Holding

The 2002 Act, insofar as its retrospective effect removes the basis of the Hooda and Sandeep Singh decisions, is a valid exercise of legislative power and does not usurp judicial power, but the proviso to Section 4(3) that revokes already granted appointments is unconstitutional.

Summary

The Supreme Court examined the constitutionality of the Haryana Civil Services (Executive Branch) and Allied Services and Other Services Common/Combined Examination Act, 2002, which retrospectively repealed earlier government circulars and limited appointments to the number of posts advertised. The petitioners, who had been appointed to executive posts based on the Supreme Court's earlier decisions in Hooda and Sandeep Singh cases, challenged the Act as an usurpation of judicial power and a violation of Articles 14 and 16. The Court held that a valid law, even if retrospective, may nullify the basis of a judicial decision provided it does not contravene constitutional provisions and does not directly overrule a judgment. The Act was therefore upheld as not ultra vires, except for the proviso to Section 4(3) which unjustly dispensed with services of already appointed candidates and was struck down as arbitrary and violative of Article 14. Consequently, the High Court orders appointing certain candidates were maintained, while other judgments were set aside, and the writ petitions and appeals were disposed of.

Issues considered

Whether the retrospective operation of the 2002 Act amounts to an usurpation of judicial power or is a valid legislative exercise removing the basis of earlier judgments.
Whether the Act violates the equality provisions of Articles 14 and 16 of the Constitution.
Whether the first proviso to Section 4(3) of the Act, which provides for dispensing the services of candidates already appointed, is constitutionally valid.

Subjects

retrospective legislationjudicial powerArticles 14 and 16civil services recruitmentstatutory rules vs executive instructionsvalidation actappointment controversymerit list

Judgment

A VIRENDER SINGH HOODA AND ORS.
v.
STATE OF HARYANA AND ANR.

OCTOBER 27, 2004

B [Y.K. SABHARWAL AND D.M. DHARMADHIKARI, JJ.]

Service Law:

Civil Services (Executive Branch) and Allied Services and Other Services,
C Common/combined Examination Act, 2002-Competitive Examination-
Appointment of candidates in excess to the posts advertised-Directed by
writs of the Court in view of Government Circulars-Retrospective legislation
repealing the Circulars-Constitutional validity of-Held: Retrospective
legislation can change the basis of judicial legislation unless it is violative
D of Chapter III and other Constitutional provisions-But it cannot by a bare
declaration directly overule, reverse or override a judicial decision-
Legislation of the Act does not amount to usurpation of judicial power by
the legislature-It amounts to only removal of basis of the decision by
repealing the Circulars-It is also not violative of Articles 14 and 16 of the
Constitution-Retrospectivity in the Act is not ultra vires except to the extent
E it takes away the appointments already made - First Proviso to Section 4(3)
is harsh, excessive, arbitrary and violative of Article 14 of the Constitution
to the extent it provides for dispensing the services of already appointed
candidates-Punjab Civil Services (Executive Branch) Rules, 1930-
Constitution of India, 1950-Articles 14 and 16.
F Statutory Rules vis-a-vis Executive instruction-Prevailing effect of-
Held: Where statutory Rules are in contradiction with the Executive
instructions, the Rules will prevail.

Posts were advertised in 1989 by Haryana Public Service Commission
G for recruitment to Haryana Civil Services (Executive Branch) and other allied
services through combined competitive Examination. The appointments to the
posts were made by the end of year 1992. The petitioners in Writ Petition
No.215 of 2002 secured 8th, 10th and 12th rank respectively in the merit
list, but could not be appointed to the posts in Executive Branch as only 7

H
General Category posts were advertised. The petitioners in Writ Peti'tion
720 -
VIRENDERSINGHHOODAv. STATEOFHARYANA 721

Nos. 216, 217, 218 and 224 of2002 were also not appointed to the posts in A
Executive Branch for the posts advertised in the year 1992. The petitioners
had approached the Court. This Court in Virendra S. Hooda v. State of
Haryana and Anr., (1999) 3 SCC 696 and in Sandeep Singh and Ors. v. State
of Haryana and Ors., (C.A. No. 7422 of (1999) judgment dated 9.11.2000
passed by Supreme Court), in the light of Government Circulars dated
22.3.1957 and 26.5.1972 held that all those vacancies which had occurred in B
Haryana Civil Service (Executive Branch) upto the period of six months from
the date of recommendations made by the Haryana Public Service Commission
were required to be filled, out of the same selection. The petitioners were
appointed to the posts in Executive Branch pursuant to the order. Appointment
of other petitioners to the Executive Branch was also directed relying on C
Hooda 's case.

In view of the interpretation in Hooda 's case and Sandeep Singh 's case,
the problem faced by the State was th:it during long gap between one
advertisement and the other, number of other persons attained eligibility who
would be deprived of opportunity to compete for the posts advertised D
subsequently besides there being absence of waiting list provision in the
statutory rules. In order to overcome the difficulties Haryana Civil Services
(Executive Branch) and Allied Services and Other Services, Common/
Combined Examination Act, 2002 was enacted w.e.f. 1989 repealing the

-- Circulars and clarifying the position for future.

The Act was challenged before this Court to the extent of its
E

retrospective application. The questions for determination were:

1. Whether the Act, to the extent of its retrospectivity, is ultra vires as
it amounts to usurpation of judicial power by the legislature or it, removes F
the basis of decisions in Hooda and Sandeep Singh 's case?

2. Whether the Act is violative of Articles 14 and·16 of the Constitution
oflndia?

The respondents in C.A. Nos. 3937-38 of2001 who were at serial Nos. G

- 9 and 10 in the 1989 merit list had been directed to be appointed in Executive
Branch by High Court in compliance of decision in Hooda 's case. State has
come in appeal to this Court challenging order of High Court.

I.A. No.4 of 2004 in W.P. No.215 of2002 was filed by the candidates
H
722 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A standing higher in merit than two of the petitioners in merit list of 1992.

Disposing of the Writ Petitions and the appeals, the Court

HELD: 1.1. A valid law, retrospective or prospective, enacted by
legislature cannot be declared ultra vires on the ground tltat it would nullify
B the benefit which otherwi~e would have been available as a result of
applicability and interpretation placed by a superior court A mandamus issued
can be nullified by the legislature so long as the law enacted by it does not
contravene constitutional provisions and usurp the judicial power and only
removes the basis of the issue of the mandamus. If the basis is nullified by
C enactment of a valid legislation which has the effect of depriving a person of
the benefit accrued under a writ, the denial of such benefit is incidental to
the power to enact a legislation with retrospective effect. Such an exercise of
power cannot be held to be usurpation of judicial power. [753-E-F; 757-E-F)

Madan Mohan Pathak and Anr. v. Union of India and Ors.: (1978) 2
D SCC 50; State of Gujarat and Anr. v. Raman Lal Keshav Lal Soni and Ors.,
[1983) 2 SCC 33 and Union of India and Ors. v. Tushar Ranjan Mohanty and
Ors., [1994) 5 SCC 450, distinguished.

Indian Aluminium Co. and Ors. v. State of Kera/a and Ors., [1996) 7
SCC 637; A. V. Nachane and Anr. v. Union of India and Anr., [1982) 1 SCC
E 205; S.R Bhagwat and Ors. v. State ofMysore [1995] 6 SCC 16 and National
Agricultural Cooperative Marketing Federation of India ltd. and Anr. v.
Union of India and Ors., [2003) 5 SCC 23, referred to.
-
1.2. The power to make laws includes power to give it retrospeetive effect.
Public interest at large is one of the relevant considerations in determining
F the constitutional validity ofa retrospective legislation. [742-Fl

The Assistant Commissioner of Urban land Tax and Ors. v. The
Buckingham and Carnatic Co. Ltd., etc. [ 1969) 2 SCC 55, referred to.

Stott v. Stott Realty Co., 284 N.W. 635, 640, 288 Mich. 35, referred to.
G
Craies on Statute law 7th Edn. pages 387 and 396; Judicial Dictionary
(13th Edition) K.J. Aiyar, Butterworth, pg.857, Words and Phrases; Permanent
Edition Vo/.37A page 224/225, 73rd volume of Harvard Law Review, page 692,
referred to.
-
H 1.3. The validity of a validating law depends upon whether the legislature
VIRENDER SINGH HOO DA v. STATE OF HARY ANA 723

possesses the competence which it claims over the subject-matter and whether A
in making the validation it removes the defect which the courts had found in
the existing law. [746-G)

1.4. The legislature cannot by a bare declaration, without anything more,
directly overrule, reverse or override a judicial decision, it may, at any time
in exercise of the plenary power conferred on it by the Constitution render a B
judicial decision ineffective by enacting a valid law on a topic within its
legislative field, fundamentally altering or changing with retrospective,
curative or neutralising effect the conditions on whi~h such decision is based.
(746-H; 747-A-B)

l.N. Saksena and Anr. v. State of Madhya Pradesh, [1976] 4 SCC 750, C
relied on.

1.5. There is a distinction between encroachment on the judicial power
and nullification of the effect of a judicial decision by changing the law
retrospectively. The former is outside the competence of the legislature but
the latter is within its permissible limits. [748-B]. · D
Mis. Tirath Ram Rajindra Nath, Lucknow v. State of UP. and Anr., [1973]
3 SCC 585 and J.N. Saksena and Anr. v. State of Madhya Pradesh, (1976] 4
sec 750, referred to.
1.6. The legislature can change the basis on which a decision is given E
by the Court and thus change the law in general, which will affect a class of
persons and events at large. It cannot, however, set aside an individual decision
inter partes and affect their rights and liabilities alone. Such an act on the
part of the legislature amounts to exercising the judicial power by the State
and to function as an appellate court or tribunal, which is against the concept F
of separation of powers. [748-D)

Cauvery Water Disputes Tribunal (1993) Supp.I SCC 96 II; S.S. Bola
and Ors., v. B.D. Sardana and Ors., (1997) 2 SCC 274; The Government of
Andhra Pradesh and Anr. v. Hindustan Machine Tools Ltd., (1975) 2 SCC
274 and State of Haryana and Ors. v. Karna! Co-op. Farmers' Society Limited G
and Ors., [1993)) 2 SCC 363, referred to.

1. 7. Where on interpretation of existing law the Court has given the
benefits, the same can be nullified by a legislature with retrospective effect,
so long as law enacted does not contravene Chapter-III of the Constitution of
India and other constitutional provisions. [749-FJ
H
724 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A 1.8. Vested rights can be taken away by legislature by way of
retrospective legislation. Taking away of such right would however, be
impermissible if violative of Articles 14, 16 and any other constitutional
provision. [750-A)

State of Tamil Nadu v. Aroorran Sugars Ltd., (1997] 1SCC326, relied
B on
1.9. The Circular dated 22.3.1957 is general in nature and does not
refer to any particular service or service rules. In law if an executive
instruction is contrary to Statutory Rules, the Rules will prevail and not the
executive instructions. Punjab Civil Service (Executive Branch) Rules, 1930
C do not contemplate any waiting list for the filling up of vacancies in excess of
the number determined by initiating the recruitment process. Further reading
of the circular shows that it is applicable to pre-existing vacancies. It does
not appear from material on record that for recruitment to these posts for
which combined competitive examination takes place, these circulars were
ever applied. The circulars, it seems, were relied upon for the first time in
D Hooda's case. [735-F-G)

1.10. Retrospectivity in Civil Services (Executive Branch) and Allied
Services and Other Services, Common/Combined Examination Act, 2002
cannot be held to be ultra vires except fo a limited extent. It is not a case of
usurpation of judicial power by the legislature. The legislature has removed
E the basis of the decision in Hooda and Sandeep Singh 's cases by repealing
the Circulars. The Act is also not violative of Articles 14 and 16 of the
Constitution of India. The candidates have right to posts that are advertised
and not the one which arise later for which a separate advertisement is issued.
1757-D-F)
F 1.11. The Act (proviso to Section 4(3)) to the extent it takes away the
appointments already made, would be unreasonable, harsh, arbitrary and
violative of Article 14 of the Constitution. The law does not permit the
legislature to take back what has been granted in implementation of the
court's decision. Such a course is impermissible. (757-G-H]
G
Lohia Machines Ltd and Anr. v. Union of India and Ors., [1985] 2 SCC
197 and Chairman, Railway Board and Ors. v. C.R. Rangadhamaiah and Ors.,
[1997] 6 sec 623, relied on.

