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1982 DIGILAW 1008 (ALL)

G. P. Wahal v. Manager, Reserve Bank of India, Kanpur

1982-09-03

K.M.DAYAL, K.N.SINGH

body1982
JUDGMENT K. N. Singh, J. - By means of this petition under Article 226 of the Constitution, the petitioners have challenged the scheme framed by the Reserve Bank of India providing reservation for scheduled castes and scheduled tribes for promotion to the cadre of staff officers grade II of the Bank. 2. The petitioners who are 13 in number are employed as clerks grade I in the Reserve Bank of India at Kanpur. In 1978-79, 25 vacancies were anticipated in staff officers grade II. Selections for those vacancies were to be made by promotion from clerks grade I in accordance with the promotion Scheme framed by the Bank which was introduced on 7-5-1972. A departmental examination was held for qualifying test for the purpose of promotion to staff officers grade II. The petitioners have asserted that under the provisions of clause II of the scheme, maximum number of candidates called for qualifying test, could not exceed 50 (twice the number of vacancies) for appearing at the qualifying test. On 21-6-78 a telex message was issued by the Reserve Bank of India, modifying the scheme of promotion. The modified scheme provided that if senior scheduled castes and scheduled tribes candidates are not available for selection within the range of twice the number of vacancies, then thrice the number of estimated vacancies should be considered for selection of scheduled castes and scheduled tribes candidates only. The modified scheme further provided that the selection of scheduled castes and scheduled tribes candidates would be judged on the principle of seniority subject to suitability. In accordance with the modified scheme of promotion Sunder Lal respondent No. 2 who was junior to the petitioners in the seniority list of clerks grade I was promoted. The petitioners have challenged validity of the promotion scheme providing reservation for scheduled castes and scheduled tribes in pursuance of which Sunder Lal respondent was promoted. 3. Sri Jagdish Swarup learned counsel appearing for the petitioners assailed the validity of the promotion scheme making provision for reservation in favour of scheduled castes and scheduled tribes candidates on a number of grounds. His submissions are (1) Reservation of vacancies in favour of scheduled castes and scheduled tribes in service is violative of Article 16 of the Constn. (ii) Reservation made on the basis of caste is violative of Article 16 of the Constn. His submissions are (1) Reservation of vacancies in favour of scheduled castes and scheduled tribes in service is violative of Article 16 of the Constn. (ii) Reservation made on the basis of caste is violative of Article 16 of the Constn. (iii) Reservation in favour of the scheduled castes and scheduled tribes on promotion posts adversely affects the efficiency in administration, (iv) Modification made in the scheme of promotion practises discrimination inasmuch as a junior has been made senior, (v) The promotion scheme as modified under the directions of the Bank on 21-6-78 has been made in violation of S. 9-A of the Industrial Disputes Act, 1947. 4. The first four submissions of the learned counsel relate to validity of reservation made in favour of scheduled castes and scheduled tribes on promotion post. These submissions in substance are inter-connected which can be disposed of easily. The submission of the learned counsel for the petitioners is founded on the right to equality which is a fundamental right under the Constn. Articles 14, 15 and 16 deal with equality. Article 14 enjoins that State shall not deny to any person equality before the law or the equal protection of laws. Article 15 prohibits discrimination on the ground of religion, race, caste, sex, place of birth. Under Cl. (4) of Article 15, the State is permitted to make special provision for advancement of any socially and educationally backward classes of citizens or for scheduled castes and scheduled tribes. Article 16 ensures equality of opportunity in matters of public employment. Cl. (1) of the Article 16 ensures equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State Cl. (2) provides that no citizen shall be discriminated in respect of any employment or office under the State on grounds of religion, race, caste, sex or place of birth, Cl. (4) of Article 16 permits the State to make provision for the reservation of appointments or posts in favour of any backward class of citizens, which, in the opinion of the State is not adequately represented in the service under the State. These provisions ensure equality to citizens and prohibit discrimination on the grounds of religion, race, caste, sex or place of birth. 5. These provisions ensure equality to citizens and prohibit discrimination on the grounds of religion, race, caste, sex or place of birth. 