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2002 INSC 237
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Citation Codes
Neutral Citations
2002 INSC 237
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • The Act
  • The Pre-Degree Course (Abolition) Act, 1997 (Act 3 of 1998)
  • Section relating to reservation in favour of backward class of citizens made under Article 16(4)
  • Article 213 of the Constitution of India
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

The University of Calicut issued a notification on 1-11-1991 to prepare a panel for appointment to the post of Assistant Grade II. After a written test and interview, a rank list was finalised on 25-10-1995. In November 1997 the University’s Syndicate curtailed the list’s lifespan from three to two years and thereafter cancelled it. Candidates whose names were in the list (the appellants) filed writ proceedings in the Kerala High Court.

The Single Judge (7-1-1998) recorded the University’s assurance that future appointments, if any, would be drawn from the impugned list only as a temporary, stop-gap arrangement. On appeal, the Division Bench (18-3-1999) permitted the University to make purely daily-wage appointments for examination work and required that the appellants be considered for such short-term posts. They were accordingly engaged on that basis.

By a common judgment dated 6-4-2000 the Division Bench treated the dispute as largely academic but recommended age relaxation and service credit for the appellants in any future recruitment. Dissatisfied, the appellants approached the Supreme Court. On 4-9-2000 the Court granted leave and ordered maintenance of the then prevailing status quo (i.e., continued daily-wage engagement) pending final disposal.

Legal Issues Presented

  1. Whether the Syndicate of the University of Calicut was legally justified in limiting the validity of the 1995 Assistant Grade II rank list to two years and cancelling it in November 1997.
  2. Whether inclusion in the 1995 rank list conferred on the appellants an enforceable right to regular appointment to vacancies that arose up to October 1998.
  3. In the alternative, whether the appellants, having served for several years on a daily-wage basis under court orders, were entitled to regularisation of their services.

Arguments of the Parties

Appellants' Arguments

  • A 10-5-1986 Syndicate resolution allegedly fixed the validity of all future rank lists at three years; therefore the 1995 list should have remained operative until October 1998.
  • Had the list remained alive, at least 209 vacancies (including 33 identified by the Controller of Examinations on 18-11-1997) could have been filled from it.
  • The Syndicate’s 26-11-1997 decision to curtail and cancel the list lacked rational basis.
  • In any event, continuous service rendered as daily-wage Assistants for several years should lead to regularisation.

Respondents' Arguments

  • No statute, rule or endorsement on the list fixed its validity at three years; under Rule 13 of the Kerala PSC Rules of Procedure the Syndicate could validly prescribe a two-year life.
  • Prevailing circumstances justified cancellation: (a) creation of Kannur University (9-11-1995) resulting in surplus staff; (b) abolition of Pre-Degree courses and the statutory ban on non-teaching appointments imposed by the Pre-Degree Course (Abolition) Ordinance/Act 1997 for three years; (c) corruption allegations concerning the 1995 list.
  • Mere inclusion in a rank list does not create a right to appointment; only 65 candidates from the main list and 8 from the supplementary list were ever appointed, and many higher-ranked candidates still awaited selection.
  • Daily-wage engagement under court orders was purely stop-gap; regularisation would breach merit order and communal-reservation requirements.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
(1974) 3 SCC 220; 1995 Supp (2) SCC 230; (1993) 2 SCC 573; (1991) 3 SCC 47; (1998) 7 SCC 469 (and connected citations) Selected candidates have no vested right to appointment; appointing authority must fill vacancies strictly in order of merit, observe reservation rules, and may not scrap a panel during its valid life except for well-founded reasons. The Court accepted these principles as settled law but held that the University established “well-founded reasons” (statutory ban, jurisdictional reorganisation, surplus posts) that justified cancelling the 1995 list.
State of Haryana v. Piara Singh, (1992) 4 SCC 118 Regularisation of ad-hoc/temporary employees is permissible only under a valid, government-framed scheme and cannot override merit or reservation requirements. The Court distinguished the present case: the appellants’ temporary service arose solely from interim court orders; no governmental regularisation scheme existed; hence Piara Singh did not support the appellants’ prayer for regularisation.

