A public sector undertaking cannot unilaterally de-recognize educational qualifications, which must be recognized by statutory bodies, impacting promotion criteria and employment rights.

JUDGMENT :

VIBHU BAKHRU, C.J.

1. The appellant, Hindustan Aeronautics Limited [hereafter 'HAL'] ‒ a public sector undertaking, under the aegis of the Department of Defence Production, Ministry of Defence, Government of India ‒ has filed the present appeal impugning an order dated 01.04.2024 [impugned order], passed by the learned Single Judge of this Court in Writ Petition No.30867/2014 (S-PRO) captioned 'Smt. Indira Shankar v. M/s. Hindustan Aeronautics Limited'. The said writ petition was filed by the respondent impugning an order dated 04.06.2014 cancelling the respondent's promotion order dated 01.07.2013, whereby the respondent was promoted to the post of Grade - III. Consequently, the respondent was reverted to the post of HR Officer (Grade-II). The said reversion order was premised on the basis that the respondent did not hold the necessary qualification for grant of promotion from Grade-II to Grade-III.

2. The learned Single Judge allowed the writ petition. The learned Single Judge held that the reversion order dated 04.06.2014 was based on a circular dated 20.09.2012 [the 2012 Circular], de-recognizing the qualifications acquired from Bharatiya Vidya Bhavan, Rajendra Prasad Institute of Communication and Management, Mumbai, issued by the General Manager of HAL. The learned Single Judge found that the General Manager had no authority to de-recognize any qualification and the aforementioned Circular was without any statutory basis. Additionally, the Court held that institutions such as Rajendra Prasad Institute of Communication Studies operated under the ambit of Indian law and the diplomas conferred by such institutions affiliated to recognized entities, such as Bharatiya Vidya Bhavan, are presumed to adhere to the prevailing standards of educational quality and integrity, absent any evidence to the contrary. Aggrieved by the said decision, HAL has preferred the present appeal.

Prefatory facts

3. HAL is a public sector undertaking, inter alia, engaged in manufacturing, supply and over-hauling of Fighter and Transport Aircrafts and Helicopters. It also provides a range of ancillary services. The respondent took up employment with HAL in the year 1984. During her employment with HAL, she acquired the qualification of the Bachelor of Arts from Mysore University in the year 1986.

4. The respondent obtained a Post Graduate Diploma in Personnel Management and Industrial Relations from Bharatiya Vidya Bhavan, Rajendra Prasad Institute of Communication and Management, Mumbai [hereafter ‘the Institute'] during April 2004. The said qualification was entered in the respondent's personal records on 23.08.2004.

5. Thereafter, in the year 2005, the respondent was promoted to Grade I Officer. Subsequently, the respondent was further promoted to the post of Joint Executive Assistant (Grade II) with effect from 01.07.2009. The said post was subsequently re-categorized/re-classified as ‘HR Officer’.

6. HAL issued a Circular dated 11.08.2006 [the 2006 Circular], which prescribed eligibility criteria for promotions in Non-Technical Disciplines to persons possessing professional qualifications. In terms of the 2006 Circular, a candidate possessing PG Degree/ Diploma in the concerned discipline involving a course of one-year duration, from a recognized University/Institution was eligible for promotion. The relevant extract of the 2006 Circular is set out below:

"iii) Workmen in Scales-8, 9 & 10 possessing the Qualification of University Degree + PG Degree/Diploma in the concerned Discipline (of atleast one year duration acquired from a recognized University/Institution before 23.6.06) (as against the date of 30.11.03 indicated in Corporate Office Circular No.HAL/P&A/DM(N)/27(1)/97/623 dated 18th Nov. 2004), will be eligible for consideration for promotion against the vacancies earmarked for professionally Qualified Workmen, on completion of one year service in Scale-8, in the concerned Non-Technical Discipline. Further, Workmen in Scales-8, 9 & 10 p