Supreme Court Dismisses Appeal in Central Government Service Seniority Dispute Involving LDCs Promoted as UDCs on Ad Hoc Basis. Senior LDCs Not Offered Transfer on Promotion Cannot Be Deprived of Seniority by Earlier Ad Hoc Promotions of Junior LDCs Under Controller of Imports & Exports Circular.

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Case Note & Summary

The dispute pertained to inter se seniority between Lower Division Clerks (LDCs) promoted as Upper Division Clerks (UDCs) in the Western Zone of the office of the Controller of Imports & Exports. The appellants, who were junior LDCs appointed in 1969, accepted transfer on promotion to UDC on ad hoc basis in 1980. Respondents 5 and 6, senior LDCs appointed in 1964, were given the option for transfer on promotion only in 1981 and were thereafter promoted as UDCs. The senior LDCs filed a writ petition before the High Court, which was transferred to the Central Administrative Tribunal, Ahmedabad, claiming seniority over the appellants. The Tribunal, by order dated August 14, 1987 in T.A. No.263/86, held that ad hoc promotions cannot confer seniority and that senior LDCs cannot be deprived of seniority by junior LDCs promoted earlier on ad hoc basis unless the seniors had refused the option. The appellants, who were not parties to that order, sought review by Misc. Application No.986 of 1988, which was dismissed on September 29, 1989. Aggrieved, they approached the Supreme Court by special leave. The appellants contended that under the policy circular issued by the Joint Chief Controller of Imports and Exports, juniors who accepted transfer on promotion, even on ad hoc basis, acquire seniority over seniors who were unwilling. They argued that since they were promoted in 1980 and respondents were promoted in 1981, the respondents could not claim seniority over them. The respondents maintained that they were not offered the option in 1980, and therefore their seniority as LDCs could not be forfeited. The Supreme Court examined the circular and the Andhra Pradesh High Court decision in Joint Chief Controller of Imports & Exports, Madras v. V.V. Ramanarao, which held that senior LDCs who were unwilling to go on transfer promotion lost their seniority. The Court accepted that principle but distinguished the facts: respondents 5 and 6 were given option for the first time in 1981; they had not refused any earlier option. Since they were seniors in the LDC cadre and were not offered the option in 1980, they could not be made to lose seniority in the UDC cadre merely because junior appellants were promoted earlier on ad hoc basis. Consequently, the Supreme Court upheld the Tribunal's direction and dismissed the appeal. The Joint Controller of Imports and Exports, Western Zone was directed to determine seniority according to the principles laid down, circulate the list to all candidates, consider objections, finalise the seniority list per rules, and take further action accordingly. No order as to costs.

Headnote

A) Service Law - Seniority - Ad hoc Promotion and Seniority Rights - Not mentioned - Dispute arose between LDCs promoted as UDCs on ad hoc basis under a transfer-on-promotion policy; senior LDCs argued that junior LDCs who accepted earlier ad hoc promotions could not claim seniority over them because senior LDCs were not offered option at the time of junior promotions - Court held that if senior LDCs were not informed or did not refuse option, they retain seniority over juniors promoted earlier on ad hoc basis; ad hoc promotion cannot confer seniority over seniors who were not given option - Held that Tribunal order directing fresh seniority list as per this principle was not illegal; appeal dismissed (Para 1).

B) Service Law - Seniority - Effect of Declining Transfer on Promotion - Not mentioned - The Court referred to policy circular which provided that if senior LDCs are unwilling to go on transfer on promotion, juniors who accept get seniority over them; and to Andhra Pradesh High Court decision in Joint Chief Controller of Imports & Exports, Madras v. V.V. Ramanarao that unwilling senior LDCs forego seniority - Held that this principle applies only when senior LDCs were actually offered option and declined; in present case respondents 5 and 6 were not offered option in 1980, so they could not be deemed to have foregone seniority; appeal dismissed (Para 1).

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Issue of Consideration

Whether junior LDCs promoted as UDCs on ad hoc basis prior in time can claim seniority over senior LDCs who were not offered the option of transfer on promotion at that earlier point, and whether the Central Administrative Tribunal's direction to prepare seniority list afresh was legal.