Court's Reasoning and Analysis

1. No evidence of three-year validity. The High Court had already found that the 1995 list was not shown to be valid for three years. The appellants’ belated reliance on the 1986 Syndicate minutes was unpersuasive; even if such a rule once existed, the Syndicate possessed equal authority to amend it.

2. Well-founded reasons for cancellation. The Court examined the justifications advanced by the University:

  • Statutory Ban: The Pre-Degree Course (Abolition) Ordinance 1997 (later Act 3 of 1998) imposed a three-year blanket prohibition on new non-teaching appointments, save with Empowered Committee approval. This, by itself, constituted sufficient cause to cancel the list.
  • Reorganisation: Creation of Kannur University transferred numerous colleges and allegedly rendered about 130 Assistants surplus, warranting a freeze on additional permanent recruitment.
  • Alleged irregularities: Though corruption allegations concerning the 1995 list were noted, the Court treated them as secondary.

These factors collectively demonstrated that the University’s decision was neither arbitrary nor mala fide.

3. No accrued right to appointment. Reinforcing settled precedent, the Court reiterated that selection alone does not confer a right to be appointed or to insist upon continuation of a panel.

4. Claim for regularisation rejected. The appellants’ service was purely provisional, occasioned by interim judicial orders and characterised by “short breaks.” Unlike in Piara Singh, there was no policy or scheme for regularisation, and granting it would subvert merit order and reservation rules as fresh recruitment (initiated in March 2000 and tested in March 2001) had already produced a new list of successful candidates.

Holding and Implications

Appeals DISMISSED; interim order vacated.

Consequently, the University of Calicut is free to proceed with regular appointments from the 2001 selection process. The appellants retain no enforceable claim to appointment or regularisation. The judgment applies settled principles to the facts and does not create new precedent beyond reaffirming the limited rights of rank-listed candidates.

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    Vinodan T. And Others v. University Of Calicut And Others

    Ruma Pal, J.— The appellants in the several appeals, seek to assail the cancellation of a rank list prepared for the post of Assistant Grade II by the University of Calicut, Respondent 1 before us. The appellants had been selected pursuant to a notification issued on 1-11-1991 inviting applications for preparation of a panel for appointment as Assistants Grade II in the University. The selection was made after a written test and interview and a rank list was prepared on 25-10-1995. The appellants' claim is that the rank list should have been operative for a period of three years and that the respondents were bound to appoint them to vacancies which had arisen within that period.

    2. The appellants in CA No. 4906 of 2000 challenged the action of the University in curtailing the period of the validity of the rank list to two years before the High Court of Kerala by filing a writ petition. The learned Single Judge disposed of the writ petition on 7-1-1998 by noting the submission of the University that:

    “as and when necessity arises for employing more persons, the University is prepared to make appointments from Ext. P-1 rank list. But it is made clear that such appointees will not have any claim either for future appointment or for regular appointment. It is purely a stopgap arrangement pending regular recruitment to the post”.

    3. These appellants challenged the order of the Single Judge by filing an appeal before the Division Bench of the High Court. The other appellants before us filed original petitions also assailing the action of the University.

    4. The University filed an application in the pending proceedings for permission to engage 40 to 50 Assistants on a provisional basis for three months to meet the exigencies of work arising in connection with the annual examination. By an order dated 18-3-1999 the Division Bench granted the University:

    “permission to engage purely on daily-wage basis 40 to 50 Assistants on work-need basis. Petitioners in OPs Nos. 8743 of 1998 and 22212 of 1997 and the appellants in WA No. 520 of 1998 will be sent notices and if they respond to the said notice they may also be considered for appointment among the 50 persons on daily-wage basis”.

    5. Pursuant to this order, the appellants were served notices by the University and were appointed on daily-wage basis.

    6. The Division Bench disposed of the appeal and the original petitions by a common judgment on 6-4-2000. The Division Bench was of the view that the issue had become academic but at the same time directed that:

    “when the next process of selection starts, it would be appropriate if they (the appellants) are given some credit for the services rendered by them and also making relaxation so far as their ages are concerned in case they have become overaged in the meantime. It goes without saying that they have the right to appear at the requisite test and interview so that the question of giving credit for the services rendered by them and relaxation of age can be considered by the University”.

