AMICUS AI
Citation Codes
Neutral Citations
1999 INSC 188
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 22 of the Act
  • The Apprentices Act, 1961 (for short “the Act”)
  • Articles 14 and 16 of the Constitution
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Cites
Cited by
Citation Codes
Neutral Citations
1999 INSC 188
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 22 of the Act
  • The Apprentices Act, 1961 (for short “the Act”)
  • Articles 14 and 16 of the Constitution
Smart Summary

Factual and Procedural Background

The five appellants were sponsored by the Employment Exchange for recruitment as Trade Apprentices in the Carriage & Wagon Department, North-East Frontier Railways, Lumding Division. After successfully completing their apprenticeship training, they were interviewed and selected for 25% quota vacancies of Fitter Grade III, a Group C (formerly Class III) post, and appointment letters dated 28-5-1990 were issued.

Less than a month later, on 7-6-1990, the Railway Administration cancelled those Group C appointments, citing a headquarters-level policy decision of 27-11-1989 that all vacancies in Group C would be filled by promotion from Group D to address surplus staff and stagnation issues. The appellants were instead offered and accepted appointments as Carriage Khalasi, a Group D (Class IV) post.

After their departmental appeal failed, the appellants filed Original Application No. 23 of 1991 before the Central Administrative Tribunal (CAT), Guwahati Bench, seeking restoration of their Group C appointments. The CAT dismissed the application, prompting the present appeal to the Supreme Court.

Legal Issues Presented

  1. Whether cancellation of the appellants’ Group C appointments and their relegation to Group D posts violated Articles 14 and 16 of the Constitution on grounds of arbitrariness and discrimination.
  2. Whether, under the Apprentices Act, 1961—particularly Section 22—and Rule 159 of the Railway Rules for Recruitment and Training, the appellants possessed an enforceable right to appointment in Group C posts after completing apprenticeship training.

Arguments of the Parties

Appellants' Arguments

  • The unilateral cancellation of their Group C appointments, without notice or opportunity of hearing, was arbitrary and discriminatory, contravening Articles 14 and 16.
  • Having completed apprenticeship training and been selected for the 25% quota vacancies, they had a statutory right to Group C posts; the subsequent downgrading to Group D violated the Apprentices Act, 1961.
  • The Railway Board’s policy decision relied upon by the administration was communicated after their appointments and should not retroactively affect them.

Respondents' Arguments

  • The appellants acquired no legal right to Group C posts; under Section 22 of the Apprentices Act employment is not obligatory, and Rule 159 provides only eligibility, not entitlement.
  • The original appointment letters were issued due to a bona fide mistake by the Divisional Personnel Officer, unaware of the 27-11-1989 policy decision to fill Group C vacancies through promotion.
  • The appellants accepted alternative Group D appointments; having acquiesced, they are estopped from challenging the change.
  • The policy decision, aimed at resolving staff surplus and maintaining industrial peace, was reasonable and within managerial discretion.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court began by examining Rule 159 of the Rules for Recruitment and Training, which allocates 25% of Skilled Artisan Group C posts to “course-completed Act Apprentices,” ITI candidates, and certain serving employees. While the appellants fell within this eligible category, the Court emphasized that eligibility does not equate to an enforceable right to appointment.

Referring to Section 22 of the Apprentices Act, 1961, the Court noted that an employer is under no statutory obligation to offer employment to apprentices unless the apprenticeship contract expressly provides such a guarantee—an undisputedly absent condition in this case. Consequently, the appellants could not invoke the Act to compel Group C appointments.

The Court then scrutinized the nature of the initial appointment letters. Clause 2 made the employment purely temporary and terminable on 11 days’ notice or pay in lieu thereof. Accordingly, the subsequent cancellation and substitution of posts, effected within a month, did not breach any contractual or constitutional guarantee; at most, the appellants were entitled to the stipulated notice or pay.

Addressing the allegation of arbitrariness, the Court accepted the Railways’ explanation that the earlier letters were issued by mistake, unaware of the policy determination of 27-11-1989. That policy, aimed at relieving stagnation and surplus in Group D following the closure of the Lumding Steam Loco Shed, mandated filling Group C vacancies by promotion to preserve industrial harmony. The Court found this objective reasonable and non-discriminatory.

