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Supreme Court of India

UNION OF INDIA & ORS. ETC.versusPROHLAD GUHA ETC.

Citation
2024 INSC 563
Decided
1 August 2024
Disposal
Appeal(s) allowed

Holding

An appointment obtained by fraud on compassionate grounds is void ab initio and the employee is not entitled to constitutional protection, rendering the dismissal lawful.

Summary

The respondents were appointed to the Eastern Railway on compassionate grounds, but the railway authority later discovered that the documents supporting their claims were forged and terminated their services. The respondents challenged the termination before the Central Administrative Tribunal, which dismissed their applications, a decision later set aside by the Calcutta High Court, directing reinstatement. The Union of India appealed, arguing that the dismissals were lawful because the appointments were obtained fraudulently and the respondents failed to produce any valid proof of their fathers' service. The Supreme Court held that compassionate appointments are not a right and must be substantiated with genuine documents; fraud vitiates the appointment and bars any constitutional protection under Article 311. Consequently, the Court restored the Tribunal’s dismissal order and affirmed the respondents’ termination, allowing the appeals.

Issues considered

  • The legality of dismissing employees appointed on compassionate grounds when the appointment was based on forged documents
  • Whether the respondents were entitled to protection under Article 311 of the Constitution despite alleged fraud
  • Whether the principles of natural justice were violated in the termination process
  • Whether the High Court erred in setting aside the Tribunal’s order

Legislation cited

Subjects

Service LawCompassionate appointmentForged/fabricated and bogus documentsFalse claimsTermination from serviceProtection under ConstitutionArticle 311 of ConstitutionFraudFraud vitiates all proceedingsPrinciples of natural justiceProduction of documents

Judgment

                   [2024] 8 S.C.R. 8 : 2024 INSC 563

                        Union of India & Ors. Etc.
                                    v.
                           Prohlad Guha Etc.
                   (Civil Appeal Nos. 4434-4437 of 2014)
                                01 August 2024
              [J.K. Maheshwari and Sanjay Karol,* JJ.]

                            Issue for Consideration
       Respondent-employees were appointed on compassionate ground.
       The authority found that their appointments were based on forged/
       fabricated and bogus documents and their services were terminated.
       The issue which arises for consideration is whether the dismissal
       from service handed down to the respondent-employees is legally
       sustainable or not.

                                   Headnotes†
       Service Law – Appointment on compassionate ground –
       Allegation that appointments of respondent-employees were
       based on forged/fabricated and bogus documents – Employees
       were terminated from services – Original Applications filed
       before CAT against the termination order – CAT dismissed
       the applications holding that applicants have not stated about
       the service particulars of their fathers viz where their father
       working or whom they retired etc. – However, the High Court
       held that the order of the Tribunal was untenable – Correctness:
       Held: The principle of compassionate appointment has been put
       in place to ameliorate suffering that is cast upon members of a
       family upon the sudden death of the earning member – An equally
       well-recognized principle is that compassionate appointment cannot
       be claimed as a matter of right – It is therefore clear that a person,
       claiming an appointment on such ground, has to demonstrate his
       relationship to the deceased person and eligibility for appointment –
       The same cannot be done without placing all relevant documents
       before the competent authority – The Tribunal as also the authority
       has recorded a categorical finding that the respondent-employees
       had not submitted any document to establish their claim and
       submitted forged and bogus documents – It was incumbent upon
       them to produce all documents, on the basis of which they could
       have said that their dismissal from service on the part of the
       appellant-employer was incorrect and unjust in law – However,
* Author
[2024] 8 S.C.R.                                                           9

             Union of India & Ors. Etc. v. Prohlad Guha Etc.


