PUNJAB NATIONAL BANK v. PNB EMPLOYEES WELFARE ASSOCIATION (REGD. )
1999-02-01
Y.K.SABHARWAL
body1999
DigiLaw.ai
K. S. Gupta, J. ( 1 ) BOTH these appeals are directed against the common judgment of a learned Single Judge dated 11/7/1990 whereby writ to mandamus was issued to the appellanrespondent No. 1 and Union of India to make reservation with regard to all the posts in MMG II arising after 25th March 1981 till 4th July 1987, fill the posts in accordance with the policy of 25th March 1981 and also to amend the policy of 22nd February 1988 so as to provide for reservation when promotions are to be made according to channel 1, namely, in respect of 60% of the vacancies arising in MMG II and such posts be filled in the manner indicated in the Office Memorandum of 27th November 1972 on the basis of 40 point roster. ( 2 ) C. W. 919/87 was filed, inter alia, alleging that Punjab National Bank (Scheduled Castes/scheduled Tribes) Employees Welfare Association (Regd.) is a registered Association of Scheduled Castes and Scheduled Tribes employees working in the Punjab National Bank. In consonance with the Govt. of India, Department of Personnel O. M. No. 27/2/71 - Estt. (SCT) dated 27/11/1972 and O. M. No. 36021/7/75 - Estt. (SCT) dated 25/2/1976 which provide for reservation policy in promotion on the basis of seniority subject to fitness of the employees belonging to SC/st, the respondent No. 1/appellant framed revised policy as contained in Personnel Division circular no. 568 dated 25th 1981 (in short policy of 1981 ). According to this policy, for promotion of officers from JMG I to MMG II, two procedures are prescribed - (i) through selectivity and (ii) through seniority. Procedure for promotion by way of selectivity involves written test, interview, performance, educational qualifications and branch experience. Procedure for promotion by seniority provides that the eligible candidates will be called for interview in order of seniority provided that the number of candidates will not exceed three times the number of anticipated vacancies in a calendar year. It further provides that there will be 45 marks for performance, 30 marks for interview, 15 marks for educational qualification, 10 marks each for seniority and additional branch experience. Reservation of 15% for Schedules Castes and 7-1/2% for Scheduled Tribes candidates is further provided under the policy for promotion from JMG I to MMG II based on seniority.
It further provides that there will be 45 marks for performance, 30 marks for interview, 15 marks for educational qualification, 10 marks each for seniority and additional branch experience. Reservation of 15% for Schedules Castes and 7-1/2% for Scheduled Tribes candidates is further provided under the policy for promotion from JMG I to MMG II based on seniority. It is stated that after the policy of 1981 came into existence, bank has carried the promotion through seniority process only. First selection for promotion from JMG I to MMG II was made in May/june 1981. Second selection was held in October 1982 while the third selection in January 1983. Fourth selection was made in April 1983 while fifth selection took place in July/august 1983. Sixth selection was held in August/september 1984 while seventh selection in November 1981. Last selection was made in September/october 1986. It is claimed that in none of these selections respondent No. 1/appellant implemented the reservation policy for SC/st candidates. Action on the part of respondent No. 1/appellant in not following the policy for reservation is arbitrary, unlawful and in violation of the constitutional guarantees for SCs/sts. It was prayed that by issue of writ of mandamus respondent No. 1/appellant be directed to implement the scheme of reservation as contained in the policy of 1981 for promoting SC/st officers from JMG I to MMG II. Consequential reliefs have further been claimed. ( 3 ) RESPONDENT No. 1/appellant contested the petition by filing reply affidavit. It is alleged that as a matter of fact after the scheme of reservation of 25th March 1981 had been made, it never became effective in view of the fact that in about two months time on 30th May 1981 the Govt. guidelines regarding reservation were notified and those alone governed and held the field and were given effect to. Said policy of 1981 was formally superseded by the Board of Directors of the Bank on 4th July 1987. It is further alleged that regulation No. 17 of the Punjab National Bank (Officers) Service Regulations 1979, which has the statutory force, requires the promotion to all grades of officers to be made in accordance with the policy laid down by the Board from time to time having regard to guidelines of the Govt. , if any.
