BHARAT SANCHAR NIGAM LTD. Vs GHANSHYAM DASS .
Bench: R.V. RAVEENDRAN,P. SATHASIVAM,A.K. PATNAIK, ,
Case number: C.A. No.-004369-004369 / 2006
Diary number: 20171 / 2003
Advocates: PAVAN KUMAR Vs
P. NARASIMHAN
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Reportable IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 4369 OF 2006
Bharat Sanchar Nigam Limited … Appellant
Versus
Ghanshyam Dass & Ors. … Respondents
WITH
CIVIL APPEAL NO.4370 of 2006
Bharat Sanchar Nigam Limited … Appellant
Versus
Chhidu Singh & Ors. … Respondents
J U D G M E N T
A. K. PATNAIK, J.
These two appeals are against two separate but
identical orders passed by a Division Bench of the High
Court of Delhi on 22.05.2003 in C.W. No.4555 of 2002 and
C.W. No.4556 of 2002.
2. The facts very briefly are that in the Department of
Telecommunications of the Government of India there are
four Grades of employees and these are:
2
Basic Grade [Telegraph Assistant / Telegraphist] = Pay Scale Rs.975-1660.
Grade II [Section Supervisor / Telegraph Master] = Pay Scale Rs.1400-2300.
Grade III [Senior Section Supervisor] = Pay Scale Rs.1600-2660.
Grade IV [Chief Section Supervisor] = Pay Scale Rs.2000- 3200.
2. Initially, promotions from one Grade to the higher
grade were made on the basis of seniority to the 2/3rd
of the posts and on the basis of departmental
examination to the 1/3rd of the posts. With effect from
30.11.1983, the Government of India, Ministry of
Communications, Department of Telecommunications
(for short ‘the Government’) introduced One Time
Bound Promotion Scheme under which regular
employees, who had completed sixteen years of service
in a grade, were placed in the next higher grade.
Thereafter, by a circular dated 16.10.1990 the
Government introduced a new Scheme known as
‘Biennial Cadre Review’ (for short ‘the BCR Scheme’).
Under the BCR Scheme, those employees, who were on
regular service as on 01.01.1990 and had completed
3
26 years of satisfactory service in the basic grades,
were to be screened by a duly constituted Committee
to assess their performance and determine their
suitability for advancement and if they were found
suitable they were to be upgraded in the higher scale.
The circular dated 16.10.1990, however, limited such
upgradation to 10% of the posts in the lower pay-scale
and the review of the cadres for the purpose of such
upgradation was to take place once in two years. The
Government then issued clarifications on some points
in its letter dated 11.03.1991 on the BCR Scheme.
Point No.10 and the clarification thereon in the letter
dated 11.03.1991 are quoted hereunder:-
“Point raised by the field unit Clarification
“10. Whether Officers already having pay scale of Rs.1600-2600 will rank senior to Officials in the scale of Rs.1400-2300 for the 10% quota (Rs.2000- 3200)
The seniority of officials is to be maintained with reference to the basic cadres and functional promotional posts they hold and not merely with reference to the pay scales.”
4. Some officers of Grade III who were senior in the basic
grade but had lost their seniority in Grade III because of
4
their later promotions and who were not considered for
upgradation to Grade IV under the BCR Scheme, namely,
Smt. Santosh Kapoor and others, filed O.A. No.1455 of 1991
before the Central Administrative Tribunal, New Delhi,
contending on the basis of clarification on Point No.10 made
in the letter dated 11.0.3.1991 that under the BCR Scheme,
seniority in the basic grade was to be counted for the
purpose of upgradation on completion of 26 years of service
and this contention was resisted by the Government and
other respondents in the O.A. and the Tribunal in its order
dated 07.07.1992 directed that promotions of 10% posts in
the scale of Rs.2000-3200 (Grade IV) would have to be
based on seniority in the basic grade subject to fulfillment of
other conditions in the BCR Scheme and further directed
the Government to consider the applicants in the O.A. from
due dates with consequential benefits. In the order dated
07.07.1992, the Tribunal, however, observed that employees
who may be senior to the applicants in the O.A. in the scale
of Rs.1600-2660 (Grade III) and who may have already been
given the scale of Rs.2000-3200 (Grade IV) at the cost of
those who were senior in the basic grades by any different
5
interpretation of the BCR Scheme, may in the discretion of
the Government instead of being reverted, be considered for
promotion to scale of Rs.2000-3200 (Grade IV) by suitable
adjustments in the number of posts by upgradation as
necessary. The Government challenged the order dated
07.07.1992 of the Tribunal in Civil Appeal No.3201 of 1993
but by order dated 09.09.1993 this Court held that the
direction by the Tribunal cannot be faulted and accordingly
dismissed the appeal.
