Full Judgment Text
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PETITIONER:
S.K. CHAKRABORTHY AND ORS.
Vs.
RESPONDENT:
UNION OF INDIA & ORS.
DATE OF JUDGMENT11/07/1988
BENCH:
MUKHARJI, SABYASACHI (J)
BENCH:
MUKHARJI, SABYASACHI (J)
SHARMA, L.M. (J)
CITATION:
1988 AIR 1645 1988 SCR Supl. (1) 425
1988 SCC (3) 575 JT 1988 (3) 76
1988 SCALE (2)31
CITATOR INFO :
R 1991 SC2080 (9)
ACT:
Civil Services; Indian Railway Establishment Code,Vol.I
Rule 158-Production Control Organisation, Kharagpur-
Memorandum No. 476-13-l0065 dated 4-5/l01/1979 directing
that Railway Board’s circular No E(NG) 59-SRG-22 dated
22.4.1963 declaring all posts in PCO ex-cadre be
implemented-Effect of-Railway Board’s circular No.
E(NG) 1-79-PMT-242 (DC/JCM) dated 13.9.1984 excepting PCO,
Integral Coach Factory-Whether discriminatory.
Constitution of India, 1950: Article 14-Class
disposition forbidden-Reasonable classification for the
purpose of disposition permissible-Twin tests of
classification founded on intelligible differentia-To have a
rational nexus to object sought to be achieved.
HEADNOTE:
Rule 158 of the Indian Railway Establishment Code, Vol.
I, empowers the General Managers to make rules with regard
to the non-gazetted railway servants provided they are not
inconsistent with any rules made by the President or the
Railway Board. The Railway Board brought out a circular
dated 22.4.1963 laying down the rules for determination of
seniority of workshop staff employed in the Production
Control organisation and declaring all posts therein as
ex-cadre. Due to the stiff opposition of organised labour
the said circular could not be implemented in the Kharagpur
workshop. The Superintendent, however, after discussing the
question with the organised labour issued a memorandum on
21.7.1973 stating that all posts in the PCO would be cadre
posts. Subsequently, by a circular dated 9.7.1978 the
Railway Board declared that the staff from shop-floors
posted in the PCO would receive special pay of 10% of their
pay but this would not be available to the staff who were
permanently absorbed in the PCO or directly recruited in the
PCO. Upon this, representations were made by the labour to
the Railway Board for implementing its circular dated
22.4.1963 so that the staff of the Pco would be eligible for
the special pay. In pursuance of the meetings held with the
labour, the memorandum dated 4-5/l0/1979 was issued which
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declared that the Railway Board’s circular of 1963 would be
implemented in the PCO and that all posts would be treated
as ex-cadre posts. By another circular issued on
426
13.9.1984 the Railway Board allowed the PCO at the Integral
Coach Factory, Southern Railway, to continue on cadre basis.
Aggrieved by the said circular, the petitioners, who at
the relet time were all employees of PCO at Kharagpur,
carried the matter before the Central Administrative
Tribunal and contended; (i) that their posts could not be
declared as ex-cadre because vested rights which had accrued
in their favour could not be affected, and (ii) they could
not be treated differently from those of the Integral Coach
Factory. This was hostile discrimination and amounted to
violation of their rights. The Tribunal rejected both the
contentions.
Dismissing the special leave petition,
^
HELD: 1. Administrative re-organisation is permissible
and as a result of the same rights may be affected but the
vested rights could not be taken away. In the instant case
inasmuch as the memorandum dated 21st July, 1973
inconsistent with the circular issued by the Railway Board
in 1963 no right vested in the petitioners and hence no
question of affecting vested rights arise. [429C-D]
T.R. Kapur & Ors. v. State of Haryana & Ors. [1986] JT
1092 referred to.
2.1 Article 14 of the Constitution forbids class
disposition but permits reasonable classification for the
purpose of disposition which classification must satisfy the
twin tests of classification being founded on an
intelligible differentia which distinguishes persons or
things that are grouped together from those that are left
out of the group and that differentia must have a rational
nexus to the object sought to be achieved by the
disposition. [430A-B]
D.S. Nakara & Ors. v. Union of India, [1983] 2 SCR
165, referred to.