5. Article 15 (4) and Article 16 (4) both the provisions permit the State to make special provision for the advancement of socially and educationally backward class of citizens and the scheduled castes and scheduled tribes. Article 16 which provides for equality of opportunity in matter relating to employment or appointment to any office under the State, itself, permits reservation in favour of backward classes or special provisions relating to reservation for Scheduled castes and scheduled tribes in the Parliament and the State Legislature and also in services. Article 335 provides that the claims of the Scheduled Castes and Scheduled Tribes shall be taken into consideration, consistently with the maintenance of efficiency of administration, in making appointments to services and posts in connection with the affairs of the Union or a State. The President in pursuance to Article 340 appointed Commission to investigate the conditions of socially and educationally backward classes and to make recommendations for taking steps to improve their conditions. On the report of the Commission, Policy of reservation has been evolved by the Union Government providing reservation of posts under the State. Under Articles 341 and 342 the President has issued Public notification specifying castes, races, or tribes which are included in scheduled castes and scheduled tribes respectively. These provisions indicate that the framers of the Constn. were aware that backward classes, scheduled castes and scheduled tribes were educationally, socially and economically depressed and they needed special provision to remove their backwardness to bring them at par with the remaining members of the society. The directive principle of the State policy as contained in Article 46 requires the State to promote with special care the educational and economic interests of weaker sections of the people and, in particular, of the scheduled castes and scheduled tribes and protect them from social injustice and all forms of exploitation. The policy for making reservation in public service in favour of the scheduled castes and scheduled tribes is founded on the constitutional mandate with a view to remove social and educational backwardness of the scheduled castes and scheduled tribes. 6. The Reserve bank of India was constituted under the Reserve Bank of India Act, 1934. The policy for making reservation in public service in favour of the scheduled castes and scheduled tribes is founded on the constitutional mandate with a view to remove social and educational backwardness of the scheduled castes and scheduled tribes. 6. The Reserve bank of India was constituted under the Reserve Bank of India Act, 1934. S. 58 (1) of the Act confers power on the Central Board of Directors of Reserve Bank to make regulations in order to provide for all matters for the purpose of giving effect to the provisions of the Act. The power to provide for service conditions of the staff is incidental to the obligation to carry out the purposes for which the Reserve Bank was constituted. There is no dispute that staff regulations as contemplated by S. 58 (1) of the Act have not been framed. In the absence of statutory rules as contemplated by Section 58 (1) of the Act, administrative circulars have been issued by the Central Board of the Reserve Bank regulating the service conditions of Staff employed with the bank. These regulations are referable to the general power of administration and superintendence of Central Board as conferred upon it by S. 7 (2) of the Act. The Reserve Bank of India Staff Regulations 1948 which regulate the service conditions of the service of the employees of the bank are not statutory instead they are administrative in nature and those regulations can be altered or amended by administrative circulars. See V. T. Khanzode v. Reserve Bank of India, ( AIR 1982 SC 917 ) . The Reserve Bank of India is a statutory corporation constituted by the Reserve Bank of India Act, 1934, which is wholly under the control of the Government of India. The bank is included within the expression "State" as defined by Article 12 of the Constn. as held by the Supreme Court in Reserve Bank of India v. N. C. Paliwal, ( AIR 1976 SC 2345 ) . The Bank is thus under a Constitutional obligation to make provision to give effect to the Constitutional mandate for making reservation in favour of backward classes, scheduled castes and scheduled tribes. The Bank has issued administrative directions providing for 'reservation of posts in favour of scheduled castes and scheduled tribes. 7. The Bank is thus under a Constitutional obligation to make provision to give effect to the Constitutional mandate for making reservation in favour of backward classes, scheduled castes and scheduled tribes. The Bank has issued administrative directions providing for 'reservation of posts in favour of scheduled castes and scheduled tribes. 