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Smart Summary

Factual and Procedural Background

Onkar Chand, originally an officer in the Himachal Pradesh State Police, was deputed to the Intelligence Bureau (IB) on 17 August 1970 as a Junior Intelligence Officer Grade I (JIO-I). He was promoted while on deputation to Assistant Central Intelligence Officer Grade II (ACIO-II) on 11 October 1977 and assumed that post on 2 January 1978. Although he continued to work in the higher post, he was permanently absorbed in the IB as a JIO-I with effect from 31 December 1977 by order dated 10 December 1980. His service in the ACIO-II grade was later regularised only from 1 January 1985.

Chand contended before the Central Administrative Tribunal that his seniority in ACIO-II should run from 2 January 1978 (the date he joined that post) rather than 1 January 1985 (the date of regularisation). The Tribunal, relying on this Court’s decision in Narender Chadha v. Union of India, accepted his claim and ordered the Government to re-fix his seniority accordingly. The Union of India filed the present batch of appeals by special leave, challenging that order; however, it undertook not to disturb Chand and similarly situated respondents even if the appeals were allowed, seeking only a ruling for future cases.

Legal Issues Presented

  1. Whether service rendered by a deputationist in a higher post (ACIO-II) prior to his permanent absorption can be counted for the purpose of seniority in that post after absorption.
  2. Whether the Central Administrative Tribunal correctly applied the Supreme Court precedent in Narender Chadha v. Union of India to deputationists who later opted for permanent absorption.

Arguments of the Parties

Appellants (Union of India)

  • Under the Ministry of Home Affairs memorandum and the 1959 Office Memorandum (clause 7(iii)), a transferee/deputationist permanently absorbed must be placed below all departmental officers in the same grade as on the date of absorption; earlier deputation service cannot be counted for seniority.
  • Chand was permanently absorbed as JIO-I only w.e.f. 31 December 1977; therefore, his eligibility for regular promotion to ACIO-II arose only in 1984, when his departmental juniors were considered.
  • The Tribunal misapplied Narender Chadha, which concerned seniority between direct recruits and promotees within the same department, not between departmental officers and deputationists who later opted for absorption.

Respondent (Onkar Chand)

  • His continuous service as ACIO-II from 2 January 1978 should be recognised for seniority because he functioned in that higher post for many years before regularisation.
  • On that basis, he became eligible for promotion to ACIO-I five years earlier than recognised by the department.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Narender Chadha v. Union of India, (1986) 2 SCC 157 An employee who has been allowed to work in a higher post on ad hoc basis for a long period acquires a legitimate claim to that post and corresponding seniority. The Tribunal relied on this principle, but the Supreme Court held the case distinguishable because it dealt with direct recruits vs. promotees within the same service, whereas the present matter concerns deputationists later absorbed. The Court therefore found the Tribunal’s reliance misplaced.

Court's Reasoning and Analysis

The Court identified that Chand was a deputationist who later opted for permanent absorption. Under clause 7(iii) of the 22 December 1959 Office Memorandum, a person absorbed by transfer must be ranked below all existing departmental officers in that grade as on the absorption date. Consequently:

  • Chand’s seniority as JIO-I could start no earlier than 31 December 1977, the effective date of absorption.
  • His ad hoc promotion to ACIO-II was against the deputation quota; once he chose permanent absorption, he could not simultaneously claim seniority benefits flowing from service performed as a deputationist.
  • Thus, the departmental decision to regularise his ACIO-II service from 1 January 1985, and to consider him for further promotion only after completing five years in that grade, was consistent with the governing rules.
  • The Tribunal erred in transplanting the rationale of Narender Chadha, a case about intra-departmental disputes between direct recruits and promotees, to the fundamentally different context of deputation and absorption.
  • Any earlier Tribunal order allegedly supporting Chand was fact-specific and distinguishable; therefore, it could not justify altering Chand’s seniority.

Holding and Implications

Appeals Allowed; Tribunal’s order set aside.

The Court restored the seniority position originally fixed by the Government, holding that service rendered while on deputation cannot be counted for seniority after permanent absorption. Although the ruling nullifies the Tribunal’s directions, the contesting respondents (including Chand) will not be disturbed because the Government had already implemented the Tribunal’s order for them and sought the present judgment only for guidance in future cases. No costs were awarded. The decision clarifies the treatment of deputation service for seniority purposes but does not establish a new precedent beyond reaffirming existing governmental rules.

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    Union Of India And Another v. Onkar Chand And Others

    K. Venkataswami, J.— In all these appeals a common issue arises for consideration and decision. Hence they are heard and disposed of by this common judgment.

