PUNJAB SUGAR MILLS CO. LTD. vs UNION OF INDIA .

The Supreme Court held that the compulsory retirement of a government servant under Fundamental Rule 56(d) was invalid as there was no adverse entry in his service record post-promotion to a selection post. The Court emphasized that the exoneration from previous charges negated the basis for the adverse entry, and the absence of any subsequent adverse remarks indicated no inefficiency. Thus, the order of compulsory retirement was set aside, reinforcing the principle that past conduct should not overshadow current performance when no current issues exist.