Moti
Ram Vs. Param Dev & Anr [1993] INSC 121 (5 March 1993)
Agrawal, S.C. (J) Agrawal, S.C. (J) Pandian, S.R. (J)
CITATION:
1993 AIR 1662 1993 SCR (2) 250 1993 SCC (2) 725 JT 1993 (2) 251 1993 SCALE
(1)803
ACT:
Representation
of the Peoples Act 1951 : Section 116- A--Election petition challenging
applicant's election to the State Legislature Assembly--Allowed--Dissolution of
the Legislation of the Legislative Assembly pending appeal to this
court--Effect of.
Representation
of the Peoples Act, 1951--Section 36(1)(2)--requirement of the candidate of
being qualified for being chosen to fill the seat on the date filed for
scrutiny of nomination--Resignation from the office of Chairman in far take
effect from the date of the date of the communication for the Head of the
Department in the Government.
HEAD NOTE:
For
election to the Himachal Pradesh Legislative Assembly from 60 Chachiot Assembly
Constituency held during February, 1990, fifteen persons, including the
appellant and one Karam Singh, filed nomination papers. At the time of
scrutiny, an objection was raised against the nomination of Karam Singh on the
ground that he was holding the office of Chairman, Himachal Pradesh Khadi and
village Industries Board, which is an office of porfit within the meaning of
Article 191 (1) (a) of the Constitution and was, therefore, disqualified for
being chosen as a member of the legislative Assembly. The Returning Officer
upheld the objection and rejected the nomination of Karam Singh. The appellant
was declared elected to the Legislative Assembly from the said Constituency.
His election was challenged by the Respondents by filing election petitions in
the High Court of Himachal Pradesh. The High Court found that the said
rejection of nomination of Karam Singh was improper because on the date of
scrutiny Karam Singh was not holding an office of profit and for that reason,
the election of the appellant was set aside.
The
appellant herein filed the present appeals under section 116-A of the
Representation of the People Act, challenging the judgment of the High Court of
Himachal Pradesh.
251
During the pendency of the appeals the Himachal Pradesh Legislative Assembly
was dissolved.
After
considering the appeals on merits the Court, which dismissing the appeals,
HELD :
1. Inspite
of the dissolution of the Himachal Pradesh Legislative Assembly the question
arising for consideration cannot be said to have become academic because the
invalidation of the election of the appellant may give rise to the liability to
refund the allowances received by the Appellant. [253G, 255-B] Loknath Padhan
v. Birendra Kumar Sahu, [1974] 3 SCR 114, distinguished. [253G]
2.01.'Resignation'
means the spontaneous relinquishment of one's own right and in relation to an
office, it cannotes the act of giving up or relinquishing the office. The act
of relinquishment may be unilateral or bilateral depending on the return of the
office and the conditions governing it. [260F]
2.02.If
the act of relinquishment is of unilateral character, it comes into effect when
such act indicating the intention to relinquish the office is communicated to
competent authority. The authority to whom the act of relinquishment is
communicated is not required to take any action and the relinquishment takes
effect from the date of such communication where the resignation is intended to
operate in praesenti. [260G]
2.03.In
cases where the act of relinquishment is of a bilateral character, the
communication of the intention to relinquish, by itself, would not be
sufficient to result in relinquishment of the office and some action is
required to be taken on such communication of the intention to relinquish,
e.g., acceptance of the said request to relinquish the office, and in such a
case the relinquishment does not become effective or operative till such action
is taken. [260H,,261A-B]
301.
From the provision of Section 7 of the H.P. Khadi and Village Industries Board
Act, 1966, (the 'Act') it would appear that the act of relinquishment of the
office of Chairman of the H.P. Khadi and Village Industries Board (the Board)
is unilateral in character and the resignation from the said office takes
effect when it is communicated without any 252 further action being required to
be taken on the same.
Since
the Chairman of the Board is nominated by the Government of Himachal Pradesh
under Section 4(2) of the Act, resignation has also to be communicated to the
Government of Himachal Pradesh i.e. the Head of the Department dealing with the
Board, and once it is so communicated it takes effect from the date of such
communication if the resignation is in praesenti or from the date indicated
therein if it is prospective in nature to be operative from a future date.
