2007 Supreme(SC) 1351

2007(7) Supreme 98
Supreme Court of india
(From Rajasthan High Court)
S.B. Sinha & Harjit Singh Bedi, JJ.
Arjun Singh Rathore & Ors. — Petitioners
versus
B.N. Chaturvedi & Ors. — Respondents
Appeal (civil) 4840 of 2007
(Arising out of SLP(Civil) No. 21508/2005)
Decided on : 12-10-2007

important point
The vacancies should be filled under the rules which were in operation on the date when the vacancies had occurred.

Headnote:(a)Service Law – Appointment – The vacancies should be filled under the rules which were in operation on the date when the vacancies had occurred. (Para 6)

       (1997) 10 SCC 419; (1983) 3 SCC 284 – Relied upon.

       (b)Regional Rural Banks (Appointment and Promotion of Officers and others Employees) Rules, 1988 – Rules amended in 1998 – Sponsoring Bank expressly directing that posts which fell vacant prior to the publication of the amended Rules 1998 would be governed by the Old Promotion Rules, 1988 and not by the amended rules – Writ petition by respondents challenging the same dismissed but reversed in appeal by High Court – Not sustainable, set aside. (Paras 5 and 7)

       (c)Service Law – Promotion – Promotion under the Rules of 1988 had been made way back in September 2000, and complaint filed in 2005 – Result of the appellant kept in sealed cover subject to outcome of the departmental proceeding – The appellant too should be given the benefit of this judgment subject to the outcome of the disciplinary proceedings.(Para 8)

       Facts of the case:

       On 28th September 1988 the Department of Economic Affairs (Banking Division), Ministry of Finance, Government of India, after consultation with the National Bank for Agriculture and Rural Development and in exercise of the powers conferred by Section 29 of the Regional Rural Banks Act 1976 notified the Regional Rural Banks (Appointment and Promotion of Officers and others Employees) Rules, 1988 which came into force w.e.f. 28th September 1988. The second Schedule of these rules provided for the mode of appointment to different categories of officers. The appellants fell in category No.6 whereas category No.7 dealt with the appointment of Area Managers or Senior Managers by promotion of officers from category No.6 and inter-alia provided that all the vacancies were to be filled in by promotion from qualified and eligible persons working in the bank and that the mode of selection would be interview and assessment of performance reports for the preceding three years period. The Board of Directors of the respondent Kshetriya Gramin-Bank adopted the Rules in a meeting held on 26th September 1988. It is the case of the appellants that by the first of April 1999, 15 posts in all had become available for promotion under category 7 as no appointments had, in fact, been made for several years. While the vacancies still existed the Regional Rural Bank (Appointment and Promotion of Officers and other employees) Rules 1998 were framed and published in the Official Gazette on 29th July 1998. The Board of Directors of the Kshetriya Bank adopted these rules and issued a Circular dated 15th May 1999 conveying the information that the Rules of 1988 had been superseded and that henceforth the Rules of 1998 alone would form the basis for promotion etc. The Bank of Baroda which was the sponsoring Bank under the Regional Rural Banks Act of 1976 thereafter made an enquiry from the concerned quarters and on 15th October 1999 addressed a letter to the Regional Rural Banks that in view of the judgment of the Supreme Court in the case of State of Rajathan vs. R.Dayal & Ors., any post which had fallen vacant prior to the amendment of the Rules would be governed by the original rules and not by the amended rules#20; and in order to make matters more explicit repeated the directive by reiterating that the posts which fell vacant prior to the publication of the amended rules i.e. Rules 1998 would be governed by the Old Promotion Rules and not by the amended rules. A copy of the letter dated 15th October 1999 has been appended as Annexure P-1 to the appeal.

       The respondent, Kshetriya-Bank thereupon issued a circular dated 13th June 2000 directing that all the vacancies which were available as on 31st March 1998 be filled in under the Rules of 1988. 115 persons, the appellants herein, were thereafter interviewed on 18th September 2000 and were found fit for promotion and the said list was also approved by the Board of Directors and all 15 appellants were accordingly promoted to Scale-II under order dated 18th September 2000. Respondent Nos. 1 to 5 herein however preferred a joint Writ Petition No. 3641/2000 in the High Court which was dismissed by the learned Single Judge on 25th September 2002 vide judgment appended as Annexure P-2. An appeal was thereafter taken to a Division Bench which reversed the order of the Single Judge thus allowing the Writ Petition and directing that the promotions and the circulars dated 13th June 2000 and 18th September 2000 respectively be quashed and further directing the Kshetriya Bank to make the promotions of Scale-II Officers as per the Rules of 1998.

       Findings of the Court:

       High Court erred in ordering that vacancies, although existing since prior to amendment of the rules, be governed by amended rules.

       Result : Appeal allowed.