Supreme Court Dismisses NHAI's Appeal in Deputation Service Counting Case — Deputation Service Counted as Regular Service for Promotion Despite Gap. Court upholds CAT and High Court orders directing NHAI to count deputation service of a Manager (Technical) for promotion to Deputy General Manager (Technical) under the one-time measure.

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Case Note & Summary

The case involves an appeal by the National Highway Authority of India (NHAI) against a judgment of the Madras High Court which upheld an order of the Central Administrative Tribunal (CAT) directing NHAI to count the deputation service of Respondent No.1, G. Athipathi, for promotion to the post of Deputy General Manager (Technical). The respondent initially worked as an Assistant Engineer with the Tamil Nadu Government and was appointed on deputation as Manager (Technical) with NHAI from 21.05.2008 to 13.06.2014. After repatriation, he applied for direct recruitment to the same post, was selected, and joined on 26.08.2015. NHAI issued a circular and the Executive Committee decided as a one-time measure to treat deputation service as regular service for promotion. However, the Screening Committee declared the respondent ineligible due to the gap between repatriation and re-joining. The CAT allowed his application, directing NHAI to count his deputation service and promote him with effect from 27.10.2017. The High Court dismissed NHAI's writ petition. The Supreme Court dismissed the appeal, holding that the one-time measure applied to the respondent, the gap was not his fault, and the direction to promote was valid. The Court noted that the respondent had already been promoted pursuant to the CAT order and found no reason to interfere.

Headnote

A) Service Law - Promotion - Counting of Deputation Service - National Highways Authority of India (Recruitment, Seniority and Promotion) Regulations, 1996 - The issue was whether deputation service rendered by an employee before his direct recruitment could be counted as regular service for promotion, despite a gap due to repatriation. The Court held that the one-time measure adopted by the Executive Committee allowed counting of deputation service as regular service, and the gap was not attributable to the employee's fault. (Paras 4-9, 16-18)

B) Service Law - Eligibility - Gap in Service - National Highways Authority of India (Recruitment, Seniority and Promotion) Regulations, 1996 - The Court considered whether a gap of over one year between repatriation and re-joining on direct recruitment disqualified the employee. It held that the gap was due to administrative formalities and the employee was not at fault; thus, the deputation service could be counted. (Paras 10-12, 16-18)

C) Service Law - Promotion - Selection Process - National Highways Authority of India (Recruitment, Seniority and Promotion) Regulations, 1996 - The Court examined whether the CAT could direct promotion without a selection process. It held that since the employee was eligible and the one-time measure applied, the direction to promote was valid, but the actual promotion would be subject to selection. (Paras 14, 18)

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Issue of Consideration

Whether deputation service rendered by an employee prior to his direct recruitment can be counted as regular service for the purpose of promotion to the next higher post, despite a gap in service due to repatriation to parent department.

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Final Decision

The Supreme Court dismissed the appeal, upholding the CAT and High Court orders. It held that the one-time measure applied to the respondent, the gap was not attributable to him, and the direction to promote was valid. The Court noted that the respondent had already been promoted and found no reason to interfere.

Law Points

  • Deputation service counted as regular service for promotion
  • Gap in service due to repatriation not a bar
  • One-time measure for deputationists
  • Eligibility criteria for promotion
  • Interpretation of Recruitment Regulations
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Case Details

2024 LawText (SC) (12) 92

Civil Appeal No. 14100 of 2024 (@ SLP (C) No. 18349 of 2023)

2024-12-09

Ahsanuddin Amanullah

2024 INSC 943

Mr. Santosh Kumar for appellant, Mr. A. Lakshminarayanan for respondent no.1

National Highway Authority of India

G Athipathi and Others

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Nature of Litigation

Civil appeal against High Court judgment upholding CAT order directing counting of deputation service for promotion.

Remedy Sought

Appellant NHAI sought to set aside the High Court and CAT orders and to deny counting of deputation service for promotion.

Filing Reason

NHAI challenged the CAT order which directed counting of deputation service of respondent no.1 for promotion to Deputy General Manager (Technical).

Previous Decisions

CAT allowed O.A. No.310/01633/2020 on 30.12.2020; High Court dismissed W.P. No.11060 of 2021 on 01.03.2023.

Issues

Whether deputation service rendered prior to direct recruitment can be counted as regular service for promotion despite a gap in service due to repatriation. Whether the CAT could direct promotion without a selection process.

Submissions/Arguments

Appellant: Respondent no.1 was not eligible as he had a gap of over one year between repatriation and re-joining; the one-time measure did not cover such gap; promotion is through selection, not automatic. Respondent no.1: The one-time measure applied to him; the gap was not his fault; he was similarly placed to other officers who were granted benefit.

Ratio Decidendi

Deputation service rendered prior to direct recruitment can be counted as regular service for promotion under a one-time measure, even if there is a gap due to repatriation, provided the gap is not attributable to the employee's fault. The direction to promote is valid if the employee is eligible and the measure applies.

Judgment Excerpts

It has also been decided to treat the deputation service (if any) rendered on the post of Manager (Technical) in NHAI as regular service for the purpose of promotion to the post of DGM (Technical). As a strict one time measure and a special case, the deputation service ... will be treated as regular service for the purpose of reckoning eligibility for the promotion to the post of DGM (Tech.).

Procedural History

Respondent no.1 filed O.A. No.310/00992/2019 before CAT, which was disposed of with direction to consider representations. After rejection, he filed O.A. No.310/01633/2020, which was allowed on 30.12.2020. NHAI challenged this in W.P. No.11060 of 2021 before Madras High Court, which was dismissed on 01.03.2023. NHAI then appealed to Supreme Court via SLP (C) No.18349 of 2023, which was converted to Civil Appeal No.14100 of 2024.

Acts & Sections

  • National Highways Authority of India (Recruitment, Seniority and Promotion) Regulations, 1996: Schedule, Regulation 12(2)
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