5. Pursuant to the order dated 07.07.1992 of the
Tribunal in O.A. No.1455 of 1991 as affirmed by this Court
in Civil Appeal No.3201 of 1993, supernumerary posts were
created in the scale of Rs.2000-3200 (Grade IV) to adjust
the employees who had already been given the scale of
Rs.2000-3200 on the basis of their seniority in the scale of
Rs.1600-2660 (Grade III). Moreover, after a review of the
procedure for promotions from Grade III to Grade IV, the
Government issued a fresh circular dated 13.12.1995
saying that promotion to Grade-IV may be given from
amongst officials in Grade-III on the basis of their seniority
in the basic grade, subject to fitness determined by the DPC
6
and subject to the ceiling of 10% of the posts in Grade-III
(scale Rs.1600-2660) as provided in the BCR Scheme.
6. The respondents in C.A. No.4369 of 2006 Shri
Ghanshyam Dass and others filed O.A. No.2484 of 1997
and the respondents in C.A. No.4370 of 2006 Shri Chiddu
Singh and others filed O.A. No.2099 of 1997 before the
Central Administrative Tribunal contending that employees
who were juniors to them in the basic grade but otherwise
senior in Grade-III, had been given promotion to Grade-IV
earlier to the dates when the respondents were given such
promotion and by a common order dated 11.08.2000 the
Tribunal allowed the O.As. and directed the Government to
consider promoting them to Grade IV with effect from the
dates their immediate juniors in the basic grade seniority
were so promoted subject to their otherwise being found fit
for promotion on such dates with consequential benefits
including seniority and arrears of pay and allowances and
retiral benefits in the case of those who had retired on
superannuation. The Government filed writ petitions C.W.
No.4555 of 2000 and C.W. No.4556 of 2000 in the High
Court of Delhi, but by the two separate impugned orders the
7
High Court found that the Tribunal, while allowing the
applications, had directed the Government to follow its own
circular dated 13.12.1995 which had been issued pursuant
to the order of the Tribunal dated 07.07.1992 in O.A.
No.1455 of 1991 which had attained finality after dismissal
of the appeals by this Court and accordingly dismissed the
two writ petitions.
7. When these two Civil Appeals were heard by a two
Judge Bench of this Court on 14.03.2007, they were of the
view that the matter should be referred to a larger Bench for
the reasons stated in the order dated 14.03.2007, which are
quoted hereinunder:
“…….. The question is that on what basis the promotion is to be given. In normal course of business a person in Grade-I is to be promoted on the basis of seniority from Grade I to Grade II and likewise from Grade II to Grade III and from Grade III to Grade IV. But because of a clarification issued by the Department dated 3.4.1991, the basic Grade seniority should be taken into consideration for promotion and not the pay-scales. If this is to be taken, then this will mean that a person who is in Grade I and has put in 26 years of service on 1.1.1990 will be entitled for promotion from Grade I to Grade IV. Therefore, the concept of basic cadre has to be interpreted with reference to the seniority in each Grade. But on account of the order passed by the CAT which has been affirmed by this Court on 9.9.1993 in Civil Appeal No.3201 of 1993 this
8
anomalous situation has been created. Therefore, in our view, it is appropriate if this matter is referred to a larger Bench so that the controversy involved in the matter can be resolved. …..”
Thus, the learned Judges were of the view that on account
of the order passed by Central Administrative Tribunal in
O.A. No. 1455 of 1991 which had been affirmed by this
Court on 09.09.1993 in C.A. No. No.3201 of 1993 an
anomalous situation has been created inasmuch as a
person who is in Grade I and had put in 26 years of service
would be entitled for promotion from Grade I to Grade IV.
