COAL INDIA LTD. & ANR.versusNAVIN KUMAR SINGH

470                      [2018]REPORTS
               SUPREME COURT   11 S.C.R. 470             [2018] 11 S.C.R.


A                        COAL INDIA LTD. & ANR.
                                       v.
                           NAVIN KUMAR SINGH
                     (Civil Appeal Nos.6491-6492 of 2014)
B                           SEPTEMBER 25, 2018
             [DIPAK MISRA, CJI, A. M. KHANWILKAR AND
                       DR. D.Y. CHANDRACHUD, JJ.]
              Service Law– Promotion – Inter-company transfer– Past
      service rendered in the parent unit, if to be considered– Respondent,
C
      joined Dankuni Coal Complex (DCC), of the appellant company in
      E-2 Grade on 4th August, 1990 – On respondent’s request he was
      transferred from DCC to Central Mine Planning and Design Institute
      Limited (CMPDIL), a subsidiary of the appellant company, in E-2
      Grade– Respondent joined CMPDIL on 15th May, 1991 – Policy of
D     appellant-Company that an employee would lose his past seniority
      in his existing Grade in the event of an inter-company transfer, if
      the request for transfer was made by the employee himself– Though,
      respondent acquired requisite eligibility (3 years) for promotion to
      E-3 Grade in September, 1993, however, he was promoted to the
      E-3 Grade only vide order dated 12th December, 1994– Appellant
E
      excluded respondent’s work experience at DCC (i.e. 4th August, 1990
      to 14th May, 1991) while considering his eligibility for promotion –
      Writ petition filed by respondent for grant of notional seniority in
      the E-3 Grade w.e.f 12 th November, 1993– Allowed – Held:
      Respondent is not claiming seniority over any person already
F     working in CMPDIL as there was no senior person working in E-2
      Grade when the respondent joined– Limited claim of the respondent
      is that the service rendered by him in the parent unit (DCC) from
      4 th August, 1990 in E-2 Grade be reckoned for the purpose of
      determining his eligibility for promotion to the post of E-3 Grade
      whilst working in CMPDIL– High Court justly accepted the claim
G
      of the respondent that for determination of his eligibility for
      promotion, his length of service in DCC must be reckoned– That
      cannot be confused with the issue of seniority in CMPDIL as they
      are two different factors– Appellant’s policy deals with the latter–
      There is no express stipulation in the said policy to even remotely
H
                                    470
    COAL INDIA LTD. & ANR. v. NAVIN KUMAR SINGH                           471


suggest that on seeking inter-company transfer on personal                A
grounds, the executive concerned would lose even his past service
rendered in the parent unit (DCC) for all purposes– Service rendered
by him in DCC ought to be taken into account for all other purposes,
other than for determination of his seniority in E-2 Grade in the
new company, CMPDIL– Indeed, his seniority in CMPDIL in E-2
                                                                          B
Grade will have to be reckoned from the date of his assumption of
charge on 15 th May, 1991– However, that can have no bearing
while determining his eligibility criterion of length of service in E-2
Grade for promotion to E-3 Grade– No fault in the direction given
by the High Court to assign notional date of promotion to the
respondent in E-3 Grade with effect from 12th November, 1993.             C
      Dismissing the appeals, the Court
       HELD: 1.1 The office order pursuant to which the
respondent joined Central Mine Planning and Design Institute
Limited (CMPDIL) makes it amply clear that the seniority of the
respondent will be reckoned from the date he joins CMPDIL. It             D
is also seen that when the respondent joined CMPDIL on
15th May, 1991, there was no senior person working in E-2 Grade.
On a fair reading of Clause 11 of the policy, there is nothing to
indicate that the transferee would lose his past service rendered
in the parent company for all purposes. The policy of forfeiture of       E
seniority in the parent company, however, is limited to the
executives who seek inter-company transfer on personal grounds.
That is to ensure that no prejudice is caused to the executives
already working in the transferred company. For that reason, the
seniority of the executives seeking inter-company transfer on
personal request is fixed as if he had entered the concerned Grade        F
on the date of assumption of charge in the transferred company.
It has been made explicitly clear that the executive seeking inter-
company transfer on personal grounds will lose his past seniority
in the Grade. No more and no less. Indubitably, the respondent
is not claiming seniority over any person already working in the          G
new company (CMPDIL) before the date on which he assumed
charge thereat on 15 th May, 1991. The limited claim of the
respondent however, is that the service rendered by him in the
parent unit (DCC) from 4th August, 1990 in E-2 Grade be reckoned
for the purpose of determining his eligibility for promotion to the
                                                                          H
472            SUPREME COURT REPORTS                     [2018] 11 S.C.R.


