SH. I.K. SUKHIJA AND ORS.versusUNION OF INDIA AND ORS.

                           SH. I.K. SUKHIJA AND ORS.                                  A
                                           v.
                          UNION OF INDIA AND ORS.

                                    JULY 8, 1997
                                                                                      B
                  (S.C. AGRAWAL AND G.T. NANAVATI, JJ.]


            Service Law-Seniority-Benefit of counting un-interrnpted ad-hoc ser-
     vice for fzxing seniority-Appellants promoted against regular vacancies by
     DPC-Tribunal holding the appointments as stop gap a"angement-Held,
     findings of Tribunal e"oneous-Appellants, entitled to get their seniority from
                                                                                      c
     the dates they were initially promoted.
')
           The Appellants who were originally employed as Junior Engineers in
     CPWD were transferred to P & T (Civil Wing) when it was formed. Though
     they were not paid any deputation allowance, they were absorbed in P & T         D
     (Civil Wing) later. They were promoted on ad-hoc basis as Assistant
     Engineers between 1970 and 1977 and regularised w.e.f. 20.3.1978. At that
     time their inter se seniority was fixed in the grade of Assistant Engineers
     and seniority vis-a-vis direct recruits were prepared and finalised in 1987.
     The seniority list was challenged before the Central Administrative
     Tribunal, Bombay and the Tribunal quashed the list in so far as it               E
     determined seniority between direct recruits and promotions.

           Subsequently a fresh seniority list was prepared in which the date of
     regular appointments was shown as 20.3.1978. The Appellants challenged
     the same before the Principal Bench of the Tribunal and they sought a            F
     direction for counting their uninterrupted and continuous ad-hoc service
     for determining the seniority. The Appellants contended that there was no
     break down of the quota rota rule; that they were appointed again~t regular
     vacancies by DPC and that their appointments were made in accordance
     with the prevailing rules. The Tribunal held that the appointments of            G
     appellants were not only adhoc but also by way of stop gap arrangement
     and the case of the Appellants is governed by proposition 'A' laid down in
     Direct Recruit Class II Engineering Officers Association v. State of
     Maharashtra, [1990] 2 SCC 715 and that they were not entitled to
     continuous officiation !lnd dismissed the O.A.s and upheld the seniority
     ~                                                                                H
                                         627
    628                   SUPREME COURTREPO~TS [1997) SUPP. 1 S.C.R.

A         In the appeal before this Court, the Appellants further submitted
    that the only reason why they were not regularly promoted and their
    promotions had been described as adhoc was the delay on the part of the
    departmelllt in finalising the draft recruitment rule made by them in 1969.
    The Respondents contended that the ad-hoc promotions were made as the
B   construction activity had increased; that they had not undergone the
    required process of selection; that thoufih they had undergone some
    process of selection at the DPC it was only for adhoc service and therefore
    their adhoc service cannot be counted for determining the seniority.

          Allowing the Appeals, this Court
c         HELD : 1. The appellants are entitled to get their seniority counted
    from the dates they were initially promoted as A. Es(E). [637-C]

         2. The Tribunal wrongly came to the conclusion that the appellants
    had not undergone the regular selection process and for that reason their
D   appointments were made on temporary and adhoc basis by way of stop-gap
    arrangement only. [634-C]

           3. The findings of the Tribunal that there is nothing on record to show
    if there existed regular vacancies when the promotions of the appellants
E   were made is clearly erroneous. The minutes of the DPC do not support the
    case of the respondents that appointments of the Appellants were made
    adhoc because they had not undergone regular process of selection. [635-D]

          4. The holding of the Tribunal that the conduct of the appellants in
    offering themselves for the test held for making regular promotions indi-
F   cated that they had not earlier gone through the required process of selec-
    tion and fol' that reason their appointments were ad-hoc is erroneous.
                                                                        [636-B]
        5. T~e promotions of the appellants as A.Es (E) were not contrary to
  any statutory recruitment rules. The appellants were eligible for promotions
G and their cases were duly considered by the DPC. It is not possible to accept
  that the appointments of the appellants as A.Es though temporary and
  adhoc were byway of stop-gap arrangements only. [636-C-E]

          6. The Tribunal holding that the case of Appellants were governed
    by the corontary to the rule stated by this Court as proposition 'A' in Direct
H   Recruits' case is wrong. [636-F]
                             I.K SUKHUAv. U.O.I. [NANAVATI, J.]                 629

             Direct Recruits Class II Engineering Officers' Association v. State of A
        Maharashtra, [1990] 2 SCC 715, referred to.