2.2 The circular of 1984 of the Railway Board was
issued pursuant to the negotiations with the staff in the
Departmental Council of Ministry of Railways. The existing
arrangement in the PCO of Integral Coach Factory was not
disturbed because the recognised Unions there did not want
it to be so disturbed; whereas in the PCO of Kharagpur the
recognised Unions had already agreed that the Railway
Board’s circular dated 22.4.1963 would be implemented and
that all posts in that PCO would be treated as ex-cadre.
[429F-G]
427
2.3 The Railway Board is fully competent to bring about
necessary changes in the staff pattern of the various units
under its control for the purpose of steamlining the
organisation and improving the efficiency of the
administration. There was, therefore, a good ground for this
differentiation which has a rational nexus with the object
of streamlining the organisation. This differentiation
cannot be condemned as violative of the rule of equality. It
does not amount to hostile discrimination. [429G-H]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Special Leave Petition
(Civil) No. 3584 of 1987.
From the Judgment and order dated 8.12.1986 of the
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Central Administrative Tribunal, Calcutta in T.A. No. 1143
of 1986.
Mrs. C. Markandeya for the Petitioners. (Not present)
B. Datta, Additional Solicitor General, C.V. Subba Rao
and A.K. Srivastava for the Respondents.
The Judgment of the Court was delivered by
SABYASACHI MUKHARJI, J. This is an application for
leave to appeal under Article 136 of the Constitution,
directed against the judgment and order of the Central
Administrative Tribunal, Calcutta Bench (Justice Ashamukul
Pal and Mr B. Mukhopadhyay) dated 8th December, 1986. The
Tribunal had dismissed the challenge made by the petitioners
herein to the memorandum of 1979 declaring that the posts in
Production Control Organisation (for short PCO) in Kharagpur
would be treated as ex cadre.
There are 75 applicants in this case. At the relevant
time they all were employees of the PCO at Kharagpur Railway
Workshop of South Eastern Railway. The petitioners contend
that these posts could not be declared as ex cadre posts
because vested rights of the petitioners could not have been
affected. Secondly, it was contended that they were treated
differently from the employees of the Integral Coach Factory
on the Southern Railway and those of PCO there continued to
hold the cadre posts. This is hostile discrimination and
amounts to violation of the fundamental rights of the
petitioners. The Tribunal by its impugned order rejected
both the contentions.
428
The PCO was in existence from the time of the B.N.
Railway. The staff of the PCO were either directly recruited
or drafted from different shops of the workshop. In 1958 the
PCO was considerably expanded. After considering the
question the Railway Board brought out a Circular dated
22.4.1963 laying down the rules for determination of
seniority of workshop staff employed in the PCO. It was laid
down in the Circular that all posts in the PCO should be
treated as ex-cadre posts. This is Annexure ’B’ to the writ
application which was ultimately disposed of by the
Tribunal. The Circular, however, could not be implemented in
the Kharagpur workshop on account of the stiff opposition of
organised labour. In the premises the local authorities
could not implement the Circular of 1963. The question was
discussed with the organised labour in a meeting held on 4th
June, 1973 and in pursuance of the decision taken in that
meeting the memorandum dated 21st July, 1973 which is also
Annexure ’B’ was issued by the Superintendent. It was
evidently stated that all posts in PCO would be cadre posts.
It may, however, be reiterated that this was in
violation of the order of 1963. Another memorandum was
issued by the same authority on 15th December, 1973 which
not only declared all posts in PCO to be cadre posts but
also laid down that an option would be given to the persons
already working in the PCO to revert to the shops. It
appears that the question of having incentive schemes for
the staff of the PCO was under consideration of the Railway
Board and by a Circular dated 9.7.1978 the Railway Board
declared that the staff from shop-floors posted in the PCO
would receive special pay of 10% of their pay but this would
not be available to the staff who were permanently absorbed
in the PCO or directly recruited in the PCO. It appears that
this brought a change in the attitude of the labour and
representations were made to the Railway Board for
implementing its Circular dated 22.4.1963 so that the staff
of the Pco would be eligible for the special pay. Joint
meetings were held with the labour on 4th and 22nd
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September, 1979 and in pursuance of the decisions taken in
these meetings the memorandum dated 4-5/10/79 at Annexure
(I) was issued which declared that the Railway Board’s
Circular of 1963 would be implemented in the PCO and that
all posts would be treated as ex-cadre posts. This was
impugned before the Tribunal.
