Holding

The court may not interfere with the administrator's decision on the quantum of punishment unless it is illegal, procedurally improper, irrational or shocks the conscience; therefore the removal order stands.

Summary

V. Ramana, a conductor with the Andhra Pradesh State Road Transport Corporation, was removed from service for failing to issue tickets, collect fares and maintain records. He challenged the removal by filing a writ petition, which was upheld by the Andhra Pradesh High Court. On appeal, he argued that the quantum of punishment should be examined under Section 11‑A of the Industrial Disputes Act, 1947, contending that the lapses were minor. The Supreme Court held that interference with the quantum of punishment is not a routine matter and may be entertained only if the decision is illegal, procedurally improper, irrational or shocking to the conscience, applying the Wednesbury test. The Court found no such deficiency and affirmed the High Court’s order, dismissing the appeal.

Issues considered

The scope of judicial review over the quantum of punishment in disciplinary proceedings under Section 11‑A of the Industrial Disputes Act, 1947.
Whether the removal of the appellant was arbitrary, illegal, procedurally improper or irrational under Article 14 and the Wednesbury test.
Whether the court may substitute its own view on the appropriate punishment in a disciplinary case.

Legislation cited

Industrial Disputes Act, 1947s. 11-A

Subjects

judicial reviewWednesbury testIndustrial Disputes Actdisciplinary actionremoval from serviceproportionalityadministrative lawSection 11-A

Judgment

V. RAMANA A
v.
A.P.S.R.T.C. AND ORS.

SEPTEMBER 5, 2005
B
[ARIJIT PASAYAT AND H.K. SEMA, JJ.]

Andhra Pradesh State Road Transport Corporation Employees (Conduct)
Regulations, I 963-Appellant removed from service due to failure to perform
duties as a conductor-High Court upheld removal from service-On appeal
Held, scope of interference with quantum ofpunishment cannot be a routine c
n1atter-No interference with administrator's decision unless it was illogical
or suffers fron1 procedural impropriety or was shocking to the conscience of
the, court-Scope of judicial review is limited to the deficiency in decision-
making process and not the decision-Industrial Disputes Act, I 947-Section
11~. D
The appellant was.removed from service as he had failed to perform
his duties as a conductor, while collecting and depositing the corr<ct fare.
The said order was challenged by filing a writ petition in the High Court.
The matter was referred to a larger Bench, which upheld the removal of E
the petitioner. Hence this appeal.

Appellant contended that the High Court ought to have considered
the question of quantum of punishment by applying the principles of
Section 11-A oflndustrial Disputes Act, 1947; and that there were minor
lapses involving a small amount, which should have also been considered. F

Respondent contended that punishment of removal was proper as
the petitioner was responsible to collect and deposit the correct fare as
conductor; and that a person guilty of such breach of trust should he
imposed punishment or removal from service. G

Dismissing the appeal, the Court

HELD : 1. The scope of interference with quantum of punishment
is well settled and such interference cannot be a routine matter. (1152-F] H
1149
1150 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A Regional Manager, RSRTC v. Ghanshyam Sharma, [2002] 10 SCC 330,
followed.

Karnataka State Road Transport Corporation v. B.S. Hullikatti, [2002)
1SCR487; Regional Manager, U.P.S.R.T.C. Etewha & Ors. v. Hoti Lal and
B Anr., [2003) 3 sec 605; Om Kumar and Ors. v. Union ofIndia, [2001) 2 sec
386; Union ofIndia and Anr. v. G. Ganayutham, [1997) 7 SCC 463 and B.C.
Chaturvedi v. Union of India, [1995) 6 SCC 749, relied on.

Wednesbury case (1948) 1 KB 223; Council for Civil Srvices Union v.
C Minister of Civil Service, (1983) 1 AC 768, referred to.

2. There should be no interference with the administrator's decision
unless it was illogical or suffers from procedural impopriety or was
shocking to the conscience of the Court, in the sense that it was in defiance
of logic or moral standards. The Court would not go into the correctness
D of the choice made by the administrator open to him and it should not
substitute its decision to that of the administrator. The scope of judicial
review is limited to the deficiency in decision-making process and not the
decison. [1159-G, HJ

E Wednesbury case (1948) 1 KB 223, referred to.

3. Unless the punishment imposed by the Disciplinary Authority or
the Appellate Authority shocks the conscience of the Courtffribunal,
there is no scope for interference. To shorten litigation it may, in exceptional
and rare cases, impose appropriate punishment by recording cogent reasons
F in support thereof. In a normal course if the punishment imposed was
shockingly disproportionate it would be appropriate to direct the
Disciplinary Authority or the Appellate Authority to reconsider the penalty
imposed. (1160-A, BJ

G CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9904 of2003.