A     post of E-3 Grade whilst working in CMPDIL. The High Court
      justly accepted the claim of the respondent that for determination
      of his eligibility for promotion, his length of service in DCC must
      be reckoned. That cannot be confused with the issue of seniority
      in CMPDIL as they are two different and distinct factors. The
      policy in the form of clause 11 deals with the latter. There is no
B
      express stipulation in the policy – be it clause 11 or any other
      official document – to even remotely suggest that on seeking
      inter-company transfer on personal grounds, the executive
      concerned would lose even his past service rendered by him in
      the parent unit (DCC) for all purposes. In absence of such a
C     stipulation, the claim of the respondent could not have been
      rejected by the department. [Paras 12-14] [479-E-F ; 480-B-G]
            1.2 In the present case, there is no dispute that the
      respondent had rendered service in E-2 Grade on regular basis
      in DCC from where he was transferred to CMPDIL, on personal
D     grounds. The service rendered by him in DCC can be and ought
      to be taken into account for all other purposes, other than for
      determination of his seniority in E-2 Grade in the new company
      i.e. CMPDIL. Indeed, his seniority in CMPDIL in E-2 Grade will
      have to be reckoned from the date of his assumption of charge
      on 15th May, 1991, but that can have no bearing while determining
E     his eligibility criterion of length of service in E-2 Grade for
      promotion to E-3 Grade. For determining the eligibility for
      promotion to E-3 Grade, the service rendered by him in DCC in
      E-2 Grade with effect from 4th August, 1990, ought to be reckoned.
      The view so taken by the High Court commends to this Court.
F     Hence, no fault can be found with the direction given by the High
      Court to assign notional date of promotion to the respondent in
      E-3 Grade with effect from 12 th November, 1993.
      [Para 16] [482-C-E]
             1.3 Further, the Office Memorandum dated 5th June, 1985
G     (which clarified the Policy), does not militate against the
      respondent. It is a different matter that it addresses the difficulty
      expressed about the denial of opportunity of promotion to the
      executives who opted for inter-company transfer. On a fair reading
      of this Office Memorandum, it is discernible that the department
H
    COAL INDIA LTD. & ANR. v. NAVIN KUMAR SINGH                        473


has clarified the position that if the concerned executive has         A
already completed service for a specified period including the
period of service with the old company, would become entitled to
be considered for promotion to the higher Grade. If so, not
granting similar advantage to the executive who opted for inter-
company transfer on personal request and who incidentally enters
                                                                       B
at number one position in the seniority in the new company would
be anomalous. Concededly, what is affected in terms of the policy
for inter-company transfer on personal request, is only the
seniority position in the new (transferred) company – which would
commence from the date of assuming office thereat. By no stretch
of imagination, it can affect the length of service in E-2 Grade in    C
the parent company. The two being distinct factors, neither the
policy nor the office memorandum would be any impediment for
reckoning the period of service rendered by the respondent from
August, 1990 in DCC, albeit a case of inter-company transfer on
personal request. [Para 17] [482-F-H; 482-A-B]
                                                                       D
      Union of India and Ors. v. C. N. Ponnappan (1996) 1
      SCC 524 : [1995] 6 Suppl. SCR 220 : Scientific
      Advisor to Raksha Mantri and Anr. v. V. M. Joseph
      (1998) 5 SCC 305 : [1998] 1 SCR 177 – relied on.

