HIGH COURT OF ALLAHBAD
RAGHUBAR DAYAL, J.
O. N. Chauhan
Versus
Collector of Central Excise, Allahabad
Civil Misc. Writ Nos.989 and 990 of 1954
Decided On : 25-03-1955
CENTRAL EXCISE - SELECTION GRADE INSPECTORS - APPOINTMENT - CANCELLATION - REVERSION - VALIDITY - CENTRAL SERVICES (CLASSIFICATION, CONTROL AND APPEAL) RULES, 1930 - FUNDAMENTAL RULES.
Fact of the Case:
The petitioners, permanent Inspectors in the Central Excise Department, were selected for the Selection Grade in accordance with the Government of India's instructions. However, upon representations from senior inspectors who were superseded, the Government of India directed the Collector to review the selection and cancel irregular appointments. The Collector reviewed the cases and reverted 40 inspectors, including the petitioners, to their original posts.
Finding of the Court:
The court held that the petitioners' reversion was not a reduction in rank within the meaning of Art.311(2) of the Constitution, as it was not based on any misconduct or lack of ability but rather on the need to rectify an irregular selection process. The court also found that the Collector had the authority to review the selection and make a fresh selection after his previous order had been cancelled.
Issues: 1. Whether the petitioners' reversion to their original posts amounted to a reduction in rank within the meaning of Art.311(2) of the Constitution. 2. Whether the Collector had the authority to review the selection and make a fresh selection after his previous order had been cancelled.
Ratio Decidendi: 1. Reduction in rank under Art.311(2) of the Constitution implies the posting of a public servant to a lower rank by way of punishing him for some misbehaviour. The cancellation of the selection order and reversion of the petitioners due to favorable views taken on representations by superseded inspectors, and not due to any fault with the petitioners' work, did not amount to a reduction in rank. 2. The Collector had the authority to review the selection and make a fresh selection after his previous order had been cancelled. The selection of senior inspectors to the selection grade could only be given practical effect by reverting the previously selected junior inspectors to their original posts. The rules implied that the promotion of a junior to the selection post in preference to the senior was subject to the result of an appeal or representation by the superseded senior.
Final Decision: The court dismissed the petitions, holding that the petitioners' reversion was not a reduction in rank and that the Collector had the authority to review the selection and make a fresh selection.
2. The petitioners were permanent Inspectors in the Central Excise Department Allahabad in August 1952; Letter No.4(98)-Ad. (CX) 51, dated 20-8-1952, from Government of India, Ministry of Finance (Revenue Division), New Delhi, to the Collectors of Central Excise said in para.2:
"The Selection grade for Inspector of Central Excise will constitute 15 per cent. of the cadre strength of Inspectors, appointments thereto being made of permanent incumbents only on the basis of seniority-cum-fitness."
3. It was mentioned in letter No. C. No.II-359-ET/52/810, dated 12-1-1953, forwarding the Government of India, Ministry of Finance (Revenue Division), New Delhi, letter No. C. No.4(98) Ad. (CX)/51, dated 3-12-1952, to Collectors of Central Excise:
"The selection grade posts for Inspectors will constitute 15 per cent. of the sanctioned permanent posts of ordinary grade Inspectors, and in calculating the number of Selection grade posts fractions of a whole number will be ignored. All the selection grade posts will be permanent and the cadre strength of the ordinary grade will be reduced by the number of posts placed in the selection grade."
4. The Collector of Central Excise, Allahabad, hereinafter referred to as the Collector, had to select 60 inspectors for the Selection Grade from among the permanent inspectors in his charge. He made that selection and passed an order on 27-2-1953. The order is:
"The following confirmed Inspectors are appointed with effect from 1-8-1952 to the Selection Grade in the scale of Rs.200-10-300 in the posts sanctioned in Government of India, Ministry of Finance (Revenue Division) No.4 (98) Ad. (CX) 51, dated 20-8-1952."
Among the names we find those of the two petitioners at serial Nos.43 and 60 respectively.
5. It appears that a number of permanent inspectors who were senior to a number of these selected inspectors submitted representations to the Central Board of Revenue or the Government of India. The Government of India disagreed with the interpretation put by the Collector on their directions contained in their two letters, dated 20-8-1952, and 3-12-1952. The Government of India informed the Collector by their letter No.7(79)- Ad (CX) 53, dated 7-8-1953, that they had held that appointments of inspectors of Central Excise to the Selection Grade made on selection basis instead of seniority-cum-fitness were irregular and should be cancelled after giving a show-cause notice to the individuals concerned why their appointments to the selection grade should not be cancelled and made it clear that such a notice would not be with reference to the obligations imposed by Art.311(2) of the Constitution but was being given on grounds of fairplay and principles of natural justice.
The Collector was consequently asked to review the cases of all the inspectors, to cancel such appointments to the Selection Grade as be necessary in accordance with the procedure indicated in that letter and to fill in the resulting vacancies strictly in accordance with the principle of seniority cum-fitness.
6. The Collector reviewed the cases of all the inspectors. It appears that he ultimately sent up his final proposals for selection to the Central Board of Revenue. By its letter, dated 14-10-1953, the Board laid down considerations which should deprive a permanent inspector of the Selection Grade and communicated that judging from that standard the Board did not think that any of the permanent inspectors whose cases were reviewed were unfit for prom
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