2. It would be iniquitous to deny relief to the respondents in the appeals,
H when it has been granted to other candidates who are lower in merit position
VIRENDERSINGH HOODA v. STATE OF HARYANA [SABHARWAL,J.]725

than these two respondents. In this view, the direction of the High Court does A
not call for any interference. On the analogy, l.A.No.4 of2004 in Writ Petition
No.215 of2002 is allowed since the applicants are higher in merit than two
of the petitioners in the Writ Petitions and also satisfy condition placed in
Sandeep Singh 's case by this Court. (759-F-G)

Ashok Kumar Yadav and Ors. v. State of Haryana and Ors., (1985) 4 B
SCC 417; Hoshiar Singh v. State of Haryana and Ors., (19931 Suppl.4 SCC
377; State of Bihar and Ors. v. Secretariat Assistant Successful Examinees
Union, (1986) 1SCC126; Gujarat State Dy. Executive Engineers' Association
v. State ofGujarat and Ors., (19941Supp.2 SCC 591; State of Bihar and Anr.
v. Madan Mohan Singh and Ors., (1994] Supp. 3 SCC 308 and Mohan Lal C
and Ors. v. State ofJ and Kand Ors., (199513 SCC 486, referred to.

CIVIL ORIGINAL JURISDICTION : Writ Petition (C) No. 215 of2002.

(Under Article 32 of the Constitution of India.)

With W.P.(C) Nos. 216, 217, 218, 224, 383, 537, 588/2002, 307, 317, 319, D
320/2001, 127 and 114/2003, C.A.Nos. 3937-38/2001, 8385-8391, 8392 and 8393/
2002 and S.L.P.(C) No.s 22709/2004@CC. No. 1416 of2004.

V.A. Mohta, C.S. Vaidyanathan, Rajiv Dutta, M.L. Venna, K.N. Raval, Dr.
Rajeev Dhawan, R.F. Nariman, R.K. Jain, Mukul Rohtagi; P.P. Rao, R. E
Venkataranmani, P.N. Misra, Raj Kr. Gupta, A.N. Bardiyar, Bhanu Pratap Gupta,
Sheo Kumar Gupta, Ajay Siwach, S.K. Sabharwal, Jasbir Singh Malik, Satya
Mitra, Ms. Kamakshi S. Mehlawal, Mrs. Abha R. Shanna, S.P. Singh Chauhan,
Mahabir Singh, Rakesh Dahiya, Gagandeep Sharma, Monoj Goel, Shuvodeep
Roy, B.S. Chahar, Rakesh Chahar, Mrs. Jyoti Chahar, Vinay Garg, Rakesh
K.Khanna, Ms. Rashmi Khanna, Surya Kant, Neeraj K. Jain, Ms. Mahalakshmi F
Pavani, Ms. Kavita Wadia, Balbir Singh Gupta, S. W.A.Qadri, Ranbir Singh
Yadav, Attar Singh Gulia, K.B. Rohtagi, Ms. Aparna Rohtagi Jain, Mahesh
Kasana, Dr. Krishan Singh Chauhan, Chand Kiran, V.K. Bunnan, Subhash
Kaushik, Prem Malhotra, K.K. Mohan, Arvind Kumar Gupta, Mrs. Lalitha
Kaushik, J.P. Dhanda, (NP), Nidhesh Gupta, and Ms. S. Janani, with them for G
the appearing parties.

The Judgment of the Court was delivered by

Y.K. SABHARWAL, J. In these matters the validity of the Haryana Civil
Service (Executive Branch) and Allied Services and Other Services, Common/ H
726 SUPREME COURT REPORTS (2004] SUPP. 5 S.C.R.

A Combined Examination Act, 2002 (for short 'the Act') is under challenge to
the extent of its retrospective application. The Act was enforced on 27th
March, 2002. Section 1(2) of the Act provides that the Act is deemed to have
come into force with effect from 29th August, 1989. Section 1(3) provides that
the. Act shall apply to those persons who have been appointed or are offered
appointment to the services/posts, recruitment to which is made by holding
B common/combined examination. Section 3 repeals the executive instructions
contained in various circulars issued from time to time. We are concerned with
circulars dated 22nd March, 1957 and 26th May, 1972. Section 4(1) provides
that no appointment shall be made to any post or service to which the Act
applies beyond the number of posts advertised. Section 4(2) provides that
C notwithstanding anything to the contrary contained in any judgment, order,
decree or decision of the court of law, Act, rule, regulation or executive
instructions, no candidates, from the date of commencement of the Act, shall,
on the basis of his merit or placement in a common/combined examination,
have right to seek appointment to Haryana Civil Service (Executive Branch)
and Allied Services or other services beyond the number of advertised posts.
D Section 4(3) provides that State Government shall not be competent to offer
appointment to a candidate, who is placed in waiting list or, claims himself to
be in the waiting list on the basis of the common/combined examination, for
a post for which his name was not recommended by the Commission. Proviso
to sub-section (3) of Section 4 stipulates that ifa candidate has been appointed
E or offered appointment over and above advertised posts for any reason, the
service of such candidate shall be dispensed with. However, he shall be
entitled to be appointed to the service/posts, if any, for which his name was
originally recommended by the Commission. lt has further been provided that
no recovery of higher salary, emoluments or any other financial benefits
drawn by such candidate as a result of his appointment in excess of the
F advertised posts, shall be made from him but his pay shall be fixed in the scale
of the post to which he is found entitled for appointment under the Act.

The contention urged on behalf of the petitioners is that the Act
amounts to usurpation of judicial power ~y the State Legislature with a view·
to overrule the decisions of this Court in Virender S. Hooda and Ors. v. State
G ofHaryana and Anr., [1999] 3 SCC 696 and Sandeep Singh 's case (C.A.No.7422
of 1999 decided on 9th November, 2000). It has also been contended that the
impugned legislation is violative of Articles 14 and 16 of the Constitution of
India. Supporting the legislation and controverting that the Act is violative
of Articles 14 and 16, it has been urged on behalf of the State that the Act
H has removed the basis of the aforesaid decisions which is a legal and legitimate
VIRENDERSINGH HOO DA v. STATE OF HARY ANA [SABHAI~WAL, J.] 727

mode of exercise of legislative power and the effect on employees is only A
incidental, as a consequence of the enforcement of the Act and it would not
be correct to label the legislative power, a usurpation of judicial power.

Before we examine the contentions and questions of law that have been
raised, it is necessary to note the background which led to the passing of the
~ B
In the year 1989, Haryana Public Service Commission (hereinafter referred
to as 'the Commission') advertised for recruitment to the Haryana Civil
Services (Executive Branch) (for short 'Executive Branch) and other Allied
Services through combined competitive examination. The advertisement
included 12 posts in the Executive Branch (7 general and 5 reserved) and C
number of posts in Allied Services. A common written examination was held
in February, 1991, the result was declared in December 1991, interviews were
held between 31st March, 1992 and 9th June, 1992 and the final result was
declared on 19th June, 1992. The Commission on 22nd June, 1992 made
recommendations for making appointment against 12 posts in Haryana Civil D
Service and 48 posts in the Allied Services to the State Government. The
appointments to the 12 posts were made ia December, 1992 and to the 48
posts on various dates between December, 1992 and April, 1993. The three
petitioners in Writ Petition (Civil) No.215 of 2002, Virender Singh Hooda,
Amarjit Singh Mann and Dinesh Singh Yadav, having regard to their position
in the merit list being at serial Nos.8, I 0 and 12 respectively were not appointed E
to the posts in the Executive Branch as only 7 general category posts were
advertised. One of them was already holding the post of Excise and Taxation
Officer and other two were appointed to posts in the Allied Services, one as
Excise and Taxation Officer and other as Tehsildar.

On 24th November, 1992, another advertisement was issued by the F
Commission for filling up of 12 posts (9 general and 3 reserved) in Executive
Branch and 50 in Allied Services. The written examination for these posts was
held in October, 1993 but the result of the said examination was declared on
20th January, 1996. The interviews were held between 29th January, 1996 and
I Ith March, 1996. The final result was declared on 15th March, 1996 and on G
the same day recommendations were made by the Commission for the
appointments as per merit and options exercised by the candidates. The
appointments to the 12 posts in the Executive Branch were made on 25th
June, 1997 and to the posts in the Allied Services on different dates between
June and July, 1997. Sandeep Singh, Lalit Kumar, Virender Lather and Virender
H
728 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A Singh Dahiya were appointed to posts in Allied Services and not Executive
Branch in view of their merit.

On 24th May, 1996, another advertisement was issued by the Commission
for filling up I 0 posts in the Executive Branch and 33 in the Allied Services.
By a corrigendum to this advertisement, IO more posts in the Executive
B Branch were added. The written examination was held in December, 1997I
January, 1998, interviews were held between 16th March, 1999 and 7th April,
1999 and the final result was declared on 29th April, 1999. On 4th May, 1999,
the Commission made the recommendations for appointments and thereafter
on I st June, 1999 the State Government made 20 appointments to the Executive
C Branch and 33 appointments to the Allied Services were also made on different
dates from 23rd June, 1999 to 28th July, 1999.

Writ Petition (Civil) No.6057 of 1994 filed by Virender Singh Hooda who
could not be appointed to the Executive Branch in view of his merit position
as aforenoticed seeking such appointment against the posts of the Executive
D Branch advertised on 24th November, 1992, was dismissed by the High Court
of Punjab and Haryana on 12th May, 1994. In a Special Leave Petition filed
in this Court, Amarjit Singh Mann, Dinesh Singh Yadav being similarly placed
as Virender Singh Hooda, were impleaded as parties and the said petition was
disposed of on 30th October, 1995 by this Court granting liberty to the
aforesaid persons to file proper petition before the High Court. That petition
E was filed but it was also dismissed by the High Court. The decision of the
High Court was, however, set aside by this Court in terms of the judgment
dated 13th April, 1999 in Hooda 's case (supra) and the State Government was
directed to consider their cases for appointment to the posts in Executive
Branch.

F On 3rd December, 1999, in compliance with the judgment of this Court,
the aforesaid 3 persons were appointed to the posts in Executive Branch.

Relying upon the decision in Hooda 's case, the claim of Sujan Singh,
Pushpindar Singh and Pardeep Goodra (petitioners in Writ Petition No.216/02)
G being similarly placed as the petitioners in Hooda 's case, was accepted by the
High Court for being appointed against posts advertised in the year, 1992.
The Special Leave Petition filed by the State Government challenging the
judgment of High Court dated 13th January, 2001 was dismissed on 12th
October, 2001. Review Petition was also dismissed on 19th February, 2002. As
a result, these three were also appointed to the posts in Executive Branch on
H 4th March, 1992.
VIRENDERSINGHHOODA v. STATE OF HARYANA[SABHARWAL,J.]729

The case of the aforesaid six officers concerns the advertisement A
issued in the year 1989 and their claim for appointment to the posts in
Executive Branch is based on the advertisement in respect of posts advertised
in the year I 992 as aforesaid.

