Case: Syndicate Bank S.C.&amp; S.T.Emp.Assn Vs. The Union Of India

This petition under Article 32 of the Constitution of India has been filed by the Syndicate Bank Scheduled Castes and Scheduled Tribes Employees Association 5 representing the interest of Scheduled Castes and Scheduled Tribes Employees of the Syndicate Bank all over India as well as by three other Assistant Managers of the Syndicate Bank. The case as set up in the petition is that Group A 10 Officers posts which are Class I posts contain different grades called Junior Management Grade Scale I, Middle Management Grade Scale II, Middle Management Grade Scale III and like this upto Grade Scale VII. The criteria for promotions 15 from Junior Management Grade Scale I to Middle Management Grade Scale II and so on is based on a promotion policy dated 17th September 1985 framed in this regard by the Bank. According to the petitioners the Syndicate Bank is a 20 Nationalised Bank owned and controlled by the Central Government. All the policy decision and major internal administration are regulated and governed by and under Rules issued by the Central Government from time to time. In order to 25 implement the principles enshrined in the Constitution of India granting benefit to members belonging to Schedule Castes and Scheduled Tribes, the Central Government evolved the concept of quota system in the ratio of 15% and 30 71/2% reservation for Scheduled Castes and Scheduled Tribes respectively both at the time of recruitment as well as the time of promotions in all GovernmentIt has been further alleged by the Petitioners 35 that 14 leading banks of the country were nationalised in the year 1969 and the Government ought to have extended the said policy of reservation in the banking sector also w. e. f. 1969. However, the reservation policy was extended to 40 the banking industry initially in the year 1972, but that remained restricted in respect of appointments made by direct recruitment only. Later on by a D. O. Letter No. 10/24/74 SCT (B) dated 31st December 1977 the Central Government called 45 upon the banks to implement the reservation policy in the matter of promotional posts also. In the matter of promotions within the Officers cadre, the respondent bank did not maintain any roster and did not follow the reservation policy on an erroneous impression that the reservation in promotional cadres made through selection method is barred. The petitioners in this regard have submitted that by an Office Memorandum issued by the Home Ministry as long back as on 26th March 1970 clearly provided reservation for Scheduled Castes and Scheduled Tribes Officers for their promotion within Class I posts and also in cases of Officers who drew a basic pay of Rs. 2, 000/- per month or less. Subsequently Department of Personnel and Administrative Reforms also issued an O. M. No. 1/10/74 - Esstt (SCT) dated 23rd December 1974 to all Ministries on the same lines as contained in the earlier O. M. issued by the Ministry of Home Affairs dated 26th March, 1970. The Government of India, Ministry of Finance, Department of Economic Affairs (Banking Division) issued a Circular dated 30th May, 1981 addressed to all the 26 Nationalised Banks existing at that time in the matter of reservation for Schedule Castes and Scheduled Tribes in respect of promotion. In the aforesaid letter after making a reference to the Departments letter D. O. No. 10/24/75-SCT (B) dated 31st December, 1977, Ministry of Home Affairs O. M. No. 1/9/69-Esstt (SCT) dated 26th March 1970 and Department of Personnel and Administrative Reforms O. M. No. 1/10/74-Esstt (SCT) dated 23rd December 1974 it was stated that as per the above Government orders there is no reservation for Scheduled Castes and Scheduled Tribes in Promotion by Selection within the Officers cadre. It was further stated in the above circular that 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 was further stated that it has been decided that the concessions mentioned in Para 2 of Home Ministrys Office Memorandum dated 26th March 1970 would be available to the SC/ST Officers in Public Sector Bank/Financial Institutions in Promotions by Selections to posts within the Officers cadre upto Scale III. All the banks were requested to implement the Government instructions contained in the Office Memorandums of Ministry of Home Affairs and Department of Personnel and Administrative Reforms dated 26th March 1970 and 23rd December 1974 respectively in the existing scheme of promotions with such procedural modifications as may beThe case of petitioners further is that the Central Government wrongly and erroneously interpreted the above circulars and in taking the view that there was no reservation in the promotional posts within the officers cadre. In identical circumstances the Ministry of Steel and Mines in a letter dated April 8, 1982 addressed to the Chairman of the Steel Authority of India Limited and letter dated August 19, 1982 from the Steel