Full Judgment Text
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PETITIONER:
BISHAN CHAND & ORS.
Vs.
RESPONDENT:
SARABJIT SINGH & ORS.
DATE OF JUDGMENT27/08/1974
BENCH:
RAY, A.N. (CJ)
BENCH:
RAY, A.N. (CJ)
MATHEW, KUTTYIL KURIEN
CITATION:
1975 AIR 73 1975 SCR (1) 914
1975 SCC (3) 178
ACT:
Punjab Co-operative Subordinate Service Rules, 1936, Rules
5, 6 and 7--Passing of departmental examination basis for
fixation of seniority--Reorganisation of Punjab
State--Variation of condition of service, if has the
approval of the Central Govt. as required under sec. 115(7)
of States Reorganisation Act.
HEADNOTE:
The appellants belonged to Pepsi% Service. On 20th October,
1956 they held been promoted from the position of Sub-
Inspectors to Inspectors. On 1 Nov, 1956 there was the
reorganisation of the State of Punjab. Pepsu became merged
in Punjab. The appellants became integrated with other
Inspectors working in the State of Punjab. Under the Punjab
Co-operative Subordinate Service Rules, 1936, seniority is
dependent on the passing of departmental examination. All
the respondents who were shown senior to the appellants in
the gradation list dated 11 March, 1966, had passed their
departmental examination before the appellants passed their
examination. The respondents were all confirmed earlier
than the appellants. The appellants passed the departmental
examination after the respondents had done so. Therefore,
the appellants were treated as juniors to the respondents.
The appellants contended that the conditions of service have
been varied to their disadvantage without the previous
approval of the Central Govt. as required under sec. 115(7)
of the States Reorganisation Act.
Rejecting the appeal,
HELD : It follows from paragraphs 2 3 and 6 of the
memorandum of the Central Govt. dated 11 May, 1957 that as
far as departmental examination is concerned the Central
Govt. told the State Governments that they might, if they so
desired change the conditions of service and for this
purpose they might assume the previous approval of the
Central Govt. as required by the proviso to sec. 115(7) of
the States Reorganisation Act. This Court has held that
this memorandum of Central Govt. amounted to previous
approval within the meaning of sec. 115(7) of the States
Reorganisation Act. [917 B-D]
N. Raghavendra Rao v. Deputy Commissioner South Kanara
Mangalore, (1964)7 S.C.R. 549 and Mohammad Shujat Ali & Ors.
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v. Union of India & Ors. [1975] I. C. R. 449 relied on.
The condition of service in regard to passing of
departmental examination for the purpose of promotion is,
therefore. fully clothed with the previous approval of the
Central Govt. The appellants also appeared in the
examination. They availed of the same method of promotion.
They have suffered no prejudice because they passed the
departmental examination later than the respondents. [917 F]
JUDGMENT:
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1452 of
1973.
Appeal by Special Leave from the judgment & Order dated the
8th September 1971 of the Punjab & Haryana High Court in
L.P. A. No. 689 of 1970.
V. C. Mahajan, M. R. Agnihotri and Urmila Sirur, for the
appellants;
R. K. Garg, S. C. Agarwal, S. S. Bhatnagar and V. J.
Francis, for respondents Nos. 1, 3, 5, 6, 7 & 17.
915
O.P. Sharma for R.N. Sachthey, or respondent No. 11
T.V.S.N. Chari, for respondent (Davinder Bahadur).
The Judgment of the Court was delivered by.
RAY, C.J.-This appeal is by special leave from the judgment
dated 8 September’, 1971 of the High Court of Punjab and
Haryana.
The principal question raised in this appeal is whether
the appellants are wrongly shown as junior to the
respondents.
The respondents have been treated to be senior to the
appellants on the basis of the Punjab Co-operative
Subordinate Service Rules, 1936 hereinafter referred to as
the 1936 Rules. Under the 1936 Rules seniority is
dependent on the passing of departmental examination. The
appellants passed the departmental examination after the
respondents had done so. Therefore, the appellants are
treated as junior to the respondents.
The appellants belonged to Pepsu Service. On 20 October,
1956, the appellants had been removed from the position of
Sub-Inspectors to Inspectors On 1 November, 1956 there was
the reorganization of the State of Punjab. Pepsu became
merged in Punjab.. The appellants became integrated with
other Inspectors working in the State of Punjab.
On 1 March, 1957 the appellants were reverted from the
position of Inspector to Sub-Inspector. On 11 April, 1957
the appellants were promoted again to the position of
Inspector.
The appellants contend that the 1936 Rules did not apply to
Pepsu before the merger, and, therefore, the conditions of
service could not be varied to their disadvantage after the
integration without the previous approval of the Central
Government as provided by section 11 5(7 of the States
Reorganization Act. The appellants also contend that they
have lost one month and eleven days on account of reversion
from the position of Inspector to Sub-Inspector between 1
March, 1957 and 11 April, 1957.
The gradation list was published on 11 March. 1966. The
seniority list was prepared on the basis of 1936 Rules.
