Supreme Court Dismisses Writ Petition Challenging Seniority Fixation Between Departmental Promotees and Direct Recruits in Import-Export Organisation. Seniority List Upheld as Fixation Based on Valid Classification and Rotational System Under Articles 14 and 16(1) of Constitution of India, 1950.

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Case Note & Summary

This writ petition under Article 32 of the Constitution concerned the seniority of Assistant Controllers in the Import and Export Organisation of the Government of India. The petitioners were departmental promotees who had been appointed on an ad hoc basis to the cadre of Assistant Controllers, Class II, while the respondents included the Chief Controller of Imports and Exports and direct recruits appointed through the Union Public Service Commission. The organisation had made appointments on an ad hoc basis during the Second World War, and after objections from the Union Public Service Commission, the Government agreed in 1955 to regularize appointments made before January 1, 1952, and to adopt a ratio of 75 percent direct recruits and 25 percent departmental promotees for subsequent appointments. This arrangement was later embodied in recruitment rules made under Article 309 of the Constitution on June 13, 1962. A seniority list dated November 30, 1961 placed 19 selected departmental promotees above direct recruits and arranged later appointees on a rotation ratio of 1:3, with the result that the petitioners, who had been promoted earlier on an ad hoc basis, were placed below the direct recruits. The petitioners challenged the seniority list on the grounds that the 1962 rules were not retrospective, that the ratio of 75:25 was arbitrary, that there was only one source of recruitment before November 1955, and that direct recruits could not be placed above them because their own promotions were subject to approval by the Union Public Service Commission. The court rejected all contentions. It held that the petitioners were promoted on an ad hoc basis pending selection through the Union Public Service Commission and had no right to the posts. Recruitment from two sources with different qualifications was a valid classification under Article 14, and a rotational system between the two sources did not violate Article 16(1). The ratio of 75:25 between direct recruits and departmental promotees was not shown to be flagrant or unreasonable. Filling vacancies that had arisen between 1952 and 1955 subsequently by permanent appointments was not an unconstitutional carrying forward of vacancies. The Supreme Court dismissed the writ petition and upheld the seniority list dated November 30, 1961.

Headnote

A) Constitutional Law - Seniority Fixation - Two Sources of Recruitment - Constitution of India, 1950, Articles 14 and 16(1) - The cadre of Assistant Controllers was recruited from two sources: promotion from subordinate staff and direct recruitment, each with different qualifications; classification based on source was valid as it had reasonable relation to the object of recruitment. The preferential treatment of departmental promotees over direct recruits in a rotational system did not violate equal opportunity. Held that recruitment from two sources with different qualifications can be sustained on basis of valid classification and rotational system does not violate Article 16(1) (Paras 33,36).

B) Constitutional Law - Ratio of Recruitment - 75:25 Direct Recruits to Promotees - Constitution of India, 1950, Article 14 - What ratio would be adequate and equitable depends on circumstances of each case and requirements of the post. Petitioners did not show that the ratio of 75:25 between direct recruits and departmental promotees was flagrant or unreasonable. Held that the ratio was not violative of Article 14 (Para 36).

C) Service Law - Carry Forward of Vacancies - Seniority of Direct Recruits - Constitution of India, 1950, Articles 14 and 16(1) - Where a service is divided into two parts and recruitment is from two sources, there is no question of carrying forward vacancies from year to year. Vacancies between 1952 and 1955 were filled subsequently by permanent appointments after ad hoc appointments; this was not unconstitutional carry forward. Held that relating back seniority of direct recruits to vacancies that arose earlier did not amount to unconstitutional carrying forward (Paras 36-37).

D) Service Law - Ad Hoc Promotions - Right to Post - Constitution of India, 1950, Article 309 - Petitioners were promoted on ad hoc basis pending selection through Union Public Service Commission from all sources; appointments were not intended to be subject to UPSC approval but gave them no right to the posts. Government's intention was ad hoc arrangement. Held that petitioners had no right to the posts of Assistant Controllers and direct recruits could be placed above them (Para 35).

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Issue of Consideration

Whether the seniority list dated November 30, 1961 fixing seniority between departmental promotees and direct recruits in the ratio of 25:75 was violative of Articles 14 and 16(1) of the Constitution of India, 1950; whether the rotational system and filling of past vacancies by direct recruits were constitutionally valid; and whether direct recruits could be placed above departmental promotees who were appointed on ad hoc basis.

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Final Decision

The Supreme Court dismissed the writ petition and upheld the seniority list dated November 30, 1961. The court held that the ratio of 75 percent direct recruits and 25 percent departmental promotees did not violate Articles 14 and 16(1) of the Constitution, that the rotational system was valid, and that filling vacancies between 1952 and 1955 subsequently did not amount to unconstitutional carrying forward of vacancies. The petitioners had no right to the posts of Assistant Controllers as their appointments were ad hoc.