     the respondent-employees did not furnish any document – On
     the aspect of non-compliance of the principles of natural justice,
     this Court finds that the authority had issued show-cause notices
     to the respondent-employees, to which they responded – The
     respondent-employees have, at every stage, actively participated
     in the adjudication process of their alleged improper and illegal
     appointments – Thus, the impugned judgment is liable to be set
     aside – The respondent-employees were rightly dismissed from
     service by the appellant-employer – The order passed by the
     Tribunal dismissing the respondent-employees’ original applications
     is restored. [Paras 7, 8, 9, 13, 15]
     Words and Phrases – Fraud – Meaning of – Discussed.
     Service Law – Compassionate appointment – Fraud –
     Protection under Constitution:
     Held: Fraud vitiates all proceedings – Compassionate appointment
     is granted to those persons whose families are left deeply troubled
     or destitute by the primary breadwinner either having been
     incapacitated or having passed away – So when persons seeking
     appointment on such ground attempt to falsely establish their
     eligibility, as has been done in this case, such positions cannot
     be allowed to be retained – The respondent-employees in the
     present case, having obtained their position by fraud, would not be
     considered to be holding a post for the purpose of the protections
     under the Constitution. [Para 14]
                             Case Law Cited
     Biecco Lawrie Ltd. v. State of W.B. [2009] 11 SCR 972 : (2009) 10
     SCC 32; Central Coalfields Ltd. v. Parden Oraon (2021) 16 SCC
     384; SAIL v. Madhusudan Das [2008] 14 SCR 824 : (2008) 15
     SCC 560; Dalip Singh v. State of U.P. [2009] 16 SCR 111 : (2010)
     2 SCC 114; Shrisht Dhawan (Smt.) v. M/s. Shaw Brothers [1991]
     Supp. 3 SCR 446 : (1992) 1 SCC 534; Devendra Kumar v. State
     of Uttaranchal [2013] 8 SCR 471 : (2013) 9 SCC 363 – relied on.
     M. Paul Anthony v. Bharat Gold Mines Ltd. [1999] 2 SCR 257 :
     (1999) 3 SCC 679; State Bank of India & Ors. v. P. Zadenga [2023]
     12 SCR 740 : (2023) 10 SCC 675; Ram Preeti Yadav v. U.P. Board
     of High School of Intermediate Education [2003] Supp. 3 SCR
     352 : (2003) 8 SCC 311; R. Vishwanatha Pillai v. State of Kerala
     & Ors. [2004] 1 SCR 360 : (2004) 2 SCC 105 – referred to.
     Lazarus Estates Ltd. v. Beasley (1956) 1 QB 702; Derry v. Peek
     (1889) 14 AC 337 – referred to.
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                                    List of Acts
       Railway Servants (Discipline & Appeal) Rules, 1968; Constitution
       of India.
                                 List of Keywords
       Service Law; Compassionate appointment; Forged/fabricated
       and bogus documents; False claims; Termination from service;
       Protection under Constitution; Article 311 of Constitution; Fraud;
       Fraud vitiates all proceedings; Principles of natural justice;
       Production of documents.
                                Case Arising From
       CIVIL APPELLATE JURISDICTION: Civil Appeal Nos.4434-4437 of
       2014
       From the Judgment and Order dated 02.08.2012 of the High Court of
       Calcutta in WPCT No.207, 213, 214 and 215 of 2012
       With
       Civil Appeal No.4445 of 2014
                             Appearances for Parties
       R Balasubramaniam, Sr. Adv., Vikrant Yadav, Sushil Kumar Dubey,
       Sachin Sharma, Mrs. Sweksha, Jitender Kr. Tripathi, Advs. for the
       Appellants.
       Ranjan Mukherjee, Ms. Aayushi, Anindo Mukherjee, Rameshwar
       Prasad Goyal, Bankey Bihari Sharma, Rajinder Kumar, Advs. for
       the Respondents.
                      Judgment / Order of the Supreme Court

                                    Judgment
       Sanjay Karol, J.
       CIVIL APPEAL NOS. 4434-4437 OF 2014 :
1.     The extant appeals filed by the Union of India1 take exception to
       a common judgment and order dated 2nd August 2012 2 passed in
       WPCT Nos. 207, 213, 214, and 215 of 2012, by the High Court of


1     Appellant-Employer
2     Impugned Judgment
[2024] 8 S.C.R.                                                                             11

                 Union of India & Ors. Etc. v. Prohlad Guha Etc.


