Case Note & Summary
The case involved appeals concerning the entitlement of employees in the State of Rajasthan to Selection Grades after completing specified years of service. The primary question was whether employees could receive these grades automatically despite having earned censure in their service records. The State had issued an Office Order in 1992 outlining the conditions for granting Selection Grades, which included a requirement for a satisfactory service record. A subsequent circular in 1995 clarified that while censure would not disqualify an employee from receiving a Selection Grade, it would defer the grant by one year. The court noted that the High Court had misinterpreted previous judgments, leading to erroneous decisions favoring employees without considering their service records. The Supreme Court held that the State's policy was reasonable, allowing for differentiation between employees based on their service records, thus upholding the classification under Article 14 of the Constitution. The court ruled that the State could not recover amounts already paid to employees under the initial order and set aside the High Court's orders that had favored the employees. The decision emphasized the need for clarity in the application of service rules and the importance of maintaining a satisfactory service record for promotions and benefits.
Headnote
A) Administrative Law - Selection Grade Eligibility - Conditions for Grant - Rajasthan Government Order, 1992 - Court clarified that employees with censure are not automatically entitled to Selection Grade after 9, 18, or 27 years of service; their grant is deferred by one year. The court emphasized the importance of maintaining a satisfactory service record for eligibility, aligning with principles of equality under Article 14 of the Constitution. Held that the State's policy is reasonable and justifiable (Paras 15-24).
Issue of Consideration
Whether an employee is entitled to Selection Grade automatically after specified years of service despite having earned censure.
Final Decision
The Supreme Court allowed the appeals, set aside the High Court's orders, and clarified that employees with censure would have their Selection Grade deferred by one year. The court ruled that the State could not recover amounts already paid to employees and emphasized the importance of a satisfactory service record for eligibility.
Law Points
- Selection Grade
- service record
- censure
- promotion
- Article 14
- reasonable classification



