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Issues Involved:
1. Validity of the Rules under which the appellant was compulsorily retired. 2. Compliance with procedural requirements under the Rules. 3. Adequacy of the charges against the appellant. 4. Whether the appellant was given a reasonable opportunity to defend himself. 5. Whether the compulsory retirement amounted to a penalty requiring proper inquiry. Detailed Analysis: 1. Validity of the Rules: The appellant contended that the Civil Services (Safeguarding of National Security) Rules, 1949, were a "colourable exercise of the power" conferred on the Governor-General under Section 241(2) of the Government of India Act, 1935. The argument was that the Rules were not aimed at regulating conditions of service but served as a punitive measure. The Court did not find it necessary to delve into this issue in detail, as the appeal succeeded on other grounds. 2. Compliance with Procedural Requirements: The appellant argued that the procedural requirements under Rule 4 were not met. Specifically, it was contended that the appellant was not given a reasonable opportunity to show cause against the proposed action, and that the evidence against him was withheld on the grounds of confidentiality. The Court found that since the charge itself was fundamentally flawed, it was unnecessary to determine whether the procedural requirements were met. 3. Adequacy of the Charges: The core issue was whether the charges against the appellant fell within the purview of Rule 3. Rule 3 allows for compulsory retirement of a government servant if they are "engaged in subversive activities," "reasonably suspected to be engaged in subversive activities," or "associated with others in subversive activities." The Court found that the charges against the appellant did not meet these criteria. The charge stated that the appellant "continued to associate with others engaged in subversive activities," which did not amount to the appellant himself being engaged or suspected to be engaged in such activities. The Court emphasized that as Rule 3 is penal in nature, it must be strictly construed. 4. Reasonable Opportunity to Defend: The appellant claimed that he was not given a reasonable opportunity to defend himself as the charges were vague and the evidence was not disclosed. The Court noted that the appellant had requested a personal hearing and access to the evidence, which was denied. However, since the charge itself did not meet the requirements of Rule 3, the question of whether the appellant was given a reasonable opportunity to defend himself was rendered moot. 5. Compulsory Retirement as a Penalty: The appellant argued that compulsory retirement under the Rules amounted to a penalty and thus required a proper inquiry and opportunity to show cause. The Court agreed, noting that since Rule 3 was not applicable to the appellant's case, the premature termination of his service amounted to removal by way of penalty. The Court cited the precedent set in P. Balakotaiah v. The Union of India, distinguishing it by noting that in the present case, the charges did not allege engagement in subversive activities, unlike in Balakotaiah's case. Conclusion: The Supreme Court allowed the appeal, holding that the charges against the appellant did not fall within the purview of Rule 3 of the Civil Services (Safeguarding of National Security) Rules, 1949. Consequently, the appellant's compulsory retirement was not legally justified, and the premature termination of his service was tantamount to removal by way of penalty. The appellant was entitled to relief under Article 226 of the Constitution. The appeal was allowed with costs.
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