vil Appeal Nos 4 125 28 of 1986
From the Judgment and Order dated 31
1986 of the Allahabad High Court in Writ Petition No 422 of 1981 5900 4207 and 5899 of 1985
With Special Leave Petition Civil No 3371 of 1982
From the Judgment and Order dated 2241981 of the High Court of Delhi in Civil Writ Petition No 823 of 1981
SS Sharma for the Appellants in CA Nos 4 125 28 of 1986
Soli J Sorabjee and Mrs Madhu Sikri for the Petition ers in SLP No 3371 of 1982
SN Kacker and RB Mehrotra for Respondent No 1 in CA No 4 125 of 1986
SP Gupta and RB Mehrotra for Respondent Nos 2 to 26 in CA No 4 125 of 1986
Shanti Bhushan and RP Kapur for the Respondents in SLP No 337 1 of 1982
The Judgment of the Court was delivered by DUTT J
In these appeals by special leave and in the Special Leave Petition the dispute relates to the seniority of erstwhile Officers Grade II and the ProbationaryTrainee Officers in the Grade I of the State Bank of India
In the lower level the State Bank of India had two categories of officers namely Officers Grade I and Offi cers Grade II the function of the former was managerial and that of the latter supervisory
The conditions of service of these two categories of officers were admit 121 tedly governed by the State Bank of India Supervising Staff Service Rules hereinafter referred to as the 1975 Rules 
The 1975 Rules were not framed under the rule making power of the Government as conferred by section 49 of the  but under section 43 of the Act sub section1 of which provides that the State Bank may appoint such number of officers advisers and employees as it considers necessary or desirable for the efficient per formance of its functions and determine the terms and conditions of their appointment and service
Sub section 2 of section 43 provides that the officers advisers and employees of the State Bank shall exercise such powers and perform such duties as may by general special order be entrusted or delegated to them by the Central Board
Although the Officers Grade I were superior in rank to the Officers Grade II there was little difference in the pay scales of these two categories of officers
The duties which were to be performed by Officers Grade I and Officers Grade II were also similar in nature
Indeed with the expansion of the banking activities a large number of Officers Grade II were required to perform managerial duties which normally were performed by Officers Grade I The Officers  Federation of the State Bank of India compris ing both Officers Grade I and Grade II had been demanding the abolition of the distinction between these two Grades
The Bank however had been successfully resisting the demand made by the Officers  Federation from time to time
The Federation had at one time started taking resort to agitational method in order to force the Bank to abolish the theoretical distinction between Officers Grade I and Offi cers Grade II
In the mean time another external factor had crept into the situation
The Government had appointed a Committee known as Pillai Committee for considering a question of standardisation of pay and allowances of the officers staff in the nationalised Banks
After the Pillai Committee had submitted its report the Government declared its intention to apply the recommendations of the Pillai Committee to the State Bank of India as well
According to the recommenda tions of the Pillai Committee there should not be any distinction between Officers Grade I and Grade II
The Committee recommended four Grades for officers and had provided for only one scale at the junior management level
Four Grades of officers are as follows 1
Top Executive Grade
122 2
Senior Management Grade
Middle Management Grade
Junior Management Grade
After proposals and counter proposals between the Executive Committee of the Central Board of the State Bank of India and the Officers  Federation the Committee agreed to do away with the distinction between Officers Grade I and Grade II who would be placed in a new cadre called Junior Management Grade having a scale of pay being Scale I Rs
700 40 900 50 1100 EB 1200 60 1800
It was further agreed that the Officers Grade II would be junior to the existing Officers Grade I and the seniority list would be prepared accordingly
After the said agreement was reached between the Execu tive Committee of the Central Board of the State Bank of India and the Officers  Federation the Central Board in exercise of the powers conferred by sub section 1 of section 43 of the  passed an order called State Bank of India Officers Determination of Terms and Conditions of Service Order 1979 for short the Order  determining certain terms and conditions of service of officers in the Bank
Some of the provisions of the Order which are relevant for our purpose are extracted below 11This order may be called State Bank of India Officers Determination of Terms and Conditions of Service Order 1979
2 This order shall come into force on the 1st day of October 1979
1 This order shall apply to the existing officers of the Bank and to the officers of the Bank who are appointed or promoted to any of the grades mentioned in paragraph 4 and to such other employees of the Bank to whom it may be made applicable by the Central Board or the Executive Committee or the competent authority to the extent and subject to such conditions as it may decide
2 It shall not apply except to the extent specified by the Central Board or the Executive Committee or the 123 competent authority to an officer during his tenure of service outside India or to employ ees engaged in any country outside India and serving there
