Judgment

S.B. SINHA, J.- Leave granted.

2. The appellant is a statutory body constituted under the Food Corporation of India Act, 1964. Its functions, inter alia, are related to procurement and distribution of food grains. It, inter alia, implements the food policy of the Government of India. The Act provides for regulation-making power. Pursuant thereto or in furtherance thereof regulations have been made laying the promotion policy of its officers known as the FCI (Staff) Regulations.

3. The respondents herein were appointed in the Engineering Section. Although Food Corporation is not an engineering-oriented organisation, services of engineers are necessary for maintenance of godowns and other structures. They constitute about one per cent of its total work force. Admittedly, the respondents were stagnated. There was no promotional avenue for them. The appellant itself had approached the Union of India for creation of promotional avenue and formulating schemes providing for assured career promotion. Admittedly, several other categories of employees filed writ applications praying for a direction upon the appellant to formulate suitable schemes of organisational structure. Indisputably, a recommendation in that behalf was also made by the Fifth Central Pay Revision Commission.

4. As the recommendations contained in the Report of the Pay Commission were not implemented, a writ petition was filed by some of the employees. In the said writ petition, a contention was raised that such a scheme had already been introduced for medical officers working in the appellant's organisation pursuant to or in furtherance of a judgment rendered by the High Court of Judicature at Andhra Pradesh. In its counter-affidavit, the appellant, inter alia, averred:

"With reference to Para 12 of the writ petition, I repeat and reiterate my submissions and statements contained in the earlier paragraphs and state that the main function of the Corporation is procurement, distribution of the food grains, with little scope for promotion of the engineers who were appointed in the Corporation to look after the skeleton work relating to godown construction and its maintenance. They have genuine cause and their grievance is being taken care by formulating scheme of selection grade scales for all the stagnating executives.

* * *

With reference to Para 2 of the writ application, I state that the Corporation's main functions are procurement/distribution of food grains. The engineers have been appointed to look after the maintenance of godowns and other buildings of FCI. As far as stagnation in FCI is concerned, it is stated that not only the Assistant Managers (Engineering) are stagnating but other employees are also facing this problem. The Corporation is trying to resolve the problem by framing its own schemes regarding upgradation of posts and creating selection grade scales in consultation with the Government of India. This proposal is already under active consideration of the Government of India and final decision of the Government is still awaited."

5. During pendency of the said writ petition, a scheme was framed for promotion to selection grade. Some of the respondents have obtained the benefits thereunder.

6. A learned Single Judge of the Calcutta High Court, upon considering the pleadings of the parties as also other materials brought on record held:

"It appears that save and except the engineers of FCI, all categories particularly the unionised employees (Group 'C') get 2 and 3 promotions, due to the availabilities of promotional opportunities in their respective cadres. These unionised people sought for implementation of ACPs Scheme for them in spite of the fact that they were not coming within the four corners of the said Scheme. It appears from letter dated 29-4-2000 that FCI entered into a memorandum of settlement with unionised employees but the petitioners are officers of Group 'B' staff. In the said memorandum of set