[263G-H, 264A-B] 3.02.The resignation of Karam Singh as Chairman of the Board
was not required to be accepted by the Government of Himachal Pradesh. It
became effective on January
31, 1990 when the
letter of resignation was received by the Financial Commissioner-cum-Secretary
(Industries) to the Government of Himachal Pradesh who was the Head of the
Department dealing with the Board and to whom it was addressed. [265D]
3.03.Since there is no requirement in the Act that the resignation of the
Chairman of the Board should be notified in the Official Gazette as in the case
of a member of the Board, it cannot be said that the resignation of Karam Singh
did not take effect till it was notified in the Official Gazette vide
notification dated February 12, 1990. [265E] Central Inland Water Transport
Corporation Limited and Another v. Brojo Nath Ganguly and Anr., [1986] 2 SCR
273; J.K Cotton Spinning and Weaving Mills Company Ltd. v. State of U.P. &
Others, [1990] 3 SCR 523; Lala Ram v. Gauri Shanker, 1981 All. Law 1982; Raj
Kumar v. Union of India, [1968] SCR 857; Union of India v. Shri Gopal Chandra Misra
& Ors., [1978] 3 SCR 12 at p. 21 and Glossop v. Glossop, 1907,2 Ch. 370, Halsburys
Law of England 4th Ed., Vol. 7, p. 316, para 536, relied on. [260D-G, 261G,
262G]
CIVIL
APPELLATE JURISDICTION: Civil Appeal Nos. 2640-41 of 1991.
From
the Judgment and Order dated 3.6.1991 of the Himachal Pradesh High Court in
Election Petition Nos. 1 & 2 of 1990.
A.K. Ganguli,
B.T. Kaul, Sarvesh Bisaria and S.K. Bisaria for the Appellant.
B. Dutta
and R. Sasiprabhu for the Respondents.
253
The Judgment of the Court was delivered by S.C. AGRAWAL, J. These appeals have
been filed under section 116-A of the Representation of the People Act, 1951.
They relate to election to the Himachal Pradesh Legislative Assembly from 60- Chachiot
Assembly constituency held during February, 1990. The appellant was declared
elected to the Legislative Assembly from the said constituency. His election
was challenged by the respondents in these appeals by filing election petitions
in the High Court of Himachal Pradesh. By its judgment dated June 3, 1991, the High Court has allowed the
election petitions and has set aside the election of the appellant on the
ground that the nomination of one of the candidates, Shri Karam Singh was
improperly rejected by the returning officer.
The
last date for filing the nomination papers was February 2, 1990 and the scrutiny of the nomination papers was fixed for February 5, 1990. Fifteen persons, including the
appellant and Shri Karam Singh had filed nomination papers.
At the
time of scrutiny, an objection was raised on behalf of one of the candidates
against the nomination of Shri Karam Singh on the ground that he was holding
the office of Chairman, Himachal Pradesh Khadi and Village Industries Board,
which is an office of profit within the meaning of Article 191(1)(a) of the
Constitution and was, therefore, disqualified for being chosen as a member of
the Legislative Assembly. By order dated February 7, 1990, the Returning Officer upheld the
said objection and rejected the nomination of Shri Karam Singh. The High Court
has, however, found that the said rejection of nomination of Shri Karam Singh
was improper because on the date of scrutiny Shri Karam Singh was not holding
an office of profit and has, for that reason, set aside the election of the appellant.
