Supreme Court Allows Appeal in ACP Scheme Dispute — Deployment as Radio Telephone Operators Held Not a Promotion. Reorganisation of Posts Without Selection Process Does Not Disentitle Employees to Assured Career Progression Benefits Under Office Memorandum Dated 9.8.1999.

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Case Note & Summary

The appellants, Telephone Operators with the Delhi Fire Service (DFS), were deployed as Radio Telephone Operators (RTOs) in a higher pay scale following a reorganisation of the wireless communication system approved in 1983. The deployment required a short training and completion of 5 years of regular service. In 1999, the Government of India introduced the Assured Career Progression (ACP) Scheme granting financial upgradations after 12 and 24 years of service. The appellants claimed they were entitled to the first financial upgradation under the ACP Scheme, but the respondents denied it on the ground that their deployment as RTOs amounted to a promotion, which would offset the ACP benefit. The Central Administrative Tribunal (CAT) initially allowed the appellants' claim, holding that the deployment was not a promotion. However, the Delhi High Court reversed this decision, treating the deployment as a promotion. The Supreme Court examined the distinction between promotion and upgradation, relying on the principles laid down in Bharat Sanchar Nigam Limited v. R. Santhakumari Velusamy and Others. The Court noted that promotion involves a process of selection or consideration of comparative merit, whereas upgradation is available to all eligible employees without selection. In this case, the deployment of Telephone Operators as RTOs was a reorganisation without any selection process; it was merely a conversion of posts with a condition of experience and training. Therefore, it did not constitute a promotion. The ACP Scheme was intended as a safety net against stagnation, and the appellants, having not received a promotion, were entitled to its benefits. The Supreme Court set aside the High Court's judgment and restored the CAT's order, allowing the appeal.

Headnote

A) Service Law - Promotion vs. Upgradation - Assured Career Progression Scheme - The distinction between promotion and upgradation is that promotion involves a process of selection or consideration of comparative merit, whereas upgradation is available to all eligible employees without selection. In the present case, the conversion of posts of Telephone Operators to Radio Telephone Operators was a reorganisation without any selection process, hence it was an upgradation and not a promotion. Consequently, the appellants were entitled to the benefits of the ACP Scheme. (Paras 8-13)

B) Service Law - ACP Scheme - Financial Upgradation - The ACP Scheme was introduced as a safety net to address stagnation due to lack of promotional avenues. Financial upgradation under the ACP Scheme is independent of and not offset by a mere reorganisation or upgradation that does not amount to a promotion. The appellants, having not received a promotion, were entitled to the first financial upgradation under the ACP Scheme. (Paras 8-13)

C) Service Law - Reorganisation of Posts - Effect on Promotion - Reorganisation of wireless communication system resulting in deployment of employees to higher pay scale with a condition of 5 years' experience and short training, without any selection process, does not constitute a promotion. The High Court erred in treating such deployment as a promotion. (Paras 9-13)

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Issue of Consideration

Whether the deployment of Telephone Operators as Radio Telephone Operators (RTOs) pursuant to a reorganisation scheme amounts to a promotion, thereby disentitling them to the benefits of the Assured Career Progression (ACP) Scheme.

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Final Decision

The Supreme Court allowed the appeal, set aside the judgment of the Delhi High Court, and restored the order of the Central Administrative Tribunal granting the appellants the benefits of the ACP Scheme. The Court held that the deployment of Telephone Operators as Radio Telephone Operators was not a promotion but a reorganisation/upgradation, and thus the appellants were entitled to the first financial upgradation under the ACP Scheme.

Law Points

  • Promotion requires a process of selection or consideration of comparative merit
  • mere reorganisation or upgradation without selection is not promotion
  • ACP Scheme benefits are available unless offset by a promotion
  • deployment to higher pay scale without change of post and without selection is upgradation
  • not promotion.
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Case Details

2020 LawText (SC) (8) 34

Civil Appeal Nos. 5829-5830 of 2012

2020-08-06

Sanjay Kishan Kaul, J.

Rama Nand and Ors.

Chief Secretary, Govt. of NCT of Delhi & Anr.

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Nature of Litigation

Civil appeal against the judgment of the Delhi High Court which held that the deployment of Telephone Operators as Radio Telephone Operators amounted to a promotion, disentitling them to the benefits of the Assured Career Progression (ACP) Scheme.

Remedy Sought

The appellants sought the benefits of the first financial upgradation under the ACP Scheme, which they claimed was denied on the erroneous ground that their deployment as RTOs was a promotion.

Filing Reason

The appellants were denied the ACP benefits because the respondents treated their conversion of posts as a promotion.

Previous Decisions

The Central Administrative Tribunal (CAT) allowed the appellants' claim, holding that the deployment was not a promotion. The Delhi High Court reversed this decision, treating the deployment as a promotion.

Issues

Whether the deployment of Telephone Operators as Radio Telephone Operators (RTOs) amounts to a promotion or a mere reorganisation. Whether the appellants are entitled to the benefits of the ACP Scheme despite the deployment.

Submissions/Arguments

Appellants argued that the deployment was a reorganisation without any selection process, hence it was an upgradation, not a promotion, and they were entitled to ACP benefits. Respondents argued that the deployment with a condition of 5 years' experience and higher pay scale constituted a promotion, disentitling the appellants to ACP benefits.

Ratio Decidendi

The deployment of employees to a higher pay scale without a process of selection or consideration of comparative merit constitutes an upgradation, not a promotion. Therefore, such deployment does not disentitle employees to the benefits of the ACP Scheme, which is intended to address stagnation due to lack of promotional avenues.

Judgment Excerpts

The moot point, thus, which arises for consideration is whether the benefits accruing to the appellants as a consequence of the reorganisation scheme of wireless and communication systems could be said to give them the benefit of a promotion and whether they were still entitled to a financial upgradation on account of the ACP Scheme. On an examination of the Office Memorandum dated 9.8.1999 bringing forth the ACP Scheme, it is apparent that the same was a consequence of the Fifth Central Pay Commission Report recommending such a Scheme for civilian employees, and was to be viewed as a safety net to deal with the problem of genuine stagnation and hardship faced by the employees due to lack of adequate promotional avenues.

Procedural History

The appellants filed OA No. 983/1995 before the CAT, which was allowed on 6.10.1999 granting them the pay scale of RTOs. Subsequently, OA No. 1224/2003 was filed seeking ACP benefits, which was allowed by the CAT on 29.10.2003. The respondents challenged this order before the Delhi High Court in WP (C) No. 8406-07 of 2004, which was allowed on 8.5.2009, reversing the CAT's decision. The appellants then appealed to the Supreme Court.

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