Law Points

  • Recruitment from two sources with different qualifications constitutes valid classification under Article 14
  • Rotational system does not violate equal opportunity under Article 16(1)
  • Ratio of 75:25 between direct recruits and departmental promotees was not unreasonable
  • No unconstitutional carry forward of vacancies when filling past vacancies subsequently
  • Ad hoc promotees have no right to the post
  • Seniority list based on administrative arrangement not lacking authority due to later rules
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Case Details

1966 LawText (SC) (10) 12

Writ Petition No. 40 of 1965

1966-11-01

K. Subba Rao, M. Hidayatullah, S.M. Sikri, R.S. Bachawat, J.M. Shelat

1967 AIR 839, 1967 SCR (1) 29

H.R. Gokhale, G.L. Sanghi, B.R. Agarwal, Niren De, R. Ganapathy Iyer, R.N. Sachthey, N.S. Bindra, K. Baldev Mehta

Govind Dattatray Kelkar & Ors.

Chief Controller of Imports & Exports & Ors.

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Nature of Litigation

Writ petition under Article 32 of the Constitution challenging the constitutional validity of the seniority list dated November 30, 1961 fixing seniority between departmental promotees and direct recruits in the cadre of Assistant Controllers, Class II, Import and Export Organisation.

Remedy Sought

Petitioners, departmental promotees, sought to be placed above direct recruits in the seniority list and to have the seniority list and direct recruit appointments declared unconstitutional.

Filing Reason

The seniority list of November 30, 1961 placed direct recruits above petitioners due to application of 25:75 departmental promotees to direct recruits ratio and rotational system, disturbing their previously held positions.

Previous Decisions

No previous judicial decisions mentioned; seniority list dated November 30, 1961 and recruitment rules of 1962 were administrative actions preceding the writ petition.

Issues

Whether the 1962 recruitment rules were retrospective and whether the seniority list dated November 30, 1961, based on the Government's decision of July 29, 1961, was without authority of law and violative of Articles 14 and 16. Whether prior to November 1955 there was only one source of recruitment and thus relating back the seniority of direct recruits to the period between January 1, 1952 and November 30, 1955 amounted to unconstitutional carrying forward of vacancies. Whether the ratio of 75 percent direct recruits and 25 percent departmental promotees was arbitrary and violative of Article 14. Whether direct recruits could be placed above departmental promotees who were promoted subject to approval by the Union Public Service Commission.

Submissions/Arguments

The rules of 1962 were not retrospective in operation and the seniority list dated November 30, 1961, based on the decision dated July 29, 1961, lacked authority of law and violated Articles 14 and 16. Prior to November 1955, there was only one source of recruitment to the cadre of Assistant Controllers, and relating back the seniority of direct recruits to the period between January 1, 1952 and November 30, 1955 was based on reservations for persons not then in existence and amounted to unconstitutional carry forward of vacancies. The ratio of 75:25 between direct recruits and departmental promotees was arbitrary and violative of Article 14. The direct recruits appointed in December 1955 could not be placed above the petitioners because the petitioners had been promoted subject to the condition of approval by the Union Public Service Commission.

Ratio Decidendi

Recruitment to a cadre from two sources with different qualifications can be sustained as a valid classification under Article 14, and a rotational system between the two sources does not violate Article 16(1). The ratio of 75:25 between direct recruits and departmental promotees was not demonstrated to be flagrant or unreasonable. Vacancies that arose earlier but were filled later by permanent appointments after ad hoc appointments were not unconstitutionally carried forward. Departmental promotees appointed on an ad hoc basis pending selection by the Union Public Service Commission had no right to the posts.

Judgment Excerpts

Where the recruitment to a cadre was from two sources, a rotational system would not violate the principle of equal opportunity enshrined in Art. 16(1). In a case where a service is divided into two parts and there are two sources of recruitment, one by promotion and the other by direct recruitment, there is no question of carrying anything forward from year to year in the matter of annual intake. In the context in which the petitioners were appointed, it was not the intention of the Government that they were to be appointed subject to the approval of the Union Public Service Commission.

Procedural History

In 1949, promotions in the Import and Export Organisation were governed by Government of India Memorandum dated June 22, 1949. After objections from the Union Public Service Commission, the Government agreed in 1955 to regularize appointments made before January 1, 1952, and to adopt 75 percent direct recruitment and 25 percent departmental promotion for subsequent appointments. In December 1955, 57 direct recruits were appointed, and 19 departmental promotees were selected for 76 posts. On November 30, 1961, a seniority list was prepared placing 19 promotees above direct recruits and later appointees on a rotation ratio. On June 13, 1962, recruitment rules under Article 309 of the Constitution embodied the arrangement. In 1965, the petitioners filed Writ Petition No. 40 of 1965 under Article 32. The Supreme Court's Constitution Bench heard the matter and delivered judgment on November 1, 1966.

Acts & Sections

  • Constitution of India, 1950: Articles 14, 16(1), 309
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