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Indian Council Of Agricultural Research And Another v. T.K Suryanarayan And Others

Supreme Court Of India
Aug 5, 1997
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Factual and Procedural Background

The Indian Council of Agricultural Research (ICAR) and its constituent institutes challenged three separate orders of the Central Administrative Tribunal (CAT):

  • Order dated 25-11-1993 of the Hyderabad Bench in OA No. 992/1991 (SLP(C) No. 16873/1995).
  • An order of the CAT that was the subject of SLP(C) No. 19103/1995 (details not specified in the text).
  • An order involved in SLP(C) No. 18567/1995; the respondent notified the Registry that he would not appear.

The Tribunal had granted accelerated promotions to the respondent-employees on the ground that, prior to the introduction of the ICAR Technical Service Rules effective 01-10-1975, many similarly situated employees had received promotions based on higher educational qualifications. ICAR contended that such promotions were inconsistent with Rules 5-1 and 7-2 of the 1975 Rules. The Supreme Court granted leave, heard all parties together, and delivered the present decision.

Legal Issues Presented

  1. Whether employees who were not initially fitted in Grade T-1-3, Category 1 on 01-10-1975 could later claim an “accelerated promotion” to Grade T-2-3, Category 2 solely on the basis of educational qualifications.
  2. Whether earlier erroneous or unchallenged promotions of other employees could create an enforceable right in law for similarly situated employees to receive promotions contrary to the statutory 1975 Service Rules.
  3. Whether the Supreme Court, in exercise of its discretionary power under Article 136, should refuse interference because two of the three respondents had already retired and alleged hardship or discrimination would result.

Arguments of the Parties

Appellants (ICAR & its Institutes)

This information was not available in the provided opinion.

Respondents

  • The precedent of Khetra Mohan Das should not govern the present case because it dealt with a direct‐recruit employee, whereas the present respondents were in-service employees with long experience.
  • Before 01-01-1977 the respondents were in the pay-scale of Rs 425–700; therefore, their situation warranted different treatment.
  • ICAR had permitted many comparable employees to receive promotions and had not appealed against those decisions, resulting in hostile discrimination against the present respondents.
  • Two respondents had already superannuated; the lone serving respondent would suffer serious prejudice if the Tribunal’s order were disturbed, and the Court should exercise discretionary leniency under Article 136.
  • ICAR’s own letters dated 27-01-1979 and 28-01-1980 directed units not to implement the 1975 Rules pending consideration of employee representations, showing that the organisation itself recognised the hardship created.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Director, Central Rice Research Institution v. Khetra Mohan Das, 1994 Supp (3) SCC 595; (1994) 28 ATC 588; JT (1994) 6 SC 482 (a) Fitment in Grade T-1-3 on 01-10-1975 is a one-time exercise.
(b) Accelerated promotion to Grade T-2-3 based on qualification is permissible only as a consequential step to such initial fitment.
(c) Promotions cannot be granted contrary to the 1975 Service Rules.
The Court treated this precedent as controlling. It held that the respondents, not having been fitted in Grade T-1-3 at the inception of the Rules, could not demand accelerated promotion later. The CAT’s contrary view was therefore unsustainable.

Court's Reasoning and Analysis

The Supreme Court rejected the respondents’ submissions for the following reasons:

  1. Strict application of statutory rules: The 1975 Service Rules are statutory in nature and must be followed. Courts cannot sanction promotions granted in violation of those rules.
  2. One-time fitment scheme: Under Khetra Mohan Das, initial fitment into Grade T-1-3 on 01-10-1975 could alone trigger an accelerated promotion to Grade T-2-3. The respondents were originally fitted in lower grades and therefore never qualified for such acceleration.
  3. Precedent of erroneous promotions: Erroneous or unchallenged promotions of other employees cannot create a legal entitlement to perpetuate further violations of the Rules. Courts must correct, not compound, earlier errors.
  4. Article 136 discretion: Claims of hardship, discrimination, or retirement of some respondents do not justify sustaining orders that contravene statutory provisions.
  5. Prospective relief left to rule-maker: The Court observed that issues of hardship or the need to amend the Rules lie within the domain of the rule-making authority, not the judiciary.

Holding and Implications

HELD: The appeals are allowed; the judgments of the Central Administrative Tribunal in all three matters are set aside; the Special Leave Petition (C) No. 18567/1995 is also allowed. No order as to costs.

