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2007 Supreme(SC) 1221

2007(8) Supreme 728
Supreme Court of india
(From Allahabad High Court)
S.B. Sinha & H.S. Bedi, JJ.
Aryavrat Gramin Bank — Petitioner
versus
Vijay Shankar Shukla — Respondent
C.M.W.P. Nos. 34881 of 1993
Decided on : 20-09-2007

Counsel for the Parties :
For the Appellant :Ramesh Singh, Ms. Akanksha, Ms. Swigin, Ms. Neha, Ms. Bina Gupta and Ms. Nina Gupta, Advocates.
For the Respondent:Parmod Swarup and Goodwill Indeevar, Advocates.

Important Points
Only because a person has been selected and his name finds place in the select list, the same by itself does not confer any legal right on him to be appointed.
Ordinarily a Superior Court, in exercise of its power of judicial review, would not interfere with the right to make appointment by an employer.

Headnote:Service Law – Appointment – Empanelled person, right of – Only because a person has been selected and his name finds place in the select list, the same by itself does not confer any legal right on him to be appointed. (Para 21)

       Service Law – Appointment – Right of employer – Power of court to interfere – Scope – Ordinarily a Superior Court in exercise of its power of judicial review would not interfere with the right to make appointment by an employer unless its action or inaction is found to be wholly arbitrary so as to offend Article 14 of the Constitution of India. (Para 21)

       Service Law – Appointment – Interference by High Court – Proprieity – Respondent’s name appeared at no. 47 in panel prepared by appellant for recruitment – Appellant appointed a few persons from the panel even after the life of panel had expired hoping that it would get permission from NABARD for extending life of panel which was refused – Respondent approached High Court which issued mandamus for appointing respondent – Challenge Held, the same by itself did not confer any legal right on the respondent to seek for issuance of a Writ of mandamus – Nor did it confer an jurisdiction on the High Court to issue the said writ. (Para 27)

       Service Law – Appointment – Judicial intervention seeking Delay and laches – Effect – Respondent’s name appeared at No. 47 in the panel prepared by appellant for the post of officers – Life of a panel expired in since 1986 – Appellant appointed a few persons from the panel even after that – Respondent approached High Court in September, 1993 – High directed appellant to give appointment to respondent – Challenged – Held, High Court committed a serious error. (Para 8)

       Facts of the Case :

       Respondent herein applied for the post of office in the appellant Bank pursuant to an advertisement made on 21.8.1984. Appellant Bank is sponsored by Bank of India and its functions are under the control of National Bank for Agriculture and Rural Development (NABARD) as also Central Government. On 6.2.1984, NABARD issued a circular in terms where 33% of staff had been said to have been promoted to the post of officer. NABARD also issued a circular on 31.12.1984, which, inter alia, provided for 50% of officers vacancies to be filled by promotion and remaining 50% by direct recruitment. The appellant Bank also issued a circular dated 16.2.1985 to the same effect. However, in the advertisement dated 21.8.1984, the exact number of vacancies to be filled up by direct recruitment had not been mentioned.

       Written test and interviews or filling up said posts were undertaken in April 1985. In the meantime, promotees had filed a Writ Petition No. 5829/1985 before Allahabad High Court, inter alia, questioning recruitment process undertaken by direct recruits wherein interior order dated 14.5.2005 (sic) was passed directing respondent (sic) not to fill up the posts of officers contrary to quota reserved for promotees as contemplated by clause (20) of the Administrative instructions dated 6.2.1984 as referred to herein before. The said interim order was clarified by an order dated 28.2.1985 permitting appellant to make appointment in proportion to quota of direct recruits.

       A select list was published by Appellant Bank on 23.6.1985, in which Respondent occupied 47th position in the list for general candidates. Out of this list 26 posts were filled up. Life of panel was only one year. The appellant Bank requested NABARD to extend life of panel but the same was declined by NABARD letter dated 19.12.1986.

       However, Bank in the meantime, Appellant had appointed a few candidates in the new 50% quota after one year.