      Calcutta whereby the common order passed in Original Application
      Nos.794, 797, 795, and 796 of 2008, respectively, passed by the
      Central Administrative Tribunal, Calcutta Bench, was reversed and
      relief claimed by the respondents were allowed.
2.    A brief review of facts giving rise to the present appeals, is necessary.
      2.1 Respondent-employees were appointed on compassionate
          ground with the Engineering Department, Howrah Division,
          Eastern Railway. The disciplinary authority placed the
          respondents under suspension due to contemplation/pendency
          of departmental enquiry.3
      2.2 On issuing show cause notice,4 information was sought as
          to why their appointments on compassionate ground should
          not be terminated as it was based on forged and fabricated
          documents with respect to the employment of their respective
          fathers. After receiving their responses, the authority found that
          their appointments were based on forged/fabricated and bogus
          documents, however, terminated their services.
      2.3 On filing appeals against the order of termination, they were
          dismissed by the appellate authority, vide order5 reproduced
          as under -
              “…Sri Biswanath Biswas, however, could not able to
              produce an’ documents to establish his initial appointment
              on compassionate ground against death of his father while
              in service or any other relevant details regarding his father’s
              identity, proof of working in the Railways, Station and place
              of posting, relevant documents viz. Identity, Medical Card
              of his deceased father. There is also whisper about retiral
              benefits received by the family on account of pre-mature
              death of his deceased father.
              Therefore, the Disciplinary Authority has arrive at a
              conclusion that grounds exposed in the show cause notice
              have been proyed and accordingly decided to terminate
              him from Railway Service.


3    Suspension order dated 29th August 2005 in respect of Sri Biswanath Biswas
4    Show Cause notice dated 11th November, 2005 in respect of Sri Biswanath Biswas
5    Order of Appellate Authority dated 31st March 2008 in respect of Sri Biswanath Biswas
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                Sri Biswanath Biswas, cannot claim any protection under
                the Discipline & Appeals Rule since his initial appointment
                was itself by fraudulent means.”
        2.4 On filing original applications before the Central Administrative
            Tribunal against the termination order and the Appellate
            Authority’s order, the Tribunal dismissed the applications by a
            common order dated 21st September, 2010, observing thus:-
                “9. In the OA also the applicants have not stated about
                the service particulars of their fathers viz where their
                father working or whom they retired etc as referred to in
                the appellate order. It is the settled position of law that a
                person who has not come up with clean hands cannot get
                equity from a court of law. The only point the applicant have
                raised is that no protection under 311 of the Constitution
                was given and no enquiry was held. We are not inclined
                accept these contention because job obtained fraudulently
                is void ab initio and such a person cannot get protection
                under the constitution. Moreover FIR was also lodge
                against them and the matter is pending before appropriate
                Court of Law.”
3.      The respondent-employees preferred writ petitions wherein the
        High Court held that the order of the Tribunal was untenable. It was
        observed that the Railway Servants (Discipline & Appeal) Rules, 19686
        have been misinterpreted because as per circular of the Railway
        Board, Rule 14 thereof only provides for dismissal of government
        servants upon the charges levelled against them being proved when
        they are temporary employees. The Rule, however, does not indicate
        that when a person is in regular service the dismissal can take place
        sans any disciplinary inquiry. The appellant-employers were directed
        to reinstate the respondent-employees with the liberty to place them
        under suspension if they choose to hold a departmental inquiry in
        accordance with the Discipline Rules. Further, it was directed that
        during the period of such suspension, subsistence allowance would
        have to be paid.



6     Hereinafter ‘Discipline Rules’
[2024] 8 S.C.R.                                                            13

                Union of India & Ors. Etc. v. Prohlad Guha Etc.


4.    Having perused the record, the question that arises for our
      consideration is that whether the dismissal from service handed
      down to the respondent- employees is legally sustainable or not.
5.    The undisputed position is that ever since the suspension orders
      were issued qua the respondent-employees, they have not rendered
      any service to the appellant-employer. It is further not in dispute that
      the original order of termination was not stayed either by the High
      Court or this Court. The impugned judgment was stayed by this
      Court vide order dated 29th July 2013 which has been extended at
      regular intervals.
6.    Prior to delving into analysis, certain well-established principles may
      be recalled putting the controversy in question, in context -
      6.1 The principles of natural justice, the violation of which is alleged,
          have been noticed as essential, in Biecco Lawrie Ltd. v. State
          of W.B.7 in the following terms:-
             “24. It is fundamental to fair procedure that both sides
             should be heard—audi alteram partem i.e. hear the other
             side and it is often considered that it is broad enough to
             include the rule against bias since a fair hearing must be
             an unbiased hearing. One of the essential ingredients of
             fair hearing is that a person should be served with a proper
             notice i.e. a person has a right to notice. Notice should be
             clear and precise so as to give the other party adequate
             information of the case he has to meet and make an effective
             defence. Denial of notice and opportunity to respond result
             in making the administrative decision as vitiated.”
      6.2 The principle of compassionate appointment has been stated
          by this Court in Central Coalfields Ltd. v. Parden Oraon,8
          as follows-
             “8. The whole object of granting compassionate appointment
             is to enable the family to tide over the sudden crisis which
             arises due to the death of the sole breadwinner. The
             mere death of an employee in harness does not entitle
             his family to such source of livelihood. The authority