On publication of advertisement in the year 1996 as aforenoted, a writ
petition was filed in the High Court by Sandeep Singh, Lalit Kumar, Virender B
Lather and Virender Singh Dahiya (petitioners in Writ Petition Nos.217, 218
and 224/02) claiming right to be appointed to posts in Executive Branch
relying upon the decision of this Court in Hooda 's case. These four candidates
as already noticed pursuant to their position on merit list (1992 advertisement)
had been appointed to the posts in Allied Services and nol in the Executive C
Branch. The writ petition was dismissed by the High Court but the judgment
of the High Court was set aside by this Court on 9th November, 2000 in Civil
Appeal No. 7422 of I 999. In implementation of the judgment, these 4 candidates
were appointed to the posts in Executive Branch on 5th December, 2000.

On 29th January, 1999 another acfvertisement was issued by the D
Commission for filling up 14 posts in Executive Branch and 53 in the Allied
Services. The written examination was held in December, 2000 and January,
2001, interviews were held between 22nd October, 2001 and 19th November,
2001 and the final result was declared on 3rd May, 2002. The Commission
made recommendations on 6th June, 2002. The candidates who were selected
and recommended as a result of this advertisement have filed Writ Petition E
No.I 14/2003 supporting the Act and the stand of State of Haryana.

- 1999.
The impugned Act was passed on 27th March, 2002, i.e. before the
declaration of the final result in respect of posts advertised on 29th January,
'
F
The claim of the State Government is that various petitions and appeals
were pending before this Court and High Court involving the claims by
candidates to the posts in Executive Branch and Allied Services which had
arisen subsequent to the advertisement under which those candiciates had
applied. The ~tate was facing serious legal difficulties. According to the State G
Government, on the one hand, there was long line of decisions of this Court
starting with Hoshiar Singh v. State of Haryana and Ors., [1993] Supp. 4 SCC
377 holding that appointment on additional posts not covered by the
requisition sent to the Commission on the basis of the selection and
recommendations made at one time would deprive the candidates who are not
eligible for appointment to the posts advertised on the last date for submission H
730 SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A of applications mentioned in the advertisement and who became eligible for
appointment thereafter, of the opportunity of being considered for appointment
on the additional posts because if the said additional posts are advertised
subsequently those who become eligible for appointment, would be entitled
to apply for the same. The second line of decisions, according to the State
Government, are in Hooda and Sandeep Singh 's cases, which gave effect to
B aforesaid two circumstances and on that basis claims were made to the posts
in Executive Branch and other Allied Services which had arisen subsequent
to the adveI!isement under which those candidates had applied. In view of
these difficulties, the Act in question was passed removing the basis of these
decisions.
c In respect of the Hooda and Sandeep Singh 's cases giving effect to the
circulars dated 22nd March, 1957 and 26th May, 1972, the case of the State
Government also is that no argument seems to have been advanced before
this Court based on long line of decisions that the posts beyond the number
advertised could not be filled. The stand of the State further is that it appears
D that it was not pointed out to this Court that the posts advertised in 1992 were
already filled up in the year 1996 itself and, therefore, there were no vacancies
for giving effect to the directions of the Court in favour of candidates who
appeared in the examination conducted for the posts advertised in the year
1989. This has resulted in State Government making appointments in excess
E of sanctioned posts and of persons with lower in merit, thus, adversely
affecting public interest.

In respect of the circulars aforenoticed, the stand of the Government is
as follows :

"In fact, the circular dated 22.03.1957 refers to an earlier circular dated
F 12.07.1937 of the composite State of Punjab which is not available. A
reading of the circular dated 22.03.1957 gives the impression that it
was really intended to permit filling up of the pre-existing vacancies
which were not included in the requisition sent to the Commission.
They could be filled up within a time limit of six months from the date
G of recommendations made by the Public Service Commission of the
selected candidates. However, the circular dated 26.05.1972 has gone
beyond the original intendment as reflected in the circular dated
22.03.1957 and permitted appointments to be made to vacancies which
arise within a period of six months after the recommendations have
been made by the Service Commission. This circular did not visualize
H
VIRENDERSINGHHOODA v. STATEOFHARYANA[SABHARWAL,J.] 731

much less deal with the contingency of the selection process taking A
a very long time, i.e., more than one year and at times several years
due to litigation or other unforeseen reasons and the consequential
effect on the claims of candidates who become eligible in the meanwhile
and who have a right to be considered under Article 14 and 16(1) of
the Constitution for appointment against vacancies which arise in the B
years subsequent to the year of the advertisement in question. These
circulars were issued at a time when the law declared in Hoshiar
Singh {1993) and other cases was not known.

One more aspect which was not considered either in Virender Singh
Hooda, Sandeep Singh 's etc. cases is that the Haryana Civil Services C
(Executive Branch) Rules, 1930, contemplate annual competitive
examination for selection of candidates for Register 'B'. These statutory
rules confer a statutory right on candidates who become eligible in
the subsequent year to be considered for vacancies which arose
subsequent to the advertisement given in the previous year. This
statutory right could not be and was not intended to be taken away D
by the circulars dated 22.03.1957 and 26.05.1972. It is well settled that
administrative circulars cannot override the right to equality conferred
by Articles 14 and 16( I) of the Constitution or a statutory provision
like Rule 9 of the said Executive Branch Rules, 1930."

At this stage, we may reproduce the statement of objects and reasons E
of the Act which read as under:-"

STATEMENT OF OBJECTS AND REASONS

Hon'ble Supreme Court, in Virender Singh Hooda's case reported as
[ 1999] 3 sec 696 held that in the light of Government circular letter F
dated March 22, 1957 and May 26, 1972 all those vacancies which had
occurred in Haryana Civil Service (Executive Branch) upto the period
of six months from the date of recommendations made by the Haryana
Public Service Commission were required to be filled out of the same
selection. Thereafter, the Hon 'ble Supreme Court in its judgment dated G
9th November, 2000 in Civil Appeal No.7422of1999 'Sandeep Singh
and Ors. v. State of Haryana and Ors.,' relating to Haryana Civil
Service (Executive Branch) and Allied Services Examination, 1993, has
inta alia held that even on first principle, it appeals to us to commend .
that the vacancies available in any particular service till the date of
interview at least should be filled in from the very same examination H
732 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A unless there is any statutory embargo for the same.

There is another set of decisions by the Hon'ble Supreme Court
starting with Hoshiar Singh v. State of Haryana, [1993] Suppl.4 SCC
377, in which it has been held that appointments beyond the advertised
posts cannot be made as it deprives the candidates who were not
B eligible at the time of original advertisement but have acquired eligibility
subsequently, of the opportunity to compete for public employment
against such additional posts which did not form part of the original
advertisement. The Hon'ble Supreme Court found such appointments
to be violative of Articles 14 and 16 of the Constitution oflndia. This
view has been followed by the Apex Court in several subsequent
c decisions. However, in Virender Singh Hooda 's case or in Sandeep
Singh 's case no argument was advanced before the Apex Court based
on the judgment in Hoshiar Singh 's case and other similar cases.

The judgments in cases of Virender Singh Hooda, Sandeep Singh
and Sujan Singh etc. have thus created multiplicity of litigation
D
inasmuch as various candidates who were originally selected for one
of the allied services are claiming appointment to Haryana Civil Service
(Executive Branch) or some other allied service. Also the Haryana
Public Service Commission calls candidates for interview equivalent to
thrice the number of advertised vacancies. In case subsequent
E vacancies are clubbed with the advertised vacancies at a later stage,
it would.lead to more litigation even from those who were not called
for interview but otherwise would have been eligible for being called
for interview had the subsequent vacancies been clubbed initially.
Further, as a result of above-mentioned judgments of Hon 'ble Supreme
Court, two sets of candidates have got appointments against one
F post.

This has brought about total uncertainty at such a late stage in the
selection for Haryana Civil Service (Executive branch) and Allied
Service made by the Haryana Public Service Commission.
Considerations like efficiency and availability of equal opportunity to
G
candidates who become eligible for taking up subsequent examinations
have been kept in view. Since the entire problems has arisen as a
result of recruitments made pursuant to advertisement dated 30th
August, 1989, hence this Bill has been proposed w.e.f. 29th August,

H
1989." .
VIRENDER SINGH HOO DA v. STATE OF HARY ANA [SABHAR WAL, J.] 733

Sub-sections (2) and (3) of Section 1 and Sections 3 and 4 read as A
under:

"l. (2) It shall be deemed to have come into force with effect from the
29th August, 1989 and shall cover recommendations made by the
Commission after that date except section 5 of this Act which shall
come into force at once. B
(3) It shall apply to those persons who have been or are appointed
or offered appointment to the service/posts recruitment to which is
made by holding Common/Combined Examination.

3. The executive instructions contained in circulars No.814-GS-37/ C
3237-S, dated June, 1937, No. 459611178-GS-37/9276 dated 10th
September, 1937, No. 475 P.S. C.37, dated 12th July, 1937, No.1637-G-
II-56, dated 22nd March, 1957, No.2311-GSE-72/16727, dated 26th May,
1972, No. 66/32/88-7/GSI, dated 28th October, 1993 and No.66/80/97-
7GSI, dated 27th February, 1998 and the notification No.G.S.R./Const./
Art.309/2002, dated 28th March, 2001 are hereby repealed. D
4.(1) No appointment shall be made to any post or service to which
this Act applied beyond the number of posts advertised.

(2) Notwithstanding anything to the contrary contained in any
judgment, order, decree or decision of a Court of law, Act, rule, E
regulation or executive instructions, no candidates, from the date of
commencement of this Act, shall, on the basis of his merit or placement
in a Common/Combined Examin'ation, have right to seek appointment
to Haryana Civil Services (Executive Branch) and Allied Services or
other services beyond the number of advertised posts.
F
(3) The State Government shall not be competent to offer appointment
to a candidate, who is placed in the waiting list or who claims himself •
to be in the waiting list on the basis of Common/Combined Examination, .•
for a post for which his name was not recommended by the
Commission:
G
Provided that if a candidate has been appointed or offered appointment
over the above advertised posts for any reason, the services of such
candidate shall be dispensed with. However, he shall be entitled to be
appointed to the service/posts, if any, for which his name was
originally recommended by the Commission:
H
734 SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A Provided further that no recovery of higher salary, emoluments or any
other financial benefits drawn by such candidate as a result of his
appointment in excess of the advertised posts, shall be made from him
but his pay shall be fixed in the scale of the post to which he is found
entitled for appointment under this Act."

B The questions that fall for determination are:-

(1) Whether the Act, to the extent of its retrospectivity, is ultra vires
as it amounts to usurpation of judicial power by the legislature
or it removes the basis of decisions in Hooda and Sandeep
Singh 's cases (supra)?
c (2) ls the Act violative of Articles 14 and 16 of the Constitution of
India?

Undoubtedly, the legislature has no jurisdiction to set aside a decision
of a court of law. The decisions. in Hooda and Sandeep Singh 's cases have
D to be assumed to be correct and on that basis it is to be considered whether
the Act has removed the basis of those decisions or, in fact, in that disguise,
it has usurped the judicial power. The contention that the Hooda 's case was
not properly argued is of no relevance.

Likewise, there is also no doubt that the legislature has power to
E remove the basis of a decision rendered by a Court by enacting a valid piece
of legislation.

