121
1967 Present: H. N. G.
Fernando, C. J., and G. P. A. Silva, J.
THE ATTORNEY-GENERAL, Appellant, and
C. KODESWARAN, Respondent
S. C. 408/64-D. C. Colombo, 1026/Z
Public servant-Contract of
employment with the Crown-Claim for arrears of pay- Unenforceability by action
in the Courts Relationship between the Crown and its servants-Inapplicability of
Roman-Dutch Law-Applicability of English Law as altered or modified in
Ceylon-Right of action when a public servant's terms of engagement are laid down
by statute-Treasury Circular issued under compulsion of Official Language Act,
No. 33 of 1956-Is it valid ?-Ceylon (Constitution) Order in Council, 1946 (Cap.
379), ss. 29, 46, 51, 57, 58, 60, 61.
A public servant in Ceylon has no right of redress by action in the Courts for a
breach of any of the covenants and rules governing the salaries and conditions
of service of public officers. This principle is operative except in respect of
terms laid down by statute, and is unaffected, either expressly or by
implication, by the provisions of the Ceylon Constitution.
" The right to sue the Crown in Ceylon upon a contract is not founded on
Roman-Dutch Law. Accordingly, even if it be the case that the ancient laws of
the United Provinces entitled a public officer to sue the Government upon a
contract of employment under the Government, those laws did not, and do not now,
apply to Ceylon. It follows that the question whether the plaintiff in the
present case has a right to sue the Attorney-General must be determined under
the English law as altered or modified by the laws of Ceylon. "
Plaintiff, who was appointed an officer of the General Clerical Service on 1st
November 1952, was promoted on 1st October 1959 to the Executive Clerical Class
on the results of a competitive examination, in which Sinhala or, in the
alternative, Tamil was a compulsory subject. The plaintiff, who is Tamil by
race, chose Tamil as his language subject. According to the Minutes applicable,
the salary scales, cadre, and conditions of service were liable to alteration
from time to time. On 4th November 1961, a new Treasury Circular No. 560
provided, on pain of suspension of increment falling due, that officers of the
category to which the plaintiff belonged must pass a proficiency test in
Sinhala. The plaintiff did not present himself for the requisite examination,
and the suspension of the increment which fell due on 1st April 1962 was
ordered. He sought in the present action a declaration that the Treasury
Circular No. 560 of 4th November 1961 was unreasonable and or illegal and not
binding on him, and that he was entitled to the payment of the increment. It was
contended that the Circular was issued under the compulsion of the Official
Language Act No. 33 of 1956 and that, inasmuch as the latter Act was ultra vires
because it transgressed the prohibitions against discrimination contained in
Section 29 of the Constitution, the Circular too was invalid.
Held, that the provisions of the covenants and rules governing the public
service are not enforceable by action. This principle must apply to all such
provisions, including those which prescribe rates of pay and increments, and it
denied to the present plaintiff a right to sue for the increment alleged to be
due to him under the Minutes. It was not necessary to consider the submissions
as to the invalidity of the Official Language Act, because the plaintiff was not
entitled to a remedy in the Courts for any alleged default in the payment to him
of the increment, even, if the relevant minutes and regulations provided for
such a payment.
122
APPEAL
from a judgment of the District Court,
Colombo.
Walter Jayawardena, Q.C., Acting Attorney-General, with H. Deheragoda, Senior
Crown Counsel, and H. L. de, Silva, Crown Counsel, for the
Defendant-Appellant.
C. Ranganathan, Q.C., with S. Sharvananda, S.C. Crossette-Thambiah, D. S.
Wijewardene, N. Kasirajah, K. Thevarajah, M. Underwood and L. A. T. Williams,
for the Plaintiff-Respondent.
Cur. adv. vult.
August 30, 1967. H. N. G.
FERNANDO, C.J.-
The plaintiff was appointed an Officer of the General Clerical Class of the
General Clerical Service on 1st November 1952, and on 1st October 1959 he was
promoted to Grade II of the Executive Clerical Class of the General Clerical
Service on a salary scale of Rs. 1,620 to Rs. 3,780 per annum with annual
increments of Rs. 120. An increment of Rs. 10 per month fell due to the
plaintiff on 1st April 1962, but on 28th April 1962 he was informed by a letter
P2 from the Government Agent, Kegalle (at that time the Head of the Department
in which the plaintiff was serving), that the increment had been suspended under
the provisions of a Treasury Circular No. 560 of 4th December 1961. The
plaintiff sought in this action a declaration that the Circular is unreasonable
and or illegal and not binding on the plaintiff, and that the plaintiff is
entitled to payment of the increment which fell due on 1st April 1962. This
appeal is from the judgment of the learned District Judge granting such a
declaration.
At the time when the plaintiff was promoted to the Executive Clerical Class, the
Minutes applicable in relation to recruitment, conditions of service, and salary
scales were those published in the Gazette of October 1, 1955. Paragraph 5 of
the relevant Minute provided that appointments to the Executive Clerical Class
will be made from among members of the General Clerical Class (to which the
plaintiff belonged until 1959) on the results of a competitive examination. The
regulations and syllabus for the examination were set out in Appendix D to the
Minute which prescribed three subjects of examination, i.e., (1) Accounts, (2)
Regulations, procedure and office system, and (3) Sinhala or Tamil. The
plaintiff, who is Tamil by race, chose Tamil as his language subject for the
examination.
Paragraph 7 of the Minute provided that Officers in Grade II of the Executive
Clerical Class must pass an examination in National Languages prescribed in
Appendix C before they proceed beyond the Efficiency Bar at the stage of Rs.
3,180. Appendix C required clerks of Sinhala, Tamil or Moor parentage to pass in
one language. Thus under Appendix C the plaintiff could have chosen Tamil as his
language subject for this examination as well.
