Supreme Court Allows Appeal Against Tribunal Order Directing Reinstatement of Reverted Employee. Reversion Order Attained Finality and Operates as Res Judicata; Subsequent Board Regulations Cannot Revive It Under Rule 37(a)(i) of Andhra Pradesh Subordinate Service Rules.

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Case Note & Summary

Background: The dispute arose in the context of service conditions of employees of the Hyderabad Water Works Department and its successor bodies. Appellants D. Krishna Murthy and P. Damodar Reddy were senior assistants, while the third respondent M. Venkatashwarlu was reverted from Superintendent to Senior Assistant. The litigation concerned the validity of that reversion and the subsequent attempt by the third respondent to obtain reinstatement. Facts: Appellants were appointed as Lower Division Clerks in 1961-62 and promoted as Upper Division Clerks in 1969. Third respondent was appointed as Typist in 1970 and promoted as Senior Assistant on 9 June 1978. He opted for Maneru Investigation Circle and was transferred as Upper Division Clerk. He was promoted as Head Clerk on 9/10 July 1981 under Rule 37(a)(i) of Andhra Pradesh Subordinate Service Rules after giving an undertaking not to claim seniority or pay protection. The post was upgraded to Superintendent. He was reverted to Senior Assistant on 14 March 1985. His challenge in R.P. No. 444/85 before the Andhra Pradesh Administrative Tribunal was dismissed on 7 January 1986; review dismissed; SLP dismissed by Supreme Court on 12 April 1986. Another R.P. No. 6617/87 was dismissed on 18 July 1988; SLP No. 13514/88 was dismissed on 1 November 1990 with directions to frame regulations. Subsequently, G.O. No. 590 dated 22 September 1993 was issued and a new Act constituted the Board. The third respondent filed O.A. Nos. 2757/92 and 1380/93. The Tribunal allowed both on 31 January 1994, declared reversion illegal and directed reinstatement. Appellants filed the present appeal. Legal Issues: Whether the Tribunal could direct reinstatement when the reversion order had attained finality; whether subsequent events like G.O. No. 590 or the new Act revived the reversion; and whether res judicata barred the third respondent. Arguments: Appellants' counsel argued that the reversion order had become final after dismissal of R.P. No. 444/85 and SLP; the new Act and G.O. No. 590 had no effect. The third respondent appearing in person argued that he had opted for Maneru scheme, was promoted as Head Clerk, and was entitled to continue; reverting him while allowing similarly placed persons was illegal and violative of Article 14. Court's Analysis: The Supreme Court found no force in the third respondent's contention. It held that the legality of reversion could not be gone into because the reversion order had become final and operated as res judicata. Observations made in the second SLP to frame regulations did not revive the final reversion order. The Tribunal had gone on a wrong track by examining the constitution of the Board and effect of G.O. 590. Since the erstwhile employees were senior assistants from 1969 and 1978 respectively, the subsequent events had no consequence. Decision: The Supreme Court allowed the appeal, set aside the Tribunal's order, and held that the reversion of M. Venkatashwarlu from Superintendent to Senior Assistant was final and conclusive. The Tribunal was wrong in directing reinstatement and consequential benefits. The undertaking given by Venkatashwarlu was taken on record.

Headnote

A) Service Law - Promotion and Reversion - Finality of Reversion Order - Andhra Pradesh Subordinate Service Rules, Rule 37(a)(i) - The reversion of an employee from Superintendent to Senior Assistant was challenged earlier and attained finality after dismissal of review and SLP by Supreme Court. The Tribunal could not direct reinstatement; final order operates as res judicata. Held that reversion order is conclusive.

B) Administrative Law - Res Judicata - Applicability to Service Matters - General principles of res judicata - Dismissal of earlier SLP by Supreme Court makes reversion final; subsequent applications cannot re-open. Held that reversion order operates as res judicata.

C) Service Law - Effect of Subsequent Enactment and Government Orders - G.O. No. 590 and New Act - Andhra Pradesh Subordinate Service Rules - Subsequent constitution of Board, G.O. 590, and directions to frame regulations do not revive a final reversion order. The Tribunal went on wrong track in examining legality of Board constitution and effect of G.O. Held that these events have no consequence on finality.

D) Service Law - Undertaking - Seniority and Pay Protection - Andhra Pradesh Subordinate Service Rules, Rule 37(a)(i) - Employee gave undertaking not to claim seniority or protection of pay upon promotion. The undertaking was taken on record and binds the employee. Held that the undertaking reinforces finality.

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Issue of Consideration

Whether the Andhra Pradesh Administrative Tribunal could direct reinstatement of the third respondent as Superintendent when his earlier reversion had attained finality after dismissal of R.P. No. 444/85 and SLP; whether subsequent events like G.O. No. 590 or new Act revived the reversion.

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Final Decision

The Supreme Court allowed the appeal, set aside the Tribunal's order dated 31 January 1994, and held that the reversion of M. Venkatashwarlu from Superintendent to Senior Assistant had become final and operated as res judicata. The Court rejected the contention that the new Act or G.O. No. 590 revived the reversion order and held the Tribunal was wrong in directing reinstatement and consequential benefits. The undertaking given by Venkatashwarlu was taken on record.

