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2025 DIGILAW 312 (GAU)

Aseb Audit And Accounts Service Association v. Assam Power Distribution Co. Ltd.

2025-02-25

N.UNNI KRISHNAN NAIR, VIJAY BISHNOI

body2025
JUDGMENT : N. Unni Krishnan Nair, J. Heard Mr. K. N. Choudhury, learned senior counsel, assisted by Mr. T. Kashyap, learned counsel, appearing on behalf of the petitioner Association. Also heard Mr. N. Deka, learned standing counsel, Assam Power Distribution Company Limited, appearing on behalf of all the respondents. 2. The challenge, in the present proceeding, is to the vires of the provisions of Rules 7(d) to (h); 10(ii) to (vi); and 11(I)(B) to (F); of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012. The petitioner Association has also presented a challenge to an advertisement, dated 10.05.2018, issued for recruitment against vacant posts in the cadre of Deputy General Manager (F&A) and Assistant General Manager(F&A). 3. The provisions of Rule 3 of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, provides for the cadres constituting the service. In terms of the provisions of Rule 3 thereof; the entry cadre is the cadre of Assistant Accounts Officer and the highest cadre is that of the cadre of Chief General Manager(F&A)/Chief General Manager(Audit). 4. The various cadres forming the Finance & Accounts Service in the respondent Assam Power Distribution Company Limited, is, as under: “ (i) Assistant Accounts Officer (ii) Deputy Accounts Officer (iii) Accounts Officer (iv) Assistant Manager (F & A) (v) Assistant General Manager (F & (vi) Deputy General Manager (F (vii) General Manager (F & A) ? (viii) Chief General Manager (F & A) /Chief General Manager(Audit)” 5. Rule 7 of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, provides for the manner for recruitment to the various cadres of the service. While the posts forming the cadre of Assistant Accounts Officer is to be filled up by way of direct recruitment, the next higher cadre of Deputy Accounts Officer is mandated to be so filled up by way of promotion from amongst the incumbents in the cadre of Accounts Officer. The next higher cadre of Accounts Officer is also mandated to be so filled up by way of promotion from the incumbents in the cadre of Deputy Accounts Officer. The further higher cadre of Assistant Manager(F&A) is mandated to be so filled up by way of promotion from the incumbents in the cadre of Accounts Officer. The next higher cadre of Accounts Officer is also mandated to be so filled up by way of promotion from the incumbents in the cadre of Deputy Accounts Officer. The further higher cadre of Assistant Manager(F&A) is mandated to be so filled up by way of promotion from the incumbents in the cadre of Accounts Officer. The Rules, thereafter, provides that the cadre of Assistant General Manager(F&A) would be so filled up by way of direct recruitment to the extent of 33.33% of the posts forming the cadre and the remaining 66.66% of the posts to be so filled up by way of promotion from the incumbents in the cadre of Assistant Manager(F&A). Similarly, the cadre of Deputy General Manager(F&A) is also mandated to be so filled up by way of direct recruitment to the extent of 33.33.% of the posts forming the cadre and the remaining 66.66% of the posts by way of promotion from the cadre of Assistant General Manager(F&A). The cadre of General Manager(F&A) is mandated to be so filled up, either, by way of direct recruitment, or, by way of promotion from the cadre of Deputy General Manager(F&A). Further, the cadre of Chief General Manager(F&A)/Chief General Manager(Audit) is also mandated by the provisions of Rule 7 to be so filled up, either, by way of direct recruitment, or, by way of promotion from the cadre of Assistant General Manager(F&A). 6. While there is a qualification prescribed for recruitment to the post of Assistant Accounts Officer, there is no prescription of qualification required to be possessed by an in-service candidate for promotion to the next higher cadres of the service upto the cadre of Chief General Manager(F&A)/ Chief General Manager(Audit). However, the provisions of Rule 11 of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, prescribes separate qualifications for direct recruitment to the various cadres of the service along with varying work experience. 7. The Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, were amended in the year 2018, and in the provisions of Rule 11(I)(B) to (F) of the said Rules of 2012; an additional qualification i.e. “2(two) years full-time MBA/PGDM degree, 2(two) years full-time with specialization in Finance from reputed University/Institution approved by AICTE”, came to be so prescribed. 8. 