The timing argument of the appellants failed because the decisive policy pre-dated their appointment letters; its later communication did not negate its existence. The Court therefore concluded that neither Article 14 nor Article 16 was violated.

Holding and Implications

Appeal Dismissed.

The Supreme Court affirmed the CAT’s decision, leaving the appellants in Group D posts. Each party was directed to bear its own costs. The ruling applies only to the parties concerned and does not establish new precedent beyond reiterating that completion of apprenticeship and mere eligibility under recruitment rules do not create an indefeasible right to appointment.

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    Mitrangshu Roy Choudhary And Others v. Union Of India And Others

    S.N Phukan, J.— The present appeal is directed against the order of the Central Administrative Tribunal, Guwahati Bench in Original Application No. 23 of 1991. By the impugned judgment the Tribunal rejected the original application of the appellants for appointment to Group C posts instead of Group D posts under the Divisional Railway Manager, Lumding, Assam. We may state here that earlier Group C post was designated as Class III post and Group D as Class IV post.

    2. The facts of the case are as follows:

    All the five appellants were sponsored by the Employment Exchange for recruitment of Trade Apprentices in Carriage & Wagon Department of N.F Railways in Lumding Division along with others. They were selected as Trade Apprentices under the Apprentices Act, 1961 and successfully completed training in System Technical School, New Bonagaigaon under N.F Railways. The appellants were interviewed against 25% vacancies of Fitter in Group C category for Lumding Loco Repairing Shop and were selected against the vacancies. They also joined as Fitter Grade III but on 7-6-1990 the appointments were cancelled and instead they were appointed to the post of Carriage Khalasi which is a Group D post. Their appeal being rejected, they approached the Administrative Tribunal where their prayer was rejected by the impugned judgment. We may state here that by the impugned judgment, the Administrative Tribunal also disposed of original application filed by 20 applicants. They also completed training as Apprentices but instead of appointing them in Group D posts, they were appointed in Group C posts. Their prayer for appointment in Group D posts was also rejected but they are not before us.

    3. According to the respondents, the present appellants have no legal right as they have accepted appointment offered to them in Group D posts. They are stopped from making any grievance against the same. As the Railway Administration has acted consistently with the then prevailing policy, the decision could not be interfered with by the Tribunal. It has further been pleaded on behalf of the respondents before the Tribunal that as the appointment of the appellants by the initial order of appointment was found to be erroneous in view of the policy decision that these posts will be filled up by promotion, the appointments were cancelled and instead of leaving the appellants high and dry, the Railways have given them alternative appointment in Group D posts which they have accepted.

    4. We have heard Mr Shahid Rizvi for the appellants and Ms Rekha Pandey for the respondents.

    5. In view of the contentions raised by the Bar, the question for determination by this Court is whether there was violation of Articles 14 and 16 of the Constitution on the ground of arbitrariness and discrimination as according to the appellants, the appointments were cancelled without giving them any opportunity of being heard. It has also been urged that as the appellants were Trade Apprentices under the Apprentices Act, 1961 (for short “the Act”) and they successfully completed the training as Fitter and were selected for appointment for the posts, the cancellation order is in violation of the Act.

    6. According to Rule 159 of the Rules for Recruitment and Training of Group C and Group D and Workshop Staff, out of the vacancy in the category of Skilled Artisans Group C, 25% of the posts have to be filled up by selection from course-completed “Act Apprentices”, ITI passed candidates and matriculates from the open market; serving employees who were course-completed “Act Apprentices” or ITI qualified could be considered against this quota allowing age relaxation as applicable to service employees. Thus we find that for 25% of the posts, three categories were to be considered for selection, namely,

    (1) 25% by selection from course-completed “Act Apprentices”

    (2) ITI passed candidates and matriculates from the open market

    (3) Serving employees who were course-completed “Act Apprentices” or ITI qualified.

    7. From the said rule, it appears that 50% posts are to be filled up by promotion of the staff in lower grade as per the prescribed procedure. Thus it is clear that the present appellants are qualified to be recruited for the above post. But the first question is whether they have got a right to be selected only because they are sent for training under the Act.

