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

Appeal (Civil), 5300-5301 of 2017, Judgment Date: Apr 17, 2017

                                                                  REPORTABLE

                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                     CIVIL APPEAL NOS.5300-5301  OF 2017
               (ARISING OUT OF SLP(C) NOS.30141-30142 OF 2011


M.M.THOMAS & ORS.                                          ....APPELLANT(S)

                                   VERSUS

UNION OF INDIA & ORS.                                     ....RESPONDENT(S)
                               J U D G M E N T
S. A. BOBDE, J.

Leave granted.
2.    The appellants have  preferred  these  appeals  against  the  impugned
common judgment and order dated  10.8.2011  passed  by  the  High  Court  of
Kerala in O.P.(CAT) Nos.2518 and  2525  of  2011,  whereby  the  High  Court
affirmed the order dated 19.7.2011  passed  by  the  Central  Administrative
Tribunal Ernakulam (for short, the ‘Tribunal), dismissing O.A.  Nos.723  and
970 of 2010, filed by the private  party  respondents.   The  Tribunal  held
that the appellants do not have  the  requisite  experience  in  the  Kerala
region as on the date on which the vacancies were notified,  and  set  aside
the inclusion of their names in the rank list  for promotion to the post  of
Enforcement  Officer/  Accounts  Officer  (for  short,  the  ‘EO/AO’).   The
Tribunal further held that if the private party  respondents  are  otherwise
eligible, the official respondents are directed to take  steps  to  consider
their rank obtained in the  examination  and  include  their  names  in  the
appropriate place in the rank list for promotion to the post of  EO/AO.  The
Tribunal also directed that the next available candidate in  the  rank  list
should be included in the rank list,  according  to  the  rank  obtained  by
them.
3.    The facts of the case in nutshell are as follows :
The appellants were working as Social  Security  Assistants  (SSAs)  in  the
Karnataka/Tamil Nadu regions of the Employees  Provident  Fund  Organisation
(for short, the ‘EPFO’). They were transferred to Kerala region and kept  at
the bottom in the seniority list. The notification was  issued  to  fill  up
the post of EO/AO in the Kerala region. Both the appellants and the  private
party respondents participated in the aforesaid  examination.  Subsequently,
the rank list was published. The appellants are at  Serial  No.1,2,4  and  5
respectively in the rank list and the promotion list. It  was  contended  by
the private party respondents  that  the  inclusion  of  the  names  of  the
appellants in these lists is arbitrary and illegal, because  they  were  not
eligible.
4.    The rule that governs the  eligibility  of  the  appellants  reads  as
follows :
|In case of recruitment  |(i) PROMOTION (OTHER THAN       |
|by promotion/deputation/|EXAMINATION QUOTA): ………………      |
|absorption, grade from  |                                |
|which promotion/        |(ii) BY PROMOTION ON THE BASIS  |
|deputation /absorption  |OF DEPARTMENTAL COMPETITIVE     |
|to be made.             |EXAMINATION                     |
|                        |                                |
|                        |# [Section Supervisor AND Junior|
|                        |Hindi Translator with 3 years   |
|                        |regular service in the scale of |
|                        |Rs.5000-8000/- and DEO (Grade-C)|
|                        |with three years' regular       |
|                        |service in the scale of         |
|                        |Rs.5000-8000/- including those  |
|                        |DEO (Grade-C) who have already  |
|                        |put in 5 years' regular service |
|                        |in DEO (Grade-A) and Social     |
|                        |Security Assistants/ Assistants/|
|                        |Stenographers/ and DEO (grade-A |
|                        |and B) with 5 years regular     |
|                        |service in the scale of         |
|                        |Rs.4000-6000/- in the respective|
|                        |regions]                        |



