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Supreme Court of India

G.S.I.C KARMACHARI UNION AND ORS.versusGUJARAT SMALL INDUSTRIES CORPORATION AND ORS.

Citation
1996 INSC 1476
Decided
12 December 1996
Disposal
Disposed off

Holding

The Court held that the reservation policy in promotions must be applied prospectively, making the roster effective from 30 April 1984, and that the impugned resolution seeking retrospective effect from 1 January 1976 is invalid.

Summary

The G.S.I.C. Karmachari Union filed a writ petition under Article 32 challenging the Gujarat Small Industries Corporation's resolution of 29 August 1987 that sought to implement a roster system for reservation in promotions of Scheduled Caste and Scheduled Tribe employees retrospectively from 1 January 1976. The petition questioned the validity of the resolution under Articles 14, 16(1), 16(4), 16(4A), 335 and related constitutional provisions, and whether reservation in promotions could be applied retrospectively. The Court examined the Gujarat Government's policy, the expert committee's recommendation that reservation be given prospective effect, and the subsequent Government resolution of 18 August 1985. It held that the corporation was justified in applying the reservation prospectively, with the roster system effective from 30 April 1984, and that the impugned resolution seeking retrospective effect was not justified. The petition was dismissed, the promotions already made were left undisturbed, and the corporation was directed to operate the roster from 30 April 1984 onward.

Issues considered

  • Whether the resolution implementing reservation in promotions retrospectively from 1976 violates constitutional provisions on equality and reservation.
  • Whether reservation in promotions for SC/ST can be applied only prospectively as per the Gujarat Government's policy and expert committee recommendations.
  • Whether the corporation's resolution is ultra vires in light of the constitutional and statutory framework.

Legislation cited

  • Constitution of Indias. Article 14, s. Article 15, s. Article 16, s. Article 16(4), s. Article 16(4A), s. Article 335, s. Article 38, s. Article 46, s. Article 51A

Subjects

ReservationSC/STPromotionRetrospective effectProspective applicationRoster systemConstitutional lawArticle 16(4)Article 335Affirmative action

Judgment

A            G.S.I.C. KARMACHARI UNION AND ORS.
                              v.
       GUJARAT SMALL INDUSTRIES CORPORATION AND ORS.

                               DECEMBER 12, 1996
B    [K. RAMASWAMY, S.B. MAJMUDAR AND G.T. NANAVATI, JJ.]

          Constitution of India, 1950: Articl~s 14, 15, 16, 38, 46, 5I-A and 335.

          Scheduled Caste-Scheduled Tribe-Reservation in service-Retrospec-
C tivity-Validity of-R.eservation in promotions-Resolution dated 30.4.1984
  providing for reservatim-Resolution dated 29.8.1987 by Respondent-Cor-
  poration deciding to implement the roster system and promotion of Scheduled
  Caste and Scheduled Tribes employees as per the directives and Resolution
  of the Gujarat Government on January 31, 1976 to give effect to the policy of
D reservation in promotion in all Class-I, Class-II and Class-III posts in grades
  or services in which the element of direct recrnitment, if any, does not exceed
  50o/rWrit challenging validity-Held in view of the decision of Government
  of Gujarat the respondent-Corporation was justified in passing the Resolution
  for giving effect to the policy of reservation in all posts of classes I to IV from
  April 30, 198~The subsequent impugned Resolution giving effect to ·the
E roster from January 1, 1976, therefore, would not be justified in the light of
   the Resolution passed by the Governments on August 18, 1985-The Corpora-
   tion shall keep operating the roster w.e.f. April 30, 1984 onwards.

           Indra Sawhney v. Union of India & Ors., [19921 Supp. 3 SCC 210,
     referred to.
F
           CIVIL ORIGINAL JURISDICTION: Writ Petition (C) No. 986 of
     1989..

           (Under Article 32 of the Constitution of India.)
G
            P.K. Manohar for the Petitioners.

           P.S. Poti, Mrs. Neetu Singh, Mrs. H. Wahl, (Sunil Kumar Jain), for
     Jain Hansaria & Co., M.N. Shroff and S. Bhowmick for the Respondents.

H           The following Orde,r of the Court was delivered :
                                          8
                     G.S.LC. KARMACHARI UNION v. GUJ. SMALL INDS. CORPN.                   9

                     This writ petition under Article 32 of the Constitution has been filed A
       ~
--(           challenging the validity of the Resolution dated August 29, 1987
....
              whereunder the respondent-Corporation had resolved to implement the
              roster system and promotion of Scheduled Caste and Tribes employees as
              per the directives and Resolution of the Gujarat Government on January
              31, 1976 to give effect to the· policy of reservation in promotions in all
                                                                                            B
              Class-I, Class-II and Class-III posts in grades or services in which the
              element of direct recruitment, if any, does not exceed 50%. The decision
              on the fitness or unfitness of an officer would be taken by the Departmental
              Promotion Committee which would be constituted by the Departments. A
              100 point roster as per percentages of reservation for Scheduled Castes
              and Scheduled Tribes, to determine the number of vacancies reserved in a         c
              year would be followed. According to the points in the roster, if there are
              any vacancies reserved for each of the two classes mentioned, separate lists
              Would be drawn up of the eligible candidates for each of these categories
              and general candidates and arranged in order of their inter-se seniority in
              the main list. The Scheduled Castes and Scheduled Tribes employees
                                                                                            D
              should be adjudged by the Departmental Promotion Committee separately
       ~      in regard to their fitness. In paragraph 4 of the Resolution, it was stated
              that these orders would take effect from January 1, 1976.

