Harigovind
Yadav Vs. Rewa Sidhi Gramin Bank & Ors [2006] Insc 291 (9 May 2006)
B N Srikrishna & R V Raveendran Raveendran, J.
The
appellant and the third Respondent are working as clerk-cum-cashiers with the
first respondent Bank (Rewa Sidhi Gramin Bank). The appellant is at serial No.9
and third respondent is at serial No.10 in the seniority list of senior clerks
cum cashiers published on 31.7.1988. There is no dispute that the third
respondent is junior to appellant in the cadre of clerk- cum-cashier.
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The promotions
of employees of the first Respondent Bank (for short 'the Bank') are governed
by the Regional Rural Banks (Appointment & Promotion of Officers and other
employees) Rules, 1988 (for short 'rules') made by the Central Government in
exercise of the power conferred by Section 29 read with section 17 of the
Regional Rural Banks Act, 1976.
Rule 5
provides that all vacancies shall be filled by deputation, promotion or by
direct recruitment in accordance with the provisions contained in the second Schedule.
Rule 10 requires the Board of Directors of each Regional Rural Bank to
constitute from time to time Staff Selection Committees in the manner provided
therein for the purpose of selecting candidates for appointment by direct
recruitment or promotion to the posts referred to in the second Schedule. It
also requires the Staff Selection Committee to follow the procedure as
determined by the Board for selecting the candidates for appointment or
promotion in accordance with the guidelines issued by the Central Government
from time to time.
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Entry 5 of the
second Schedule to the Rules relates to Field Supervisors. It provides the
source of recruitment as 50% by direct recruitment and 50% by promotion on the
basis of seniority-cum-merit (from amongst confirmed senior clerk-
cum-cashiers, junior clerk-cum-cashiers, or clerk-cum-typists, stenographers
and steno typists with the prescribed minimum periods of service). For direct
recruitment, the mode of selection is 'written test and interview'. The method
prescribed for ascertaining the minimum necessary merit required for promotion
by seniority-cum-merit is 'interviews and assessment of performance reports for
the preceding 3 years'.
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The promotions
were made by the Bank in accordance with the promotion policy contained in the
circular dated 2.2.1989. The circular stated the object of the promotion policy
thus:
"The
object of the policy which is based on the principle of Seniority-cum-merit is
to provide motivation and ensure carrier movement for Bank Staff. Apart from
seniority, merit based on performance coupled with weightage for
placement/posting in comparatively inconvenient areas, will be the determining
factors for promotion." Chapter 3 of the said promotion policy dealing
with promotions to the post of Field Supervisors is extracted below :
"FROM
SENIOR CLERK/CASHIER OR JUNIOR CLERK/CASHIER OR CLERK/TYPIST OR STENO/TYPIST TO
FIELD SUPERVISOR.
Promotion
from Senior Clerk/Cashier or Junior Clerk/Cashier or Clerk/Typist or
Steno/Typist to Field Supervisor subject to satisfaction of minimum period of
service shall be, at present on the basis of assessment of his overall
performance based on appraisal reports on him and his potentiality to shoulder
higher responsibilities assessed in the interview duly supplemented by weightage
for seniority placement/posting as detailed herein below :
Percent
weightage for various promotion criteria as mentioned above will be as follow :
Total
Marks Seniority Posting at Rural Centres Posting at difficult Centres
Performance Interview 100 20 10 5 40 25
3.1
Seniority :
Two
marks for each completed year of service as Senior Clerk/Cashier and one mark
for each completed year of service as Junior-Clerk/Cashier/Typist/Steno/Typist
subject to a maximum of 20 marks.
3.2
Posting at rural
centers.
Two
marks for each completed year of service in rural center with a maximum of 10
marks.
3.3 Posting
at difficult centers.
One
mark for each completed year of posting at difficult center (difficult centers
to be identified by the Chairman and approved by the Board) with a maximum of 5
marks.
