Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 6097-6100 of 2009, Judgment Date: Mar 09, 2015


                                                                  Reportable
                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                     CIVIL APPEAL Nos.6097-6100 OF 2009



Anil Joshi and Others                                        Appellant(s)

                             VERSUS

State of Himachal Pradesh
and Others                                                 Respondent(s)


                                    With

                        CIVIL APPEAL No.6101 OF 2009
                        CIVIL APPEAL No.6102 OF 2009
                        CIVIL APPEAL No.6103 OF 2009
                        CIVIL APPEAL No.6104 OF 2009

                               J U D G M E N T
Abhay Manohar Sapre, J.
1.    Civil Appeal Nos. 6101, 6102, 6103 and 6104 of 2009 are filed  by  the
State against the common judgment dated 15.06.2007 passed by the High  Court
of Himachal Pradesh at Shimla in Civil Writ Petition Nos. 586 of  1999,  66,
118 and 170 of 2000 wherein the High Court allowed the writ petitions  filed
by the State employees working in the Forest  Department  by  setting  aside
the  judgment/order  dated  15.12.1999  passed  by  the   Himachal   Pradesh
Administrative Tribunal, Shimla in O.A. Nos. 35 of 1989, 595,  609  and  620
of 1990.
2.    So far as Civil Appeal Nos. 6097-6100 of  2009  are  concerned,  these
appeals are filed by one set of employees  after  obtaining  leave  of  this
Court because they were not parties before the  High  Court  or  before  the
Tribunal.  According to them, consequent upon the declaration given  by  the
High Court in  favour  of  the  respondents  in  their  absence,  they  felt
aggrieved and hence filed these appeals.

3.    In order to appreciate the issue involved in these appeals, which  lie
in a narrow compass, it is necessary to state the relevant facts infra.
4.    The respondents herein are the State employees working in  the  Forest
Department in Himachal Pradesh.  They were appointed  during  1989-1990  and
accordingly posted as "Range  Officers"  in  the  Forest  Department.  Their
service conditions are governed by the Recruitment  &  Promotion  Rules  for
the Himachal Pradesh Forest Service (Class-II) (in short "the Rules").
5.    The respondents, however,  claimed  that  they  having  qualified  the
State Forest Service Course (Diploma Course) from  different  colleges  were
eligible  to  be  posted  as  ACF  (Assistant  Conservator  of  Forest)  and
accordingly were eligible for being treated  as  "direct  recruits"  in  the
H.P. Forest Services Class II.
6.    The respondents claimed the aforementioned reliefs essentially on  the
basis of one  letter  dated  28.07.1983  sent  by  the  Director  of  Forest
Education, Forest Research Institute &  College  to  the  Secretary,  Forest
Department, States/U.Ts. According to the respondents,  the  letter  was  in
the nature of the promise given to them by the State  and  since  the  State
declined to grant the reliefs,   they  filed  O.As  before  the  H.P.  State
Administrative Tribunal (for short "the Tribunal")  against  the  State  and
sought for the following reliefs:
(i)   That the respondents may be directed to appoint petitioner Nos. 1  and
2 as HPFS-II from the date they completed the SFS Training Course  from  SFS
College Dehradum, i.e. April 1, 1986, the day following the convocation.

That the respondents may be directed to appoint petitioner No.3 as H.P.F.S.-
II from the date of his joining the  SFS  Training  Course  at  SFS  College
Burnihat, i.e., 1.11.1986.

That the petitioners may be declared to have  been  duly  selected  for  SFS
Diploma against direct quota  under  the  existing  R  &  P  Rules  and  the
respondents may be directed to appoint the petitioners from  the  due  dates
as has been done in the cases of their contemporary direct recruits.

That the petitioners may be held  entitled  to  all  consequential  benefits
including fixation of seniority and back wages; and

That in the alternative if it is construed that there are  some  impediments
for considering the petitioners for appointments to HPFS-II from due  dates,
in that event, the respondents may be directed to take necessary  steps  for
doing  the  needful  and  if  the  proposed  action/rules   create   certain
difficulties in the cases of petitioners, the same may  be  deemed  to  have
been relaxed in view of peculiar facts of this case."

