
was also in tune with the rules, and there was no justification for a
contractual appointment, whereas in the case at hand, we are dealing
with a tenure-based appointment. Thus, the facts being different, the
ratio has no application. H
286 SUPREME COURT REPORTS [2021] 10 S.C.R.
A 42. On reading the appointment order, we could not identify the
existence of automatic extension. The order is very explicit in saying
that it is subject to suitability, and such suitability for re-appointment
having been considered, this Court is not expected to substitute its view.
The non-consideration of the report by the “ACC” also would not be
fatal, as the Cabinet Secretary himself has approved it, and so also the
B
other higher authorities. The respondent has not shown any substantial
prejudice. Even if one assumes that these materials have not been placed
before “ACC”, we believe that there may not be any need for such
approval for two reasons. Firstly, the first appellant found that the
respondent is not suitable for re-appointment, which was approved by
C the other authorities. Therefore, the employer has taken a conscious
decision in the interest of the society. Secondly, it is not a case of extension
in which case maybe the confirmation by “ACC” would have been
warranted. We may also note that all the appellants, including the Hon’ble
Minister, have approved the subsequent decision to go for a fresh
recruitment by taking note of the larger public interest.
D
43. In light of the discussion made, the appeals filed by the
respondent deserve to be dismissed. Once we hold that the respondent
is not entitled to any extension, the consequential benefits cannot be
granted. Thus, both on the assessment of facts and the concept of law,
we are constrained to hold that the respondent is not entitled to any
E relief.
44. Accordingly, the appeals filed by the appellants stand allowed
by setting aside the impugned order under challenge, and as a
consequence, the appeals filed by the respondent are dismissed. No
costs.
F
Divya Pandey Appeal disposed of.
G
H
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