3.4
Performance/Appraisal Performance will be assessed through the appraisal reports
annually received from his superiors in such form as may be specified by the
Chairman from time to time. Marks will be awarded at the rate of 8 marks each
for annual appraisal ratings for the appraisal of preceding 3 years period with
the maximum of 24 marks and 16 marks for overall performance of the Staff
(maximum 16 marks).
Performance,
on the basis as stated above, will be assessed by a Staff Selection Committee
constituted by the Board for this purpose from time to time.
3.5
Interview :
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The Staff
Selection Committee constituted by the Board for the purpose of promotion, will
also work as Interview Committee.
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The Maximum
marks for interview will be 25. By and large, the candidates who have been
found eligible will be interviewed in respect of
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Personality
-
Poise and Manner
-
Power of
expression
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Emotional
Stability
-
Job Knowledge
including knowledge of Banking (with reference to the functions/role of
Regional Rural Banks)
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General
Knowledge
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Initiative
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Leadership
quality
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Potential and
suitability and overall assessment.
3.6
candidates who
have secured less than 40% marks in interview will not be considered for
promotion and their names will not be included in the final merit list.
3.7
the list of
successful candidates in the order of total marks obtained will be placed by the
staff selection committee before the board, duly recommended for consideration
for appointments or promotion."
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On 3.7.1991 the
appellant's juniors were promoted as Field Supervisors. The appellant was not
promoted. He therefore filed W.P. No.4485/1993 in the High Court of Madhya
Pradesh, challenging the promotion of two of his juniors (third respondent
herein and one V.P. Singh) on the ground that the Bank had failed to make
promotions on the basis of seniority cum merit, prescribed under the Rules, and
had made promotions on the basis of merit cum seniority contrary to the rules.
Appellant contended that the procedure whereby only 20 marks were allocated to
seniority and 80 marks were allocated for other factors for the purpose of
assessment, and promoting those who secured the highest marks on the basis of
such assessment of overall performance, clearly demonstrated that the
promotions were not on the basis of seniority cum merit.
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The Bank
resisted the said petition by contending that the promotions were made on the
basis of seniority cum merit and not on merit cum seniority, in accordance with
the Promotion Policy dated 2.2.1989. It contended that the promotion policy
took note of seniority also by earmarking 20 out of 100 marks for seniority and
therefore the procedure adopted by the bank for promotions to the post of Field
Supervisor should be considered as seniority cum merit. It was not disputed
that the comparative merit of the candidates was assessed with reference to
performance appraisal, interview, posting at rural/difficult centres and that
the persons securing highest marks in the order of merit were recommended for
consideration for promotion.
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A learned Single
Judge of the Madhya Pradesh High Court allowed the Appellant's writ petition by
order dated 13.10.1998 following the decision of this Court in B.V. Sivaiah
& Ors. V. K. Addanki Babu [1998 (6) SCC 720]. He held that the promotions
had been made not on the basis of seniority cum merit, but on the basis of
merit-cum-seniority. Consequently, the promotion of third respondent herein and
V.P. Singh were quashed with a direction to the Bank to consider the case of
appellant for promotion to the post of Field Supervisor, along with other
eligible candidates. The said order of the learned Single Judge was challenged
by the third respondent and V. P. Singh in a Letters Patent Appeal which was
dismissed on 2.12.1998. It is stated that the special leave petition filed
against the decision in the Appeal was also dismissed.
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As no action was
taken in pursuance of the said decision, the appellant filed a contempt
petition on 31.1.1999. The said petition was disposed of by the High Court, on
10.5.1999, recording the assurance of the Bank that the case of the appellant
will be considered and appropriate orders will be passed within one month.
Thereafter the bank again passed an order of promotion dated 14.6.1999 promoting
the third respondent to the post of Field Supervisor. Appellant was not
promoted.
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The appellant,
therefore, once again approached the Madhya Pradesh High Court in W.P.