From the Judgment and Order datea 14.8.2001 of the Andhra Pradesh
High Court in W.P. No. 4968 of 2000.

H T.N. Rao and D. Mahesh Babu for the Appellant.
... ' V. RAMANA v. A.P.S.R.T.C. [PASAYAT, J.]

G. Ramakrishna Prasad, K.P. Kylashanatha Pillai and Mohd. Wasay
1151

A
Khan for the Respondents.

The Judgment of the Court was delivered by

ARIJIT PASAYAT, J. : Challenge in this appeal is to the legality of
B
the judgment rendered by a Full Bench of the Andhra Pradesh High Court
holding that the order of termination passed in the departmental proceedings
against the appellant was justified.

The factual background is essentially as follows:
c
The appellant was working as a Conductor in the organization of the

- Andhra Pradesh State Road Transport Corporation. Charges were made
against him which related to not issuing tickets at the boarding point itself
to the passengers who were in the bus, failure to collect fare and issue tickets
to persons who were alighting at a particular destination and not properly D
maintaining records of tickets and fare. Explanation of tho appellant was
considered and was found to be not satisfactory and disciplinary proceedings
were initiated. The Enquiry Officer found him guilty of the charges levelled
and after giving him opportunity of hearing as regards the quantum of
punishment, order of removal from service was passed.
E
Questioning correctness of the said order, writ petition was filed.
Learned Single Judge before whom the matter was placed held that there was
some divergence of view in the judgments of learned Single Judges and,
therefore, referred the matter to a larger Bench. The reference was as regards
the effect of acquittal in the criminal case and smallness of the amount p
involved. The High Court by the impugned judgment held that the acql!ittal
of the case was really of no consequence and small amount of discrepancy
was equally inconsequential.

In support of the appeal learned counsel for the appellant submitted that
the High Court should have considered the question of quantum of punishment G
by applying the principles of Section 11-A of Industrial Disputes Act, 1947
(in short the 'Act'). It was further submitted there were minor lapses and
smallness of the amount has not been considered in the proper perspective
and order of termination of service should not have been passed. Learned
counsel for the respondent-Corporation supported the order of the Tribunal H
1152 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.
.,. --
A and judgment of the High Court. In Karnataka State Road Transport
Corporation v. B.S. Hullikatti, JT (2001) 2 SC 72, it was held that misconduct
in such cases where the bus conductor either had not issued tickets to a large
number of passengers or had issued tickets of lower denomination, punishment
of removal is proper. It is the responsibility of the conductors to collect co.Teet
B fare charges from the passengers and deposit the same with the Corporation.
They act in fiduciary capacity and it would be a case of gross misconduct
if they do not collect any fare or the correct amount of fare. A conductor holds
a post of trust. A person guilty of breach of trus~ should be imposed
punishment of removal from service. The factual position shows that the
appellant's conduct in collecting fare at the designated place and not
c collecting fare from persons who had already travelled were in violation of
various Regulations contained in The Andhra Pradesh State Road Transport
Corporation Employees (Conduct) Regulations, 1963 (in short 'Regulations').
In the Karnataka State Road Transport case (supra) it was held that i! is
misplaced sympathy by Courts in awarding lesser punishments where on
D checking it is found that the Bus Conductors have either not issued tickets
to a large number of passengers, though they should· have, or have issued
tickets of a lower denomination knowing fully well the correct fare to be
charged. It was finally held that the order of dismissal should not have been
set aside. The view was reiterated by a three Judge Bench in Regional
Manager, RSRTC v. Ghanshyam Sharma, (2002) 1 LLJ 234, where .it was
E additionally observed that the proved acts amount either to a case of
dishonesty or of gross negligence, and Bus Conductors who by their actions
or inactions cause financial loss to the Corporations are not fit to be retained
in service.

F The principle was reiterated in Regional Manager, U.P.S.R. T. C. Etawha ;
and Ors. v. Hoti Lal and Anr., JT (2003) 2 SC 27.