One of the facets of the first question is whether a writ of mandamus
can be made ineffective by an Act of legislature.

F The circular dated 22 March, 1957 considered in Hooda's case reads as
under:-"

Circular dated 22.03.1957

Copy ofU.O. Circular No.1673-G-ll-56 dated March 22, 1957-from Chief
G Secretary to Government, Punjab, to all Administrative Secretaries to
Government_, Punjab.

Subject: Procedure to be observed by Administrative Department of
the Punjab Government in their dealing with the Punjab Public Service
Commission.
H
VIRENDERSINGHHOODA v. STATE OF HARYANA [SABHARWAL, J.]735

*********** A
Will the Administrative Secretaries to Government Punjab, kindly refer
to the procedure noted above as subject, circulated with Punjab
Government letter No.814-GS-37/3237-3 dated June, 1937, and
subsequent correspondence contained in Punjab Government letter
No.4596/1178-GS-37/9276 dated the 10th September, 1937 and letter B
No.475 P.Sc.37, dated the 12th July, 1937 and from the Secretary,
Punjab and North West Frontier Province, Joint Public Service
Commission, reproduced on page 29 to 35 of the booklet entitled
"Regulation and Instructions Governing the work of the Provincial
Public Service Commission in the Punjab".
c
2. In paragraph 5 of the Public Service Commission letter No.475
P.S.C.37, dated the 12th July, 1937, at page 35, a time limit of6 months
has been prescribed. for filling up, out of the names recommended by
the Public Service Commission, additional vacancies which were not
intimated to the Public Service Commission when inviting D
recommendations. After the expiry of six months a fresh reference to
the Public Service Commission will be necessary to fill up an additional
vacancy not intimated to the Commission earlier. Government have
noticed that there is no uniformity regarding the observance of this
time limit. They desire that the procedure outlined above should be
rightly adhered to. The time limit of six months will not, however, E
apply to a case where a candidate had declined to accept the post
offered to him against a vacancy which was intimated to the Public
Service Commission. Such a vacancy can be filled up even after the
expiry of six months out of the approved list of candidates initially
received from the Commission."
F
The aforesaid circular is general in nature and does not refer to any
particular service ·or service rules. In law if an executive instruction is contrary
to Statutory Rules, the Rules will prevail and not the executive instructions.
Further reading of aforesaid circular shows that it is applicable to pre-existing
vacancies.
G
We may also reproduce the circular dated 26th May, 1972 as under :

"Circular dated 26. 05.1972

No. 23 I l-GSE-72/15727 dated the 26th May, 1972.
H
736 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A Subject: Appointment of candidates out of the waiting list prepared
by the Haryana Public Service Commission/Haryana Subordinate
Services Selection Board.

*************
I am directed to invite your attention to the composite Punjab
B
Govt. Circular letter No.1673-GII-66 dated 22nd March, 1957 (copy
enclosed) and to say that according to the instruction contained in
the circular referred to such vacancies as arise within six months of
the receipt of the recommendations of the Public Service Commission
have necessarily to be filled in out of the waiting list maintained by
c the Commission. In respect of the vacancies which arise after the
expiry of a period of six months it is necessary to send a requisition
to the Commission. It is, however, not clear as to how this time limit
of six months is to be counted. In this connection, it may be mentioned
that in the past commission used to recommend names which were
double the number of vacancies intimated in the Commission at the
D time of sending the requisition by the department but such a practice
does not exist now. The Government have re-examined the instructions
issued in the composite Punjab on the above subject with a view to
bring them up-to-date and it has been decided that they should be
revised as under:-
E
(a) At the time of making their recommendations to the concerned
department for the posts to be filled in through direct appointment in
Haryana Public Service Commission/Haryana Subordinate Services
Selection Board will also intimate to the department whether waiting
list for filling the additional vacancies occurring thereafter is available
F with them or not. If the number of additional qualified candidates be
less than five then two recommendations only to the extent of the
number of qualified candidates will be made by the Commission/
Board. ·

(b) If the Commission/board make recommendations regarding a post
G to the department and additional vacancies occur in that department
within a period of six months of the receipt of these recommendations
then the vacancies which occur later on can be filled in from amongst
the five additional candidates/recommended by the Commission/Board.
In case the number of vacancies which occur subsequently exceeds
five then it will be necessary to obtain more names from the waiting
H
VIRENDER SINGH HOOD Av. STATE OF HARY ANA [SABHARWAL, J.)73 7

list maintained by the Commission/Board. The date on which the A
department makes a reference to the Commission/Board will be relevant
in regard to the prescribed limit of six months from making
appointments after obtaining additional names from the waiting list
maintained by the Commission/Board within period of six months of
the receipt of the original recommendations of the Commission/Board B
but the information regarding additional names is received after the
expiry of a period of six months even then the regular appointments
can be made out of the additional names recommended by the
Commission/Board. If the Commission/Board have not made any
recommendations regarding filling up of any post by direct recruitment
during the past period or if had made any recommendations but these C
were made earlier than the period of last six months then it will not
be necessary for the department to ask for the additional names but
out of the waiting list prepared by the Commission/Board.

(c) In those cases where the Commission/Board have been asked to
send additional names out of the waiting list, but the Commission/ D
Board fails to make their recommendations regarding additional names
within a period of 15 days then the department will be competent, in
such situation; to make appointments against such vacancies on ad
hoc basis.

(d) Additional vacancies which have been referred to above will be E
those vacancies which have occurred within a period of six months
of the receipt of original recommendations of the Commission/Board
and these vacancies will not include such vacancies which have
actually not occurred within a period of six months but there is
possibility to their occurrence in future.
F
2. It may also be clarified in this connection that if a letter of
appointment is issued to a candidate on the basis of the
recommendations made by the Commission/Board against the vacancy
which was intimated by the department to the Commission/Board and
the candidate refuses to join the appointment, then in such cases the G
time limit of six months will not be applicable and in such a contingency,
vacancy can be filled up even after the expiry of six months from the
five additional names referred to above or from the waiting list prepared
by the Commission/Board.

3. I am to request that in future, act;on may be taken in accordance H
738 SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A with the above instructions."

What we have stated above in respect of 1957 circular is equally
applicable to 1972 circular as well. In addition, it seems that this circular has
not correctly read 19 57 circular but in view of decision in Hooda 's case, it is
neither necessary nor possible for us to go into this question.
B
Now, we may also notice relevant Punjab Civil ~ervice (Executive Branch)
Rules, 1930 (for short 'the Rules') as amended from time to time. We are
concerned with the Rules as applicable in Haryana. Rule 3 deals with strength
of Haryana Civil Service (Executive Branch) Cadre. The said rule reads as
under:
c
"Rule 3. Strength ofCadre--{J) The strength and composition of the
Haryana Civil Service (Executive Branch) Cadre shall be such as may
be determined by the Government from time to time.

(2) The Government shall, at the interval of every three years, re-
D examine the strength and composition of the Haryana Civil Service
(Executive Branch) Cadre and may make such alterations therein as it
deems fit:

Provided that nothing in this rule shall be deemed to affect the power
of the Government to alter the strength and composition of the Cadre
E at any time."

Rule 5 deals with the appointments from among accepted candidates.
The concept of accepted candidates is given in Rule 6 which sets out various
registers to be maintained. Rule 7 concerns selection of candidates for Register
A-I ar.d Rule 8 selection of candidates for Register A-II. Rule 9 deals with the
F yearly holding of competitive examination for selection of candidates for
Register B and Rule 12 for selection of candidates for Register C. Rule 17
deals with the appointment of registered candidates to service. Rules 5 and
6 read as under :

"Rule 5. Members to be appointed by the Governor of Haryana from
G among accepted candidates.-Members of the Service shall be
appointed by the Governor of Haryana from time to time as required
from among accepted candidates whose names have been duly entered
in accordance with these rules in one or other of the registers of
Accepted Candidates to be maintained under these rules:
H .,..
VIRENDER SINGH HOO DA v. STATE OF HARY ANA [SABHARWAL, .1.) 739

Provided that ifin the opinion of the State Government the exigencies A
of the Service so require, the State Government may make special
recruitment to the Service by such methods as it may by notification
specify, after consultatio:-i with the Public Service Commission.

Rule 6. Registers to be maintained.-The following Registers of
Accepted Candidates shall be maintained by the Chief Secretary, B
namely:-

(a) Register A-I of District Revenue Officers, Tahsildars and Naib-
Tahsildars accepted as candidates:

(b) Register A-II of members of Class III Services accepted as C
candidates;

(c) Register B of persons accepted as candidates on the result of
competitive examination; and

(d) Register C of Block Development and Panchayat Officers.
D
The present is a case of appointments as a result of competitive
examination. Th~refore, the relevant registerwould be register B. Rule 9 which
provides for competitive examination reads as under :

"Rule 9. Competitive examination to be held yearly for selection of
candidates for Register B-{I) A competitive examination hereinafter E
called 'the examination' the regulations of which are contained in
Appendix I to these rules, shall be held at any place in Haryana each
year in or about the month of January for the purpose of selection by
. competition of as many candidates for the Service as the Governor of
Haryana may determine. p
(2) Notice of the date fixed for the examination shall be published in
the Haryana Government Gazette."

Rule 11 which deals with selection of candidates for register B reads as
under:
G
"Rule 11. Selection of candidates for Register B.-Subject to the
provisions of rule 15, the Governor of Haryana may include in register
B in order of merit, the names of such number of candidates as it may
from time to time determine, from amongst those who have beea
declared as qualified in the examination by the Haryana Public Service H
740 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A'· Commission.

Provided that for purpose of ensuring adequate representation qualified
Scheduled Caste Candidates their names may be brought on Register
B, in order of merit inter se, irrespective of their position on the list
of qualified candidates as a whole with effect from the examination
B held in February, 1952."

Rule 17 which deals with appointment of ;·egistered candidates reads as
under:

"Rule 17. Appointment of registered candidates to service.-The
C Governor ofHaryana shall ordinarily make appointments to the Service
in pursuance of rule 5 from amongst candidates whose names are
entered in the various registers in rotation as follows:-

From Register B ... two candidates

From Register A-I ... one candidate
D
From Register B ... two candidates

From Register A-II . ... one candidate

From Register B ...three candidates

From Register A-II ... one candidate

From Register C ... one candidates

From Register B .. .three candidates

F From Register A-I ... one candidate
0

From Register B ... two candidates

From Register A-II ... one candidate

From Register B ... two candidates
G
From Register A-I ... one candidate

From Register B ...three candidates

From Register C ... one candidate

H and thereafter in the same rotation beginning again from Register B."
VIRENDER SINGH HOO DA v. STATE OF HARYANA [SABHARWAL, J.)741

Rules do not contemplate any waiting list for the filling up of vacancies A
in excess of the number determined by initiating the recruitment process.
Hooda's decision is based on aforesaid two circulars. We, as already stated,
are concerned with the question whether the basis of that decision has been
removed by the impugned legislation. We cannot go into the question of
correctness of the said decision.
B
The legislative power to make law with retrospective effect is well
recognised. It is also well settled that though the legislature has no power
to sit over Court's judgment or usurp judicial power, but, it has, subject to
the competence to make law, power to remove the basis which led to the
Court's decision. The legislature has power to enact laws with retrospective C
effect but has no power to change a judgment of court of law either
retrospectively or prospectively. The Constitution clearly defines the limits of
legislative power and judicial power. None can encroach upon the field covered
by the other. The laws made by the legislature have to conform to the
constitutional provisions. Submissions have also been made on behalf of the
petitioners that by enacting law with retrospective effect, the legislature has D
no power to take away vested rights. The contention urged is that the rights
created as a result of issue of writ of mandamus cannot be taken away by
enacting laws with retrospective effect. On the other hand, it was contended
on behalf of the respondent-State that the power of the legislature to enact
law with retrospective effect includes the power to take away vested rights E
including those which may be created by issue of writs.

