Reportable

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS.5286-87 OF 2005

Bharat Sanchar Nigam Ltd.

… Appellant

Vs.

R. Santhakumari Velusamy & Ors.

… Respondents

With

CIVIL APPEAL NOS.3405, 4542, 4543, 4544, 4545 and 4546 of 2006

J U D G M E N T

R.V.RAVEENDRAN, J.

The appellant, Bharat Sanchar Nigam Ltd., is the successor of the

Department of Telecommunications, Ministry of Communications, and

Government of India (for short ‘government’ or ‘telecom department’). The

question involved in these matters is whether rules of reservation will apply

to upgradation of posts.

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2.

There were four grades of employees of telecom departments known

as Telegraphists or Telecom Operating Assistants in the Telecom

Department. Promotions from one grade to a higher grade were on the basis

of seniority/departmental examination. The telecom department introduced

an ‘One Time-Bound Promotion’ scheme (‘OTBP scheme’ for short) in the

year 1983-84 under which regular employees who had completed 16 years

of service in a grade, were placed in the next higher grade. After some years,

the employees unions demanded a second time-bound promotion on

completion of 26 years of service in the basic grade, as Group C and Group

D cadres were only entitled to one-time bound promotion. The government

decided that a second time bound promotion was not feasible. However, to

provide relief from stagnation in the grade, the government decided to have

a Biennial Cadre Review (‘BCR’ for short) under which a specified

percentage of posts could be upgraded on the basis of functional

justification.

3.

The BCR scheme was accordingly introduced vide Circular dated

16.10.1990. It was made applicable to those cadres in Group C and Group D,

for which one-time bound promotion scheme on completion of 16 years of

service in the basic grade was in force. Under the said scheme, employees

who were in regular service as on 1.1.1990 and had completed 26 years of

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satisfactory service in the basic cadres, were to be screened by a duly

constituted Committee to assess their performance and determine their

suitability for advancement and if they were found suitable, to be upgraded

in the higher scale. The upgradation was restricted to 10% of the posts in

Grade III. We extract below the relevant terms of the BCR from the Circular

dated 16.10.1990:

“…….

(iii)

Biennial Cadre Reviews will be conducted in respect of the eligible

cadre at the level of circles who control these cadres.

(iv)

At the time of review the number of officials who have

completed/would be completing 26 years of service in the basic cadres

including time spend in higher scale (OTBP) will be ascertained. The

persons will be screened by the duly constituted Review committee to

assess the performance and suitability for advancement.

(v)

In the Biennial cadre review, suitable number of posts will be

created by upgradation based on functional justification.

(vi)

Creation of posts by upgradation will be in the scales indicated

below:

Basic scale of the

cadre

Scale after OTBP

after 16 years of

basic grade

Scale after BCR on

completion of 26 years or

more

750-940

800-1150

950-1400

825-1200

950-1400

1200-1800

975-1540

1320-2040

1400-2600

975-1600

1400-2300

1600-2660

(10% of the posts in the pay

scale of 1600-2660 will be in

the pay scale of Rs.2000-3200

1320-2040

1600-2600

1640-2900

(10% of the posts in the pay

scale of 1640-2900 will be in

the pay scale of Rs.2000-

3200)

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(vi)

xxx

xxx

xxx

(viii)

Necessary posts will be created by upgradation under the powers

of CGMs in consultation with their accredited finance.

(ix)

The first Biennial Cadre Review for eligible cadres/officials may

be conducted immediately covering the period upto 30.6.1992 to ascertain

the eligible officials who have completed/will be completing 26 years of

services or more as on the crucial da