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Case Number
Disposition
Advocates
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Acts
  • Article 32 of the Constitution
  • Food Corporation Act, 1964
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Article 32 of the Constitution
  • Food Corporation Act, 1964
Smart Summary

Factual and Procedural Background

Five employees of the Food Corporation of India (FCI) filed a petition under Article 32 of the Constitution challenging a series of decisions and circulars beginning in 1977 by which FCI, with Central Government approval, created a separate Accounts Cadre. The restructuring commenced with a circular dated 2 February 1977 and a notification dated 5 February 1977 that amended the Food Corporation of India (Staff) Regulations, 1971 to allow qualified personnel in the General Administration Cadre to opt into the new Accounts Cadre at the Assistant Grade III, II and I levels. A further notification dated 17 November 1977 expanded the scheme to include Assistant Managers and required intensive training for those who opted in. Four of the petitioners were Assistant Grade I and one was Assistant Grade III in the General Administration Cadre.

Subsequent circulars, notably one dated 17 January 1984, permitted employees to withdraw their option and return to their original cadre while preserving seniority. The petitioners sought, inter alia, declarations that the formation of the Accounts Cadre and the various circulars were illegal, quashing of the impugned circulars, and prohibitory relief against further promotions within the Accounts Cadre. The Supreme Court (per D. P. Wadhwa, J.) delivered the present judgment dismissing the petition.

Legal Issues Presented

  1. Whether the creation of a separate Accounts Cadre in FCI pursuant to the notifications of 1977 was illegal and void.
  2. Whether the circulars and office orders issued between 1984 and 1987 concerning options to join or leave the Accounts Cadre were liable to be quashed.
  3. Whether employees who opted into the Accounts Cadre and allegedly obtained accelerated promotion infringed any legal right of the petitioners remaining in the General Administration Cadre.

Arguments of the Parties

Petitioners' Arguments

  • The 1977 formation of the Accounts Cadre and subsequent amendments to the Staff Regulations were illegal.
  • The impugned circulars of 1984 and 1987 unjustly allowed employees to move in and out of the Accounts Cadre, thereby disturbing cadre integrity and seniority.
  • Employees who opted into the Accounts Cadre received accelerated promotions, prejudicing the petitioners who remained in the General Administration Cadre.
  • Promotions were granted to at least 12 officials with lesser qualifications (up to Matric/Intermediate) who were junior to the petitioners.

Respondents' Arguments

This information was not available in the provided opinion.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court held that FCI, as an autonomous corporation acting with Central Government approval, was entitled to restructure its service cadres to meet administrative needs. The petitioners provided no basis to question either the decision to create a specialised Accounts Cadre or the qualifications prescribed for entry into it. The Court observed:

  • The petitioners neither possessed the requisite qualifications nor asserted that they had opted for the Accounts Cadre and were wrongly denied absorption.
  • Alleged accelerated promotions enjoyed by opt-in employees represented a contingency every employee faces and did not constitute a legal wrong.
  • The circular of 17 January 1984 merely offered employees a chance to revert to their original cadre while preserving seniority, a step the Court found unobjectionable and consistent with earlier policy.
  • Lack of specific particulars regarding the 12 allegedly favoured officials prevented the Court from examining any individual case of discriminatory promotion.

Finding no substantive violation of law or of the petitioners’ rights, the Court concluded that the challenge was without merit.

Holding and Implications

Petition Dismissed. No order as to costs.

Immediate effect: all impugned circulars, notifications and promotions stand undisturbed; the Accounts Cadre continues to operate as constituted. The judgment is fact-specific and sets no new precedent beyond reaffirming an employer’s discretion to reorganise cadres when done within statutory authority.

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    Dharam Pal And Others v. Food Corporation Of India And Others

    D.P Wadhwa, J.— In this petition under Article 32 of the Constitution the five petitioners have prayed for the following reliefs:

    “(a) issue declaration that the formation of Accounts Cadre in the Food Corporation of India made in the year 1977 is illegal and void;

    (b) issue a writ of certiorari quashing Circular No. 3 of 1984 dated 17-1-1984, Office Order No. 57 of 1987 dated 26-3-1987, No. 80 of 1987, dated 22-4-1987 and No. 87 of 1987 dated 29-12-1987 issued by the Food Corporation of India/Respondent 1;

    (c) direct the Food Corporation of India by issuing an appropriate writ in the nature of mandamus that all the optees in pursuance of Notifications dated 5-2-1977 and 17-11-1977 and Notification No. 3 of 1984 dated 17-1-1984 be placed in their respective cadres and may declare that all the optees aforesaid shall remain placed in their respective cadres where before 1977;

    (d) issue a writ in the nature of prohibition prohibiting the respondents from making any further promotion in the Accounts Cadre;

    (e) to declare Notifications dated 5-2-1977 and 17-11-1977 issued by the Food Corporation of India as illegal and void;

    (f) any other writ or writs, order or orders, direction or directions;

    (g) allow the costs.”

    2. The petitioners are working in the Food Corporation of India, a Corporation, established under the Food Corporation Act, 1964.

