Full Judgment Text
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PETITIONER:
ANIL KUMAR SONI
Vs.
RESPONDENT:
THE MANAGING DIRECTOR, PUNJAB FINANCIALCORPORATION AND ANR.
DATE OF JUDGMENT25/07/1991
BENCH:
KASLIWAL, N.M. (J)
BENCH:
KASLIWAL, N.M. (J)
PUNCHHI, M.M.
CITATION:
1991 AIR 1840 1991 SCR (3) 184
1991 SCC (3) 624 JT 1991 (3) 315
1991 SCALE (2)219
ACT:
Punjab Financial Corporation (Staff) Regulations, 1961
--Regulation 19(2)--Termination of service of an employee
from the post of Assistant Manager on the basis of Board’s
Resolution, who was confirmed in the post of Assistant
Technical Officer--Whether justified-Board’s
Resolution--Object of--Appointment in new cadre post-Meaning
of.
HEADNOTE:
The appellant was appointed as Assistant Technical
Officer in the Punjab Financial Corporation and was con-
firmed as Assistant Technical Officer (Textiles) on
14.7.1976. Thereafter he applied for the post of Assistant
Manager, which was to be filled up by direct recruitment and
he was selected and appointed as Assistant Manager on proba-
tion on 26.5.1980. The period of probation of the appellant
was extended from time to time and ultimately the Respond-
ent-Corporation vide its order dated 11th May 1984 terminat-
ed the service of the appellant.
The appellant being aggrieved, filed a writ petition,
which was dismissed by the High Court against which this
Appeal was made.
The appellant contended that even if the order of termi-
nation from the post of Assistant Manager during the period
of probation was held to be proper, still he was entitled to
continue on the post of Assistant Technical Officer on which
he was admittedly confirmed.
The Corporation contended that as soon as the appellant
was selected for the post of Assistant Manager, the earlier
post of Assistant Technical Officer held by the appellant
stood abolished; that there was no post of Assistant Techni-
cal Officer on which the appellant could have been appointed
after his termination of service from the post of Assistant
Manager; and that mere selection on the new cadre post of
Assistant Manager was sufficient for abolishing the post of
Assistant Technical Officer.
Partly allowing the appeal of the employee, this Court,
185
HELD. 1.01. The object of the resolution of the Board
was that if an employee of the Corporation was inducted in
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the new cadre post then the post already held by him shall
be abolished from the date of such appointment in the new
cadre. The entire purpose of such resolution was that if an
employee of the Corporation was appointed in the new cadre
post, to be filled up by direct recruitment, then the Corpo-
ration did not want to continue the earlier post held by
such employee of the Corporation. Thus in the scheme of
things such appointment of the employee of the Corporation
to the new cadre posts ought to have been confirmed appoint-
ment. [187E-G]
1.02. It would be against all canons of justice that
confirmed employee of the Corporation though allowed to
compete for a new cadre post by direct recruitment, but
having not been confirmed on such post, is rat allowed to
claim his right even on the lower post on which he had
permanent lien to continue. It would be a travesty of jus-
tice to throw the person on the streets after a period of
service of nine years in the Corporation. [187G-H]
1.03. The post of Assistant Technical Officer held by
the appellant as a confirmed employee, could have only been
abolished in case he was confirmed on the post of Assistant
Manager. [187H]
1.04. The appointment in the new cadre post as mentioned
in the resolution of the Board means confirmed appointment
on such post. [188A-B]
1.05. The order of termination of the appellant so far
as the post of Assistant Manager is concerned is upheld, the
respondent--Corporation is directed to allow the appellant
to continue on the post of Assistant Technical Officer
(Textiles) on which he had already been confirmed on
14.7.1976 with all the back wages and other benefits. In
case no post of Assistant Technical Officer (Textiles) is
existing in the Corporation, the appellant can be appointed
on any other equivalent post carrying the same scale of pay
which the appellant was drawing on the post of Assistant
Technical Officer. [188B-D]
JUDGMENT:
CIVIL APPELLATE JURISIDICTION: Civil Appeal No. 2835
1986.
From the Judgment and Order dated 9.5.1985 of the Punjab
and Haryana High Court in Civil Writ petition No. 5328 of
1985.
M.K. Ramamurthi. and S.S. Rana for the Appellant.
186
Dr. K.S. Sidhu, Ms. Maldeep Sidhu, J.C. Bubber, Sr.
Personal Manager, PFC with him for the Respondents.
The Judgment of the Court was delivered by
KASLIWAL, J. This appeal by special leave is directed
against the decision of the Punjab & Haryana High Court
dated 9.5. 1985. The appellant Anil Kumar Soni was appointed
as Assistant Technical Officer in the Punjab Financial
Corporation (hereinafter referred to as ’the Corporation’).