Law Points

  • Finality of reversion order after dismissal of SLP operates as res judicata
  • subsequent government orders or new Act cannot revive
  • tribunal cannot re-examine issues already concluded
  • undertaking not to claim seniority/pay protection binds employee
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Case Details

1994 LawText (SC) (09) 33

Appeal (civil) 6021 of 1994

1994-09-02

K. Ramaswamy, N. Venkatachala

1994 Supp (3) SCR 90

Sh. Narasimha (for appellants); Mr. Venkatashwarlu appeared in person

D. Krishna Murthy and P. Damodar Reddy

State of Andhra Pradesh and Ors.; M. Venkatashwarlu (Respondent No. 3)

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Nature of Litigation

Civil appeal against order of Andhra Pradesh Administrative Tribunal allowing original applications and directing reinstatement of reverted employee as Superintendent.

Remedy Sought

Appellants sought to set aside the Tribunal's order dated 31 January 1994 and to uphold the reversion of third respondent as Senior Assistant.

Filing Reason

The Tribunal had allowed O.A. Nos. 2757/92 and 1380/93, declared the reversion illegal as violative of G.O. No. 590, and directed reinstatement of the third respondent as Superintendent.

Previous Decisions

R.P. No. 444/85 dismissed by Tribunal on 7 January 1986; review dismissed; SLP dismissed by Supreme Court on 12 April 1986; R.P. No. 6617/87 dismissed by Tribunal on 18 July 1988; SLP No. 13514/88 dismissed on 1 November 1990 with directions to frame regulations; O.A. Nos. 2757/92 and 1380/93 allowed by Tribunal on 31 January 1994.

Issues

Whether the Tribunal could direct reinstatement of the third respondent as Superintendent when his earlier reversion order had attained finality after dismissal of R.P. No. 444/85 and the special leave petition. Whether the subsequent constitution of the Board, G.O. No. 590, or directions to frame regulations had the effect of reviving the reversion order. Whether the principle of res judicata barred the third respondent from re-agitating the legality of his reversion.

Submissions/Arguments

Appellants' counsel argued that the reversion order had become final after dismissal of R.P. No. 444/85 and the SLP, and the Tribunal could not direct reinstatement. Appellants' counsel contended that the new Act and G.O. No. 590 had no effect on the final reversion order. Third respondent appearing in person argued that he had opted to go to Maneru Investigation Scheme, was promoted as Head Clerk, and was entitled to continue; reverting him while allowing similarly placed persons was illegal and violative of Article 14.

Ratio Decidendi

An order of reversion that has attained finality after dismissal of review and special leave petition operates as res judicata and cannot be re-opened. Subsequent enactment, government orders, or directions to frame regulations do not revive a final reversion order. The Tribunal cannot go into the constitution of the Board or the effect of G.O. 590 when the employee's reversion had already become conclusive. The undertaking not to claim seniority or protection of pay also binds the employee.

Judgment Excerpts

Heard learned counsel for the parties. We direct that Hyderabad Metro Water Supply and Sewerage Board to frame its regulations indicating the service conditions of the employees as contemplated under the Statute within six months from today expressly regulations so framed in case the petitioners have any grievance to make he is entitled to as state that claim. We find no force in the contention of Sri Venkatashwarlu, We cannot go into the legality whether he was rightly or wrongly reverted as Senior Assistant from the post of Superintendent for the reason that his reversion order had become final and it operates as a resjudicata in these proceedings against him. The appeal is accordingly allowed.

Procedural History

Appellants D. Krishna Murthy and P. Damodar Reddy were appointed as Lower Division Clerks in 1961-62 and promoted as Upper Division Clerks in 1969 in Hyderabad Water Works Department. Third respondent M. Venkatashwarlu was appointed as Typist in 1970 and promoted as Senior Assistant on 9 June 1978. Venkatashwarlu opted for Maneru Investigation Circle and was transferred as UDC. He was promoted as Head Clerk on 9/10 July 1981 under Rule 37(a)(i) of Andhra Pradesh Subordinate Service Rules after giving undertaking not to claim seniority or pay protection. The post was upgraded to Superintendent. He was reverted to Senior Assistant on 14 March 1985. His challenge in R.P. No. 444/85 before Andhra Pradesh Administrative Tribunal was dismissed on 7 January 1986; review dismissed; SLP dismissed by Supreme Court on 12 April 1986. Another R.P. No. 6617/87 dismissed on 18 July 1988; SLP No. 13514/88 dismissed on 1 November 1990 with directions to frame regulations. Subsequently, G.O. No. 590 dated 22 September 1993 was issued; new Act constituted Board. Venkatashwarlu filed O.A. Nos. 2757/92 and 1380/93. The Tribunal allowed both on 31 January 1994, declared reversion illegal and directed reinstatement. Appellants filed the present appeal.

Acts & Sections

  • Andhra Pradesh Subordinate Service Rules: Rule 37(a)(i)
  • Constitution of India, 1950: Article 14
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