7    [2009] 11 SCR 972 : (2009) 10 SCC 32
8    (2021) 16 SCC 384
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              concerned has to examine the financial condition of the
              family of the deceased, and it is only if it is satisfied that
              but for the provision of employment, the family will not
              be able to meet the crisis that the job is offered to the
              eligible member of the family [Umesh Kumar Nagpal v.
              State of Haryana, (1994) 4 SCC 138 : 1994 SCC (L&S)
              930] . It was further asseverated in the said judgment
              that compassionate employment cannot be granted after
              a lapse of reasonable period as the consideration of such
              employment is not a vested right which can be exercised
              at any time in the future. It was further held that the object
              of compassionate appointment is to enable the family to
              get over the financial crisis that it faces at the time of the
              death of sole breadwinner, compassionate appointment
              cannot be claimed or offered after a significant lapse of
              time and after the crisis is over.”
       6.3 The relationship of ‘compassionate appointment’ with
           constitutional principles has been discussed in SAIL v.
           Madhusudan Das,9 wherein it was held that
              “15. This Court in a large number of decisions has held
              that the appointment on compassionate ground cannot be
              claimed as a matter of right. It must be provided for in the
              rules. The criteria laid down therefor viz. that the death of
              the sole bread earner of the family, must be established.
              It is meant to provide for a minimum relief. When such
              contentions are raised, the constitutional philosophy of
              equality behind making such a scheme be taken into
              consideration. Articles 14 and 16 of the Constitution
              of India mandate that all eligible candidates should be
              considered for appointment in the posts which have fallen
              vacant. Appointment on compassionate ground offered to
              a dependant of a deceased employee is an exception to
              the said rule. It is a concession, not a right. (See SBI v.
              Anju Jain [(2008) 8 SCC 475 : (2008) 2 SCC (L&S) 724]
              , SCC para 33.)”
                                                     (Emphasis supplied)


9     [2008] 14 SCR 824 : (2008) 15 SCC 560
[2024] 8 S.C.R.                                                              15

                 Union of India & Ors. Etc. v. Prohlad Guha Etc.


      6.4 The Tribunal observed that the respondent-employees had not
          approached the Court ‘with clean hands’. About this principle,
          a Bench of two learned Judges of this Court in Dalip Singh v.
          State of U.P.,10 has observed:
             “1. For many centuries Indian society cherished two
             basic values of life i.e. “satya” (truth) and “ahimsa” (non-
             violence). Mahavir, Gautam Buddha and Mahatma Gandhi
             guided the people to ingrain these values in their daily life.
             Truth constituted an integral part of the justice-delivery
             system which was in vogue in the pre-Independence
             era and the people used to feel proud to tell truth in the
             courts irrespective of the consequences. However, post-
             Independence period has seen drastic changes in our value
             system. The materialism has overshadowed the old ethos
             and the quest for personal gain has become so intense
             that those involved in litigation do not hesitate to take
             shelter of falsehood, misrepresentation and suppression
             of facts in the court proceedings.
                               x            x    x          x
             3. In Hari Narain v. Badri Das [AIR 1963 SC 1558] this
             Court adverted to the aforesaid rule and revoked the
             leave granted to the appellant by making the following
             observations: (AIR p. 1558)
             “It is of utmost importance that in making material
             statements and setting forth grounds in applications for
             special leave made under Article 136 of the Constitution,
             care must be taken not to make any statements which
             are inaccurate, untrue or misleading. In dealing with
             applications for special leave, the Court naturally takes
             statements of fact and grounds of fact contained in the
             petitions at their face value and it would be unfair to betray
             the confidence of the Court by making statements which
             are untrue and misleading…
                               x            x    x          x



