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Case Summary: Dr. Jaya Thakur v. Union of India & Ors. (2023)

Case Stats

Court: Supreme Court of India
Bench: B.R. Gavai, Vikram Nath, and Sanjay Karol, JJ.
Citations: (2023) 07 SC CK 0024
Case Nos.: W.P.(C) Nos. 1271, 1272, 1274 & 1330 of 2021; W.P.(C) Nos. 14, 274, 456, 786, 1106 of 2022; M.A. No. 1756 of 2022 in W.P.(C) No. 1374 of 2020
Date of Decision: 11-07-2023
Disposition: Disposed of (Amendments upheld; specific ED Director extensions set aside with limited continuance)

[Judgment Source] https://www.courtkutchehry.com/Judgement/Search/t/2369177-dr-jaya-thakur-vs-union?s=&refine_search=&s_acts=

Key Prior / Referred Judgments

Common Cause v. Union of India, 2021 SCC OnLine SC 687 (re ED Director; ‘no further extension’ direction)
Vineet Narain v. Union of India, (1998) 1 SCC 226 (insulation of investigative agencies)
Prakash Singh (1) v. Union of India, (2006) 8 SCC 1; Prakash Singh (2) (2019) 4 SCC 14; Prakash Singh (3) (2019) 4 SCC 1
Madras Bar Association v. Union of India, (2014) 10 SCC 1; (2022) 12 SCC 455
Shri Prithvi Cotton Mills Ltd. v. Broach Borough Municipality, (1969) 2 SCC 283

Facts of the Case

ED officer Sanjay Kumar Mishra was appointed Director of Enforcement on 19‑11‑2018 for two years; tenure enhanced to three years on 13‑11‑2020.
In Common Cause (2021), the Supreme Court declined to quash the 2020 enhancement but directed that no further extension be granted.
In Nov 2021, Ordinances amended the CVC Act and DSPE Act to enable up to three annual extensions (max five‑year tenure); Fundamental Rules (F.R. 56(d)) were also amended. Parliament enacted the 2021 Amendment Acts in December 2021.
On 17‑11‑2021 and again on 17‑11‑2022, the Union extended the ED Director’s tenure citing public interest. Multiple writ petitions challenged the amendments and the individual extensions.

Law Points / Issues Raised

Validity of the Central Vigilance Commission (Amendment) Act, 2021 and DSPE (Amendment) Act, 2021 allowing yearly extensions up to five years.
Whether post‑Common Cause (2021), further extension to the incumbent ED Director could be granted; effect of a prior judicial ‘no‑extension’ direction.
Whether piecemeal extensions undermine agency independence (Articles 14, 19, 21) and the ‘insulation’ doctrine from Vineet Narain/Prakash Singh line of cases.
Scope of legislative power to ‘remove the basis’ of a prior judgment versus impermissible nullification of a specific mandamus.

Acts / Provisions / Articles Referred

Constitution of India: Articles 14, 19(1)(a)–(g) with 19(2)–(6), 21, 32, 226.
Central Vigilance Commission Act, 2003: Sections 3, 4, 6, 25 (as amended in 2021).
Delhi Special Police Establishment Act, 1946: Sections 4A(1), 4B, 4B(1) (as amended in 2021).
Fundamental Rules, 1922: F.R. 56(d) (amendment permitting service extension).
General Clauses Act, 1897: Section 21; National Tax Tribunals Act, 2005: Section 8 (comparative reference); Life Insurance Corporation Act, 1956: Section 49 (illustrative).

Obiter Dicta (Notable Observations)

Legislatures may change the law of general application prospectively or retrospectively to remove the basis of a judicial decision; however, a specific judicial mandamus cannot be annulled by executive action.
Agency independence is a constitutional value; extensions must not become a tool of influence—rules must be applied with rigor and only in rare, demonstrable public‑interest situations.

Ratio Decidendi

The 2021 Amendments to the CVC Act and DSPE Act are constitutionally valid; Parliament can prescribe a maximum five‑year tenure through up to three annual extensions.
Nevertheless, in light of the explicit ‘no further extension’ direction in Common Cause (2021), the specific extensions granted to the incumbent ED Director in 2021 and 2022 are impermissible and stand set aside.
Independence of investigative heads is preserved by construing extension power narrowly—only for rare, objective, and recordable reasons consistent with statutory safeguards.

Final Ruling / Disposition

Writ petitions challenging the 2021 Amendments: dismissed; provisions upheld.
Individual tenure extensions to the incumbent ED Director (2021 & 2022): quashed as contrary to the Court’s prior direction; limited continuance permitted only to ensure transition (till 31‑07‑2023).
Union directed to make alternate arrangements in accordance with law; future extensions must strictly satisfy the amended statutory framework and the independence principle.

Key Paragraph Numbers for Quick Reference

Operative holdings on amendments’ validity and extension power: core analysis (mid‑judgment).
Effect of Common Cause (2021) and setting aside of specific extensions: operative portion near conclusion.
Principles on legislative override vs. mandamus: discussion referencing Shri Prithvi Cotton Mills and allied cases.

Summary (One‑Paragraph)

The Supreme Court upheld the 2021 amendments to the CVC and DSPE Acts that permit up to five years for ED/CBI chiefs via annual extensions, holding that Parliament may so legislate. However, applying its earlier direction in Common Cause (2021) that the incumbent ED Director receive no further extension, the Court quashed the specific 2021 and 2022 extensions, while allowing a short, time‑bound continuance only to ensure a smooth transition (till 31‑07‑2023). The judgment balances legislative policy with institutional independence, stressing that any future extensions must be rare, strictly justified, and consistent with the insulation of investigative agencies from executive influence.