Supreme Court Overturns Compulsory Retirement of ITS Officer, Awards ₹15 Lakh Compensation

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Supreme Court Overturns Compulsory Retirement of ITS Officer, Awards ₹15 Lakh Compensation

Supreme Court Decision on ITS Officer’s Compulsory Retirement

The Supreme Court recently overturned the compulsory retirement of SS Das, an Indian Trade Service (ITS) officer, who was prematurely retired after being labeled as ‘deadwood’ just two-and-a-half months following his promotion to the Joint Secretary level. In the case SS Das v. Union of India, the bench comprising Justices Dipankar Datta and Sheel Nagu ordered the Central Government to compensate Das with ₹15 lakh—₹9 lakh for reputational damage and ₹6 lakh for legal costs.

Background and Court Ruling

SS Das, who began his service with the Indian Trade Service in 1989, advanced steadily through the ranks, achieving the Senior Administrative Grade at the Joint Secretary level in November 2017. Officially promoted to the grade in February 2018, Das was surprisingly retired on May 10, 2018, under Fundamental Rule 56(j). This decision came nearly five years before his scheduled superannuation and was based on certain entries in his service records and a confidential note alleging unprofessional conduct during an anti-dumping investigation.

The Supreme Court found these allegations unsubstantiated, noting the absence of any formal complaints or evidence. The judgment highlighted that Das consistently received ‘outstanding’ or ‘very good’ performance assessments throughout his career, with no recent misconduct to justify the abrupt change in appraisal.

Contradictory Actions by the Department

The Supreme Court criticized the inconsistent actions of the department, pointing out that promoting Das and then branding him as ‘deadwood’ soon after was contradictory. “Promoting the appellant and then labeling him ‘deadwood’ to justify his removal in the purported public interest are actions that cannot logically coexist,” the Court stated.

The review committee’s reliance on dated and insubstantial complaints from 1998-99 was deemed arbitrary by the Court. Furthermore, a remark from 2014-15 suggesting “room for improvement” was seen as insufficient to question Das’s integrity, especially given his subsequent improved performance scores.

Restoration of Benefits and Directives

The Supreme Court restored all service benefits to Das, including any notional promotions if juniors were elevated during his period out of service. The directive mandates that all benefits and compensations be processed within three months. The Court also granted the Centre the authority to recover the compensation and costs from those responsible for the arbitrary decision.

Senior Advocate Sanjoy Ghosh and a team of advocates represented SS Das, while Additional Solicitor General Anil Kaushik and other counsel represented the Union of India. The judgment reinforces the need for fair and evidence-based evaluations in service law.

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