Employment Law - Recruitment Process – Systemic Manipulation – Mass Fraud – Cancellation of Entire Selection Process Upheld - WBSSC’s 2016 recruitment process for Assistant Teachers and Non-Teaching Staff was vitiated by large-scale fraud including unauthorized engagement of private agencies, tampering of OMR sheets, rank-jumping, out-of-panel appointments, appointments after expiry of panels and destruction of OMR records – Court held that such widespread irregularities fatally undermined the integrity of the entire process – Cancellation upheld [Paras 20-42].

Natural Justice – En Masse Cancellation – Individual Hearing Not Mandatory - Principles of natural justice are flexible – When the recruitment process itself is shown to be wholly vitiated and segregating tainted from untainted candidates is impossible due to destruction of records, individual hearing is not obligatory – Service of notice and opportunity to inspect data already provided during proceedings – En masse cancellation valid [Paras 7-19, 43-44].

Segregation of Candidates – Impossible Due to Missing Records – Total Cancellation Justified -

Destruction of OMR sheets, non-maintenance of mirror copies and admitted inability of WBSSC to segregate affected candidates from genuine ones rendered the entire selection process incurably tainted – Court rejected WBSSC’s argument for partial saving of appointments [Paras 27-33].

CBI and Justice R.K. Bag Committee Reports – Findings of Systemic Fraud Accepted - Investigation and Committee reports established unauthorized data handling, manipulation of marks, unauthorized counselling, and collusion of officials – Emails, hard-disks and forensic analysis corroborated the findings – Material relied upon despite objections of tainted candidates – Cover-up attempts by WBSSC noted [Paras 21-26, 32-36].

Delay, Laches and Estoppel – Not Applicable - Objection of delay and estoppel rejected – Illegalities and fraud came to light only in 2021–2022 after CBI investigation – Public interest requires that fraud on selection process is not condoned on technical plea of delay [Para 43].

Relief – Partial Modification - Tainted candidates required to refund salaries and benefits – Untainted candidates’ appointments stand cancelled but without liability to refund payments – They may seek re-employment with their original departments without break in service but without back wages – Fresh recruitment process to be initiated [Paras 45-47].

Disabled Candidates – Equitable Relief - Differently-abled candidates permitted to continue in service until fresh recruitment process is concluded – They shall be entitled to age relaxation and other applicable concessions during fresh recruitment – However, blanket exemption from cancellation declined [Paras 48-49].

Decision – Appeals Dismissed – High Court Judgment Sustained with Modifications - Entire selection process of 2016 cancelled – Fresh recruitment directed – Unaffected by pending criminal proceedings – State’s plea against investigation into supernumerary posts kept open [Paras 50-53].

Land Acquisition – Comparable Sales – Reliance on Prior Awards – Compensation Enhanced - Landowners claimed parity with acquisitions under the 2010 notification for Malpura and Kapriwas where higher compensation was granted in Besco Ltd. and Habitat Estates Pvt. Ltd. – Held: Lands in Dharuhera and Malpura were adjoining and had similar development potential – Reference Court was right in applying the principle of parity and fixing base value based on Besco judgment with appropriate de-escalation – Compensation enhanced to Rs.1,18,37,668/- per acre [Paras 33-38]. 
 
De-escalation Principle – Adjustment for Notification Date Difference – Proper Application - The Court applied 12% per annum de-escalation for one year and additional 6% for 5 months (total 17 months) between the acquisition notifications – Base value of Rs.1,49,14,975/- (Besco) was adjusted to Rs.1,23,37,668/- – Further reduction of Rs.5 lakh per acre applied towards change of land use (CLU) charges – Final market value fixed at Rs.1,18,37,668/- per acre [Paras 34-37]. 
 
Potentiality of Land – Institutional and Industrial Development Potential Recognised - The acquired land was part of Dharuhera’s municipal area, well connected to NH-8, surrounded by HUDA sectors, schools, residential colonies, commercial complexes, and industrial hubs – Held: Land possessed significant non-agricultural and development potential, justifying enhancement [Para 33(e)-(f)]. 
 
