Reservation rules are inapplicable to financial upgradation simpliciter involving no change in duties or cadre restructuring.

The applicants, working as Senior Section Engineers (C&W) in the Western Railway, challenged an order dated 16.06.2023. This order implemented an upgradation of pay structure to Grade Pay Rs. 4800/- from Rs. 4600/-.

The department notified 45 vacancies (36 General, 6 SC, 3 ST), but the final list upgraded 13 SC and 9 ST employees, effectively applying reservation to unreserved posts.

The applicants, belonging to the General category, contended they were senior to several upgraded employees and that applying reservation rules to a mere financial upgradation (upgradation simpliciter) was legally impermissible.

1. Whether the rule of reservation is applicable in cases of "upgradation simpliciter" where there is only a financial benefit without a change in rank, duties, or responsibilities.

2. Whether the impugned order dated 16.06.2023, which granted reserved category candidates posts beyond their allocated quota in a pay upgradation exercise, is legally sustainable.

The court primarily relied on the principles established by the Hon'ble Supreme Court in Bharat Sanchar Nigam Limited v. R. Santhakumari Kumari, which distinguished between "promotion" and "upgradation".

The rule posits that "promotion" involves advancement in rank or a selection process, attracting reservation rules, whereas "upgradation simpliciter" merely confers a financial benefit by raising the pay scale without changing the post's duties.

The court noted that where restructuring results in existing posts being placed in a higher grade to provide relief against stagnation without creating additional posts through selection, reservation does not apply.

The Tribunal found that the contested upgradation was an "upgradation simpliciter" rather than a promotion. This conclusion was based on the fact that there was no change in nomenclature, designation, duties, or responsibilities, and the posts remained classified as Group "C".

Applying the BSNL precedent, the Tribunal reasoned that since no selection process involving comparative merit was conducted, the process did not attract reservation rules.

The Tribunal observed that the respondents admitted to upgrading 13 SC and 9 ST employees against a quota of only 6 and 3 respectively, thereby erroneously applying reservation to financial upgradation and superseding senior General category candidates.

The Tribunal directed the respondents to revisit the issue, publish a fresh select list based on seniority/eligibility without applying reservation, and consider the applicants for financial upgradation from the due date within 90 days. The Original Application was allowed.