10   [2009] 16 SCR 111 : (2010) 2 SCC 114
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           7. In Prestige Lights Ltd. v. SBI [(2007) 8 SCC 449] it
           was held that in exercising power under Article 226 of
           the Constitution of India the High Court is not just a court
           of law, but is also a court of equity and a person who
           invokes the High Court’s jurisdiction under Article 226 of
           the Constitution is duty-bound to place all the facts before
           the Court without any reservation. If there is suppression of
           material facts or twisted facts have been placed before the
           High Court then it will be fully justified in refusing to entertain
           a petition filed under Article 226 of the Constitution. This
           Court referred to the judgment of Scrutton, L.J. in R. v.
           Kensington Income Tax Commissioners [(1917) 1 KB 486
           (CA)] , and observed: (Prestige Lights Ltd. case [(2007)
           8 SCC 449] , SCC p. 462, para 35)
           In exercising jurisdiction under Article 226 of the
           Constitution, the High Court will always keep in mind the
           conduct of the party who is invoking such jurisdiction. If the
           applicant does not disclose full facts or suppresses relevant
           materials or is otherwise guilty of misleading the court,
           then the Court may dismiss the action without adjudicating
           the matter on merits. The rule has been evolved in larger
           public interest to deter unscrupulous litigants from abusing
           the process of court by deceiving it. The very basis of the
           writ jurisdiction rests in disclosure of true, complete and
           correct facts. If the material facts are not candidly stated
           or are suppressed or are distorted, the very functioning
           of the writ courts would become impossible.”
7.    The principle of compassionate appointment, as we have noticed
      above, has been put in place to ameliorate suffering that is cast
      upon members of a family upon the sudden death of the earning
      member. An equally well-recognized principle is that compassionate
      appointment cannot be claimed as a matter of right. It is therefore
      clear that a person, claiming an appointment on such ground, has to
      demonstrate his relationship to the deceased person and eligibility for
      appointment. The same cannot be done without placing all relevant
      documents before the competent authority. The Tribunal as also the
      authority has recorded a categorical finding that the respondent-
      employees had not submitted any document to establish their claim
      and submitted forged and bogus documents.
[2024] 8 S.C.R.                                                         17

             Union of India & Ors. Etc. v. Prohlad Guha Etc.


8.   On the aspect of non-compliance of the principles of natural justice,
     we find that the authority had issued show-cause notices to the
     respondent-employees, to which they responded. It was subsequent
     thereto, upon finding the responses to be unsatisfactory, they
     were removed from the service. On approaching the Tribunal and
     receiving favorable orders, their appeals against such dismissal
     were heard and acted upon by the authority, with the dismissal
     being confirmed. Before the High Court, it was averred that the
     respondent-employees were not given an opportunity to prove their
     innocence, nor were any documents, on the basis of which the
     impugned order of dismissal was passed, provided to them. All of
     this, it was submitted, flies against the protection envisaged under
     Article 311 of the Constitution of India.
9.   It is difficult to find substance in the averments made. The
     respondent-employees have, at every stage, actively participated
     in the adjudication process of their alleged improper and illegal
     appointments. The Tribunal records that they did not produce
     any document, as they were asked to, instead they questioned
     the procedure adopted. This in itself does not absolve them from
     producing documents as asked for. In the Original Applications
     filed by the respondent-employees also, the service particulars of
     their fathers in place of whom such employment was sought, have
     not been disclosed, as recorded by the Tribunal. So, whereas a
     respondent-employee may state that onus of proof on the part of
     the appellant-employer was not discharged properly in respect of the
     disciplinary proceedings initiated by the latter, as far as the O.As.
     were concerned, the respondent-employees were the ones pleading
     their case before a judicial or quasi-judicial authority. Therefore, it
     was incumbent upon them to produce all documents, on the basis
     of which they could have said that their dismissal from service on
     the part of the appellant-employer was incorrect and unjust in law.
10. It is apparent from record that the respondent-employees did not
    furnish any document as part of the O.As. When the claim made
    before the Tribunal itself is not clear, unequivocal and supported
    by relevant material, the same being rejected is not a matter of
    surprise. The very basis upon which the relief claimed rests is found
    to be circumspect then the relief, if awarded, suffers from the vice
    of being improper.
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11. Whether or not the Tribunal ought to have heard the matter together
    or separately is to be decided solely by the adjudicating authority.
    Comments by the High Court in this regard do not appear to be just.
    Before parting with the matter, however, in the facts of this case, we
    express our surprise towards the actions of the appellant-employer
    who appointed the respondent-employees on the basis of questionable
    documentation, which was later found to be forged, fabricated and
    bogus. How could someone be appointed to a government job without
    proper checking and verification of documents? The Railways are
    recorded to be one of the largest employers in the country and yet
    such incidents falling through the cracks, ought to be checked.
12. Upon it being discovered that the respondent-employees had secured
    appointments on the basis of forged and fabricated documents, an
    FIR bearing No.29/05 dated 17th December 2005 stood registered
    against them under Sections 467, 468, 471, 419, 420 and 120-B
    Indian Penal Code, 1860. There is no bar, as has been held in M.
    Paul Anthony v. Bharat Gold Mines Ltd.11 and as recently reiterated
    in State Bank of India & Ors. v. P. Zadenga12 for departmental
    and criminal proceedings to continue simultaneously. As such, the
    criminal proceedings initiated as a result of alleged fraud committed
    by the respondent-employees are independent of the proceedings
    initiated by the appellant-employer. It has been held that in certain
    cases it would be ideal if the criminal proceedings were stayed in
    the pendency of the departmental proceedings, however, no such
    prayer having been made, is on record.
13. The impugned judgment is liable to be set aside on a further
    ground, since the requisite to establish eligibility for compassionate
    appointment was not properly fulfilled, they were appointed on the
    basis of false claims and fabricated documents. It then becomes
    imperative to discuss what constitutes fraud and what is its impact
    on an act afflicted by such vice. R.M. Sahai, J. writing in Shrisht
    Dhawan (Smt.) v. M/s. Shaw Brothers13 observed -
              “20. Fraud and collusion vitiate even the most solemn
              proceedings in any civilised system of jurisprudence.