Comparable Sale Exemplars – Rejection by High Court Found Unjustified - High Court wrongly rejected relevant sale exemplars PW4/E and PW4/F showing higher market rates of Rs.95,00,000/- per acre – These exemplars were geographically comparable and equidistant to the acquired lands – Sole reliance on PW4/D by the High Court disapproved [Paras 33(i)-(j), 36]. 
 
Doctrine of Parity – Mere Purpose Difference (Institutional vs Industrial) Not Ground to Deny Comparable Compensation - Court held that classification based on purpose of acquisition (institutional vs industrial) does not justify differential compensation when lands are adjoining, similar, and equally potential – Reference made to Nagpur Improvement Trust case [Para 33(j)]. 
 
Final Decision – Appeals Partly Allowed – Compensation Enhanced - High Court judgment set aside – Compensation enhanced to Rs.1,18,37,668/- per acre with all statutory benefits under Section 23(1-A), 23(2), and 28 of the LA Act – Delay period excluded for interest purposes – Connected appeals covered by Besco Ltd. judgment to follow suit [Paras 37-38]. 
 

Arbitration – Power to Grant Interest – Clause 22 – No Express Bar on Pendente Lite Interest – The clause barring the contractor from claiming interest on payments, arrears or balances due does not amount to an express bar on the arbitrator’s power to award pendente lite interest – Held: Under the 1940 Act, absence of a specific prohibition on the arbitrator’s power suffices to sustain such interest – Reliance Cellulose and First Ambica Construction cases applied [Paras 14-15].

Interpretation of Clause – Strict Construction Required – Bar on interest must be expressly linked to disputes or arbitrator’s jurisdiction – Clause 22 only restricts contractor’s entitlement to claim interest directly under the contract, but does not oust the arbitrator’s power – Held: Arbitrator was competent to award pendente lite interest [Paras 9-15].

Arbitration – Modification of Interest Rate – Discretion Exercised – Considering the passage of time, partial payments already made, and post-award interest paid, Supreme Court exercised its jurisdiction under the 1940 Act to reduce the pendente lite interest from 15% (as awarded by the arbitrator) to 9% – Directed payment within 60 days [Paras 16-17].

Decision – Appeal Allowed – High Court and District Judge’s orders set aside – Arbitral award restored with modification in interest rate – Pendente lite interest payable @ 9% from 18.12.1991 till 07.03.1995 [Para 16].

Service Law – Appointment – Regularization of Ex-Casual Labour – Respondent claimed benefit under APSEB policy dated 18.05.1997 for appointment as Lower Division Clerk (LDC) – Application rejected citing non-genuineness of service certificate and lack of typewriting qualification – High Court directed reconsideration of appointment ignoring typewriting requirement – Review Committee again rejected appointment citing lack of vacancy under BC-B quota and questioned genuineness of service certificate – Subsequent appointments of candidates with fewer man-days challenged – High Court allowed review petition and directed consideration on parity with other candidates – Division Bench affirmed – Supreme Court upheld High Court's direction to consider respondent's case afresh but allowed consideration of other relevant factors including genuineness of certificate and vacancies – Direction to complete reconsideration within 6 weeks [Paras 1 to 16]​.

Seniority List – Appellant argued that list relied upon was not a seniority list – Supreme Court rejected this contention – Held that the list was titled as seniority list and arranged based on dates of first engagement – Other candidates with fewer man-days and lower in the list were appointed under Court’s direction – Respondent’s case to be treated on par with similarly situated candidates [Paras 10 to 11]​.

Judicial Review – Scope – Supreme Court declined to adjudicate on genuineness of service certificate and existence of vacancy – Directed appellant to consider these aspects while deciding respondent’s case afresh [Para 15]​.

Decision – Appeal disposed of – Appellant to reconsider respondent’s appointment in six weeks considering all relevant factors – No costs [Paras 16 to 18]​.

Criminal Law – Transfer of investigation - CBI Investigation – Exceptional Circumstances – Not Made Out – Mere allegation that accused impersonated as an IPS officer and had acquaintance with local police officers is insufficient to warrant CBI investigation – No substantiated claim against investigating officers – Held: The High Court erred in transferring the investigation to CBI at the threshold stage [Paras 5, 8-9].

