Retrospective validating legislation can alter the legal basis of earlier seniority rulings if constitutional limits are respected.

Retrospective validating legislation is competent where the Legislature acts within constitutional limits and removes the defect that made the earlier rule or action invalid. A law may operate retrospectively to replace the legal basis of prior judicial decisions, including on seniority, if it does not violate fundamental rights or other constitutional prohibitions. On that principle, the retrospective Haryana enactment altering the seniority scheme was treated as effective to the extent it cured the invalidity and displaced the earlier judicial foundation, requiring reconsideration of seniority under the new law.

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Issues: Whether the Legislature could enact a retrospective law altering the basis of earlier judicial decisions on seniority and validating the impugned service regime.

Analysis: The power to legislate includes the power to give enactments retrospective effect, subject to constitutional limitations, including the prohibition against retrospective penal legislation and infringement of fundamental rights. A validating law is effective only if it removes the defect or ground of invalidity identified by the court. Where a court has interpreted existing rules and decided rights on that basis, the Legislature may, in exercise of its plenary powers, replace those rules by a new law with retrospective operation and thereby alter the legal foundation on which the earlier judgment rested. On that principle, the retrospective Haryana enactment altering the seniority scheme was held to be competent and effective to the extent indicated.

Conclusion: The retrospective validating legislation was upheld in substance, and the earlier High Court decisions were liable to be set aside with directions for reconsideration of seniority under the new law.

Ratio Decidendi: The Legislature may enact retrospective validating legislation or a fresh law with retrospective effect to alter the legal basis of an earlier judgment, so long as it acts within constitutional competence and removes the defect that made the earlier law or action invalid.

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