11    [1999] 2 SCR 257 : (1999) 3 SCC 679
12    [2023] 12 SCR 740 : (2023) 10 SCC 675
13    [1991] Supp. 3 SCR 446 : (1992) 1 SCC 534
[2024] 8 S.C.R.                                                           19

             Union of India & Ors. Etc. v. Prohlad Guha Etc.


           It is a concept descriptive of human conduct. Michael
           Levi likens a fraudster to Milton’s sorcerer, Comus, who
           exulted in his ability to, ‘wing me into the easy-hearted
           man and trap him into snares’. It has been defined as
           an act of trickery or deceit. In Webster’s Third New
           International Dictionary fraud in equity has been defined
           as an act or omission to act or concealment by which
           one person obtains an advantage against conscience
           over another or which equity or public policy forbids as
           being prejudicial to another. In Black’s Legal Dictionary,
           fraud is defined as an intentional perversion of truth for
           the purpose of inducing another in reliance upon it to part
           with some valuable thing belonging to him or surrender
           a legal right; a false representation of a matter of fact
           whether by words or by conduct, by false or misleading
           allegations, or by concealment of that which should
           have been disclosed, which deceives and is intended to
           deceive another so that he shall act upon it to his legal
           injury. In Concise Oxford Dictionary, it has been defined
           as criminal deception, use of false representation to gain
           unjust advantage; dishonest artifice or trick. According to
           Halsbury’s Laws of England, a representation is deemed
           to have been false, and therefore a misrepresentation,
           if it was at the material date false in substance and in
           fact. …From dictionary meaning or even otherwise fraud
           arises out of deliberate active role of representator about
           a fact which he knows to be untrue yet he succeeds in
           misleading the representee by making him believe it to
           be true. The representation to become fraudulent must
           be of a fact with knowledge that it was false.
           …..The colour of fraud in public law or administrative law,
           as it is developing, is assuming different shades. It arises
           from a deception committed by disclosure of incorrect facts
           knowingly and deliberately to invoke exercise of power
           and procure an order from an authority or tribunal. It must
           result in exercise of jurisdiction which otherwise would not
           have been exercised. That is misrepresentation must be in
           relation to the conditions provided in a section on existence
           or non-existence of which power can be exercised.”
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       13.1 The words of Denning L.J. in Lazarus Estates Ltd. v. Beasley14
            are of importance qua the impact of fraud. He wrote –
              “…..I cannot accede to this argument for a moment. No
              Court in this land will allow a person to keep an advantage
              he has obtained by fraud. No judgment of a Court, no
              order of a Minister, can be allowed to stand if it has been
              obtained by fraud. Fraud unravels everything. The Court
              is careful not to find fraud unless it is distinctly pleaded
              and proved; but once it is proved, it vitiates judgment,
              contract and all transactions whatsoever….”
       13.2 ‘Fraud’ is conduct expressed by letter or by word, inducing
            the other party to take a definite stand as a response to the
            conduct of the doer of such fraud. [See; Derry v. Peek;15 Ram
            Preeti Yadav v. U.P. Board of High School of Intermediate
            Education16]
       13.3 In R. Vishwanatha Pillai v. State of Kerala & Ors., 17 a
            Bench of three learned Judges observed that a person who
            held a post which he had obtained by fraud, could not be
            said to be holding a post within the meaning of Article 311 of
            the Constitution of India. In this case, a person who was not
            a member of Scheduled Castes, obtained a false certificate
            of belonging to such category and, as a result thereof, was
            appointed to a position in the Indian Police Service reserved
            for applicants from such category.
14. The above discussion reiterates that fraud vitiates all proceedings.
    Compassionate appointment is granted to those persons whose
    families are left deeply troubled or destitute by the primary
    breadwinner either having been incapacitated or having passed
    away. So when persons seeking appointment on such ground
    attempt to falsely establish their eligibility, as has been done in this
    case, such positions cannot be allowed to be retained. So far as
    the submission of non-compliance of the Rules is concerned, the
    judgment in Vishwanatha Pillai (supra) answers the question. The