5.    The appellants as  also  the  private  party  respondents  passed  the
departmental competitive examination for the post of EO/AO.
Apprehending that the appellants  will  be  promoted  earlier,  the  private
party  respondents  approached  the  Tribunal  by  way  of  filing  original
applications. The Tribunal allowed the said applications and held  that  the
appellants herein were not treated as qualified for promotion i.e.  eligible
on the ground that they had not put in five years’  service  in  the  Kerala
region of EPFO, having relied on the words in the above  quoted  Rule  which
requires five years’ regular service “in the respective regions”.
6.    Being aggrieved, the appellants filed original  petitions  before  the
High Court which were also dismissed. Hence these appeals by special leave.
7.    Thus, the only issue before us is whether under  the  aforesaid  Rule,
the  candidates  who  seek  promotion   through   departmental   competitive
examination for the post  of  EO/AO,  should  have  served,  both  in  their
earlier place of posting and their present place of posting for a period  of
five years, or whether the candidates should have served for five  years  in
the region where they seek promotion, which in this case is Kerala region.
8.    Having heard learned  counsel  appearing  for  the  parties  and  upon
perusal of the record, we are of the view that the words  of  the  aforesaid
Rule require five years’ regular service “in the respective regions”.  Thus,
these words must be understood to  mean  that  the  candidates  should  have
served in the respective regions, that  is,  the  regions  where  they  were
posted earlier and the region where they seek  promotion  all  together  for
five years.  Thus  if  a  candidate  has  served  in  one  region  and  then
transferred to another, and seeks promotion in that region,  the  rule  does
not require that the candidate must have acquired experience of  five  years
in the region where he  seeks  promotion,  for  being  considered  eligible.
What is  necessary  is  a  total  experience  of  five  years.    This  must
necessarily be so because the service to which the rival parties belong,  is
an All India Services, in which  the  country  is  demarcated  into  several
regions. In All India Service, the officers are posted from  one  region  to
the other in a routine  manner.  The  purpose  of  the  rule  is  that  such
officers are not deprived of their experience in  the  feeder  cadre  merely
because they have been transferred from one place to another.
9.    It might be noticed that in  the  transfer  order  of  the  appellants
bearing No.HRM-III/14/1/07/IRT/Genl. Dated 19.06.2008,  issued  by  Regional
PF Commissioner (HRM), EPFO, Ministry of Labour, Government  of  India,  and
addressed to the Regional PF Commissioners in-charge  of  the  Region  Tamil
Nadu, the following is stated as a condition of transfer :
“His/her past service rendered in cadre of  SSA  will  be  counted  for  the
purpose of appearing in the departmental examination.……….”

The above condition of transfer fortifies our view regarding the intent  and
purpose of the promotion rule.
10.   In a similar context, this court in Union of India & others vs.
C.N. Ponnappan[1] held that an employee who is transferred from one unit  to
another on compassionate ground, though placed at the  bottom  of  seniority
list is entitled to have the service rendered at an  earlier  unit,  counted
for the purpose of eligibility for promotion in the  unit  in  which  he  is
transferred. It was observed in Para 4 as follows:
“The service rendered by  an  employee  at  the  place  from  where  he  was
transferred on compassionate grounds is regular service. It is no  different
from the service rendered at the place where he  is  transferred.  Both  the
periods are taken into account for purpose of leave  and  retiral  benefits.
The fact that as a result of transfer he is placed  at  the  bottom  of  the
seniority list at the place of transfer does not wipe  out  his  service  at
the place from where he was transferred. The said  services,  being  regular
service in the  grade,  has  to  be  taken  into  account  as  part  of  his
experience for the purpose of eligibility for promotion  and  it  cannot  be
ignored only on the ground that it was not rendered at the  place  where  he
has been transferred …………”

When confronted once again with the similar question in  Scientific  Advisor
to Raksha Mantri and Anr. vs. V.M.Joseph[2], this court relying  on  earlier
decision in Union of India (supra) held that the length of service  rendered
on an equivalent post in another organization before  the  transfer  counts,
for determining the eligibility for promotion though such  service  may  not
count for seniority.
11.   Hence, we allow these appeals, set aside  the  impugned  judgment  and
order passed by the  High  court  as  also  the  aforesaid  order/s  of  the
Tribunal insofar as these  appellants  are  concerned,  and  hold  that  the
appellants are  entitled  to  be  treated  as  eligible  and  qualified  for
promotion in the Kerala region for  the  post  of  EO/AO  in  the  Employees
Provident Fund Organisation.
12.   The interlocutory application for impleadment is rejected.


                                         ..................................J
                                                               [S. A. BOBDE]



                                         ..................................J
                                                          [L. NAGESWARA RAO]
NEW DELHI
APRIL 17, 2017

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[1]   [2]  (1996) 1 SCC 524
[3]   [4]  (1998) 5 SCC 305