U.P.STATE MINERAL DEVELOPMENT CORPN. & ANR. vs SHRI K.C.P.SINHA

The Supreme Court upheld the Allahabad High Court's ruling that Rule 27(iv) of the U.P. State Mineral Development Corporation Limited Employees Service Rules, 1978, is unconstitutional as it violates Articles 14 and 16 of the Constitution by conferring arbitrary powers for compulsory retirement without a minimum service period. The Court emphasized that such provisions must ensure fairness and non-arbitrariness in employment matters. Consequently, the appeal against the High Court's decision was dismissed, affirming the invalidity of the rule.