Before
we proceed to deal with the appeals on merits, it may be mentioned that during
the pendency of these appeals before this court, the Himachal Pradesh
Legislative Assembly has been dissolved. This raises the question whether the
matters in issue in these appeals have ceased to be living issues and have
become wholly academic. The effect of dissolution of the legislature on a
pending election appeal has been considered by this court in Loknath Padhan v. Birendra
Kumar Sahu, [1974] 3 SCR 114. In that case, the election of the returned
candidate was challenged before the High Court on the ground that there was a
subsisting contract entered into 254 by the respondent in the course of his
trade and business with the State Government for the execution of works
undertaken by the Government and he was, therefore, disqualified under section
9A of the Representation of the People Act, 1951. The election petition was,
however, dismissed by the High Court and while the appeal against the said
decision was pending in this Court, the Legislative Assembly was dissolved. A
preliminary objection was raised on behalf of the respondent to the appeal that
in view of the dissolution of the assembly it was academic to decide whether or
not the respondent was disqualified under section 9A. Upholding the said
preliminary objection, this court has held that the court should not undertake
to decide an issue unless it is a living issue between the parties and if an
issue is purely academic, in that its decision one way or the other would have
no impact on the position of the parties, it would be waste of public time and
indeed not proper exercise of authority for the court to engage itself in
deciding it. In that case, this court drew a distinction between a case where
the challenge to the election is on a ground confined to the validity of that
election only and having no consequences operating in future and a case
involving challenge to the election on a ground which would entail electoral
disqualification for the future, such as, charge of corrupt practice. It was
held that if the election is challenged on the ground of commission of a
corrupt practice the dissolution of the legislature would not have any effect
on the pendency of an election petition or an appeal arising there from and the
said petition will have to be considered on its merits whereas a challenge to
the election on any other ground which does not entail future disqualification
would raise academic issue only and in view of the dissolution of the
legislature the election petition or the appeal arising therefrom would not
survive because it would be futile and meaningless for the court to decide an
academic question the answer to which would not affect the position of one
party or the other.
Although
in the instant case the election is not challenged on the ground of commission
of any corrupt practice and a finding would not result in electoral
disqualification in future but- the present case differs from the case of Loknath
Padhan v. Birendra Kumar Sahu (supra) in the sense that in Loknath's case the
election petition was dismissed whereas in the present case the election
petitions against the election of the appellant have been allowed and the
election has been set aside. It has been submitted by Shri A.K. Ganguli, the
learned Senior counsel appearing on behalf of the appellant, that in view of
the fact that the decision of the High 255 Court setting aside his election,
the appellant may be required to refund the various allowances that he has
received while he was functioning as a member of the Legislative Assembly after
his election till the decision of the High Court. It would thus appear that
invalidation of the election of the appellant may give rise to the liability to
refund the allowances received by the appellant as a member of the Legislative
Assembly. It cannot, therefore, be said that the question a rising for
consideration in this appeal are purely academic in nature. In these
circumstances, it becomes necessary to go into the merits of these appeals.
The
relevant facts relating to the rejection of the nomination of Shri Karam Singh
are as under.
The Himachal
Pradesh Khadi and Village Industries Board (hereinafter referred to as 'the
Board'). has been established by the Government of Himachal Pradesh under
Section 3 of H.P. Khadi and Village Industries Board Act, 1966 (hereinafter
referred to as 'the Act'). Section 4 provides for the constitution of the Board
and in sub-s.
(1),
it is laid down that the Board shall consist of not less than three and not
more than nine members appointed by the Government of Himachal Pradesh after
consultation with the Khadi and Village Industries Commission from amongst
non-officials who in the opinion of Government of Himachal Pradesh have shown
active interest in the protection and development of khadi and village
industries and officials.
In
sub-s. (2) of Section 4 it is provided that the Government of Himachal Pradesh
shall after consultation with the Khadi and Village Industries Commission,
nominate one of the members of the Board to be the Chairman thereof, Section 7
makes provision for resignation of office by members.
Section
11 provides that the term of office and terms and conditions of service of the
Chairman, Vice-Chairman, Secretary and other members shall be such as may be
prescribed. In exercise of the powers conferred by Section 35 of the Act, the
Government of Himachal Pradesh has made the Himachal Pradesh Khadi and Village
Industries Board Rules, 1966 (hereinafter referred to as 'the Rules'). Rule 3 of
the Rules prescribes that a member of the Board shall hold office for such
period not exceeding three years as may be prescribed in the notification of
his appointment which shall be notified in the Official Gazette and shall be
eligible for re-appointment. Rule 7 provides for salary or honorarium and
allowance payable to members. Sub-rule (1) of Rule 7 provides that the
Chairman, the Vice-Chairman, the Secretary and other 256 members of the Board
shall be paid such salary or honorarium and allowances from the funds of the
Board as the Government may from time to time fix. In sub- rule (2) of Rule 7,
it is laid down that the Chairman, the Vice-Chairman, the secretary and other
members of the Board shall also be entitled to draw travelling and daily
allowances for journeys performed for attending the meetings of the Board or
for the purpose of discharging such duties as may be assigned to them by the
Board in accordance with the rules and orders issued by the Government from
time to time at the highest rate admissible to Government servants of Grade 1.