In this order unless there is anything repugnant to the subject or context a Appointed Date means the 1st October 1979                              h Existing Officers means all officers in the service of the Bank immediately prior to the appointed date and to whom any of the following sets of Rules as amended or as deemed to have been amended by appropriate resolutions of the Central Board or the Execu tive Committee are applicable namely i Rules governing the service of Officers in the Imperial Bank of India ii Rules governing the service of Assistants in the Imperial Bank of India and iii State Bank of India Supervising Staff Service Rules 4
1 There shall be the following four grades for officers with the scales of pay specified against each of the grades A Top Executive Grade Special Scale Rs3500 fixed Scale VII Rs 3250 125 3500 Scale VI Rs3000 125 3250 124 B Senior Management Grade Scale V Rs 2500 100 3000 Scale IV A Rs2300 100 2600 Scale IV Rs 2000 100 2400 C Middle Management Grade Scale III Rs 1800 75 2250 Scale II Rs 1200 70 1550 75 2000 D Junior Management Grade Scale Rs700 40 900 50 1100 EB 1200 60 1800 2 Notwithstanding anything con tained in subparagraph 1 a Probationary Officer and a Trainee Officer shall on ap pointment be placed at the stage of Rs860 in Scale I in the Junior Management Grade
                 7
Subject to the provisions of paragraph 6 existing officers serving in the grades and scales of pay mentioned in column 1 of the table given in Schedule I to this order shall be placed as on the appointed date in the grade and scale specified there against in column 2 of the said schedule
Provided that any difficulties or anomalies arising out of the above placement shall be referred to a committee of such persons as the Chairman of the Bank may ap point and the decision of that committee in this regard shall be final
1 Every existing officer placed in any of the new grades and scales of pay in accordance with paragraph 7 shall be fitted at such stage in the new scale of pay corre sponding to the existing grade and scale as specified in Schedule II to this order
125 2 Subject to sub paragraph 3 on being so fitted in the new scale of pay such officer shall be eligible to draw the next increment  if any in such new scale on the first day of the month in which he would have been eligible to draw increment in terms of the provisions in this behalf prior to the appointed date
3 Where two or more officers having different seniority in the scales of pay immediately before the appointed date are fitted at the same stage in the new scale of pay different months may be fixed for the eligibility of such officers for the next increment in the new scale of pay
4 The mere fact that on the ap pointed date an officer happens to be posted in a post categorised as that of a grade or scale higher than the one in which he is placed in accordance with the provision of paragraph 7 will not by itself entitle that officer to any higher placement or fitment
 The Order was actually made and published on 19th Decem ber 1979
but in view of paragraph 12 it came into force on the first day of October 1979
Under paragraph 21 it is inter alia provided that the Order shall apply to the existing officers of the Bank and to such employees of the Bank to whom it may be made applicable
Under paragraph 3h the expression existing officers has been defined as meaning all officers in the service of the Bank immediately prior to the appointed date that is to say October 1 1979
Thus it follows prima facie that the Order will apply only to the existing officers that is the officers who were in the service of the Bank immediately prior to the appointed date which is October 1 1979
It is not disputed that no Order has been passed by the Central Board or the Executive Committee or the competent authority directing the application of the Order to employees of the Bank other than the existing officers as provided in paragraph 21
Before the Order was made and published on December 19 1979 certain Probationary Officers and Trainee Officers were appointed by the Bank in Grade I on October 30 and October 31 1979
These ProbationaryTrainee Officers being Officers in Grade I were on the dates they were appointed superior in rank to the Officers Grade II
These Probation aryTrainee Officers were fitted to the Junior Management Grade Scale I after the Order was passed ereat 126 ing such a Grade at Rs960 pm with effect from 3031 10 1979
These ProbationaryTrainee Officers however claimed that they were seniors to the erstwhile Officers Grade II and that they should be placed above such Officers Grade II in the seniority list
As the Bank had refused the claim of these ProbationaryTrainee Officers to seniority over the erstwhile Officers Grade II in the Junior Management Grade some of them filed writ petitions before the Allahabad High Court and some before the Delhi High Court
The Bank howev er opposed the writ petitions and contended that as they were not the existing officers that is to say employees of the Bank on October 1 1979 which is the appointed date they could not be given the seniority over the erstwhile Grade II Officers who were the existing officers within the meaning of the expression under paragraph 3h of the Order
The Allahabad High Court has taken the view that the expression existing officers has to be read as including the Probationary Officers and Trainee Officers otherwise a repugnancy between the definition of existing officers and the provisions of paragraphs 7 and 8 of the Order will arise
Further it has been held that the notional date of the coming into force of the Order namely 1 10 1979 is only to protect the emoluments of the officers and nothing else
In that view of the matter the Allahabad High Court directed the Bank to prepare the seniority list of its officers in the light of the observations made in the judg ment
Although it was not specifically directed that the ProbationaryTrainee Officers should be placed above the officers in the erstwhile Grade II in the seniority list yet that would follow from the findings made by the High Court