Authority of India to the Chief Personnel Manager, Bokaro Steel Plan took the view that the Scheduled Castes and Scheduled Tribes personnel were not entitled to the benefit of reservation in the matter of promotion to selection posts within Group A. The Bihar State Harijan Kalyan Parishad came before this court by special leave challenging the above view taken by Steel Authority of India and the Union of India. This Court in Bihar State Harijan Kalyan Parishad v. Union of India & Ors (1985-II-LLJ-173) granted special leave. This Court held in the above case that a close perusal of the directive and in particular paragraph 9 which dealt with the concessions to employees of Scheduled Castes and Scheduled Tribes in promotions by selection method makes it abundantly clear that the rule of reservation is also applicable to promotions by selection to posts within Group A which carry on ultimate salary of Rs. 2250/- per month or less out the procedure is slightly different than the case of other posts. It was further held in the above case that while the rule of reservation applies to promotions by selection to posts within Group A carrying a salary of Rs. 2250/- per month or less, is prescribed that only those officers belonging to the Scheduled Castes and Scheduled Tribes will be considered for promotion who are senior to be within the zone of consideration. Thereafter a Select List depending upon the number of vacancies would be drawn up in which also those officers belonging to Scheduled Casts and Scheduled Tribes would be included who are not considered unfit for promotion. Their position in the Select List would be that assigned to them by the Departmental Promotion Committee on the basis of the record of service. In other words their inclusion in the Select List would not give them seniority, merely by virtue of their belonging to the Scheduled Castes and Scheduled Tribes over other officers placed above them in the Select List made by Departmental Promotion Committee. The Court thus quashed the List dated April 8, 1982 and August 19, 1982 and directed the] respondents to give effect to paragraph 9 of the Presidential directive w. e. f. the date of the directive. Subsequently a Miscellaneous Petition No. 3637/86 was also filed in view of a misunderstanding of the above Judgment by the Authorities. The Court by order dated 21st January, 1987 decided the above miscellaneous petition and made the followingwish to clarify the position by stating that the Scheduled Castes/Scheduled Tribes officers who are senior enough to be within zone of consideration for promotion should be included in the Select List against the vacancies available to the members of Scheduled Castes/Scheduled Tribes according to the rosters, provided they are not considered unfit for promotion. Paragraph 2 of the Presidential Directive should be strictly adhered to and effect shall be given on the basis of scales of pay that obtained prior to 1975 as mentioned in that paragraph. The officers promoted as a consequence of our order will be entitled to be paid salary and allowances from the respective dates with effect from which they should have beenAfter the above decision of the Supreme Court within applied in all force to the case of the present petitioners, a meeting took place between the representatives of Syndicate Bank SC/ST Employees Association and the Management of Syndicate Bank on 16th and 17th April, 1986. In the aforesaid meeting the representatives of the management were fully convinced with the stand taken by the representatives of Syndicate Bank SC and ST Employees Association and after agreeing in principle, they assured to take up the matter very strongly again with the Government of India, Ministry of Finance (Banking Division) for their approval. The petitioners thereafter made frantic efforts and also submitted representations but no relief was granted to the petitioners. It may be mentioned that Minister of State for Finance, Government of India, in his letter dated November 22, 1986 addressed to Shri Banwarilal Bairva, Member of Parliament, clearly admitted as regards the reservation for SC/ST employees in Indian Overseas Bank that he has checked up his reply to the Lok Sabha starred question No. 342 answered on 8th August, 1986 and had also got further clarifications from the Bank on the subject. It was further stated in above letter asrespect of promotions, the Bank was maintaining rosters for only such category of posts to which the reservations were being applied by the bank. Since as per the Brochure on reservations for SCs/STs are available in promotions within the officers cadre only if they are based on seniority, and the bank considered the method of promotions followed by it as one based on selection, it did not consider maintenance of rosters necessary. During the course of discussions between the officials of the bank and Banking Division, 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. The bank has accepted