They were of the view that the concept of basic cadre has to
be interpreted with reference to the seniority in each grade.
8. In the course of hearing before us, however, it has
been brought to our notice by learned counsel for the
parties that the controversy before us is confined to
promotions of only employees from Grade-III to Grade-IV
and not of employees working in either Grade-I or Grade-II.
This will be clear from the order dated 07.07.1992 of the
Central Administrative Tribunal in O.A. No.1455 of 1991
[Smt. Santosh Kapoor and others v. Union of India and
others] in which the Tribunal has directed that promotions
9
to 10% posts in Grade-IV (Pay Scale 2000-3200) would have
to be based on seniority in basic cadres subject to
fulfillment of other conditions in the BCR Scheme and it is
this order of the Tribunal which was affirmed by this Court
in the order dated 09.09.1993 in Civil Appeal No.3201 of
1993. This will also be clear from the fresh circular dated
13.12.1995 which was confined to promotions from Grade
III to Grade IV under the BCR Scheme. Hence, the question
of an employee of the basic Grade (Grade-I) being promoted
to Grade-IV directly does not arise in the appeals before us.
9. Coming now to the merits of the two appeals before us,
Mr. R.D. Agrawala, learned counsel for the appellants,
submitted that the Central Administrative Tribunal allowed
the claims of the respondents on the ground that in the
basic grade they were senior to some employees who had
already been promoted to Grade-IV and this was clearly
contrary to the fresh circular dated 13.12.1995 of the
Government according to which promotions to Grade-IV
may be given from amongst officials in Grade-III on the
basis of their seniority in the basic grade. He submitted that
the Tribunal in its common order in the two O.As. has given
10
the illustrative example of Lakhpat Rai Gumbar who was at
serial No.73 of the seniority list in the basic cadre while the
respondents Ghanshyam Dass and Shyamlal Sachdeva,
who were applicants in O.A. No. 2484 of 1997, were placed
above him in the seniority list of the basic cadre at serial
Nos.69 and 70 and yet Lakhpat Rai Gumbar had been
promoted to Grade-IV by order dated 08.01.1993 while the
said two Ghanshayam Dass and Shyamlal Sachdeva had
been promoted to Grade-IV with effect from 01.01.1997 and
01.07.1997 respectively. Mr. Agrawala submitted that the
Tribunal failed to appreciate that Lakhpat Rai Gumbar had
been promoted from Grade-III to Grade-IV with effect from
08.01.1993 pursuant to the order dated 07.07.1992 of the
Central Administrative Tribunal in O.A. No.1455 of 1991 in
which the Tribunal had allowed the Government to create
supernumerary posts for promotion to Grade-IV for those
employees who were senior to the applicants in the O.A. in
the scale of Rs.1600-2600 (Grade III) and who had been
given the scale of Rs.2000-3200 (Grade IV) at the cost of
those who were senior in the basic grades by a different
interpretation of the BCR Scheme. He further submitted
11
that the Tribunal also failed to appreciate that the fresh
circular dated 13.12.1995 of the Government could have
only prospective effect and could govern only promotions
made after 13.12.1995 and in fact Ghanshyam Dass and
Shyamlal Sachdeva, the two applicants in O.A. No. 2484 of
1997, and many other employees had been promoted from
Grade-III to Grade-IV on the basis of seniority in the basic
cadre after the fresh circular dated 13.12.1995. He
submitted that the High Court has lost sight of all these
aspects and has affirmed the order of the Tribunal in the
two O.As. erroneously.
10. Mr. Sudarshan Rajan, learned counsel appearing for
the respondents, in reply, submitted that the consolidated
list of promotions under the BCR Scheme (Annexure P/1 in
C.A.No.4370 of 2006) would show that Ghanshyam Dass
was at serial No.69 and Shyamlal Sachdeva was at serial
No.70, whereas Lakhpat Rai Gumbar was at serial No.73 in
the seniority list of the basic grade. He submitted that since
the Central Administrative Tribunal in its order dated
07.07.1992 in O.A. No.1455 of 1991 has held that
promotions to 10% posts in Grade-IV would have to be
12
based on seniority in the basic Cadre, Ghanshyam Dass
and Shyamlal Sachdeva ought to have been promoted before
Lakhpat Rai Gumbar but the chart at page 34A in C.A.
