State of Punjab v V.K. Khanna

Facts

V.K. Khanna, Chief Secretary of Punjab, on the orders of the outgoing Chief Minister issued two notifications referring to the CBI cases involving disproportionate assets of an IAS officer and allotment of land/funds to the Punjab Cricket Association. Within days of a new Government taking office, the notification was sought to be withdrawn and Khanna was charge-sheeted for acting in a mala fide manner with undue haste. The High Court found the action against him improper and mala fide.

Issues

• What is the correct test of bias — 'reasonable suspicion' or 'real likelihood' of bias.
• Whether the charge of mala fides / bias against the officer was established on the record.

Arguments

The State alleged Khanna acted with mala fide haste and impropriety. Khanna contended the charges were themselves mala fide and motivated, lacking any cogent evidence of ill will or improper intent.

Held

The Court held that 'real likelihood' and 'reasonable suspicion' tests, though discussed as inconsistent, both require a reviewing authority to determine, on the whole evidence, whether a reasonable man would infer a real likelihood (real danger) of bias; surmise or conjecture is not enough. Bias and mala fides negate fairness and amount to abuse of power, but their existence must rest on cogent, positive evidence and well-pronounced ill will, not bare allegation. Finding no such evidence of spite or improper motive against Khanna — the Chief Secretary having merely acted in discharge of duty — the Court concurred with the High Court that the action against him was unsustainable.

Ratio decidendi

Administrative action is vitiated only by a real likelihood/real danger of bias established on the whole evidence; allegations of bias or mala fides demand cogent positive proof and cannot be founded on fanciful apprehension or conjecture.

Significance

Important modern restatement clarifying the bias test in India — preferring 'real likelihood/real danger' over mere reasonable suspicion — and emphasising the heavy evidentiary burden for mala fides; builds on Rattan Lal Sharma, S. Parthasarathi and Kumaon Mandal Vikas Nigam.

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