It is further alleged that regulation No. 17 of the Punjab National Bank (Officers) Service Regulations 1979, which has the statutory force, requires the promotion to all grades of officers to be made in accordance with the policy laid down by the Board from time to time having regard to guidelines of the Govt. , if any. It is claimed that the policy of 1981 did not provide for promotion solely on the basis of seniority subject to fitness. Action of respondent No. 1 in not having provided reservation to SC/st candidates has since been ratified by the Board and the portion of the said policy which provides for reservation of SC/st candidates in the matter of promotion from one cadre to another stands deleted from the policy itself. It is denied that after the policy of 1981 came into force, respondent No. 1 carried the promotions only through the process of seniority, as alleged. ( 4 ) IT appears that after the filing of C. W. 919/87 appellant/respondent No. 1 issued a circular dated 10/8/1987 regarding reservation in promotion from one scale to another which was followed by another promotion policy dated 22/8/1988 in suppression of the earlier policy of 25th March 1981. The policy of 22nd February did not merely do away with the reservation but also changed the manner of promotion. According to the new policy the vacancies in MMG II are to be filled by promotion from JMG I by two channels. Channel-1 is described as being that of proven merit-cum-seniority while channel-2 is described as being of written test followed by interview. In C. W. 2697/88 validity of the new policy of 22nd February 1988 has been assailed besides claiming other consequential reliefs. ( 5 ) SUBMISSION advanced by Shri V. R. Reddy, Senior Advocate appearing for the appellant/respondent No. 1 was that the policy of 1981 dealing with reservation for SCs/sts infact provided for promotion from JMG I to MMG II on the basis of selection instead of seniority-cum-rejection of unfit and, therefore, taking note of the Govt. of India O. M. No. F. 1/45/78 - Estt. (B) dated 30/5/1981 said policy was kept in abeyance and a new promotion policy dated 22/2/1988 was introduced by the appellant/respondent No. 1.
of India O. M. No. F. 1/45/78 - Estt. (B) dated 30/5/1981 said policy was kept in abeyance and a new promotion policy dated 22/2/1988 was introduced by the appellant/respondent No. 1. Under channel I of the promotion policy of 22nd February 1988 in place of seniority subject to fitness, proven merit-cum-seniority was made the basis for promotion. According to the learned counsel, making reservation for SCs/sts in the policy of 1981 was as a result of misconstruing O. M. dated 27/11/1972. In support of the submission strong reliance was placed on the decision in Sydicate Bank Scheduled Caste and Scheduled Tribes Employees Association (Regd.) and Others Vs. Union of India 1990 (Supp) SCC 350. While refuting the said submission, the argument advanced by Sh. Mukul Rohtagi, Senior Advocate for the Association was that the policy of 1981 did provide for reservation based on seniority. According to him, assuming that the said policy was based on selection it was open to the appellant/respondent No. 1 to have provided for reservation over and above what was contained in O. M. dated 27/11/1972. ( 6 ) TO decide the controversy at hand reference to some of the documents placed on the file has become necessary. Department of Personnel O. M. No. 27/2/71 - Estt. (SCT) dated 27/11/1972 was issued with reference to para 2-C of the Ministry of Home Affairs O. M. No. 1/12/67 - Estt. (C) dated 11/7/1968 and para 2 thereof which is relevant provides as under :- "the policy in regard to reservations for Scheduled Castes and Scheduled Tribes officers in posts filled by promotion on the basis of seniority subject to fitness has now been reviewed and it has been decided, in supersession of the orders contained in the aforesaid para 2-C of the O. M. dated 11/7/1968, that there will be reservation at 15% for Scheduled Castes and 7-1/2% for Scheduled Tribes in promotions made on the basis of seniority subject to fitness, in appointments to all Class I, Class II, Class III and Class IV posts in grades or services in which the element of direct recruitment, if any, does not exceed 50 per cent. " ( 7 ) PARA 3 of the said O. M. lays down the procedure to be followed in the matter. Para 5 thereof which too is relevant reads thus :- "the Ministry of Finance, etc.