On the other hand the Delhi High Court took a contrary view and dismissed the writ petitions
Though according to the Allahabad High Court the ProbationaryTrainee Officers should be placed above the erstwhile officers in the Grade II according to the Delhi High Court they would be placed below the Officers in the Grade II
Hence these Appeals by the State Bank of India and the Special Leave Petition by the ProbationaryTrainee Officers
Mr Kacker learned counsel appearing on behalf of the ProbationaryTrainee Officers has urged that the Allahabad High Court was justified in holding that the writ petition ers appointed as ProbationaryTrainee Officers on 3031 10 1979 should be considered as the existing officers within the meaning of paragraph 3h of the Order
It is submitted by him that the Bank itself had treated them as 127 existing officers
In support of that contention the learned counsel has drawn our attention to the fact that the Bank had fitted the ProbationaryTrainee Officers appointed on 3031 10 1979 to the Junior Management Grade Scale I at Rs960 pm
Such fitment according to the learned counsel was made under paragraphs 7 and 8 of the Order
Paragraph 7 provides for the placement of existing officers on the appointed date in the corresponding grades and scales
It lays down inter alia that the existing officers shall be placed as on the appointed date in the grade and scale specified in column 2 of Schedule I Item No 9 of column 2 specifies the Junior Management Grade Scale I Paragraph 81 provides that every existing officer placed in any of the new grades and scales of pay in accord ance with paragraph 7 shall be fitted at such stage in the new scale of pay corresponding to the existing grade and scale as specified in Schedule II to the Order
It appears that by a circular dated June 24 1980 the following direc tions were given by the Chief General Manager State Bank of India Officers who were promoted on or after the 1st October 1979 but upto 31st December 1979 should be first fitted in the old scale in terms of the then existing formula and there after their basic pay should be refixed in the new scale for Junior Management Grade Scale I in accordance with the table given below Basic pay in the Basic pay in the Basic pay in the old clerical scale old officer s scale junior manageme nt GSI on the date of promotion Upto 350 500 950 370 540 1000 390 540 1000 420 580 1200 450 620 1200 480 665 1260 515 710 1320 550 755 1380 The basic pay of Probationary Officers and Trainee Officers who were appointed during the period 1st October 1979 to 3 1st December 1979 will also be fixed on the same basis
 128 It is submitted on behalf of the ProbationaryTrainee Officers that it is clear from the said circular that they were also treated as existing officers otherwise they could not be given the same benefit as the other existing officers of the Bank
The existing officers as defined in paragraph 3h means all officers in the service of the Bank immediately prior to the appointed date
Admittedly the ProbationaryTrainee Officers were not in the service of the Bank immediately prior to the appointed date that is October 1 1979
They cannot therefore be held to be the existing officers in the face of the definition of the expression in paragraph 3h of the Order
It is difficult to accept the contention of the Proba tionary Trainee Officers that they were treated by the Bank as existing officers merely because they were fitted to the Junior Management Grade Scale I and given a higher start at Rs960 pm
It is incorrect to say that when an employee is fitted to a particular scale of pay of another cadre he does not become a member of that cadre
In the instant case the ProbationaryTrainee Officers were placed in the corre sponding scales of pay in the Junior Management Grade for the purpose of fitment in the new scales of pay
Indeed as stated already they were fitted to the Junior Management Grade Scale I at Rs960 pm
It may be that such fitment has been made by the Bank following the principles as laid down in paragraphs 7 and 8 of the Order presumably with a view to removing any disparity between Officers Grade I and Officers Grade II in the Junior Management Grade but it will be difficult to accept the contention made on behalf of the ProbationaryTrainee Officers that they were treated as existing officers and such fitment was made under paragraphs 7 and 8 of the Order
The ProbationaryTrainee Officers appointed on 3031 10 1979 that is after 1 10 1979 the appointed date are not existing officers within the meaning of paragraph 3h of the Order and the Bank could not treat them as such for the purpose of fitment or giving a higher scale of pay
We are unable to subscribe to the view of the Allahabad High Court that unless the expression existing officers is read as including the ProbationaryTrainee Officers there will be a repugnancy between the definition of existing officers as contained in paragraph 3h and the provisions of paragraphs 7 and 8 of the Order
This view of the Allaha bad High Court proceeds on the assumption that the Proba tionaryTrainee Officers having been given the benefit of extra emoluments by fitting them in the Junior Management Grade Scale I 129 they were treated as existing officers
In our opinion if the ProbationaryTrainee Officers are treated as existing officers
it will be doing violence to the provisions of paragraph 3h
We do not think that the definition of the expression existing officers as given in paragraph 3h is in any way repugnant to the provisions of paragraphs 7 and 8 of the Order
On the contrary it is quite in harmony with the said provisions and also the other provisions of the Order
There is no ambiguity in the definition of existing officers and in regard to paragraphs 7 and 8 of the Order there is no repugnancy of the definition to the subject or context