7.    The State contested the  respondents'  claim  and  contended  that  no
promise  was  ever  given  to  the  respondents  and  nor  any  promise  was
discernible from the letter dated 28.07.1983 relied on  by  the  respondents
so as to entitle them to claim the  aforementioned  reliefs.   It  was  also
contended that since the Rules do not make any provision  on  the  issue  in
question and hence it is not possible to consider grant of  such  relief  to
the respondents.  Lastly, it was contended that as and  when  any  amendment
in the Rules is made, the cases of the respondents  and  others  alike  them
would be considered on their merits at the appropriate stage.
8.    The Tribunal, by judgment/order dated 15.12.1999  dismissed  the  O.As
filed by the respondents. It was held that the letter dated 28.07.1983  does
not give any right to the respondents to claim such reliefs.   It  was  also
held that no case of promissory estoppel, as was sought  to  be  pressed  in
service by the respondents, was made out in their favour on the strength  of
the  letter  dated  28.07.1983.   It  was  also  held  that  the  cases   of
respondents are governed by the Rules and so long as  they  do  not  fulfill
the requirements of the Rules, no benefit can be extended to them.
9.    Aggrieved by the  said  judgment/order,  the  respondents  filed  writ
petitions under Article 227 of the Constitution of India in the High  Court.
 By impugned judgment/order, the Division  Bench  allowed  the  respondents'
writ petitions and quashed the order of the Tribunal. It  was  held  that  a
case of promissory estoppel as  pleaded  by  the  respondents  is  made  out
against the State.  It was held that if the State has failed  to  amend  the
Rules, no blame can be attributed to the respondents for such lapse  on  the
part of the State and nor can they be deprived of  their  legitimate  rights
to claim the reliefs for which they filed O.As before the Tribunal.
10.   Accordingly, the High Court gave the following declaration  in  favour
of the respondents:
"We consequently allow the writ  petitions,  set-aside  the  orders  of  the
learned Tribunal dated 15th December 1999 and hold that the petitioners  are
entitled to be inducted in the H.P.  State  Forest  Service-II  with  effect
from the date they successfully completed the State  Forest  Service  Course
(Diploma Course) in Forestry with all consequential benefits.  No  order  as
to costs."