                       Case Law Reference                              E

      [1995] 6 Suppl. SCR 220          relied on      Para 9

      [1998] 1 SCR 177                 relied on      Para 9

     CIVIL APPELLATE JURISDICTION : Civil Appeal                       F
Nos.6491-6492 of 2014.

       From the Judgment and Orders dated 20.05.2010 and 11.12.2013
of the High Court of Jharkhand at Ranchi in LPA No.546 of 2003 and
Civil Review No.68 of 2011 respectively.
                                                                       G
      Anip Sachthey, Ms. Anjali Chauhan, Ms. Ria Sachthey, Advs. for
the Appellants.

      Manish Kumar Saran, Adv. for the Respondent.

                                                                       H
474            SUPREME COURT REPORTS                         [2018] 11 S.C.R.


A           The Judgment of the Court was delivered by
              A. M. KHANWILKAR, J. 1. These appeals emanate from the
      judgment and order dated 20th May, 2010 passed by the Division Bench
      of the High Court of Jharkhand at Ranchi in L.P.A. No.546 of 2003 and
      order dated 11th December, 2013 passed in Civil Review No. 68 of 2011,
B     whereby the High Court upheld the decision of the Single Judge, with
      minor modifications and declared that the past service of the respondent
      in the previous company of the appellant could not be forfeited for all
      purposes in the event of an inter-company transfer on personal grounds
      at his request and dismissed the review petition against the said judgment
      on the ground of unexplained delay.
C
             2. The respondent, a graduate in Chemical Engineering, was
      appointed on 27th June, 1990 in E-2 Grade and joined the same on
      4th August, 1990 in Dankuni Coal Complex (for short ‘DCC’), of the
      appellant company. On a request made by the respondent, the
      Personnel Manager of the appellant company issued a transfer order
D
      being No.C-5A(iii)/51434(Trans)/199 dated 23rd April, 1991 transferring
      the respondent from DCC to Central Mine Planning and Design
      Institute Limited (for short ‘CMPDIL’), a subsidiary of the appellant
      company, in his existing capacity i.e. E-2 Grade. The transfer notice
      made it clear that since the transfer had been made at the instance of
E     the respondent himself, his seniority in the E-2 Grade would be
      reckoned from the date he joined the new organisation, CMPDIL.
      Accordingly, the respondent joined CMPDIL on 15th May, 1991. The
      prevailing policy for determination of seniority of executives on
      inter-company transfers at the time of the joining of the respondent, was
      as follows:
F
            “11. Determination of seniority of executives in E-1 to E-4 grades
            on inter-company transfers
            This issue has two aspects:
            (a) Inter-company transfer effected on administrative grounds:-
G
            (b) Inter-company transfer effected at the request of the
            executive concerned on personal grounds.
               According to the existing system, the officers in E-1 to E-4
            grades belong to the respective company cadres on as-in-where-
H
    COAL INDIA LTD. & ANR. v. NAVIN KUMAR SINGH                            475
               [ A M. KHANWILKAR, J.]

     is basis. Their career growth upto E-5 grade is within the company.   A
     When an executive in these grades moves from one company to
     the other, he gets absorbed in the appropriate cadre of that
     company.
     11.1 The Committee recommends that:
        (i) When an inter company transfer is effected on administrative   B
        grounds the seniority of the executive shall be fixed in the
        company to which he is transferred taking into account his
        date of entry into the grade.
        (ii) When the inter-company transfer is effected on personal
        grounds at the request of the executive concerned, his seniority   C
        in the company to which he is transferred, shall be fixed as if
        he entered the grade on the date of his assumption of charge
        in the new company. In other words, such executive will lose
        his past seniority in the grade.”
      This policy was further clarified by way of an Office                D
Memorandum dated 5th June, 1985, issued by the General Manager
(Personnel) which read as follows:
     “Under the present policy of the company, when the inter-company
     transfer is effected on personal grounds at the request of the
     executive concerned, his her seniority in the company to which        E
     he/she is transferred, is fixed as if he/she entered the grade on
     the date of his/her assumption of charge in the new company and
     the executive loses his/her past seniority in the grade. An issue
     has been raised whether in such cases the period of service in a
     grade put in by the executive in the previous company will also       F
     count towards eligibility for promotion or not.
     2. In this connection, it is clarified that while the name of the
     officer transferred on request will be placed at the bottom of the
     seniority list in his/her grade in the new company when the officer
     immediately senior to his/her in the new company becomes eligible
                                                                           G
     for promotion, say after one year, the transferee will also become
     eligible for consideration for promotion provided he/she put in the
     minimum prescribed grade in the previous company. However, if
     the Officer immediately senior to the transferee in the new
     company has put in less than the minimum prescribed period of
                                                                           H
476             SUPREME COURT REPORTS                          [2018] 11 S.C.R.