7. The controversy in the instant case does not relate to the percentage of reservation made in favour of the scheduled castes and scheduled tribes instead the petitioners' grievance is that in calling candidates for appearing at the qualifying test, general candidates are being discriminated inasmuch as the modified scheme permits consideration of scheduled castes candidates falling within the range of thrice the vacancies whereas for general candidates the range is limited to twice of the vacancies. According to the petitioners reservation in promotion post results into discrimination as seniors are superseded by juniors. Article 16 (1) and (2) read with Article 16 (4) contemplates reservation in respect of any employment and all "matters relating to employment" which includes promotion to selection post also. In General Manager, Southern Railway v. Rangachari (AIR 1962 SC 36), it was held that reservation made in favour of the scheduled castes and scheduled tribes for selection posts would serve to give effect to the intention of the Constitution-makers to make adequate safeguard for the advancement of backward classes and to secure for their adequate representation in the services. In the instant case the promotion scheme prior to its modification provided that selection shall be made on the basis of qualifying test from amongst the candidates who are eligible for promotion. S. 2 of the scheme further provided that twice the number of anticipated vacancies, shall be called for qualifying test on the basis of their place in the Seniority list. As already noted, 25 vacancies were stipulated in the staff officers grade II for the years 1978-79. According to the scheme before its modification the maximum number of candidates who could be called for test, could not exceed 50. The modified scheme, however, lays down that if no scheduled castes candidate is available by taking into account twice the number of vacancies, then thrice the number of vacancies should be taken into account from the seniority list for the purposes of selection of scheduled castes and scheduled tribes on the basis of seniority subject to suitability. The modified scheme, however, lays down that if no scheduled castes candidate is available by taking into account twice the number of vacancies, then thrice the number of vacancies should be taken into account from the seniority list for the purposes of selection of scheduled castes and scheduled tribes on the basis of seniority subject to suitability. The modified scheme does not practice any discrimination as the Constitution itself contemplates reservation in favour of scheduled castes and scheduled tribes candidates on promotion post. 8. The Constitution ensures equal treatment to citizens in matters relating to employment. The Constitution, however, does not prohibit special treatment being given to members of scheduled castes and scheduled tribes. The principle of equality does not mean that every law must have universal application for all persons who are not by nature, attainment or circumstances in the same position and varying needs of different classes of persons require special treatment. The concept of equality is not rigid and it does not connote absolute equality. It is open to the legislature and the executive to make classification to give different treatment, but the classification must be based on some reasonable rationale to achieve the object in question. The members of scheduled castes and scheduled tribes are not adequately represented in the public services. Persons belonging to that class cannot be equated with the general candidates as they form different class on account of their social, economic and educational backwardness. The general candidates and the scheduled castes and scheduled tribes candidates do not form one single class, it is, therefore, permissible to give special treatment to the candidates belonging to the scheduled castes and scheduled tribes. Giving preference to an unrepresented backward community is valid and it does not contravene Article 16 of the Constn. as preferential treatment in matters relating to employment is permissible by Article 16 (4) itself, Classification of employees belonging to scheduled castes and scheduled tribes for allowing them to appear at the test on the basis of extended field of eligibility for promotion is just and reasonable, as it is based on rational nexus; with the object of providing equal opportunities to all citizens in matters relating to employment. Granting exemption from special test or giving special treatment to scheduled castes and scheduled tribes in Government services, is permissible under Article 16 (4) of the Constn. Granting exemption from special test or giving special treatment to scheduled castes and scheduled tribes in Government services, is permissible under Article 16 (4) of the Constn. and in a number of cases the Supreme Court has upheld the special treatment being given to the members of the scheduled castes and scheduled tribes. Relaxation of test and qualification for the purposes of promotion made in favour of the scheduled castes and scheduled tribes was upheld by the Supreme Court in State of Kerala v. N. M. Thomas, ( AIR 1976 SC 490 ) . 