" ( 7 ) PARA 3 of the said O. M. lays down the procedure to be followed in the matter. Para 5 thereof which too is relevant reads thus :- "the Ministry of Finance, etc. are requested kindly to bring the above decisions to the notice of all Attached and Subordinate Offices under them and semi-Government and Autonomous Bodies with which they are administratively concerned. " ( 7 ) O. M. No. F. 1/45/78 - Estt. (B) issued by the Govt. of India, Ministry of Finance, Department of Economic Affairs (Banking Division) dated 30/5/1981 is alleged to be the basis for keeping in abeyance this policy of reservations for SCs/sts as contained in promotion policy of 1981 by appellant/respondent No. 1. Para 1 of this O. M. which is material reads thus :- 1. "i am directed to invite reference to this department s Letter D. O. No. 10/24/75- SCT (B) dated 30/12/1977, Ministry of Home Affairs O. M. No. 1/9/69 - Estt. (SCT) dated 26/3/1970 and Department of Personnel and Administrative Reforms Letter No. 1/10/74 - Estt. (SCT) dated 23/12/1974 (Para 12. 2 (a) of Chapter 12 of Brochure on Reservation for Scheduled Castes and Scheduled Tribes in Services) on the above subject. As per the Government orders there is no reservation for Scheduled Castes and Scheduled Tribes in promotion by selection within the Officers cadre. But certain concessions and facilities are to be provided to the Scheduled Castes and Scheduled Tribes officers in order to improve their chances for selection to the higher categories of posts in the officers cadre in accordance with the orders contained in the aforesaid O. Ms. of Ministry of Home Affairs. It has been decided that the concessions mentioned in para 2 of MHA s O. M. dated 26/3/1970 would be available to the SC/st officers in Public Sector Banks/financial Institutions in promotions by selection to posts within the officers cadre upto scale III. The copies of MHA s O. M. dated 23/12/1970 and DP and All O. M. dated 23/12/1974 are enclosed herewith. " ( 8 ) BOARD of Directors of appellant/respondent No. 1 in the meeting dated 13/6/1987 is stated to have ratified the action in not providing reservation for SCs/sts in the matter of promotion from JMG I to MMG II and to recommend the deletion of the reservation policy as contained in the policy of 1981.
" ( 8 ) BOARD of Directors of appellant/respondent No. 1 in the meeting dated 13/6/1987 is stated to have ratified the action in not providing reservation for SCs/sts in the matter of promotion from JMG I to MMG II and to recommend the deletion of the reservation policy as contained in the policy of 1981. Omitting the immaterial portions the minutes of the said meeting read thus :- RESERVATION FOR SC/st IN THE MATTER OF PROMOTIONS (WITHIN OFFICER CADRE) RECOMMENDED that : Our action in not providing reservation for SC/st in the matter of posting of Officers in JMG Scale I as Officer Incharge/assistant Manager and also in promotion from JMG Scale I to MMG Scale II may kindly be ratified. RECOMMENDED that the following amendments in our existing promotion policy in the matter of reservation for SC/st may be approved. (I) In the matter of posting of OIC/am and promotion from JMG Scale I to MMG Scale II the scheme of reservation as contained in the promotion policy for Officers dated 20/8/80 and 25th March, 1981, being not applicable may be deleted. . . . . . . . . . REGULATION 17 of the Punjab National Bank (Officers) Service Regulations, 1979, says that promotion to all grades of officers in the Bank shall be made in accordance with the policy laid by the Board from time to time having regard to the guidelines of the Govt. of India, if any, promotion policy of 1981 was framed under the said regulation. According to the said policy the vacancies in MMG II are to be filled by promotion from JMG I by process of selectivity and seniority in the ratio of 40:60 respectively. . Selectivity process consists of written test, interview, performance, educational qualifications and branch experience and maximum marks for them have been fixed as 100, 45, 45, 10 and 10 respectively. Scheme of Seniority process with which we are concerned in these appeals as contained in the said policy of 1981 provides thus :- B. "seniority : Eligibility IN terms of Regulation 18 (5) of the PNB (Officers - Service Regulations, 1979, officers promoted as Officers Incharge/asstt. Managers before this Promotion Policy came into force, will rank for seniority higher than the Accountants and Technical/specialist Officers in Scale I. Officers other than the above category of Officers Incharge/asstt.