A           service, say six months, in the grade the transferor becomes eligible
            for promotion even though the transferee might have put in more
            than the requisite service in the grade prior to his/her transfer.
             3. Pending cases may be disposed of on the basis of the above
      clarification. However, past cases will not be re-opened.
B              This issues with the approval of Competent Authority.”
             3. The respondent claims that in September 1993, the appellant
      company held its departmental promotion committee after which
      several employees were promoted from the E-2 Grade to the E-3 Grade
      but the respondent was overlooked for promotion. The reason given to
C     the respondent was that his transfer to CMPDIL was done at his own
      request and his promotion would be considered only after he completed
      3 (three) years of work experience at CMPDIL, which was the
      requisite period for promotion from E-2 to E-3.
            4. Subsequently, the respondent was promoted to the ‘E-3’ Grade
D     vide order dated 12th December, 1994, which also mentioned that his
      seniority would be decided separately, since he had been promoted
      under the cluster concept in the centralised cadre. This order was
      modified on 2nd January, 1995 to change his designation to Executive
      Engineer (Chemical).
E           5. Post-promotion, the respondent challenged the appellant’s
      decision to exclude his work experience at DCC (i.e. 4 th August, 1990 to
      14th May, 1991) while considering his eligibility for promotion, by filing a
      writ petition being CWJC No.2074/1997 before the High Court of
      Jharkhand praying for grant of notional seniority to him to the post of
F     Executive Engineer (Chemical) in the E-3 Grade with effect from
      12th November, 1993. The Single Judge disposed of the writ petition vide
      order dated 18th November, 1998, by merely directing the appellant
      company to consider the representation of the respondent within 3 (three)
      months from the date of the order.
            6. Thereafter, the Chief General Manager (Personnel) of the
G
      appellant company, after considering the respondent’s representation,
      issued an order on 16th February, 1999, rejecting the same inter alia on
      the ground that the applicable policy at the time of considering the
      respondent’s seniority was that an employee would lose his past
      seniority in his existing Grade in the event of an inter-company transfer,
H
     COAL INDIA LTD. & ANR. v. NAVIN KUMAR SINGH                               477
                [ A M. KHANWILKAR, J.]

if the request for transfer was made by the employee himself and               A
further, as per the office memorandum of 5th June, 1985, since there
was no senior executive above the respondent’s Grade, the question of
the application of the said office memorandum did not arise. The said
order reads thus:
      “Shri Singh was transferred from Dankuni Coal Complex, Dankuni           B
      (West Bengal) to CMPDIL, Ranchi vide Order
      No.:C-5A(iii)51434(Trans)/109 dated 23rd April 1991 on his own
      request. In terms of policy followed prior to 1st April 1993 (i.e. the
      date from which the career growth of all executives was
      centralized at CIL level), one had to lose his past seniority in his
      existing grade in the event of his transfer from one company to          C
      another on “request basis”. This policy was followed very strictly
      without any exception.
      The Office Memorandum dated 5th June 1985 only clarifies with
      regard to procedure to be followed for consideration of such
      transferred executive, when his immediate senior executive in            D
      the transferee company is considered for promotion. In the case
      of Shri Singh since there was no senior executive above him the
      question of application of the above O.M. dated 5th June 1985
      could not arise. Moreover, Shri Singh having not been completed
      the requisite period in the transferee company was not eligible for      E
      consideration of his promotion as the period of service rendered
      in the previous company can not be taken into consideration for
      the purpose of eligibility for promotion.
      In the premises, I am of the view that there is not merit in the
      representation of Shri Singh (the petitioner) and his request for        F
      the grant of Notional Seniority is rejected.”
      7. Aggrieved by the aforementioned decision, the respondent filed
a fresh writ petition being CWJC No.4177 of 2000 before the High
Court of Jharkhand, inter alia, seeking to quash the order dated
16th February, 1999, and praying that he may be granted notional               G
seniority with effect from 12th November, 1993 in the E-3 Grade with all
consequential benefits. This writ petition was allowed by the learned
Single Judge vide order dated 20th June, 2003 who observed that
although the respondent may have been at the top in the seniority list of
CMPDIL when he joined in that company, at the time of consideration
                                                                               H
478                SUPREME COURT REPORTS                         [2018] 11 S.C.R.