No.4370 of 2006 would show that Lakhpat Rai Gumbar was
promoted on 08.01.1993 whereas Ghanshyam Dass and
Shyamlal Sachdeva were promoted much later on
01.01.1997 and 01.07.1997 respectively. He vehemently
submitted that Ghanshyam Dass and Shyamlal Sachdeva
and all other respondents have to be given the benefit of the
order dated 07.07.1992 of the Tribunal in O.A. No.1455 of
1991 as affirmed by this Court, even though they were not
parties in the aforesaid O.A. before the Tribunal or before
this Court. He cited the decision in K.I. Shephard and
others v. Union of India and others [(1987) 4 SCC 431] in
which this Court held that employees who had not come to
the Court should not be penalized for not having litigated
and would be entitled to the same benefits as the petitioners
in that case. Mr. Rajan further submitted that the Central
Administrative Tribunal in its order dated 07.07.1992 in
O.A. No.1455 of 1991 had only observed that employees
who may be senior to the applicants in the O.A. in the scale
13
Rs.1600-2600 and which may have been given the scale of
Rs.2000-3200 at the cost of those senior in the basic grades
may be ‘considered for promotion’ and the Tribunal had not
given any direction to promote all such employees such as
Lakhpat Rai Gumbar. He submitted that the clarification
on Point No.6 in the letter dated 11.03.1991 of the
Government on the BCR Scheme was that the selection for
promotion from Grade-III to Grade-IV was to be based on
merit and not simply fitness and, therefore, Lakhpat Rai
Gumbar and others could not have been promoted to
supernumerary posts without a proper selection on merit
pursuant to the order dated 07.07.1992 of the Tribunal in
O.A. No.1455 of 1991.
11. We have considered the submissions of learned
counsel for the parties. The order dated 07.07.1992 of the
Central Administrative Tribunal in O.A. No.1455 of 1991
(Smt. Santosh Kapoor and Others v. Union of India & Ors.),
contained the following directions:
“In the above view of the matter, we direct that the promotions to 10% posts in scale 2000- 3200 would have to be based on seniority in basic cadres subject to fulfillment of other conditions in the BCR Scheme viz. those who were regular employees as on 1.1.1990 and had
14
completed 26 years of service in basic grades (including higher scales). The respondents are directed to consider applicants accordingly from due dates with consequential benefits. The employees who may be senior to applicants in the scale of Rs.1600-2660 and who may have already been given the scale of Rs.2000-3200 at the cost of those senior in basic grades by any different interpretation of the BCR Scheme, may in the discretion of the respondents, instead of being reverted, be considered for promotion to scale of Rs.2000-3500 by suitable adjustments in the matter of posts by upgradation as necessary.”
It will be clear from the directions in the aforesaid order
dated 07.07.1992 in O.A. No.1455 of 1991 that the
Government was directed to consider only the applicants in
the O.A. for promotion to 10% posts in the scale Rs.2000-
3200 (Grade-IV) on the basis of seniority in the basic cadres
from the due dates with consequential benefits. The
respondents in the two Civil Appeals before us were not the
applicants in O.A. No.1455 of 1991 and there was no
direction to the Government to consider the respondents in
the two appeals for promotion to Grade-IV scale on the
basis of seniority in the basic cadre as per the BCR Scheme.
Hence, the respondents were not entitled to claim any
promotion to Grade-IV on the basis of their seniority in the
basic grade on the basis of the order dated 07.07.1992 of
15
the Tribunal in O.A. No.1455 of 1991 as affirmed by the
order dated 09.09.1993 of this Court in Civil Appeal
No.3201 of 1993.
12. In K.I. Shephard (supra) relied upon by the learned
counsel for the respondents, this Court directed that
each of the transferee banks should take over the
employees who had been excluded from employment
under the amalgamation schemes of the banks on the
same terms and conditions of employment under the
respective banking companies prior to amalgamation
and further directed that such employees, who were
taken over, would be entitled to the benefit of
continuity of service for all purposes including salary
and perks. This Court further found that some of the
excluded employees had not come to Court and held
that there was no justification to penalize them for not
having litigated and that they too shall be entitled to
the same benefits as the petitioners in that case.