              CIVIL APPELLATE JURISDICTION                       Civil .Appeal Nos.
        3207-3210 of 1995.

             From the Judgment and Order dated 13/14.9.93 of the Central              B
        Administrative Tribunal, New Delhi in O.A. Nos. 727, 1781/87, 1596/92 and
        304of1988.

             K. Madhava Reddy, Naresh Kaushik and Lalita Kaushik for the
        Appellants.                                                                   C

              R. Venkataramani and Shiv Kumar Suri for the Respondents Nos. 7,
        9, 11 and 21.

              N.N. Goswami, Anjani Aiyangari, C.V. Subba Rao and Anil Katiyar
        for the Respondent Nos. 1-4.                                                  D

                  K.M.K. Nair, Adv. for the Respondent No. 12.

                  The Judgment of the Court was delivered by
           .~"'

             NANAVATI, J. The point involved in these 4 appeals being the same        E
       they were heard together and are disposed of by this common judgment.

                The appellants (in all eleven) started their career as Junior
        Engineers in the Central Public Works Department. On formation of P&T
-·'
..'      (Civil Wing) on 1.7.1963, 'the construction and maintenance work of P&T F
        buildings was taken over from C.P.W.D. The services of the Junior
        Engineers (Elect.) of C.P.W.D. who were earlier looking after the buildings
        of P&T were transferred to the P&T (Civil Wing). Initially, they were
        treated on deputation without any deputation allowance but in 1969 they
        were absorbed in the P&T Department and were also designated as
        Section Officers. They were promoted as Assistant Engineers (Elect.), on G
        ad hoc basis between 1970 to 1977. All of them were appointed as A.Es .
      . (E) on regular basis with effect from 20.3.1978. At that time it was directed
        that their names shall be arranged in order of their seniority in the grade
        of Assistant Engineers. Their seniority vis-a-vis direct recruits was to be
        fixed subsequently.                                                           H
    630                  SUPREME COURT REPORTS (1997] SUPP. :i S.C.R.
A         A provisional seniority list of Assistant Engineers was prepared in
    1986 and finalised in 1987. It was challenged before the Bombay Bench of
    the Central Administrative Tribunal in O.A. No. 373 of 1987. The Tribunal
    quashed it in so far as it determined seniority between direct recruits and
    promotee Assistant Engineers. The department was directed to prepare a
B   fresh seniority list in accordance with O.M. dated 22.12.59 of the Ministry
    of Home Affairs and the observations made in its judgment. Accordingly
    a revised seniority list was prepared and notified on 22.5.92. The new
    seniority list was prepared by following the principle of quota and rota
    prescribed by the said O.M. dated 22.12.59 as th~ Tribunal had held that
    quota rota system had not broken down. In the new seniority list the date
C   of regular appointment of the appellants was shown as 20.3.78.

           The appellants were not satisfied with the new seniority list; and
    therefore, they challenged it before the Principal Bench of the Central
    Administrative Tribunal at New Delhi. The appellants sought a direction
D   to determine their seniority by taking into consideration their
    uninterrupted and continuous ad hoc service. They wanted this relief even
    if there was break down of the quota rota rule. They had also prayed for
    other consequential reliefs. The contention of the appellants was that there
    was no break down of the quota rota rule, that they were appointed against
    regular vacancies on their being found fit and suitable by Departmental
E   Promotion Committee and that their appointments were made in
    accordance with the rules prevailing th~n.

        The Tribunal, after taking into consideration the reasons for making
  ad hoc appointments of the appellants and the procedure followed for that
F purpose, the orders of their appointments, proceedings of the meeting of
  the D.P.C. in February-March 1978 pursuant to which the regular
  appointments. were made and conduct of the appellants in that they had
  offered themselves for the test held for making regular promotions, came
  to the conclusion that the appointments of the appellants were not only ad
  hoc but also by way of stop gap arrangements in order to meet with the
G exigencies of service due to heavy constructional activity undertaken by the
  P&T {Civil Wing) at the relevant time. The Tribunal also held that the
  decision of the Bombay Bench of the Tribunal in O.A. No. 373 of 1987
  having become final and conclusive it had to proceed on the basis that
  there was no break down of the quota and rota rule. On these premises ·
H the Tribunal further held that the case of the appellants is governed by
                  LK. SUKHIJA v. U.O.L (NANAVATI, J.]                   631