123
I must note here that the Minute
clearly states that the salary scales, cadre, and conditions of service are
liable to alteration from time to time.
On 4th December 1961 a new Treasury Circular No. 560 provided that Officers of
the category to which the plaintiff belonged must pass a proficiency test in
Sinhala. According to this Circular a Tamil officer (as the plaintiff is) is
required to pass a test in Sinhala at 3rd standard level within one year from
1st January 1961, a test at 5th standard level within two years, and at J. S. C.
standard within three year3.
The Circular provided for suspension of an increment falling due after February
17, 1962 in a case of an officer failing the test. The plaintiff did not present
himself for the requisite examination, and the suspension of his increment which
fell due on April 1, 1962 was ordered in pursuance of the Circular on the ground
that he had not passed the first of the language tests prescribed in the
Circular.
One of the grounds on which the plaintiff's action was resisted by the
Attorney-General is that a public servant in Ceylon has no right to sue the
Crown for the recovery of wages claimed to be due for service under the Crown.
This defence, which was rejected by the learned trial Judge, raises questions of
great importance and difficulty, and the Court is much indebted to Counsel for
the full and able arguments presented at the hearing of this appeal.
The first question to be decided is whether the relationship between the Crown
and its servants in Ceylon is regulated by the Roman-Dutch Law, or else by the
English Law as altered or modified in its application in this country. The
contention that the Roman Dutch Law applies is supported by two early decisions
of this Court which are reported in Ramanathan's Reports 1863-68.
The earlier of the two decisions (Jansz v. Tranchell 1[ Ramanathan's Reports
(1863-68) p. 160.]) was in a case in which the question arose whether the salary
of a public servant could be seized in execution of a decree against him. The
Court there stated that it is certain, and that the Queen's Advocate admitted,
that the salary of a public officer, when his service has been properly
performed, is due to him as a debt. The Court proceeded to consider the Roman
Dutch Law regarding the liability to seizure of the salary of a public servant,
and held that the salary was seizable, but only if other assets of the debtor
were not available to satisfy the decree, and if a Court in its discretion
regarded the seizure as not being contrary to the public interest in the
circumstances of a particular case. The order ultimately made was that the
salary of the public servant concerned was not, in the circumstances, liable to
seizure.
Thus the Roman-Dutch Law was held applicable to the question whether the salary
is seizable. But it is not clear from the Judgment on what basis the Court
thought it certain that the salary is a debt due
124
to a public servant. There is no
statement that this is a principle of Roman-Dutch Law or else of English Law.
Nevertheless, it is a fair implication that the Crown did not in this case
contend that no action lies for the recovery of a public servant's salary.
The later decision in Fraser's case 1[Ram. p. 316.] was in a suit against the
Queen's Advocate, for the recovery of balance salary due to the plaintiff as
Postmaster of Galle and as a packet agent, on the ground that he had been
wrongfully dismissed from those offices. The first of these offices was held
under the Ceylon Government, and the second under the Imperial (British)
Government. The action was dismissed by the Supreme Court on the ground that the
plaintiff held his offices during pleasure, and that he had no right of action
at all, so far as the (Ceylon) Post mastership was concerned, as to anything
that happened after the date of his dismissal, because it had been shown that he
had in fact been paid his salary up to that date.
Nevertheless, in considering the plaintiff's claim for his salary as the holder
of an office under the Imperial Government, the Court drew a distinction between
the respective rights of such an officer and of one employed under the Ceylon
Government. The Court was of opinion that whereas an action would not lie at all
in the former case, an action for earned salary would lie against the Queen's
Advocate in the latter case. The entire relevant passage in the Judgment has to
be cited here :- " We humbly consider that Her Majesty's predecessors and Her
Majesty have been graciously pleased to lay aside, as to this island, part of
the prerogative of the Crown as to immunity from being sued. By proclamation of
the 23rd September 1799, it was amongst other things published and declared that
the administration of ' justice and police in the settlements and territories in
the Island of Ceylon with their dependencies, shall be henceforth and during Her
Majesty's pleasure exercised by all courts of jurisdiction, civil and criminal,
magistrates and ministerial officers, according to the laws and institutions
that subsisted under the ancient Government of the United Provinces, subject to
such deviations and alterations by any of the respective powers and authorities
hereinbefore mentioned, and to such other deviations and alterations as shall by
these present or by any future proclamation and in pursuance of the authorities
confided to us, deem it proper and beneficial for the purposes of justice, to
ordain and publish, or which shall or may hereafter be by lawful authority
ordained and published.'
" Afterwards, the Ordinance No. 5 of 1835, (which was allowed and confirmed by
Her Majesty) repealed parts of the said proclamation, but expressly reserved and
retained so much of it as doth publish, and declare that ' the administration of
justice and police within the settlements then under the British dominion and
known by the designation of the maritime provinces should be exercised by all
the courts of judicature, civil and criminal, according to the laws and
institutions that subsisted under the ancient Government of the United
Provinces.'
125
" The Ordinance of 1835, itself
expressly re-enacts this, and it uses the following words, ' which laws and
institutions it is hereby declared are and shall henceforth continue to be
binding and administered through the said maritime provinces and then*
dependencies, subject nevertheless to such deviations and alterations as have
been or shall hereafter by lawful authority be ordained.'
" We humbly consider that by these declarations of the royal will, Her Majesty's
subjects in this island, who had or might have any money due to them from the
local Government for wages, for salary, for work, for materials, in short for
anything due on an obligation arising out of contract, were permitted to retain
the old right given by Roman Dutch Law to sue the advocate of the fiscal, now
styled the Queen's Advocate, for recovery of their money. And if the present
plaintiff could have shown that any money was due to him under his colonial
appointment as Galle post-master, he might have maintained this action. He might
have done so in respect of salary due for any period during which he actually
served, and also in respect of the further period for which he, still holding
the appointment de jure, was ready and willing to serve, but was prevented from
serving by the wrongful act of his employer."
