“No Vested Right in an Un-concluded Selection” – Supreme Court Affirms Employer’s Power
to Scrap Pre-Bifurcation Recruitment
Commentary on THE TRANSMISSION CORPORATION OF TELANGANA STATE LIMITED v. CHUKKALA KRANTHI KIRAN
(2025 INSC 1029)
1. Introduction
The Supreme Court’s decision in The Transmission Corporation of Telangana State Limited v. Chukkala Kranthi Kiran & Ors. resolves a long-running employment dispute that originated in 2011, survived the 2014 bifurcation of Andhra Pradesh, and culminated in 2025. The core controversy concerned whether candidates listed in an earlier, yet un-concluded, selection process conducted by the erstwhile Andhra Pradesh Transmission Corporation (AP-Transco) could insist on appointment in the newly created Telangana Transmission Corporation (TSTransco) or whether TSTransco was entitled to cancel that process and undertake fresh recruitment better aligned to post-bifurcation requirements. The Supreme Court, overturning the Telangana High Court, has re-affirmed the principle that candidates in a select list have no vested right to appointment and that an employer may legitimately scrap a selection exercise if the decision is bona fide and responsive to changed organizational realities. The ruling also delineates the contours of “legitimate expectation” in public employment and clarifies the limited role of judicial review in such administrative decisions.
2. Summary of the Judgment
- The Court allowed TSTransco’s appeals and set aside the High Court’s directions that had mandated continuation of the 2011-12 recruitment and appointment of the writ-petitioners.
- It upheld Notification No.519 dated 11-12-2017 (cancelling the old recruitment) and Notification No.05/2017 dated 28-12-2017 (initiating a fresh process for 174 Sub-Engineer (Electrical) posts).
- The cancellation was held to be justified on three cumulative grounds: (i) protracted litigation had stalled the earlier process; (ii) bifurcation of the State had fundamentally altered manpower requirements; and (iii) the High Court’s own order of 13-10-2017 in connected review petitions had expressly granted liberty to the corporations to decide whether or not to proceed with the old notifications.
- The Court found that TSTransco had considered the legitimate expectation of previously shortlisted candidates by providing generous age relaxation in the new process, thereby satisfying the fairness standard.
- Section 79 of the Andhra Pradesh Reorganisation Act, 2014 was interpreted as a protective provision for already appointed employees and not as a vehicle granting an enforceable right to mere select-list candidates.
3. Analytical Commentary
3.1 Precedents Cited and Their Influence
- Shankarsan Dash v. Union of India, (1991) 3 SCC 47
Reiterated the bedrock rule that a candidate whose name appears in a select list acquires no indefeasible right to appointment. The Court relied on this to emphasise that non-appointment, by itself, is not arbitrary if supported by rational reasons. - East Coast Railway v. Mahadeva Apparao, (2010) 7 SCC 678
Cited by the respondents; distinguished by the Court because in East Coast the cancellation rested on a speculative defect, whereas in the present case the reasons (state bifurcation, time-lag, altered zone structure) were substantive and demonstrable. - High Court Review Orders (26-12-2014 & 13-10-2017)
These orders, though not strictly precedent, framed the legal environment: they removed any judicial compulsion to carry the old recruitment forward, giving the corporations explicit liberty to adopt a fresh course.
3.2 Legal Reasoning of the Supreme Court
The Court’s chain of reasoning can be broken into four logical steps:
- No Mandamus to Appoint. Under Shankarsan Dash, an employer can decide not to fill vacancies from an existing select list, provided the decision is bona fide.
- Assessment of “Bona Fide”. The Court scrutinised the internal file-notings and identified three legitimate triggers: (a) stalled process because of litigation over weightage; (b) state bifurcation producing new organisational boundaries; and (c) Court-given liberty in 2017. These collectively satisfied the test of reasonableness.
- Legitimate Expectation Addressed. By relaxing the upper age-limit to 44 years (well beyond the usual ceiling) TSTransco had afforded earlier candidates a fair opportunity. Judicial review does not extend to dictating the quantum of such accommodation once the fact of consideration is evident.
- Interpretation of Section 79, AP Reorganisation Act. The section safeguards vested service rights of persons already appointed; it cannot create a new entitlement for those still awaiting appointment at the time of bifurcation.
3.3 Potential Impact of the Judgment
- State Reorganisation & Recruitment: Establishes that successor entities may, without offending Article 14, cancel pre-split recruitments if organisational needs materially change.
- Contours of Legitimate Expectation: The decision clarifies that “age relaxation + open competition” can be sufficient to discharge the duty to treat previously shortlisted candidates fairly.
- Administrative Autonomy: Reinforces that administrative bodies enjoy a degree of autonomy in human-resource planning; courts will not second-guess management choices unless mala fides or patent arbitrariness are shown.
- Guidance to High Courts: Signals caution against issuing blanket directions to continue stale recruitment processes, especially where intervening events (e.g., reorganisation, prolonged litigation) render them obsolete.
4. Complex Concepts Simplified
- Vested Right
- A legal entitlement that has already crystallised and cannot be taken away except by due process. A name in a merit list, without an appointment letter, is not a vested right.
- Legitimate Expectation
- A doctrine in administrative law where a person expects a certain treatment from a public authority based on past conduct, promises, or consistent practice. It imposes an obligation of fair procedure, not necessarily the outcome desired by the claimant.
- Mandamus
- A writ issued by a court directing a public authority to perform a duty it is obliged to perform. Courts will not issue mandamus to appoint select-list candidates unless a statutory obligation exists.
- Bona fide Decision
- An action taken in good faith, for legitimate purposes, based on relevant considerations, and free from ulterior motives.
- Judicial Review
- Court’s power to examine the legality of administrative action. It focuses on the decision-making process, not the merits of the decision.
- Section 79, AP Reorganisation Act, 2014
- Protects service conditions of personnel already holding posts on the appointed day of bifurcation; it does not confer rights on candidates awaiting appointment.
5. Conclusion
The Supreme Court’s ruling in TSTransco v. Chukkala Kranthi Kiran cements a critical principle for public employment jurisprudence: a selection process that has not culminated in appointment does not generate enforceable rights, especially when significant factual developments—such as State reorganisation—undermine its relevance. The decision thoughtfully balances the employer’s operational autonomy against the candidates’ expectation of fairness, providing a pragmatic blueprint: offer a reasonable opportunity (for instance, age relaxation) and proceed with a recruitment exercise attuned to current needs. Future disputes arising out of administrative restructuring, mergers, or territorial realignment will likely look to this precedent for guidance on how far historic selection processes can (or must) be carried forward. Ultimately, the judgment reinforces that administrative necessity, transparency, and reasoned decision-making form the triad of defensible public actions.
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