By
notification dated September 2, 1982, issued in exercise of the powers
conferred by Rule 7 of the Rules, the Governor of the Himachal Pradesh, ordered
that the Chairman of the Board shall be entitled to pay and other allowances
from the Funds of the Board at the following rates:-
(1)
Pay/remuneration/honorarium of Rs. 1500 p.m. (consolidated).
(2)
Free electricity and water charges upto Rs. 1500 per year.
(3)
Use of a car or in lieu thereof a conveyance allowance of Rs. 300 per month.
(4)
Telephone facilities in office and at residence.
(5) TA
and medical expenses admissible to the officers of Highest First Grade
category.
By
notification dated December 27, 1986, the Governor of Himachal Pradesh constituted
the Board with immediate effect. Under the said order, the Board consisted of
nine members including Shri Karam Singh Thakur. By the said order the Governor
of Himachal Pradesh also nominated Shri Karam Singh Thakur as Chairman of the
said Board. By notification dated December 20, 1989, the term of the Board was
extended upto December 26, 1990. On October 18, 1989, Shri Karam Singh Thakur
wrote a letter to the Financial Commissioner-cum-Secterary (Industries) to the
Government of Himachal Pradesh wherein it was stated that consequent upon
amendment to Second Proviso to section (1) of section 6B of the Himachal
Pradesh Legislative Assembly (Allowances and Pension of members) Act, 1971, his
pension had been revised to Rs. 2400 per month with effect from February 4,
1989 and that on the basis of the said orders, 257 he was authorised by the
Senior DAG(A&E), Himachal Pradesh, Shimla, by letter dated 6th July, 1989,
to draw from Shimla Treasury the balance pension of Rs. 900 p.m. after
adjusting the remuneration of Rs. 1500 which he had been drawing as
remuneration from the Board and the pension of Rs. 900 p.m.
plus
relief due thereon from the Punjab National Bank through Treasury Officer, Shimla.
By aforesaid letter, Shri Karam Singh intimated that he now intended not to
draw the monthly remuneration of Rs. 1500 p.m. from the Board and that instead
he would be drawing the gross pension of Rs.
2400
p.m. from the Treasury/Bank and he requested that no objection of the State
Government to the said proposal may be conveyed to him at an early date. The
said proposal made by Karam Singh was accepted by the Government of Himachal
Pradesh and by notification dated January 8, 1990 issued under Rule 7(1) of the
Rules, the Governor of Himachal Pradesh ordered that the remuneration of Rs.
1500 p.m.
(consolidated)
which was payable to the Chairman of the Board shall cease as per the request
of the Chairman made vide his letter dated October 18, 1989. On January 31,
1990, Shri Karam Singh addressed a Letter to the Financial
Commissioner-cum-Secretary (Industries) to the Governor of Himachal Pradesh in
the following terms :- "I hereby resign from the membership and
Chairmanship of the Himachal Pradesh Khadi and Village Industries Board. The
resignation may kindly be accepted with effect from today Le. 31st January, 1990".
On the
basis of the letter of January 31, 1990, which was received on the same day,
the matter was processed in the office of Financial Commissioner-cum-Secretary
(industries) and it was placed before the Chief Minister for his approval with
the recommendation that the resignation of Shri Karam Singh, Chairman, may be
accepted. The Chief Minister gave his approval on February 4, 1990. On February
12, 1990, a notification was issued in the following terms :- "In exercise
of the powers vested in him under section 7 of the Himachal Pradesh Khadi and
Village Industries Board Act, 1966, the Governor, Himachal Pradesh is pleased
to accept the resignation of Shri Karam Singh Thakur, Chairman, H.P. Khadi and
Village Industries Board, Shimla with immediate effect".