This statement of the law of Ceylon cannot be regarded as being merely obiter.
It is clear that, if any salary earned by the plaintiff prior to the date of his
dismissal had not in fact been paid to the plaintiff, the Court would have given
judgment for the plaintiff for the unpaid amount; this on the basis that a right
to sue for salary had existed under the Roman-Dutch Law.
The general question of the right of the subject in Ceylon to sue upon a
contract with the Crown was considered in the case of Jayawardena v. Queen's
Advocate 1[ 4 S.C. Circular 77. ]. The Court there stated that " the right to
sue the Crown in the person of the Queen's Advocate for claims arising ex
contractu has not only been upheld by the Courts of the Colony, but has been
recognised by the Legislature in several enactments ". Reference was thereafter
made to Ordinances No. 9 of 1852, No. 7 of 1856 and No. 11 of 1868, all of which
contemplated the possibility of suits upon contract by private parties against
the Queen's Advocate. There followed the following observations :-
"Under these circumstances, we think it too late, at this day, to contest in
this Court the validity of this practice. We are bound by the previous decisions
of this Court, particularly by the considered decision of the Collective Court
in the case of Fraser v. The Queen's Advocate. To hold at this date, for the
first time, that a practice, which has so long been sanctioned by the Courts and
acquiesced in by the Government, is bad in law, and cannot be sustained, would
necessarily create widespread confusion and inconvenience, practically amounting
in many cases to injustice. If the precedents and decisions upon which this
Court acts are wrong, it must be left to the Court of appeal to set us right.
126
It was urged by the Queen's
Advocate that the practice of suing the Crown is an attempt to impugn the royal
prerogative, by virtue whereof no suit or action can be brought against the
sovereign; and such, no doubt, it would be if the prerogative has not been
waived in this respect. This Court in Fraser's case humbly expressed an opinion
that it had been so waived, and we humbly venture to share that opinion. It
should be observed that the question is, after all, one purely of procedure. If
a judgment be obtained against the Queen's Advocate, no execution can issue
either against the Queen's Advocate personally or against the Crown. See
Marshall, p. 75 ; Thomson's Institutes, p. 12. A judgment in an action or suit
ex contractu against the Queen's Advocate gives little, if anything, more than a
successful petition of right would do in England. It is merely, as it appears to
us, a mode of procedure by which a subject is able to prefer and substantiate
his claim against the Crown. Compliance with the claim when substantiated must
still be, as we take it, a matter of grace. Petitions of right are now in
England prosecuted as ordinary actions ; and as a matter of convenience, we see
no objection to parties preferring their claims against the Crown here in the
form of a suit against the Queen's Advocate."
The learned Acting Attorney-General in his argument before us suggested that
Fraser's case, while rightly deciding that the Crown could be sued upon a
contract in Ceylon, was wrong in basing the decision on the Roman-Dutch Law. He
further argued on the authority in the concluding passage cited above from
Jayawardena's case that the waiver of immunity from suit by the Crown in Ceylon
consisted merely of the acknowledgment of a right to sue the Crown in lieu of
the right under English Law to proceed by way of a petition of right. His
argument, in my opinion, gains support from the observation in Jayawardena's
case that a suit ex contractu against the Queen's Advocate appears to be merely
a mode of procedure by which the subject is able to prefer his claim, and is
thus the equivalent of the English Petition of Right.
Shortly after Jayawardena's case, there was decided in the Privy Council the
case of Siman Appu v. Queen's Advocate 1[ 9 App. Cases p. 571.], in which it was
held that a suit upon a contract can be instituted in Ceylon against the Queen's
Advocate as representing the Crown. Their Lordships considered the question
whether the Roman Dutch Law entitled a subject to sue an Officer of Government
on behalf of the Government. The note of the argument of Counsel in that appeal
shows that Fraser's case (as reported in Creasy's Reports p. 10) and
Jayawardena's case (incorrectly cited as Fernandez v. The Queen's Advocate) were
considered in the discussion of this matter. But their Lordships concluded their
consideration of the question with these observations :-
" There certainly seems no more antecedent reason why the Counts of Holland
should be exempted from suit through their officers than
127
existed for the exemption of the
King of Scotland. And though it is very likely that whilst great potentates,
like the Dukes of Burgundy and the Kings of Spain, were Counts of Holland, it
would not be very safe to sue them, yet when the United Provinces became
independent, suitors might find themselves more favourably placed. "
" But whatever speculations may be made upon these points their Lordships cannot
advise Her Majesty that such was the Roman Dutch Law, unless it is shewn to them
that it was so. And neither the researches of counsel nor their own have enabled
their Lordships to attain any certainty on the subject."
It appears to me that the true ratio decidendi of Siman Appu's case can be
deduced from the following passages of the judgment:-
" That a very extensive practice of suing the Crown has sprung up is certain. In
his judgment in the case of Fernando, which was decided immediately before the
present case came under review, Cayley, C. J., says, ' The practice has been
recognised in many hundreds of decisions, and long acquiesced in by the Crown,
and so far as I am aware, has not till now been called in question.' It was
recognised by the judgment of the Court in Fraser's case, decided in the year
1868. "
" In Mr. Justice Thompson's Institutes of the Laws of Ceylon, after referring to
the English petition of right, he says that, the Ceylon Government having no
Chancellor, a suit against the Government has been permitted, and the Queen's
Advocate is the public officer who is sued on behalf of the Crown. He then
points out that, except in land cases, this action gives little more than is
given by the petition of right, for no execution can issue against the Crown or
against the Queen's Advocate. "
"It is then certain that prior to 1868 there was such an established practice of
suing the Crown that the legislature took it for granted and regulated it. The
same state of things must have existed prior to 1856, for the Ordinance of 1868
is only a re-enactment of an earlier Ordinance of 1856. Earlier Ordinances still
have been referred to, but their Lordships do not discuss them, because, though
they speak of suits in which the Crown is defendant, and though it is the
opinion of the Supreme Court, and is probable, that they refer to claims ex
contractu, it is not clear that they do so."