The appellant was confirmed as Assistant Technical Officer
(Textiles) on 14.7. 1976. The appellant then applied for the
post Of Assistant Manager which was to be filled up by
direct recruitment. The appellant was selected and appointed
as Assistant Manager on probation on 26.5. 1980. The period
of probation of the appellant was extended from time to time
and ultimately the Corporation with its order dated 11th
May, 1984 terminated the service of the appellant in exer-
cise of the powers conferred by Regulation 19(2) of the
Punjab Financial Corporation (Staff) Regulations, 1961. The
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appellant aggrieved against the order the termination filed
a writ petition which came to be dismissed by the High CoUrt
by the impugned order dated 9.5. 1985.
The only contention raised by Shri M.K. Ramamurthy,
learned Senior counsel which appealed to us, is that even if
the impugned order of termination from the post of Assistant
Manager during the period of probation was held to be prop-
er,-still the appellant was entitled to continue on the post
of Assistant Technical Officer on which he was admittedly
confirmed as back as 14.7. 1976. In order to consider this
aspect of the matter it would be proper to consider the
respective contentions raised by the learned counsel for the
appellant as well as the Corporation. The High Court in this
regard took the view that so far as the post i.e. Assistant
Technical Officer which the appellant held before he was
selected for the post of Assistant Manager is concerned,
stood abolished from the date he was appointed to the post
of Assistant Manager in view of the resolution of the Board
(Annexure R-1/3). The relevant part of the aforesaid Resolu-
tion reads as under:
"The various levels of posts, subject to such modifications
as may be decided by the Board, may be advertised. Officers
of the Corporation who fulfil the requisite qualifica’tions
and experience, may apply for these posts and may compete
with the candidates from the open market. Within the overall
187
strength proposed earlier. Officers may be
selected to various levels of hierarchy depending upon their
professional competence and experience...............
The. posts now held by the employees of the Corporation, who
happen to be inducted into the new cadre posts, shall be
abolished from the date of their appointment to the new
cadres..........
Taking support from the above resolution it has been
contended on behalf of the Corporation that as soon as the
appellant was selected for the post of Assistant Manager,
the earlier post of Assistant Technical Officer held by the
appellant stood abolished. It has thus been contended that
there was no post of Assistant Technical Officer on which
the appellant could have been appointed after his termina-
tion of service from the post of Assistant Manager by the
impugned order dated 9.5. 1985.
We see no force in the above contention. It is an admit-
ted position that the appellant was a permanent employee of
the Corporation’ having been confirmed as Assistant Techni-
cal Officer on 14.7. 1976. The Corporation advertised the
posts of Assistant Manager to be filled up by direct re-
cruitment and the employees of the Corporation were also
allowed to compete with the candidates from the market. The
appellant was no doubt selected and appointed as Assistant
Manager on probation on 26.5.1980 but his services were
terminated on 11.5. 1984 during the period of probation and
before the confirmation of the appellant on the said post.
The object of the resolution of the Board extracted above
was that if an employee of the Corporation was inducted the
new cadre post then the post already held by him shall be
abolished from the date of such appointment in the new
cadre. The entire purpose of such resolution was that if an
employee of the Corporation was appointed in the new cadre
post to be filled up by direct’ recruitment then the Corpo-
ration did not want to continue the earlier post held by’-
such employee of the Corporation. Thus in the scheme of
things such appointment of the employee of the Corporation
to the new cadre posts ought to have been confirmed appoint-
ment. It would be against all canons of justice that con-
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firmed employee of the Corporation though allowed to compete
for a new cadre post by direct recruitment but having not
been confirmed on such post is not allowed to claim his
right even on the lower post on which he had permanent lien
to continue. It would be a travesty of justice to throw the
person on the streets after a period of service of nine
years in the Corporation. The post of Assistant Technical
Officer held by the appellant as a confirmed employee. could
have only been abolished in case he was
188
confirmed on the post of Assistant Manager. The contention
of the learned counsel for the Corporation that mere selec-
tion on the new cadre post of Assistant’ Manager was suffi-
cient for abolishing the post of Assistant Technical Officer
cannot be accepted. The appointment in the new cadre post as
mentioned in the resolution of the Board means confirmed
appointment on such post.
In the result we allow the appeal in part, set aside the
order of the High Court dated 9.5. 1985 and uphold the
impugned order of termination of the appellant so far as the
post of Assistant Manager, is concerned, but direct the
respondent Corporation to allow the appellant to continue on
the post of Assistant Technical Officer (Textiles) on which
he had already been confirmed on 14.7. 1976 with all the
wages and other benefits. It is, however made clear that in
case no post of Assistant Technical Officer (Textiles) is
existing in the Corporation, the appellant can be appointed
on any other equivalent post carrying the same scale of pay
which the appellant was drawing on the post of Assistant
Technical Officer. The Corporation shall pass appropriate
orders to comply our direction within one month from today.
The parties to bear their own costs.
V.P.R. Appeal partly allowed.
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