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Issues: Whether the disciplinary punishment imposed under the amended service rules could be sustained when the departmental proceeding had been initiated under the unamended rules, and whether the punishment amounted to an impermissible double penalty.
Analysis: The disciplinary proceeding was initiated by issue of the charge-sheet before the amendment of Rule 9, and the applicable regime at the inception of proceedings was therefore the unamended rules. A substituted service rule does not operate retrospectively unless the language clearly so provides, and there is a presumption against retrospective operation where it would impair rights or impose a new penal consequence. The amended Rule 9(vii) bifurcated the earlier single penalty of reduction/reversion into distinct forms, including reduction to a lower stage with directions regarding increments and future postponement, and this was not shown to be retrospectively applicable. The punishment actually imposed fell within the amended rule and did not constitute two separate major penalties in the sense suggested by the High Court.
Conclusion: The punishment was legally sustainable, and the objection that it imposed a forbidden double penalty failed.
Final Conclusion: The appeals succeeded, the High Court's interference with the penalty was set aside, and the disciplinary punishment was restored.
Ratio Decidendi: A substituted service-rule penalty provision operates prospectively in the absence of express retrospective intent, and a punishment authorized by the amended rule cannot be invalidated merely by characterising it as a combination of penalties where the rule itself permits that form of punishment.