The scope of interference with quantum of punishment has been the
subject-matter of various decisions of this Court. Such interference cannot be
a routine matter.
G
Lord Greene said in 1948 in the famous Wednesbury case (1948) 1 KB
223 that when a statute gave discretion to an administrator to take a decision, ..
the scope of judicial review would remain limited. He said that interference
was not pennissible unless one or the other of the following conditions was
H satisfied, namely the order was ~ontrary to law, or relevant factors were not
V. RAMANA v. A.P.S.R.T.C. [PASA YAT, J.] 1153

considered, or irrelevant factors were considered; or the decision was one A
which no reasonable person could have taken. These principles were
consistently followed in the UK and in India to judge the validity of
administrative action. It is equally well known that in l 983, Lord Diplock in
Council for Civil Services Union v. Minister of Civil Service, (1983) l AC
768 (called the CCSU case) summarized the principles of judicial review of B
administrative action as based upon one or other of the following viz.,
illegality, procedural irregularity and irrationality. He, however, opined that
"proportionality" was a "future possibility".

In Om Kumar and Ors. v. Union of India, [2001] 2 SCC 386, this Court
observed, inter alia, as follows:
c
"The principle originated in Prussia in the nineteenth century
and has since been adopted in Germany, France and other European
countries. The European Court of Justice at Luxembourg and the
European Court of Human Rights at Strasbourg have applied the D
principle while judging the validity of administrative action. But
even long before that, the Indian Supreme Court has applied the
principle of "proportionality" to legislative action since l 950, as
stated in detail below.
E
By "proportionality", we mean the question whether, while
regulating exercise of fundamental rights, the appropriate or Ieast-
restrictive choice of measures has been made by the legislature or
the administrator so as to achieve the object of the legislation or the
purpose of the administrative order, as the case may be. Under the
F
principle, the court will see that the legislature and the administrative
authority "maintain a proper balance between the adverse effects
which the legislation or the administrative order may have on the
rights, liberties or interests of persons keeping in mind the purpose
which they were intended to serve". The legislature and the
administrative authority are, however, given an area of discretion or G
a range of choices but as to whether the choice made infringes the
rights excessively or not is for the court. That is what is meant by
proportionality.

xxx xxx xxx xxx xxx H
1154 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A The development of the principle of "strict scrutiny" or
"proportionality" in administrative law in England is, however,
recent. Administrative action was traditionally being tested on
Wednesbury grounds. But in the last few years, administrative action
affecting the freedom of expression or liberty has been declared
invalid in several cases applying the principle of"strict scrutiny". In
B
the case of these freedoms, Wednesbury principles are no longer
applied. The courts in England could not expressly apply
proportionality in the ilbsence of the convention but tried to ·safeguard
the rights zealously by treating the said rights as basic to the common
law and the courts then applied the strict scrutiny test. In the
c Spycatcher case Attorney General v. Guardian Newspapers Ltd.,
(No.2) (1990) l AC 109 (at pp. 283-284), Lord Goff stated that there
was no inconsistency between the convention and the common law.
In Derbyshire County Council v. Times Newspapers Ltd., (1993) AC
534, Lord Keith treated freedom of expression as part of common
D law. Recently, in R. v. Secy. OfStatefor Home Deptt., exp. Simms,
[1999] 3 All ER 400 (HL), the right of a prisoner to grant an
interview to a journalist was upheld treating the right as part of the
c-0mmon law. Lord Hobhouse held that the policy of the administrator
was disproportionate. The need for a more intense and anxious
judicial scrutiny in administrative decisions which engage fundamental
E human rights was re-emphasised in R. v. Lord Saville exp, [1999]
4 All Ek ~60 (CA), at pp.870,872). In all these cases, the English
Courts applied the "strict scrutiny" test rather than describe the test
as one of "proportionality". But, in any event, in respect of these
rights "Wednesbury" rule has ceased to apply.
F
However, the principle of "strict scrutiny" or "proportionality"
~d primary review came to be explained in R. v. Secy. of State for
the Home Deptt. exp Brind, (1991) 1 AC 696. That case related to
directions given by the Home Secretary under the Broadcasting Act,
1981 requiring BBC and IBA to refrain from broadcasting certain
G matters through persons who represented organizations which were
prescribed under· legislation concerning the prevention of terrorism.
The extent of prohibition was linked with the direct statement 'made
by the members of the organizations. It did not however, for
example, preclude the broadcasting by such persons through the.
H medium of a film, provided there was a "voice-over" account,
, V. RAMANA v. A.P.S.R.T.C. [PASAYAT, J.] 1155

paraphrasing what they said. The applicant's claim was based A
directly on the European Convention of Human Rights. Lord Bridge
nNiced that the Convention rights were not still expressly engrafted
into English law but stated that freedom of expression was basic to
the Common law and that, even in the absence of the Convention,
English Courts could go into the question (see p. 748-49). B