Repugnancy of the definition of any term may arise only if such definition does not agree with the subject or context of a particular provision
But surely any action not in conformity with the provision of the definition clause will not render the definition of a term repugnant to the subject or context of any provision of the statute containing the term
We are also unable to accept the convention of Mr Kacker that the definition of exist ing officers is only illustrative and not exhaustive and that such narrow definition does not fit in everywhere
The definition does not give any illustration whatsoever and it is wrong to submit that the definition is illustrative
On the contrary the definition trader paragraph 3h is quite specific and points to only one class of officers that is the officers who were in the service of the Bank immediately prior to the appointed date and to whom any of the rules as mentioned in that paragraph are applicable
In our view therefore the Probationary Trainee Officers appointed on 3031 10 1979 that is after the appointed date are not existing officers
In this connection we may notice the argument of Mr Gupta learned counsel appearing on behalf of some of the Probationary Trainee Officers that the merger of Officers Grade II and Grade I into the Junior Management Grade was only for the purpose of fitment in the higher scale of pay and not for the purpose of seniority
It has been already stated that it was the demand of the Officers  Federation representing both Officers Grade I and Officers Grade II that the distinction between these two Grades should be abolished in every
respect and ultimately it was agreed that they would be placed in one grade that is the Junior Management Grade having a higher scale of pay subject to this that the Officers Grade I will be above the Officers Grade II in the seniority list
It appears from the Circular No 9 issued by the Officers  Federation that the Pillai Committee s recommendations would be implemented in the State Bank Group from October 1 1979
Thus it was agreed by the Officers  Federation that a scheme namely the merger of Officers Grade I and Officers Grade II into 130 Junior Management Grade would take place with effect from October 1 1979 and that has been exactly given effect to by the Order under which the existing Officers that is the officers who were in the employment of the Bank immediately prior to October 1 1979 would be placed in the new Junior Management Grade and to Scale I as contained in Schedule I to the Order
In paragraph 21 of the Order provision has been made for the application of the Order to other offi cers
Thus it is clear that all the officers of the Bank in the lower level before the Probationary or Trainee Officers were appointed on 3031 10 1979 agreed that they would merge into a new Grade and Officers Grade I would be senior to the Officers Grade II
This was the result of the recommenda tions of the Pillai Committee suggesting that there should be one grade for the Officers Grade I and II in the lower level
It may be that Pillai Committee did not make any recommendation with regard to seniority but when two grades of officers are merged into a new grade the question of inter se seniority will automatically arise and it will be the duty of the employer to fix the seniority
Indeed paragraph 18 of the Order lays down the principles for computing the seniority of the officers of the Bank
But under paragraph 185 of the Order the seniority among the existing officers will remain the same
In other words the Officers Grade I will remain seniors to Officers Grade II
Another contention that has been made by Mr Gupta for the Probationary Trainee Officers is that these officers have to undergo tests which are more stringent than the tests to be undergone by the Grade II Officers and as such the ProbationaryTrainee Officers though they were appoint ed on 3031 10 1979 should not be placed under the Officers Grade II in the seniority list
This in our opinion is an argument in despair
The question is not whether the Proba tionary Trainee Officers have to undergo more stringent tests than the tests to be undergone by the Grade II Offi cers but the question is whether the Probationary Trainee Officers are existing officers or not that is to say whether they were in the employment of the Bank immediately prior to October I 1979
As the ProbationaryTrainee Offi cers are not existing officers they cannot claim seniority over the Officers Grade II who are existing officers
It is next contended that the Bank had no authority to give retrospective operation to the Order with effect from October 1 1979 inasmuch as section 43 of the under which the Order has been passed does not authorise the Bank to pass any such Order with retrospective effect
It is now well settled that unless the 131 statute under which the rules are flamed by the rule making authority does not specifically authorise the making of rules with retrospective effect such authority cannot frame any rule with retrospective effect
See Cannanore Spinning and Weaving Mills Ltd vs Collector of Customs and Central Excise Cochin  Ors   Income Tax Officer Alleppey vs
MC Ponnoose  Ors   Hukam Chand etc
vs Union of India  Ors
  and Regional Transport Officer Chittoor  Ors
vs Associated Transport Madras P Ltd  Ors  Mr Shanti Bhushan learned counsel appearing on behalf of the State Bank of India however submits that the im pugned Order has not been made retrospective as contended on behalf of the ProbationaryTrainee Officers
All that has been done by the Order is that the Officers Grade I and Grade II have been merged into one category namely Junior Management Grade with effect from October 1 1979
These Officers were already employees of the Bank before October 1 1979 and as such they are existing officers within the meaning of paragraph 3h of the Order