8. For better understanding, the hierarchy of the posts forming the Finance & Accounts Service; the manner of recruitment and the qualification so prescribed for direct recruitment against the various posts, is set-out hereinbelow, in a tabular format: Sl. No. Cadre Direct recruitment/ Promotion(Rule7) Qualification for direct recruitment 1. Assistant Accounts Officer Direct recruitment Degree 55% - B.Com with Maths/Stats, Arts/Science 2. Deputy Accounts Officer Promotion amongst Accounts Officer 3. Accounts Officer Promotion amongst Deputy Accounts Officer 4. Assistant Manager(F&A) Promotion amongst Accounts Officer 5. Assistant General Manager(F&A) 33.33% by direct recruitment and 66.66% by promotion from Assistant Manager(F&A) Degree, CA or Cost Accountant. Experience not less than 3 years + MBA specialization in Finance 6. Deputy General Manager(F&A) 33.33% by direct recruitment and 66.66% by promotion from Assistant General Manager(F&A) Degree, CA or Cost Accountant. Experience not less than 5 years + MBA specialization in Finance 7. General Manager(F&A) By direct recruitment or by promotion from Deputy General Manager(F&A) Degree, CA or Cost Accountant. Experience not less than 7 years + MBA specialization in Finance 8. Chief General Manager(F&A) /Chief General Manager(Audit) By direct recruitment or by promotion from General Manager(F&A) Degree, CA or Cost Accountant. Experience not less than 10 years + MBA specialization in Finance 9. The grievance raised in the present proceedings, by the petitioner Association, is to the effect that the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, having provided for lateral entry in the higher cadres of the service by way of direct recruitment; it has the effect of curtailing the promotional avenues of the in-service candidates, resulting in their stagnation in the lower cadres of the service. It is also projected that given the fact that persons entering into the service in the higher cadres having longer period of service in comparison to the in-service candidates, the same also has the effect of restricting the in- service candidates from holding posts in the higher cadre. 10. Basing on the said premises; the petitioner Association has instituted the present proceeding, assailing the provisions of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, to the extent, noticed hereinabove, in addition to presenting a challenge to an advertisement, dated 10.05.2018, issued by the respondent authorities for recruitment against the posts of Assistant General Manager(F&A) and Deputy General Manager(F&A). 11. Mr. 11. Mr. Choudhury, learned senior counsel for the petitioner Association, by referring to the provisions of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012; as set-out in the writ petition; submits that provision made in the Rules for lateral entry in the higher cadres constituting the Finance & Accounts Service, has resulted in blocking of the promotional avenues of the existing employees, who, by virtue of their long service in the Company, had garnered experience relevant to the works of the Company. It is further submitted by Mr. Choudhury, learned senior counsel, that the in-service employees who are more suited to the discharge of the responsibility attached to the posts in the cadres forming the Finance & Accounts Service of the Company, are now prevented from moving to the higher cadres of the service on account of the provision made for direct recruitment in the higher cadres of the service. Mr. Choudhury, has also highlighted that a direct recruit in a higher cadre, would not be in a position to comprehend the nature of the works of the Company in absence of adequate exposure, while an in-service employee would be better placed, in view of the experience garnered in the cadre of Assistant Accounts Officer and above; for long period of time. 12. Mr. Choudhury, learned senior counsel, by referring to the educational qualifications as mandated for recruitment to the cadre of Assistant General Manager(F&A) and above, and the prescription therein, of such candidate, to be a Chartered Accountant or a Cost Accountant along with post- qualification experience in Finance and Accounting works, has submitted that the qualification, as mandated, is not relevant to the works involved in the Accounts Wing of the Company, in-as-much as, a Chartered Accountant and/or a Cost Accountant is basically entrusted with the scope of auditing financial statements and business practices and performing tax related issues and is not required for the preparation of financial statements and other financial activities. 13. Mr. Choudhury, learned senior counsel, has submitted that a Chartered Accountant and/or a Cost Accountant can be engaged by the Company on need basis and there is no requirement for recruitment of such candidates for the works as arising in the Assam Power Distribution Company Limited. 14. Mr. 13. Mr. Choudhury, learned senior counsel, has submitted that a Chartered Accountant and/or a Cost Accountant can be engaged by the Company on need basis and there is no requirement for recruitment of such candidates for the works as arising in the Assam Power Distribution Company Limited. 14. Mr. Choudhury, learned senior counsel, by drawing a comparison with the other Wings of the Company, has submitted that there is no scope of lateral entry in the higher cadres in the other Wings. However, with a view to cause discrimination to the in-service employees in the Finance & Accounts Wing; the respondent Company had formulated the provisions of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, in the manner, as noticed hereinabove. 