Implications: The respondent-employees lose the accelerated promotions granted by the Tribunal. The decision reaffirms the authority of statutory service rules and the principle that earlier erroneous promotions do not create enforceable rights for others. No new precedent was created, but the judgment strengthens the binding nature of Khetra Mohan Das and underscores the necessity for rule-makers, not courts, to address any resultant hardship.

Show all summary ...

Order

1. Leave granted.

2. Heard learned counsel for the parties.

3. In appeal arising out of SLP (C) No. 16873 of 1995, the order passed by the Central Administrative Tribunal, Hyderabad Bench on 25-11-1993 in OA No. 992 of 1991 is under challenge. The Tribunal by the impugned judgment has allowed the application filed by Respondents 1 to 3 in view of the fact that the Indian Council of Agricultural Research having allowed a large number of employees to get promotion in different units on the basis of educational qualification and the said respondents having also been given promotion on the basis of higher educational qualification should not suffer any prejudice by being denied such promotions on the ground that the Technical Service Rules of Indian Council of Agricultural Research enforced with effect from 1-10-1975 do not permit such promotion. The Tribunal has also proceeded on the footing that if the said respondents had reached the grade of T-1-3 Category 1 even on promotion, the said respondents, having requisite qualification for holding the posts in Grade T-2-3 of Category 2, were entitled to accelerated promotion to the said T-2-3 grade.

4. It may be indicated that in a similar case, the Indian Council of Agricultural Research and Director, Central Tobacco Research Institute, Rajamundry challenged the decision of the Central Administrative Tribunal, Cuttack Bench against the judgment of the said Tribunal in favour of one Shri Khetra Mohan Das.

5. A three-Judge Bench of this Court has considered the import of Rules 5-1 and 7-2 of the said Service Rules coming into force on 1-10-1975. It has been clearly indicated in the said decision of this Court reported in Director, Central Rice Research Institution v. Khetra Mohan Das 1994 Supp (3) SCC 595, (1994) 28 ATC 588, JT (1994) 6 SC 482 that the question of fitment in Grade T-1-3 in Category 1 had consequential accelerated promotion to Grade T-2-3 in Category 2 on the basis of educational qualification of such employee on the date of enforcement of the said Service Rules is a one-time exercise. If an employee does not get fitment on the date of enforcement of the said Rules in Grade T-1-3 of Category 1, the question of accelerated promotion to Grade T-2-3 of Category 2 on the basis of educational qualification cannot arise. It has been clearly indicated that despite higher qualification required for holding the post in Grade T-2-3, if the initial fitment has not been made in Grade T-1-3 such employee is not entitled to claim accelerated promotion to Grade T-2-3 of Category 2. Such employee can come to the higher grade only on the basis of promotion as envisaged in Rule 7. It may however be indicated at this stage that later on there has been some relaxation in the matter of requisite educational qualification for holding the post in Grade T-2-3. It has been held in the case of Khetra Mohan Das 1994 Supp (3) SCC 595, (1994) 28 ATC 588, JT (1994) 6 SC 482 that promotion cannot be given contrary to the said Service Rules. Precisely for the said reason, the decision of the Central Administrative Tribunal, Cuttack Bench in Khetra Mohan case was set aside.

6. Mr De, the learned counsel appearing for the respondents in SLP (C) No. 16873 of 1995 has, however, submitted that the decision rendered in Khetra Mohan case 1994 Supp (3) SCC 595, (1994) 28 ATC 588, JT (1994) 6 SC 482 should not be taken into consideration for deciding the correctness of the impugned judgment of the Tribunal. In the case of Khetra Mohan the claim of promotion of a direct recruit was involved and the claim of promotion of in-service employees in view of long experience over the years did not come up for consideration in the said case. Mr De has also submitted that the respondents in this case were in the pay scale of Rs 425-700 before 1-1-1977. Therefore, their cases were required to be considered differently. Mr De has also submitted that in any event, hostile discrimination has been made to these respondents. A large number of employees similarly circumstanced have got promotion but the Institute for inexplicable reasons chose not to challenge such order for promotions even though such promotions directed to be given were contrary to the said Service Rules. Such discriminatory stand has resulted in an unfortunate situation where a number of employees who are similarly circumstanced are holding superior posts. But in the case of these respondents, the Institute appears to be keen in enforcing the Service Rules by ignoring the fact that the respondents had qualifications to hold superior grades when the said Service Rules were introduced. Mr De has lastly contended that out of the three respondents, two have already attained the age of superannuation and only one of the respondents is still in service but if the impugned judgment of the Tribunal is interfered with, the said respondent will suffer serious prejudice. Mr De has submitted that in the special facts of this case, this Court should not be inclined to interfere in exercise of its discretionary power under Article 136 of the Constitution.

