CWP No. 2744 of 2011. ::-1-:: IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH. C.W.P. No. 2744 of 2011. [O&M] Date of Decision: 4th March, 2011. Jagtar Singh & Ors. Petitioners through Mr. B.S.Walia, Advocate Versus Punjab Agro Industries Corporation Limited Respondent through Mr. Jasjit Singh, Advocate for Mr. H.S.Brar, Advocate. CORAM: HON'BLE MR. JUSTICE SURYA KANT. 1. Whether Reporters of local papers may be allowed to see the judgment? 2. To be referred to the Reporters or not? 3. Whether the judgment should be reported in the Digest? SURYA KANT, J. [ORAL] The petitioners are working as Executives [Accounts] in the respondent Corporation. They are aggrieved by the resolution dated 22.12.2010 [Annexure P-3] to the extent it pertains to direct recruit to the 10 posts of Managers [Accounts]. The petitioners also seek quashing of the consequential advertisement dated 12.01.2011 [Annexure P-4] issued by the respondent for filling-up these posts by way of direct recruitment. [2]. Recruitment to various posts in the respondent Corporation is regulated by the Punjab Agro Industries Corporation Limited Recruitment & Promotion Rules, 1991 [in short the 1991 Rules]. Rule 4 provides that the 'service' shall comprise the posts specified in Appendix 'A', whereas Rule 10 of these Rules provides the 'method of recruitment'. It would be apposite to re-produce Rules 4, 10, Appendix 'B-II' [relevant extracts only] which read as follows:- “4. Number and character of post: The service shall CWP No. 2744 of 2011. ::-2-:: comprise the posts specified in Appendix 'A'. 10. Method of recruitment:- [a] Direct: All appointments shall be made on the recommendations of the selection committee set up by the Management from time to time as per clause 7 subject to the availability of persons for the post to be filled in. [b] Departmental promotion:- Besides the direct recruitment, the vacancies shall be filled by making departmental promotions on seniority- cum-merit in different cadres. Provided that if no suitable candidate is available for appointment by promotion to the post in the service, such post shall be filled in by direct recruitment or by transfer or by deputation as the appointing authority may decided in this behalf. The qualifications/experience for appointment by transfer, deputation shall be the same as prescribed for direct recruitment. All appointments by promotion to the service shall be made by selection on the basis of seniority-cum-merit. xx xx. Appendix 'B-II' Recruitment and promotion policy for Accounts Staff:- Sr. No. Name of category Scale Qualifications for direct recruitment Direct recruitment %age Departmental promotion % age 1. Clerk-cum- Cashier 950-1800 Graduate in Commerce 100 - 2. xx xx xx xx xx 3. Executive [Accounts] Grade-I 1800-3200 Graduate in Commerce with three years experience 25 75 4. Manager [Accounts] 2200-4000 MBA Finance or Chartered Accountants 25 75 Xx Xx Xx Xx Xx xx [3]. It may be seen that while 75% posts of the Manager CWP No. 2744 of 2011. ::-3-:: [Accounts] are required to be filled-in by promotion, only 25% posts can be filled-up by direct recruitment. It would be further seen that an Executive Grade-I with minimum three years' service is eligible for promotion to the post of Manager [Accounts]. [4]. Rule 10[b] mandates that the departmental promotion shall be made on seniority-cum-merit basis and if no suitable candidate is available for appointment by promotion to the post in service, such post can be filled-in by direct recruitment or by transfer or or by deputation as the appointing authority may decide. A combined reading of the Rules ibid would leave no room to doubt that 75% of the posts of Manager [Accounts] are to be filled in by promotion from amongst the Executive Grade I having three years service and it is only if no candidate is found suitable as per the criteria of seniority-cum-merit that the posts meant for promotion can be filled up by direct recruitment or by transfer or by deputation, as may be decided by the appointing authority. [5]. The petitioners' case is that 10 posts of Manager [Accounts] have been newly created by the respondent Corporation vide the Board of Directors' resolution dated 22.12.2010 [Annexure P-3] as has also been admitted by the respondent Corporation in its reply/affidavit. All the ten posts have been decided to be filled in by 'direct recruitment' only on the basis of “one time approval for direct recruitment” said to have been granted by the Government of Punjab in a meeting held on 23.08.2010. The grievance of the petitioners is that these posts of Manager [Accounts] are cadre posts and need to be filled in by following the criteria laid down under the 1991 Rules, namely, 75% posts by promotion and only 25% posts can be filled by CWP No. 2744 of 2011. ::-4-:: direct recruitment. The petitioners assert that they are working as Executive Grade I and have served the Corporation for more than 30 years awaiting for their promotions. It is their case that they fulfill the criteria of seniority-cum-merit as well as the eligibility conditions laid down in the 1991 Rules. [6]. The Corporation on the other hand, relies upon the one- time approval granted by the State Government to fill-up the posts by 'direct recruitment'. Learned counsel for the respondent Corporation maintains that in view of the said concession accorded by the State Government and in the administrative exigencies that the 'direct recruitment' has been resorted to. [7]. Having given my thoughtful consideration to the rival contentions, I am of the considered view that the writ petition must succeed. I say so for the reason that appointment to the post of Manager [Accounts] is admittedly regulated by the 1991 Rules which inter-alia provide that 75% of the posts of Manager [Accounts] are to be filled in by promotion and 25% posts can be filled in by direct recruitment. Proviso to Rule 10[b] though enables the Corporation to resort to 'direct recruitment' if no one is found suitable, nevertheless the Corporation can not proceed with direct recruitment on the premise that the candidates to be considered for promotion are unsuitable. Suffice it to mention here that as per the stand taken by the respondent the claim of the petitioners or other eligible Executive Grade-I has not been considered at all, therefore, the respondent can not otherwise be heard to say so that the petitioners are unsuitable for promotion. [8]. For the reasons afore-stated, the writ petition is allowed; CWP No. 2744 of 2011. ::-5-:: the impugned resolution dated 22.12.2010 [Annexure P-3] and consequent advertisement dated 12.01.2011 [Annexure P-4] are hereby modified to the extent that the respondent Corporation is directed to adhere to the 1991 Rules for the purpose of filling up the posts of Manager [Accounts]. It is directed that 75% of the posts be filled up by promotion by following the criteria of seniority-cum-merit and all the eligible Executive Grade-I like the petitioners be considered as per Rules. It is only if the Executive Grade-I are found unsuitable that the Corporation would search for an alternative mode of recruitment for these posts as permissible under the Rules. In view of the fact that there is exigency to fill up the posts even as per the stand taken by the respondent Corporation, it is directed that the claim of the petitioners for promotion as Manager [Accounts] be considered within a period of two months from the date a certified copy of this order is received. [9]. Disposed of. Dasti. March 04, 2011. ( SURYA KANT ) dinesh JUDGE