No.2800/1999 challenging his non-promotion, contending that the bank has not
made promotion on the basis of seniority cum merit. He contended that the Bank
had failed to follow the decision of this Court in SIVAIAH and the decision in
his own case. He contended that even under the basis of merit-cum-seniority
adopted by the Bank, he was entitled to promotion on the total percentage of
marks secured by him and he had been deliberately failed in the interview to
deny him promotion. The appellant stated that he had secured the following
marks in the assessment made for promotion :
Criteria
Total marks Marks secured by appellant Seniority 20 16 Posting at rural centres
10 10 Posting at difficult centres 5 3 Performance 40 24 Interview 25 9 TOTAL
100 62
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The bank resisted the second
petition also. It contended that the Departmental Promotion Committee had
considered the case of the appellant and other eligible candidates in terms of
the promotion policy contained in its circular dated 2.2.1989 by assessing
appellant's performance and interviewing him. The Bank contended that, as per
the promotion policy, the candidates who secure less than 40% of the 25 marks
allocated for interview will not be considered for promotion; that only those
who got 10 marks and above in the interview, were eligible for promotion; and
that appellant who had secured only 9 marks in interview was thus not eligible
for promotion.
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A learned Single Judge of the MP
High Court dismissed the appellant's writ petition (WP No. 2800/1999) by order
dated 26.4.2000. He held that in Sivaiah's case (supra), this Court had
accepted the fixation of minimum standard for assessing merit and a candidate
who fails to fulfil the said minimum standard cannot be promoted. The learned
Single Judge held that the appellant was not promoted, as he failed to secure
the prescribed minimum for interview. The learned Single Judge was of the view
that the method evolved for adjudging the minimum merit was in consonance with
the principle of seniority-cum-merit, and the appellant having failed in
interview for promotion, he was not entitled to any relief.
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The appellant challenged the said
order before the Division Bench which rejected the LPA by judgment dated
23.8.2001 affirming the decision of the learned Single Judge. It held that the
criteria adopted by the employer by prescribing minimum qualifying marks for
interview for determining the suitability of the candidate for promotion was
just and reasonable and the appellant having failed to secure the minimum marks
in the interview, was rightly not promoted.
Both
the single Judge and the Division Bench purported to follow the principle laid
down in para 37 of the Judgment in SIVAIAH (supra). The said decision of the
Division Bench of the High Court is challenged in this appeal by special leave.
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As both parties have relied on the
decision in Sivaiah (supra), we may start by referring to the relevant
observations therein. The decision in SIVAIAH was a common judgment which
considered the meaning of the criterion 'seniority-cum- merit' for promotion.
The decision dealt with several distinct batches of cases relating to different
Regional Rural Banks, which had different promotion policies, that is Rayalaseema
Grameena Bank, Pinakini Grameena Bank, Bastar Kshetriya Gramin Bank, Rewa Sidhi
Gramin Bank (respondent herein) and Chhindwara-Seoni Kshetriya Gramin Bank.
The
High Courts had taken the view that if "seniority-cum- merit"
criterion is adopted for the purpose of promotion, then first the seniormost
eligible employee has to be tested to find out whether he possesses the minimum
required merit for holding the higher post and only if he is not found suitable
or fit, his immediate junior ma be tested for the purpose of promotion. The
said view was assailed before this Court by the various regional rural banks as
well as the promoted officers whose promotions had been set aside by the
impugned judgments of the High Court.
This
Court noted that in the matter of formulation of a policy for promotion to a
higher post, the two competing principles which may be taken into account are
inter-se seniority and comparative merit of employees who are eligible for
promotion.