Every sovereign legislature possesses the right to make retrospective
legislation. The power to make laws includes power to give it retrospective
effect. Craies on Statute Law (7th Edn.) at page 387 defines retrospective
statutes in the following words. "A statute is deemed to be retrospective F
which takes away or impairs any vested right acquired under existing laws,
or creates a new obligation, or imposes a new duty, or attaches a new
disability in respect to transactions or considerations already past". Judicial
Dictionary; (13th Edition) K.J. Aiyar, Butterworth, pg.857, states that the
word 'retrospective' when used with reference to an enactment may mean (i)
affecting an existing contract; or (ii) re-opening up of past, closed and G
completed transaction; or (iii) affecting accrued rights and remedies; or (iv)
affecting procedure. Words and Phrases; Permanent Edition; Vol.37A page
224/225, defines a 'retrospective' or retroactive law' as one which takes away
or impairs vested or accrued rights acquired under existing laws. A retroactive
law takes away or impairs vested rights acquired under existing laws, or H
742 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A creates a new obligation, imposes a new duty, or attaches a new disability,
in respect to transactions or considerations already past.

In 73rd volume of Harvard Law Review, page 692 it was observed that
"it is necessary that the legislature should be able to cure inertent defects in
statutes or their administration by making what has been aptly called 'small
B repairs'. Moreover, the individual who claims that a vested right has arisen
from the defect is seeking a windfall since had the legislature's or administrator's
action had the effect it was intended to and could have had, no such right
would have arisen. Thus, the interest in the retroactive curing of such a defect
in the administration of government outweighs the individual's interest in
C benefiting from the defect." The above passage was quoted with approval by
the Constitution Bench of this Court in the case of The Assistant Commissioner
of Urban Land Tax and Ors. v. The Buckingham and Carnatic Co. Ltd, etc.,
[ 1969] 2 SCC 55. In considering the question as to whether the legislative
power to amend a provision with retrospective operation has been reasonably
exercised or not, various factors .have to be considered. It was observed in
D the case of Stott v. Stott Realty Co., 284 N.W. 635, 640, 288 Mich. 35, (as noted
in Words and Phrases, Permanent Edition, Volume 37A, page 225) that "The
constitutional prohibition of the passage of 'retroactive laws' refers only to
retroactive laws that injuriously affect some substantial or vested right, and
does not refer to those remedies adopted by a legislative body for the
E purpose of providing a rule to secure for its citizens the enjoyment of some
natural right, equitable and just in itself, but which they were not able to
enforce on account of defects in the law or its omission to provide the relief
necessary to secure such right." Craies on Statute Law (7th Edn.) at page
396 observes that "If a statute is passed for the purpose of protecting the
public against some evil or abuse, it may be allowed to operate retrospectively,
F although by such operation it will deprive some person or persons of a vested
right." Thus public interest at large is one of the relevant considerations in
determining the constitutional validity of a retrospective legislation.

In respect of recruitment to posts in Haryana Civil Service (Executive
Branch) and other Allied Services, under the Rules, it was observed in Ashok
G Kumar Yadav and Ors. v. State of Haryana and Ors., [ 1985] 4 sec 417 that
where there is a composite test consisting of a written examination followed
by a viva voce test, the number of candidates to be called for interview in
order of the marks obtained in the written examination, should not exceed
twice or at the highest thrice the number of vacancies to be filled. The
H judgment does not make reference to any circular. It does rrot appear from
VIRENDERSINGHHOODA v. STATEOFHARYANA[SABHARWAL,J.]743

material on record that for recruitment to these posts for which combined A
competitive examination takes place, these circulars were ever applied. The
circulars, it seems, were relied upon for the first time in Hooda 's case.

Now, we may note the line of decisions on the aspect of filling up of
more vacancies than advertised with a view to properly appreciate the problem
which the State, as above noticed, was facing. B
In Hoshiar Singh 's case (supra), the Director General of Police on 23rd
October, 1987 had sent a requisition to the Selection Board duly constituted
under Article 309 of the Constitution and vested with the provision of selecting
and recommending candidates for selecting suitable candidates for appointment C
on six posts of Inspector of Police. The Selection Board issued an
advertisement dated 22nd January, 1988 inviting applications for the said
posts. The applicants who applied in response to the advertisement took
written test and on the basis of result thereof, candidates were called for
physical efficiency and measurement test and viva voce between 28th January,
1991 and 3 lst January, 1991. The Director General of Police, however, on 24th D
January, 1991 sent a revised requisition for eight posts of Inspector of Police.
By letter dated 29th March, 1991, the Board forwarded to Director General of
Police, the names of 19 candidates who were recommended in the order of
merit for appointment to the post of Inspector of Police. The appointment
letters were issued between 3rd April and 6th April, 1991 to 18 persons since
there was an order of the High Court for reserving one post for ex-serviceman. E
The selection, recommendation and appointments were challenged by various
candidates who were not selected by filing writ petitions under Article 216
in the High Court. One of the grounds urged was that number of posts that
could be filled could not exceed the number of posts that were advertised and
that the number of candidates called for interview could not exceed three F
times the number of posts that were advertised. Various either contentions
were also urged but the same are not relevant for our purposes. As regards
the number of posts for which selection could be made by the Selection
Board, the High Court noticed that the original requisition was for six posts
which was subsequently revised to eight posts and that the appointments
beyond eight posts were not legally sustainable. The High Court further G
observed that as only eight posts were liable to be filled in, while calling the
candidates for the viva voce, the Board was entitled to call only thrice the
number of vacancies in each category originally requisitioned. In this vi~w,
the High Court quashed the selection and appointments made with respect
to 19 posts and directed that the authorities would be entitled to make H
744 SUPREME COURT REPORTS (2004] SUPP. 5 S.C.R.

A selection for eight posts on the basis of the written examination already held
and for that purpose, all candidates who secured the qualified marks would
be entitled to be called for physical tests and the candidates who have passed
all the five items of the test would be eligible to be called for interview subject
to the qualification that the number of such candidates would not exceed
B thrice the number of posts in each category. Upholding the decision of the
High Court on the aforesaid two contentions that had been urged and accepted
by the High Court, it was held by this Court that since the requisition was
for eight posts, the Board was required to send its recommendations for eight
posts only and could not recommend names of 19 persons for appointment.
It was held by this Court that the appointments on the additional posts on
C the basis of such selection and recommendation would deprive candidates
who were not eligible for appointment to the post on the last date for
submission of applications mentioned in the advertisement and who became
eligible for appointment thereafter of the opportunity of being considered for
appointment on the additional posts because if the said additi<'nal posts are
advertised subsequently those who become eligible for appointment would
D be entitled to apply for the same. It was held that the High Court was right
in coming to the conclusion that the selection of 19 persons was not
sustainable.

In State of Bihar and Ors. v. Secretariat Assistant Successful Examinees
E Union 'J 986 and Ors., [1994] I SCC 126, the Selection Board issued an
advertisement in the year 1985 inviting applications for the posts of Assistants
falling vacant up to the year 1985-86. The number of vacancies as then
existing was announced on August 25, 1987, the examination held in November
1987 and the result was published only in July 1990. Immediately thereafter
out of successful candidates 309 candidates were given appointments and the
F rest, empanelled and made to wait for release of further vacancies. Since the
vacancies available up to December 31, 1988 were not disclosed or
· communicated to the Board, no further appointments could be made. The
empanelled candidates approached the High Court which directed the State
Government to appoint them in vacancies available on the date of publication
G of the result as well as the vacancies arising up to 1991. Setting aside the High
Court's decision on the appeal filed by the State Government, this Court held
that the direction of the High Court for appointment of the empanelled
candidates against the vacancies till 1991 was not proper and cannot be
sustained. It was further noticed that since no examination had been held
since 1987, persons who became eligible to compete for appointment were
H denied the opportunity to take the examination and directions of the High
VIRENDERSINGHHOODAv. STATEOFHARYANA[SABHARWAL,J.] 745

Court would prejudicially affect them for no fault of theirs. The callousness A
of the State in delaying the holding of examination, declaration of result was
also adversely commented upon since it resulted in great hardship to the
successful candidates. Having regard to the fact situation, the judgment of
the High Court was modified by setting aside that part of the judgment which
directed filling up of vacancies of 1989, 1990 and 199 l from out of the list of B
candidates who had appeared in the examination held in 1987. The stand of
the Government in the case in hand is that the impugned enactment was
brought in so as to make the appointments for which advertisements were
subseqtfo'ntly issued in consonance with Articles 14 and 16 and, therefore,
the question of the Act violating the rights of the petitioners under those
constitutional provisions does not arise. c
On the aforesaid line there are other decisions as well. {See Gujarat
State Dy. Executive Engineers' Association v. State of Gujarat and Ors.,
[1994] Supp. 2 SCC 591 and State of Bihar and Anr. v. Madan Mohan Singh
and Ors., [ 1994] Supp. 3 SCC 308}. If the same list has to be kept subsisting
for the purpose of filling up other vacancies also, that would naturally amount D
to deprivation of rights of other candidates who would have become eligible
subsequent to the advertisement and selection process. In Madan Lal and
Ors. v. State ofJ and Kand Ors., [I 995] 3 SCC 486, the contention that was
accepted by this Court was that since the advertisement was only for I I
vacancies, the merit list of 20 was bad and violative of the rules. It was E
observed that the moment those 11 posts are filled up within two years of
the publication of the list, the list will get exhausted and if for any reason
these 1I vacancies could not be filled up by the time one year from the date
of publication of the list is over, even then the list would get exhausted and
fresh recruitment will have to be made in the light of fresh requisition from
the State. F
In Hooda 's case, it was held that in terms of the circulars dated 22nd
March, 1957 and 26th May, 1972 when vacancies arise within six months from
the receipt o\the recommendations of the Commission, they have to be filled
up out of the waiting list maintained by the Commission. Further, it was held
that when these vacancies arise within a period of six months from the date G
of previous selection, these circulars are attracted and hence the view of the
High Court that vacancies arose after selection process commenced has no
relevance and is contrary to the declared policy of the Government in the
matter to fill up such posts from the waiting list. Sandeep Singh 's case
basically follows the decision in Hooda 's case. H
746 SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A The problem faced by the State, in the light of the above interpretation,
was that during long gap of years between one advertisement and the other
as ic: evident from the facts abovementioned, number of other persons attained
eligibility who would be deprived of opportunity to compete for the posts
advertised subsequently besides there being absence of waiting list provision
B in the statutory rules. The State Government says that to overcome these
difficulties, the legislature stepped in, repealed the circulars with effect from
the year 1989 and clarified the position for future. Clearly, in our view, the
large public interest demanded the grant of opportunity to all eligible
candidates.