A     of promotion to E-3 Grade, his service at DCC could not be overlooked
      and therefore, denial of promotion to him in E-3 Grade at the time was
      incorrect and accordingly, the appellant company was directed to revise
      the date of promotion of the respondent.
             8. The appellant company challenged the order of the learned
B     Single Judge by way of LPA No.546/2003. Pending the outcome, the
      respondent was promoted from E-3 to E-4 Grade and then from E-4 to
      E-5 Grade. On 20th May, 2010, the Division Bench disposed of the
      appellant’s appeal, observing that there was nothing in the policy to
      indicate that past service in the previous company, from which transfer
      has been sought, could be forfeited for all purposes, except that on the
C     strength of that past service he would not be entitled to supersede the
      employees working in the new company in the grade in which he had
      joined.
            9. Aggrieved, the appellant has approached this Court by way of
      special leave, asserting that the claim of the respondent is in the teeth of
D     the policy under which he was transferred to CMPDIL at his
      request and that the Office Memorandum dated 5th June, 1985 had no
      application to the fact situation of the present case. Resultantly, the learned
      Single Judge as well as the Division Bench committed manifest error in
      granting relief to the respondent. The respondent, on the other hand, has
E     supported the reasons recorded by the learned Single Judge and the
      Division Bench. It is submitted that the High Court noted the distinction
      between the matter of seniority and that of the length of service. The
      policy invoked by the appellant merely governs the matter of seniority
      and does not affect the length of service as such. Reliance has been
      placed on the decisions of this Court in Union of India and Ors. Vs.
F     C.N. Ponnappan1 and Scientific Advisor to Raksha Mantri and Anr.
      Vs. V.M. Joseph2. It is submitted that the appeals are devoid of merit
      and ought to be dismissed.
            10. We have heard Mr. Anip Sachthey, learned counsel for the
      appellants and Mr. Manish Kumar Saran, learned counsel for the
G     respondent.
            11. The indisputable position emerging from the chronology of
      events, is that the respondent was appointed on 27th June, 1990 in E-2
      Grade in DCC and joined that post on 4th August, 1990. He requested
      1
          (1996) 1 SCC 524
H     2
          (1998) 5 SCC 305
     COAL INDIA LTD. & ANR. v. NAVIN KUMAR SINGH                           479
                [ A M. KHANWILKAR, J.]