" Whatever may be the exact origin of the practice of suing the Crown, it was
doubtless established to avoid such glaring injustice as would result from the
entire inability of the subject to establish his claims. And finding that the
legislature recognised and made provision for such suits at least twenty-eight
years ago, their Lordships hold that they are now incorporated into the law of
the land."
128
The reference in the first of the
passages just cited to the judgment in Fraser's case shows that their Lordships
relied on that case, not for the proposition that the Proclamation of 1799 (now
chapter 12 of the Revised Edition 1956) had waived the Crown's immunity from
suits upon contract, but instead only for the fact that this Court had often
recognised the practice of suing the Crown. The judgment of Cayley, C.J., in
Jayawardena's case (incorrectly referred to as that of Fernando) was relied on
in the same way.
There is accordingly the highest judicial authority, in the decision of Siman
Appu's case in 1884, to the effect that (as stated in the head note) : " There
is no authority for saying that the Roman Dutch law of Holland, which was in
force in Ceylon at the date of its conquest by the British, and has not since
been abrogated, empowered the subject to sue the Government. Instead the right
to sue exists because there had been a very extensive practice of suing the
Crown which was recognised by the Legislature and such suits are now
incorporated into the law of the land."
The learned Acting Attorney-General has suggested certain other considerations
which tend to support the view that the Proclamation of 1799 was not intended to
make the Roman-Dutch Law applicable to the relationship between the Crown and
public servants in Ceylon. The first is that the Proclamation, in referring to
the Civil and Criminal Jurisdiction of the Courts, was not intended to cover
matters which are the subject of Constitutional or public law, and that the
relationship between the Crown and its servants is such a matter. I do not find
it necessary to decide the point thus raised, and am content to observe that an
argument which invokes the Proclamation must logically include the proposition
that even the right of dismissal at pleasure existed in Ceylon by virtue of
Roman-Dutch Law, and not as a principle of English Law. But I see much substance
in the other suggestion that, in regard to so fundamental a matter as the
relationship between the Crown and its servants (many of whom must at the time
have been British by birth and race), the Proclamation could not have intended
that such a matter would be regulated otherwise than by the the law applicable
in Britain and in other territories of the British Crown. The explanation given
in Thompson's Institutes that a suit against the Government had been permitted
of necessity and in lieu of the English petition of right, because the Ceylon
Government had no Chancellor, is one which is in all the circumstances most
acceptable.
When this Court in Fraser's case assumed that the wages of a public servant in
Ceylon, when earned, are a debt due to him, the Court in so doing did not
consider the question whether this principle was a matter of Roman-Dutch Law or
else of English law. But it is clear from the judgment that the Court did
recognize that the power to appoint public officers in Ceylon was a power
derived from, and exercised on behalf of, the Crown; the judgment in this
connection refers to the powers of appointment granted to the Governor by his
letter of appointment
129
(presumably Letters Patent) and
to Colonial Rules and Regulations (p. 321 Ram. 1863.68). The grant of such
powers by the British Sovereign must fairly be presumed to have been an exercise
of the Royal Prerogative under the law of England, and not to any authority of a
Sovereign under Roman-Dutch law; if this were otherwise, the Court in Fraser's
case could not have held that the power to dismiss a public officer at pleasure
existed in Ceylon without first deciding that such a power existed in
Roman-Dutch law. The efficacy or validity of appointments made by the executive
in Ceylon was therefore referable to the law of England ; and it follows in my
opinion that the nature and legal effect of the relationship constituted by such
appointments had also to be determined by reference to English law.
For these reasons I would hold, applying the judgment of their Lordships of
1884, that the right to sue the Crown in Ceylon upon a contract is not founded
on the Roman-Dutch Law. Accordingly, even if it be the case that the ancient
laws of the United Provinces entitled a public officer to sue the Government
upon a contract of employment under the Government, those laws did not, and do
not now, apply in Ceylon. It follows that the question whether the plaintiff in
the present case has a right to sue the Attorney-General must be determined
under the English law as altered or modified by the laws of Ceylon.
The question whether under English law a Civil Servant has the right to sue for
earned wages, whether by way of a petition of right or otherwise, has been
referred to by Judges and text writers as one of much doubt and difficulty. But
the case of High Commissioner for India v. Lall1[ (1948) A. I. R. (Privy
Council), p. 121.] is at the least a definite pronouncement on the law on this
question as applicable in British India. In that case Mr. Lall, who had been a
member of the Indian Civil Service, was dismissed from service by the
appropriate authority, and he claimed in the action a declaration that his
removal was ultra vires, that he was still a member of the Indian Civil Service,
and that as such he was entitled to all rights secured to him by the covenant
rules and regulations issued from time to time by the appropriate authorities.
After considering the provisions of s. 240 of the Government of India Act 1935,
their Lordships held that there had been a breach of a provision of s. 240 which
required that a civil servant shall not be dismissed unless he has been given a
reasonable opportunity of showing cause against the action proposed to be taken
in regard to him and that the purported removal from office of Mr. Lall was void
and inoperative. They accordingly granted a declaration to that effect and to
the effect that Mr. Lall remained a member of the Indian Civil Service at the
date of the institution of his action.