    8. We quote below Section 22 of the Act:

    “22. Offer and acceptance of employment.—(1) It shall not be obligatory on the part of the employer to offer any employment to any apprentice who has completed the period of his apprenticeship training in his establishment, nor shall it be obligatory on the part of the apprentice to accept an employment under the employer.

    (2) Notwithstanding anything in sub-section (1), where there is a condition in a contract of apprenticeship that the apprentice shall, after the successful completion of the apprenticeship training, serve the employer, the employer shall, on such completion, be bound to offer suitable employment to the apprentice, and the apprentice shall be bound to serve the employer in that capacity for such period and on such remuneration as may be specified in the contract:

    Provided that where such period or remuneration is not, in the opinion of the Apprenticeship Adviser, reasonable, he may revise such period or remuneration so as to make it reasonable, and the period or remuneration so revised shall be deemed to be the period or remuneration agreed to between the apprentice and the employer.”

    9. There is no dispute at the Bar that there was no guarantee or promise for employment while sending the present appellants to undergo the apprenticeship course. Therefore, the appellants do not have the right to be appointed under the Act in view of the specific legal provision under Section 22 of the Act.

    10. In view of the settled position of law though under Rule 159 of the Rules of Recruitment and Training, 25% of the posts are to be selected from the course-completed Apprentices like the appellants, the appellants and similarly situated persons cannot claim appointment as a matter of right for this post. The Railways may consider their cases for selection which was done in the present case.

    11. The appointment letters to all the appellants were issued on 28-5-1990 and by letter dated 7-6-1990, i.e, less than one month, the appellants were informed that in view of the decision at the headquarters level by the Railway Administration after discussion with both the Unions on 27-11-1989 it was decided that the course-completed Apprentices are to be absorbed only in Group D category and therefore, the earlier letter of appointment was cancelled and the appellants were given fresh appointments in Group D posts.

    12. From the appointment letters dated 28-5-1990 vide clause 2 of the letter, the appellants were informed that if their services would be terminated, they shall be entitled to a notice of 11 days or pay in lieu of. Thus this letter clearly shows that the appellants were appointed purely on temporary basis and their services could be terminated by giving 11 days' notice or pay in lieu thereof. In view of the nature of appointment, the above clause of the letter dated 7-6-1990 cannot be said to be violative of Articles 14 and 16 of the Constitution and at best the appellants would be entitled to get 11 days' notice or pay in lieu thereof.

    13. The respondent-Railways have stated that the appointment letters were issued due to bona fide mistake as the decisions taken on 27-11-1989 by the Administration were not within the knowledge of the Divisional Personnel Officer of the Railway, Lumding who issued appointment letters. There is no allegation that the letter dated 7-6-1990 was issued with mala fide intention. In fact, the Railways have clearly stated in the counter before the Tribunal that instead of leaving the appellants high and dry, they were offered appointments in Group D category in view of the decision arrived at between the Administration and the Unions.

    14. In the Lumding Division of N.F Railways, there was stagnation of the existing employees in Group D category and there was surplus staff, as a result, closure of Lumding Steam Loco Shed. Therefore, the matter was discussed between the Administration and the Unions and it was decided that there will be no direct entry to Group C posts and all the vacant posts will be filled up by promotion from Group D posts. This policy decision was a reasonable one and it was taken to keep industrial peace, which fact was taken note of by the Tribunal.

    15. It is urged on behalf of the appellants that the above policy was communicated by the Railway Board subsequent to the appointments of the appellants, therefore, it is not applicable in the case of the appellants. We are unable to accept the contention as the decision was taken in the meeting held on 27-11-1989, i.e, prior to the letters of appointment issued to the appellants on 28-5-1990. For the reasons stated, we hold that the action of the respondents is not arbitrary or discriminatory and, therefore, not violative of Articles 14 and 16 of the Constitution.

    16. In the result, the appeal is dismissed. But in the facts and circumstances of the case, parties are to bear their own costs.

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    Mitrangshu Roy Choudhary And Others v. Union Of India And Others
    (Apr 15, 1999)