It was contended that the vested rights which accrued
in favour of the petitioners by the operation of the
memoranda dated 21st July and 15th December, 1973 were
affected by declaring that the posts in PCO would be on
cadre basis. These were issued, it appears, in viola-
429
tion of the clear directives of 1963 of the Railway Board.
Hence, these Circulars were in violation of Rule l58 of the
Indian Railway Establishment Code, Vol. I, which lays down
that the General Managers of the Indian Railways have full
powers to make rules with regard to non-gazetted railway
servants under their control provided they are not
inconsistent with any rules made by the President or the
Railway Board.
It, however, appears that the memorandum dated 21st
July, 1973 was clearly inconsistent with the Circular issued
by the Railway Board in 1963 for the former stipulated that
all posts in the PCO would be cadre posts. Both these
memoranda were issued as a result of the meeting with the
workers. In that view of the matter, in our opinion, it
cannot be contended that vested rights have been affected.
Administrative re-organisation is permissible and as a
result of the same rights may be affected but the vested
rights could not be taken away. See in this connection the
observations of this Court in T. R. Kapur & Ors. v. State of
Haryana & Ors., [1986] JT 1092. Here, however, in as much as
the memorandum dated 21st July, 1973 was inconsistent with
the Circular issued by the Railway Board, no right vested in
the petitioners and, hence, no question of affecting vested
rights arises.
The second ground was that there was discrimination
against the petitioners referred to the Railway Board’s
Circular dated 13th September, 1984 which made an exception
for the Integral Coach Factory at the Southern Railway and
allowed the PCO to continue on cadre basis. It was submitted
that this was a case of discrimination. It appears that the
impugned Circular of 1984 of the Railway Board was issued
pursuant to the negotiations with the staff in the
Departmental Council of Ministry of Railways. The existing
arrangement in the PCO of Integral Coach Factory was not
disturbed because the recognised Unions there did not want
it to be so disturbed; whereas in the PCO of Kharagpur the
recognised Unions had already agreed, as appears from the
impugned memorandum at Annexure ’I’ that the Railway Board’s
Circular dated 22.4.1963 would be implemented in the
Kharagpur, PCO and that all posts in the PCO would be
treated as ex-cadre posts. The Railway Board is fully
competent to bring about unnecessary changes in the staff
pattern of the various units under its control for the
purpose of streamlining the organisation and improving the
efficiency of the administration. Hence, there was a good
ground for this differentiation which has a rational nexus
with the object of streamlining the organisation. This
differentiation cannot be condemned as violative of the rule
of equality. It does not amount to hostile discrimina-
430
tion. Article 14 of the Constitution forbids class
disposition but permits reasonable classification for the
purpose of disposition which classification must satisfy the
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twin tests of classification being founded on an
intelligible differentia which distinguishes persons or
things that are grouped together from those that are left
out of the group and that differentia must have a rational
nexus to the object sought to be achieved by the
disposition.
See D. S. Nakara & others v. Union of India, [1983] 2
S.C.R. 165 at 179.
Further, the Tribunal modified certain portions of the
impugned memorandum and directed that the provisions should
be made for those who opt to continue in the PCO at
Kharagpur after the issue of the Circular dated 13.9.1984 so
that they may be given an opportunity to exercise their
option in this regard and be provided with avenue for
promotion within the PCO. Previously, in 1963 such option
was provided and it was stipulated that employees
permanently absorbed in the PCO or directly recruited in the
PCO who did not exercise option in favour of transfer, they
would be considered for promotion along with others to
higher grade posts in the PCO only. In our opinion, it was
done to help the petitioners.
In the aforesaid view of the matter, the Tribunal was
right in rejecting the contentions urged on behalf of the
petitioners. The challenge to the Tribunal’s order,
therefore, cannot be entertained.
Before concluding it is worthwhile to note that none
appeared for the petitioners when the matter was called on.
The matter was called twice. We have disposed of the matter
on perusing the order of the Tribunal and also upon
considering the submissions made by the respondents. The
application, therefore, fails and dismissed. No order as to
cost
P.S.S. Petition dismissed.
431