7. Mr Lalit, the learned counsel appearing for the respondent in SLP (C) No. 19103 of 1995, has also supported Mr De by contending that the management of the Indian Council of Agricultural Research and its constituent units intend to take different stands resulting in hostile discrimination to a large number of employees. He has also drawn our attention to two letters issued by the Indian Council of Agricultural Research dated 27-1-1979 and 28-1-1980. Mr Lalit has submitted that the said two letters indicate that the Indian Council of Agricultural Research was alive to the unfortunate situation created by the introduction of the said Service Rules and unmerited hardship meted out to a number of employees. It, therefore, directed the units concerned not to implement the said Rules until various representations received by the Institute were considered. Mr Lalit has submitted that the respondents in these SLPs had requisite qualification to get promotion because of the relaxation of the educational qualification and all of them had long experience in service. He has, therefore, submitted that if the promotion claimed by them since allowed by the Central Administrative Tribunal is interfered with at this stage such decision is bound to bring complete frustration to these respondents. In the facts and circumstances of the case, this Court should refrain from interfering with the impugned decision of the Tribunal for the ends of justice.

8. We are, however, unable to accept the submission made by the learned counsel appearing in both these SLPs. Even if in some cases, erroneous promotions had been given contrary to the said Service Rules and consequently such employees have been allowed to enjoy the fruits of improper promotion, an employee cannot base his claim for promotion contrary to the statutory service rules in law courts. Incorrect promotion either given erroneously by the Department by misreading the said Service Rules or such promotion given pursuant to judicial orders contrary to Service Rules cannot be a ground to claim erroneous promotion by perpetrating infringement of statutory service rules. In a court of law, employees cannot be permitted to contend that the Service Rules made effective on 1-10-1975 should not be adhered to because in some cases erroneous promotions had been given. The statutory rules must be applied strictly in terms of the interpretation of rules as indicated in the decision of a three-Judge Bench of this Court in Khetra Mohan case 1994 Supp (3) SCC 595, (1994) 28 ATC 588, JT (1994) 6 SC 482. When the said Service Rules were introduced w.e.f 1-10-1975, one-time exercise was required to be made to decide the fitment of the employees in different grades. Except in case of fitment in Grade T-1-3 of Category 1 and consequential accelerated promotion to Grade T-2-3 of Category 2, on the basis of qualification in no other case accelerated promotion on the basis of educational qualification is permissible. If relaxation of educational qualification is made effective on the date of enforcement of the said Service Rules it will be a case of review of initial fitment. In all other cases, promotion is to be given in accordance with the said Service Rules and not otherwise. The respondents in these appeals were not entitled to get initial fitment in Grade T-1-3. As a matter of fact, they got initial fitment in grade lower than Grade T-1-3 of Category 1. Therefore, they are not entitled to accelerated promotion on the basis of educational qualification consequent upon the initial fitment in Grade T-1-3 of Category 1. The impugned decisions of the Tribunal, therefore, cannot be sustained.

9. It may, however, be indicated that the question of unmerited hardship if any, and need for amendment of the Rules to remove such hardship, are matters for consideration of the rule-making authority. It is reasonably expected that the authority concerned will be sensitive to unmerited hardship to a large number of its employees, if occasioned by introduction of Service Rules so that appropriate remedial measures may be taken. Since the impugned orders of the Tribunal cannot be sustained in law, the impugned judgments in both the appeals are set aside.

Special Leave Petition (C) No. 18567 of 1995

10. No one has appeared for the respondent in SLP (C) No. 18567 of 1995. The respondent has informed the Registry of this Court that he is not in a position to appear at the hearing of the matter. Since the impugned decision in this special leave petition cannot be sustained for reasons indicated in the other two matters, the impugned judgment in this SLP is also set aside. The appeals and the SLP are accordingly disposed of without any order as to costs.