9. Classification made in favour of scheduled castes and scheduled tribes is not founded on the basis of castes. As noted earlier, the scheduled castes and scheduled tribes form a class which is founded on the basis of their social, economic and educational backwardness. A person falling within the class of scheduled castes and scheduled tribes as notified by the President under Articles 341 and 342 of the Constr., is entitled to the benefit of special treatment. The criterion for giving special treatment is not founded on castes instead it is founded on the basis of a class which is socially, economically and educationally backward. The scheduled castes and scheduled tribes are not a caste within the ordinary meaning of caste. To confuse the qualification of scheduled castes and scheduled tribes on the basis of caste is to commit a constitutional error. The Supreme Court has made this clear in the State of Kerala v. N. M. Thomas, ( AIR 1976 SC 490 ) and Akhil Bhartiya Shoshit Karamchari Sangh v. Union of India, ( AIR 1981 SC 298 ) . 10. The petitioners' contention that the reservation made on promotion post in favour of scheduled castes and scheduled tribes candidates affects the efficiency in public administration, is misconceived. If promotion of scheduled castes and scheduled tribes candidates is made on the basis of minimum qualification required for promotion the same would not affect efficiency in administration. The petitioners have not placed any material to show that the promotion of scheduled castes candidate has affected or will affect the efficiency in administration. If promotion of scheduled castes and scheduled tribes candidates is made on the basis of minimum qualification required for promotion the same would not affect efficiency in administration. The petitioners have not placed any material to show that the promotion of scheduled castes candidate has affected or will affect the efficiency in administration. Sunder Lal respondent who has been selected for promotion was eligible for promotion, he possessed the minimum qualification necessary for promotion, merely because Sunder Lal was junior in the seniority list, is not sufficient to hold that his promotion would affect efficiency in the administration of the Bank. In Akhil Bhartiya Shoshit Karamchari Sangh v. Union of India, 1 AIR 1981 SC 298 ) , all aspects relating to reservation made in favour of scheduled castes and scheduled tribes were considered at great length. The Supreme Court repelled similar arguments as have been raised before us in the present case. The modified scheme of promotion as well as selection and promotion of Sunder Lal does not suffer from any illegality. 11. The petitioner's contention that the modified scheme of promotion was in violation of an agreement which had been entered into by the Bank with All India Reserve Bank Employees Association and Union of the Employees of the Bank needs consideration. It appears that the Bank entered into an agreement with All India Bank Employees Association on 7-5-72 relating to combined seniority of employees. The agreement did not relate to the matter of reservation of scheduled castes and scheduled tribes on promotion post. By modifying the promotion scheme for the purpose of giving effect to the reservation policy, The Bank did not effect any change in the regulations relating to seniority. 12. S. 9-A of the Industrial Disputes Act 1947 lays down that no employer shall change the conditions of service of any workman in respect of any matters specified in the IV Schedule without giving notice to the workman. It was urged that the modified scheme of promotion made changes in the conditions of service applicable to the petitioners and as no notice was given to the employees before making the change, the modified scheme contravened S. 9-A of the 1. D. Act. The notice to the workman is required to be given only if there is change in the conditions of service in respect of matters enumerated in the IV Schedule. D. Act. The notice to the workman is required to be given only if there is change in the conditions of service in respect of matters enumerated in the IV Schedule. Promotion to higher post does not fall in any of the entries contained in the IV Schedule to the I. D. Act, 1947, consequently no notice as contemplated by S. 9-A of the Act was necessary to be given to the employees. Moreover, the modified scheme of promotion did not make any change in the conditions of service, the Reserve Bank, was, therefore, not under any legal obligation to comply with the provisions of S. 9-A of I. D. Act, 1947. 13. For the reasons stated above, we are of the opinion that the reservations made in favour of the scheduled castes and scheduled tribes do not violate any provisions of the Constitution or law. None of the petitioner's constitutional or legal rights have been violated in promoting Sunder Lal respondent to the cadre of staff officers Grade II of the Bank. The petitioners are, therefore, not entitled to any relief. The petition fails and is accordingly dismissed. Parties shall bear their own costs.