its mistake and has 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"It may be also mentioned that the Government of India, Ministry of Finance, Department of Economic Affairs (Banking Division), vide letter No. F. No. 10.72/86-SCT(B) dated 28th November 1986 addressed to all the nationalised banks also clarified the position in regard to reservations for SC/ST in promotions asmay be recalled that instructions were issued by the Government on 3rd May 1980 advising bank 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. The banks are, 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 is done scrupulously. The results of the review may be intimated to the Government by 15th December, 1986. While intimating the information, the methodology adopted for effecting promotions from various cadres/scales should be specifically intimated"The grievance of the petitioners is that despite the aforesaid unequivocal directions from the Government, the bank failed to make reservations for the Scheduled Castes/Scheduled Tribes employees. The petitioners made representations to the respondents in this regard in which it was reiterated that after decision of the Supreme Court in Bihar State Harijan Kalyan Parishad v. Union of India & Ors. (supra) and further order of clarification dated 21st January 1987, the petitioners were entitled to the same treatment. However, the grievances of the petitioners were not redressed and a view was taken by the authorities of the respondent/bank that there was no direction from the Government of India for prescribing reservation policy within officers cadre and that they were following the selections method of promotion in the case of OfficersThe Union of India filed a counter affidavit contesting the stand taken by the petitioners. So far as the bank is concerned they did not file any separate reply in detail but took the stand that the Syndicate Bank was a Nationalised Bank and was under the Administrative control of the Government of India, Banking Division, as such the bank is guided in the discharge of its functions by any directions issued by Banking Division, Ministry of Finance, Government of India from time to time. Reference was made to Regulation 17(1) according to which promotions to all grades of officers in the Bank were required to be made in accordance with the policy laid down by the Board from time to time having regard to the guidelines of the Government, if any. In view of these circumstances it was stated in the counter affidavit that they fully adopt all the submissions of fact and law made by the Government of India in its counter affidavit

Court's reasoning:
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 part from points for seniority, points for educational and professional qualification, points for performance in the scale and points for potential as identified in the interview have also to be assessed while making appointment by promotion. Merely because in the case of promotion from JMGS 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 upto 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 educational qualifications, performance in the scale and interview, while 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. However the rule of reservation for SCs/STs will apply to appointments made by promotion on selection basis, subject to a procedure somewhat different from usual procedure adopted in filling up posts reserved for SCs and STs on selection basis alone for appointments to be made by directWe find force in this alternative submission made by Mr. Sachar. Even though the promotional posts are based on selection method, the rule of reservation will apply to posts within Group A and the benefit of reservation policy to members of SC and ST cannot be denied on the ground that promotional posts are to be filled by method of selection. We find no distinction in the case of employees in the officers group in JMGS of the Bank from the officers falling in Group A under the Steel Authority of India Ltd., for the purpose of applying reservation policy. Government of India committed a clear mistake in not applying the principle already decided in Bihar State Harijan Kalyan Parishads case (supra) to the employees of the Syndicate Bank and in not giving a clear direction in this regard to the management of Syndicate Bank. There can be no manner; of doubt that the management of the Syndicate Bank was not at fault as they were bound by the instructions and policy laid down by the Banking Division of the Finance Ministry of the Government of India and in the absence of clear direction from the Government of India, it was not possible for them to grant relief to the SC/ST employees of the bank. As already mentioned above the Union of India had wrongly taken a contrary stand in its counter filed to the present petition, and clearly in derogation to the principle already decided in the case of Bihar State Harijan Kalyan Parishad (supra) by this Court