C Reverting to present cases, there are three categories of employees-,-
(i) those who in implementation of decision in Hooda and Sandeep Singh 's
cases, before passing of the impugned Act, had already been appointed (ii)
those, though not so appointed, have judgments of High Court passed in
their favour relying upon Hooda and Sandeep Singh 's cases, and claim a right
to appointment but would be deprived of it if the validity of the Act is upheld
D and on that basis the judgments of the High Court upturned (iii) those, who
would be covered by law laid down in Hooda 's case on interpretation and
applicability of the aforenoted two circulars, in case the Act is quashed to
the extent of its retrospective applicability, and on that basis would be entitled
to be considered for appointments. If the repeal of the circulars by the Act
E is not valid they will get the antage of interpretation and applicability of those
circulars placed in Hooda 's case. As already noticed, some matters have been
filed by those who took competitive examinations conducted by the
Commission and on account of their position on merit list, have been appointed
to the advertised posts and, thus, are supporting the stand of the State
Government contending that the Act is a valid piece of legislation.
F
It is well settled that if the legislature has the power over the subject-
matter and competence to make a valid law, it can at any time make such a
valid law and make it retrospectively so as to bind even past transactions.
The validity ofa validating law, therefore, depends upon whether the/egislature
possesses the competence which it claims over the subject-matter and whether
G in making the validation it removes the defect which the courts had found in
the existing law.

It is equally well settled that the legislature cannot by a bare declaration,
without anything more, directly overrule, reverse or override a judicial decision,
H it may, at any time in exercise of the plenary power conferred on it by the
VIRENDERSINGHHOODA v. STATE OF HARYANA[SABHARWAL,J.] 747

Constitution render a judicial decision ineffective by enacting a valid law on A
a topic within its legislative field, fundamentally altering or changing with
retrospective, curative or neutralising effect the conditions on which such
decision is based {/.N. Saksena and Anr. v. State of Madhya Pradesh [1976]
4 SCC 750]}. In Saxena's case facts in brief were that the appellant attained
the age of 55 years on 22nd August, 1963. On 28th February, 1963, by a
memorandum, the State Government raised the age of compulsory retirement B
to 58 years. It, however, empowered the Government to retire an employee
after the age of 55 years. This provision, however, was not incorporated in
the statutory rules. On 11th September, 1963, the respondent passed an order
retiring the appellant. The order of retirement of the appellant was quashed
by this Court. The Government, however, amended the rules under which the C
retirement age was raised to 58 years and the Government was empowered to
retire the Government servant after completion of 55 years of age.· By a
deeming clause, the rules were made effective from March l, 1963, By Act of
1967, the State Legislature validated the retirement of certain Government
servants including the appellant, despite the judgment of this Court. Upholding
the validity of 1967 Act, this Court held that adjudication of the rights of the D
parties according to the law enacted by the legislature is a judicial function.
In the performance of this function, the Court interprets and gives effect to
the intent and mandate of the legislature as embodied in the statute. On the
other hand, it is for the legislature to Jay down the Jaws prescribing norms
of conduct which will govern parties and transactions and to require the court E
to give effect to that law. It was held that the rendering ineffective of judgments
of courts and ti·ibunals by changing their basis by legislative enactment is a
well-known pattern of all validating Acts. It would be useful to reproduce para
22 as under:

"While, in view of this distinction between legislative and judicial F
functions, the legislature cannot by a bare declaration, without more,
directly overrule, reverse or override a judicial decision, it may, at any
time in exercise of the plenary powers conferred on it by Articles 245
and 246 of the Constitution render a judicial decision ineffective by
enacting a valid law on a topic within its legislative field fundamentally
altering or changing with retrospective, curative or neutralising effect G
the conditions on which such decision is based. As pointed out by
Ray, CJ. in Indira Nehru Gandhi v. Raj Narain, [1975] Supp SCC I,
the rendering ineffective of judgments or orders of competent courts
and tribunals by changing their basis by legislative enactment is a
well known patte.11 of all validating Acts. Such validating legislation H
748 SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A which removes the causes for ineffectiveness or invalidity of actions
or proceedings is not an encroachment on judicial power."

There is a distinction between encroachment on the judicial power and
nullification of the effect of a judicial decision by changing the law
retrospectively. The former is outside the competence of the legislature but
B the latter is within its permissible limits [Mis. Tirath Ram Rajindra Nath,
Lucknow v. State of UP. and Anr. [1973) 3 SCC 585). The reason for this lies
in the concept of separation of powers adopted by our constitutional scheme.
The adjudication of the rights of the parties according to law is a judicial
function. The legislature has to lay down the law prescribing norms of conduct
C which will govern parties and transactions and to require the court to give

-
effect to that law [/.N. Saksena 's case (supra)].

The legislature can change the basis on which a decision is given by
the Court and thus change the law in general, which will affect a class of
persons and events at large. It cannot, however, set aside an individual
D decision inter partes and affect their rights and liabilities alone. Such an act
on the part of the legislature amounts to exercising the judicial power by the
State and to function as an appellate court or tribunal, which is against the
concept of separation of powers. {Re: Cauvery Water Disputes Tribunal,
[ 1993] Supp. 1 sec 96(11)]}.

E When a particular Rule or the Act is interpreted by a court of law in
a specified manner and the law-making authority forms the opinion that such
an interpretation would adversely affect the rights of the parties and would
be grossly inequitous and accordingly a new set of rules or laws is enacted,
it is very often challenged on the ground that the legislature has usurped the
F judicial power. In such a case the Court has a delicate function to examine
the new set of laws enacted by the legislature and to find out whether in fact
the legislature has exercised the legislative power by merely declaring an
earlier judicial decision to be invalid and ineffective or the legislature has
altered and changed the character of the legislation which ultimately may
render the judicial decision ineffective {S.S. Bola and Ors. v. B.D. Sardana
G and Ors., [ 1997] 8 sec 522]}.
In The Government of Andhra Pradesh and Anr. v. Hindustan Machine
..
Tools Ltd., [ 1975) 2 sec 274, the respondent had constructed its factory and
other buildings within the limits of Gram Panchayat 'K' without its permission.
Gram Panchayat passed a resolution to collect permission fee from the
H respondent on the capital value of the factory building at a specific rate. They.
VIREN DER SINGH HOOD Av. STATE OF HARY ANA [SABHAR WAL, J. )7 49

also imposed house tax and demanded payment for the period 1966 to 1969. A
A writ petition was filed challenging the power to levy house tax and other
fees. The High Court issued a mandamus prohibiting the Gram Panchayat
from collecting the amounts, the High Court held that as per the definition
of the 'house' under the Act, the factory and other buildings were not
'house'. Pending appeal in this Court, the legislature amended the definition B
of expression 'house' with retrospective effect so as to eliminate the impediment
on which the High Court rested its judgment. It also made validation of the
actions by Section 4 of the Validation Act with retrospective effect. This
Court rejecting the contention that the legislature has overruled or set aside
the judgment of the High Court, held that the legislature has amended the
definition of the expression 'house' by substituting a new section in place C
of the old one and has provided that the new definition shall have retrospective
effect, notwithstanding anything contained in any judgment, decree or order
of any court or other authority. It was held that the legislature has not set
aside the judgment of the high court but has removed the basis of the
decision rendered by the High Court so that the decision could not have been
given in the altered circumstances. D

In State of Haryana and Ors. v. Karna/ Co-op. Farmers' Society Limited
and Ors., [ 1993] 2 SCC 363, after noticing various decisions, this Court
concluded that a legislature while has the legislative power to render ineffective
earlier judicial decisions, by removing or altering or neutralizing the legal basis E
in the unamended law on which such decision were founded, even
retrospectively, it does not have the power to render ineffective the earlier
judicial decision by making a law which simply declares the earlier judicial
decisions as invalid or not binding for such power if exercised would not be
a legislative power but a judicial power which cannot be encroached upon by
a legislature under our Constitution. Whether retrospective or prospective the F
Jaw has to be consistent with the provisions of Part III of the Constitution.

It is not possible to accept the contention that vested rights cannot be
taken away by legislature by way of retrospective legislation. Taking away of

-
such right would, however, be impermissible if violative of Articles 14, 16 and
any other constitutional provision. In State of Tamil Nadu v. Aroorran Sugars G
ltd, [1997] l SCC 326], this Court held that whenever any amendment is
brought in force retrospectively or any provision of the Act is deleted
retro.;pectively, in this process rights of some are bound to be affected one
way or the other. In every case, it cannot be urged that the exercise by the
legislature while introducing a new provision or deleting an existing provision H
750 SUPREME COURT REPORTS (2004) SUPP. 5 S.C.R.

A with retrospective effect per se shall be violative of Article 14 of the
Constitution. If that stand is accepted, then the necessary corollary shall be
that legislature had no power to legislate retrospectively, because in that
event a vested right is affected.

In the instant case, none has questioned the competence of the Haryana
B Legislature to pass the impugned Act. The question is whether the impugned
legislation has encroached upon judicial power or has rendered the judicial
decision ineffective by removing the legal basis on which it was based with
retrospective effect. According to the respondent-State, the basis of the
decision was circulars of 1957 and 1972 and the said circulars having been
C repealed, the basis of the judgment has been altered. The contention is that
the judgment in Hooda 's case would not have been rendered if these circulars
were not there.

Having noticed the principles laid down by this Court in various
decisions, let us now examine the decisions relied upon by learned counsel
D for the petitioners. In support of the contention that the Act is an attempt
to overreach this court a~d is ultra vires, reliance has been placed on the
decision in Indian Aluminium Co. and Ors. v. State of Kera/a and Ors., (1996]
7 SCC 637]. After extensively considering the earlier decisions on the subject,
it was observed that in exercising legislative power, the legislature by mere
E declaration, without anything more, cannot directly overrule, revise or override
a judicial decision.

The contention strenuously urged on behalf of the petitioners is that
a· mandamus issued by a court cannot be nullified by enactment of law. Strong
reliance has been placed on behalf of the petitioners to a Constitution Bench
p decision of Seven Judges in the case of Madam Mohan Pathak and Anr. v.
Union of India and Ors., [ 1978] 2 SCC 50. The observations relied upon are
in para 9 to the effect that the judgment given by the Calcutta High Court,
which was relied upon by the petitioners is not a mere declaratory judgment
holding an impost or tax to be invalid so that a validation statute can remove
the defect pointed out by the judgment amending the law with retrospective
G effect and validate such impost or tax. It is a judgment giving effect to the
right of the petitioners to annual cash bonus under the settlement by issuing
a writ of mandamus directing the Life Insurance Corporation to pay the
amount of such bonus. If by reason of retrospective alteration of the factual

H
or legal situation, the judgment is rendered erroneous, the remedy lay by way
of appeal or review, but so long as the judgment stands, it cannot be -
VIRENDERSINGHHOODA v. STATEOFHARYANA[SABHARWAL,J.]751

disregarded or ignored and it must be obeyed by the Life Insurance A
Corporation. On the basis of these observations, it was sought to be contended
that in the case of mere declaratory judgment, the legislature can remove the
defects pointed out by the Court by amending the law with retrospective
effect but when the rights accrue under writ of mandamus, the said rights
cannot be taken away by retr?spective legislation. The observations in para B
9 relied upon have to be understood in the context of the facts of the case
and what was noticed in para 8 of the judgment.

The facts in brief were that under a settlement between LIC and its
employees, annual cash bonus was payable to Class-III and JV employees.
The settlement was effective for the period from l st April, 1973 to 31st March, C
1977. As per the tenns of settlement, bonus was paid for the first two years.
The Payment of Bonus (Amendment) Act, 1976 was brought into force
retrospectively from 25th September, 1975 declaring that employees of the
establishments which were not covered by Payment of Bonus Act (LIC was
covered by Payment of Bonus Act) would not be eligible for payment of
bonus but ex-gratia payment in lieu of bonus would be made. LIC was advised D
by the Ministry of Finance not to make further payment of bonus to their
employees. All India Insurance Employees Association filed writ petition in
Calcutta High Court for a writ of mandamus and prohibition directing the LIC
to act in accordance with the tenns of settlement. The writ petition was
allowed against the said judgment. LIC preferred a Letters Patent Appeal E
against said judgment. On the enactment of the Amending Act, the LPA was
withdrawn. Section 3 of 1976 Amending Act provided as follows:-

"Notwithstanding anything contained in the Industrial Disputes Act,
1974, the provisions of the settlement in as far as they relate to the
payment of an annual cash bonus to every Class III and Class IV F
employee of the Corporation at the rate of fifteen per cent, of his
annual salary, shall not have any force or effect and shall not be
deemed to have had any force or effect on and from the 1st day of
April, 1975."

