2017 Supreme(Del) 1023
IN THE HIGH COURT OF DELHI AT NEW DELHI
VALMIKI J. MEHTA, J.
SUNITA KHATOLIA - Petitioner
Versus
DELHI SC/ST/OBC/MINORITIES & HANDICAPPED FINANCIAL & DEVELOPMENT CORPORATION LTD. & ORS. – Respondents
W.P.(C) No. 2060 of 2004
Decided On : 28-03-2017
For the Petitioner: Mr. K.C. Mittal, Ms. Ruchika Mittal
For the Respondents: Ms. Avnish Ahlawat, Ms. Palak Rohmetra, Mr. N.S. Arora
An employer has the right to change service rules, and protection of existing pay-scales despite amendments.
Headnote:
RESTORATION - Writ Petition - Article 226 of the Constitution of India - Circular dated 24.7.1996 - Amended rules challenged - Hierarchy of posts and pay-scales - Promotion structure - Protection of existing pay-scales - Employer's right to change service rules - Dismissal of writ petition
Fact of the Case:
The application sought restoration of a dismissed writ petition (W.P. (C) No. 2060/2004) which challenged the amendment to the recruitment rules and sought various reliefs including quashing the amendment, directing the re-drawing of seniority list, and regularization of promotion.
Finding of the Court:
The court found that the amended rules and the hierarchical structure could not be successfully challenged by the petitioner. The employer had the right to change service rules, and the petitioner's higher pay-scale was protected despite the amendment. The court dismissed the writ petition as it found no merit in the petitioner's claims.
Issues: Challenge to amended recruitment rules, hierarchical and organizational structure, and promotion dates; Protection of existing pay-scales; Employer's right to change service rules
Ratio Decidendi: An employer has the right to change service rules; Protection of existing pay-scales despite amendments; Self-serving grounds cannot be a valid basis for challenging amended rules
Final Decision: The writ petition was dismissed with no costs.
VALMIKI J. MEHTA, J.
C.M. Appl. No. 7103/2016 (for restoration)
1. This is an application seeking restoration of the W.P. (C) No. 2060/2004 which was dismissed for non-prosecution.
2. For the reasons stated in the application and no opposition on behalf of the opposite counsel, the application is allowed and W.P. (C) No. 2060/2004 is restored to its original number.
3. C.M. stands disposed of.
W.P.(C) No. 2060/2004
4. By this writ petition under Article 226 of the Constitution of India, petitioner seeks the following reliefs:-
“(a) quash the amendment dated 15.3.1996 being not in consonance with the procedure;
(b) issue a writ in the nature of mandamus directing the Respondent No. 1 Corporation to re-draw the seniority list as per the recruitment rules existing at the time of the entry of the Petitioner into the service of Respondent no. 1 Corporation;
(c) direct the Respondents to regularize the promotion of the Petitioner to the post of Deputy Manager (G) from 13.5.1996 i.e. from the date when she was eligible to be considered for promotion and grant all consequential benefits;
(d) direct the Respondent No. 1 Corporation to produce the records and minutes of meetings of the Board of Directors held on 15.3.1996;
(e) direct the Respondent No. 1 Corporation to produce the records of the communication between the Respondent No. 1 Corporation and the Respondent No. 2 wherein the Respondent No. 1 Corporation have justified their stand in amending the recruitment rules on 15.3.1996;
(f) direct the Respondent No. 1 to promote her as Manager being the senior-most person in the feeder grade;
AND
(g) pass any other order/orders as this Hon’ble Court may deem fit in the facts and circumstances of the case.”
5. The effect of the prayer clauses is that if the petitioner is successful in quashing the amendment to the recruitment rules dated 15.3.1996, and quashing of which are a sine qua non for the petitioner to succeed, then petitioner will get promotion as per the unamended rules. In order to decide the issue which thus arises it is necessary to refer to the circular of the respondent no. 1 dated 24.7.1996, and this circular gives the hierarchy of posts as per the unamended rules as also as per the amended rules. This circular reads as under:-
“DELHI SCHEDULED CASTES FINANCIAL & DEVELOPMENT CORPORATION LIMITED
(A GOVERNMETN OF DELHIL UNDERTAKING)
2-BATTERY LANE RAJPURA ROAD, DELHI-54
No. F. 9 (213)/96-DSFDC/17179 to 17194
Dated 24.7.96
ORDER
Consequent upon passing a resolution by the Board of Director in its 56th meeting held on 15.3.96 & 3.6.96 the existing nomenclature of posts of Delhi Scheduled Castes Financial & Development Corporation Ltd., are hereby changed/revised with immediate effect. As per new hierarchy approved by the Board of Director, some new posts are also hereby created. The new nomenclature of posts of this Corporation in future will be reads as under:-
PRESENT NOMENCLATURE OF POST(S)
REVISED NOMENCLATURE OF POSTS(S) CREATION OF POST(S) AS PER NEW HIERARCHY APPROVED BY B.O.D.
| S.No. | Name of post | No. of post | Pay scale | Name of post | No. of post | Pay scale |
| 1.
| Chairman |
|
| Nominated by the Govt. of N.C.T. of Delhi |
|
|
| 2. | Managing Director (IAS) | 1 | 7300-7600 | Managing Director | 1 | 7300-7600 |
| 3. | General Manager (DANILCS) | 1 | 4100-5300 | General Manager (DANILCS) | 1 | 4100-5300 |
| 4. | Company Secretary | 1 | 3000-4500 | Company Secretary | 1 | 3000-4500 |
| 5. | Not Existing | - | - | Manager (Loan & Advances) | 1 | 3000-4500 |
| 6. | Not Existing | - | - | Manager (Accounts & Finance) | 1 | 3000-4500 |
| 7. | Not Existing | - | - | Manager (Personnel & Training) | 1 | 3000-4500 |
| 8. | Not Existing | - | - | Manager (Planning & Evaluation) | 1 | 3000-4500 |
| 9. | Not Existing | - | - | Manager (Enforcement & Recovery) | 1 | 3000-4500 |
| 10. | Executive Engineer | 1 | 3000- | |||