                     On April 30, 1984, the respondent-Board passed a Resolution that
              in Article 16(4) and Article 335 of the Constitution provision has been          E
              made for backward classes for appointment and, therefore, there should
              be no difficulty in providing reservation in appointment to posts to giy,e the
              benefit to the backward classes; and that the percentage of reservation as
              is kept in the Government service would be applicable to the Corporation.
              As per the orders of the Board, for every type of recruitment at every stage     F
       ....   or service or place, a separate roster register, as per the prescribed format,
              is to be kept. The Board had given orders for filling up the posts as per
              the percentage for Scheduled Castes and Scheduled Tribes. But for intro-
              duction of roster system in the direct recruitment or promotion the Cor-
              poration had not yet issued any orders. The Corporation, therefore,
              resolved to give effect to the objectives of the Government and authorised       G
              the Managing Director to follow the roster system scrupulously as per the
              directions of the Government in IMPD, vide letter dated September 29,
       ~
              1983 for class-I to class-IV employees which are as under :
  ~-
                      "l) For SC/ST                                                            H
    10                      SUPREME COURT REPORTS[1996] SUPP. 10 S.C.R.

A            (i)    For direct recruitment

             Class I upto Srr Executive's level and Class II, III and IV
             employees.

             (ii) For promotion
B
             Class I upto Executive level and Class II, III and IV employees.

             (2) For Socially and Educationally Backward Class and Physically
                 handicapped.
                                                                                    (

C            (i)    For direct recruitment only

                   Class I, Class II, Class III and Class IV employees."

            Subsequently, they passed the impugned Resolution giving effect to
    the policy of reservation and the roster system w.e.f. 1.1.1976. The question
D   is : from what date the Corporation would give effect to the roster system?

        It is true, as contended by Shri P.S. Poti, learned senior counsel for
  the State, that when the policy of the Government envisaged under Article
  16(4) read with Articles 14 and 16(1) and 335 is given effect to the
  reservation in initial requirement and promotion can be made. But the
E question of retrospectivity of the policy does not arise; what is being done
  is to give effect to the constitutional policy of providing adequate repre-
  sentation to the members of Scheduled Castes and Scheduled Tribes in all
  classes of service or posts where they are not adequately represented.
  Therefore, the arbitrariness does not arise since it is part of the scheme of
  the Constitution. Unless adequate representation is given to the employees
F belonging to Scheduled Castes and Scheduled Tribes in promotions also,
  the adequacy of representation in all classes and grades of service, where
  there is no element of direct recruitment cannot be achieved. Obvious,
  therefore, Article 16(4-A) was brought on the Constitution by Constitution
  (77th Amendment) Act, after the majority judgment of this Court by a
G Bench of 9 Judges in Indra Sawhney v. Union of India & Ors., [1992] Supp.
  3 SCC 210. The Preamble of the Constitution and Article 38 accord social
  and economic justice as fundamental rights to all people in all institutions
  of national level. Article 46 enjoins the State to accord social and economic
  justice to the Scheduled Castes and Scheduled Tribes. Article 51A enjoins
  every citizen to improve excellence individually and collectively so that the
H nation constantly rises to· higher levels, socially, economically and cultural-
              G.S.I.C. KARMACHARI UNION v. GUJ. SMALL INDS. CORPN.              11

     ly. Right to development assured by the Constitution is held to be a A
     fundamental right. So the policy of reservation in the Preamble of the
     Constitution, the fundamental rights under Articles 14, 15(1), 15(4), 16(1),
     16(4), 16(4A), 46 and 335 and the other related articles is to give effect to
     the above constitutional objectives.

            On the facts, it is not necessary for us to go into the question of       B
     retrospectivity for the reason that after the aforesaid Resolution and similar
     other Resolutions by other institutions came to be passed, followed by
     agitation carried on by the anti-reservationists in the State, the Gujarat
it   State Government had constituted an Expert Committee to go into the
     question which had made 11 recommendations for implementation. One of            C
     the recommendations made by the said committee was to give effect to the
     policy of reservation prospectively. ·The Government had accepted the
     recommendation and agreed thus :

               "Orders for implementation of the recommendations of the
               Sadhwani Committee Nos. 5, 6, 9, 10 and 11 will have prospective D
               effect."

            Item 11 relates to giving effect to the roster system prospectively. In
     that view of the matter, the Government having conceded to the claims of
     anti-reservationists and passed the resolution to give effect to the policy of E
     reservation in promotions prospectively, the respondent-Corporation was
     justified in passing the Resolution for giving effect to the policy of reser-
     vation in all posts of classes I to IV from April 30, 1984. The subsequent
     impugned Resolution giving effect to the roster from January 1, 1976,
     therefore, would not be justified in the light of the Resolution passed by
     the Government on August 18, 1985 referred to earlier.                         F
           It is seen that pending writ petition some officers belonging to
     Scheduled Castes and Scheduled Tribes have come to be promoted. Since
     they are only marginal promotions, we do not like to interfere with the
     promotions already made. Subject to sustaining the promotions given to G
     them, there shall be a direction that the Corporation would keep operating
     the roster w.e.f. April 30, 1984 and onwards.

           The writ petition is disposed of accordingly. No costs.

     T.N.A.                                                  Petition disposed of.


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