258 In
the meanwhile, Shri Karam Singh filed his nomination papers for election to the
Himachal Pradesh Legislative Assembly from the 60 Chachiot Assembly constituency.
The scrutiny of the nomination papers was held on February 5, 1990. An
objection was raised against the nomination of Shri Karam Singh on behalf of
one of the candidates, viz., Vir Singh, on the ground that Shri Karam Singh was
holding an office of profit and was disqualified for being chosen as a member
of the Legislative Assembly. Shri Karam Singh was not present at the time of
scrutiny but his proposer, Shri Mani Ram, Advocate, was present and he was
requested to ensure the appearance of Shri Karam Singh before the Returning
Officer on February 6, 1990 at 11.00 a.m. for hearing him in connection with
the objection. The Returning Officer also directed Tehsildar (Elections) to
enquire from the Secretary of the Board about the remuneration and other
allowances being drawn by Shri Karam Singh in his capacity as chairman of the
Board. The report of the Tehsildar was placed before the Returning Officer. Shri
Mani Ram, Advocate, as proposer of Shri Karam Singh also submitted a reply to
the Returning Officer on February 6, 1990 wherein it was stated that Karam
Singh had resigned from the chairmanship on 29th or 30th of January 1990 and
that the acceptance of the resignation was not kwown to Shri Karam Singh. By
order dated February 7, 1990, the Returning Officer rejected the nomination of Shri
Karam Singh on the view that were submission of the resignation unless it was
accepted, could not be taken as deemed to have been accepted and that Shri Karam
Singh was holding an office of profit as his resignation had not been accepted upto
February 5, 1990 which was the date for scrutiny, and that he was not eligible
to seek election as a candiate for the Himachal Pradesh Legislative Assembly.
Before
the High Court, it was submitted on behalf of the petitioners in the election
petitions (respondents herein) that Shri Karam Singh had resigned with effect
from January 31, 1990 vide his resignation letter of the
said date and the said letter takes effect from January 31, 1990 itself.
The
High Court accepted the said contention and held that the Act is silent and contains
no provision as to how and in what manner the resignation of the Chairman of
the Board is to be accepted and therefore the holder thereof could bring his
appointment to an end by resigning with effect from a particular date and he
would then be deemed to have ceased to be Chairman from the date itself
notwithstanding its acceptance on a later date. The High Court was, therefore,
of the view that Shri Karam Singh 259 held no office of profit whatsoever in
the Board on the date of scrutiny, i.e., February 5, 1990 since he had tendered his
resignation on January
31, 1990. The High
Court, further, found that in view of the letter dated October 18. 1989 sent by
Shri Karam Singh conveying his request of giving up the remuneration of Rs.
1500 per month (consolidated) which request was accepted by the State
Government as pet notification dated January 8, 1990, pursuant to which Shri Karam
Singh ceased to be entitled to draw the abovementioned remuneration with effect
from January 8, 1990, Shri Karam Singh was not entitled to remuneration which
could be classified as `profit' for the office of Chairman of the Board held by
him and after January 8, 1990, it could not be said that Shri Karam Singh was
holding an office of profit and therefore the disqualification for membership
of the Legislative Assembly of Himachal Pradesh could not attach to him. For
the reasons aforesaid, the High Court held that the nomination of Shri Karam
Singh was wrongly rejected by the Returning Officer.
Shri Ganguli
has assailed the findings recorded by the High Court on both the questions
whereas Shri B. Datta, the learned senior counsel appearing for the respondents
has supported the said findings.
It is
not disputed that in view of the amendment introduced in clause (a) of sub-s. (2)
of Section 36 of the Representation of the People Act, 1951 by Act 40 of 1961,
the relevant date for determining whether a candidate was qualified or
disqualified for being chosen to fill the seat under the various provisions of
Constitution mentioned therein, including Article 191, is the date fixed for
scrutiny of nominations. In the instant case the said date was February 5, 1990. It is, therefore, necessary to
determine whether Shri Karam Singh was holding an office of profit on February
1990.
In view
of the findings recorded by the High Court, the following questions arise for
consideration.
