CAT - ['Cuttack']
Employment and Labour LawAdministrative and Public Law

Past regular service counts toward promotion eligibility despite bottom seniority after inter-charge transfer.

Rama Chandra Mahakhuda vs REVENUE

CAT - ['Cuttack']JUDGMENT: August 25, 20264 MIN READSOURCE JUDGMENT
Past regular service counts toward promotion eligibility despite bottom seniority after inter-charge transfer.. Rama Chandra Mahakhuda vs REVENUE. CAT - ['Cuttack']. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicant was appointed as Stenographer Grade-II in the Karnataka and Goa Region on 23 July 2012 and was subsequently promoted as Stenographer Grade-I on 31 March 2017.

Source reference: para. 2

Pursuant to an inter-charge transfer on compassionate grounds, he was relieved from the Karnataka and Goa Region on 31 March 2017 and joined the Odisha Region on 3 April 2017, with bottom seniority and pay protection.

Source reference: para. 3

The transfer was governed by the CBDT’s instructions dated 14 May 1990, under which past service in the old charge would not count for seniority in the new charge.

Source reference: para. 7

The respondents treated this condition, together with the applicant’s undertaking, as excluding his past service for determining eligibility for promotion to Income Tax Inspector.

Source reference: paras. 7–10, 13

The applicant relied on the Supreme Court’s decision in Pratibha Rani v. Union of India, arising from Union of India v. C.N. Ponnappan, contending that past regular service could not be disregarded for promotional eligibility merely because he had been transferred to another region.

Source reference: paras. 4–6, 16

His representations were rejected by order dated 14 October 2022, which he challenged before the Tribunal.

Source reference: para. 6
02

Issues

Whether regular service rendered by the applicant in the Karnataka and Goa Region before his inter-charge transfer to Odisha could be counted for determining his eligibility for promotion to Income Tax Inspector.

Source reference: paras. 13–17

Whether the applicant’s undertaking to accept bottom seniority and the CBDT’s transfer instructions barred recognition of his past service for promotional eligibility.

Source reference: paras. 15–17

Whether the respondents were required to convene a review Departmental Promotion Committee and reconsider the applicant’s promotion with reference to the combined qualifying service.

Source reference: para. 17
03

Law Applied

The Tribunal applied the CBDT’s instruction dated 14 May 1990, which provides that service rendered in the old charge will not count for seniority and that the transferee will be placed at the bottom of the seniority list in the new charge.

Source reference: para. 13

It distinguished seniority from eligibility for promotion and relied on the CBDT clarification dated 27 October 2011, which expressly preserves a transferred employee’s eligibility of the parent Commissionerate for promotion to the next higher grade.

Source reference: para. 14

The Tribunal followed Union of India v. C.N. Ponnappan, (1996) 1 SCC 524, holding that regular service rendered before compassionate transfer remains valid experience for promotional eligibility and is not extinguished by bottom seniority.

Source reference: para. 16

It also relied on M.M. Thomas v. Union of India, (2017) 13 SCC 722, which recognised that the qualifying-service requirement may be satisfied by aggregating service rendered in different regions.

Source reference: para. 16

It also relied on Pratibha Rani v. Union of India, Civil Appeal No. 3792 of 2019, decided on 10 April 2019, which directly held that pre-transfer service must be counted for eligibility for promotion.

Source reference: para. 16
04

Reasoning

The Tribunal held that the 14 May 1990 instruction affected only the applicant’s seniority in the Odisha Region; it did not state that regular service rendered in the previous region would be excluded from the minimum service required for promotion.

Source reference: para. 13

The applicant’s placement at the bottom of the seniority list protected the promotional interests of existing employees in Odisha, but did not erase his earlier regular service or experience in the same cadre.

Source reference: no citation

The Tribunal further found that the respondents had identified no statutory rule or valid administrative instruction excluding such service from promotional eligibility.

Source reference: paras. 13, 15

The undertaking executed by the applicant could not override the Recruitment Rules or the governing legal principle that regular service is relevant for determining eligibility.

Source reference: paras. 15–17

Following Pratibha Rani and C.N. Ponnappan, the Tribunal concluded that service in the previous region and service in the transferred region had to be considered cumulatively for the limited purpose of eligibility, while seniority would continue to operate independently.

Source reference: paras. 15–17
05

Holding

The Tribunal quashed the respondents’ order dated 14 October 2022 and held that the applicant’s regular service rendered in the Karnataka and Goa Region before his transfer to Odisha must be counted for determining his eligibility for promotion to Income Tax Inspector.

The respondents were directed to convene a review DPC and reconsider the applicant’s case on that basis.

Source reference: para. 17

His seniors in the Odisha Region were also to be considered in accordance with the Recruitment Rules.

Source reference: para. 17

If found eligible, the applicant was to receive promotion on a notional basis from the appropriate date until the date on which he actually assumed charge of the promotional post.

Source reference: para. 17

The OA was allowed to that extent, pending miscellaneous applications were disposed of, and no order as to costs was made.

Source reference: no citation
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Linked provisions open on LawLens.

Administrative Tribunals Act, 19851

Section 19
CAT - ['Cuttack']

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Rama Chandra MahakhudavsREVENUE

CAT - ['Cuttack'] · August 25, 2026

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