This
Court observed :
"In
Sant Ram Sharma vs. State of Rajasthan (AIR
1967 SC 1910), this Court has pointed out that the principle of seniority
ensures absolute objectivity by requiring all promotions to be made entirely on
grounds of seniority and that if a post falls vacant, it is filled by the
person who had served longest in the post immediately below. But the seniority
system is so objective that it fails to take any account of personal merit. It
is fair to every official except the best ones. An official has nothing to win
or lose provided he does not actually become so inefficient that disciplinary
action has to be taken against him. The criterion of merit, on the other hand,
lays stress on meritorious performance irrespective of seniority and even a
person, though junior but much more meritorious than his seniors, is selected
for promotion. The Court has expressed the view that there should be a correct
balance between seniority and merit in a proper promotion policy. The criteria
of "seniority-cum-merit" and "merit-cum-seniority" which
take into account seniority as well as merit seek to achieve such a
balance." This Court also noted that while the principle 'seniority-cum-
merit' lays greater emphasis on seniority, 'merit-cum-seniority' laid greater
emphasis on merit and ability and seniority plays a less significant role,
becoming relevant only when merit is approximately equal. After referring to
several decisions bearing on the issue, this Court enunciated the following
general principle in regard to promotions by seniority cum merit (at para 18)
which is relied on by the Appelllant :
"We
thus arrive at the conclusion that the criterion of
"seniority-cum-merit" in the matter of promotion postulates that
given the minimum necessary merit requisite for efficiency of administration,
the senior, even though less meritorious, shall have priority and a comparative
assessment of merit is not required to be made. For assessing the minimum
necessary merit, the competent authority can lay down the minimum standard that
is required and also prescribe the mode of assessment of merit of the employee
who is eligible for consideration for promotion. Such assessment can be made by
assigning marks on the basis of appraisal of performance on the basis of
service record and interview and prescribing the minimum marks which would
entitle a person to be promoted on the basis of seniority-cum-merit."
Thereafter, this Court took up the cases of each Bank separately. While dealing
with the case relating to Chhindwara- Seoni Kshetriya Gramin Bank, this Court
observed thus (in para 37) which is relied on by the Respondents :
"During
the course of hearing of the appeal, the learned counsel for the
respondent-Bank has placed before us the relevant documents relating to the
impugned selection and promotion. On a perusal of the said documents, we find
that 50 marks out of the total of 100 marks were prescribed as the minimum
qualifying marks for interview and only those who had obtained the qualifying
marks in interview were selected for promotion on the basis of seniority. It
was, therefore, a case where a minimum standard was prescribed for assessing
the merit of the candidates and those who fulfilled the said minimum standard
were selected for promotion on the basis of seniority. In the circumstances, it
cannot be said that the selection has not been made in accordance with the
principle of "seniority-cum-merit". We are, therefore, unable to
uphold the impugned judgment of the High Court. The appeal has to be allowed
and the impugned judgment of the High Court dated 7.2.1997 passed by the
learned Single Judge of the High Court has to be set aside and the promotion of
the appellant on the post of Area/Senior Manager under order dated 8.4.1993 has
to be affirmed."
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Before considering the effect of
observations in para 37 of the decision in SIVAIAH, relating to Chindwara-Seoni
Kshetriya Gramin Bank, let us refer to what this Court held with reference to
other Banks :
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Rayalaseema Grameena
Bank had adopted a system of assessment where weightage to be given (total of
120 marks) was divided into seniority (34 marks), qualification (10 marks),
interview (20 marks) and performance (56 marks). Only those officers who had
secured the higher number of marks were ultimately promoted. On these facts,
this Court held :
"It
is not a case where minimum qualifying marks are prescribed for assessment of
performance and merit and those who secure the prescribed minimum qualifying
marks are selected for promotion on the basis of seniority. In the
circumstances, it must be held that the High Court has rightly come to the
conclusion that the mode of selection that was in fact employed was contrary to
the principle of "seniority-cum-merit" laid down in the Rules."
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Pinakini Grameena
Bank had adopted a system of assessment where weightage to be given (total of
100 marks) was divided into seniority (55 marks), passing CAIIB (5 marks)
performance (25 marks) and interview (15 marks). Only those who secured highest
number of marks were promoted. This Court held :
"The
said circular did not prescribed minimum qualifying marks for assessment of
performance and merit on the basis of which an officer would be considered for
being selected and, as pointed out by the High Court, the selection was made of
only those officers who secured the highest number of marks amongst the
eligible officers. In the circumstances, the High Court, in our view, has
rightly held that this method of selection was contrary to the principle of
"seniority-cum-merit" and it virtually amounts to the application of
the principle of "merit-cum-seniority".