    7. Not being satisfied, the appellants impugned the decision of the High Court before this Court by way of separate special leave petitions. Leave was granted by this Court on 4-9-2000 and the status quo was directed to continue until further orders.

    8. In support of their case, the appellants have relied on a resolution said to have been taken on 10-5-1986 by the Syndicate fixing the validity of rank lists for all future selections at three years. Therefore, according to the appellants, all vacancies in the post of Assistant Grade II till 1998 should have been filled up by the respondents. The appellants' claim that had the rank list continued for a period of three years, at least 209 vacancies could have been filled by appointment of those whose names were in the 1995 rank list. They have relied upon a letter dated 18-11-1997 written by the Controller of Examinations to the Registrar of the University intimating that there were 33 vacancies of Assistants and 4 vacancies of Clerical Assistants in Pareeksha Bhavan which were required to be filled up without any further delay. The appellants' grievance is that instead of filling up these vacancies a decision was taken by the Syndicate on 26-11-1997 limiting the validity of the rank list prepared in 1995 to two years and cancelling the list altogether for no rational reason. In the alternative it is urged that the appellants had been serving continuously for the last several years and therefore should be regularised in service.

    9. The respondents on the other hand have contended that there was no stipulation either in the rank list or in any university statutes stipulating that a rank list would be valid for three years. It was further stated that the University follows the procedure of the Kerala Public Services Commission and other universities. According to Rule 13 of the Kerala Public Service Commission Rules of Procedure, the validity of a rank list was for a minimum period of one year and a maximum period of three years. It is submitted that the Syndicate was fully empowered to fix the period of the rank list at 2 years. It is stated that the decision to cancel the rank list was taken in view of the prevailing circumstances which included: (a) carving out of the major part of the territorial jurisdiction of Calicut University to form a new university by the name of Kannur University on 9-11-1995, so that a large number of colleges which had been affiliated to Calicut University were transferred to the jurisdiction of Kannur University; (b) the abolition of the pre-degree courses by the Government of Kerala and the consequent depletion of posts; (c) a ban on the appointment of non-teaching staff in the University by the Pre-Degree Course (Abolition) Ordinance which was succeeded by the Pre-Degree Course (Abolition) Act, 1997 for a period of three years from the commencement of the Act. The Act came into force with effect from 3-6-1997. It is submitted that in any event the appellants had no right to insist on regular appointment merely because they formed part of the rank list. The respondents also submitted that in any event the appellants could not claim regularisation because they had worked temporarily as daily-wagers. According to the respondents what was preserved by the order of status quo directed by this Court on 4-9-2000 was the situation prevailing under the orders of the High Court viz. provisional need-based appointment as a purely stopgap arrangement pending regular recruitment to the posts. Although the University had retained the appellants who were serving on 4-9-2000 as daily-wagers with “short breaks”, the University did not need to engage assistants on daily wages any more. It is stated that two rank lists were prepared in 1995. The main list contained the names of 378 candidates. There was also a supplementary list containing the names of 394 candidates from various communities. Sixty-five candidates have been appointed from the main list and eight from the supplementary list. The last candidate appointed was ranked at Serial No. 66 in the main list. There were many candidates above the appellants who were more meritorious and that regular appointments could only be made after applying the rules of communal reservation.

    10. We may start with a consideration of the basis of the appellants' case viz. the validity of the rank list for three years i.e from October 1995 to October 1998. The learned Single Judge found that there was nothing on record to show that the rank list was valid for three years, a finding which was not upset on appeal. The appellants now seek (i) to rely on the minutes of the proceeding of the Syndicate of the list, and (ii) to make the selection for appointment strictly in the order the candidates have been placed in the list. This Court has placed two further restrictions on the exercise of power by the appointing authority, namely, that the appointments to the vacancies must be made in accordance with the Rules, if any, relating to reservations and also that the appointing authority cannot scrap the panel of selected candidates during the period of its validity, except for well-founded reasons (1974) 3 SCC 220, 1995 Supp (2) SCC 230, (1995) 30 ATC 53, (1993) 2 SCC 573, (1993) 24 ATC 576, (1991) 3 SCC 47, (1991) 17 ATC 95, (1998) 7 SCC 469.