(1)
Did Shri Karam Singh cease to hold the office of Chairman of the Board on
January 31. 1990 the date on which he submitted his resignation from the said
office or on February
12, 1990 when the
notification about acceptance of his resignation with immediate effect was
issued by the Government of Himachal Pradesh?
(2)
Did the office of Chairman of the Board held by Shri Karam 260 .
Singh
cease to be an office of profit with effect from January 8, 1990 in view of the
notification of the said date whereby the remuneration of Rs. 1500 p.m.
(consolidated) payable to the Chairman of the Board had ceased to be payable to
Shri Karam Singh? Shri Ganguli has urged that the resignation of Shri Karam
Singh from the office of Chairman of the Board could be effective only after it
was accepted by the Governor of Himachal Pradesh who had nominated him to the
said office and till the acceptance of the said resignation, Shri Karam Singh
continued to hold the office of the Chairman of the Board. The submission of Shri
Ganguli is that acceptance of a resignation is necessary before it can be
effective and since in the present case the resignation was accepted only by
notification dated February 12, 1990, Shri Karam Singh continued as Chairman of
the Board till that date and he was holding that office on the date of
scrutiny, i.e., February, 5, 1990. In support of this submission Shri Ganguli
has placed reliance on the decisions of this Court in Central Inland Water
Transport Corporation Limited and Another v. Brojo Nath Ganguly and Anr.,
[1986] 2 SCR 278 and J.K Cotton Spinning and Weaving Mills Company Ltd. v.
State of U.P. & Others., (19901 3 SCR 523 as well as the decision of the
Allahabad High Court in Lala Rain v. Gauri Shanker, 1981 All. Law 1982. Having
carefully considered the said contention of Shri Ganguli we find it difficult
to accede to it.
As
pointed out by this court, 'resignation' means the spontaneous relinquishment
of one's own right and in relation to an office, it connotes the act of giving
up or relinquishing the office. It has been held that in the general juristic
sense, in order to constitute a complete and operative resignation there must
be the intention to give up or relinquish the office and the concomitant act of
its relinquishment. It has also been observed that the act of relinquishment
may take different forms or assume a unilateral or bilateral character,
depending on the nature of the office and the conditions governing it. (See :
Union of India v. Shri Gopal Chandra Misra & Ors., [1978] 3 SCR 12 at p.
21). If the act of relinquishment is of unilateral character, it comes into
effect when such act indicating the intention to relinquish the office is communicated
to the competent authority. The authority to whom the act of relinquishment is
communicated is not required to take any action and the relinquishment takes
effect from the date of such communication where the resignation is intended to
operate in prasenti. A resignation may also be prospective to be operative 261
from a future date and in that event it would take effect from the date
indicated therein and not from the date of communication. In cases where the
act of relinquishment is of a bilateral character, the communication of the
intention to relinquish, by itself, would not be sufficient to result in
relinquishment of the office and some action is required to be taken on such
communication of the intention to relinquish, e.g., acceptance of the said
request to relinquish the office, and in such a case the relinquishment does
not become effective or operative till such action is taken. As to whether the
act of relinquishment of anoffice is unilateral or' bilateral in character
would depend upon the nature of the office and conditions governing it.
Under
the Constitution of India there are various offices which can be relinquished
by unilateral act of the holder of the office and acceptance of resignation is
not required, e.g., President [Article 56(a)]. Vice-President [Article 67(a)],
Deputy Chairman of Rajya Sabha [Article 90(b)], Speaker and Deputy Speaker of Lok
Sabha [Article 94(b)], Judge of the Supreme Court [Article 124(2)(a)], Judge of
a High Court [Article 217 (1)(a)]. As regards member of either House of
Parliament or a member of a House of Legislature of a State, originally, the
position was that he could resign his office by unilateral act and the
acceptance of resignation was not required. The requirement of acceptance of
such resignation was introduced in Articles 101(3)(b) and 190(3)(b) by the
Constitution (ThirtyThird Amendment) Act, 1974. Similarly in company law, a
director of a company is entitled to relinquish his office at any time he
pleases by proper notice to the company and acceptance of the resignation is
not required. [See: Glossop v. Glossop, (1907) 2 Ch 370, Halsbury's Law of
England, 4th Ed., Vol. 7, p. 316, para 536].
