CAT - ['Ernakulam']

Relaxation of Recruitment Rules and Diversion of Quotas are Matters of Policy Within the Employer's Absolute Discretion

Neethy V P vs COMPTROLLER AND AUDITOR GENERAL OF INDIA

CAT - ['Ernakulam']JUDGMENT: May 21, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicants are Multi-Tasking Staff (MTS) under the Director General of Audit (Respondent No. 2) who qualified for the Departmental Examination for promotion to the post of Auditor

Source reference: p. 3

Under the Recruitment Rules (RR) of 2000, 50% of Auditor posts are filled by promotion (of which a portion is set apart for examination-qualified candidates) and 50% by direct recruitment (DR)

Source reference: p. 3-4

In 2022, a circular relaxed the RRs, increasing the promotion quota for exam-qualified candidates to 25%

Source reference: p. 4

The applicants sought a further relaxation—specifically the diversion of unfilled DR quota vacancies to the promotion quota—arguing that such relief was granted by the 1st Respondent in 2010 and 2020

Source reference: p. 5-6

They challenged Annexures A-12 and A-16, wherein the respondents refused this diversion and insisted on maintaining the distinct recruitment quotas

Source reference: p. 7

During proceedings, the respondents clarified that initial vacancy calculations were erroneous and that "Persons in Position" (PIP) actually exceeded the sanctioned strength

Source reference: p. 10
02

Issues

1. Whether the applicants have a legal right to demand a relaxation of Recruitment Rules or the diversion of unfilled direct recruitment vacancies to the promotion quota based on past precedents

Source reference: p. 11-12

2. Whether the respondents’ decision to maintain separate quotas for direct recruitment and promotion violates the fundamental rights of the applicants

Source reference: p. 10, 13
03

Law Applied

The Tribunal applied the principle that relaxation of Recruitment Rules is a matter of policy and a discretionary power of the competent authority, not a vested right of the employee

Source reference: p. 12

The Supreme Court ruling in A.N. Sehgal & others v. Rajeram Sheoran & others regarding the right to be considered for promotion

Source reference: p. 10

The administrative principle that an employer is not legally bound to fill existing vacancies and that relaxation granted to one cadre (e.g., SAS passed officials) does not automatically entitle another cadre to similar benefits

Source reference: p. 12-13, 14
04

Reasoning

The Tribunal reasoned that the power to grant relaxation under Rule 5 of the RRs is periodic and based on the prevailing needs of the department

Source reference: p. 7, 12

It noted that the 1st Respondent had only granted such relaxations in specific years (2010 and 2020), which does not confer a permanent legal right upon the applicants to demand the same for subsequent years

Source reference: p. 12

Regarding the alleged 32 vacancies, the Tribunal accepted the respondents' clarification that these were calculated erroneously due to data lags; factually, the "Persons in Position" (34) already exceeded the sanctioned strength (32)

Source reference: p. 13-14

The Tribunal found that the decision to prioritize direct recruitment for its specific quota or to relax rules for SAS-qualified officials fell within the domain of executive policy

Source reference: p. 12-13

Since no recruitment rules were arbitrarily violated and PIP was in excess, no fundamental right to promotion was infringed

Source reference: p. 14
05

Holding

The applicants possess no legal right to compel the administration to divert recruitment quotas or relax statutory rules

The Tribunal dismissed the Original Application, affirming that the diversion of vacancies is a policy decision and noticing that the cadre was already over-strength. No costs were awarded

Source reference: p. 14
CAT - ['Ernakulam']

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Neethy V PvsCOMPTROLLER AND AUDITOR GENERAL OF INDIA

CAT - ['Ernakulam'] · May 21, 2026

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