Multiple FIRs – Distinction in Cause of Action – Earlier FIR Quashed – The FIR registered in Himachal Pradesh against the appellant was quashed due to lack of material – However, the present FIR registered in Haryana was found to be factually distinct – Held: Quashing of the first FIR has no bearing on the validity of the second FIR, which may be investigated by local police [Paras 4-6].

Committee for Protection of Democratic Rights Case – Principles Reiterated – Constitutional courts must direct CBI investigations sparingly and only in exceptional cases where credible material justifies such transfer – Mere suspicion, vague assertions or rivalry does not justify CBI probe [Paras 7-9].

Contempt – CBI Officer’s Apology Accepted – Despite stay of the High Court’s order, CBI registered an FIR – Officer explained that it happened due to inadvertence – Held: Unconditional apology accepted and contempt petition disposed of [Paras 12].

Decision – Appeal Allowed – Order transferring the investigation to CBI set aside – Investigation to continue by local police of Haryana – Contempt petition disposed of without further action [Paras 10, 12-14].

Recruitment Qualification – Requirement of Current Lascar’s Licence – Higher

Qualification Not Equivalent – Appointment Invalid – The appellant, holding a Syrang’s licence (a higher certificate), was appointed as Boat Lascar without possessing a current Lascar’s licence as required by the advertisement and Rule 6 of the Special Rules – The Tribunal and High Court rejected his appointment – Held: Higher qualification does not substitute the specific requirement of a current Lascar’s licence and selection in violation of statutory rules is illegal [Paras 20-24, 29-31]

Non-joinder of Necessary Party – Effect of Non-impleadment of Appellant Before

Tribunal – Does Not Save Appointment – The appellant, though a necessary party, was not impleaded in the proceedings before the Tribunal – Held: Despite being a necessary party, the appellant, having failed to timely challenge the Tribunal’s order and having responded to the show cause notice, is disentitled from seeking relief on non-joinder ground [Paras 15-19]

Equality in Public Employment – Enlargement of Zone of Consideration – Director’s Letter Cannot Override Statutory Rules – Appointments Set Aside – The Director’s communication treating Syrang’s licence as equivalent to Lascar’s licence was not given wide publicity nor incorporated in the recruitment process – Held: Equality of opportunity under Article 16 was breached as eligible candidates were deprived from applying, leading to vitiation of the entire process [Paras 26-28]

Higher Qualification – When Not a Substitute for Statutory Requirement – Doctrine of Over-Qualification Not Applicable – Held: Higher qualifications may not automatically make a candidate eligible if specific statutory qualifications are prescribed – Appellant’s case distinguished from Parvaiz Ahmed Parry and Chandra Shekhar Singh cases – Requirement of ‘current’ Lascar’s licence is mandatory and non-negotiable [Paras 32-36]

Article 142 of the Constitution – No Relief When Appointment Found to be Illegal

– Power Not Exercised – Held: No palpable injustice established – Power under Article 142 not exercised to regularize an illegal appointment contrary to the statutory rules [Paras 37-40]

Decision – Appeals Dismissed – Appointment of appellant rightly cancelled for lack of prescribed qualification and violation of recruitment rules [Paras 41-42]

Criminal Law – Murder Conviction – Appellants convicted under Section 302 r/w Section 34 IPC for causing death of deceased during a scuffle at his house – Incident arose due to worship at disputed land – Appellants armed with deadly weapons trespassed into deceased's house – Deceased sustained fatal head injury from reverse side of axe – High Court confirmed Trial Court’s conviction – Defence argued injury could have resulted from accidental fall – Held: Ocular testimony of injured eye-witnesses (grandchildren of deceased) and medical evidence corroborated premeditation and intention to cause fatal injury – No merit in plea of accidental injury – Conviction under Section 302 sustained [Paras 2 to 14]​.