There was, therefore, a clear direction in the judgment
of this Court in K.I. Shephard (supra) that the excluded
employees, who had not approached the Court, shall
16
also be entitled to the same benefits as the petitioners
in that case were entitled under the judgment of this
Court. In the present case, as we have seen, the
Central Administrative Tribunal has not directed in its
order dated 07.07.1992 in O.A. No.1455 of 1991 that
the benefits of the order would also be extended to
those who had not approached the Tribunal.
13. The principle laid down in K.I. Shephard (supra) that it
is not necessary for every person to approach the court for
relief and it is the duty of the authority to extend the benefit
of a concluded decision in all similar cases without driving
every affected person to court to seek relief would apply only
in the following circumstances:
a) where the order is made in a petition filed in a representative capacity on behalf of all similarly situated employees;
b) where the relief granted by the court is a declaratory relief which is intended to apply to all employees in a particular category, irrespective of whether they are parties to the litigation or not;
c) where an order or rule of general application to employees is quashed without any condition or reservation that the relief is restricted to the petitioners before the court; and
17
d) where the court expressly directs that the relief granted should be extended to those who have not approached the court.
14. On the other hand, where only the affected parties
approach the court and relief is given to those parties, the
fence-sitters who did not approach the court cannot claim
that such relief should have been extended to them thereby
upsetting or interfering with the rights which had accrued
to others. In Jagdish Lal and others v. State of Haryana and
others [(1997) 6 SCC 538], the appellants who were general
candidates belatedly challenged the promotion of Scheduled
Caste and Scheduled Tribe candidates on the basis of the
decisions in Ajit Singh Januja v. State of Punjab [(1996) 2
SCC 715], Union of India v. Virpal Singh Chauhan [(1995) 6
SCC 684] and R.K. Sabharwal v. State of Punjab [(1995) 2
SCC 745] and this Court refused to grant the relief saying:
“….this Court has repeatedly held, the delay disentitles the party to the discretionary relief under Article 226 or Article 32 of the Constitution. It is not necessary to reiterate all the catena of precedents in this behalf. Suffice it to state that the appellants kept sleeping over their rights for long and elected to wake up when they had the impetus from Virpal Chauhan and Ajit Singh ratios. But Virpal Chauhan and Sabharwal cases, kept at rest the promotion already made by that date, and declared them as
18
valid; they were limited to the question of future promotions given by applying the rule of reservation to all the persons prior to the date of judgment in Sabharwal case which required to be examined in the light of the law laid in Sabharwal case. Thus earlier promotions cannot be reopened. Only those cases arising after that date would be examined in the light of the law laid down in Sabharwal case and Virpal Chauhan case and equally Ajit Singh case. If the candidate has already been further promoted to the higher echelons of service, his seniority is not open to be reviewed. In A.B.S. Karamchari Sangh case a Bench of two Judges to which two of us, K. Ramaswamy and G.B. Pattanaik, JJ. were members, had reiterated the above view and it was also held that all the prior promotions are not open to judicial review. In Chander Pal v. State of Haryana a Bench of two Judges consisting of S.C. Agrawal and G.T. Nanavati, JJ. considered the effect of Virpal Chauhan, Ajit Singh, Sabharwal and A.B.S. Karamchari Sangh cases and held that the seniority of those respondents who had already retired or had been promoted to higher posts could not be disturbed. The seniority of the petitioner therein and the respondents who were holding the post in the same level or in the same cadre would be adjusted keeping in view the ratio in Virpal Chauhan and Ajit Singh; but promotion, if any, had been given to any of them during the pendency of this writ petition was directed not to be disturbed….”
Since the respondents preferred to sleep over their rights
and approached the Central Administrative Tribunal only in
1997, they cannot get the benefit of the order dated
07.07.1992 of the Tribunal in O.A. No.1455 of 1991 and will
19
only be entitled to the benefit of the circular dated
13.12.1995 which was in force in 1997.