Further it is submitted by him that the Bank after considering the injus tice done to the Officers Grade II numbering about 15000 sought to remove the same by abolishing the distinction between Officers Grade I and Officers Grade II in terms of the recommendations of the Pillai Committee by the impugned Order with effect from October 1 1979
It may be that there was some delay in publishing the decision of the Bank that is the Order but it cannot be said that the Order is retrospective in operation
Mr Shanti Bhushan points out that in VT Khanzode  Ors
vs Reserve Bank of India  Anr this Court upheld the decision of the Reserve Bank of India as regards the introduction of common seniority inter group and mobility amongst different grades of officers belonging to Group I Group II and Group III with retrospective effect from May 22 1974
In that case officers belonging to Group I urged that the scheme should be brought into effect from January 1 1976 while those belonging to Groups II and III wanted the scheme to be brought into effect from January 1 1970
The Central Board of the Reserve Bank struck a balance by choosing the date May 22 1974
Chandrachud CJ delivering the judgment of the Court held that it was the best solution in the peculiar circumstances of the case and that in order to rectify the imbalances and anomalies caused by the compartmental wise and group wise seniority it was necessary to give retrospective effect to the combined seniority list
Further it has been 132 observed by the learned Chief Justice that no scheme govern ing service matter can be fool proof and some section or the other of employees is bound to feel aggrieved on the score of its expectations being falsified or remaining to be fulfilled
Mr Shanti Bhushan has also placed reliance upon the observation of Sabyasachi Mukharji J in Reserve Bank of India vs CN Sahasranaman 1986 Suppl
SCC 143
It has been observed by Mukharji J that whether there has been denial of equality or any constitutional right infringed or not cannot be published where interests of large number of people are concerned in judged the abstract
Further it has been observed that in service jurisprudence there cannot be any service rule which would satisfy each and every employee and its constitutionality has to be judged by considering whether it is fair reasonable and does justice to the majority of the employees
Relying upon the above two decisions of this Court it is submitted on behalf of the State Bank of India that in the instant case also a large number of employees particu larly the Officers Grade II numbering about 15000 have been benefitted
Indeed justice has been done to these 15000 employees as agreed to by the Officers  Federation of the Bank comprising both Officers Grade I and Officers Grade II
Counsel submits that existing officers have been given the benefit of the Junior Management Grade Scale I with effect from 1101979
So the Order was also given effect to from that date which is the appointed date
It is sub mitted that the Order has been given effect to from 1 10 1979 in the interest of a large number of employees of the Bank
The ProbationaryTrainee Officers who are only 900 in number and appointed on 3031 10 1979 have no locus standi to challenge the Order or the merger of Officers Grade I and Officers Grade II in one cadre namely Junior Management Grade as per the recommendations of the Pillai Committee
It is not disputed that negotiations had been going on between the Bank and the Officers  Federation as to how and in what manner the recommendations of the Pillai Committee accepted by the Government would be given effect to
Ulti mately it was decided that the recommendations would be given effect to from 1 10 1979 by merging the two categories of officers who were in the employment of the Bank immedi ately prior to 1 10 1979 into one category namely the Junior Management Grade
Although the Order was actually published on December 19 1979 the officers of the Bank who were there on or before October 1 1979 were aware of the fact that the Order would be given effect to from Octo ber 1 1979 as agreed to between 133 the Bank and the Officer s Federation
The appointed date is relevant for the purpose of applicability of the Order to the officers who had been there in the service of the Bank immediately prior to the appointed date
Mr Soli Sorabjee learned counsel appearing on behalf of the petitioners in the Special Leave Petition No 337 1 of 1982 has drawn our attention to a telex message which has been communicated to all the petitioners instructing them to complete their formalities and to join the duty well before October 31 1979 in their own interest
Telegrams were also sent to the petitioners to the following effect Reference to your selection as Probationary Officer and our communications to you for immediate completion of necessary formalities
We reiterate that the Pillai Committee s recommendations are likely to be implemented shortly
If you join after implementation thereof you shall be governed by the revised terms of service and salary scales
You are advised in your own interest to complete the remaining formalities viz 1 acceptance of our offer by 20th October 1979 and be ready to join duty around 25th idem at the place to be intimated to you after completion of for malities failing which the risk of change in the salary structure and other conditions will be yours
 From the telex and telegraph messages it is contended that they show that the Bank had decided to give effect to the Order with effect from 3031 10 1979
We are unable to accept this contention
There is no indication in the telex or telegram that the Order will be given effect to from October 3031 1979
The telegram really mentions that if the petitioners join after implementation of the recommenda tions of the Pillai Committee they will be governed by the revised terms of service and salary scales