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Bastar Kshetriya
Gramin Bank made selections on the basis of interview of all the eligible
officers by the Staff Selection Committee and a select list of five persons was
prepared and on that basis promotions were made. This Court held :
"It
is not disputed that the selection was made on the basis of marks assigned on
the basis of interview by the Selection Committee and those who secured the
highest marks were selected. The selection process adopted for the purpose of
promotion to the post of Area Managers/Senior Managers was thus not in
consonance with the principle of "seniority-cum-merit" and the
promotions were not made in accordance with the Rules."
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Thereafter, this Court considered
the case of the first Respondent Bank itself (in paras 33 to 35). There also
the bank relied on the very same promotion policy contained in circular dated
2.2.1989 (with which we are concerned) for promotion to the post of Area/Senior
Manager by seniority cum merit. The promotion policy provided that the
promotion from the post of officer to Area/Senior Manager shall be on the basis
of his overall performance based on appraisal reports and his potentiality
shall be assessed in the interview, duly supplemented by weightage for job
responsibility, placement, posting mobility etc. 100% weightage was divided
into seniority (15 marks), job responsibility (12 marks), placement/posting
mobility (8 marks), performance (40 marks) and interview (25 marks). As in the
case of promotion to the post of Field Supervisors, the policy provided that
the candidates who secure less than 40% of the marks allocated for interview,
shall not be considered for promotion and the list of successful candidates in
the order of total marks obtained will be placed by the Staff Selection
Committee for consideration for promotion. The challenge to the promotion of
Area/Senior Managers on the above basis was upheld by the learned Single Judge
and confirmed in Appeal b the Division Bench. This Court dismissed the appeals
on the following reasoning :
"For
the same reasons, civil appeals arising out of Special Leave Petition [C}
Nos.19965-19966 of 1997 are also liable to be dismissed inasmuch as according
to the promotion policy dated 2.2.1989, selection was made on the basis of the
total number of marks obtained by the eligible candidates. The criterion of the
promotion policy cannot be regarded as being in consonance with the principle
of "seniority-cum-merit" as prescribed under the Rules."
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It is thus clear that this Court did
not accept the promotion policy contained in circular dated 2.2.1989 as being
in consonance with the principle of seniority-cum-merit. This Court held that
the policy which did not prescribe a minimum standard for assessing merit and
which promoted candidates on the basis of comparative merit, with reference to
total marks obtained by the eligible candidates, followed the merit-cum-
seniority principle. The decision in SIVAIAH relating to Area/Senior Managers
of the first respondent bank was followed by the High Court in the case of
appellant, in its judgment dated 13.10.1998 and it was held that the procedure
adopted by the first respondent bank for promotion of third Respondent and V.P.
Singh as per circular dated 2.2.1989 was contrary to the Rules which required
promotions by seniority- cum-merit, and the bank was directed to redo the
promotions by considering the case of appellant and other eligible candidates
by adopting the criteria of seniority cum merit. That decision attained
finality as the appeal and SLP were rejected. It may be stated that even prior
to the decision in SIVAIAH relating to Area/Senior Managers of the first
respondent bank, the same view had been expressed in the earlier judgment dated
9.10.1996 of the Division Bench of the Madhya Pradesh High Court in LPA
No.151/1996 and connected cases and civil appeals arising out of SLP (c)
Nos.17780-81/1997 filed against the said judgment dated 9.10.1996 had been
dismissed.
