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2025 Supreme(HP) 362
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Tarlok Singh Chauhan, Sushil Kukreja, JJ.
H.P. State Co-operative Bank Employees Union - Petitioner
Versus
State of H.P and others - Respondents
CWP No.4754 of 2025
Decided On : 24-04-2025
Advocate Appeared:
For the Petitioner:Dr. Lalit Kumar Sharma, Advocate.
For the Respondent:Mr. Anup Rattan, A.G with Mr.Ramakant Sharma, Addl. A.G and Mr.Sushant Keprate, Addl. A.G., Mr. Sunil Mohan Goel, Senior Advocate with Mr.Raman Jamalta, Advocate
The State has the authority to amend service rules, and promotion is not a fundamental right, though consideration for promotion is.
Headnote:
(A) H.P. State Co-operative Bank Employees (Terms of Employment and Working Condition) Rules, 1979 - Amendment of rules regarding promotion - The petitioner, an employees union, challenged amendments affecting promotion rights, claiming prejudice to employees. The court held that individuals not part of the cadre cannot claim rights based on prior policies. The State has the authority to amend service rules as needed. (Paras 2, 3, 5, 9)
(B) Judicial Review - The court emphasized that promotion is not a fundamental right, but consideration for promotion is. Judicial review is limited to cases where actions are arbitrary or unconstitutional. (Paras 8, 9)
(C) Classification in Service - The court upheld the principle that classification based on qualifications for promotion is within the executive's discretion and does not violate equality principles. (Paras 10, 12)
Facts of the case:
The petitioner union challenged amendments to rules affecting promotion rights, arguing that these changes prejudiced employees' rights.
Findings of Court:
The court found the petition not maintainable, affirming the State's authority to amend service rules.
Issues: The main issues included the maintainability of the petition and the authority of the State to amend service rules.
Ratio Decidendi: The court ruled that the State has the discretion to amend service rules and that promotion is not a fundamental right, but consideration for promotion is.
Result: Petition dismissed.
JUDGMENT :
Tarlok Singh Chauhan, J.
The petitioner is employees Union and aggrieved by the amendment carried out in the rules, has filed the instant petition for grant of the following substantive reliefs:-
“(i) That by way of writ of certiorari the impugned Annexure P8 dated 21/01/2025 passed by respondent no. 3, Annexure P13 dated 21/10/2024 and Annexure P14 dated 18/012/2024 passed by respondent no.2 may kindly be set aside and quashed.
(ii) That in alternate the respondents may be directed not to implement Annexure P8 qua the serving employee of the respondent no. 3 Bank for the purpose of their promotion in next cadre as their right for the said purpose got crystalized under un-amended rules.
(iii) That respondent may be directed to revisit the entire issue of introduction of HR policy in the respondent no. 3 bank after hearing all stake holder including the petitioner union whose representation's dated 20/08/2024, 10/10/2024, 24/02/2025, 27/02/2025 remained unattended and the respondent no. 2 may be directed to decide the same in time bound manner.”
2. According to the petitioner, the impugned order dated 21.10.2024 passed by the Registrar, Co-operative Society, Himachal Pradesh, whereby he has accorded approval to amend Rules 7, 19(b), 21, 22, 23, 33, 34 and 61 of the H.P. State Co- operative Bank Employees (terms of employment and working condition) Rules, 1979, has caused prejudice to the employees, inasmuch as the right of consideration for promotion in each grade from top to bottom has been adversely affected.
3. However, the moot question is whether such a petition is maintainable? After all, the individuals who are not yet part of the cadre cannot claim rights based on policies enacted before their entry.
4. Moreover, it is open and within the competency of the State to change the rules relating to a service and alter or amend and vary by addition/subtraction the qualifications, eligibility criteria and other conditions of service including avenues of promotion, from time to time, as the administrative exigencies may need or necessitate.
5. In coming to such conclusion, we are duly supported and fortified by the judgment passed by the Hon’ble Supreme Court in case titled as P.U. Joshi and others vs. Accountant General and others, (2003) 2 SCC 632, more particularly, para 10 thereof, which reads as under:-
“10. We have carefully considered the submissions made on behalf of both parties. Questions relating to the constitution, pattern, nomenclature of posts, cadres, categories, their creation/abolition, prescription of qualifications and other conditions of service including avenues of promotions and criteria to be fulfilled for such promotions pertain to the field of Policy and within the exclusive discretion and jurisdiction of the State, subject, of course, to the limitations or restrictions envisaged in the Constitution of India and it is not for the Statutory Tribunals, at any rate, to direct the Government to have a particular method of recruitment or eligibility criteria or avenues of promotion or impose itself by substituting its views for that of the State. Similarly, it is well open and within the competency of the State to change the rules relating to a service and alter or amend and vary by addition/subtraction the qualifications, eligibility criteria and other conditions of service including avenues of promotion, from time to time, as the administrative exigencies may need or necessitate. Likewise, the State by appropriate rules is entitled to amalgamate departments or bifurcate departments into more and constitute different categories of posts or cadres by undertaking further classification, bifurcation or amalgamation as well as reconstitute and restructure the pattern and cadres/categories of service, as may be required from time to time by abolishing existing cadres/posts and creating new cadres/posts. There is no right in any employee of the State to claim that rules governing conditions of his service shoul