       Respondent filed a WP No. 34881/1993 before the High Court of Allahabad, praying, inter alia, for issue of a writ of mandamus to appellant Bank to appoint him to officer’s cadre.

       High Court after considering the case put up by respective parties, issued a writ of mandamus to appoint respondent on the basis of said select list.

       Hence this appeal.

       Findings of the Court :

       Respondent was not entitled to get any relief in the Writ petition for issue a writ of or in the nature of mandamus. High Court misdirected itself and committed serious error.

       Result : Appeal allowed.

JUDGMENT

S.B. Sinha, J.—

1.Respondent herein was a candidate for being appointed in the post of officer in the appellant Bank pursuant to or in furtherance of an advertisement made on 21.8.1984.

2.indisputably, Appellant Bank is governed under the provisions of Regional Rural Bank Act, 1976 (The said Act), its sponsor Bank being bank of India. Indisputably, again its functions are under the control of National Bank for Agriculture and Rural Development (NABARD in short).

3.The rural banks in terms of the provisions of the said Act are obligance to follow the instructions issued by NABARD as also by the Central Government.

4.We may at he outset notice some office orders and circulars issued by the Central Government as also by the NABARD so as to appreciate the rival contentions raised by the parties before us.

5.On or about 6.2.1994, a Circular was issued by NABARD in terms whereof 33% staff had been said to have been promoted to the post of officer. NABARD also issued a Circular on or about 31.12.1984 which was circulated amongst all the Chairman of the Rural Regional Rural Banks, inter alia, stating as under :

“4. Officers :

50% of the vacancies of the officers are to be filled by direct recruitment in the open market and the balance 50% by promotion from amongst Field Supervisors. Promotions will be on the principle of seniority-cum-merit. The other terms and conditions are as given below :

a)Source of recruitment :

i)By Promotion — 50%

ii)By direct recruitment from open market — 50%.

b)Qualifications/Eligibility

i)For Direct Recruitment

Graduate of a recognised University. Preferance will be given to Agri/Commerce/Economics Graduates.

ii)For Promotion

Five years service as Field Supervisor.

6.To the same effect, the appellant Bank also issued a circular dated 16.2.1985. We may notice that in the aforeme4ntioned advertisement dated 21.8.1984, the exact number of vacancies which were to be filled up by reason of direct recruitment had not been specified. Written tests and interviews for filling up the said posts of officers were undertaken sometime in April, 1985. It appears that, in the meantime, the promotees had filed a writ petition before the High Court of Judicature at Allahabed which was marked as Civil Misc. Writ petition No. 5829/1985, inter alia, questioning the recruitment process undertaken by the direct recruits wherein an interim order dated 14.5.1985 was passed directing the appellant not to fill up the posts of officers contrary to the quota reserved for promotees as contemplated by Clause (20) of the Administrative Instructions dated 6.2.1984, as referred to hereinbefore.

7.The said interim order came to be clarified by an order dated 2.8.1985 in terms whereof the appellant herein was given the liberty for making appointment in proportion to the quota of direct recruits or also the promotees.

8.A select list was published by he appellant Bank on 23.6.1985. Respondent herein who was a general category candidate and whose roll number was 2405 occupied the 47th position in the category of the general candidates. It is also not in dispute that out of the 35 vacancies which were sought to be filled up b direct recruits, 26 posts were filled up from amongst general category candidates, seven from the scheduled castes candidates and two from the scheduled tribes candidates.

9.Appellant has contented before the High Court as also before us that the life of the panel was only one year which was fixed by reason of a circular dated 30.9.1980 issued by the Ministry of Finance which was reiterated in circular dated 19.9.1983.

10.Appellant Bank herein filed an application for extension of the life of the said panel, which was otherwise expiring in June, 1986 upto December, 1986, but the same was declined by the NABARD in terms of a letter dated 19.12.1986 stating as under :

“.....Please refer to your letter No. HO/PERS/11/6218 dated 1st October, 1986 on the above subject. We observe therefrom that your existing staff






























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