Therefore
we have several rounds of litigation which had been fought up to this court
where the High Court and this court have repeatedly and clearly held that the
procedure prescribed, in the promotion policy circular dated 2.2.1989, is not
in consonance with the principle of seniority-cum-merit prescribed for
promotion under the Rules but amounted to following the principle of merit cum
seniority and therefore vitiated. What is surprising is that, in spite of these
decisions, the first respondent bank again adopted the very same procedure
contained in the promotion policy of 2.2.1989 and again failed to promote the
appellant by assigning him marks of 16 (20), 10 (10), 3(5), 24 (40) and 9 (25)
and held that he was not eligible for promotion as he did not secure the
minimum marks of 10 prescribed for interview. But, admittedly, there was no
overall minimum and the procedure required assessment of comparative merit.
This is not therefore a case of the appellant failing to secure the minimum necessary
merit required for promotion but a case where the appellant's entitlement to
promotion was sought to be assessed by adopting a procedure which allotted 20
marks for seniority, 40 marks for performance, 15 marks for posting at rural
and difficult centres and 25 marks for interview. The bank has persisted in
adopting the merit-cum-seniority procedure in spite of the decisions of this
Court in several rounds of litigation referred to above. As the entire
promotion procedure adopted by the bank as per its policy dated 2.2.1989 has
stood rejected by the High Court and this court in SIVAIAH (supra) as also in
the earlier round of litigation of Appellant, the promotion of third Respondent
and non-promotion of appellant by adopting the very same procedure is liable to
be interfered with.
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Interviews can be held and
assessment of performance can be made by the Bank in connection with
promotions. But that can be only to assess the minimum necessary merit. But
where the procedure adopted, does not provide the minimum standard for
promotion, but only the minimum standard for interview and does the selection
with reference to comparative marks, it is contrary to the Rule of
'seniority-cum-merit'. This aspect of the matter has been completely lost sight
of by the learned Single Judge and the Division Bench of the High Court in this
round of litigation. As noticed above, they have proceeded on the basis that
the appellant having failed to secure the minimum marks prescribed for
interview, was rightly denied promotion, by ignoring the principle laid down by
this court in SIVAIAH in regard to seniority-cum-merit. At all events, as the
promotion policy adopted by the Bank was held to be illegal in the earlier
round of litigation (W.P. No. 4485/1993 dated 13.10.1988), the Bank could not
have adopted the same policy to again reject the Appellant for promotion. We
may also note that the law laid down in SIVAIAH was reiterated in Sher Singh
vs. Surinder Kumar [1998 (9) SCC 652] wherein this Court had occasion to
consider a similar question relating to the promotion for the post of clerk to
Field Supervisor in the case of another Gramin Bank. This Court held that as
the criterion for making promotion from the post of clerk to that of Field
Supervisor was seniority-cum-merit but the Bank did not follow the criterion of
seniority-cum-merit but made promotions on the basis of merit-cum-seniority,
the promotion was vitiated and therefore invalid.
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We will now deal with para 37 in
SIVAIAH (supra) relied on by the Respondents. Para 37 related to Chhindwara- Seoni
Kshetriya Gramin Bank where the procedure adopted for promotion was different
from the criteria that was adopted by the Rewa Sidhi Gramin Bank, first
respondent herein. In the case of Chhindwara Seoni Kshetriya Bank, the assessment
of minimum necessary merit was by interview. The candidate who secured a
minimum of 50 out of 100 marks in the interview, was selected for promotion on
the basis of seniority. It was thus found to be a case where minimum standard
was prescribed for assessing the merit of the candidates and those who
qualified by securing the minimum marks (50%) were promoted strictly as per
seniority. Thus, it was in consonance with the principle of
seniority-cum-merit. Therefore, the observations in para 37 of SIVAIAH are of
no assistance to Respondents. As we have already noticed, in this case, the
procedure is not one of ascertaining the minimum necessary merit and then
promoting the candidates with the minimum merit in accordance with seniority,
but assessing the comparative merit by drawing up a merit list, the assessment
being with reference to marks secured for seniority, performance, postings at
rural/difficult places and interview. The fact that the appellant had failed to
secure the minimum marks in interview, is not relevant as the entire procedure
adopted by the bank (of which interview is a part) is found to be vitiated and
not in consonance with the principle of seniority cum merit.