14    (1956) 1 QB 702
15    (1889) 14 AC 337
16    [2003] Supp. 3 SCR 352 : (2003) 8 SCC 311
17    [2004] 1 SCR 360 : (2004) 2 SCC 105
[2024] 8 S.C.R.                                                             21

                Union of India & Ors. Etc. v. Prohlad Guha Etc.


      respondent-employees in the present case, having obtained their
      position by fraud, would not be considered to be holding a post
      for the purpose of the protections under the Constitution. We are
      supported in this conclusion by the observations made in Devendra
      Kumar v. State of Uttaranchal.18 In paragraph 25 thereof it was
      observed –
             “25. More so, if the initial action is not in consonance with
             law, the subsequent conduct of a party cannot sanctify
             the same. Sublato fundamento cadit opus — a foundation
             being removed, the superstructure falls. A person having
             done wrong cannot take advantage of his own wrong
             and plead bar of any law to frustrate the lawful trial by a
             competent court. In such a case the legal maxim nullus
             commodum capere potest de injuria sua propria applies.
             The persons violating the law cannot be permitted to urge
             that their offence cannot be subjected to inquiry, trial or
             investigation. (Vide Union of India v. Major General Madan
             Lal Yadav [(1996) 4 SCC 127 : 1996 SCC (Cri) 592 : AIR
             1996 SC 1340] and Lily Thomas v. Union of India [(2000)
             6 SCC 224 : 2000 SCC (Cri) 1056] .) Nor can a person
             claim any right arising out of his own wrongdoing (jus ex
             injuria non oritur).
                                                   (Emphasis supplied)
15. The impugned judgment passed by the High Court, in view of the
    above discussion, is set aside and the order passed by the Tribunal
    dismissing the respondent-employees’ Original Applications is
    restored. The respondent-employees were rightly dismissed from
    service by the appellant-employer. It is clarified that the observations
    made herein are only with respect to the dismissal from service, of
    the respondent-employees and shall have no bearing on the criminal
    proceedings pending in the concerned Court. The said case(s) is
    to be decided on its merits uninfluenced by the observations made
    hereinabove.
16. As such, the appeals are allowed. Pending application(s), if any,
    shall stand disposed of with costs made easy.


18   [2013] 8 SCR 471 : (2013) 9 SCC 363
22                                                          [2024] 8 S.C.R.

                         Digital Supreme Court Reports


      CIVIL APPEAL NO. 4445 OF 2014 :
17. In view of the foregoing discussion made in Civil Appeal Nos.4434-
    4437 of 2014, this appeal is also, on similar facts, allowed accordingly.
    Pending application(s), if any, shall stand disposed of.

      Result of the case: Appeals allowed.



      †
          Headnotes prepared by: Ankit Gyan


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