SENIOR SUPDT. OF POST OFFICE & ORS. vs IZHAR HUSSAIN

The Supreme Court held that Rule 2(2) of the Liberalised Pension Rules, 1960, which allows for compulsory retirement after 30 years of service without guidelines, is invalid as it grants absolute discretion to the Government and lacks safeguards against arbitrary use. The Court distinguished this from Fundamental Rule 56(j), which permits premature retirement only in 'public interest' and provides necessary guidelines. The appeal was dismissed, affirming the Division Bench's ruling that Rule 2(2) is ultra vires Articles 14 and 16 of the Constitution.