" ..... whether the Secretary of State. in the exercise of his
discretion, could reasonably impose the restriction he has
' imposed on the broadcasting organisations"

and that the courts were C

"not perfectly entitled to start from the premise that any
restriction of the right to freedom of expression requires to be
justified and nothing less than an important public interest will
be sufficient to justify it". D
Lord Templeman also said in the above case that the courts could
go into the question whether a reasonable minister could reasonably
have concluded that the interference with this freedom was justifiable.
He said that "in terms of the Convention" any such interference must
be both necessary and proportionate (ibid pp. 750-51). E
In the famous passage, the seeds of the principle of primary and
secondary review by courts were planted in the administrative law
by Lord Bridge in the Brind case (1991) I AC 696. Where
Convention rights were in question the courts could exercise a right F
of primary review. However, the courts would exercise a right of
secondary review based only on Wednesbury principles in cases not
affecting the rights under the Convention. Adverting to cases where
fundamental freedoms were not invoked and where administrative
action was questioned, it was said that the courts were then confined
only to a secondary review while the primary deci$ion would be with G
the administrator. Lord Bridge explained the primary and secondary
review as follows:

"The primary judgment as to whether the particular
competing public interest justifying the particular restriction H
1156 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A imposed falls to be made by the Secretary of State to whom
Parliament has entrusted the discretion. But, we are entitled to
exercise a secondary judgment by asking whether a reasonable
Secretary of State, on the material before him, could reasonably
make the primary judgment."

B But where an administrative action is challenged as "arbitrary"
under Artide 14 on the basis ofRoyappa [1974] 4 SCC 3 (as in cases
where punishments in disciplinary cases are challenged), the question
will be whether the administrative order is "rational" or "reasonable"
and the test then is the Wednesbury test. The courts would then be
c confined only to a secondary role and will only have to see whether
the administrator has done well in his primary ro1e, whether he has
acted illegally or has omitted relevant factors from consideration or
has taken irrelevant factors into consideration or whether his view
is one which no reasonable person could have taken. If his action
does not satisfy these rules, it is to be treated as arbitrary. In G.B.
D
Mahajan v. Jalgaon Municipal Council, [1991] 3 SCC 91 at p. 111
Venkatachaliah, J. (as he then was) pointed out that "reasonableness"
of the administrator under Article 14 in the context of administrative
law has to be judged from the stand point of Wednesbury rules. In
Tata Cellular v. Union of1ndia, [ 1994] 6 SCC 651 at pp. 679-80),
E Indian Express Newspapers Bombay (P) Ltd v. Union of India,
[1985] 1 SCC 641 at p.6911), Supreme Court Employees' Welfare
Assn. v. Union of India, [a989] 4 SCC 187 at p. 241 and UP.
Financial Corpn. v. Gem Qap (India) (P) Ltd, [1993] 2 SCC 299
at p. 307 while judging whether the administrative action is "arbitrary"
F under Article 14 (i.e. otherwise then being discriminatory), this Court
has confined itself to a Wednesbury review always.

The principles explained in the last preceding paragraph in
respect of Article 14 are now to be applied here where the question
of "arbitrariness" of the order of punishment is questioned under
G Article 14.

xxx xxx xxx xxx xxx

Thus, from the above principles and decided cases, it must be
held that where an administrative decision relating to punishment in
H
, V. RAMANA v. A.P.S.R.T.C. (PASAYAT, J.] 1157

disciplinary cases is questioned as "arbitrary" under Article 14, the A
court is confined to Wednesbury principles as a secondary reviewing
authority. The court will not apply proportionality as a primary
reviewing court because no issue of fundamental freedoms nor of
discrimination under Article 14 applies in such a context. The court
while reviewing punishment and if it is satisfied that Wednesbury B
principles are violated, it has normally to remit the matter to the
administrator for a fresh decision as to the quantum of punishment.
• Only in rare cases where there has been long deiay in the time taken
by the disciplinary proceedings and in the time taken in the courts,
and such extreme or rare cases can the court substitute its own view
as to the quantum of punishment." c
In B.C. Chaturvedi v. Union of India and Ors., (1995] 6 SCC 749, it
was observed:

"A review of the above legal position would establish that the D
disciplinary authority, and on appeal the appellate authority, being
fact-finding authorities have exclusive power to consider the evidence
with a view to maintain discipline. They are invested with the
discretion to impose appropriate punishment keeping in view the
magnitude or gravity of the misconduct. The High Court/Tribunal,
while exercising the power of judicial review, cannot normally E
substitute its own conclusion on penalty and impose some other
penalty. If the punishment imposed by the disciplinary auth'>rity or
the appellate authority shocks the conscience of the High Court/
Tribunal, it would appropriately mould the relief, either directing the
disciplinary/appellate authority to reconsider the penalty imposed, or F
to shorten the litigation, it may itself, in exceptional and rare cases,
impose appropriate punishment with cogent reasons in support
thereof."

