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Issues: (i) whether the mass termination of selected officers on the basis of alleged corruption in the recruitment process could stand without a proper effort to separate tainted from non-tainted candidates and without a fair, evidence-based examination of the material; (ii) whether the proceedings concerning the judicial officers were vitiated by unfair treatment and apparent bias, warranting fresh consideration.
Issue (i): Whether the mass termination of selected officers on the basis of alleged corruption in the recruitment process could stand without a proper effort to separate tainted from non-tainted candidates and without a fair, evidence-based examination of the material.
Analysis: The constitutional protection against arbitrary State action required the appointing authority to base any cancellation of appointments on sufficient foundational facts showing that the selection process itself was tainted to the extent that the illegality went to the root of the matter. The material relied upon did not establish that it was impossible to distinguish innocent candidates from those alleged to be involved. The records and examination material were available, and the Court found that a fair and thorough scrutiny was feasible. The Court also held that en masse termination, without segregation of tainted and untainted candidates, was impermissible where the allegations had not been conclusively proved across all categories and years. The principle applied was that public interest and probity in governance do not justify treating unequals alike or cancelling every selection merely because some cases may be compromised.
Conclusion: The wholesale termination of the affected officers was not sustainable in law, and the matter required fresh, category-wise scrutiny.
Issue (ii): Whether the proceedings concerning the judicial officers were vitiated by unfair treatment and apparent bias, warranting fresh consideration.
Analysis: The Court found that the judicial officers were not given a fair opportunity to meet the material used against them. Copies of the relevant reports and supporting documents were not made available at the appropriate stage, and the manner in which the High Court proceeded gave rise to a legitimate apprehension of bias, particularly because members associated with the scrutiny process also participated in the adjudication. The Court emphasised that justice must not only be done but must also appear to be done, and that the standard of fairness assumes special importance where the independence and credibility of the judiciary are implicated.
Conclusion: The action against the judicial officers was unsustainable as taken, and their cases also had to be reconsidered afresh.
Final Conclusion: The impugned action was set aside to the extent challenged, and the matters were remitted for fresh consideration through independent scrutiny so that tainted and non-tainted cases could be separated and dealt with on the basis of proper material.
Ratio Decidendi: Where allegations of systemic corruption in recruitment are not conclusively shown to affect every appointment, the State must undertake a fair and evidence-based segregation of tainted and untainted appointees before cancelling appointments en masse; failure to do so renders the action arbitrary and unsustainable.