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SUPREME COURT OF INDIA
H. L. GOKHALE AND KURIAN JOSEPH, JJ.
Panchraj Tiwari – Appellants
Versus
M. P. State Electricity Board and others – Respondents
CIVIL APPEAL NO. 4371 OF 2008
Decided On : 04-03-2014
(1982) 1 SCC 379; (1997) 8 SCC 522; (2003) 11 SCC 614 – Relied upon
Service Law – Integration / Merger – Seniority of absorbed employees – Absorbed employees are placed as junior to the junior-most officer of the category concerned in the absorbing organisation. (Para 9)
Service Law – Promotion – An employee does not have right to promotion – He has right to seniority since this forms basis of promotion – In case of an individual or a few of individuals this may be ignored – Complete denial of promotion forever would be against Articles 14 and 16. (Para 16 to 18)
(1980) 3 SCC 97; (1997) 8 SCC 522 – Relied upon
Facts of the case:
Appellant a graduate engineer started his career as junior engineer in the Rural Electricity Cooperative Society, Rewa. During 1995 a policy decision was taken by the State Government to dissolve all such societies and merge the same with Madhya Pradesh State Electricity Board. Accordingly, the Managing Committee of the Rural Electricity Cooperative Society, Rewa was superseded in May, 1995. Finally the Rural Electricity Cooperative Society, Rewa was completely merged with the MPSEB w.e.f. 15.03.2002.
The employees of the society have been taken over and absorbed in the MPSEB. However, their pay-scale on the date of absorption was protected, their designation was maintained as it was in the society at the time of absorption and the age of superannuation, pension and gratuity of such employees were to be governed by the rules/bylaws of the society concerned.
The appellant’s claim for promotion was rejected.
The High Court also held that the principles of integration cast no obligation on the Electricity Board to give promotion to the appellant. The obligation was only to absorb the appellant by protecting the designation and pay-scale and continue as such.
Finding of the Court:
The absorbed employees of the Rural Electricity Cooperative Societies, having due regard to their date of appointment/promotion in each category in the respective societies, shall be placed with effect from the date of absorption, viz., 15.03.2002 as juniors to the junior-most employee of the Electricity Board in the respective category. Thereafter, they shall be considered for further promotions as per the rules/regulations of the MPSEB. The appellant accordingly shall be entitled to retrospective promotions at par with and with effect from the dates on which the junior-most graduate engineer in the parent service on the date of absorption obtained such promotions.
JUDGMENT
KURIAN, J.:
1. Whether on integration/merger/amalgamation, is it permissible to have complete denial of promotion forever in the integrated service, is the short question arising for consideration in this case.
2. Appellant a graduate started his career as junior engineer on 23.09.1986 in the Rural Electricity Cooperative Society, Rewa. During 1995, it appears a policy decision was taken by the State Government to dissolve all such societies and merge the same with Madhya Pradesh State Electricity Board (hereinafter referred to as ‘MPSEB’). Accordingly, the Managing Committee of the Rural Electricity Cooperative Society, Rewa was superseded in May, 1995 and a Superintending Engineer of the MPSEB was appointed as Officer In-charge. However, it took a few years to complete the formalities of the merger. Finally the Rural Electricity Cooperative Society, Rewa was completely merged with the MPSEB w.e.f. 15.03.2002.
3. The principles of merger were clarified by the MPSEB after prolonged correspondence as per Annexure P-12 dated 15.06.2004. For the purpose of ready reference, we shall extract the contents:
“Please refer to this office order cited under reference. It is requested to issue necessary orders for absorption of employees of REC societies falling under your area of jurisdiction on the same terms & conditions of the societies. The terms & conditions of the societies may be obtained from DE (STC), Jabalpur.
Further other terms & conditions of which employees can be absorbed:-
1. The regular employees of the above societies shall be taken over on the same terms & conditions as existing in the Society except that no deputation allowance shall be paid.
2. Their pay scale will be the same which they were getting before the absorption.
3. The above employees may not be transferred out of the circle concerned, so that no anomaly arises.
4. Their age of superannuation will be the same as applicable in the societies.
5. Pension/gratuity will be payable to the employees absorbed in the Board as per the rules/regulation of the concerned society.
6. Their designation will be maintained as it was in the society.”
(Emphasis supplied)
4. The principles of absorption as extracted above would clearly show that the employees of the society have been taken over and absorbed in the MPSEB. However, their pay-scale on the date of absorption was protected, their designation was maintained as it was in the society at the time of absorption and the age of superannuation, pension and gratuity of such employees were to be governed by the rules/bylaws of the society concerned.
5. Though it may appear that there are some conditions which are normally not found in the principles of integration, the fact remains that the employees of the erstwhile society which merged with the MPSEB, have been absorbed in the service of MPSEB.
6. Integration/merger of services means creation of a homogenous service by the merger of service personnel belonging to different services. Though it is difficult to have a perfect coalescence of the services on such merger, the principle of equivalence is to be followed while absorbing the employees, to the extent possible.
7. Though integration of services thus postulates equation of posts, it is not invariably necessary to prepare the seniority list on the basis of the pay drawn by the incumbent in the equated category. It is always open to the authority concerned to adopt a just and the equitable principle on fixation of seniority.
8. Once a service is merged with another service, the merged service gets its birth in the integrated service and loses its original identity. There cannot be a situation, where even after merger, absorption or integration, such services which were merged or absorbed, still retain their original status. If so, it is not an absorption or merger or integration, it will only be a working arrangement without any functional integration.
9. In the instant case, the undisputed factual and legal position is that the
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