Witness Testimony – Credibility of Injured Eye-Witnesses – PW1 to PW3 (grandchildren) were eye-witnesses and injured in the same transaction – Consistent with FIR and medical evidence – Presence inside house justified – Minor contradictions not material – Relationship with deceased did not impair credibility – PW4 (neighbour) corroborated presence of accused with weapons and scuffle – Testimony reliable and trustworthy [Paras 5 to 10]​.

Medical Evidence – Deceased suffered two head injuries, one fatal – Doctor opined injury could be caused by blunt object or accidental fall – Held: In context of proven assault with reverse side of axe, accidental fall theory rejected – Fatal injury consistent with ocular evidence – Offence not covered under Exception to Section 300 IPC – Conviction under Section 302 justified [Paras 11 to 13]​.

Decision: Appeal dismissed – Conviction and sentence under Section 302 r/w Section 34 IPC affirmed – Appellants directed to surrender within two weeks [Paras 14 to 15]​.

Cheque Dishonour – Presumption of Legally Enforceable Debt – Sections 118 & 139 of the Negotiable Instruments Act – Presumption Operated - The accused admitted the signature on the cheque but claimed the cheque was lost – The intimation of loss was found to be doubtful as it was lodged one year after the alleged loss – The accused failed to rebut the statutory presumption of existence of legally enforceable debt – Held: The complainant is entitled to rely on the statutory presumption in the absence of a probable defence [Paras 14-18].

Capacity to Lend – Not Required to be Proved Initially – Burden on Accused – It is not mandatory for the complainant to initially prove capacity to lend – The burden shifts to the accused only when the capacity is specifically challenged – Held: High Court erred in holding that the complainant was obliged to prove withdrawal of funds in the absence of any challenge by the accused during trial [Paras 21-22].

Maintainability – Complaint Against Partner Without Arraigning Partnership Firm – Not Fatal – The signatory of the cheque (Partner) is a person in charge of the firm – Held: The proceedings against respondent no.2 are maintainable even without impleading the firm – Sunita Palita and Aneeta Hada harmonized [Paras 19-20].

Revision Jurisdiction – Limited Scope – High Court Cannot Re-Appreciate Evidence to Upset Concurrent Findings Without Sufficient Grounds – Held: High Court erred in interfering with well-reasoned concurrent findings of the Trial Court and Appellate Court which found the accused guilty [Paras 14, 23].

Sentence – Modified on Compassionate Grounds – Considering the accused’s age and family circumstances, sentence modified from imprisonment and fine to fine only – The accused directed to pay Rs.32,00,000/- within four months failing which original sentence will revive [Paras 24-25].

Labour Law – Bonus – Applicability of Payment of Bonus Act, 1965 – Appellant trust engaged in rehabilitation of leprosy-cured and specially-abled persons – Since 1985 also engaged in commercial manufacturing of automobile and industrial parts generating profits – Workers, though beneficiaries of rehabilitation, employed in manufacturing activities in factories covered under Factories Act – Tribunal, Single Judge, and Division Bench of High Court held that Bonus Act applies – Appellant not entitled to exemption under Section 32(v)(a) or (c) of the Bonus Act – Workers entitled to minimum bonus of 8.33% subject to adjustment of already paid ex-gratia [Paras 3 to 19]​.

Exemption – Claim of exemption under Section 32(v) – Appellant claimed to be like Indian Red Cross Society or institution established not for profit – Held: Appellant severed links with Red Cross in 1989 – Since engaged in commercial activities with profit generation – Factories governed by labour laws – Cannot claim exemption merely due to charitable objects – Bonus Act applicable [Paras 12 to 16]​.

Bonus vs Ex-Gratia – Appellant contended existing ex-gratia payments substitute bonus – Held: Ex-gratia is voluntary, bonus is statutory – Payment of bonus under Bonus Act mandatory irrespective of ex-gratia – Adjustment of ex-gratia permissible as directed by High Court [Paras 17 to 18]​.

Decision – Appeal dismissed – Appellant directed to pay bonus from 1996-97 onwards within one month – Workmen entitled to statutory bonus in accordance with law [Paras 19 to 22]​.