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2026 Supreme(SC) 550

SUPREME COURT OF INDIA
DIPANKAR DATTA, AUGUSTINE GEORGE MASIH, JJ.
State of Odisha & Ors. – Appellants
Versus
Sreepati Ranjan Dash – Respondent
Civil Appeal No. 13121 of 2025
With
State of Odisha & Ors. – Appellants
Versus
Aditya Bhanjan Sahoo – Respondent
Civil Appeal No. 13122 of 2025
Decided On : 18-05-2026

Advocates appeared:
For the Appellant(s) : Mr. Akshay Amritanshu, AOR Mr. Sarthak Srivastava, Adv.
For the Respondent(s): Mr. Dhananjai Jain, AOR Mr. Shubhranshu Padhi, AOR

There is no vested right to promotion to selection posts. Vacancies are not required to be filled under repealed rules; instead, candidates are entitled to consideration only under the rules in force at the time of actual consideration. Previous mandates requiring adherence to old rules are overruled.

Headnote:(A) Service Law - Constitution of India - Article 309 Proviso - Recruitment and Promotion - Validity of executive instructions versus statutory rules - Overruling of earlier precedent regarding vacancy filling - There is no rule of universal application that vacancies must be filled on the basis of law existing at the time they arose - Employee does not acquire a vested right to be considered for promotion under repealed rules when the government makes a policy decision to restructure - Statute or rules framed under Article 309 prevail over conflicting executive instructions. (Paras 13, 17, 18, 25)

(B) Service Law - Selection Post - Nature of right to promotion - Promotion to selection posts is primarily based on merit and is a policy matter vesting with the employer - In absence of statutory duty, employees have no right to demand initiation of selection process under superseded instructions - Role of the judicial branch in reviewing policy decisions concerning cadre restructuring. (Paras 26, 27, 28)

(C) Appeal - Intra-court appeal - Obligation of the appellate court to consider binding precedents brought to its notice - Failure to engage with relevant legal principles renders an order summary and unsustainable - Appellate court must assess whether findings of the lower court are perverse or legally inconsistent with current law. (Paras 10, 11, 14)

Facts of the case:
Employees sought promotion to specific positions based on executive instructions from 1981, despite the government later restructuring the cadre and implementing new statutory recruitment rules in 2021. The lower courts directed the government to convene a selection committee under the old instructions, concluding that the existing vacancies were governed by those prior norms. The government challenged this, arguing that the post was a selection post, not a promotional one, and that the new rules superseded the older executive instructions.

Issues: The main issues were whether vacant posts must be filled according to the rules prevalent at the time the vacancies arose and whether employees have a vested right to be considered for promotion under superseded executive instructions.

Findings of Court:
The court held that the precedent suggesting vacancies must be filled under old rules is overruled. The government has the authority to change recruitment methods through rules framed under Article 309. Vacancies do not bestow an automatic right to promotion, and the government is not obligated to fill positions under repealed rules when cadre restructuring is intended for efficiency.

Ratio Decidendi: There is no vested right to promotion, merely a right to be considered under the rules in force at the time of consideration. Once new statutory rules are enacted, they supersede existing executive instructions. Vacancies do not necessitate adherence to outdated procedures, and the judiciary should not compel appointments contrary to the current policy of the administrative authority.

Result: Appeals allowed; impugned orders set aside.

Table of Content
1. historical factual background of recruitment and administrative restructuring. (Para 1 , 2)
2. conflicting contentions regarding appointment eligibility and authority. (Para 3 , 4 , 5)
3. application of binding precedents and overruling of rangaiah. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
4. interpretation of rule supersession and savings clauses. (Para 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24)
5. selection posts do not confer automatic promotion rights. (Para 25 , 26 , 27 , 28)
6. formal court disposal and order setting aside impugned judgements. (Para 29 , 30 , 31)

JUDGMENT

DIPANKAR DATTA, J.

THE APPEALS

1. These two appeals, by special leave, at the instance of the common appellant — State of Odisha1 [State] — are directed against the common judgment and order dated 7th November, 20252 [impugned order] passed by a Division Bench of the High Court of Orissa3 [High Court], dismissing two intra-court appeals4 [W.A. No.658 of 2023 and W.A. No.744 of 2023] that the State had carried from final orders dated 24th February, 2023 and 28th February, 2023 of a Single Judge allowing the writ petitions5 [W.P.(C) No.35645 of 2021 and W.P.(C) No.41042 of 2021] of the two respondents before this Court, viz. Sreepati Ranjan Dash6 [Dash] and Aditya Bhanjan Sahoo7[Sahoo], finding no infirmity therein.

FACTUAL MATRIX

2. The basic facts giving rise to the impugned orders, though uncontested, have a history of their own. To the extent germane for disposal of the present appeals, the same are adverted to briefly hereafter.

a. On 17th November 1981, the Commerce & Transport (Transport) Department, Government of Odisha issued an executive instruction (bearing No.17315) 8[Executive Instructions] for recruitment to/filling up 4 posts of Assistant Regional Transport Officer for Sambalpur, Koraput, Sundargarh and Mayurbhanj regions. The post, which was a gazetted post, had been created for collection and assessment of Motor Vehicle Tax and Passenger Tax. This instruction was to the Transport Commissioner, Orissa, and declaring him as the authority competent to make appointments on such post. For promotion to the post of Assistant Regional Transport Officer, a Grade I Assistant (Senior Assistant) with 5 years’ service as such (Grade I Assistant) was eligible. Promotion was to be based on merit and suitability. Pending finalisation of the recruitment rules, selection was to be made on the basis of the above principles. These instructions held the field with modifications effected on 23rd August, 1991 and 04th July, 1995.

b. In the absence of any rule, the posts of Assistant Regional Transport Officer were being filled by selection from different cadres under the administrative control of the Transport Department in terms of the Executive Instructions. On 16th March, 2013, both Dash and Sahoo were appointed as Junior Assistant. Dash and Sahoo joined duty on 18th March, 2013. On 10th June, 2016, both of them were promoted to the post of Senior Assistant, whereupon they joined on 13th June, 2016.

c. In April, 2017, all border check gates were abolished for free passage of inter-State movement of vehicles on the advice of the Central Government. This required adjustment of the posts of Assistant Regional Transport Officer in the different Regional Transport Offices. On 17th October, 2017, vide a Resolution issued by the Commerce & Transport (Transport) Department, Government of Odisha, the officers – Assistant Regional Transport Officer, Additional Regional Transport Officers (General) and Regional Transport Officers (General) – whose services till now had been governed by Executive Instructions were now made a part of the Odisha Transport Service. The Odisha Transport Service cadre now consisted of Assistant Regional Transport Officer, Additional Regional Transport Officer (General) and Regional Transport Officer (General). The post of Assistant Regional Transport Officer was restructured from Group C to Group B w.e.f. 17th October, 2017

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