Indeed it has been already noticed that after the appointment of the ProbationaryTrainee Officers on 3031 10 1979 they were fitted to the Junior Management Grade Scale I and given a higher start at Rs960 pm
The telex and the telegram to which our attention has been drawn do not seem to be of any consequence to the ProbationaryTrainee Officers and does not at all support their contention that the Order was intended to be given effect to from 3031 10 1979
It is next contended by the learned counsel
appearing on behalf of the ProbationaryTrainee Officers that the impugned Order takes 134 away the vested fight of seniority of the ProbationaryTrainee Officers with retrospective effect
In elaboration of the contention it is pointed out that on the day these ProbationaryTrainee Officers were appointed namely on October 3031 10 1979 they were admittedly seniors to the Officers Grade II
This seniority of the ProbationaryTrainee Officers has been taken away by giving retrospective operation to the Order
It is submitted that the Bank has no authority to take away the vested right of seniority of the ProbationaryTrainee Officers with retro spective effect
On the other hand it is contended by Mr Shanti Bhushan learned counsel appearing on behalf of the State Bank of India that there is no question of vested right to seniority
Seniority is relevant only for the purpose of promotion
A right to be considered for promotion is a vested right but a mere chance of promotion is not such a right
It is submitted that the right of the Proba tionaryTrainee Officers to be considered for promotion has not been affected in the least by the Order nor have their chances of promotion been affected
Moreover no order has been passed under paragraph 21 of the Order applying the same to the ProbationaryTrainee Officers
These Officers are outside the purview of the Junior Management Grade and as such they are precluded from challenging the seniority of the erstwhile Officers Grade II now placed in a com pletely different category
In other words it is the con tention of the State Bank of India that the ProbationaryTrainee Officers who have been appointed on 3031 10 1979 as Officers Grade I cannot challenge any benefit that is conferred on the officers of a different cadre namely the Junior Management Grade
It is not necessary for us to decide whether there is any vested right to seniority or not
The ProbationaryTrainee Officers have not been brought within the purview of the new cadre that is the Junior Management Grade
Indeed it is the complaint of the learned counsel appearing on behalf of these Officers that they have been totally ignored by the Order inasmuch as no provision has been made about them in the Order
We have already noticed that it was the contention of the Officers  Federation that there should not be any distinction in the status of Offi cers Grade I and Officers Grade II
It was urged that such distinction should be abolished and both these categories of officers should be placed in one category so that they have the same status and position
The State Bank of India ac cepted the demand of the Officers  Federation and the dis tinction has been removed
In these circumstances it is apparent that the Probationary Trainee Officers being Officers Grade I are of the same status and position as the Officers Grade II
Admittedly the erstwhile Officers 135 Grade II were appointed much earlier than the ProbationaryTrainee Officers who were the writ petitioners in the High Courts
Although they had to perform almost the same duty and there was no difference between their posi tions they had to suffer an artificial distinction and placed below the Officers Grade I who were considered to be superior in rank to the Officers Grade II
After the Bank had decided that both these two categories of officers were same in status and position and such decision having been implemented we are afraid it is difficult to accept the contention made on behalf of the ProbationaryTrainee Offi cers that they should be considered senior to the erstwhile Officers Grade II
Moreover there is some force in the contention made on behalf of the Bank that as the ProbationaryTrainee Officers are not in the Junior Management Grade which is a different cadre they have no locus standi to challenge any benefit conferred on the officers of the Junior Management Grade comprising erstwhile Officers Grade I and Officers Grade II as were in the employment of the Bank prior to October 1 1979
It is submitted by Mr Shanti Bhushan that the Proba tionary Trainee Officers with whom we are concerned have not been prejudiced in the least by the Order having come into force on and from October 1 1979
The learned counsel has categorically stated before us that all these officers will be included in the Junior Management Grade and an order in that regard will be passed under paragraph 21 of the Order
It is pointed out by him that everybody will be considered for promotion from the Junior Management Grade to the Middle Management Grade
Thus even though the Proba tionaryTrainee Officers are placed below the erstwhile Officers Grade II they will be allowed to appear at the written test one of the modes prescribed for promotion along with others including the erstwhile Officers Grade II provided they complete six years of service in Grade I Apart from this the ProbationaryTrainee Officers have been fitted to the higher scale of pay in the Scale I of the Junior Management Grade although they have not been formal ly included in that Grade
In these circumstances it cannot be said that the ProbationaryTrainee Officers have been prejudiced by the Order
We are sure that the Bank will take immediate steps for applying the order to the ProbationaryTrainee Officers
No other point has been urged on behalf of the parties
For the reasons aforesaid the judgment of the Allahabad High Court is set aside and the Civil Appeals are allowed