In Union of India and Anr. v. G. Ganayutham, (1997] 7 SCC 463, this
Court summed up the position relating to proportionality in paragraphs 31 and G
32, which read as follows:

"The current position of proportionality in administrative law
in England and India can be summarized as follows:
H
1158 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A (l) To judge the validity of any administrative order or
statutory discretion, normally the Wednesbury test is to be
applied to find out if the decision was illegal or suffered from
procedural improprieties or was one which no sensible decision-
maker could, on the material before him and within the
framework of the law, have arrived at. The court would
B
consider whether relevant matters had not been taken into
account or whether irrelevant matters had been taken into
account or whether the action was not bona fide. The court
would also consider whether the decision was absurd or
perverse. The court would not however go into the correctness
c of the choice made by the administrator amongst the various
alternatives open to him. Nor could the court substitute its
decision to that of the administrator. This is the Wednesbury
(l 948 l KB 223) test.

D (2) The court would not interfere with the administrator's
decision unless it was illegal or suffered from procedural
impropriety or was irrational in the sense that it was in
outrageous defiance of logic or moral standards. The possibility
of other tests, including proportionality being brought into
English administrative law in future is not ruled out. These are
E the CCSU (1985 AC 374) principles.

(3)(a) As per Bugdaycay (1987 AC 514), Brind (1991
(l) AC 696) and Smith (1996 (l) All ER 257) as long as the
Convention is not incorporated into English law, the English
F courts merely exercise a secondary judgment to find out if the
decision-maker could have, on the material before him, arrived
at the primary judgment in the manner he has done.

(3 )(b) If the Convention is incorporated in England
making available the principle of proportionality, then the
G English courts will render primary judgment on the validity of
the administrative action and find out if the restriction is
disproportionate or excessive or is not based upon a fair
balancing of the fundamental freedom and the need for the
restriction thereupon.
H
V. RAMANA v. A.P.S.R.T.C. [PASAYAT, J.] 1159
r
(4)(a) The position in our country, in administrative law, A
where no fundamental freedoms as aforesaid are involved, is
that the courts/tribunals will only play a secondary role while
the primary judgment as to reasonableness will remain with the
executive or administrative authority. The secondary judgment
of the court is to be based on Wednesbury and CCSU principles
B
as stated by Lord Greene and Lord Diplock respectively to find
if the executive or administrative authority has reasonably
arrived at his decision as the primary authority.

(4)(b) Whether in the case of administrative or executive
action affecting fundamental freedoms, the courts in our country c
will apply the principle of "proportionality" and assume a
primary role, is left open, to be decided in an appropriate case
where such action is alleged to offend fundamental freedoms.
It will be then necessary to decide whether the courts will have
a primary role only ifthe freedoms under Articles 19, 21 etc. D
arc involved and not for Article 14.

Finally, we come to the present case. It is not contended
before us that any fundamental freedom is affected. We need not
therefore go into the question of "proportionality". There is no
contention that the punishment imposed is illegal or vitiated by E
procedural impropriety. As to "irrationality", there is no finding by
the Tribunal that the decision is one which no sensible person who
weighed the pros and cons could have arrived at nor is there a
finding, based on material, that the punishment is in "outrageous"
defiance of logic. Neither Wednesbury nor CCSU tests are satisfied. F
We have still to explain "Ranjit Thakur [1987] 4 SCC 611".

The common thread running through in all these decisions is that the
Court should not interfere with the administrator's decision unless it was
illogical or suffers from procedural impropriety or was shocking to the
conscience of the Court, in the sense that it was in defiance of logic or moral G
standards. In view of what has been stated in the Wednesbury 's case (supra)
the Court would not go into the correctness of the choice made by the
administrator open to him and the Court should not substitute its decision to
that of the administrator. The scope of judicial review is limited to the
deficiency in decision-making process and not the decision. H
1160 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A To put differently unless the punishment imposed by the Disciplinary
Authority or the Appellate Authority shocks the conscience of the Court/
Tribunal, there is no scope for interference. Further to shorten litigations it
may, in exceptional and rare cases, impose appropriate punishment by
recording cogent reasons in support thereof. In a normal course if the
punishment imposed is shockingly disproportionate it would be appropriate
B
to direct the Disciplinary Authority or the Appellate Authority to reconsider
the penalty imposed.

In the above background the High Court's judgment does not suffer from
any infirmity. The appeal is dismissed without any order as to costs.
c
A.Q. Appeal dismissed.