15. Mr. Choudhury, learned senior counsel, has further submitted that the provisions of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, more particularly, the provisions mandating direct recruitment along with the qualification so prescribed for the same, has got no nexus with the object sought to be achieved. The learned senior counsel has also submitted that the classification now brought into effect by way of the provisions of the Rules of 2012, is in clear violation of Articles 14 and 16 of the Constitution of India , in-as-much as, the classification bears no nexus with the object sought to be achieved. The learned senior counsel has further submitted that the provisions of the Rules of 2012, has the effect of providing a preferential treatment to the direct recruits in the matter of advancement in their service career in comparison to the in- service candidates who would be now reaching by way of promotion, the said cadres, wherein, lateral entry is permitted. 16. In the above premises; Mr. Choudhury, learned senior counsel, has submitted that the provisions of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, under challenge in the present proceeding, would mandate an interference by this Court, with a further direction to the respondent Company to re-frame the Rules providing for better avenues for the in-service candidates for advancement in their service career. 17. Mr. Choudhury, learned senior counsel, in support of his submissions, has relied upon a decision of the Hon'ble Supreme Court in the case of Govind Dattatray Kelkar & ors. 17. Mr. Choudhury, learned senior counsel, in support of his submissions, has relied upon a decision of the Hon'ble Supreme Court in the case of Govind Dattatray Kelkar & ors. v. Chief Controller of Imports and Exports & ors., reported in AIR 1967 SC 839 . 18. Per contra, Mr. Deka, learned standing counsel, Assam Power Distribution Company Limited, has submitted that the petitioner Association, cannot be permitted to dictate to the employer as to the prescription of manner of recruitment to the various cadres forming the Finance & Accounts Service of the Company as well as the prescription of qualification for such recruitment. 19. Mr. Deka, learned standing counsel, by referring to the affidavit filed in the matter by the respondents; has submitted that the provision made therein, for lateral entry by way of direct recruitment to certain cadres forming the hierarchy of Finance & Accounts Service, is with the object to induct candidates with higher qualification to ensure that the works of the Company are efficiently discharged. 20. Mr. Deka, learned counsel, has further submitted that an employee entering the services of the Company, as a direct recruit; is not given any further preferential treatment for advancement to the next higher cadre by way of promotion and the seniority of such direct recruit is reckoned from the date of his/her entry into the cadre. The learned counsel for the respondents, has further clarified that the higher qualification so possessed by the direct recruits is also not given any weightage for the purpose of their promotion to the next higher cadre and they are treated at par with the other employees entering the cadre concerned by way of promotion from the feeder cadres. 21. Mr. Deka, learned standing counsel, has submitted that in a particular year; if there is a recruitment by way of promotion as well as by way of direct recruitment to a particular cadre, the promotees are assigned seniority position above the direct recruits, so entering in the cadre. 22. Mr. 21. Mr. Deka, learned standing counsel, has submitted that in a particular year; if there is a recruitment by way of promotion as well as by way of direct recruitment to a particular cadre, the promotees are assigned seniority position above the direct recruits, so entering in the cadre. 22. Mr. Deka, learned standing counsel, Assam Power Distribution Company Limited, has submitted that for recruitment to the entry cadre of Assistant Accounts Officer; a candidate is required to possess the following educational qualifications: “ A degree in Arts, Science or Commerce from a recognized University with minimum 55% marks or its equivalent in B.Com in aggregate or 55% marks in Hon ors/Major subject (B.Com), or minimum 55% aggregate marks or its equivalent for Arts or Science graduate having Mathematics or Statistics as one of the subjects or 55% marks or its equivalent in Mathematics/Statistics as Honors (BA/B.Sc.).” 23. Mr. Deka, learned standing counsel, has submitted that an in-service cadre so recruited to the post of Assistant Accounts Officer, is not mandated to acquire any further higher qualification for promotion till the highest cadre of Finance & Accounts Service i.e. the cadre of Chief General Manager(F&A)/Chief General Manager(Audit). 24. In the above premises; Mr. Deka, learned standing counsel, Assam Power Distribution Company Limited, has submitted that the Board of the Company on appreciating that there was a necessity of inducting persons with higher qualification, had made a provision for direct recruitment in higher cadres of Finance & Accounts Service and the same being with the view to provide for an efficient discharge of the works of the Company, no discrimination being caused to the existing employees on account of such prescription being made, and avenues for their career advancement being provided; the provisions of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, would not mandate any interference from this Court. 