    2. By way of sample, the facts in the case of Onkar Chand (Civil Appeal No. 68 of 1990) are given. The said Onkar Chand originally belonged to Himachal Pradesh State Police and came on deputation to the Intelligence Bureau, Ministry of Home Affairs, Government of India on 17-8-1970 as JIO-I (Junior Intelligence Officer, Grade I). He continued as such until he was promoted against deputation quota to the next higher rank of Assistant Central Intelligence Officer, Grade II (for short “ACIO-II”) by an order dated 11-10-1977. Factually, he took charge of the said post on 2-1-1978. He was absorbed permanently in the Intelligence Bureau by an order dated 10-12-1980 with effect from 31-12-1977 as JIO-I. His services in the grade of ACIO-II were regularised with effect from 1-1-1985 by an order of even date.

    3. His grievance was that his seniority in the grade of ACIO-II was reckoned from 1-1-1985, the date of regularisation in that cadre, and not from 11-10-1977, the date on which he was promoted to that rank. It was his case that his services even as deputationist in the posts of JIO-I and ACIO-II should be taken for reckoning seniority.

    4. The next promotion from ACIO-II was to the post of ACIO-I. The minimum service required in the cadre of ACIO-II for promotion to the post of ACIO-I was complete five years. The appellants promoted him as ACIO-I only on 2-1-1990 on the ground that the said Onkar Chand was regularised in the cadre of ACIO-II with effect from 1-1-1985. According to the said Onkar Chand, he should have been considered with effect from the date on which he joined the post of ACIO-II on 2-1-1978, if not from the date of his promotion, namely, 11-10-1977, by counting his seniority accordingly. All his claims to that effect before the authorities concerned did not yield the desired results which obliged the said Onkar Chand to move the Tribunal for a direction to the authorities that his seniority in the cadre of ACIO-II should be fixed after counting his service from 2-1-1978 in that grade and consequently he should be eligible for being considered for future promotion on the said basis.

    5. The appellants opposed the claim of the said Onkar Chand by contending that according to the general principles of seniority, as per the memo issued by the Ministry of Home Affairs, the seniority of transferees was determined from the date they were appointed on transfer basis in the department. When so appointed on transfer basis, the transferees will be placed below all departmental officers promoted earlier than the date of the absorption of the transferees permanently in the Intelligence Bureau in the grade of JIO-I. In the case of Onkar Chand, he was permanently absorbed as JIO-I only on 10-12-1980 w.e.f 31-12-1977. His services earlier to 31-12-1977, according to the appellants, in the Intelligence Bureau in the capacity of deputationist will not be taken into account for the purpose of seniority in the cadre of JIO-I. On the absorption of Onkar Chand permanently w.e.f 31-12-1977, he will be placed juniormost in that cadre and the seniority will be counted accordingly. Though, in the meanwhile, he was promoted as ACIO-II on ad hoc basis against the deputation quota, his turn for regular promotion as ACIO-II will come only in the year 1984 as his junior departmental JIOs were promoted on the basis of 1984 DPC.

    6. The Tribunal was not impressed by the contentions put forward on behalf of the appellants. Purporting to follow a decision of this Court in Narender Chadha v. Union of India (1986) 2 SCC 157, it took the view that when a person has been allowed to function in a higher post for many years on ad hoc basis, it would be unjust to hold that he has no sort of claim to such post. The Tribunal has proceeded that such a view has been taken in the other case and purporting to follow that decision, the Tribunal held that the seniority of the said Onkar Chand in the cadre of ACIO-II will be counted from 2-1-1978 and accordingly directed the appellants to fix the seniority from the said date.

    7. Aggrieved by the above ratio laid down by the Tribunal, these appeals by special leave are filed.

    8. We may at the outset point out that Mr T.L.V Iyer, learned Senior Counsel appearing for the appellants, fairly stated that irrespective of the decision in these appeals, the contesting respondents will not be disturbed as the direction of the Tribunal has already been given effect to so far as the contesting respondents are concerned. In other words, the appellants are particular to get a decision on the point in issue for application in other cases.

    9. We have carefully perused the order of the Tribunal under challenge and considered the rival submissions. We are of the view that the Tribunal has misdirected itself in understanding and applying the ratio laid down by this Court in Narender Chadha case (1986) 2 SCC 157. That was a case concerning the seniority dispute between the direct recruits and promotees belonging to the same department. The case on hand is not a case of that type. On the other hand, the present case is a dispute concerning the seniority and promotions between the departmental candidates and deputationists, who had subsequently consented to be permanently absorbed in the Department of Intelligence Bureau. The Tribunal by extensively quoting from the judgment of this Court in Narender Chadha case (1986) 2 SCC 157, came to a wrong conclusion by applying the same to the facts of this case.

