Limitation for service dismissal challenges runs from disposal of the statutory appeal, as the appellate order becomes operative by merger.

Where a service dismissal is challengeable by a statutory appeal, limitation for a declaratory suit under Article 58 runs from disposal of that appeal, because the cause of action ordinarily accrues only when the prescribed remedy is exhausted. The Court also applied the merger principle and held that the original dismissal order ceases to govern limitation once the appellate authority has decided the matter, since the appellate order becomes the operative order. On that basis, the suit was treated as within limitation and the matter was remitted for decision on merits.

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Issues: (i) Whether, for a suit seeking a declaration against dismissal from service, the right to sue first accrues on the date of the original dismissal order or on the date of the appellate order where a statutory appeal is provided; (ii) whether the original dismissal order merges in the appellate order so that limitation runs from the appellate decision.

Issue (i): Whether, for a suit seeking a declaration against dismissal from service, the right to sue first accrues on the date of the original dismissal order or on the date of the appellate order where a statutory appeal is provided.

Analysis: The claim was governed by Article 58 of the First Schedule to the Limitation Act, 1963, but the decisive question was when the right to sue first accrued. The Court held that where service rules provide an appeal or other statutory remedy against an adverse order, cause of action should ordinarily arise when that remedy is disposed of. Requiring a suit to be filed from the date of the original order, while statutory remedies remain pending, would create hardship and uncertainty. The Court also treated the principle as supported by the statutory scheme in Section 20 of the Administrative Tribunals Act, 1985, which proceeds on exhaustion of remedies under the relevant service rules.

Conclusion: The right to sue first accrued on disposal of the statutory appeal, not on the original dismissal order.

Issue (ii): Whether the original dismissal order merges in the appellate order so that limitation runs from the appellate decision.

Analysis: The Court rejected the distinction drawn between courts and departmental tribunals for the purpose of merger. It held that, on the authority of the prior decisions considered, an order of dismissal made by the original authority merges in the order of the appellate authority when the appeal is dismissed, because the appellate order becomes the operative order. The original order does not stand alone for determining limitation once the statutory appeal has been decided.

Conclusion: The original dismissal order merged in the appellate order and limitation ran from the appellate order.

Final Conclusion: The suit was within limitation, the dismissal of the suit by the courts below was set aside, and the matter was remitted for disposal on merits.

Ratio Decidendi: Where an adverse service order is appealable as of right, limitation for a declaratory suit challenging that order begins when the statutory appellate remedy is finally disposed of, because the appellate order is the operative order by reason of merger.

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