Supreme Court quashes compulsory retirement under FR 56(j), awards costs and compensation for lost reputation

The Supreme Court set aside the compulsory retirement of S.S. Das, an Indian Trade Service officer who was retired under Fundamental Rule 56(j) on 10 May 2018, a little under five years before superannuation. The Central Administrative Tribunal and the Delhi High Court had upheld the order. Examining the record, the Court found that he had been graded 'Outstanding' in almost every year for two decades and had been promoted to Joint Secretary a few months before the order. The main basis for retiring him was a confidential note by a senior officer relaying unwritten complaints from representatives of the domestic industry, which the Court said was 'not worth the paper it had been written on'.

It held that malice was writ large on the Review Committee's decision and that invoking public interest to brand such an officer as dead wood was a colourable exercise of power. The Court stressed that FR 56(j) must rest on credible and cogent material, not suspicion, and that discretion is not a charter for arbitrariness. As he had already reached superannuation, it ordered all service benefits including notional promotion, a ceremonial farewell, ₹6 lakh in costs and ₹9 lakh as compensation for loss of reputation. The Union may recover these amounts from the officers responsible.