Their Lordships thereafter considered a submission for Mr. Lall that he was
entitled to recover in the action his arrears of pay from the date of the
purported order of dismissal up to the date of his action. They said that" it is
unnecessary to cite authority to establish that no action
130
in tort can lie against the Crown
and therefore any right of action must either be based on contract or conferred
by Statute ". Reliance was then placed on a judgment of Lord Blackburn in the
Scottish case of Mulvenna v. The Admiralty1[ (1926) S. C. 842.] in which the
matter had been discussed as follows :-
" These authorities deal only with the power of the Crown to dismiss a public
servant, but they appear to me to establish conclusively certain important
points. The first is that the terms of service of a public servant are subject
to certain qualifications dictated by public policy, no matter to what service
the servant may belong, whether it be naval, military or civil, and no matter
what position he holds in the service, whether exalted or humble. It is enough
that the servant is a public servant, and that public policy, no matter on what
ground it is based, demands the qualification. The next is that these
qualifications are to be implied in the engagement of a public servant, no
matter whether they have been referred to in the engagement or not. If these
conclusions are justified by the authorities to which I have referred, then it
would seem to follow that the rule based on public policy which has been
enforced against military servants of the Crown, and which prevents such
servants suing the Crown for their pay on the assumption that their only claim
is on the bounty of the Crown and not for a contractual debt, must equally apply
to every public servant (see (1920) 3 K. B. 663, 25 R. 112 and other cases there
referred to). It also follows that this qualification must be read, as an
implied condition, into every contract between the Crown and a public servant,
with the effect that, in terms of their contract, they have no right to their
remuneration which can be enforced in a Civil Court of Justice, and that their
only remedy under their contract lies in an appeal of an official or political
kind."
Mulvenna's case itself concerned the question whether the salary of a civil
employee of the Admiralty could be arrested in the hands of the Commissioners of
the Admiralty at the instance of a person holding a decree against the employee
for the payment of a sum of money. Although the Court, including Lord Blackburn,
did refer to earlier decisions in which there had arisen the particular question
whether the salary of a civil servant is attachable, it seems clear that Lord
Blackburn's own conclusion was based firmly on the primary proposition that a
civil servant has no right to remuneration which can be enforced in a civil
Court. After the passage I have already cited, there occur in the judgment the
following observations :-
" It further appears to me that, if this conception of the effect of public
policy on the contract itself had been developed earlier, it would have led to
the same conclusions in the numerous cases to which the Lord Ordinary has
referred as were reached on different
131
and, in some cases, on somewhat
unsatisfying grounds. It would also have avoided the necessity for several
statutory provisions applicable to the pay of particular services which must now
be regarded as merely declaratory of the common law."
Their Lordships in Lall's case referred to the provisions applicable to public
servants in India prior to the Government of India Act 1935 and to the relevant
provisions of the Government of India Act 1919. Section 96B of that Act had
declared that a civil servant " holds office during His Majesty's pleasure, but
no person in that service may be dismissed by any authority subordinate to that
by which he was appointed". Under sub-section (2) of s. 96B the Secretary of
State for India in Council had been empowered to make rules for regulating inter
alia the conditions of service, pay and allowances, and discipline and conduct,
of the Civil Services of India. One such rule had provided certain conditions
precedent to the dismissal of a civil servant such as : that he must be afforded
an adequate opportunity of defending himself, that charges should be framed and
communicated to the person charged, that a written defence must be entertained
if made, and that an enquiry must be held if the person charged so desires.
These provisions were the subject of consideration in the Privy Council in 1938.
In the case of Rangachari 1[(1937) A. I. R. (P.C.) 27. ] their Lordships held
that the provision in s. 96B (1) itself which prohibited the dismissal of an
officer by any authority subordinate in rank to the authority that appointed him
was peremptory, and that a dismissal purporting to be made in violation of that
provision was void and inoperative. But in Venkata Rao's case 2[Idem p. 31.]
decided on the same day, their Lordships rejected the contention that a
dismissal in breach of the rules made under s. 96B could give rise to a right of
action by the dismissed officer. Reference was made to an observation in Gould's
case 3[ (1896) A. C. 575.] :-
" The argument for a limited and special kind of employment during pleasure, but
with the added contractual terms that the rules are to be observed is too
artificial and far-reaching. "
Their Lordships regarded " the terms of the section (96B (2) ) as containing a
statutory and solemn assurance that the tenure of office though at pleasure will
not be subject to capricious or arbitrary action but will be regulated by rule
Their Lordships are unable as a matter of law to hold that redress is obtainable
from the Courts by action. To give redress is the responsibility of the
Executive Government. " Accepting these propositions, the Privy Council decided
in Lall's case that a public officer had no right to claim arrears of pay under
his covenant, or in other words that he had no contractual right enforceable by
action.
132
I must note at this stage that at
least until the coming into effect of the Ceylon State Council Order in Council,
1931, and perhaps even until the coming into operation of the Ceylon
Constitution Order in Council 1946, the position of public servants in Ceylon
was regulated in a manner similar to that which had obtained in India under the
Government of India Act, 1919. Their Lordships in Venkata Rao's case referred to
the fact that s. 96B, in sub-section (5), reaffirmed the supreme authority of
the Secretary of State over the Civil Service, and relied on this fact for the
opinion that rules made under that section did not confer rights enforceable by
action in the Courts. A similar supreme authority was formerly vested in the
Secretary of State for the Colonies over the public services of Ceylon. For much
the greater period of British rule in Ceylon, the right to dismiss at pleasure
was implied and recognised in the case of the public service of Ceylon, and the
pay and conditions of service were regulated by, or under delegated authority
from, the Secretary of State. Such rules and regulations, as also the Pension
Minute applicable to the public service, were not statutory enactments, nor
(unlike the Indian Rules after 1919) were they even made under empowering
statutory provisions.
It is clear to me for these reasons that prior to the operation of the Ceylon
Constitution Order in Council, 1946, the nature of the rights of a public
servant in Ceylon was similar to that of a public servant of India, and that
upon the reasoning in the Indian decisions cited above, a public servant in
Ceylon had no right of redress by action in the Courts for a breach of rules and
regulations prescribing the salaries and conditions of service of public
officers. It would seem to follow therefore that the grounds of the decision in
Lall's case in particular, holding that a public servant had no right to sue for
his wages, were applicable also in the case of members of the public services of
Ceylon.