The judgment of 136 the Delhi High Court is affirmed and the Special Leave Petition is dismissed
All the Writ Petitions filed by the ProbationaryTrainee Officers are also dismissed
There will however be no order as to costs in any of these Appeals or in the Special Leave Petition
PSS Appeals allowed  Petition dismissed


Summary:
Consequent to an agreement between the Executive Commit tee of the Central Board of the appellant Bank and its Officers  Federation in pursuance of the Pillai Committee Report the Grade I and Grade II Officers discharging mana gerial and supervisory functions were merged into the new Junior Management Grade
It was agreed that Officers of Grade II would be junior to the existing officers of Grade I and the seniority list would be prepared accordingly
There after in exercise of powers conferred by sub section
1 of section 43 of the the State Bank of India Officers  Determination of Terms and Conditions of Service Order 1979 was made and brought into force with effect from October 1 1979
Paragraph 21 of that Order provided that it shah apply to the existing officers of the Bank and to such employees of the Bank to whom it may be made applicable
Under paragraph 3h the expression exist ing officers was defined to mean officers in the service of the Bank immediately prior in the appointed date ie October 1 1979
Paragraph 7 provided for the placement of existing officers on the appointed date in the corresponding new grades and scales
Paragraph 81 provided for fitment of existing officers in the new grades and scales of pay in accordance with paragraph 7 at a stage corresponding to the existing grade and scale
Under paragraph 185 the seniori ty among the existing officers was to 116 remain the same ie the Officers Grade I were to rank senior to Officers Grade II
Certain ProbationaryTrainee Officers who were appoint ed by the Bank in Grade I on October 3031 1979 before the Order was made on December 19 1979 flied writ petitions before the Allahabad High Court and some others before the Delhi High Court claiming seniority over the erstwhile Grade II Officers in which it was contended for the Bank that since the petitioners were not the employees of the Bank on October 1 1979 ie the appointed date they could not be given seniority over the erstwhile Grade II Officers who were the existing officers  within the mean ing of the expression under paragraph 3h of the Order
The Allahabad High Court took the view that the expres sion existing officers  has to be read as including the Probationary Officers and Trainee Officers otherwise a repugnancy between the definition of existing officers  and the provisions of paragraph 7 and 8 of the Order will arise that the notional date of the coming into force of the Order viz October 1 1979 is only to protect the emolu ments of the officers and nothing else and directed the Bank to prepare the seniority list of its officers accord ingly
The Delhi High Court however took a contrary view and dismissed the writ petitions
In these appeals by the Bank against the decision of the Allahabad High Court and Special Leave Petition by the ProbationaryTrainee Officers against the decision of the Delhi High Court it was submitted for the ProbationaryTrainee Officers in support of their contention that they should be considered as existing officers  within the meaning of paragraph 3h of the Order that the Bank itself had treated them as existing officers  by fitting them to the Junior Management Grade and giving them a higher start of Rs960 pm that such fitment had been made by the Bank following the principles laid down in paragraphs 7 and 8 of the Order that unless the expression existing offi cers  is read as including ProbationaryTrainee Officers  three will be a repugnancy between the definition of exist ing officers  as contained in paragraph 3h and the provi sions of the paragraphs 7 and 8 of the Order that the definition of existing officers  is only illustrative and not exhaustive that the merger of officers of Grade II and Grade I into the Junior Management Grade was only for the purpose of fitment in the higher scale of pay and not for the purpose of seniority that they have to undergo tests which were more stringent than the tests to be undergone by Grade II Officers and as such ProbationaryTrainee 117 Officers could not be placed under Officers Grade II in the seniority list and that the Bank had no authority to give retrospective operation to the Order with effect from Octo ber 1 1979 inasmuch as section 43 of the Act under which the Order has been passed did not authorise the Bank to pass any such Order with retrospective effect
For the Bank it was contended that the order had not been made retrospective that all that has been done was that the Officers Grade I and Grade II who were in the employment of the Bank immediately before October 1 1979 have been merged into one category namely Junior Manage ment Grade in terms of the recommendations of the Pillai Committee that these Officers were already employees of the Bank before October 1 1979 and as such they were existing officers  within the meaning of paragraph 3h of the Order that the ProbationaryTrainee Officers who were appointed on 30th31st October 1979 had no locus standi to challenge the Order or the merger of Officers Grade I and Grade II and that as no order has been passed under paragraph 21 of the Order applying the same to the Probationary Trainee Offi cers they were outside the purview of the Junior Management Grade and as such were precluded from challenging the seniority of the erstwhile Officers of Grade II
Allowing the appeals and dismissing the special leave petition this Court
HELD 1
The expression existing officers  as defined in paragraph 3h of the State Bank of India Officers  Determination of Terms and Conditions of Service Order 1979 means officers in the service of the Bank immediately prior to the appointed date ie October 1 1979