for a transfer from DCC to CMPDIL, which is a subsidiary of the            A
appellant company. That request was considered favourably as a result
of which the respondent joined CMPDIL in existing E-2 Grade,
pursuant to Office Order dated 23rd April, 1991. The said Office Order
reads thus:
                     “COAL INDIA LIMITED                                   B
                        “COAL BHAWAN”
         10-NETAJI SUBHAS ROAD, CALCUTTA-700001
     No.C-5A(iii)/51434 (Trans)/199          Dated: 23.04.1991
                             ORDER
          Shri Navin Kumar Singh, Chemical Engineer in E-2 grade           C
      presently posted at Dankuni Coal Complex is hereby transferred
      in his existing capacity/grade to Central Mine Planning & Design
      Institute Limited, till further orders.
      2. On being released from Dankuni Coal Complex, Shri Singh
      will report to Director –in –Charge, CMPDI, Ranchi, for further      D
      assignment in that company.
      3. Since the transfer is being made at his own request Shri Singh
      will not be entitled to any transfer TA/Settling in Allowance etc.
      and his seniority in E-2 grade as Chemical Engineer will be
      reckoned from the date he joins in CMPDI.                            E
      4. This issues with the approval of Competent Authority.
                                                       Sd/-
                                                 (A.K. Mukherjee)
                                              Personnel Manager (EE)”
                                                                           F
       12. Indeed, the office order makes it amply clear that the
seniority of the respondent will be reckoned from the date he joins
CMPDIL. It is also seen that when the respondent joined CMPDIL on
15th May, 1991, there was no senior person working in E-2 Grade. The
question is: whether the policy regarding the determination of inter-se
seniority of the executives on inter-company transfers would come in       G
the way of the respondent for reckoning his eligibility for promotion to
the higher Grade i.e. E-3 Grade, whilst in the new transferred company
(CMPDIL)? As the respondent was initially appointed in E-2 Grade on
4th August, 1990 in DCC on completion of 3 years in September, 1993,
                                                                           H
480             SUPREME COURT REPORTS                          [2018] 11 S.C.R.


A     he acquired the requisite eligibility for being considered for promotion to
      the next grade i.e. E-3 Grade. However, the department did not
      consider the respondent’s case for promotion to E-3 Grade in the
      departmental promotional committee held at the relevant time. Instead,
      he was considered and promoted to E-3 Grade only in December, 1994.
B            13. On a fair reading of clause 11 of the policy, there is nothing to
      indicate that the transferee would lose his past service rendered in the
      parent company for all purposes. The policy of forfeiture of seniority in
      the parent company, however, is limited to the executives who seek
      inter-company transfer on personal grounds. That is to ensure that no
      prejudice is caused to the executives already working in the transferred
C     company. For that reason, the seniority of the executives seeking
      inter-company transfer on personal request is fixed as if he had entered
      the concerned Grade on the date of assumption of charge in the
      transferred company. It has been made explicitly clear that the
      executive seeking inter-company transfer on personal grounds will lose
D     his past seniority in the Grade. No more and no less.
             14. Indubitably, the respondent is not claiming seniority over any
      person already working in the new company (CMPDIL) before the date
      on which he assumed charge thereat on 15th May, 1991. The limited
      claim of the respondent however, is that the service rendered by him in
E     the parent unit (DCC) from 4th August, 1990 in E-2 Grade be reckoned
      for the purpose of determining his eligibility for promotion to the post of
      E-3 Grade whilst working in CMPDIL. The High Court justly accepted
      the claim of the respondent that for determination of his eligibility for
      promotion, his length of service in DCC must be reckoned. That cannot
      be confused with the issue of seniority in CMPDIL as they are two
F     different and distinct factors. The policy in the form of clause 11 deals
      with the latter. There is no express stipulation in the policy – be it clause
      11 or any other official document – to even remotely suggest that on
      seeking inter-company transfer on personal grounds, the executive
      concerned would lose even his past service rendered by him in the
G     parent unit (DCC) for all purposes. In absence of such a stipulation, the
      claim of the respondent could not have been rejected by the department.
      This proposition is reinforced from the dictum in C.N. Ponnappan
      (supra), which has been noted with approval in V.M. Joseph (supra).
      The two-Judge Bench of this Court in C.N. Ponnappan (supra),
      observed as follows:
H
    COAL INDIA LTD. & ANR. v. NAVIN KUMAR SINGH                                481
               [ A M. KHANWILKAR, J.]