Managers before this Promotion Policy came into force, will rank for seniority higher than the Accountants and Technical/specialist Officers in Scale I. Officers other than the above category of Officers Incharge/asstt. Managers in Scale I with minimum of 7 years of satisfactory service as an officer, will be eligible. ( 9 ) ELIGIBLE candidates will be called for interview in order of seniority provided that the number of candidates will not exceed 3 times the number of anticipated vacancies in a calendar year through the seniority quota. Assessment of the candidates will be made on the following ( 10 ) EVERY completed year of service or part thereof which is not less than six months as an officer in Branch/pay Office shall carry two additional marks, subject, however, to the condition that the total marks under this category shall not exceed 6. Every completed year of service or part thereof which i s not less than six months as an officer in Branch/pay office in a rural area will carry two additional marks. The maximum marks under this category shall not exceed 4. Candidates qualifying through the above process will be listed in order of merit on the basis of their aggregate marks awarded as above. Minimum qualifying marks shall be 50. " ( 11 ) YET another portion of the said policy relating to reservation for SCs/sts provides as under :- "1. Reservation Quota THE posts where reservation in posting/promotion will be made and the extent of reservation is given below :- 2. General Conditions THE procedure to be followed for reservation is promotion to different categories will be as under :- THE vacancies in different categories where the reservation in posting/promotion are to be made will be assessed. The number of vacancies will then be determined as per reservation quota separately for SC and ST categories. IN case adequate number of SC/st candidates are not available to fill the reserved vacancies even with relaxed standard, such vacancies will be treated as de-reserved and filled by the General candidates. TERMS and conditions applicable to General candidates would also be applicable to SC/st candidates except to the extent stated specifically in the following paras. (I ). . . . . . . . . . . . . (II) Promotion from Junior Management Grade-Scale I to Middle Management Grade-Scale II through Seniority.
TERMS and conditions applicable to General candidates would also be applicable to SC/st candidates except to the extent stated specifically in the following paras. (I ). . . . . . . . . . . . . (II) Promotion from Junior Management Grade-Scale I to Middle Management Grade-Scale II through Seniority. THE procedure for selection and eligibility criteria would be the same as for General category candidates except that if adequate number of SC/st candidates are not available, SC/st candidates down the seniority list upto S. No. 1. 5 times the number to be called otherwise may also be considered. Thus if 20 Officers in Scale I are to be called for Interview, SC/st candidates appearing at S. Nos. 21 to 30 of the Seniority List may also be considered. THE qualifying marks for Scheduled Castes and Scheduled Tribes candidates would be 40% (aggregate marks) as against 50% for general candidates. The minimum qualifying marks in the Interview would be 7 as against 10 for General candidates. " ( 12 ) LAST document which needs to be referred is the new policy of promotion dated 22nd February 1988. As per this policy the vacancies in the MMG II are to be filled by promotion from JMG I by two channels - CHANNEL I - (PROVEN MERIT-CUM-SENIORITY) and CHANNEL II (WRITTEN TEST FOLLOWED BY INTERVIEW ). Relevant portion of the said policy in regard to Channel I provides as under:- CHANNEL I - (PROVEN MERIT-CUM-SENIORITY) 60% of the vacancies shall be filled up through this channel on the basis of proven merit-cum-seniority. ( 13 ) NOW it is time to advert to the decision in Syndicate Bank Scheduled Castes and Scheduled Tribes Employees Association (Regd.) (supra ). Since the discussion made in paras 9 to 14 of this decision has a direct bearing on the point in issue we propose to reproduce them as under :- "9. Mr. Sachar contended that the Ministry of State for Finance, Government of India in his letter dated 22/11/1986 addressed to Shri Banwari Lal Bairva Member of Parliament made it clear that during the course of discussions between the officials of the Bank and Banking Division regarding reservations for SC/st employees of the Indian Overseas Bank, it was revealed that the procedure followed by the Bank for effecting promotions, within the officers cadre was the one falling within the categorisation of seniority.
