MANJUSHREE PATHAK versus THE ASSAM INDUSTRIAL DEVELOPMENT CORPORATION LTD.

MANJUSHREE PATHAK versus THE ASSAM INDUSTRIAL DEVELOPMENT CORPORATION LTD.

The Managing Director failed to act reasonably or exercise required discretion under Clause 8.1 of the Scheme. Although the Scheme gives management discretion, it is accompanied by a duty to act fairly and reasonably, which was not done. Clause 8.1 does not confer unfettered discretion; discretion is circumscribed...

Source-derived case information.

Parties
Appellant: Manjushree Pathak; Respondent: The Assam Industrial Development Corporation Ltd.
Jurisdiction
India
Judgment Date
31 August 1999
Procedural Posture
Civil Appeal / Appeal From Division Bench of Gauhati High Court
Outcome
Appeal allowed
Legal Topics
Voluntary Retirement, Discretion of Authority, Unfettered Discretion, Article 12 of Constitution, Article 14 of Constitution
Service Law Administrative Law Constitutional Law Voluntary Retirement Discretion of Authority Unfettered Discretion Article 12 of Constitution Article 14 of Constitution

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Parties

Manjushree Pathak

Appellant

The Assam Industrial Development Corporation Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From Division Bench of Gauhati High Court

Legal Issues

  1. 1 Whether the Managing Director of the Corporation was justified in not acting on/applying discretion to the appellant's application for voluntary retirement under the AIDC Voluntary Retirement Scheme, 1992, Clause 8.1
  2. 2 Whether Clause 8.1 confers unfettered discretion on the Corporation to refuse voluntary retirement
  3. 3 Whether the writ petition was pre-mature as three months' notice was not yet over

Ratio Decidendi

The Managing Director failed to act reasonably or exercise required discretion under Clause 8.1 of the Scheme. Although the Scheme gives management discretion, it is accompanied by a duty to act fairly and reasonably, which was not done. Clause 8.1 does not confer unfettered discretion; discretion is circumscribed by the requirement to act judiciously, being an 'authority' under Article 12 of the Constitution. The show cause notice based on political activity was irrelevant, and the Division Bench of the High Court erred in overturning the Single Judge's order.

Court Disposition

Appeal allowed

Orders

  • Judgment and order of the Division Bench of the High Court set aside
  • Order of the learned Single Judge of the High Court restored