Supreme Court

Non-communication of ACR entries combined with destruction of records during litigation necessitates notional promotion and pensionary benefits.

Dr. Indira Saranath vs Union Of India

Supreme CourtJUDGMENT: May 26, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellant, a member of the Indian Railway Medical Service (IRMS), challenged her non-promotion to the post of Chief Medical Director in the Higher Administrative Grade (HAG)

Source reference: p. 1-2

Though eligible, she was bypassed on 06.12.2006 in favor of a junior officer

Source reference: p. 2

The Selection Committee (SC) denied her promotion on the grounds that she failed to meet the benchmark of ‘Very Good +’ (VG+), as she did not have two ‘Outstanding’ and three ‘Very Good’ ratings in the preceding five years

Source reference: p. 2-3

The Central Administrative Tribunal dismissed her claim on 22.05.2007, and the Delhi High Court upheld this on 09.01.2009

Source reference: p. 2-3

The appellant contended that the Railways used an incorrect benchmark in violation of DoPT norms, failed to communicate adverse/lower ACR entries, and inadvertently weeded out her service records during the pendency of litigation

Source reference: p. 4-6
02

Issues

1. Whether the Ministry of Railways is bound by the Office Memorandums (OM) issued by the DoPT regarding promotion benchmarks or if it can frame its own criteria

Source reference: p. 7/11

2. Whether the non-communication of ACR entries (which were ‘Very Good’ but below the required benchmark for promotion) caused prejudice and entitled the appellant to relief

Source reference: p. 10/15

3. Whether an adverse inference should be drawn against the respondents for the destruction of service records during the pendency of the appeal

Source reference: p. 6/22
03

Law Applied

Government of India (Allocation of Business) Rules, 1961, establishing that the Ministry of Railways has the power to frame its own service conditions and is not bound by DoPT circulars unless specifically adopted

Source reference: p. 7/12

Prabhat Ranjan Singh v. R.K. Kushwaha (2018) to affirm the Railways' autonomy in rule-making

Source reference: p. 11-12

Dev Dutt v. Union of India (2008) and the larger bench decision in Sukhdev Singh v. Union of India (2013), which mandate that every entry in an ACR (regardless of nomenclature) must be communicated to a public servant if it has civil consequences, such as affecting promotion chances

Source reference: p. 15/21

Abhijit Ghosh Dastidar v. Union of India (2008) regarding retrospective benefits for non-communication

Source reference: p. 19
04

Reasoning

The Court first clarified that the ‘VG+’ benchmark was validly applied because the Railways, under the 1961 Rules, had specifically prescribed it via a 2002 Circular, overriding general DoPT OMs

Source reference: p. 13-14

Based on Dev Dutt, the Court reasoned that even ‘Very Good’ entries must be communicated if they act as a ‘technical’ bar to promotion

Source reference: p. 21-22

The appellant had proactively requested her ACRs in 2005, yet they were withheld

Source reference: p. 16/20

The SC’s award of “19.5 marks” was found arbitrary as the 1996 policy only allowed whole numbers (e.g., 4 points for Very Good), and the respondents failed to justify the fraction

Source reference: p. 23-24

The Court drew an adverse inference against the Railways for “inadvertently” weeding out the appellant’s records in 2013 despite the ongoing litigation, concluding that these cumulative factors resulted in a denial of fair treatment

Source reference: p. 22/26
05

Holding

The Court allowed the appeal, setting aside the judgments of the Tribunal and the High Court

It held that the appellant was prejudiced by the non-supply of ACRs, the destruction of records, and the arbitrary award of fractional points

Source reference: p. 26

The Court granted the appellant notional promotion to the HAG grade (₹22,400-24,500) and directed the re-fixation of her pension and retiral benefits based on that grade. However, direct arrears of salary (backwages) were denied on the ground that no actual work was performed in that post. Arrears of pension must be paid within two months

Source reference: p. 27-28
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Dr. Indira SaranathvsUnion Of India

Supreme Court · May 26, 2026

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