25. We have heard the learned counsels appearing for the parties and also perused the materials available on record. 26. The challenge as presented, in the present proceeding, is with regard to the provisions made in the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, for direct recruitment along with promotion to the higher cadres, more particularly, the cadre of the Assistant General Manager(F&A) and above. 27. 26. The challenge as presented, in the present proceeding, is with regard to the provisions made in the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, for direct recruitment along with promotion to the higher cadres, more particularly, the cadre of the Assistant General Manager(F&A) and above. 27. At the outset, it is to be noticed that the challenge to the provisions of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, is not preferred on the ground of competence of the Board of the respondent Company to frame the same. 28. A perusal of the contentions raised by the petitioner Association in the writ petition as well as the submissions made by Mr. Choudhury, learned senior counsel for the petitioner Association; during the course of hearing of the present petition, would go to reveal that the grievance of the petitioner Association is with regard to the curtailment of their chance of promotion to the higher cadres on account of provisions being so made for recruitment also by way of direct recruitment in the higher cadres of the service. Accordingly, the grievance of the petitioner Association, is the curtailment of their avenue for promotion and the resultant stagnation of the in-service employee’s of the service. The said grievance is now being examined. 29. It is also to be noted that the petitioner Association has not raised a grievance that the in-service employees on account of the provisions of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, have been denied an opportunity for having their cases considered for promotion. 30. It is a well settled position of law that although an employee has no right to be promoted, he has a right to be considered for promotion. This right to be considered for promotion is one of the matters relating to employment or appointment within the meaning of Article 16(1) of the Constitution of India . In other words, right to be considered for promotion, is a condition of service. Although an employee has a fundamental right to be considered for promotion, it will be available only if he falls within the prescribed zone of consideration. In other words, right to be considered for promotion, is a condition of service. Although an employee has a fundamental right to be considered for promotion, it will be available only if he falls within the prescribed zone of consideration. If an employee is not considered for promotion although he comes within the zone of consideration for such promotion, then there will be a clear infraction of his fundamental right under Article 16(1) of the Constitution of India . However, the said principle would not lead to a conclusion that the power of judicial review also extents to interfering with the policy providing for avenues of promotion and to direct what avenues the authorities should provide for its various employees although it is permissible for the Court to interfere if there is arbitrariness or resultant discrimination in the manner of providing such avenues for promotion. However, since the manner of providing for avenues of promotion as well as prescribing the recruitment conditions being a matter of policy, the Courts would not be in a position to direct the authorities to frame or re-frame a promotional scheme in a particular manner in exercise of its powers of judicial review and/or interfere with the channels of promotion to employees of the Organization. 31. It has been held by the Hon'ble Supreme Court in the case of State of Maharashtra & anr. v. Chandrakant Anant Kulkarni, reported in (1981) 4 SCC 130 that mere chances of promotion are not conditions of service and the fact that there was a reduction in the chances of promotion; did not tantamount to a change in the condition of service. It was also held that a right to be considered for promotion is a term of service but mere chances of promotion are not. 32. Similarly, in the case of AIR Commodore Naveen Jain v. Union of India & ors., reported in (2019) 10 SCC 34 , the Hon'ble Supreme Court, relying upon the various judicial precedence that the policy of a State affecting the chances of promotion, cannot be said to be illegal, arbitrary and discriminatory so as to attract the violation of either, Article 14, or Article 16 of the Constitution of India , observed, as under: “ 13. In State of Mysore v. G.B. Purohit this Court held that a right to be considered for promotion, is a condition of service but mere chances of promotion are not. The rule which merely affects the chances of promotion cannot be regarded as varying a condition of service. The said judgment was quoted with approval in later judgment reported as Ramchandra