Case Note & Summary
The dispute arose between Bharat Sanchar Nigam Ltd. and its employees regarding the application of reservation rules to the upgradation of posts under the Biennial Cadre Review (BCR) scheme. The telecom department had introduced the BCR scheme to alleviate stagnation among employees by upgrading a percentage of posts based on seniority and performance. The employees challenged the government's application of reservation rules to these upgraded posts, arguing that such upgradation did not constitute promotion. The Central Administrative Tribunal initially ruled against the application of reservation rules, a decision upheld by the Gujarat High Court. However, a Full Bench of the Tribunal later ruled that the upgradation amounted to promotion, thus attracting reservation provisions. The Supreme Court analyzed the distinction between upgradation and promotion, referencing various precedents. It concluded that the BCR scheme did not create additional posts but merely upgraded existing ones, and the screening process for suitability did not involve comparative merit or selection. Therefore, the court held that the principles of reservation did not apply to the upgradation of posts under the BCR scheme, affirming the government's position.
Headnote
A) Administrative Law - Upgradation vs Promotion - Distinction between upgradation and promotion - Constitution of India, Article 16(4), 16(4A) - Upgradation involves financial benefits without changing duties or responsibilities, while promotion entails advancement in rank or grade. The court held that since the BCR scheme did not create additional posts but merely upgraded existing ones, reservation rules do not apply (Paras 21-22).
Issue of Consideration
Whether rules of reservation apply to the upgradation of posts under the Biennial Cadre Review scheme.
Final Decision
The Supreme Court upheld the government's decision, ruling that the BCR scheme did not create additional posts and therefore, the principles of reservation did not apply to the upgradation of posts.
Law Points
- upgradation vs promotion
- reservation principles
- Biennial Cadre Review
- seniority
- screening process