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In this view of the matter, we do
not propose to go into the contention of the appellant that though he had
secured very high percentages (overall 62%), with the intention of deliberately
denying him promotion, he had been failed in interview by giving him 9 marks as
against the minimum of 10 for interview.
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The learned counsel for the Bank
placed reliance on the decision of this Court in K. Samantaray vs. National
Insurance Co. Ltd., [2004 (9) SCC 286), where this Court following the earlier
decision in Syndicate Bank SC & ST reiterated that apart from the
recognized methods of seniority- cum-merit and merit-cum-seniority, there can
also be a third method, that is a hybrid mode of promotion. This Court observed
:
"While
laying down the promotion policy or rule, it is always open to the employer to
specify the area and parameter of weightage to be given in respect of merit and
seniority separately so long as policy is not colourable exercise of power, nor
has the effect of violating any statutory scope of interference and other
relatable matters." But in that case promotions were not governed by any
statutory Rules, but by a promotion policy. The above observations made with
reference to such a policy, which wholly occupied the field insofar as
promotion is concerned, are not relevant where the statutory Rules require
promotion by seniority-cum-merit.
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The next question that arises for
consideration is the relief to be granted. The appellant was first considered
for promotion during 1991 and was not promoted, by wrongly adopting the
principle of merit-cum-seniority. The said procedure was found to be erroneous
by the Single Judge, Division Bench and by this court. The Bank was directed to
consider the case of Appellant for promotion on the basis of
seniority-cum-merit. Thereafter, in the contempt proceedings initiated by the
appellant, the Bank undertook to comply with the order directing consideration
of the appellant's case by the procedure of seniority cum merit. But the Bank,
again by adopting the merit-cum-seniority method, failed to promote the
appellant and promoted third respondent. The procedure adopted by the Bank had
been found to be faulty on three occasions by this Court and the High Court,
one of which was in the case of Appellant himself. The appellant had been
denied promotion for more than 16 years by repeatedly adopting such an
erroneous procedure. In the circumstances, we do not think it necessary to
drive the appellant once again to face the process of selection for promotion.
This Court in Comptroller and Auditor General of India v. K.S. Jagannathan [1986 (2) SCC 679] observed thus :
"There
is thus no doubt that the High Courts in India exercising their jurisdiction
under Article 226 have the power to issue a writ of mandamus or a writ in the
nature of mandamus or to pass orders and given necessary directions where the
government or a public authority has failed to exercise or has wrongly
exercised the discretion conferred upon it by a statute or a rule or a policy
decision of the government or has exercised such discretion mala fide or on
irrelevant considerations or by ignoring the relevant considerations and
materials or in such a manner as to frustrate the object of conferring such
discretion or the policy for implementing which such discretion has been
conferred. In all such cases and in any other fit and proper case a High Court
can, in the exercise of its jurisdiction under Article 226, issue a writ of
mandamus or a writ in the nature of mandamus or pass orders and given
directions to compel the performance in a proper and lawful manner of the
discretion conferred upon the government or a public authority, and in a proper
case, in order to prevent injustice resulting to the concerned parties, the
court may itself pass an order or give directions which the government or the
public authority should have passed or given had it properly and lawfully
exercised its discretion." Having regard to the factual background of the
case, and having regard to the fact that even under the merit cum seniority
basis adopted by the bank the appellant had secured high marks and he was denied
promotion on the ground that he failed to secure minimum marks in the
interview, there is no need to refer the matter for fresh consideration. With a
view to do complete justice, in exercise of our power under Article 142 we
hereby direct the first respondent bank to promote the appellant as a Field
Supervisor, from the date the third defendant was promoted as Field Supervisor
and place him above the third Respondent. However, he will be entitled to
monetary benefits flowing from such promotion only prospectively, though the
pay is to be refixed with reference to the retrospective date of promotion.
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This appeal is allowed accordingly.
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