11.   It is against this order, the State filed C.A.Nos.  6101,  6102,  6103
and 6104 of 2009 and the affected State  employees,  who  were  not  parties
before the High Court or the Tribunal filed C.A. Nos. 6097-6100 of 2009.
12.   The question which  arises  for  consideration  in  these  appeals  is
whether the High Court was justified  in  allowing  the  writ  petitions  by
granting declaration in favour of the respondent-employees.
13.   Learned Counsel for the appellant-State while assailing  the  legality
and correctness of the impugned order made  two-fold  submissions.   In  the
first place, learned counsel contended that the High Court erred in  holding
that  a  case  of  promissory  estoppel  was  made  out  in  favour  of  the
respondents.  According to him, neither any promise was given by  the  State
and nor it could be  spelt  out  from  the  contents  of  the  letter  dated
28.07.1983. Learned counsel contended  that  apart  from  the  letter  dated
28.07.1983, the respondents did  not  place  reliance  on  any  evidence  to
support  their  plea  of  promissory  estoppel.   Learned  counsel   further
contended that the plea of promissory estoppel was  not  applicable  to  the
case  in  hand  for  the  simple  reason  that  service  conditions  of  the
respondents are governed by the Service Rules. In the second place,  learned
counsel  contended  that  the  matter  is  under  consideration  for  making
appropriate amendment in the R & P Rules of HPFS-II and  hence  so  long  as
appropriate amendment is not made,  the  respondents  are  not  entitled  to
claim reliefs.
14.   In contra, the respondents supported the impugned order and  contended
that no case is made out to interfere in the impugned order  and  hence  the
appeals are liable to be dismissed.
15.   Having heard the learned counsel for the parties  and  on  perusal  of
the record of the case, we find force  in  the  submission  of  the  learned
counsel for the appellant-State.
16.   As mentioned above, the  High  Court  allowed  the  respondents'  writ
petitions essentially on the ground that a case of promissory  estoppel  was
made out against the State and hence the State is bound by the promise  made
to the respondents for grant of reliefs in question.
17.   We cannot concur with the view taken by the  High  Court,  as  in  our
considered opinion, it is not sustainable both on facts and in law.
18.   It is a settled principle of law that  the  service  conditions  of  a
State employee are governed by the Statutory Rules framed by the State  from
time to time. An employee is, therefore, entitled to enforce  his  statutory
right recognized in the Rules in relation to his service condition if it  is
breached due to any action on the part of the State.  A plea  of  promissory
estoppel can be set up by a person against the State only when  he  is  able
to prove with adequate evidence that the State has promised him  in  writing
in express terms to grant specific benefit and acting upon such  promise  he
has altered his position.  In such situation, the State  cannot  be  allowed
to go back to the promise made  to  such  person  and  he  can  enforce  the
promise made to him.
19.   Coming to the facts of the case in hand,  we  find  that  firstly  the
terms and conditions of the service of the respondents are governed  by  the
Recruitment & Promotion Rules known as R & P  Rules  of  HPFS-II.  Secondly,
Column 7 of the Schedule to the Rules provides  for  educational  and  other
qualifications required for  direct  recruits,  whereas  Column  10  of  the
Schedule to the Rules provides for method of recruitment whether  by  direct
or by promotion or transfer.  Likewise, Column 11 of  the  Schedule  to  the
Rules provides for the necessary qualification for promotion etc.   Thirdly,
the respondents were not able to show any Rule, which enabled them to  claim
a relief of the nature for which the O.As were filed.  Fourthly, perusal  of
the letter dated 28.07.1983 would go to show that it only provided that  the
Forest Rangers, who passed the Ranger Course with Honours,  were  considered
eligible to secure admission to the 2nd year of the  State  Forest  Services
Course (Diploma Course) in Forestry being  conducted  at  the  State  Forest
Service Colleges and such deserving Forest Rangers if found suitable,  could
be considered for admission in the State Forest Services Course.
20.    For  ready  reference,  letter   dated   28.07.1983   is   reproduced
hereinbelow:
                       "No. 1410/83-DEF/5-2-62(PT.III)
                             GOVERNMENT OF INDIA
                    FOREST RESEARCH INSTITUTE & COLLEGES,
                      P.O. NEW FOREST, DEHRADUN-248 006
                         DATED THE 28TH JULY, 1983.
      From
            The Director of Forest Education
            Forest Research Institute & College.

      To
            The Secretary,
            Forest Departments,
            States/U.Ts.

      Sub:  Selection for Diploma Course in Forestry
            at the State Forest Service Colleges located
            at Burmihat, Coimbatore and Dehradun.

      Sir,
            I have the honour to state that in view of  the  decision  taken
by the Council of Forestry Research and Education  in  one  of  its  meeting
held at Delhi on 5.5.1983, the Government of  India  have  been  pleased  to
convey their approval to the fact that  those  trained  Forest  Rangers  who
have/had passed the Rangers Course with honours are eligible  for  admission
to the 2nd year of the State  Forest  Service  Course  (Diploma  Course)  in
Forestry being conducted at the State Forest  Service  Colleges  located  at
Bumihat (Assam-Meghalaya),  Coimbatore(Tamil  Nadu)  and  Dehradun.   It  is
requested that the matter may kindly be given wide publicity and  the  cases
of deserving trained  Forest  Rangers  may  be  considered  and  recommended
accordingly for admission in the State Forest Service Course.

                              Yours faithfully,

                                 Sd/-
                         (C.S. Kirpekar)
                     Director of Forest Education
             Forest Research Institute & Colleges.

      Copy forwarded to  the  Chief  Conservator  of  Forests,  .........for
favour of information and similar action.

                             Sd/-
                         (C.S. Kirpekar)
                     Director of Forest Education
             Forest Research Institute & Colleges."