Counsel for the plaintiff in the present appeal referred to several decisions of
English and Australian Courts in support of his argument that the Scottish case
of Mulvenna was wrongly decided, and that accordingly the decision of the Privy
Council in Lall's case should not be followed. Certain of the English and
Australian decisions, it was urged, did acknowledge the right of a public
servant to sue for his earned wages. I must refer even briefly to some of these
decisions.
In the case of Carey v. The Commonwealth1[30 Comm. L. R. 132. ] the Court did
hold that a public servant did have the right to sue for earned remuneration.
But the only precedent relied upon by the Judge in Carey's case in support of
this alleged right was the decision in Williams v. Howarth2[(1905) A. C. 551].
The report of this latter case, however, shows that the plea was never taken in
argument that the Crown could not be sued for wages. The plea if taken would
undoubtedly have succeeded, for the suit was one for wages claimed by a member
of the Armed Forces of Australia who had served with the British Imperial Forces
in South Africa. The only question
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decided was whether payments made
by the Imperial Government should be taken into account in determining whether
the plaintiff had received the wages payable to him by the Australian
Government. The case should not, I think with respect, have been regarded as
authority for the proposition that a military or civil servant of the Crown had
a right to sue for earned wages.
The case of Lucy v. The Commonwealth1[33 Comm. L. R. 29.] was much relied on by
Counsel for the plaintiff in support of the alleged right to sue the Crown on a
contract of employment. The plaintiff in that case had until March 1901 held
office in the Postal Department of South Australia. At that stage the Department
was taken over by the Commonwealth and the plaintiff was then transferred to the
Commonwealth Public Service. In 1919 the plaintiff was notified that he would be
retired from the Commonwealth Public Service upon attaining the age of 65 years,
and in May 1919 he was actually so retired. The plaintiff claimed that under a
South Australian Act of 1874 he had acquired a right to retain office until
death or removal in terms of that Act and that he had been wrongfully retired at
the age of 65 years. Section 60 of the Commonwealth Public Service Act provided
that an officer transferred to that Service will retain all the existing and
accruing rights which he had previously as a member of the South Australian
Service, and it had been held in an earlier case that this Section (despite
inconsistent provision in section 74 of the Act) preserved to such an officer
the right to remain in service after attaining the age of 65 years.
In these circumstances the plaintiff claimed (a) a declaration that he had been
wrongfully removed from service on 11th March 1919, (b) a declaration that he
was entitled to retain office until his death or until bis office was determined
in accordance with the South Australian Act of 1874, and (c) damages for
wrongful removal or dismissal. A case stated for the opinion of the High Court,
after setting out the relevant facts, submitted the question " whether the
damages to which the plaintiff is entitled should be measured and ascertained by
any one or more of the following considerations ", and thereafter invited the
Court to determine whether or not certain specified matters should be taken into
account in the assessment of damages.
Despite references in the judgments to the contract which the plaintiff had as a
member of the Public Service, it seems to me that the question whether a public
servant had a right to sue the Crown for his wages was not in fact disputed in
this case, for, as I have just stated, the Court was only invited to lay down
the measure of damages as for a dismissal from service which was admitted to be
unlawful. Indeed the note of the argument of the Counsel for the plaintiff
contains this passage :-" the dismissal of the plaintiff was a breach of his
statutory right and not a breach of contract; whichever it is, if the
plaintiff's remedy is damages, the
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measure is the same ". I must
refer however to an observation in the judgment of Higgims J. that " this
position would be beyond question in a case of ordinary contract between
employer and employee ; and in my opinion the relation between the Commonwealth
and the officer is a relation of contract (cf. Williams v. Howarth) ". Higgims
J. was the same Judge who had decided the earlier case of Carey, and I have
already stated my opinion that he had wrongly relied on the decision in Williams
v. Howarth.
It seems to me that Lucy's case is not substantially different in principle from
that of Rangachari decided by the Privy Council in 1937. In each case the
plaintiff had a right of action because he had been dismissed in breach of
statutory provision, and not because he was entitled to contractual rights.
The nature of service under the Crown in Canada was considered in the judgment
of the Privy Council in the case of Reilly v. the King 1[ (1934) A. C. 176.].
The suppliant had in 1928 been appointed a member of the Federal Pension Appeal
Board for a period of five years. In May 1930 the pension statutes were amended
and in consequence the Pension Appeal Board was abolished, and a new Tribunal
established in its place. Mr. Reilly was not appointed to the new Tribunal, and
in October 1930 he was requested to vacate the premises which he had occupied in
pursuance of his office. The following observations of Lord Atkin are important
for present purposes :-
" Both Courts in Canada have decided that by reason of the statutory abolition
of the office Mr. Reilly was not entitled to any remedy, but apparently on
different grounds. Maclean J. concluded that the relation between the holder of
a public office and the Crown was not contractual. There never had been a
contract: and the foundation of the petition failed. Orde J.'s judgment in the
Supreme Court seems to admit that the relation might be at any rate partly
contractual; but he holds that any such contract must be subject to the
necessary term that the Crown could dismiss at pleasure. If so, there could have
been no breach.
Their Lordships are not prepared to accede to this view of the contract, if
contract there be. If the terms of the appointment definitely prescribe a term
and expressly provide for a power to determine ' for cause ' it appears
necessarily to follow that any implication of a power to dismiss at pleasure is
excluded. This appears to follow from the reasoning of the Board in Gould v.