    11. It is not the appellants' case that the University has made any appointments to the post of Assistants outside the rank list or not strictly in order of merit. Let us then look at the justifiability of the reasons given by the respondents for cancelling the 1995 rank list.

    12. On 24-4-1997, the State Government affirmed a policy decision taken in December 1996 to delink pre-degree courses from colleges in the State in a phased manner. The respondents have produced a circular of the same date which contains the decision and notes that the process would involve identification of pre-degree college on 10-5-1986 in which a resolution was taken to the following effect:

    “85.220. Considered the question of enhancing the maximum period of validity of the ranked list of selected candidates for appointment, up to three years.
    Resolved that the new rules fixing the validity of ranked list for three years, be approved for implementation for all future selections. The validity of existing lists will be two years only.”

    13. According to the respondents this resolution related to the supplementary list for communal reservation and not to the general list. This has not been effectively traversed by the appellants. But assuming that the Syndicate had the power to resolve in 1986 that the general rank list would be valid for three years, they must equally be conceded the power to amend that decision. Admittedly they did so by the resolution passed on 26-11-1997 by which they cancelled the rank list for the reasons stated.

    14. The principle that persons merely selected for a post do not thereby acquire a right to be appointed to such post is well established by judicial precedent. Even if vacancies exist, it is open to the authority concerned to decide how many appointments should be made. However the selected candidates have a right to compel such authority not to make appointments by travelling outside the batches in the college for delinking, issue of executive orders, orders stopping admission for the batches proposed to be discontinued and suitable deployment of the staff, both teaching and non-teaching which may be rendered surplus. For protecting the service interests of the existing teaching and non-teaching staff, it was also decided that further appointments of teaching staff and non-teaching staff in the colleges and university should be stopped immediately. The circular also states that though the decision in this regard was taken in December 1996 “it is reported that the private colleges and universities have been resorting to recruitment of teaching and non-teaching staff which may become a great financial burden for the Government in future”.

    15. Following this circular, the Pre-Degree Course (Abolition) Ordinance, 1997 was issued in exercise of powers under Article 213 of the Constitution of India. The Ordinance (Ordinance 10 of 1997) provided for a phased abolition of the pre-degree course. For this purpose an Empowered Committee was set up consisting of:

    (a) the Principal Secretary to Government, Higher Education Department — Chairman;
    (b) the Vice-Chancellor of one of the universities in the State nominated by the Government — member;
    (c) the Secretary to Government, General Education Department — member;
    (d) the Director of Collegiate Education — Member Secretary;
    (e) the Director of Public Instruction — member; and
    (f) the Director of Higher Secondary Education — member.

    16. The Empowered Committee was to specify from time to time the colleges which were to do away with the pre-degree course. Any college so specified and which did not comply with the directive to abolish the pre-degree course under Section 3 of the Ordinance was debarred from affiliation. Section 6 of the Ordinance further provided for an absolute ban on appointment of staff etc. in the following words:

    “6. Notwithstanding anything contained in the university laws or in any agreement on contract, no appointment of non-teaching staff in any college shall be made for a period of three years from the date of commencement of this Ordinance:
    Provided that, in the exigencies of service, such appointment may be made, with the previous approval of the Committee.”

    17. The Ordinance was replaced by the Pre-Degree Course (Abolition) Act, 1997 (Act 3 of 1998). The Act substantially reproduces the language of the Ordinance which it replaced.

    18. The Empowered Committee set up under the Ordinance completed its task of phased specification of colleges during the academic year 1997-98. On 3-7-1997 the Empowered Committee issued an order which inter alia provided for relaxation on the ban of appointments of non-teaching staff to a limited extent, by allowing only provisional appointment through the employment exchange in the universities “in already sanctioned vacancies”.

    19. In our opinion, this blanket ban on regular appointments statutorily imposed for three years was by itself sufficient ground for the University to cancel the rank list.