The contents of the letter quoted  above,  in  our  opinion,  could  not  be
construed as being in the nature  of  promise  made  by  the  State  to  the
respondents, so as to enable them to seek its enforcement  on  the  plea  of
promissory estoppel. The letter, in our  view,  only  prescribed  additional
qualification enabling the Forest Rangers to seek  admission  in  the  State
Forest Service Course provided they also  fulfill  necessary  qualifications
prescribed in Column 11 of the Schedule to the Rules.
21.   In our considered opinion, the High  Court,  therefore,  committed  an
error in placing reliance  on  the  judgments  of  this  Court  rendered  in
Collector of Bombay vs. Municipal Corporation of the City of Bombay &  Ors.,
AIR 1951 SC 469, Union of India & Ors. Vs. M/s Anglo  Afghan  Agencies  etc.
AIR 1968 SC 718, M/s Motilal Padampat Sugar Mills Co. Ltd. Vs. The State  of
Uttar Pradesh & Ors. AIR 1979 SC 621, Surya Narain Yadav &  Ors.  Vs.  Bihar
State Electricity Board & Ors. (1985) 3 SCC  38  and  State  of  Punjab  vs.
Nestle India Ltd. & Anr. (2004) 6 SCC 465, which dealt  with  the  cases  of
promissory estoppel.  The High Court failed to see the  distinction  between
the facts of the case in hand and the facts which  were  subject  matter  of
the cases relied on.  The case in hand being a service  matter,  the  rights
of the parties were required to be decided in the  light  of  the  statutory
service Rules applicable to the parties.  So far as the decisions relied  on
by the High Court were concerned, those were  the  cases  where  this  Court
laid down the law relating to the promissory estoppel operating  in  general
field inter se citizen and the State.  None of these  decisions  dealt  with
the cases arising out of service law. The principle of  promissory  estoppel
laid down therein, therefore, could not be applied to the case in  hand  for
giving benefit to the respondents.
22.   Learned counsel for the  respondents  referring  to  certain  letters,
contended that a case of promissory estoppel was made out against the  State
entitling the respondents to claim the reliefs. We find  no  force  in  this
submission.
23.   We have perused the  contents  of  the  letters  referred  to  in  the
impugned order and find that firstly, the  letters  were  exchanged  between
one State Authority to other  and  not  addressed  to  the  respondents  and
secondly, no enforceable right of the nature  in  question  was  created  in
respondents' favour on the strength of these letters.
24.   Learned counsel for the respondents  then  urged  that  appellants  in
Civil Appeal Nos. 6097-6100 of 2009 have no locus  to  file  the  appeal  as
none of their service rights were adversely affected.  This submission  need
not to be gone into on its merits  in  this  appeal  in  the  light  of  the
decision rendered in C.A. Nos. 6101, 6102, 6103  and  6104  of  2009-appeals
filed by the State against the impugned judgment/order.
25.   Learned counsel for the respondents, lastly,  brought  to  our  notice
that pending appeals, the respondents were given some  benefits  independent
to the impugned judgment/order.  If that be so, then we  prefer  to  express
no opinion on any such issue because it was not gone into at  any  stage  of
the proceedings. We, however, make it clear that we only examined the  issue
which was decided by the Tribunal  and  the  High  Court,   therefore,  this
order would not come in the way of the parties if, in the meantime, they  or
anyone received any benefit independent of the controversy involved in  this
case. Needless to say, so far as this case is concerned, the  cases  of  the
respondents can always be considered for their promotion etc. in  the  light
of existing Rules if they fulfill the qualifications laid  down  or  as  per
any amended Rules, if made.
26.    In  the  light  of  foregoing  discussion,  we  cannot   uphold   the
judgment/order passed by the High Court which deserves to be set aside.
27.   The appeals  thus  succeed  and  are  hereby  allowed.   The  impugned
judgment/order dated 15.06.2007  passed  by  the  High  Court  in  the  writ
petitions is set aside. The writ petitions filed by  the  respondents  stand
dismissed resulting in restoration of the  order  passed  by  the  Tribunal,
which rightly dismissed the O.As filed by the respondents.

28.   In the light of the decision in C.A. Nos. 6101, 6102,  6103  and  6104
of 2009, C.A. Nos. 6097-6100 of 2009 are disposed of.


       .............................................................J.
                    [FAKKIR MOHAMED IBRAHIM KALIFULLA]


          ..........................................................J.
                       [ABHAY MANOHAR SAPRE]

      New Delhi;
      March 9, 2015.









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