      “4. The service rendered by an employee at the place from where          A
      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 the
      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
                                                                               B
      of transfer does not wipe out his service at the place from where
      he was transferred. The said service, 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. In our              C
      opinion, the Tribunal has rightly held that the service held at the
      place from where the employee has been transferred has to be
      counted as experience for the purpose of eligibility for promotion
      at the place where he has been transferred.”
                                                     (emphasis supplied)       D
      15. This view has been restated by another two-Judge Bench of
this Court in V. M. Joseph (supra), in paragraph 6 which reads as
follows:
      “6. From the facts set out above, it will be seen that promotion
      was denied to the respondent on the post of Senior Storekeeper           E
      on the ground that he had completed 3 years of regular service as
      Storekeeper on 7-6-1980 and, therefore, he could not be promoted
      earlier than 1980. In coming to this conclusion, the appellants
      excluded the period of service rendered by the respondent in the
      Central Ordnance Depot, Pune, as a Storekeeper for the period            F
      from 27-4-1971 to 6-6-1977. The appellants contended that, since
      the respondent had been transferred on compassionate grounds
      on his own request to the post of Storekeeper at Cochin and was
      placed at the bottom of the seniority list, the period of 3 years of
      regular service can be treated to commence only from the date
      on which he was transferred to Cochin. This is obviously                 G
      fallacious inasmuch as the respondent had already acquired the
      status of a permanent employee at Pune where he had rendered
      more than 3 years of service as a Storekeeper. Even if an
      employee is transferred at his own request, from one place
                                                                               H
482             SUPREME COURT REPORTS                          [2018] 11 S.C.R.


A           to another on the same post, the period of service
            rendered by him at the earlier place where he held a
            permanent post and had acquired permanent status,
            cannot be excluded from consideration for determining his
            eligibility for promotion, though he may have been placed
            at the bottom of the seniority list at the transferred place.
B
            Eligibility for promotion cannot be confused with seniority
            as they are two different and distinct factors.”
                                                             (emphasis supplied)
             16. In the present case, there is no dispute that the respondent
C     had rendered service in E-2 Grade on regular basis in DCC from where
      he was transferred to CMPDIL, on personal grounds. The service
      rendered by him in DCC can be and ought to be taken into account for
      all other purposes, other than for determination of his seniority in E-2
      Grade in the new company i.e. CMPDIL. Indeed, his seniority in
      CMPDIL in E-2 Grade will have to be reckoned from the date of his
D     assumption of charge on 15th May, 1991, but that can have no bearing
      while determining his eligibility criterion of length of service in E-2 Grade
      for promotion to E-3 Grade. For determining the eligibility for promotion
      to E-3 Grade, the service rendered by him in DCC in E-2 Grade with
      effect from 4th August, 1990, ought to be reckoned. The view so taken
E     by the High Court commends to us. Hence, no fault can be found with
      the direction given by the High Court to assign notional date of
      promotion to the respondent in E-3 Grade with effect from
      12th November, 1993.
              17. As regards the Office Memorandum dated 5th June, 1985,
F     the same does not militate against the respondent. It is a different matter
      that it addresses the difficulty expressed about the denial of opportunity
      of promotion to the executives who opted for inter-company transfer.
      On a fair reading of this Office Memorandum, it is discernible that the
      department has clarified the position that if the concerned executive has
      already completed service for a specified period including the period of
G     service with the old company, would become entitled to be considered
      for promotion to the higher Grade. If so, not granting similar advantage
      to the executive who opted for inter-company transfer on personal
      request and who incidentally enters at number one position in the
      seniority in the new company would be anomalous. Concededly, what is
H
     COAL INDIA LTD. & ANR. v. NAVIN KUMAR SINGH                                483
                [ A M. KHANWILKAR, J.]

affected in terms of the policy for inter-company transfer on personal          A
request, is only the seniority position in the new (transferred) company –
which would commence from the date of assuming office thereat. By
no stretch of imagination, it can affect the length of service in E-2 Grade
in the parent company. The two being distinct factors, neither the policy
nor the office memorandum would be any impediment for reckoning the
                                                                                B
period of service rendered by the respondent from August, 1990 in DCC,
albeit a case of inter-company transfer on personal request. As a result,
these appeals must fail.
         18. Accordingly, the appeals are dismissed with no order as to
costs.
                                                                                C

Divya Pandey                                               Appeals dismissed.




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