The Bank was immediately advised to maintain rosters even for these promotions within the officers cadre and to provide for reservations for the SCs/sts. It was further mentioned in the above letter that the Bank accepted its mistake and had already agreed to provide for reservations and also to calculate the backlog from 1978 when the reservations in promotions were first introduced in the banks. In another letter issued by the Banking Division of the Ministry of Finance dated 28/11/1986 addressed to the Chairmen and Managing Directors of 20 Nationalised Banks it was mentioned as under : "it may be recalled that instructions were issued by the Government on May 3, 1980 advising banks to apply the provisions of carry forward, interchange, and lapsing of vacancies in promotions also because of certain factors even though strictly speaking these provisions are not applicable to promotions by selection. In doing so, the posts filled by selection method were specifically categorised as those where promotions are made on the basis of a written examination followed by interview and/or on the basis of the interview. On the other hand promotions based on the assessment of the confidential reports of the officers were classified as those based on seniority subject to fitness. " ( 14 ) 10. The Banks were, therefore, requested to review the method of promotions followed by them and ensure that wherever the rosters are to be maintained for determining the number of vacancies reserved for SC/st, this be done scrupulously. Mr. Sachar brought to our notice the promotion policy in respect of officers of the Syndicate Bank issued on September 17, 1985 annexed with the writ petition as Annexure L at point No. 3 as follows : "3. The Promotion Policy identifies the following four factors as relevant for ascertaining the suitability of officers for promotion from one scale to another : (A) Seniority for promotions up to SMGS IV. (B) Educational and professional qualifications for movement to Middle Management Grade Scale II only. (C) Performance in the grade/scale. (D) Potential as identified in the interview for movement to Middle Management Grade Scale II and above. " 11.
(B) Educational and professional qualifications for movement to Middle Management Grade Scale II only. (C) Performance in the grade/scale. (D) Potential as identified in the interview for movement to Middle Management Grade Scale II and above. " 11. It was thus submitted that from a reading of the two letters dated 22/11/1986 and November 28, 1986 together with the promotion policy issued by the Syndicate Bank it was clear that for promotions from one scale to another up to SMG IV was based on seniority and the Syndicate Bank as such ought to have made promotions up to SMGS IV by giving benefit of reservation to SC/sts in the employment of Bank. 12. It was also contended by Mr. Sachar that upto 1979, the Syndicate Bank made promotions of officers from one scale to another purely on the basis of officers completing five years of service as on December 31 of previous year. No promotions were made in 1979,1980 and 1981. Since 1982 the promotions within the officers cadre were being made on the basis of the following policy : = The minimum eligibility service and factor weightage shall be as follows : 13. It was contended that from the above policy, it would be clear that there was no written test and interview for promotions from Grade I to Grade II and that 60 per cent of the marks had been fixed for seniority. The above policy further makes it clear that the seniority was considered a predominant factor. The Government of India in its Office Memorandum dated 27/11/1972 had provided for reservation of 15 per cent and 7-1/2 per cent for Sc and ST candidates respectively, and the Government of India Banking Division, had made the reservation policy applicable in the case of promotional posts also vide its D. O. Letter No. 10/24/74 SCT (B) dated 31/11/1977. Thus, three remains to ambiguity and the respondent Bank ought to have given benefit of reservation policy from January 1, 1978 to the members of SCs/sts in the cadre of officers. Mr. Sachar also submitted that as already mentioned above in the matter of employees of the Indian Overseas Bank rosters for calculating the vacancies reserved for the SCs/sts had been applied in the case of promotions within the officers cadre.