Stuart. That was not the case of a public office, but in this connection the
distinction between an office and other service is immaterial. The contrary view
to that here expressed would defeat the security given to numerous servants of
the Crown in judicial and quasi-judicial and other offices throughout the
Empire, where one of the terms of their appointment has been expressed to be
dismissal for cause.
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In this particular case their
Lordships do not find it necessary to express a final opinion on the theory
accepted in the Exchequer Court that the relations between the Crown and the
holder of a public office are in no degree constituted by contract. They content
themselves with remarking that in some offices at least it is difficult to
negative some contractual relations, whether it be as to salary or terms of
employment, on the one hand, and duty to serve faithfully and with reasonable
care and skill on the other. And in this connection it will be important to bear
in mind that a power to determine a contract at will is not inconsistent with
the existence of a contract until so determined."
The dicta of Lord Atkin in Reilly's case received careful examination by the
Supreme Court of South Africa in the case of Sachs v. Donges1[ (1950) (2) S. A.
L. R. 265.] in which it was sought to equate the case of the revocation of a
passport to the Crown's right to terminate at pleasure the employment of a
public officer. Referring to Lord Atkin's statement that " if the terms of the
appointment definitely prescribe a term, and expressly provide for power to
determine for ' cause ', it appears necessarily to follow that any implication
of a power to dismiss at pleasure is excluded ", two Judges of the South African
Court thought it clear that Lord Atkin only contemplated cases of appointments
under a statutory power, where the statute itself by implication excluded the
prerogative right of dismissal at pleasure. Van den Heever, J. A. said in this
connection :-" Once it is established that an act is the exercise of
discretionary executive power not regulated by statute cadit quaestio, the
subject's redress, if any, is political, not judicial." Centlivres J. expressed
his disagreement with the construction placed on Lord Atkin's dictum in the case
of Robertson v. Minister of Pensions 2[(1948) 2 A. E. R. 767.] where Lord
Denning had stated that " in regard to contracts of service, the Crown is bound
by its express promises as much as any subject ". Let me with great respect
state my own reasons for disagreeing with that construction.
In the passage cited above, Lord Atkin first referred to a judgment in which
Orde J. in the Canadian Supreme Court, seemed " to admit that the relation might
be at any rate partly contractual; but he holds that any such contract must be
subject to the necessary term that the Crown could dismiss at pleasure ". Lord
Atkin then expressed inability to accede to this view of the contract, if
contract there be. His subsequent statement, that, in certain cases, " any
implication of a power to dismiss at pleasure is excluded ", is explained by his
reference to the cases of " numerous servants of the Crown in judicial and
quasi-judicial and other offices throughout the Empire, where one of the terms
of their appointment has been expressed to be dismissal for cause ". This
reference read together with the reference to Gould v. Stuart 3[ (1896) A. C.
575.], indicate that Lord Atkin had in mind only cases in which the power to
dismiss at pleasure
136
becomes excluded by contrary
provision in a statutory power of appointment. Had he intended to say that the
power could be excluded by contract, he would surely not have failed to refer to
de Dohse v. Reg1[(1897) 66 L. J. Q. B. 422.] and to Dunn v. Macdonald 2[ (1897)
66 L. J. Q. B. 423.], both cases in which the contrary opinion had been strongly
expressed.
In Gould v. Stuart itself, Lord Hobhouse, in delivering the judgment of the
Privy Council observed that " servants of the Crown hold their offices during
pleasure ; not by virtue of any special prerogative of the Crown, but because
such are the terms of their engagement, as is well understood throughout the
public service ". But the case itself concerned an office the tenure of which
was regulated by the Civil Service Act of New South Wales, the provisions of
which were inconsistent with the power to dismiss at pleasure. The power of
dismissal being thus excluded by statute, it was not material to decide the
precise base on which the power rested. Moreover, it is not easy to understand
why an arbitrary power of dismissal is to be implied in a contract of employment
except upon a supposition that such a power exists aliunde. And if such a power
does exist, it is only the prerogative to which the power is fairly referable.
With much respect, therefore, I doubt whether the dictum of Lord Hobhouse can
now be regarded as authority for the proposition that the terms of the
engagement of servants of the Crown impose on the Crown contractual obligations,
the breach of which may properly be the subject of dispute in Petitions of Right
or (in Ceylon) in suits against the Attorney-General.
I do not consider it useful to refer to other cases cited during the argument,
many of which were concerned with alleged wrongful dismissals of servants of the
Crown. It suffices for me that we have not been referred to any decision
holding, despite objection directly taken on behalf of the Crown, that a
Petition of Right or civil suit lies against the Crown to enforce the
performance of the terms of the engagement of a servant of the Crown, not being
terms laid down by statute. The Ceylon decision in Fraser's case is thus quite
exceptional.
The decisions of the Privy Council in the appeals from India lay down clearly
the principle that the provisions of the covenants and rules governing the
public service are not enforceable by action. This principle must apply to all
such provisions, including those which prescribe rates of pay and increments,
and it denies to this plaintiff a right to sue for the increment alleged to be
due to him under the Minutes.
There remains one possibility to which I must advert, namely whether the
provisions of the Ceylon Constitution have affected the operation in Ceylon of
the principle formerly applicable.
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Section 57 of the Order in
Council declares that (with some exceptions not here relevant) every person
holding office under the Crown holds the office during Her Majesty's pleasure.
Sections 58 and 60 establish a Public Service Commission, and vest in the
Commission " the appointment, transfer, dismissal and disciplinary control of
public officers ", i.e., of persons holding a paid office as a servant of the
Crown in respect of the Government of Ceylon (vide s. 3, definition). Section 61
authorises the Commission to delegate any of its powers, subject to the right of
appeal to the Commission itself. Thus the powers of appointment and dismissal,
which were those of the Sovereign in early English law, are now exercisable by
the Commission. It is not disputed that the plaintiff in this case is a public
officer within the meaning of these provisions.