Rule 5 of the 1936 Rules states that all candidates for the
post of Inspectors and Sub-Inspectors of Co-operative
industrial Societies shall undergo such training and shall
pass such examination as the Registrar may prescribe. Rule
6 of the 1936 Rules, inter alia, states that the seniority
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of Inspector candidates recruited from Sub-Inspectors of Co-
operative Industrial Societies and Sub-Inspectors of the
Punjab Co-operative Union will first be determined by the
date of passing the departmental examination. If two or
more candidates passed the examination on the same date,
seniority will be determined by the length of service as
Sub-Inspector. Rule 7 of the 1936 Rules states that the
seniority of Inspectors in the 4th grade will be determined
by the date
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of confirmation. In the third and higher grades of
Inspectors, seniority will be determined by the date of
confirmation in the respective grades.
On 1 November, 1956 the appellants as well as the
respondents were all officiating Inspectors. Some of the
appellants passed their departmental examination in January,
1959 and some in May, 1961. Some of the respondents passed
their departmental examination in February, 1957 and the
others in March, 1958. All the respondents who were shown
senior to the appellants in the gradation list dated 11
March, 1966 had passed their departmental examination before
the appellants passed their examination.
The respondents were all confirmed earlier than the
appellants. The confirmation of the respondents took place
before 1964. In the High Court it was conceded by the
appellants that the respondents had been confirmed earlier
than the appellants. The High Court found that the
seniority list was prepared on this basis. in the case of
confirmed Inspectors the date of confirmation gives the
seniority. In the case of Inspectors who were not confirmed
the date of passing the departmental examination was taken
to be the basis of seniority. The position of Inspectors in
the integrated seniority list of the former Punjab and Pepsu
employees as on 1 November, 1956 was kept intact. In the
case of promoted Inspectors selected in the same batch
seniority on the basis of the seniority position as Sub-
Inspectors was fixed. All the respondents who were shown
senior to the appellants passed their departmental
examination long before the appellants did.
The contention of the appellants that conditions of service
have been varied to their disadvantage without the previous
approval of the Central Government is utterly unsound.
The Central Government on 11 May, 1957 addressed a
memorandum No. S.O. SRDI-I-ARM-57 to all State Governments.
Paragraph 2 of the memorandum states that the question of
protection to be afforded in the matter of various service
conditions to personnel affected by reorganisation was
discussed with the State representatives at conferences held
with them. After careful consideration of the views
expressed at these conferences, the Central Government had
decided that the conditions of service in regard to
substantive pay of permanent and temporary employees,
special pay, leave rules, pension, provident fund and
dearness allowance applicable to personnel affected by the
reorganisation immediately prior to the appointed day should
be protected. But so far as conditions of service in regard
to travelling allowances, discipline, control,
classification, appeal, conduct, probation and departmental
promotion were concerned it would not be appropriate to
provide any protection in the matter of these conditions.
That is stated in paragraph 3 of the memorandum. Paragraph
6 of the memorandum stated that in respect of conditions of
service as had been specifically dealt with in the
proceeding paragraphs cf the memorandum, it would be open to
the State Governments to take action in accordance with the
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decisions conveyed therein and so long as the State
Governments acted in conformity with those decisions, they
917
might assume the Central Government approval in terms of the
proviso to section 115(7) of the States Reorganisation Act.
In all other cases involving condition of service not
specifically covered in the proceeding paragraphs, it would
be necessary for the State Government in terms of section
115(7) of the States Reorganisation Act before any action
was taken to vary the previous conditions of service of an
employee to his disadvantage.
It therefore follows from paragraphs 2, 3 and 6 of the
aforesaid memorandum that as far as departmental promotion
is concerned the Central Government told the State
Governments that they might, if they so desired, change the
conditions of service and for this purpose they might assume
the previous approval of the Central Government as required
by the proviso to section 115(7) of the States Reorganisa-
tion Act.
In N.A. Raghavendra Rao v. Deputy Commissioner South Kanara,
Mangalore (1) a question arose as to whether the Mysore
General Services (Revenue Subordinate Branch) Recruitment
Rules, 1959 were made with the previous approval of the
Central Government under the proviso to section 115, sub-
section (7) of the States Reorganisation Act. It was held
there that the memorandum of the Central Government dated 11
May, 1957 amounted to previous approval within the meaning
of section 115(7) of the States Reorganisation Act. The
Mysore General Services (Revenue Subordinate Branch)
Recruitment Rules, 1959 were therefore held to be validly
made.
The decision in Raghavendra Rao’s (1) case has been relied
on and applied in the recent decision in writ petition No.
385 of 1969 and other Writ Petitions : Mohammad Shujat Ali &
Ors. v. Union of India & OrS. (2).
The condition of service in regard to passing of
departmental examination for the purpose of promotion is"
therefore, fully clothed with the previous approval of the
Central Government. The appellants also appeared in the
examination. They availed of the same method of promotion.
They have suffered no prejudice because they passed the
departmental examination later than the respondents.
For these reasons, we are of opinion that there is no merit
in the contention of the appellants. They have been rightly
treated as junior to the respondents. That is the correct
position in law as well as in the facts and circumstances of
the case. In view of the fact that the parties were
directed to bear their own costs throughout in the High
Court we make a similar order that they will pay and bear
their own costs in this, appeal.
V.M.K. Appeal dismissed.
(1) [1964] 7 S.C.R. 549. (2) [1975] 1 S.C.R. 449.
918