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Issues: (i) Whether termination of Army officers under the doctrine of pleasure was liable to be struck down for want of material, mala fides, arbitrariness, or camouflage; and (ii) whether the second round of challenge was barred by res judicata, constructive res judicata, merger, and finality.
Issue (i): Whether termination of Army officers under the doctrine of pleasure was liable to be struck down for want of material, mala fides, arbitrariness, or camouflage.
Analysis: Articles 309, 310 and 311 of the Constitution, read with Section 18 of the Army Act, 1950, confer wide pleasure power in respect of defence personnel, subject only to constitutional limitations. Judicial review is available, but its scope is limited; the Court does not sit in appeal over the sufficiency of material when termination is founded on security considerations. On scrutiny of the records and link file, the Court found that there was material suggesting involvement in espionage activities, that the matter had been examined at successive levels, and that the President's decision was based on those materials. The allegation that the order was a mere camouflage or that it suffered from mala fides was not established.
Conclusion: The termination orders were valid and were not vitiated by absence of material, mala fides, arbitrariness, or camouflage. This issue was decided in favour of the appellant.
Issue (ii): Whether the second round of challenge was barred by res judicata, constructive res judicata, merger, and finality.
Analysis: The earlier writ petitions challenging the same termination had already been dismissed, and that dismissal had attained finality up to the Supreme Court. The later proceedings sought to reopen the same controversy by reframing the termination order and attacking connected consequences. The Court held that a concluded controversy cannot be re-agitated collaterally on the plea of later-discovered material, and that the doctrines of res judicata, constructive res judicata, merger, and finality applied to prevent reopening of the matter.
Conclusion: The second round of litigation was barred by finality principles and could not be maintained. This issue was decided in favour of the appellant.
Final Conclusion: The High Court's judgment was set aside and the challenge to the termination of the officers failed. The pleasure-based termination was upheld, and the reopened litigation was held impermissible.
Ratio Decidendi: In respect of defence personnel, termination under Article 310 and Section 18 of the Army Act may be upheld on the basis of material relating to State security, and once the same controversy has attained finality, it cannot be reopened in collateral proceedings by invoking allegations of mala fides or later-discovered material.