Supreme Court upholds government’s power to compulsorily retire employees in public interest

The Supreme Court has upheld the government’s wide powers to compulsorily retire employees in the public interest, observing that the measure can be used to improve administrative efficiency and remove employees whose continued service is considered detrimental to the public interest.

The court said assessing an employee’s utility, integrity, efficiency and overall service record is the responsibility of the competent authority. An employee cannot challenge compulsory retirement merely because another government servant with a comparable record was allowed to continue.

It also observed that the constitutional principle of equality does not entitle an employee to claim similar treatment based on an earlier error or omission by the authorities.

“If a wrong has been committed in an earlier case, it cannot be relied upon to perpetuate a similar wrong in subsequent cases,” the court said.

However, the bench clarified that the power is not absolute. Courts can intervene if a compulsory retirement decision is based on no evidence, involves non-application of mind, is manifestly arbitrary or perverse, or is influenced by mala fides.

The judgment came while dismissing appeals filed by two Chhattisgarh government employees challenging their compulsory retirement.

A screening committee had assessed 14 employees and recommended five for compulsory retirement. The remaining nine were found suitable to continue in service. The assessment considered honesty, integrity, physical fitness, reputation, efficiency and overall service records, including Annual Confidential Reports.

The Supreme Court found that the same criteria had been applied uniformly to all 14 employees, with no evidence of discrimination or selective treatment.

It noted that the two employees’ service records fell below the prescribed Grade ‘B’ benchmark. Their confidential reports from 2013 to 2017 showed consistently low gradings and concerns over their performance and efficiency.