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2007 Supreme(SC) 594

2007(4) Supreme 246
SUPREME COURT OF INDIA
(From Orrisa High Court)
S.B. Sinha & Markandey Katju, JJ
Union of India & Ors — Petitioner
versus
Sangram Keshari Nayak — Respondent
Appeal (civil) 3691 of 2005
Decided on : 27-04-2007

IMPORTANT POINT
Unless the conditions mentioned in paragraph 2 of the circular are satisfied, recourse to sealed cover procedure provided in paragraph 6 thereof cannot be taken.

Headnote:Service Law – Sealed cover procedure – DPC recommended the case of the respondent for promotion – On the day on which the DPC held its meeting, no vigilance enquiry was pending nor any decision was taken by the employer to initiate a departmental proceeding against him – A sealed cover procedure, as per paragraph 6 of the circular, can be adopted only in the event circumstances mentioned in paragraph 2 thereof arise after the recommendation of the DPC – Thus this procedure could be adopted only if a charge sheet had been issued or a disciplinary proceeding was pending against – As a charge sheet was issued only after seven months, there was no bar in promoting the respondent at the material time as no ground existed at the material time. (Paras 10, 12 and 13) (1991) 4 SCC 109 – Relied upon. (2007) 5 SCALE 724 – Referred to. (2000) 4 SCC 394; (1993) 3 SCC 196; (1993) 3 SCC 204 – Distinguished.

       Facts of the case :

       Respondent was recruited to Indian Railway Traffic Services and later promoted to the post of Junior Administrative and subsequently placed in the selection grade. Being eligible for the post of Senior Administrative Grade, Respondent’s name was also included in the select list of the DPC. Because of a vigilance case pending against him, sealed cover procedure was adopted by the DPC purported to be in terms of the circular in question providing for the procedure and guidelines to be followed in respect of the officers who are to be promoted from Grade B to Grade A and of Railway officers against whom disciplinary / court proceedings were pending. Interpretation of this circular is the subject matter of this appeal.

       Findings of the Court :

       Paragraph 6 of the circular providing for sealed cover procedure has to be read with paragraph 2 thereof. Unless the conditions mentioned in paragraph 2 are satisfied, recourse to paragraph 6 cannot be taken.

       

Judgement Key Points

Key Points: - The sealed cover procedure can be adopted only if the circumstances in paragraph 2 arise after the DPC recommendation; otherwise, no bar to promotion (!) (!) (!) - Paragraph 6 must be read with paragraph 2; a charge-sheet issued after the DPC recommendation is necessary for applying sealed cover, and lack of such charge-sheet at material time means no bar to promotion (!) (!) (!) - In the present case, no vigilance enquiry or departmental proceeding was pending at the time of DPC meeting, and a chargesheet was issued only after seven months; thus, there was no bar to promoting the respondent during 14.01.1999 to 27.08.1999 (!) (!) (!) - The court distinguished earlier cases (K.V. Janakiraman, R.S. Sharma, etc.) and held that sealed cover could not apply unless the charge-sheet was issued by that time; reliance on those precedents was limited to their contexts (!) (!) (!) (!) - The appeal was dismissed with costs; no infirmity in the impugned judgments; promotion could be considered despite later initiation of departmental proceedings (!)

How to determine whether sealed cover procedure can be used in a promotion case when no vigilance enquiry or disciplinary action was pending at the time of DPC recommendation?

How to interpret paragraph 6 of the circular in conjunction with paragraph 2 for applying sealed cover in promotion cases?

What is the effect of issuing a charge-sheet after the DPC recommendation on the validity of promotion decisions?


JUDGMENT

S.B. SINHA, J.—

1.Interpretation of a purported circular letter dated 21.01.1993 falls for our consideration in this appeal which arises out of a judgment and order dated 31.01.2005 passed by the High Court of Orissa in Writ Petition No. 50 of 2004.

2.Before embarking upon the said question, we may, however, notice the admitted fact of the matter. Respondent was recruited to Indian Railway Traffic Services on or about 1.02.1982. He was promoted to the post of Junior Administrative Grade. He was also placed in the selection grade on 1.07.1994. The post of Senior Administrative Grade fell vacant. Respondent was eligible to be considered therefor. A Departmental Promotion Committee (DPC) was convened for preparation of a panel for promotion to the said post. Respondent’s name was also included therein. Inter alia on the premise that a vigilance case was pending against him, sealed cover procedure was adopted by the DPC purported to be in terms of the circular in question providing for the procedure and guidelines to be followed in respect of the officers who are to be promoted from Grade B to Grade A and of Railway officers against whom disciplinary / court proceedings were pending.

3.Paragraph 6 of the said Circular, which is relevant for our purpose reads, thus:

“6. A Government Servant, who is recommended for promotion by the Departmental Promotion Committee but in whose case any of the circumstances mentioned in para 2 above arise after the recommendations of the DPC are received but before he is actually promoted, will be considered as if his case had been placed in a Sealed Cover by the Departmental promotion Committee. He shall not be promoted until the conclusion of disciplinary case/ criminal proceedings and the provisions contained in this letter will be applicable in his case also.”

4.On or about 27.08.1999, one Shri G.P. Srivastava who was immediate junior to the respondent was promoted to the post of Senior Administrative Grade but only on 24.09.1999, a departmental proceeding was initiated against the respondent by issuance of a chargesheet.

5.An original application filed by the respondent before the Calcutta Bench of the Central Administrative Tribunal, which was eventually transferred to the Cuttack Bench, praying for a direction to the appellants to promote him to the said post from the date when his junior was appointed, was allowed by a judgment and order dated 19.08.2003. A writ petition filed by the appellants thereagainst has been dismissed by the High Court, by reason of the impugned judgment.

6.The Tribunal as also the High Court proceeded to determine the issue on the basis that the term “Government Servant under cloud” would be the employees against whom a chargesheet has been issued, relying on or on the basis of paragraph 2 of the said circular, the relevant portion whereof reads as under :

“2. At the time of consideration of the case of Government Servants for empanelment, details of Government Servants in the consideration zone for promotion falling under the following categories should be specifically brought to the notice of the Departmental Promotion Committee:

(i)Government Servants under suspension ;

(ii)Government Servants in respect of whom a charge sheet has been issued and the disciplinary proceedings are pending;

(iii)Government Servants in respect of whom prosecution for a criminal charge is pending”

7.In arriving at its conclusion the High Court furthermore placed strong reliance upon a judgment of this Court in Union of India and Others v. K.V. Janakiraman and Others1 [(1991) 4 SCC 109].

8.Mr. R. Mohan, learned Additional Solicitor General appearing on behalf of the appellants would contend that the circular letter received wrong interpretation at the hands of the Tribunal and/ or the High Court inasmuch as upon a proper reading thereof it would appear that a complete procedure has been laid down therein providing for the mode and manner in which the cases of those officers against whom a ch























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