    3. The Corporation with the approval of the Central Government took a decision to form a separate Accounts Cadre from the level of Assistant Grade III onwards. A circular to this effect was issued on 2-2-1977. It was stated in the circular that the Accounts Cadre at the level of AG III, AG II and AG I would initially be formed by transfer of the qualified personnel from the General Administration Cadre. Options were, therefore, called for from AG I in the General Administration Cadre possessing a degree in Commerce, Mathematics or Statistics for transfer to the Accounts Cadre as AG I (A/Cs). It was also mentioned that the options of such AG I (General Administration) for transfer to the Accounts Cadre would be subject to their passing a departmental test, details of which would be intimated in due course. Similar options were called from AG II and AG III (General Administration) for their transfer to the grades of AG II (A/Cs) and AG III (A/Cs) respectively. A notification incorporating the policy decision was issued on 5-2-1977 and accordingly the Corporation amended the Food Corporation of India (Staff) Regulation, 1971. If we refer to the notification initial recruitment to Assistant Grade III in the newly-formed Accounts Cadre was from Assistant Grade III of the General Cadre possessing the prescribed qualifications who would be transferred to the Accounts Cadre on the basis of option.

    4. Subsequently by notification dated 17-11-1977 an amendment was issued which modified the earlier notification dated 5-2-1977 which provided that initially all the Assistant Managers, Accounts Grades I, II and III belonging to all cadres and possessing the prescribed qualification for respective posts and who were considered to be competent and capable and possessed the aptitude for accounts work would be transferred to the Accounts Cadre on the basis of such option. It had also been provided that the optees were to be subject to a very intensive training course and that those selected in the new Accounts Cadre were to be given necessary training at the Corporation's Zonal and Central Training Institutes. Four of the petitioners are Assistant Grade I and the fifth is Assistant Grade III in the General Cadre (Administration).

    5. It is difficult to understand how there can be any challenge if the Corporation decides to form a separate Accounts Cadre considering the administrative necessity in its working. We also fail to see as to how the petitioners who are similarly placed like other employees in the General Cadre, prejudiced by formation/selection of the separate Accounts Cadre and consequent amending of the Regulations prescribing the qualifications for the initial absorption in the newly-created cadre and subsequent filling up of the posts in that cadre. The petitioners cannot challenge the qualifications fixed by the Corporation for absorption or subsequent recruitment in the Accounts Cadre. It is not the case of the petitioners that they possessed the requisite qualifications for absorption in the Accounts Cadre or even if they were qualified they gave any option for absorption in the Accounts Cadre or their absorption was not acceded to. Grievance of the petitioners appears to be that the optees who went to the Accounts Cadre got accelerated promotion which the petitioners were unable to get while still working in the General Administration Cadre. That is a chance an employee takes in any service. The petitioners refer to as many as 12 such officials who had been promoted to the posts of Assistant Manager (Accounts) when they possessed qualifications up to Matric, Higher Secondary or Intermediate and they were lower in seniority to the petitioners in the General Administration Cadre. Apart from mentioning their names, qualifications and their placement in the seniority, no particulars have been given if those officials were first initially taken in Grade III (Accounts) and subsequently got promotions. In the absence of any particulars it is not possible for us to accept the plea of the petitioners.

    6. The Corporation issued a circular on 17-1-1984 inviting reference to its earlier circulars of 1981 providing for withdrawal of options from the Accounts Cadre within a particular period. Again options were given to the employees to opt out of the Accounts Cadre and go back to the original cadre. Options were also given to category II and category III employees who were interested to join the Accounts Cadre and who possessed necessary qualifications and/or requisite working experience prescribed for each post in the Accounts Cadre in category II and category III posts. In the circular of 17-1-1984 it was clearly stipulated that those employees who would opt out of the Accounts Cadre would go to their original cadre and their transfer to the original cadres would be in the same grade from which they were transferred to the Accounts Cadre and that their seniority would, therefore, be maintained in the original cadre as it was before their transfer to the Accounts Cadre. It was clarified that if some of the juniors in the original cadre stood promoted to higher grades, the optees who would stand reverted on account of their option should also be considered for promotion as per the rules/instructions. It is again difficult to understand the grievance of the petitioners on this account as well. They cannot say that the employees who had given their options once to go to the Accounts Cadre should be stopped for all times from coming back to the original cadre even if they retained their old position in the seniority in the General Cadre. We do not find any valid ground for the petitioners to challenge the decision of the Corporation to give the options to the employees in the Accounts Cadre to revert back to the original cadre. All the circulars to which challenge has been made follow the general principles laid down in the earlier circulars. We find that in pursuance of circular dated 17-1-1984 as many as 170 employees gave options to revert back from the Accounts Cadre to their original cadre. They perhaps did not find the Accounts Cadre to be lucrative enough to remain there. It was a newly-constituted cadre and the employees who gave their options to go to that cadre subsequently did not find the usefulness of that cadre for their service for some reason or the other and the authorities had given them options to go back to the original cadre. The petitioners cannot make any grievance on that account.

    7. We do not find any merit in this petition and dismiss the same. There will, however, be no order as to costs.

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    Dharam Pal And Others v. Food Corporation Of India And Others
    (Oct 24, 1997)