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Supreme Court of India· 06 August 2026

What weight must be given to a government servant's performance in the years immediately preceding a decision on compulsory retirement, as against the earlier part of the service record?

SUSHIL SHARMA v. UNION OF INDIA AND OTHERS
2026 INSC 809 · CIVIL APPEAL NO.8634 OF 2012
Coram: Prashant Kumar Mishra; Shree Chandrashekhar
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Answer

While the entire service record must be considered, greater weight must be accorded to the service record of the immediate preceding years; a discernible decline in performance during that period is material the Committee is entitled to weigh under Rule 56(j).

Headnote

Fundamental Rules — Rule 56(j) — Compulsory retirement — Judicial review — Entire service record — Fundamental Rules — Rule 56(j) — Compulsory retirement — Not punitive; narrow judicial review — Held: Compulsory retirement under Rule 56(j) of the Fundamental Rules is not punitive and carries no stigma; natural justice has no application to it. Judicial review remains available, but only where the order is malafide, based on no evidence, or arbitrary and perverse. (¶5, 6) Fundamental Rules — Rule 56(j) — Entire service record — "Washed-off theory" inapplicable — Held further: The "washed-off theory", under which adverse entries preceding a promotion lose relevance for further promotion, does not apply when assessing fitness for retention; the entire service record may be considered, with greater weight given to the immediate preceding years. (¶10, 11, 14) Fundamental Rules — Rule 56(j) — CISF Inspector — Decline in last two years justified retirement — Held further: The appellant's gradings declined from "Good" to "Average" through the two years immediately preceding retirement, accompanied by a censure and warnings for negligence, which the Committee was entitled to weigh; the compulsory retirement warranted no interference. Appeal dismissed. (¶9, 14, 16)

In the Court's own words
Paragraph 8On perusal of the appellant’s ACR, it emerges that his gradings from 1983 to 1999 fluctuated between “Average”, “Good” and “Very Good”, with the appellant earning his first promotion in 1990 during a period of improved performance, and his second promotion in 2003 on the string of “Very Good” gradings from 2000 to 2003. While the appellant's entire service record is required to be considered, consistent with the settled position of law, greater weight must necessarily be accorded to the service record of the immediate preceding years before the order of compulsory retirement. It is, therefore, the appellant's performance during the period 2004-2009 which assumes particular significance in the present case. During this period the appellant was graded “Average” in 2004, “Very Good” in 2005, “Good” in 2006 and 2007 and “Good” for the first quarter of 2008 but thereafter declined to “Average” for the remainder of 2008 and continued to be graded “Average” through 2009.
Paragraph 13The aforesaid view also stands re-affirmed in Central Industrial Security Force v. HC (GD) Om Prakash[^8] wherein this Court, while dealing with an order of compulsory retirement passed under Rule 56(j) in respect of a member of the CISF, reiterated that the entire service record is to be considered, albeit with greater weight to the recent record of service.
Acts & Sections
Rule 56(j) Fundamental Rules

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Also decided in this judgment
Does an order of compulsory retirement under Rule 56(j) of the Fundamental Rules require compliance with the principles of natural justice?On what grounds can a court judicially review an order of compulsory retirement, given that natural justice does not apply to it?Can an order of compulsory retirement be invalidated merely because uncommunicated adverse remarks formed part of the material considered by the authority?Does the "washed-off theory", under which adverse entries preceding a promotion lose relevance for further promotion, apply when assessing an employee's fitness for continued retention in service?Can very old adverse entries relating to a government servant's integrity justify an order of premature or compulsory retirement, even where the immediate past record shows exemplary performance?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections