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Structured Summary of the Opinion (G.P. Singhal, AM)

Factual and Procedural Background

These Original Applications relate to requests by applicants for directions to consider their candidature for appointment to Group-D posts under Employment Notification No. 2/2010 dated 15.12.2010 issued by South-East Central Railway (SECR), Bilaspur. The lead file for facts and documents was Original Application No. 203/00586/14.

The respondents advertised 5,798 Group-D posts (Rs. 5200-20200 plus Grade Pay Rs. 1800/-) for divisions and workshops of SECR (Raipur, Bilaspur and Nagpur). The applicants participated in the written test and Physical Eligibility Test (PET), were declared eligible, cleared PET, and were called for document verification and medical examination. The number of candidates called for verification equalled the number of posts plus an additional 20% (a replacement or extra list to meet shortfall).

Appointment orders were issued to selected candidates. The applicants, relying on information obtained under the Right to Information Act, contend that a large number of vacancies remain unfilled because many appointed candidates did not join. Specific correspondences cited include a letter dated 11.2.2014 (Annexure A-4) and a letter dated 10.2.2014 (Annexure A-5) which indicated that a substantial number (144, as per Annexure A-5) of appointees had not reported for joining as of that date. The applicants seek to be considered for appointment against vacancies unfilled due to non-joining of selected candidates.

The respondents replied that the 20% extra candidates were called to meet contingencies (medical unfitness or non-appearance), and that calling a candidate for document verification does not by itself entitle that candidate to appointment. They relied on Railway Board communications, including a letter dated 2.7.2008 (Annexure R-4) which governs calling replacement panels after following a specified procedure, and on Railway Board Circular RBE No. 6/2014 dated 10.01.2014 (Annexure R-5) which changed the system so that replacement panels are no longer to be called against non-joining of selected candidates. The respondents therefore opposed appointments from the 20% extra list.

The matter was heard with learned counsel for the parties, and the court considered the pleadings and annexed documents.

Legal Issues Presented

  1. Whether applicants included in the 20% extra list (called for document verification) are entitled to be considered and appointed against vacancies that remained unfilled due to non-joining of selected candidates under Employment Notification No. 2/2010.
  2. Whether the Railway Board circular (RBE No. 6/2014 dated 10.01.2014) prohibiting calling of replacement panels against non-joining of selected candidates can be applied retrospectively to selections made under Employment Notification No. 2/2010.

Arguments of the Parties

Applicants' Arguments

  • The applicants were in the 20% extra list and were called for document verification and medical examination; many of the appointed candidates have not joined, creating vacancies that should be filled from the extra list.
  • The Railway Board circular dated 10.1.2014 (prohibiting replacement panels) cannot be applied retrospectively to selection conducted under Employment Notification No. 2/2010 because at the time of that selection there was no bar on calling replacement panels.
  • The applicants relied on Supreme Court decisions (R.S. Mittal; Director, SCTI v. M. Pushkaran; K. Manjushree) for the proposition that policy or practice cannot be changed retrospectively to the prejudice of a selected candidate and that selection criteria/rules must be prescribed in advance.

Respondents' Arguments

  • The 20% extra candidates were called merely to meet contingencies (medical unfitness, non-appearance); being called for document verification does not by itself create an entitlement to appointment.
  • Railway Board guidelines (letter dated 2.7.2008, Annexure R-4) prescribe a procedure before any replacement panel may be called; the right of those in the extra list arises only after a demand for replacement panel is made following that procedure.
  • By Railway Board Circular RBE No. 6/2014, the practice of calling replacement panels against non-joining has been discontinued; further, recruitments which earlier occurred once in two years are now held annually (per letter E(NG)II 2007RR-I/58 dated 8.12.2011), which is part of the administrative policy change that the executive is entitled to make.
  • The respondents invoked authority that policy decisions are within the executive domain and the courts should not interfere unless such policy is arbitrary or violates statutory or constitutional provisions.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
R.S. Mittal v. Union of India, 1995 Supp (2) SCC 230 Principle that where a vacancy can be offered to a selected candidate on the basis of merit, denial of appointment without proper reason is unjustified; policy cannot be changed retrospectively (as relied upon by applicants). The applicants relied on this decision. The court noted the reliance but evaluated entitlement in light of the procedural requirement in Annexure R-4 and the absence of a demand for replacement panel; the court did not grant relief to the applicants.
Director, SCTI for Medical Science & Technology v. M. Pushkaran (citation as cited in the opinion) On the facts where a select list was abandoned after making some appointments and a contracting-out decision followed the candidate's turn, the denial of appointment was held unjustified (as relied upon by applicants). The applicants relied on this decision. The court recorded the reliance but found no entitlement because no replacement panel demand was made in accordance with the prescribed procedure.
K. Manjushree v. State of Andhra Pradesh, (2008) 3 SCC 512 Selection criterion must be prescribed in advance and the rules of the selection process cannot be changed afterwards. The applicants relied on this principle. The court acknowledged it but held that the procedural precondition for calling replacement panels (Annexure R-4) had not been satisfied, so applicants' claimed rights had not accrued.
Bajaj Hindustan Ltd. v. Sir Shadi Lal Enterprises Ltd., (2011) 1 SCC 640 Executive authority has competence to frame policy; courts should not interfere with policy decisions unless they are arbitrary, capricious or offend statutory/constitutional provisions (Article 14). The court expressly cited and relied on paragraph 41 of this judgment to underscore that policy decisions concerning recruitment procedure fall within the executive domain and are not to be lightly interfered with by the judiciary, unless unconstitutional or arbitrary.

Court's Reasoning and Analysis

The court examined the documentary record, including the Railway Board letter dated 2.7.2008 (Annexure R-4). It reproduced and relied upon paragraph 4(ii) of that circular, which explains the procedure for finalizing a panel and for the supply of a replacement panel equal to the number of candidates who finally did not turn up for taking appointment, and stipulates that before calling for replacement the Chief Personnel Officer (CPO) must be personally satisfied that the procedure for cancellation of the appointment orders of originally empanelled candidates has been strictly followed. The circular also makes clear that the total number of candidates (original plus replacement) shall not exceed the number of vacancies.

From this text the court distilled the following legal-analytical points:

  • The entitlement of candidates included in the 20% extra list arises only after a formal demand is made by the railway administration for a replacement panel in accordance with the procedure set out in Annexure R-4.
  • The procedure for calling a replacement panel is a pre-condition and is not a part of the employment notification or the selection procedure given to candidates at the time of selection; therefore, mere calling of candidates for document verification does not itself confer a right to appointment.
  • Since no demand for a replacement panel had been made in conformity with the prescribed procedure, the applicants' claimed right to consideration for appointment had neither accrued nor been infringed.
  • The court also took into account the executive policy dimension, citing Bajaj Hindustan v. Sir Shadi Lal Enterprises Ltd., and noted that changes in recruitment practice (including the discontinuance of replacement panels per Railway Board circular RBE No. 6/2014) are policy matters falling within the executive domain; judicial interference is inappropriate unless the policy is arbitrary or unconstitutional.

The court thus balanced the applicants' invocation of retrospective protection under precedents cited by them against the procedural preconditions in Annexure R-4 and the scope of executive policy-making. The procedural precondition (a demand for replacement panel made after following cancellation procedure) was decisive in the court's analysis.

Holding and Implications

DISMISSED. The court held that the applicants are not entitled to the reliefs sought in these Original Applications and accordingly dismissed all the Original Applications. The dismissal was made without any order as to costs.

Direct effect on the parties: The applicants will not be considered or appointed from the 20% extra list in the absence of a formally made demand for replacement panel in accordance with Annexure R-4; the respondents' practice and the Railway Board's change of policy (as reflected in RBE No. 6/2014) were treated as valid within the bounds described by the court.

The opinion does not purport to lay down any new legal precedent; it applied existing authorities and the Railway Board procedure to the facts before the court.

    Avinash Kumar Kaiwart v. South Eastern Central Railway

    G.P. Singhal, AM:— These Original Applications are being disposed of by this common order as in all these Original Applications the applicants are seeking direction to consider their candidature for appointment on Group-D posts in respect of Employment Notification No. 2/2010 dated 15.12.2010 (Annexure A-1) issued by the South-East Central Railway (for brevity SECR), Bilaspur. For the purposes of this order, reference is made to the facts pleaded and documents annexed in Original Application No. 203/00586/14.

    2. The brief facts of the case are that the respondents advertised for appointment of 5798 posts in the scale of Rs. 5200-20200 plus Grade Pay of Rs. 1800/- in Raipur, Bilaspur and Nagpur Divisions and workshops of SECR. It is claimed that all the applicants had applied for these posts and after participating in the written test they were found eligible for Physical Eligibility Test (for brevity PET) also, and that all the applicants had cleared PET and were called for verification of documents as well as medical check up. Number of persons called for verification of documents was equal to number of posts plus 20% extra, who were called to meet shortfall, if any, in the panel. The respondents have already issued appointment orders to the persons selected against the notified vacancies.

    3. The contention of the applicants is that they have collected information under the Right to Information Act and according to it, large number of vacancies are still existing in these three divisions for these posts. Therefore, the applicants, who are all in the 20% extra candidates list, deserve to be considered and appointed against the available vacancies with the respondents in these categories. According to letter dated 11.2.2014 (Annexure A-4) a large number of persons appointed against the notified vacancies have not joined. Further, according to another information supplied by the respondents vide their letter dated 10.2.2014 (Annexure A-5), 144 appointees had not reported for joining against this employment notification till that date. The applicants have, therefore prayed for consideration of their cases for appointment on the vacancies which have remained unfilled due to non-joining of persons appointed on these posts against the Employment Notification No. 2/2010.

    4. The respondents have submitted in their reply that 20% extra candidates are called to take care of eventualities of some of the candidates being declared unfit at the stage of medical examination or not turning up for document verification. As per the letter dated 2.7.2008 (Annexure R-4) by which the provision of calling 20% extra candidates for document verification was made, these extra candidates are to be called primarily to avoid shortfall in the panel. It is further mentioned in this letter that merely calling a candidate for document verification does not in any way entitle him/her to an appointment in the railways. The respondents have further submitted that vide Railway Board's Circular RBE No. 6/2014 dated 10.01.2014 (Annexure R-5) the respondents have changed this system and now no replacement panels are to be called against non-joining of selected candidates. Therefore, in spite of vacancies remaining unfilled due to non-joining of selected candidates no appointments from the list of 20% extra candidates, who were called for document verification, can be made. Hence these Original Applications, being without any merit, deserve to be dismissed.

    5. Heard the learned counsel of parties and carefully perused the pleadings of the respective parties and the documents annexed therewith.

    6. The learned counsel for the applicants vehemently argued that the Railway Board's circular dated 10.1.2014 prohibiting replacement panels against non-joining of selected candidates, cannot be made effective retrospectively. The applicants participated in the selection against Employment Notification No. 2/2010 and at that time there was no bar on calling replacement panels from Railway Recruitment Cell (for brevity RRC) against non-joining of selected candidates.

    7. Learned counsel for the applicants relied on following relevant decisions of Hon'ble Supreme:—

    7.1 R.S Mittal v. Union Of India., 1995 Supp (2) SCC 230 wherein it has been held that where there is a vacancy which can be offered to a selected candidate on the basis of his merit position, denial of appointment to him without a proper reason is unjustified for the analogy that the policy cannot be changed retrospectively.

    7.2 Director, SCTI for Medical Science & Technology v. M. Pushkaran wherein the select list was abandoned after making some appointments and decision taken to contract out work relating to security guards. The said decision was taken after respondent's turn had come for issue of offer of appointment. On said facts, Hon'ble Supreme Court held that there was no reason for denying appointment to the respondent.

    7.3 K. Manjushree v. State of Andhra Pradesh, (2008) 3 SCC 512 wherein their Lordships have held that selection criterion has to be prescribed in advance and rules of game cannot be changed afterwards.

    8. On the other hand learned counsel for the respondents submits that while earlier, recruitments for the posts in Pay Band-I with grade pay of Rs. 1800/- were held once in two years, now they are being held annually in terms of the instructions contained in Railway Board's letter No. E(NG)II 2007RR-I/58 dated 8.12.2011 (as mentioned in Annexure R-5). Therefore, the department has now stopped the practice of calling for replacement panels against non-joining of selected candidates. The learned counsel for the respondents has stated that in catena of judgments the Hon'ble Supreme Court has held that policy decision is in the domain of the executive authority of the State and the court should not question the efficacy or otherwise of such policy so long the same does not offend any provision of the statute or the Constitution of India.

    9. On perusal of Railway Board's letter dated 2.7.2008 (Annexure R-4), we find that according to it replacement panel may be called after following certain procedure. In this regard relevant para 4(ii) of this circular is reproduced as under:

    Even where the number of candidates available after document verification exceeds the number of vacancies, the panel finalized by RRC (Railway Recruitment Cell) shall be equal to number of vacancies only. In case, the Railway administration after giving stipulated joining time to the selected candidates, certifies that certain number of candidates have not turned up within the specified period, another panel equal to the number of candidates finally not turning up for taking appointment will be supplied by RRC. Before calling for replacement in-lieu of the candidates finally not turning up for taking appointment, CPO shall personally satisfy himself that the procedure for cancellation of the order of appointment to the originally empanelled candidates has been strictly followed. Under no circumstances, the number of candidates covered in the original as well as replacement panels shall exceed the number of the vacancies intended by the railway.

    (emphasis supplied by us)

    10. The right of candidates in 20% extra list begins only after a demand is made for replacement panel to Railway Recruitment Cell after duly following aforesaid procedure. The procedure for working out requirement of replacement panel is not part of either the employment notification or selection procedure. The right of applicants for consideration starts only after certain appointment orders of originally empanelled candidates are cancelled and thereafter a demand is raised for replacement panel. Since no demand has been made in view of the procedure specified in notification dated 2.7.2008 (Annexure R-4) no right for consideration of the applicants has either acquiesced or been infringed.

    11. The Hon'ble Supreme Court in the matters of Bajaj Hindustan Ltd. v. Sir Shadi Lal Enterprises Ltd., (2011) 1 SCC 640, has considered the matters pertaining to policy decision taken by the executive and has held that it is in the domain of the executive authority of the State and the court should not question the efficacy or otherwise of such policy so long the same does not offend any provision of the statute or the Constitution of India. Paragraph 41 of the said judgment reads thus:

    41. The executive authority of the State must be held to be within its competence to frame a policy for the administration of the State. Unless the policy framed is absolutely capricious and, not being informed by any reason whatsoever, can be clearly held to be arbitrary and founded on mere ipse dixit of the executive functionaries thereby offending Article 14 of the Constitution or such policy offends other constitutional provisions or comes into conflict with any statutory provision, the court cannot and should not outstep its limit and tinker with the policy decision of the executive functionary of the State. This Court, in no uncertain terms, has sounded a note of caution by indicating that policy decision is in the domain of the executive authority of the State and the court should not embark on the unchartered ocean of public policy and should not question the efficacy or otherwise of such policy so long the same does not offend any provision of the statute or the Constitution of India. The supremacy of each of the three organs of the State i.e. legislature, executive and judiciary in their respective fields of operation needs to be emphasised. The power of judicial review of the executive and legislative action must be kept within the bounds of constitutional scheme so that there may not be any occasion to entertain misgivings about the role of judiciary in outstepping its limit by unwarranted judicial activism being very often talked of in these days. The democratic set-up to which the polity is so deeply committed cannot function properly unless each of the three organs appreciate the need for mutual respect and supremacy in their respective fields.

    (emphasis added by us)

    12. After considering all pros and cons of the matter and the settled legal position as narrated above, we are of the considered opinion that the applicants are not entitled to the reliefs sought for in these Original Applications. Accordingly, all these Original Applications are dismissed, however, without any order as to costs.

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    Avinash Kumar Kaiwart v. South Eastern Central Railway
    (Feb 13, 2015)