    10. The indisputable facts, which we have given above, will show that Onkar Chand was a deputationist. When he was permanently absorbed as JIO-I w.e.f 31-12-1977 he was factually working as JIO-I. Though, he was promoted to officiate in the rank of ACIO-II in the deputation quota by an order dated 11-10-1977, he joined that post on 2-1-1978. A perusal of the promotion list (vide Ex. R-II at p. 124) will show that separate lists were prepared for departmental candidates, permanently absorbed candidates and deputationists. It is also worthy to note that the inter se seniority among the different categories were also fixed in the list. It is not in dispute that the deputationists have got certain percentage of quota for promotion. The said Onkar Chand was promoted to officiate in the rank of ACIO-II only against the deputationist quota is not in dispute. At this juncture, it is necessary to quote the relevant clause in the office memorandum dated 22-12-1959 regarding the fixation of seniority of persons appointed by transfer in accordance with the Recruitment Rules. Clause 7(iii) reads as follows:

    “Where a person is appointed by transfer in accordance with provision in the Recruitment Rules providing for such transfer in the event of non-availability of a suitable candidate by direct recruitment or promotion such transferees shall be grouped with direct recruits or promotees, as the case may be, for the purpose of para 6 above. He shall be ranked below all direct recruits or promotees, as the case may be, selected on the same occasion.”

    (emphasis supplied)

    11. Therefore, when the said Onkar Chand was permanently absorbed (by transfer) in the cadre of JIO-I w.e.f 31-12-1977 he must take his seniority below the persons in the department already in the cadre of JIO-I on that date. One more relevant factor will be that a person in the cadre of JIO-I has to put in a minimum years of service before aspiring for promotion as ACIO-II. The appellants, taking the date of permanent absorption of the said Onkar Chand as JIO-I w.e.f 31-12-1977, fixed the seniority in that cadre and so considered his turn for regular promotion as ACIO-II came only in the year 1984 as his junior departmental JIOs were promoted on the basis of 1984 DPC.

    12. On these factors, one cannot find fault with the fixation of seniority of the said Onkar Chand by the appellants, which was challenged before the Tribunal. The Tribunal was not right in holding that the services rendered by the said Onkar Chand as a deputation promotee in the officiating cadre of ACIO-II from 2-1-1978 has to be reckoned. The earlier ad hoc promotion as ACIO-II being against the deputation quota that service cannot be claimed by a deputationist once he opted for permanent absorption in the department. If he wanted to continue the seniority in the deputation quota by running the risk of being repatriated to his parent department, he ought not to have opted for permanent absorption. After opting for the permanent absorption, he cannot claim the benefits of absorption as well as the service put in by him in the deputation quota as ACIO-II. On the said basis, the appellants placed their case before the Tribunal that the said Onkar Chand was not entitled to seniority w.e.f 2-1-1978 and his application before the Tribunal was, therefore, liable to be dismissed. As noticed earlier, the Tribunal came to that wrong conclusion by wrongly applying the ratio laid down by this Court in Narender Chadha case (1986) 2 SCC 157 to the facts of the present case.

    13. Likewise, the Tribunal also was not right in assuming that an earlier order of the Tribunal was to be followed. It was pointed out by the learned counsel for the appellants that the earlier order of the Tribunal on facts was distinguishable. According to the learned counsel for the appellants that in that case when the deputationist concerned was permanently absorbed he was factually working in the higher cadre. Therefore, that case cannot be cited to support the case of Onkar Chand. We may at once point out that we are not called upon to decide the correctness or otherwise of the ratio of that decision and, therefore, we are not expressing any opinion on that. Suffice it to say that the Tribunal was not right in directing the appellants to calculate the seniority of Onkar Chand w.e.f 2-1-1978 and granting other consequential relief.

    14. What we have said about Onkar Chand applies also to two other connected appeals as the facts are similar.

    15. In the result, the appeals are allowed. We make it clear that notwithstanding our allowing these appeals by upsetting the order of the Tribunal, the contesting respondents shall not be affected by this judgment as the appellants are interested only in having a ruling on the point in issue for application in the other cases. No costs.

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    Comments

    Union Of India And Another v. Onkar Chand And Others
    (Feb 2, 1998)