State Bank Of India vs Lovleen Sethi

CM-6078-LPA-2026

in/and
LPA-17-2026 (O&M) 1
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
(107+269) CM-6078-LPA-2026 in/and
LPA-17-2026 (O&M)
Date of Decision : September 03, 2026
State Bank of India ..Appellant
Versus
Lovleen Sethi .. Respondent

CORAM: HON'BLE MR. JUSTICE HARSIMRAN SINGH SETHI
HON'BLE MR. JUSTICE MINDERJEET YADAV
Present: Mr. Akshay Jain, Advocate, for the appellant.
Ms. Sangeeta Dhanda, Advocate and
Mr. Anirudh Dhanda, Advocate for the respondent.
HARSIMRAN SINGH SETHI, J. (ORAL)
CM-6078-LPA-2026
Present application has been filed for placing on record the
attendance report of the respondent as Annexure A-1.
Keeping in view the averments made in the application, which
are duly supported by an affidavit, the application is allowed. Annexure A-1
is taken on record.
LPA-17-2026 (O&M)
1. In the present Letters Patent Appeal, the challenge is to the
impugned judgment dated 12.11.2025 passed by the learned Single Judge in
CWP No.38123 of 2018 by which, the promotion which was granted to the
respondent herein to the post of Middle Management Grade Scale-III
(MMGS-III) was withdrawn w.e.f. 31.07.2017, such act of appellant has
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been held to be bad and the promotion has been restored to the respondent
with all consequential benefits.
2. Certain facts needs to be mentioned for the correct appreciation
of the issue in hand.
3. It may be noticed that for seeking promotion to the Middle
Management Grade Scale-III, an employee has to have minimum of two
years of service in the rural area or semi-urban branch and in case any such
service is not done, promotion cannot be claimed by such employee.
4. The respondent herein, was posted by the appellant-Bank in the
Dabra Branch in Hisar on 28.03.2013, which is concededly a rural area and
keeping in view the actual duty of posting in the said branch, on the date of
consideration for promotion to MMGS-III, two years period had elapsed and
by considering the said fact, the respondent competed for the post of
MMGS-III and was found suitable and was actually promoted w.e.f.
31.07.2017 vide order dated 10.10.2017.
5. Thereafter, a show cause notice was issued to the respondent
that though his actual posting was in a rural area but he has been actually
discharging the duties in RBO Hisar which is an urban area as per the login
records. Therefore, minimum requirement of two years service in the rural
area was not fulfilled by him and on the said basis, the promotion granted to
the respondent on the post of Management Grade Scale-III was withdrawn
which action was challenged by the respondent before this Court.
6. The counsel for respondent herein, presented the fact that once
his actual posting was at Dabra which is a rural area and from the date of
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CM-6078-LPA-2026

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LPA-17-2026 (O&M) 3
posting till the date of promotion to the post of Middle Management Grade
Scale-III, two years period had elapsed and therefore, for all intents and
purposes, the respondent was eligible for promotion. The respondent further
contends that though, on the asking of the higher officials, he has been
coming to the Hisar branch to discharge the duties as required and directed,
such direction, or performing the duties at Hisar branch, which comes under
the urban area, he cannot be faulted for not completing two years service in
the rural area which fact has been ignored by the Bank while passing the
order of reversion and withdrawal.
7. The counsel representing Bank on the other hand, submitted that
once an actual service in the rural area was required and though, the posting
of the respondent was in the rural area but actual discharge of the service
was in an urban area for such period, the requirement for promotion was not
filled. The counsel for the appellant-Bank has further gone to say that even
if, the said non-fulfillment of the requirement is due to the exigencies of the
work, which is attributable to the Bank, the promotion cannot be granted till
completion of actual two years service which is required but in such cases,
promotion is to be granted with retrospective effect, which fact needs to be
considered but has escaped the notice of the learned Single Judge.
8. Learned counsel for the appellant-Bank submits that though it is
a conceded fact that the posting of the respondent was in a rural area and that
was for more than a period of two years but the actual discharge of the
service in the rural area by the respondent is for less than two years which
fact has been ignored by the learned Single Judge.
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9. Further, learned counsel for the appellant-Bank submits that the
mandatory requirement of completion of the assignment in the rural area
which was the actual intention behind fixing such period of two years was
that employee must spent such time during his posting in the rural area
before being granted promotion to the post of Middle Management Grade
Scale-III, which fact has been ignored by the learned Single Judge.
10. We have heard learned counsel for the parties and have gone
through the record with their able assistance.
11. It may be noticed that the employee is to work as per the
direction of the management. It is a conceded fact that as per the direction of
the management, the respondent was posted in rural area in Dabra Branch in
Hisar District. Once, the respondent was posted in such area, it becomes the
duty of the employer to allow such employee to complete the project which
were envisaged for the said Branch in the rural area so that for further
promotion of such employee, no hindrance is caused.
12. Once the employer requests/directs an employee to perform a
particular duty at a particular place which is an urban area even while being
posted in a rural area, then such employer is debarred from taking an
objection that actual assignment given to such employee while being posted
in the rural area has not been completed. Non-completion of such
assignment is attributable to the employer keeping in view the facts and
circumstances of the present case. Hence, once the employer is responsible
for such non-completion of actual working in the rural area, employee
cannot be made to suffer for further promotion.
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13. Learned counsel for the appellant submits that even if such
actions are attributable to the employer i.e. Bank herein, but the safeguard
has been provided in the Rules itself that as and when such assignments are
completed in the rural area thereafter, the retrospective promotion can be
granted.
14. It may be noticed that this factor should have been considered
before giving the promotion to the respondent. Once, the appellant has
already given the promotion to the respondent on the post of MMGS-III, the
said condition stood waived off automatically.
15. Further, the appellant- Bank is also of the view that on
completion of the assignment, retrospective promotion can be granted,
withdrawing of the promotion already granted was not permissible,
especially when such promotion remained in operation for a period of
approximately one and half years hence, the said argument will not come
into the rescue of the appellant keeping in view the facts and circumstances
of the present case and the order passed by the learned Single Judge cannot
be treated as perverse either on facts or on law.
16. Keeping in view the above, no ground is made out for any
interference by this Court in the facts and circumstances of the present case.
17. Accordingly, the present appeal stands dismissed. Any benefit
which has not been extended to the respondent by appellant due to the
pendency of the present proceedings, such would be extended to the
respondent as per his entitlements by taking appropriate action within a
period of eight weeks from the date of receipt of copy of this order.
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18. Civil miscellaneous application pending if any, also stands
disposed of.
(HARSIMRAN SINGH SETHI)
JUDGE
(MINDERJEET YADAV)
September 03, 2026 JUDGE
harsha

Whether speaking/reasoned : Yes
Whether reportable : No
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