    20. In addition to this circumstance was the creation of Kannur University by which several colleges which earlier fell within the jurisdiction of Calicut University came under the aegis of Kannur University. This took place after the publication of the 1995 rank list, and cannot be said to be an irrelevant reason for cancelling the 1995 rank list. According to the respondents, the formation of Kannur University had rendered about 130 Assistants as excess staff in Calicut University. It is true that Calicut University made internal adjustments pursuant to the creation of Kannur University by which certain Assistants were required to discharge the function of Section Officers but this would not take the case of the appellants much further. Matters were clearly in a state of flux. What the position would be once the transfer of the colleges and personnel took place could not be determined.

    21. The third reason given by the respondents for cancelling the 1995 rank list was allegations of corruption in the preparation of this list. It appears that there were press reports which questioned the fairness with which the 1995 rank list had been prepared. Although this figured in the decision of the Syndicate to cancel the rank list, it does not appear to have been the prime motive to do so. There was a statutory ban, with a limited relaxation allowing provisional appointment on the one hand and the administrative and financial consequences of the creation of Kannur University on the other. The appellants have not also been able to establish that there were any permanent vacancies which existed during that period which could have been filled by the University in accordance with law. In the light of all these circumstances, the reason for cancellation of the rank list given by the respondents cannot be termed to be arbitrary or unjust.

    22. The ban on regular appointments under the Act came to an end in 2000. The respondents have also stated that the delinking of the pre-degree courses was completed by academic year 2000-2001 with the publication of the pre-degree results in June 2001. The period of validity of the 1995 rank list, even according to the appellants, had long since expired. The University issued a fresh notification on 25-3-2000 to prepare a panel of qualified Assistants in anticipation of the lifting of the ban for vacancies that existed and those that would arise on retirement of existing employees. Some candidates in the 1995 rank list sought to thwart this and approached the High Court. On 9-3-2001 the High Court said:

    “Since the test is scheduled on 10-3-2001 I do not find any ground to stay the test. But I make it clear that the declaration of the result and further proceedings will be only subject to the result of the original petition.”

    23. The test was duly held. The results have been published in April 2001. The appellants seek to hold up the appointment of the successful candidates by claiming regularisation on the ground that they had been serving the University albeit on a daily-wage basis pursuant to orders of the Court. In support of this prayer the appellants have relied on the decision of this Court in State of Haryana v. Piara Singh (1992) 4 SCC 118, (1992) 21 ATC 403. The reliance is misplaced. In that case the Government itself had appointed ad hoc/temporary employees who had continued for years together under orders passed by the Government from time to time. The situation was brought about because there was no Subordinate Service Selection Board (SSB) in existence in the State during this period. After SSB was set up the Government was faced with a large number of ad hoc employees already appointed by it and serving continuously for a period of ten years or more. To meet the situation, the Government formulated a scheme for regularisation of such employees subject to certain conditions. The High Court set aside the conditions and directed unconditional whole-scale regularisation of ad hoc employees who had put in at least one year service. This Court set aside the direction of the High Court and said:

    “(d) Such directions have also the effect of disregarding and violating the rule relating to reservation in favour of backward class of citizens made under Article 16(4). What cannot be done directly cannot be allowed to be done in such indirect manner.”

    24. This Court upheld the scheme for regularisation formulated by the Government itself.

    25. The facts of this case are totally at variance with those in Piara Singh (1992) 4 SCC 118, (1992) 21 ATC 403. In this case there was a complete statutory ban on appointments by the University from 1997 till 2000. The appellants were appointed provisionally only pursuant to orders of the Court purely by way of interim relief because of the then existing need of the University. There is no scheme for regularisation formulated by the University. Besides, regularisation in the appointment of the appellants would mean appointment contrary to the order of merit in the rank list. There is also nothing to show that such regularisation would be in keeping with the reservation rules. The appellants cannot stand in the way of the candidates who successfully competed in the 2001 selections for the post of Assistants. The alternative prayer of the appellants is, therefore, unsustainable.

    26. For all these reasons the appeals are dismissed and the interim order vacated without any order as to costs.

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    Vinodan T. And Others v. University Of Calicut And Others
    (Apr 26, 2002)