Very Important Point
It is possible that by reason of merger of cadres, the chances of promotion of some of the employees may be adversely affected and some others may benefit in consequence, but this cannot be a ground for setting aside the merger which is essentially a policy decision.

Headnote:(i) Constitution of India-Article 309 Proviso-Central Labour Services Rules, 1987-Rule 9-Merger of cadres-Judicial Review-Limited as merger of cadres is essentially a policy matter. (Para 7)
(ii) Service Law-Constitution of India-Article 309 Proviso-Central Labour Services Rules, 1987-Rule 9-Merger of cadres-Promotional chances - Merged cadres carrying similar pay scales-Qualifications comparable though not identical-Duties of merged cadres-Though different but no cadre superior or inferior to other cadre-No question of unequals being treated on equals-Total number of posts proportionately increased on merger-Promotional chances of respondent-employee-Not adversely affected in view of Proviso to Rule 9-Merger may adversely affect promotion of some of the employees or may benefit some others-Not a ground to set aside merger. (Paras 15, 17, 19 & 20)

Judgment

Mrs. Sujata V. Manohar, J.-This appeal arises from a judgment and order of the Central Administrative Tribunal at New Delhi dismissing the application filed by the appellant who was at the material time, Labour Commissioner working in the Ministry of Labour. The appellant has challenged the constitution of a Central Labour Service under the Central Labour Service Rules, 1987, issued by the President in the exercise of powers conferred on him under the proviso to Article 309 of the Constitution. The Central Labour Service Rules, 1987 were brought into force by a notification dated 3.2.1987.

2. Under the notification of 3.2.1987 a Central Labour Service was created by merging the following three cadres :-

1. Central Industrial Relations Machinery consisting of Assistant Labour Commissioner (Central), Regional Labour Commissioner (Central), Deputy Chief Labour Commissioner (Central), Joint Chief Labour Commissioner (Central) and Chief Labour Commissioner (Central).

2. Labour Officers (Central pool) consisting of Labour Officers and senior Labour Officers.

3. Labour Welfare Commissioners’ Cadre consisting of Assistant Welfare Commissioner and Welfare Commissioner.

3. According to the appellant the three cadres which were so merged were having different statutory functions, different qualifications and different duties and powers. By merging the three cadres unequals have been treated as equals. The appellant and similarly placed officers belonging to the Central Industrial Relations Machinery have thereby been placed in a position much worse than the positions they occupied in their original cadres. By reason of the merger, his chances of promotion have been substantially diminished. He has, therefore, challenged the exercise of power under Article 309 of the Constitution to formulate Central Labour Service Rules, 1987. He has also challenged the merger of the three cadres on the ground that this is done in violation of Articles 14 and 16 of the Constitution.

4. Under Article 309 of the Constitution Legislature is empowered to regulate the recruitment and conditions of service of persons appointed to public services and posts in connection with the affairs of the Union or of any State. The proviso to Article 309, however, empowers the President, in the case of services and posts in connection with the affairs of the Union, to make Rules regulating the recruitment and conditions of service of persons appointed to such services and posts until provision in that behalf is made by or under an Act of the appropriate Legislature. The power to regulate recruitment and conditions of service is wide and would include the power to constitute a new cadre by merging certain existing cadres.

5. However, when different cadres are merged certain principles have to be borne in mind. These principles were enunciated in the case of State of Maharashtra & Anr. v. Chandrakant Anant Kulkarni & Ors.1 while considering the question of integration of government servants allotted to the services of the new States when the different States of India were reorganised. This Court cited with approval the principles which had been formulated for effecting integration of services of different States. These principles are: In the matter of equation of posts, (1) where there were regularly constituted similar cadres in the different integrating units the cadres will ordinarily be integrated on that basis but (2) where there were no such similar cadres, the following factors will be taken into consideration in determining the equation of posts :-

(a) Nature and duties of a post;

(b) Powers exercised by the officers holding a post the extent of territorial or other charge held or responsibilities discharged;

(d) The salary of the post.

This Court further observed that it is not open to the court to consider whether the equation of posts made by the Central Governme

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1998 Supreme(SC) 478

Very Important Point It is possible that by reason of merger of cadres, the chances of promotion of some of the employees may be adversely affected and some others may benefit in consequence, but this cannot be a ground for setting aside the merger which is essentially a policy decision.

Cases Referred (2)

Very Important Point
It is possible that by reason of merger of cadres, the chances of promotion of some of the employees may be adversely affected and some others may benefit in consequence, but this cannot be a ground for setting aside the merger which is essentially a policy decision.