Shankar Deodhar v. State of Maharashtra¹², wherein this Court held as under: (SCC p. 329, para 15) "15..... All that happened as a result of making promotions to the posts of Deputy Collectors division wise and limiting such promotions to 50 per cent of the total number of vacancies in the posts of Deputy Collector was to reduce the chances of promotion available to the petitioners. It is now well settled by the decision of this Court in State of Mysore v. G.B. Purohit that though a right to be considered for promotion is a condition of service, mere chances of promotion are not. A rule which merely affects chances of promotion cannot be regarded as varying a condition of service. In Purohit case the district wise seniority of sanitary inspectors was changed to Statewise seniority, and as a result of this change the respondents went down in seniority and became very junior. This, it was urged, affected their chances of promotion which were protected under the proviso to Section 115, sub-section (7). This contention was negatived and Wanchoo, J. (as he then was), speaking on behalf of this Court observed: (SLR para 10) 10. ..... It is said on behalf of the respondents that as their chances of promotion have been affected their conditions of service have been changed to their disadvantage. We see no force in this argument because chances of promotion are not conditions of service.” (emphasis added) 33. Applying the said decisions of the Hon'ble Supreme Court to the facts of the present case; we are of the considered view that the challenge presented by the petitioner Association to the provisions of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, on the ground of curtailment of avenues of promotion, would not merit acceptance. The provisions of the said Rules of 2012, provides for avenues of promotion to the various cadres and also for consideration of the cases of the in-service candidates, for such promotion. The provisions of the said Rules of 2012, provides for avenues of promotion to the various cadres and also for consideration of the cases of the in-service candidates, for such promotion. The provision made in the Rules of 2012, for direct recruitment in the higher cadres of the services, at best, would only have an effect on the chances of promotion of the in-service candidates, mere chance of promotion not being a condition of service; on the said ground, no interference would be called to be made with the provisions of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, under challenge, in the present proceedings. 34. The contentions raised by the respondents Assam Power Distribution Company Limited, in their affidavit, justifying the necessity for incorporating provisions providing for direct recruitment to certain cadres in the hierarchy of the Finance & Accounts Service, has not been disputed by the petitioner Association by way of filing any affidavit-in-reply thereto. 35. Further, the materials brought on record would also go to reveal that on a candidate being so recruited by way of direct recruitment in the higher cadres of the Finance & Accounts Service; no preferential treatment, is, thereafter, extended to such direct recruit and he, after his appointment to the post in the cadre to which he was so recruited by way of direct recruitment, is treated at par with the other incumbents existing in the cadre who were so recruited to the cadre, in question, by way of promotion, for the purpose of their advancement to the next higher cadre. 36. It is also to be noted that the higher educational qualification possessed by such direct recruit, is also not given any weightage for the purpose of promotion to the next higher grades and he is so considered at par along with the other promotees existing in such cadre in terms of the provisions of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, for their advancement to the next higher grades of the Finance & Accounts Service. 37. We have also considered the decision of the Hon'ble Supreme Court in the case of Govind Dattatray Kelkar (supra), as relied upon by Mr. 37. We have also considered the decision of the Hon'ble Supreme Court in the case of Govind Dattatray Kelkar (supra), as relied upon by Mr. Choudhury, learned senior counsel for the petitioner Association, and on perusal of the same; we are of the considered view that the same would have no application to the facts as involved in the present proceeding. 38. In view of the foregoing discussions; we are unable to hold that the provisions of the Assam Power Distribution Company Limited Finance & Accounts Service Rules, 2012, as formulated by the Board of the respondent Company for the purpose of recruitment to the various cadres forming the Finance & Accounts Service of the said Company; is violative of Articles 14 and 16 of the Constitution of India . Accordingly, the provisions of the Rules of 2012, under challenge, in the present proceedings, would not call for any interference. Consequently, the challenge as presented to the advertisement, dated 10.05.2018, would also not mandate acceptance. 39. Consequently, this writ petition is held to be devoid of any merit and accordingly, the same is hereby dismissed. However, there shall be no order as to costs.