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2012 Supreme(Ori) 539
IN THE HIGH COURT OF ORISSA
M.M. Das, J.
MANAGEMENT, NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT - APPELLANT
Versus
GOVERNMENT OF INDIA AND OTHERS - RESPONDENT
O.J.C. No. 9444 of 2000
Decided On : 30-01-2012
J.K. Tripathy, A.K. Mishra, B.P. Tripathy, P.K. Chand, D. Satpathy and P.S. Mishra, for the Appellant; P.K. Jena, N. Panda and P.C. Muduli, for the Respondent
The main legal point established is that promotion cannot be automatic and is subject to the management's discretion and the availability of promotional posts.
Headnote:
NABARD - Employment Dispute - NABARD Act, 1981 - [NABARD Act, 1981] - The court discussed the NABARD Act, 1981 and the National Bank for Agriculture and Rural Development (Staff) Rules, 1982 in the context of an employment dispute regarding promotion of employees within Group 'C'. The court emphasized the criteria for promotion, including the ratio of staff in Grade-I to Grade-II, and the assessment of confidential reports and service records. The court also highlighted the management's discretion in assessing the suitability of employees for promotion and the need for available promotional posts.
Fact of the Case:
The petitioner, NABARD management, challenged an award regarding the promotion of employees within Group 'C' as per the NABARD Act, 1981 and the Staff Rules. The dispute arose from the retrospective promotion of four employees and the interpretation of a settlement agreement.
Finding of the Court:
The court found that the management had the discretion to assess the suitability of employees for promotion and that promotion could not be automatic on completion of five years of service in Grade-II. The court held that the award directing retrospective promotion was misdirected and quashed it.
Issues: The issues included the interpretation of the settlement agreement, the availability of promotional posts, and the discretion of the management in assessing employee suitability for promotion.
Ratio Decidendi: The court emphasized that promotion cannot be automatic and highlighted the management's discretion in assessing employee suitability for promotion. It also stressed the need for available promotional posts before promotion could be granted.
Final Decision: The court allowed the writ petition, quashed the award, and directed that the concerned employees should be considered to have been promoted from the date of their promotional orders.
JUDGMENT :
M.M. Das, J. - The petitioner is the management of National Bank for Agriculture and Rural Development (in short 'NABARD') and it calls in question the award dated 26.2.2000 passed by the Presiding Officer, Industrial Tribunal. Orissa, Bhubaneswar. To appreciate the rival contentions of the parties made before this Court, it is essential to delineate the facts leading to title present dispute, which is as under:
The petitioner-Bank is a Corporation operating at the National Level established by an Act of Parliament called the National Bank for Agriculture and Rural Development Act, 1981 (hereinafter referred to as 'NABARD Act, 1981') having its Head Office at Mumbai and Regional Offices at different State Capitals including Bhubaneswar. The service conditions of all the employees of the petitioner-Bank is fundamentally covered and governed by the National Bank for Agriculture and Rural Development (Staff) Rules, 1982 (in short 'the Rules'). These Rules are framed by the Board of Directors of the petitioner-Bank being empowered in that behalf under the statute i.e. the NABARD Act, 1981. Appendix-I of the said Rules stipulates regarding various services operating in the Bank which includes subordinate services who are known as Group 'C' staff. The Group 'C' staff are classified into five broad categories, such as, Maintenance (Farash) Staff Grade I and Grade II; Maintenance (Sweeper) Staff Grade I and Grade-II; Messenger Staff Grade-I and Grade-II; Semi Skilled Staff Grade-I and Grade-II; and Skilled Staff Grade-I and Grade-II. As per the rules, the posts of Grade-I in the respective categories of Group 'C' services are filled in by way of promotion of the confirmed Grade-II employees of the respective categories who have rendered a minimum of five years of service in that Grade, on the basis of assessment of their confidential reports for the last three years and service records and such other factors as may be considered necessary.
2. It is pertinent to mention that when the rules are in vogue, on the demand of the All India NABARD Employees' Association relating to promotional avenues for employees in Group 'B' and 'C', a memorandum of settlement was arrived at between the management of the petitioner-Bank and the said Employees' Association on 23.4.1991 (Ext. 1 before the Tribunal which has been annexed as Annexure-2 to the writ petition). Clause-X is the relevant clause of the agreement for the purpose of this case which is quoted hereunder:
X. Promotion of employees within Group 'C':
(i) It is agreed that the proportion of staff in Grade I in a Group to Grade II of that Group shall be in the ratio of 3:7, The staff in Grade II in a Group will be eligible for being considered for promotion to Grade I category of that Group on completion of 5 years of qualifying service in Grade II of that Group. The promotion shall be made on the basis of seniority and on the assessment of the confidential reports for the preceding three years and such other factors as maybe considered necessary.
It is agreed that promotion of Messenger staff Grade II to Grade I and Maintenance staff Grade II to Grade I in the ratio mentioned in sub-clause (i) herein above shall be effected as from 2 July, 1990 (1 July, 1990 being a Sunday) subject to their eligibility.
(ii) It is agreed that additional posts of Semi-skilled staff Grade II would be created with effect from the date of this settlement by up-gradation of the posts of Messenger staff Grade I as under without, however, causing any consequential vacancies in the category of Messengers:
(a) Two in each Regional Office excepting Shimla. Jammu and Trivandrum Regional Offices and all Sub-Offices and training establishments.
(b) Two additional posts would be created in Inspection Department, Hyderabad.
(c) 15 additional posts would be created in Head Office, Bombay.
It is further agreed that promotion of Semi-skilled staff Grade II to Semi-skilled staff Grade I in the promotion mentioned in sub-claus
