IMPORTANT POINTS
Article 16(4A) empowers the State to make provisions for reservation in promotion also, in favour of SC/ST to give the benefit of accelerated promotion and consequential seniority as well.
Article 16(4) and (4A) being enabling provisions power to make such provision lies with the State. Courts cannot direct State to necessarily make such a provision. Only when such a provision is made by State, a right shall accrue in favour of SC/ST candidates and not otherwise.
SC/ST employees cannot be denied reservation in promotion upto Scale-VI.

Headnote:(a) Constitution of India – Article 16(4A) – State now empowered to make provisions for reservation in promotion also, in favour of SC/ST – By subsequent amendment with retrospective effect such SC/ST candidates who get the benefit of accelerated promotion are provided consequential seniority as well. (Para 8)
       (1992) Supp 3 SCC 217; (1995) 6 SCC 684; (2006) 8 SCC 212 – Referred
       (b) Constitution of India – Articles 15 and 16 – Articles 15 and 16 empower State to take affirmative action in favour of SC/ST in matters of reservation – Such reservation can be made in promotions also – Article 16(4) and (4A) are only enabling provisions – Power to make such provision lies with the State – Courts cannot direct State to necessarily make such a provision – Only when such a provision is made by State, a right shall accrue in favour of SC/ST candidates and not otherwise. (Para 24)
       (1995) 3 SCC 532; (2009) 3 SCC 323; (2013) 10 SCC 308; (2014) 8 SCC 872 – Referred
       © Constitution of India – Article 16(4A) – OM dated 1.11.1990 and dated 13-08-1997 – OM dated 1.11.1990 making only a concession and not reservation – OM dated 13-08-1997 only continued existing provision relating to reservation in promotion beyond 15-11-1997 – This OM also did not make any new provision for reservation in promotion in favour of SC/ST employees – There is nothing in the two Oms making reservation in promotion within Group-A posts upto the ultimate salary of Rs. 5,700/- per month. (Para 27, 31, 32)
       (d) Service law – Banking law – Promotion – Reservation – OM dated 01-11-1990 – There is no reservation in promotion by selection within only those Group-A posts which carry an ultimate salary of Rs. 5,700/- per month (Scale VII) – In such cases only concession is applicable – It follows that reservation would be available in promotion by selection for the posts with ultimate salary of less than 5700/- per month (upto Scale VI) – SC/ST employees cannot be denied reservation in promotion upto Scale-VI. (Para 34, 35)
       Facts of the case:
       The issue arising in these appeals relates to the rule of reservation of the Scheduled Castes (SC) and Scheduled Tribes (ST) in the promotion in the officer grade/scale in the appellant Banks.
       The question to be answered is as to whether there is any reservation in the promotions from one officer grade/scale to another grade/scale, when such promotions are made on selection basis.
       The position taken by the Banks is that there is no rule of reservation for promotions and the candidature of these officers belonging to these categories for promotion is to be considered on the basis of relaxed standards. The respondents, who are SC/ST Employees' Unions of the appellant Banks or individuals belonging to such categories, dispute the aforesaid stand taken by the Banks. According to them, the circular issued by the Central Government expressly provides for such a reservation.
       As per the promotion policy of the Banks, incorporating the reservation policy framed by the Central Government in respect of candidates belonging to SC/ST category, the banks are according 15% reservation for SC and 7.5% reservation for ST candidates. It is done at the initial level of recruitment and also for promotion in the clerical cadre. Such a reservation is also provided for promotion from clerical grade to the lowest rank in the officers grade which is commonly known as Junior Management Grade Scale-I (Scale-I). However, when it comes to promotion from Scale-I to the next scale, which is known as Middle Management Grade Scale-II (Scale-II), the Banks have not been making any reservations while carrying out these promotions. As per the Banks, it is because of Office Memorandum No. 38012/6/83-East(SCT) dated 01-11-1990 issued by the Ministry of Personnel, Public Grievance and Pensions (Department of Personnel and Training), Government of India clearly stating that there is no reservation within Group 'A' posts.
       Finding of the Court:
       SC/ST employees cannot be denied reservation in promotion upto Scale-VI.
       Result: Appeals allowed partly.

Judgment

A.K. SIKRI, J.

Leave granted. Impleadment and intervention applications are allowed.

2) The issue which arises for consideration in these appeals lies within a narrow campus and is crisp one, though at the same time it is of seminal importance for the parties before us. It relates to the rule of reservation of the Scheduled Castes (SC) and Scheduled Tribes (ST) in the promotion in the officer grade/scale in the appellant Banks. There is no dispute that the appellant Banks, which are statutory/public sector banks, are following the applicable guidelines of the Central Government pertaining to reservation of SC and ST employees insofar as their promotion from clerical grade to officer grade is concerned. The question to be answered is as to whether there is any reservation in the promotions from one officer grade/scale to another grade/scale, when such promotions are made on selection basis. As per the appellant Banks, there is no rule of reservation for promotion in the Class A (Class-I) to the posts/scales having basic salary of more than Rs. 5,700/- and in the relevant instructions, issued in the form of Office Memoranda, only a concession is provided in the manner officers belonging to SC/ST category are to be considered for promotion. To put it otherwise, the position taken by the Banks is that there is no rule of reservation for promotions and the candidature of these officers belonging to these categories for promotion is to be considered on the basis of relaxed standards. The respondents, who are SC/ST Employees' Unions of the appellant Banks or individuals belonging to such categories, dispute the aforesaid stand taken by the Banks. According to them, the circular issued by the Central Government expressly provides for such a reservation.

3) It is interesting to note that for taking their respective positions both the parties rely upon O.M. dated 13-08-1997 issued by the Central Government (which, of course, is to be read along with other connected office memoranda). Thus, outcome of these appeals would depend upon the interpretation that is to be accorded to the said Office Memorandum dated 13-08-1997. As the Banks are in appeal against the judgment of High Court of Judicature at Madras rendered on 09-12-2009 whereby number of writ appeals were disposed of, it can clearly be discerned that insofar as High Court is concerned its interpretation to the aforesaid circular has gone in favour of the SC/ST employees.

4) Before we revert to the fulcrum of the issue and give our answer thereto, we deem it apposite to recapitulate in brief the historical facts which have led to the present lis.

5) As already noted above, the appellant Banks, which are statutory Banks and Public Sector Undertakings, have been following the reservation policy of the Government of India as issued by the Government from time to time. For doing so, the Promotion Policy of each of such bank makes specific provision in this behalf. It is also a matter of common knowledge that Ministry of Finance, Government of India is the nodal ministry for framing policy on reservations for financial institutions/banks. To given an example, Regulation 1.1 of the promotion policy for officers of UCO Bank makes such a provision in the following manner:

“The Promotion policy for officers in the Bank has been designed in the context of the guidelines issued by the Government from time to time under the Officers Service Regulations.”

It will also be relevant to quote hereunder Regulation 22 of the aforesaid promotion policy. This Regulation makes the following reading:

“22. Concession/Relaxations etc for SC/ST, Physically Handicapped, Ex-servicemen and Other categories of officers;

22.1 The guidelines/directives/administrative instructions issued by the Government of India from time to time regarding relaxation/concession/reservation etc. for SC/ST, physically handicapped, Ex-serviceman and such other special categories of officers in the matter of scale to scale promotion

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2015 Supreme(SC) 21

Cases Referred (7)