This Court declaring the Act to be void noticed in para 8 of the report G
that judgment of the Calcutta High Court remained almost unnoticed and the
impugned Act was passed in ignorance of the judgment. The writ of mandamus
issued by the Calcutta High Court directing the Life Insurance Corporation
to pay the amount of bonus for the year 1st April, 1975 to 31st March, 1976
remained untouched by the impugned Act. So far as the right of Class III and
Class IV employees to annual cash bonus for the year 1st April, 1975 to 31st H
752 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A March, 1976 was concerned, it became crystallized in the judgment and
thereafter they became entitled to enforce the writ of mandamus granted by
the judgment and not any right to annual cash bonus under the settlement.
The Court held 'this right under the judgment was not sought to be taken
away by the impugned Act.' The judgment continued to subsist and the Life
B Insurance Corporation was bound to pay annual cash bonus in obedience of
the writ of mandamus. It was further noticed that the error CJmmitted by the
LIC was that it withdrew the LPA and allowed the judgment of the learned
single judge to become final. By the time LPA came up for hearing, the
impugned Act had already come into force and the Life Insurance Corporation
could, therefore, have successfully contended in the Letter Patent Appeal,
C that, since the settlement, in so far as it provided that payment of annual cash
bonus, was annihilated by the impugned Act with effect from lst April, 1975,
Class III and Class IV employees were not entitled to annual cash bonus for
the year lst April, 1975 to 3 lst March, 1976 and hence no writ of mandamus
could issue directing the Life Insurance Corporation to make payment of such
D bonus. It is noteworthy that the Court observed that 'if such contention had
been raised, there is little doubt, subject of course to any constitutional
challenge to the validity of the impugned Act, that the judgment of single
judge would have been upturned and the writ petition dismissed.' It was then
noticed that on account of some inexplicable reason, which is difficult to
appreciate, the Life Insurance Corporation did not press the LPA .and the
E result was that the judgment of the learned single judge granting writ of
mandamus became final and binding on the parties. This is the background
under which the observations were made by the Constitution Bench in para
9.

In fact, the aspect noticed above supports the contention put forth by
F the State that the Act could nullify the effect of the writ issued by the Court.
Unlike the facts of the present case, in Pathak 's case LPA was withdrawn by
LIC and, therefore, it could not be contended that the decision of single Judge
had become ineffective in view of the Act that had been enacted. In the
present case, the decisions of the High Court are under challenge in CA
G Nos.8385-8393/2002 and pending that the Act has been passed which in terms
notices the difficulties arising out of interpretation placed by the court on
circulars in Hooda 's case.

Strong reliance was placed on behalf of the petitioners to the case of
A. V. Nachane and Anr. v. Union of India and Anr., [ 1982] I SCC 205] in
H support of the contention that the Amendment Act could not nullify the writ
VIREN DER SINGH HOOD Av. STATE OF HARY ANA [SABHAR WAL, J.] 753

issued by this Court. It was observed that Rule 3 cannot make the writ issued A
by this Court nugatory in view of the decision of a majority in the case of
Madan Mohan Pathak, (supra). The observations made in para 12 on which
strong reliance has been placed have to be understood in the light of Section
48(28). The Court noticed that the said section only gave limited power of
retrospective rule making to the Central Government, i.e., "the power to add,
vary or repeal the regulations and 'other provisions' referred to in sub-section B
(2-A) with retrospective effect from a date not earlier than June 20, 1979".
After the noticing the limited scope of retrospective rule making power, the
Court held that "clearly a writ issued by this Court is not regulation nor can
it be described as 'other provisions' which expression possibly includes
circulars and administrative directions". The Court held that the rule making C
power did not permit varying or repealing the judgment of a court in that case.
Nachane 's case has not altered a well settled proposition lay down in various
Constitution Bench decisions referred to above that the vested rights can be
taken away by retrospective legislation by removing the basis of a judgment
so long as the amendment does not violate the fundamental rights. We are
unable to accept the broad proposition sought to be contended for the D
petitioners that the effect of the writs issued by the courts cannot be nullified
by legislature by enacting a law with retrospective effect. The question, in
fact, is not of nullifying the effect of writs which may be issued by the High
Court or this Court. The question is of removing the basis which resulted in
issue of such a writ. If the basis is nullified by enactment of a valid legislation E
which has the effect of depriving a person of the benefit accrued under a writ,
the denial of such benefit is incidental to the power to enact a legislation with
retrospective effect. Such an exercise of power cannot be held to be usurpation
of judicial power. In our view, repeal of the circulars was permissible. The
circulars were validly repealed by the impugned Act and it made the law
declared in Hooda 's case ineffective. F
The learned counsel for the petitioners has, however, placed strong
reliance on observations made in Para 15 of SR. Bhagwat and Ors. v. State
of Mysore, [ 1995] 6 SCC 16 to the effect that where on interpretation of
existing law, the High Court has given certain benefits to the petitioners by G
issue of writ of mandamus that cannot be nullified by enactment of law. Such
an enactment would be impermissible in legislative exercise. The facts in
Bhagwat 's case briefly are that the petitioners therein were Deputy Conservators
of Forests in the former State of Bombay and Hyderabad. Subsequent to
reorganisation of States, their services stood allotted to the new State of
Mysore under Section 115 of the States Reorganisation Act, 1956. Under the H
754 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A provisions of the said Act, the Central Government issued certain directions
for equation of posts and promotions on the basis of provisional inter-State
Seniority Lists subject to revision of such promotions in accordance with the
ranking in the Final Seniority Lists. When the claims of the petitioners and
counter-claims by others regarding equaticn of posts and seniority were
B finally settled, the petitioners, in view of their seniority in the final list, claimed
deemed dates of promotion with all consequential benefits as their junior had
by then been promoted to higher ranks on the basis of the provisional
seniority list. This claim, although, not accepted by the State, was ultimately
allowed by a Division Bench of the Mysore High Court. Thereafter, the State
of Mysore, enacted Kamataka State Services (Regulation of Promotion, Pay
C and Pension) Act, 1973, whereby the actual financial benefits directed to be
made available to the petitioners pursuant to the orders of the Division Bench
of the High Court, which had become final, were sought to be taken away.
The petitioners filed a petition under Article 32 of the Constitution seeking
declaration that the impugned provisions insofar as they tried to confiscate
D the financial benefits made available to them by the writs of mandamus issued
by the High Court are null and void as they amount to legislative overruling
of binding judicial decisions and seek to deprive them of their fundamental
rights guaranteed under the Constitution. The principal submission voiced
before this Court was that the consequential financial.benefits directed by the
High Court did not cover monetary benefits flowing from deemed promotions.
E The contention that the foundation of the High Court judgment was displaced
by the impugned Act was not pressed. It was conceded by the State that the .·
impugned Act did not ·displace the basis or foundation of the judgment.
Reiterating the well settled proposition that a binding judicial pronouncement I
between the parties cannot be made ineffective with the aid of any legislative l-
power by enacting a provision which in substance overrules such judgment
F and is not in the realm of a legislative enactment which displaces the basis
or foundation of the judgment and uniformly applies to a class of persons
concerned with the entire subject sought to be covered by such enactment
having retrospective effect, it was observed in Para 15, on which strong
reliance has been placed on behalf of the petitioner that 'this is a case where
G on interpretation of existing law, the High Court had given certain benefits to
the petitioners. That order of mandamus was sought to be nullified by the
enactment of the impugned provisions in a new statute. This in our view
would be clearly impermissible legislative exercise.' These observations cannot
be read to mean that where on interpretation of existing law certain benefit
is given that cannot be nullified by the legislature even by removing the basis
H or foundation which Jed to such an interpretation. As can be seen from the ....
VI RENDER SINGH HOOD Av. STATE OF HARY ANA [SABHARWAL, J.] 755

above, the contention that the impugned legislation had displaced the A
foundation of the High Court judgment was not pressed and in that light
these observations were made in Para 15 as aforesaid. The Court was not
departing from ~ell settled principles.

In State of Gujarat and Anr. v. Raman Lal Keshav Lal Soni and Ors.,
(19~3] 2 SCC 33 the Amending Act was held to be violative of Articles 14 and B
311. It was held by the Constitution Bench that the status of the employees
as Government servants could not be extinguished, so long as the posts were
not abolished and their services were not terminated in accordance with the
provisions of Article 311 of the Constitution. Nor was it pennissible to single
them out for differential treatment in violation of Article 14. The classification C
was held to be unreasonable and entirely irrelevant to the object sought to
be achieved. At the same time, it was held by the Constitution Bench that
the legislature is undoubtedly competent to legislate with retrospective effect
to take away or impair any vested right acquired under existing laws. What
was, however, required was that since the laws are made under written
Constitution, and have to confonn to the dos and don'ts of the Constitution, D
neither prospective nor retrospective laws can be made so as to contravene
fundamental rights. The law must satisfy the requirements of the Constitution
today taking into account the accrued or acquired rights of the parties today.
The Amending Act was not held ultra vires on the ground that it takes away
or impairs any vested right but was declared ultra vires on the ground of it E
being violative of Article 14 and 31 l.

There are various decisions which have settled the legal proposition
that where on interpretation of existing law the Court has given the benefits,
the same can be nullified by a legislature with retrospective effect, so long
as law enacted does not contravene Chapter-III of the Constitution of India F
and other constitutional provisions. We may, however, note two other decisions
on which reliance was placed by learned counsel for the petition'.!rs.

Reliance has also been placed to the observations made in para 14 of
the decision in the Union of India and Ors. v. Tushar Ranjan Mohanty and
Ors., [1994] 5 sec 450 to the effect that 'when a person is deprived of an G
accrued right vested in him under a statute or under the Constitution he
successfully challenges the same in the court of law, the legislature cannot
render the said right and the relief obtained nugatory by enacting retrospective
legislation.'

H
756 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A It is necessary to bear in mind the background under which the aforesaid
observations were made to properly and correctly understand the real intent
thereof. The observations- were made in the context of contention one and
two referred to in para 8 of the report. The first contention was that the
retrospective operation of the amended rule takes away the vested rights of
B the general category candidates senior to respondents 2 to 9 and it is settled
proposition of law that the vested rights cannot be abrogated by retrospective
legislation. The second contention was that the retrospective operation of the
amended rule is arbitrary and, as such, violative of Articles 14 and 16 of the
Constitution of India. Both these contentions were considered in para 9 of
the report. It was noticed that the rule in question gives a statutory right to
· C Grade-IV officers to be considered for promotion in the order of their seniority
and the said right is further strengthened by the proviso contained therein
which made it obligatory that when a junior officer in Grade-IV is eligible and
is considered for pr~motion all officers senior to him in that grade shall also
be considered for promotion. On facts, it was also noticed that the senior
D general category Class-IV officers had a vested right under the rules as also
under Article 16(1) of the Constitution to be considered for promotion when
persons junior to them were being considered and in fact promoted.
Respondents 2 to 9 were admittedly junior to Mohanty and as such they
could not be promoted without considering the case of Mohanty. Under these
circumstances, it was noticed that senior officers had a vested right to be
E considered for promotion when their juniors were promoted. The question
posed was whether such a right can be rendered nugatory by retrospective
legislation. UndP.r these circumstances, the observations were made that the
accrued vested rights of senior officers cannot be made nugatory by enacting
retrospective legislation. The retrospective amendment divesting the seniors
from right of consideration was held to be violative of Article 16 of the
F Constitution since every law, whether retrospective or prospective, if made in
contravention of the constitutional provisions would be void. The judgment
renders no assistance to the petitioners.

