Supreme Court Sets Aside High Court Order Directing Appointment of Field Supervisors Due to Lack of Vacancies. Inclusion in Selection List Does Not Confer Indefeasible Right to Appointment Under Employment Law.

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Case Note & Summary

The dispute arose from a judgment of the Allahabad High Court directing a bank to appoint certain respondents as Field Supervisors and Probationary Officers. The respondents had applied for these positions following an advertisement issued in 1983 and were included in a list of successful candidates. However, despite the increase in the number of posts, the bank appointed fewer candidates than the available vacancies. The respondents contended that they were entitled to appointment based on their inclusion in the merit list and subsequent agreements extending the validity of the selection panel. The bank countered that inclusion in the list did not confer an indefeasible right to appointment and that the life of the panel had expired. The High Court concluded that vacancies existed and directed the bank to appoint the respondents. The Supreme Court, upon review, found that the High Court erred in its conclusions regarding the existence of vacancies and the binding nature of the agreements. The Court held that the inclusion in the list did not guarantee appointment and that the life of the selection panel was limited to one year, extendable only under specific conditions. Consequently, the Supreme Court set aside the High Court's order and dismissed the writ petitions filed by the respondents.

Headnote

A) Employment Law - Right to Appointment - Indefeasible Right - Inclusion in the list of successful candidates does not confer an indefeasible right to appointment - Constitution of India, Articles 14 and 16 - The court held that mere inclusion in the merit list does not guarantee appointment, and the bank is not legally bound to fill all vacancies. (Paras 6-7).

B) Employment Law - Validity of Selection Panel - Duration of panel validity - Regional Rural Banks Act, 1976, Section 24 - The court found that the life of the selection panel is ordinarily one year, and the High Court erred in extending it beyond this period based on incorrect reliance on a circular. (Paras 8-9).

C) Employment Law - Mandamus Issuance - Court's authority to direct appointments - The court concluded that the High Court's direction to appoint respondents was erroneous as the agreement did not confer a right to appointment, and the court cannot enforce such rights through mandamus. (Paras 10-11).

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Issue of Consideration

Whether the High Court was justified in concluding that vacancies existed and whether inclusion in the selection list conferred a right to appointment.

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Final Decision

The Supreme Court set aside the High Court's judgment and dismissed the writ petitions, ruling that the respondents had no indefeasible right to appointment and that the life of the selection panel had expired.

Law Points

  • Indefeasible right to appointment
  • Validity of selection panel
  • Mandamus issuance
  • Employment law principles
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Case Details

1998 LawText (SC) (09) 20

1998-09-09

Sujata V. Manohar, G.B. Pattanaik

Mr. Mehta, Mr. Rakesh Dwivedi

Rani Laxmibai Kshetriya Gramin Bank Chairman

Chand Behari Kapoor & Ors., Kantya Naowani & Ors.

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Nature of Litigation

Challenge to the High Court's order regarding appointment of bank employees.

Remedy Sought

Respondents sought appointment as Field Supervisors and Probationary Officers.

Filing Reason

Respondents claimed entitlement to appointment based on selection list and agreements.

Previous Decisions

High Court directed the bank to appoint respondents, which was contested by the bank.

Issues

Existence of vacancies for appointment Indefeasible right to appointment from selection list Validity period of selection panel Enforceability of agreements regarding appointments

Submissions/Arguments

Bank argued no vacancies existed and inclusion in the list does not guarantee appointment. Respondents contended that the bank acted arbitrarily in not filling vacancies.

Ratio Decidendi

Inclusion in a selection list does not confer an indefeasible right to appointment; the life of a selection panel is ordinarily one year, extendable only under specific conditions.

Judgment Excerpts

Inclusion in the list of successful candidates does not confer an indefeasible right to appointment. The life of the selection panel is ordinarily one year. The High Court committed serious error in issuing the impugned directions.

Procedural History

The case originated from a judgment of the Allahabad High Court directing the bank to appoint respondents, which was subsequently appealed to the Supreme Court.

Acts & Sections

  • Regional Rural Banks Act, 1976: Section 24
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