Neither in Part VII of the Order in Council, under the title " The Public
Service ", nor in any other provision of the Order, is there express statutory
declaration vesting in any specified authority the power to prescribe the
salaries and conditions of service of public officers. But Part V, which is
entitled " The Executive ", vests in Ministers the subjects and functions which
may be assigned to them by the Prime Minister. The subject of " the public
service " has been so assigned to the Minister of Finance, and I have no
difficulty in assuming that the Minutes and Circulars referred to in this case,
which were issued by the Secretary to the Treasury or his Deputy, were in fact
issued under the authority of the Minister of Finance. Under s. 51, the
Secretary to the Treasury, who is also the Permanent Secretary to the Ministry
of Finance, exercises control over the departments of Government in charge of
his Minister and is thus the head of the Public Service, subject only to the
special powers reserved by s. 60 to the Public Service Commission. The Minister
of Finance, or his Permanent Secretary, in the exercise of their powers of
control and administration of the public service, have necessarily to adhere to
decisions of Parliament, particularly those decisions which are incorporated in
the Appropriation Acts which appropriate funds for various public purposes ;
they have also to adhere to decisions of the Cabinet, which under s. 46 of the
Order in Council is charged with the general direction and control of the
government of the Island. There has been no suggestion during the argument of
this appeal that the act of the plaintiff's head of department in withholding
the plaintiff's increment in any way infringes or usurps powers which under the
Constitution are vested in Parliament, the Cabinet, the Public Service
Commission, or the Minister of Finance. The head of department acted under the
provisions of a Circular issued by an authority fully competent to issue it.
I find nothing in the relevant provisions of the Constitution (which have just
been examined) which can in any way be construed as altering or affecting,
either expressly or by implication, the principle that the terms of a public
officer's engagement to serve the Crown in Ceylon do not entitle him to
institute a suit to recover earned wages or to enforce the
138
terms of his engagement. The case
of Silva v. The Attorney-General1[ (1958) 60 N. L. R. 145.] is easily
distinguishable, for we are not here concerned with anything resembling the
dismissal from service of a public officer by an authority not legally competent
to dismiss him.
Counsel for the plaintiff argued that, although the Crown or the Executive
Government in Ceylon has a power freely to alter the terms and conditions of
service prescribed in the relevant minutes in force at the time of the
plaintiff's promotion to the Executive Clerical Class, that power was unlawfully
exercised when the Treasury Circular No. 560 was issued in December, 1961. The
ground of this argument was that the Circular was issued for the purpose of the
implementation of the Official Language Act, No. 33 of 1956. Referring to the
terms of the Circular itself, and to those of a Cabinet memorandum containing
directions as to the implementation of that Act, Counsel submitted that the
Treasury Circular had to be issued under the compulsion of the Act; and, relying
upon certain decisions in the United States, he further submitted that anything
done under the compulsion of an invalid statute is itself invalid, despite the
fact that what is done may be valid if done in the exercise of some ordinary
contractual right or other power.
These submissions regarding the Treasury Circular depend on Counsel's other
submission that the Official Language Act of 1956 was ultra vires on the ground
that in enacting it Parliament transgressed the prohibitions against
discrimination contained in Section 29 of the Constitution. Indeed the learned
District Judge who heard the instant case has held the Act to be void on that
ground. In considering whether this Court should now make any pronouncement as
to the validity of the Act of 1956, I take note of the reluctance of the
American and Indian Supreme Courts to make such pronouncements. The principle is
thus expressed in Cooley, Constitutional Limitations (8th Ed. p. 332):-
" It must be evident to anyone that the power to declare a Legislative Enactment
void is one which the Judge, conscious of the fallibility of the human judgment,
will shrink from exercising in any case where he can conscientiously and with
due regard to duty and official oath decline the responsibility."
In Burton v. United States2[196 U. S. Reports at p. 295.] it was observed
that " It is not the habit of the Court to decide questions of a constitutional
nature unless absolutely necessary to a decision of a case ". Again, in Silver
v. Louis Ville N. R .Co.3[ 213 U. S. Reports at p. 191.] the Court stated that
if a case could be decided on one of two grounds, one involving a constitutional
question, and the other a question of statutory construction or general law, the
Court will decide only the latter.
139
In the instant case, it is not
even clear whether the question of the compulsion of a statute does arise. I
have already reached the conclusion that under our Law a public servant has no
right to sue for his wages. Accordingly the plaintiff is not entitled to a
remedy in the Courts for any alleged default in the payment to him of the
increment, even if the relevant minutes and regulations had not been altered or
modified by the Treasury Circular No. 560.
The position of the Crown here is not that there was an alteration in the terms
and conditions of service in consequence of which the plaintiff has become
disentitled to the increment. The Crown's position is that the plaintiff cannot
sue for the payment of the increment, even if the minutes and regulations
provide for such a payment. Since such in my opinion is the correct position in
law, this Court should not now venture to rule upon the submissions as to the
invalidity of the Language Act. As a note of caution I must say also that the
ruling on that submission made by the learned District Judge in this case must
not be regarded in any way as a binding decision.
We did not call upon the learned Acting Attorney-General to submit his arguments
on the question of the validity of the Language Act. Instead, at the close of
the hearing of this appeal, I indicated my intention that if our findings on the
other issues arising in this case necessitate consideration of that question, I
would in exercise of my powers under Section 51 of the Courts Ordinance refer
the question for the decision of a Bench of five or more Judges. That course is
not now necessary; but I should here express the firm opinion that a question of
such extraordinary importance and great difficulty, if and when it properly
arises for decision, must receive consideration by a Bench constituted under
Section 51.
The judgment and decree of the District Court are set aside. I do not in the
circumstances make any order as to the costs in the District Court, but the
plaintiff must pay the costs of this appeal.
G. P. A. SILVA, J.-I agree.
Judgment and decree set aside.