The ProbationaryTrainee Officers who were appointed by the Bank on 3031st October 1979 after the appointed date could not therefore be held to be existing officers  within the meaning of paragraph 3h of the Order
128B F 2
It is incorrect to say that when an employee is fitted to a particular scale of pay of another cadre he does not become a member of that cadre
In the instant case the ProbationaryTrainee Officers were placed in the corre sponding scales of pay in the Junior Management Grade for the purpose of fitment in the new scales of pay
It may be that such fitment has been made by the Bank following the principles as laid down in paragraphs 7 and 8 of the Order presumably with a view to removing any disparity between Officers Grade I and Officers Grade II in the Junior Manage ment Grade but it cannot be said that they were treated as existing officers and such fitment was made under 118 paragraphs 7 and 8 of the Order
The ProbationaryTrainee Officers were not in the service of the Bank immediately prior to the appointed date
As such the Bank could not treat them as existing officers for the purpose of fitment or giving a higher scale of pay
128D F B 31 Repugnancy of the definition of any term my arise only if such definition does not agree with the subject or context of a particular provision
But any action not in conformity with the provision of the definition clause will not render the definition of a term repugnant to the subject or context of any provision of the statute containing that term
129BC 32 In the instant case there is no ambiguity in the definition of existing officers  as given in paragraph 3h of the Order nor is it in any way repugnant to the subject or context of paragraphs 7 and 8
If the Probation aryTrainee Officers are treated as existing officers  it would be doing violence to the provision of paragraph 3h
129B A 4
The definition of existing officers  in paragraph 3h does not give any illustration whatsoever
On the contrary it is quite specific and points to only one class of officers who were in the service of the Bank immediately prior to the appointed date and to whom any of the rules as mentioned in that paragraph were applicable
129D 5
All the officers of the Bank at the lower level before the Probationary or Trainee Officers were appointed on 3031 October 1979 had agreed that they would merge into a new grade and Officers Grade I would be senior to the Officers Grade ii
When two grades of officers are merged into a new grade the question of inter se seniority automatically arises and casts a duty on the employer to fix the seniori ty
Paragraph 185 of the Order lays down that the seniori ty among the existing officers will remain the same that b the Officers Grade I will remain senior to Officers Grade II
Therefore it cannot be said that the merger was only for the purpose of fitment in the higher scale and not for purposes of seniority
130B D 129F 6
The question is not whether the ProbationaryTrainee Officers have to undergo more stringent tests than the tests to be undergone by Grade H Officers but whether the ProbationaryTrainee Officers were existing officers or not that is to say whether they were in the employment of the Bank immediately prior to October 1 1979
As they were not existing officers they could not claim seniority over the Officers of Grade II
130FG 119 71 Unless the statute under which the rules are framed by the rule making authority does not specifically autho rise the making of rules with retrospective effect such authority cannot frame any role with retrospective effect
130H 131A Cannanore Spinning and Weaving Mills Ltd vs Collector of Customs and Central Excise Cochin  Ors
   Income Tax Officer Alleppey vs MC Ponnoose  Ors   Hukam Chand etc
vs Union of India  Ors
  and Regional Transport Officer Chittoor  Ors
vs Associated Transport Madras P Ltd  Ors   referred to
72 In the instant case it cannot be said that the Order was retrospective in operation
All that has been done by it is that the Officers Grade I and Grade II in the em ployment of the Bank immediately prior to October 1 1979 have been merged into one category namely Junior Manage ment Grade
Although the Order was actually published on December 19 1979 the Officers of the Bank who were there on or before October 1 1979 were aware of the fact that the Order would be given effect to from October 1 1979 as agreed to between the Bank and the Officers  Federation
The appointed date is relevant for the purpose of applicability of the Order to the Officers who have been there in the service of the Bank immediately prior to the appointed date
131E C 132G 133A VT Khanzode  Ors
vs Reserve Bank of India  Anr and Reserve Bank of India vs CN Sahasra naman 1986 Suppl
SCC 143 referred to
The distinction in the status of Officers Grade I and Grade II having been abolished in the instant case it is apparent that the ProbationaryTrainee Officers being Offi cers of Grade I were of the same status and position as the Officers of Grade II
Admittedly the erstwhile Officers of Grade H were appointed much earlier than the ProbationaryTrainee Officers
They cannot therefore be considered senior to the erstwhile Officers Grade II
134G 135AB 9
The ProbationaryTrainee Officers have not been brought within the purview of the new cadre viz the Junior Management Grade since no order has been passed under paragraph 21 of the Order applying the same to them
As they are not in the Junior Management Grade which is a completely different cadre they have no locus standi to challenge any benefit conferred on the Officers of the 120 Junior Management Grade comprising erstwhile Officers Grade I and Officers Grade II as were in the employment of the Bank prior to October 1 1979
134F CD 135C