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Final Decision

Appeal dismissed. The Supreme Court upheld the Tribunal's direction that seniority list be prepared on the principle that senior LDCs who were not offered the option of transfer on promotion cannot be deprived of seniority by earlier ad hoc promotions of junior LDCs. The Joint Controller of Imports and Exports, Western Zone was directed to determine seniority following the principles laid down, circulate the list to all candidates, consider objections, finalise according to rules, and take action accordingly. No costs.

Law Points

  • Ad hoc promotion does not confer seniority
  • senior LDCs who were not offered option for transfer on promotion cannot be deprived of seniority
  • senior LDCs who declined option forego seniority in favour of juniors who accepted
  • seniority determined by date of regular promotion subject to rules and reservation
  • policy circular of Joint Chief Controller of Imports and Exports governs inter se seniority of promotees
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Case Details

1995 LawText (SC) (11) 60

1995-11-23

K. Ramaswamy, B.L. Hansaria

1996 AIR 794, 1996 SCC (7) 179, JT 1995 (9) 285, 1995 SCALE (7) 139

B.K. Mehta

P. Bhaskaran & Ors.

Union of India & Ors.

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Nature of Litigation

Service law dispute over seniority between Lower Division Clerks (LDCs) promoted as Upper Division Clerks (UDCs) on ad hoc basis under a transfer-on-promotion policy in the Western Zone of the Controller of Imports & Exports.

Remedy Sought

Appellants sought to set aside the Central Administrative Tribunal's order directing fresh preparation of seniority list, claiming seniority as UDCs from the date of their ad hoc promotion in 1980 over respondents 5 and 6 who were promoted in 1981.

Filing Reason

Appellants were aggrieved by the Tribunal's decision that their ad hoc promotions did not confer seniority and that respondents 5 and 6, being senior LDCs, were entitled to seniority over them despite later promotion.

Previous Decisions

Central Administrative Tribunal, Ahmedabad in T.A. No.263/86 dated August 14, 1987 directed seniority list of UDCs to be drawn afresh, holding that ad hoc promotions cannot give right to seniority and that regular promotees cannot be deprived of seniority by juniors promoted ad hoc; the appellants' review application, Misc. Application No.986 of 1988, was dismissed on September 29, 1989.

Issues

Whether junior LDCs promoted as UDCs on ad hoc basis earlier in time can claim seniority over senior LDCs who were not offered the option of transfer on promotion at that earlier point.

Submissions/Arguments

Appellants argued that since they accepted transfer on promotion, though ad hoc, under policy circular, their promotion should be treated regular and seniority counted from 1980, so respondents promoted in 1981 cannot claim seniority over them. Respondents argued that they were seniors in LDC cadre and were not given option in 1980, so they could not be deemed to have refused transfer promotion; therefore their seniority as UDCs should be protected despite later promotion.

Ratio Decidendi

Ad hoc promotion by itself does not confer seniority. Senior LDCs who are not offered the option of transfer on promotion and do not refuse such option cannot be deprived of their seniority in the promoted cadre by junior LDCs who accepted earlier ad hoc promotions. A senior LDC loses seniority to a junior LDC promoted on ad hoc basis only if the senior LDC was actually offered the option and declined it. Policy circulars and administrative exigencies cannot override the right of senior employees who were not given the opportunity to exercise option.

Judgment Excerpts

Such ad hoc promotions do not deprive the seniority of the respondents 5 and 6 in this appeal. The effect of the unwillingness on the part of the senior LDCs to proceed on transfer promotion to Hyderabad as UDCs resulted in their losing their seniority in the category of LDCs in favour of the tranferees. Thus considered, when the appellants were promoted in the year 1980, they were not informed of the right to exercise the option for transfer on promotion nor they refused to give option on that basis. Since they admittedly are seniors to the appellants as LDCs in the absence of their refusal, they cannot be made to lose their seniority in the cadre as UDCs for no fault of theirs merely because the appellants were promoted in 1980 overlooking the claims of respondents 5 & 6.

Procedural History

The matter originated from a writ petition filed by respondents 5 and 6 in the High Court, which was transferred to the Central Administrative Tribunal (CAT), Ahmedabad. CAT in T.A. No.263/86 on August 14, 1987 directed fresh seniority list of UDCs, holding ad hoc promotions cannot confer seniority. Appellants, not impleaded in that order, filed Misc. Application No.986/1988 for review, which was dismissed on September 29, 1989. Against this dismissal, appellants approached the Supreme Court by special leave petition; leave was granted and appeal dismissed on November 23, 1995.

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