Supreme Court Sets Aside High Court Judgment in Service Promotion Case Due to Factual Error and Overlapping Issues. The Court Ordered Transfer of Writ Petition from Allahabad High Court to Delhi High Court for Joint Hearing with Related Petition Regarding Promotion Grievances Across Multiple Years.

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Case Note & Summary

The dispute originated from the appellant's grievance regarding non-promotion from Deputy Manager (Scale III) to Manager (Scale IV) in an insurance company. The appellant had previously challenged non-promotion for 2014 through writ petitions before the High Court, which were dismissed. The Supreme Court, in a judgment dated 10 July 2019, held that non-communication of Annual Performance Appraisal Reports (APAR) for relevant years violated principles established in Dev Dutt vs Union of India and Sukhdev Singh vs Union of India, and directed communication of uncommunicated entries and consideration of the appellant's representation. The present appeal concerned non-promotion for subsequent years 2015 and 2016. The High Court, in its impugned judgment dated 6 August 2018, dismissed the writ petition, erroneously observing that previous orders regarding 2014 promotion had attained finality since they were not challenged. The appellant contended that this was incorrect as the Supreme Court had indeed addressed those orders. The Supreme Court found that promotion grievances for 2014, 2015 and 2016 involved overlapping parameters under the 2006 promotion policy, particularly APARs reflecting work record. Since the 2014 grievance was pending before the Delhi High Court following the Supreme Court's earlier directions, and the High Court had made a factual error regarding challenge to previous orders, the Supreme Court set aside the impugned judgment. The Court directed transfer of the writ petition from the Lucknow Bench of Allahabad High Court to Delhi High Court for joint hearing with the pending petition regarding 2014 promotion, while expressly keeping all rights and contentions open and not expressing any opinion on the merits of the 2015-2016 claim.

Headnote

A) Service Law - Promotion Grievances - Annual Performance Appraisal Reports (APAR) Communication - Non-communication of APAR entries violates natural justice principles established in Dev Dutt vs Union of India and Sukhdev Singh vs Union of India - The Supreme Court had previously directed communication of uncommunicated APAR entries for 2010-2011 and 2011-2012 taken into account for 2014-15 promotion exercise, allowing the appellant to submit representation - This established that failure to communicate APAR entries is contrary to law (Paras 6-7).

B) Service Law - Promotion Policy - Promotion Parameters - 2006 Promotion Policy parameters include written test, work record, seniority, and interview - APARs reflecting work record constitute a reckonable parameter in promotion exercises - Since APARs affect multiple promotion years, grievances across years cannot be considered in isolation due to overlap in parameters (Paras 11).

C) Civil Procedure - Transfer of Cases - Article 226 Constitution of India - Supreme Court transfers writ petition from Lucknow Bench of Allahabad High Court to Delhi High Court for joint hearing - The Court directed transfer of Service Bench No 10902 of 2016 to Delhi High Court to be heard together with Writ Petition Civil No 44 of 2021 pending before Delhi High Court - This ensures related promotion grievances for 2014, 2015 and 2016 are considered together expeditiously (Paras 12-13).

D) Judicial Review - Factual Error - High Court's erroneous observation that previous orders attained finality - The High Court incorrectly stated that judgments dated 6 October 2016 and 17 January 2017 were not challenged before higher forum - In reality, these became subject matter of Supreme Court decision dated 10 July 2019 - This factual error warranted setting aside the impugned judgment (Paras 9-10).

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Issue of Consideration

Whether the High Court erred in dismissing the appellant's writ petition regarding non-promotion for 2015 and 2016, particularly in light of overlapping issues with the pending 2014 promotion grievance and the High Court's erroneous observation about finality of previous orders

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Final Decision

The Supreme Court set aside the impugned judgment of the High Court dated 6 August 2018. The Court directed: (i) transfer of the writ petition (Service Bench No 10902 of 2016) from Lucknow Bench of Allahabad High Court to Delhi High Court; (ii) the transferred petition to be heard and decided together with Writ Petition Civil No 44 of 2021 pending before Delhi High Court; (iii) the setting aside not to be construed as expression of opinion on merits of 2015-2016 claim; (iv) Registrar (Judicial) at Lucknow Bench to ensure transfer of records. The appeal was disposed of accordingly.

Law Points

  • Non-communication of Annual Performance Appraisal Reports (APAR) violates principles of natural justice
  • promotion grievances across multiple years with overlapping parameters should be considered together
  • High Court's factual error regarding challenge to previous orders warrants setting aside judgment
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Case Details

2022 Lawtext (SC) (3) 126

Civil Appeal No. 2213/2022 (Arising from SLP(C) No.17024/2019)

2022-03-22

Dr. Justice D.Y. Chandrachud, Mr. Justice Surya Kant, Ms. Justice Bela M. Trivedi

Mr. Ravi Kumar, Mr. Rahul Kumar Sharma, Mr. Ronak Karanpuria, Mr. Abhishek Sharma, Ms. Gaurran for Appellant; Mr. P.P. Malhotra, Mr. Vineet Maolhotra, Mr. Mohit Paul, Mr. Vishal Gohri, Mr. Shubhendu Kaushik, Mr. Bikram Dwivedi, Ms. Sonia Malhotra Kumar for Respondent

Pankaj Prakash

United India Insurance Co. Ltd. & Ors.

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Nature of Litigation

Service matter regarding non-promotion from Deputy Manager (Scale III) to Manager (Scale IV)

Remedy Sought

Appellant seeking promotion for years 2015 and 2016 through writ petition under Article 226 of Constitution

Filing Reason

Grievance of not being promoted while juniors were promoted

Previous Decisions

High Court dismissed writ petition for 2014 promotion on 6 October 2016 and review petition on 17 January 2017; Supreme Court on 10 July 2019 directed communication of uncommunicated APAR entries and consideration of representation for 2014 promotion; High Court dismissed writ petition for 2015-2016 promotion on 6 August 2018

Issues

Whether the High Court erred in dismissing the writ petition regarding non-promotion for 2015 and 2016 given overlapping issues with pending 2014 grievance and factual error about finality of previous orders

Submissions/Arguments

Appellant's counsel argued about non-promotion grievance for 2015 and 2016 and overlapping with 2014 case Respondent's counsel represented by senior counsel Mr. P.P. Malhotra

Ratio Decidendi

Promotion grievances across multiple years with overlapping parameters should be considered together; High Court's factual error regarding challenge to previous orders warrants setting aside judgment; related petitions should be transferred for joint hearing to ensure comprehensive consideration.

Judgment Excerpts

The appeal arises from a judgment dated 6 August 2018 of a Division Bench at the Lucknow Bench of the High Court of Judicature at Allahabad By a judgment dated 10 July 2019, this Court held that the non-communication of the Annual Performance Appraisal Reports (APAR) for the relevant years was contrary to the decisions of this Court The High Court, in the course of its impugned judgment adverted to the outcome of the proceedings for the previous year This is evidently erroneous for the reason that the judgment of the High Court for 2014, became the subject matter of the decision of this Court dated 10 July 2019 We are, therefore, inclined to set aside the impugned judgment of the High Court dated 6 August 2018

Procedural History

Appellant filed writ petition under Article 226 regarding non-promotion for 2015-2016; High Court dismissed petition on 6 August 2018; Appellant filed Special Leave Petition; Supreme Court granted leave and converted SLP into Civil Appeal; Supreme Court heard appeal on 22 March 2022 and disposed of with directions for transfer and joint hearing.

Acts & Sections

  • Constitution of India: Article 226
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