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        Case ID :

        2008 (5) TMI 738 - SC - Indian Laws

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        Article 14 challenge to tenure curtailment invalidated a targeted amendment against an incumbent Director. A proviso inserted into the AIIMS Amendment Act, 2007 was challenged for prematurely terminating the incumbent Director's tenure and limiting ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          Article 14 challenge to tenure curtailment invalidated a targeted amendment against an incumbent Director.

                          A proviso inserted into the AIIMS Amendment Act, 2007 was challenged for prematurely terminating the incumbent Director's tenure and limiting compensation. The Supreme Court treated the office as a tenure post and noted that curtailment of such tenure requires justifiable reasons and compliance with natural justice. It found the proviso targeted the existing Director alone, without any intelligible differentia, and therefore amounted to naked discrimination rather than a valid general policy or mere change in service conditions. The amendment was described as ultra vires and unconstitutional under Article 14, with restoration in office and consequential benefits stated as the resulting relief.




                          Issues: Whether the proviso to Section 11(1A) of the All India Institute of Medical Sciences (Amendment) Act, 2007, which brought about premature termination of the incumbent Director and limited compensation, was violative of Article 14 and liable to be struck down.

                          Analysis: The proviso singled out the then existing Director for immediate cessation of office, while future Directors would continue to be governed by the general tenure provision. The Court treated the appointment as a tenure post and held that curtailment of such tenure could validly occur only for justifiable reasons and in conformity with the principles of natural justice. The impugned proviso did not create a rational class based on any intelligible differentia, but operated as a one-man measure directed at a named incumbent in substance, thereby amounting to naked discrimination. The Court further held that the amendment could not be treated as a valid general policy or a mere alteration of service conditions.

                          Conclusion: The proviso was held to be ultra vires and unconstitutional for violating Article 14, and it was struck down. The writ petition was allowed and the petitioner was entitled to restoration in office and consequential benefits till completion of his tenure.


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                          ActsIncome Tax
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