Reliance was also placed upon observations made in National
G Agricultural Cooperative Marketing Federation of India Ltd and Anr. v.
Union ofIndia and Ors., [2003] 5 SCC 23 to the effect that the power to amend
the law with retrospective effect is subject to several judicial recognised
limitations, one of Which being that the retrospectivity must be reasonable
and not excessive or harsh, otherwise it runs the risk of being struck down
as unconstitutional and another being that where the legislation is introduced
H
VIRENDER SINGH HOOD Av. STATE OF HARY ANA [SABHAR WAL, 1.] 7 51

to overcome a judicial decision, the power cannot be used to subvert the A
decision without removing the statutory basis thereof. There can be no
quarrel with these propositions. If we had come to the conclusion that the
retrospectivity is unreasonable, harsh or excessive or the basis of Hooda 's
case has not been removed, in the present case, too, the position would have
been different.
B
Before concluding, a useful reference can also be made to the decision
in the case of Prem Singh and Ors. v. Haryana State Electricity Board and
Ors., [1996] 4 SCC 319 holding that the selection process by way of requisition
and advertisement can be started for clear vacancies and also for anticipated
vacancies but not for future vacancies. If the requisition and advertisement C
are for a certain number of posts only the State cannot make more appointments
than the number of posts advertised, even though it might have prepared a
select list of more candidates. The State can deviate from the advertisement
and make appointments on posts falling vacant thereafter in exceptional
circumstances only or in an emergent situation and that too by taking a policy
decision in that behalf. D
The result of the aforesaid discussions is that retrospectivity in the Act
cannot be held to be ultra vires except to a limited extent which we will
presently indicate. It is not a case of usurpation of judicial power by the
legislature. The legislature has removed the basis of the decision in Hooda
and Sandeep Singh 's cases by repealing the circulars. The Act is also not E
violative of Articles 14 and 16 of the Constitution of India. The candidates
have right to posts that are advertised and not the one which arise later for
which a separate advertisement is issued. A valid law, retrospt!ctive or
prospective, enacted by legislature cannot be declared ultra vires on the
ground that it would nullify the benefit which otherwise would have been F
available as a result of applicability and interpretation placed by a superior
court. A mandamus issued can be nullified by the legislature so Jong as the
law enacted by it does not contravene constitutional provisions and usurp
the judicial power and only removes the basis of the issue of the mandamus.

Despite the aforesaid conclusion, the Act [proviso to Section 4(3)] to G
the extent it takes away the appointments already made, some of the petitioners
had been appointed much before enforcement of the Act (ten in number as
noticed hereinbefore) in implementation of this Court's decision, would be
unreasonable, harsh, arbitrary and violative of Article 14 of the Constitution.
The law does not permit the legislature to take back what has been granted H
758 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A in implementation of the court's decision. Such a course is impermissible
In Lohia Machines Ltd and Anr. v. Union of India and Ors., [(1985) 2
sec 197], on the aspect of reasonableness and arbitrariness of amending law,
it was observed that the power and competence of Parliament to amend any
statutory provision with retrospective effect cannot be doubted. Any
B retrospective amendment to be valid must, however, be reasonable and. not
arbitrary and must not be violative of any of the fundamental rights guaranteed
under the Constitution. In considering the question as to whether the
legislative power to amend a provision with retrospective operation has been
reasonably exercised or not, it becomes relevant to enquire as to. how the
C retrospective effect of the amendment operates.

In Chairman, Railway Board and Ors. v. C.R. Rangadhamaiah and
Ors., [1997] 6 SCC 623] the Constitution Bench while holding that the rule
which operates in future so as to govern future rights of those already in
service cannot be assailed on the ground of retro-activity as being violative
D of Articles 14 and 16 of the Constitution, observed that a rule which seeks
to reverse from an anterior date a benefit which has been granted or availed
of, e.g., promotion or pay scale, can be assailed as being violative of Articles
14 and 16 of the Constitution to the extent it operates retrospectively.
(emphasis supplied) In the said decision, the respondents-Railway Employees
E belonging to category of running staff had retired from service on 1st January,
1973 and their pensionary benefits were to be calculated on the basis of
'average emoluments'. The 'running allowance' upto maximum of 75% was
taken as part of 'average emoluments' for determination of pension and
gratuity of the employees. By letter dated 22nd March, 1976, the percentage
of 'running allowance' was reduced from 75% to 45% retrospectively w.e.f.
F 1st April, 1976. This was quashed by the Central Administrative Tribunal
which order became final since it was not further challenged. The Railway
Board, however, issued statutory notification dated 5th December, 1988 in
which the existing percentage of 'running allowance' which form part of
'average emoluments' was reduced to45% w.e.f. 1st Jaunary, 1973. The said
notification was quashed by the Central Administrative Tribunal to the extent
G it reduced the rate retrospectively on the ground that they were violative of
Article 14 of the Constitution. The decision of the Tribunal was upheld to the
extent it had the effect of reducing the amount of pensionary benefits of the
employees but, at the same time, it was held that rule which operates in future
· s.o as to govern future rights of those already in service cannot be assailed
H on the ground of retroactivity as being violative of Articles 14 and 16 of the
VIRENDERSINGH HOODA v. STATE OF HARYANA[SABHARWAL,J.]759

Constitution. The Constitution Bench also made reference to the case of A
Triloki Nath Khosa, [1974] l SCC 19. In Triloki Nath's case rules had been
framed altering the criteria of eligibility for promotion from the post of Assistant
Engineer to the post of Executive Engineer and the same was challenged on
the ground of retrospectivity by the Assistant Engineers who were in service
on the date of making these rules. Rejecting the said contentiC'n, it was held B
that the impugned rules do not recall a promotion already made or reduce
a pay-scale already granted. (emphasis supplied) It was also observed that
the rule cannot first be assumed to be retrospective and then be struck down
for the reason that it violates the guarantee of equal opportunity by extending
its arms over the past. If the rules governing conditions of service cannot
ever operate to the prejudice of those who are already in service, the age of C
superannuation should have remained immutable and schemes of compulsory
retirements in public interest ought to have foundered on the rock of
retroactivity. But such is not the implication of service rules nor is it their true
description to say that because they affect existing employees they are
retrospective.
D
Before concluding, we may note that the facts ofC.A.Nos.3937-38/2001
are somewhat different and peculiar. These appeals have been filed by. the
State Government challenging the impugned judgment of the High Court
granting relief to the two respondents who belong to 1989 batch. The
respondents in these two appeals-Ajay Malik and Arvind Malhon in 1989 E
merit list prepared by the Commission are at serial Nos.9 and 11 respectively.
Virender Singh Hooda, Amerjeet Singh Mann and Dinesh Singh Yadav who
were appointed to posts in Executive Branch as noticed herein.before were on
the merit list at serial Nos.8, IO and 12 respectively. These three were appointed
on 3rd December, 1989 in compliance of the decision in Hooda 's case dated
13th April, 1989. We have held that the appointment given to these three F
cannot be taken back. It would be iniquitous to deny relief to Ajay Malik and
Arvind Malhon when it has been granted to other candidates who are lower
in merit position than the these two respondents. In this view despite the
conclusion as aforesaid on the question of law, the direction contained in the
impugned judgment of the High Court doe~ not call for any interference qua G
the respondents in these appeals.

On the aforesaid analogy, l.A.No.4 of2004 in Writ Petition No.215 of
2002 filed by Jagdish Sharma and Mahavir Singh is allowed since the applicants
are higher in merit than Lalit Kumar and Virender Lather aforel'loted and also
satisfy condition placed in Sandeep Singh 's case by this Court. They are thus H
760 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A entitled to be given similar treatment as Ajay Malik and Arvind Malhan ia
view of peculiar facts of their case. In this view, the direction of the High
Court in judgment dated 3rd July, 2004 in CWP No.7281 of2000 also does not
call for any interference.

Before parting with the case, it deserves to be noticed that to a large
B extent the State Government itself was responsible for the difficulties because
of long gap of number of years between advertisement and appointments to
the posts. Rule 9 postulates that the competitive examination shall be held
each year but the same are held after 3/4 years. If timely steps are taken by
sending the requisitions, in issue of the advertisement holding of examination,
C completion of selection processes and in making appointments, the difficulties
in all likelihood, would not arise. On the other hand, as in these cases, ifthere
are long gap of years in taking any of aforesaid steps, the difficulties are likely
to arise. In the present case 3 to 4 years were taken in making appointments
in respect of posts advertised on all the four occasions i.e. in the year 1989,
1992, 1996 and 1999. We hope that such a situation would not arise in future.
D When Rule requires examination to be held in the month of January; it is
implicit that the entire process up to the appointment shall be completed as
soon as possible thereafter and not later than the end of the year so that
when the examination is held in the month of January of the ne'<t year, the
entire selyction process of the previous advertisement is over. Another aspect
E required to be noticed is about special recruitment under proviso to Rule 5
in the exigencies of the service. In such mode of appointments, the compromise
with, in so far as merits of the candidates is concerned, cannot be ruled out.
Mr.Rao appearing for State of Haryana has informed us that in the recent
years resort to special recruitment was made only in the year 1997. That was
challenged and quashed by the judgment of Punjab and Haryana High Court
F which has attained finality. Ordinariiy if the steps under the Rules are taken
in time as above indicated there would hardly be an occasion to resort to
special recruitment avoiding unnecessary litigation of aforesaid nature which
led to the setting aside of the special recruitment of 1997. This is yet another
aspect which is required to be borne in mind by the State Government. Be
G that as it may, in view of aforesaid discussion our conclusions are as under:

(!) The impugned Act, to the extent of its retrospectivity, except to
the limited extent indicated above, does not amount to usurpation
of judicial powers by the Legislature. It is not ultra vires. It has
removed the basis of decisions in Hooda and Sandeep Singh 's
cases.
H
VIRENDERSINGHHOODA v. STATEOFHARYANA[SABHARWAL,J.]761

(2) The Act is not violative of Articles 14 and 16 of the Constitution A
of India except to a limited extent noticed below.

(3) The first proviso to Section 4(3), to the limited extent it provides
for dispensing the services of candidates already appointed, is
harsh, excessive, arbitrary and violative of Article 14 of the
Constitution. B
The benefits already granted to the petitioners in Writ Petition Nos. 215
to 218 and 224 of 2002 could not be taken back. To this extent, retrospectivity
is ultru vires. In all other respects, it is valid.

(4) The directions of the High Court in favour of respondents Ajay C
Malik and Arvind Malhan subject matter of Civil Appeal Nos.3937-
38 of2001 are maintained. For the same reason, Jagdish Sharma
and Mahavir Singh being higher in merit than Lalit Kumar and
Virender Lather would also be entitled to similar treatment.
(5) The judgments of the High Cou;t in Civil Appeal Nos.8385 to D
8393 of 2000, in view of the provisions of the Act, are set aside.

Delay condoned. The special Iea;e petition is disposed in the aforesaid
terms.

Interlocutory Application No.4 of 2004 is allowed in above terms.
E
All the writ petitions and Civil Appeals are also disposed of in the
aforesaid terms leaving the parties to bear their own costs.

K.K.T. Writ Petitions and appeals disposed of.