Case ID: 5361

Judgment:
vil Appeal Nos. 4 125 28 of 1986. From the Judgment and Order dated 3.1. 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 22.4.1981 of the High Court of Delhi in Civil Writ Petition No. 823 of 1981. S.S. Sharma for the Appellants in C.A. Nos. 4 125 28 of 1986. Soli J. Sorabjee and Mrs. Madhu Sikri for the Petition ers in S.L.P No. 3371 of 1982. S.N. Kacker and R.B. Mehrotra for Respondent No. 1 in C.A. No. 4 125 of 1986. S.P. Gupta and R.B. Mehrotra for Respondent Nos. 2 to 26 in C.A. No. 4 125 of 1986. Shanti Bhushan and R.P. Kapur for the Respondents in S.L.P. 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 Probationary/Trainee 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 section(1) 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: "1.(1)This 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 Rs.3500 (fixed) Scale VII Rs. 3250 125 3500 Scale VI Rs.3000 125 3250 124 (B) Senior Management Grade: Scale V Rs .2500 100 3000 Scale IV A Rs.2300 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 Rs.700 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 Rs.860 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 1(2) it came into force on the first day of October	 1979. Under paragraph 2(1)	 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 3(h)	 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 2(1). 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 Probationary/Trainee Officers	 being Officers in Grade I were	 on the dates they were appointed	 superior in rank to the Officers Grade II. These Probation ary/Trainee Officers were fitted to the Junior Management Grade: Scale I	 after the Order was passed ereat 126 ing such a Grade at Rs.960 p.m. with effect from 30/31 10 1979. These Probationary/Trainee 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 Probationary/Trainee 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 3(h) 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 Probationary/Trainee 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 Probationary/Trainee 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 Probationary/Trainee Officers. Mr. Kacker	 learned counsel appearing on behalf of the Probationary/Trainee Officers	 has urged that the Allahabad High Court was justified in holding that the writ petition ers appointed as Probationary/Trainee Officers on 30/31 10 1979	 should be considered as the existing officers within the meaning of paragraph 3(h) 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 Probationary/Trainee Officers appointed on 30/31 10 1979 to the Junior Management Grade: Scale I at Rs.960 p.m. 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 8(1) 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 G.S.I 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 Probationary/Trainee 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 3(h)	 means all officers in the service of the Bank immediately prior to the appointed date. Admittedly	 the Probationary/Trainee 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 3(h) 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 Rs.960 p.m. 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 Probationary/Trainee 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 Rs.960 p.m. 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 Probationary/Trainee Officers that they were treated as existing officers and such fitment was made under paragraphs 7 'and 8 of the Order. The Probationary/Trainee Officers appointed on 30/31 10 1979	 that is	 after 1 10 1979	 the appointed date	 are not existing officers within the meaning of paragraph 3(h) 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 Probationary/Trainee Officers	 there will be a repugnancy between the definition of existing officers	 as contained in paragraph 3(h)	 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 tionary/Trainee 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 Probationary/Trainee Officers are treated as existing officers. it will be doing violence to the provisions of paragraph 3(h). We do not think that the definition of the expression "existing officers"	 as given in paragraph 3(h) 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 3(h) 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 30/31 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 2(1) 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 30/31 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 18(5) 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 Probationary/Trainee Officers	 though they were appoint ed on 30/31 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 Probationary/Trainee 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 M.C. 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 Probationary/Trainee 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 3(h) 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 15	000	 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 V.T. 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	 C.J. 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 C.N. 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 15	000	 have been benefitted. Indeed	 justice has been done to these 15	000 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 1.10.1979. 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 Probationary/Trainee Officers	 who are only 900 in number and appointed on 30/31 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 30/31 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 30/31	 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 Probationary/Trainee Officers on 30/31 10 1979	 they were fitted to the Junior Management Grade: Scale I and given a higher start at Rs.960 p.m. The telex and the telegram to which our attention has been drawn	 do not seem to be of any consequence to the Probationary/Trainee Officers and does not at all support their contention that the Order was intended to be given effect to from 30/31 10 1979. It is next contended by the learned counsel. appearing on behalf of the Probationary/Trainee Officers	 that the impugned Order takes 134 away the vested fight of seniority of the Probationary/Trainee Officers with retrospective effect. In elaboration of the contention	 it is pointed out that on the day these Probationary/Trainee Officers were appointed	 namely	 on October 30/31 10 1979	 they were admittedly seniors to the Officers Grade II. This seniority of the Probationary/Trainee 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 Probationary/Trainee 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 tionary/Trainee 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 2(1) of the Order applying the same to the Probationary/Trainee 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 Probationary/Trainee Officers	 who have been appointed on 30/31 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 Probationary/Trainee 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 Probationary/Trainee 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 Probationary/Trainee 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 Probationary/Trainee 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 2(1) 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 tionary/Trainee 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 Probationary/Trainee 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 Probationary/Trainee Officers have been prejudiced by the Order. We are sure that the Bank will take immediate steps for applying the order to the Probationary/Trainee 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 Probationary/Trainee Officers are also dismissed. There will	 however	 be no order as to costs in any of these Appeals or in the Special Leave Petition. P.S.S. 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 2(1) 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 3(h) the expression "exist ing officers" was defined to mean officers in the service of the Bank immediately prior in the appointed date	 i.e.	 October 1	 1979. Paragraph 7 provided for the placement of existing officers on the appointed date in the corresponding new grades and scales. Paragraph 8(1) 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 18(5) the seniori ty among the existing officers was to 116 remain the same	 i.e.	 the Officers Grade I were to rank senior to Officers Grade II. Certain Probationary/Trainee Officers	 who were appoint ed by the Bank in Grade I on October 30/31	 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	 i.e.	 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 3(h) 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 Probationary/Trainee Officers against the decision of the Delhi High Court	 it was submitted for the Probationary/Trainee Officers in support of their contention that they should be considered as 'existing officers ' within the meaning of paragraph 3(h) 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 Rs.960 p.m.	 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 'Probationary/Trainee Officers '	 three will be a repugnancy between the definition of 'exist ing officers '	 as contained in paragraph 3(h) 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 Probationary/Trainee 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 3(h) of the Order	 that the Probationary/Trainee Officers	 who were appointed on 30th/31st 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 2(1) 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 3(h) 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	 i.e.	 October 1	 1979. The Probationary/Trainee Officers who were appointed by the Bank on 30/31st October	 1979 after the appointed date could not	 therefore	 be held to be 'existing officers ' within the meaning of paragraph 3(h) 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 Probationary/Trainee 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 Probationary/Trainee 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] 3.1 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] 3.2 In the instant case	 there is no ambiguity in the definition of 'existing officers '	 as given in paragraph 3(h) of the Order	 nor is it in any way repugnant to the subject or context of paragraphs 7 and 8. If the Probation ary/Trainee Officers are treated as 'existing officers ' it would be doing violence to the provision of paragraph 3(h). [129B; A] 4. The definition of 'existing officers ' in paragraph 3(h) 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 30/31 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 18(5) 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 Probationary/Trainee Officers have to undergo more stringent tests than the tests to be undergone by Grade H Officers	 but whether the Probationary/Trainee 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 7.1 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 M.C. 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. 7.2 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] V.T. Khanzode & Ors. vs Reserve Bank of India & Anr.	 and Reserve Bank of India vs C.N. 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 Probationary/Trainee 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 Probationary/Trainee Officers. They cannot	 therefore	 be considered senior to the erstwhile Officers Grade II. [134G 135AB] 9. The Probationary/Trainee 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 2(1) 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]