A
contract of employment, however, stands on a different footing wherein the act
of relinquishment is of bilateral character and resignation of an employee is
effective only on acceptance of the same by the employer. Insofar as Government
employees are concerned, there are specific provisions in the Service rules
which require acceptance of the resignation before it becomes effective. In Raj
Kumar v. Union of India, [1968] 3 SCR 857, it has been held "But when a
public servant has invited by his letter of resignation determination of his
employment, his services 262 normally stand terminated from the date on which
the letter of resignation is accepted by the appropriate authority, and in the
absence of any law or rule governing the conditions of his service to the
contrary, it will not be (,pen to the public servant to withdraw his
resignation after it is accepted by the appropriate authority. Till the
resignation is accepted by the appropriate authority in consonance with the
rules governing the acceptance, the public servant concerned has locus paenitentiae
but not thereafter".
(p.860)
Similarly, in Central Inland Water Transport Corporation Ltd. and Anr. v. Brojo
Nath Ganguly and Anr. (supra) which related to an employee of a Government
company jointly and wholly owned by the Central Government and two State
Governments, it was observed "A resignation by an employee would, however,
normally require to be accepted by the employer in order to be effective. It
can be that in certain circumstances an employer would be justified in refusing
to accept the employee's resignation as, for instance, when an employee wants
to leave in the middle of a work which is urgent or .important and for the
completion of which his presence and participation a necessary. An employer can
also refuse to accept the resignation when there is a disciplinary inquiry
pending against the employee. In such a case, to permit an employee to resign
would be to allow him to go away from the service and escape the consequences
of an adverse finding against him in such an inquiry. There be justified in not
accepting the resignation of an employee".
(p.386)
The same view was reiterated in J.K. Cotton Spinning and Weaving Mills Company
Ltd. v. State of U.P. & Ors. (Supra) which also relates to a contract of
employment.
The
question whether the resignation of Shri Karam Singh from the office of Chairman
of the Board was required to be accepted before it became effective involves
the question whether the act of relinquishment 263 of the office of Chairman is
unilateral or bilateral in character. In order to answer this question it is
necessary to consider the relevant provisions of the Act. The Act does not
contain any provision for resignation of the office of Chairman of the Board
but in Section 7, the following provision has been made with regard to the
resignation of office by members "7. Resignation of office by members Any
member may resign, his office by giving notice in writing to the Government of Himachal
Pradesh and, on such resignation being notified in the Official Gazette by the
Government of Himachal Pradesh, shall be deemed to have vacated his
office".
In the
aforesaid provision, there is no requirement that the resignation of a member
should be accepted by any authority.
What
is required is that a member who wishes to resign his office as member should
give notice in writing to the Government of Himachal Pradesh and such
resignation takes effect when it is notified in the official gazette by the
Government of Himachal Pradesh. This indicates that the act of relinquishment
of the office of a member of the Board is bilateral in character in as much as
the resignation takes effect only when such resignation is notified in the
Official Gazette by the Government of Himachal Pradesh.
There
is no such requirement for relinquishing the office of Chairman of the Board.
Section 4(2), however, provides that the Chairman of the Board has to be
nominated from amongst the members of the Board. This means that the Chairman
of the Board holds office so long as he is a member of the Board and if he
ceases to be a member of the Board he also ceases to be the chairman of the
Board. But the converse is not true. A Chairman of the Board may resign his
office as Chairman but may continue as member of the Board. If he resigns only
from the office of Chairman of the Board, there is no requirement that such resignation
should be accepted by any authority or that any other action is required to be
taken for the said resignation to be effective. It would, therefore, appear
that the act of relinquishment of the office of Chairman of the Board is
unilateral in character and the resignation from the said office takes effect
when it is communicated without any further action being required to be taken
on the same. Since the Chairman of the Board is nominated by the Government of Himachal
Pradesh under Section 4(2) of the Act, resignation has 264 also to be
communicated to the Government of Himachal Pradesh i.e., the Head of the
Department dealing with the Board, and once it is so communicated it takes
effect from the date of such communication if the resignation is in presenti or
from the date indicated therein if it is prospective in nature to be operative
from a future date.