15. We also find on a reading of paragraph 8 of the order
dated 07.07.1992 of the Central Administrative Tribunal in
O.A. No.1455 of 1991 that the Tribunal gave liberty to the
Government to consider employees who were senior to the
applicants in that case in a scale of Rs.1600-2660 (Grade-
III) and who may have already been given the scale of
Rs.2000-3200 (Grade-IV) at the cost of those senior in the
basic grades by any different interpretation of the BCR
Scheme then one given by the Tribunal by suitable
adjustments in the number of posts by upgradation as
necessary. It appears that pursuant to this liberty granted
to the Government, Lakhpat Rai Gumbar had been
promoted to Grade-IV scale w.e.f. 08.01.1993 because of his
seniority in Grade-III scale over two the respondents in the
Civil Appeal No.4369 of 2006, Ghanshyam Dass and others
and Shyamlal Sachdeva, even though he was junior to these
officers in the basic grade. Hence, Lakhpat Rai Gumber was
promoted to one of the posts in Grade-IV created by the
Government for the specific purpose of protecting
20
promotions done on a different interpretation of the BCR
Scheme by the Government as allowed by the Tribunal in
the order dated 07.07.1992 in O.A. No.1455 of 1991 and the
respondents in these appeals can have no claim of
promotion to these supernumerary posts. Moreover, if the
respondents were in any way aggrieved by the promotion of
Lakhpat Rai Gumber and others who were junior to them in
the basic grade, they could have challenged their promotion
in the appropriate forum, but they have not done so.
16. We further find on a reading of the circular dated
13.12.1995 of the Government that after the order dated
07.07.1992 of the Tribunal in OA. No.1455 of 1991 was
affirmed by this Court in Civil Appeal No.3201 of 1993 on
09.09.1993 the Government undertook a review of the
existing procedure of promotion to Grade-IV and decided in
supersession of earlier instructions that promotion to
Grade-IV may be given from amongst officials in Grade-III
on the basis of their seniority in the basic grade. This
would be clear from the relevant portion of the circular
dated 13.12.1995 extracted below:
“Review of the existing procedure of promotion to Grade-IV (now designated as Chief Section
21
Supervisor) under the BCR Scheme has been under consideration in view of the judgment of Principal Bench, New Delhi upheld by the Supreme Court. It has now been decided in supersession of earlier instructions that promotion to the said Grade-IV may be given from amongst officials in Grade-III on the basis of their seniority in the basic grade. ……”
17. The language of the circular dated 13.12.1995 makes
it crystal clear that the Government took a fresh decision in
supersession of earlier instructions that promotion to
Grade-IV may be given from amongst officials in Grade-III
on the basis of their seniority in the basic grade. Hence, the
decision of the Government to make promotions to Grade-IV
on the basis of their seniority in the basic grade could take
effect only from 13.12.1995 and not from a prior date and
the respondents, who had filed O.A. No.2484 of 1997 and
O.A. No.2099 of 1997 in the Central Administrative Tribunal
could not claim any promotion to Grade-IV on the basis of
their seniority in the basic cadre with effect from any date
prior to 13.12.1995. The Central Administrative Tribunal
was, therefore, not right in allowing O.A. No.2484 of 1997
and O.A. No.2099 of 1997 by order dated 11.08.2000,
directing the Government to consider promoting the
22
applicants to Grade-IV with effect from the dates their
immediate juniors in the basic grade seniority were so
promoted subject to their being found fit with consequential
benefits of seniority as well as arrears of pay and allowance
and of retiral benefits in the case of those of the applicants
in the O.As. who had retired on superannuation. In our
considered opinion, the High Court ought to have interfered
with the decision of the Tribunal.
18. We accordingly allow these appeals and set aside the
impugned orders dated 22.05.2003 of the High Court and
the common order dated 11.08.2000 of the Central
Administrative Tribunal in O.A. No. 2484 of 1997 and O.A.
No.2099 of 1997. The two O.As. stand rejected. There will
be no order as to costs.
.……………………….J. (R. V. Raveendran)
………………………..J. (P. Sathasivam)
………………………..J. (A. K. Patnaik) New Delhi, February 17, 2011.
23