Arbitrary premature retirement power without guiding standards violates equality and non-discrimination under the Constitution.

Rule 2(2) of the Liberalised Pension Rules, 1950 conferred an unrestricted power on the Government to retire an employee after 30 years' qualifying service, without any public-interest standard or other guiding principle. The absence of a statutory safeguard meant the power could be exercised arbitrarily against similarly situated employees, unlike the controlled discretion under Fundamental Rule 56(j). Executive instructions and memoranda could not cure that constitutional defect or replace a legislative standard. The rule was therefore unconstitutional and invalid for violating Articles 14 and 16 of the Constitution.

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Issues: Whether Rule 2(2) of the Liberalised Pension Rules, 1950, empowering compulsory retirement after 30 years' qualifying service without requiring any public-interest standard or other guiding principle, was ultra vires Articles 14 and 16 of the Constitution of India.

Analysis: The rule conferred an absolute discretion on the Government to retire a servant after 30 years' qualifying service, although the employee otherwise had a right to continue until superannuation. Unlike Fundamental Rule 56(j), which is controlled by the requirement of public interest, Rule 2(2) contained no guideline or safeguard against arbitrary selection. Executive instructions and memoranda could not cure the constitutional infirmity of a statutory rule, nor could they substitute for the absence of a statutory standard. The rule therefore permitted arbitrary and unequal exercise of power and could operate unevenly against employees similarly situated.

Conclusion: Rule 2(2) of the Liberalised Pension Rules, 1950 was held to be unconstitutional and invalid as being violative of Articles 14 and 16.

Final Conclusion: The appeal failed, and the employee's challenge to the premature retirement order succeeded.

Ratio Decidendi: A statutory retirement power that authorises premature retirement without any guiding principle or public-interest limitation is arbitrary and violates Articles 14 and 16 of the Constitution of India.

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