This
means that the act of relinquishment of the office of Chairman of the Board
differs from the act of relinquishment from the office of a Member of the Board
in the sense that while the act of relinquishment of office of a Member is
bilateral in character requiring certain action, namely, resignation being
notified in the Official Gazette by the Government of Himachal Pradesh before
it comes into effect, the act of relinquishment of the office of Chairman of
the Board is unilateral in character. The decisions on which reliance has been
placed by Shri Ganguli relating to contracts of employment where the act of
relinquishment has been held to be bilateral in character requiring acceptance
of the resignation, can, therefore, have no application to the present case
where the act of relinquishment of the office of Chairman of the Board is
unilateral in character.
Three
possible situations involving resignation by a person holding the office of
Chairman of the Board can be envisaged :
(i) He
may resign only from the office of the Chairman of the Board. In such a case if
the resignation is in presenti it would take effect from the date of
communication of the resignation to the Head of the Department in the
Government of Himachal Pradesh it would take effect from the date as indicated
in the said resignation if the resignation is prospective to be operative from
a future date.
(ii)He
may resign only from the office of the member of the Board. This resignation
would take effect from the date the resignation is notified in the Official
Gazette by the Government of Himachal Pradesh and with effect from the said
date the Chairman would cease to be a member of the Board.
Since
a person cannot continue as Chairman of the Board after he has ceased to be a
member of the Board, he would also cease to be the Chairman of the Board from
the date of his resignation as member of the Board is notified in the Official
Gazette by the Government of Himachal Pradesh.
(iii)He
may resign both from the office of Chairman of the Board 265 as well as from
the office of member of the Board. In such a case, his resignation from the
office of Chairman of the Board would take effect from the date of
communication to the Head of the Department in the Government of Himachal pradesh
if it is it? praesenti or from the date indicated therein if it is prospective
to be operative from a future date. He would, however, continue to be a member
of the Board till his resignation from the office of member is notified in the
Official Gazette by the Government of Himachal Pradesh under Section 7 of the
Act.
The
instant case falls in the third category because Shri Karam Singh, by his
letter dated January 31, 1990, resigned from the office of member as well as
the office of Chairman of the Board and wanted the resignation to be accepted
with effect from the same day, i.e., January 31, 1990. By notification dated
February 12, 1990, it was notified that the resignation of Shri Karam Singh Thakur,
as Chairman of the Board has been accepted by the Governor of Himachal Pradesh
with immediate effect. In our opinion, the said notification dated February 12,
1990, proceeds under a misconception of the correct legal position. The
resignation of Shri Karam Singh as Chairman of the Board was not required to be
accepted by the Government of Himachal Pradesh. It became effective on January
31, 1990 when the letter of resignation was received by the Financial Commissioner-cum-Secretary
(Industries) to the Government of Himachal Pradesh who was the Head of the
Department dealing with the Board and to whom it was addressed. Since there is
no requirement in the Act that the resignation of the Chairman of the Bord should
be notified in the Official Gazette as in the case of a member of the Board, it
cannot be said that the resignation of Shri Karam Singh did not take effect
till it was notified in the official gazette vide notification dated February
12, 1990.
The High
Court was, therefore, right in taking the view that Shri Karam Singh had ceased
to hold the office of the Chairman of the Board having resigned from the said
office on January 31, 1990, and the said resignation became effective from that
date itself and that on the date of scrutiny, i.e., February 5, 1990, he was
not holding an office of profit. For that reason, it has been rightly held that
the nomination of Shri Karam Singh was improperly rejected by the Returning
Officer.
Since
we are in agreement with the view of the High Court that the nomination of Shri
Karam Singh had been improperly rejected for the 266 reason that he was not
holding the office of the Chairman of the Board on the date of scrutiny, we do
not consider it necessary to go into the question whether the office of
Chairman of the Board held by Shri Karam Singh had ceased to be an office of
profit after January 8, 1990.
The
appeals, therefore, fail and are, accordingly, dismissed: But in the
circumstances with no orders to costs.
B.V.B.D.
Appeals dismissed.
Back