Mr. Sachar also submitted that as already mentioned above in the matter of employees of the Indian Overseas Bank rosters for calculating the vacancies reserved for the SCs/sts had been applied in the case of promotions within the officers cadre. It was further argued that the principle of contemporanea ex positio i. e. interpreting the statute or any other document by reference to the exposition it has received from contemporary authority, has to be applied in case of employees of the Syndicate Bank also while effecting promotions within the officers cadre. Reliance in support of the above contention is placed on Desh Bandhu Gupta and Company v. Delhi Stock Exchange Assn. Ltd. 14. We find no force in the above contention of Mr. Sachar. A perusal of the promotion policy goes to show that for the purpose of promotions in the cadre of officers from JMGS to MMGS II and from MMGS II to MMGS III and then up to scale VII is not based on seniority alone. Apart from the points for seniority other factors based on selective process were also important and as such it cannot be held that such promotions in the higher scale were based solely on seniority. A perusal of the criteria laid down in the promotion policy already extracted above clearly goes to show that apart from points for performance in the sale and points for seniority, points for educational and professional qualification, points for potential as identified in the interview have also be assessed while making appointment by promotion. Merely because in the case of promotion from JMGS to MMGS II points for seniority being mentioned as 60, it cannot be said that such promotion in scale II may be considered as promotion otherwise than by the method of selection. In our view unless the promotion is based on seniority alone and other factors based on merit such as educational and professional qualifications, performance in the scale, written examination or interview have no material bearing it cannot be considered as a promotion based on seniority. A perusal of the policy shows that it is a hybrid system of promotion in which up to scale IV points are given for seniority as well as for other factors also which are based on a sort of selection process depending upon the education qualifications, performance in the scale and interview.
A perusal of the policy shows that it is a hybrid system of promotion in which up to scale IV points are given for seniority as well as for other factors also which are based on a sort of selection process depending upon the education qualifications, performance in the scale and interview. In the case of promotion from scale IV to scale VII there are no points given for seniority at all. Thus taking in view the entire scheme of promotion policy, we think that promotions in the officers cadre from JMGS I to scale VII shall be considered as promotions on selection basis. . . . . . " (emphasis supplied by us) ( 15 ) WHETHER the policy of 1981 providing for reservation for SCs/sts in promotion from JMG I to MMG II is based on seniority-cum-rejection of unfit or selection, is the principal issue to be decided in these appeals ? It may be noticed that under the said policy of promotion through the process of seniority out of 110 marks 10 marks were allocated for seniority and the other factors such as performance, interview, educational qualification and branch experience were assigned 100 marks. Marks allotted for seniority obviously are negligible compared to the marks assigned to the said other factors which mainly pertain to merit. Thus, applying the ratio in Syndicate Bank (supra) promotion from JMG I to MMG II as per the policy of 1981 cannot be said as based on seniority alone. In fact, it is a promotion policy based on selection. This view of ours equally holds good as regards scheme provided in channel I of the latter promotion policy dated 22/2/1988. That being so, the judgment under appeal which was rendered on the assumption that both the said promotion policies were based on seniority subject to fitness alone cannot be legally sustained. Since under aforesaid regulation 17 guideline issued by the Govt. of India in the matter of reservation for SCs/sts are to be taken into consideration for formulation of the promotion policy by the Board of the appellant Bank we are unable to agree with the contention advanced by Shri Rohtagi that it was open to the appellant/respondent No. 1 to have provided for reservation under the promotion policy of 1981 over and above what was contained in O. M. dated 23/11/1972.
( 16 ) FOR the foregoing discussion, both the appeals are allowed and the judgment under appeal is set aside. C. W. P. Nos. 919/87 and 2697/98 are dismissed. No order as to costs.