Case Note & Summary
Background — This batch of writ petitions, filed before the Supreme Court of India, involved associations of Scheduled Castes and Scheduled Tribes employees working in several public sector banks. The petitioners challenged the non-implementation of reservation policy in promotions within Class-I service of these banks and sought various reliefs including mandamus to implement reservation, maintain roster system, fill backlog vacancies, and grant retrospective promotions with consequential benefits. Facts — The Government of India issued several Office Memoranda concerning concessions for SC/ST employees in promotions. The Office Memorandum dated 8 November 1963 provided reservation in Class-III and Class-IV posts filled by promotion, but no reservation for promotions to Class-II or higher. On 11 July 1968, fresh orders provided certain concessions for promotion by selection from Class-II to the lowest rung of Class-I, including upgradation of grading by one stage, confined to twenty-five per cent of vacancies. The crucial Office Memorandum dated 26 March 1970 extended concessions to promotions within Class-I, but limited to posts carrying an ultimate salary of Rs.2250/- per month or less. It stated that SC/ST officers who are senior enough in the zone of consideration and within the number of vacancies for the select list would be included in the select list if not considered unfit, without any extra grading. On 23 December 1974, the concession was reiterated. On 31 December 1977, the Ministry of Finance wrote to nationalised banks and State Bank of India about extending the scheme of reservation in promotions, enclosing a Reserve Bank of India scheme. On 30 May 1981, the Ministry of Finance clarified that as per Government orders, there is no reservation for SC/ST in promotion by selection within the officers cadre, but concessions and facilities per the 26 March 1970 O.M. apply up to Scale-III in Public Sector Banks/Financial Institutions. Legal Issues — The core question of law was the precise nature and character of the concession provided to SC/ST employees in promotions within Class-I in public sector banks, and whether the Office Memorandum dated 26 March 1970 created a reservation or merely a concession. The interpretation of the formula regarding zone of consideration and select list was also central. Arguments — The petitioners contended that reservation policy should apply to promotions within Class-I in public sector banks, requiring roster maintenance, filling of backlog vacancies since 1978, and retrospective promotions with consequential benefits. The respondents' arguments are not detailed in the available excerpt, but the Government orders were relied upon to define the scope of concessions. Court's Analysis — The Court reviewed the series of Office Memoranda and letters. It highlighted that the O.M. dated 26 March 1970 expressly did not speak of reservation; it spoke of concessions and facilities. The concession was limited to posts within Class-I carrying an ultimate salary of Rs.2250/- per month or less. The formula for inclusion of SC/ST officers in the select list required that they be senior enough in the zone of consideration, within the number of vacancies, and not unfit for promotion. Their position in the select list would remain as per record of service, with no extra grading. The Court noted that the Ministry of Finance letter dated 30 May 1981 clarified that there is no reservation for SC/ST in promotion by selection within the officers cadre, but concessions and facilities under the 1970 O.M. apply up to Scale-III. Decision — The final operative directions are not available in the provided judgment excerpt. The Court's analysis focused on determining the nature of the concession, emphasising that the O.M. provided concessions and facilities, not reservation, for SC/ST officers in promotions within Class-I in public sector banks.
Headnote
A) Service Law - Promotion by Selection - Concession versus Reservation - Office Memorandum No.1/9/69-Est(SCT) dated 26 March 1970, Ministry of Home Affairs - The Court examined whether the O.M. provided reservation or concession for SC/ST officers in promotions within Class-I. It noted that the O.M. did not speak of reservation but of concessions and facilities limited to posts within Class-I carrying ultimate salary of Rs.2250/- per month or less. Held that the nature of the concession is distinct and does not amount to reservation (Paras 4-5). B) Service Law - Promotion by Selection - Zone of Consideration and Select List - Office Memorandum No.1/9/69-Est(SCT) dated 26 March 1970 - The concession required that SC/ST officers who are senior enough in the zone of consideration for promotion so as to be within the number of vacancies for which the select list has to be drawn up would be included in the select list provided they are not considered unfit for promotion. Their position in the select list would be the same as assigned by the Departmental Promotion Committee on the basis of their record of service, without any extra grading. Held that this formula is the key to the concession and not reservation (Paras 4-5). C) Banking Law - Public Sector Banks - Applicability of Government Orders - Ministry of Finance letter No.F.1/45/78-SGT(B) dated 30 May 1981 - The letter clarified that as per Government orders, there is no reservation for SC/ST in promotion by selection within the officers cadre, but certain concessions and facilities are to be provided in accordance with O.M. dated 26 March 1970. The concessions were made available to SC/ST officers in Public Sector Banks/Financial Institutions in promotions by selection to posts within the officers cadre up to Scale-III. Held that banks must implement concessions, not reservation, within the officers cadre (Paras 9-10).
Issue of Consideration
The precise nature and character of the concession provided to Scheduled Castes and Scheduled Tribes in the matter of promotions within Class-I in the service of the public sector banks.
Law Points
- Office Memorandum dated 26 March 1970 does not speak of reservation but provides concessions and facilities for SC/ST officers
- Concession applies to promotions by selection to posts within Class-I carrying ultimate salary of Rs.2250/- or less
- SC/ST officers senior enough in zone of consideration and within number of vacancies are to be included in select list if not considered unfit
- no extra grading beyond record of service
- Government letter dated 30 May 1981 clarified no reservation for SC/ST in promotion by selection within officers cadre