proposition 'A' laid down in Direct Recrnit Class II Engineering Officers'     A
Association v. State of Maharashtra, (1990] 2 SCC 715 and, therefore, they
are not entitled to the benefit of continuous officiation for the purpose of
considering their senio~ity. The Tribunal also examined the case of the
appellants with reference to proposition 'B' laid down in that case. As the
period of service rendered by the appellants as ad hoc Assistant Engineers     B
varied from 1 to 8 years only it held that the period cannot be regarded as
sufficiently long so as to entitle them to count it for the purpose of their
seniority, particularly when between 1975 and January 1978 they had
prevented the department from holding the test for regular selection under
the 1975 Rules. The Tribunal also held that the appellants were not entitled
to such a benefit either on the basis of the decision in Keshav Chandra        C
Joshi v. Union of India, (1992] Supp. 1 SCC 272 or on the basis of the
decision in State of West Bengal v. Aghore Nath, JT (1993) 2 SC 598. The
Tribunal dismissed the O.As. filed by the appellants and upheld the
seniority list prepared by the department. Hence these appeals.
                                                                               D
      Before we consider the rival submissions, certain facts which are not
in dispute may be stated. On 1.7.63 P&T (Civil Wing) was formed by taking
over the construction and maintenance work of P&T buildings from
C.P.W.D. Some J.Es.(E) of C.P.W.D. who were handling the said work
were also transferred to the P&T (Civil Wing). Initially, they were treated
as on deputation without any deputation allowance but in 1969 they were E
absorbed in the P&T Department. From 1964 onwards the P&T
Department had also started its own recruitment to the grades of J .Es.(E)
and A.Es.(E). Though there were recruitment rules for the post of J .E.(E)
there was no provision for absorption of J .Es., brought on transfer· in that
cadre. There were no recruitment rules for the posts of Assistant Engineer F
(E). For the first time in 1969 Draft Recruitment Rules for
Communications Electrical Engineering Service Class II were framed by
the P&T Department. The post of Assistant Engineer(E) was a Class II
post in Communications Electrical Engineering Service. These draft rules
were not prepared in exercise of any statutory power. They provided filling G
up of the vacant posts in the grade of Assistant Engineers Class II in the
ratio of 50:50 i.e. 50% by direct recruitment and 50% by promotion.
Promotions were to be given on the basis of recommendations made by the
Departmental Promotion Committee by selecting the candidates on merits.
The eligibility criteria was five years' approved service in case of graduates
and 8 years' approved service in case of non-graduates. It could be relaxed H
    632                  SUPREME COURT REPORTS (1997] SUPP.1 S.C.R.

A up to three years in case of graduates and six years in case of
    non-graduates. Rule 5 also gave power to the Government to relax any
    provision to such extent as was found necessary to ensure satisfactory
    working or to remove inequitable results. Even though the draft rules were
    framed in 1969 they could not be finalised till 1975. No regular
B   appointments of Assistant Engineers were made between 1970 and 1975
    because the rules could not be finalised. I~ 1975 rules called 'The Posts
    and Telegraphs Civil Engineering (Electrical Gazetted Officers) Rules
    1975' were framed under Article 309. Even thereafter no regular
    promotions were made till 1978 as the departmental qualifying examination
    which was a pre-requisite for promotion could not be held till that year.
C   Thus all the promotions, including those of the appellants, were made only
    on ad hoc basis.

        What has been submitted on behalf of the appellants is that though
  in the letters of their appointments as A.Es.(E) it was stated that their
D appointments were 'on purely ad hoc basis' that was not by way of stop-gap
  arrangement made for the purpose of meeting with some urgent
  administrative exigencies. They were eligible for promotion and their
  merits were duly considered by the D.P.C. When they were promoted as
  A.Es.(E) regular vacancies in the promotion quota were available.
  Therefore, the only reason why they were not regularly promoted and their
E promotions were described as ad hoc was the delay on the part of the
  Department in finalising the draft recruitment rules. On the other hand it
  was contended on behalf of the respondents that the ad hoc promotions of
  the appellants were made as the construction activity had increased
  considerably and pending finalisation of the recruitment rules they could
F not have been regularly promoted. They had also not undergone the
  required process of selection in view of the criteria of merit. Though they
  had undergone some process of selection at the hands of the D.P.C. that
  was only for the purpose of promoting them on ad hoc basis. Therefore,
  they cannot claim the benefit of their ad hoc service as A.Es. for the
  purpose of determining their seniority in that grade.
G
          The department could not produce any record, as it was not
    available, to show what was the position between 1964 and 1969 regarding
    recruitment to the cadre of A.E.(E), how the appellants were absorbed in
    the cadre of J .Es. and under what circumstances they came to be promoted
H   on ad hoc basis. The only material which throws some light and which has
                   LK.SUKHIJAv. U.O.I. [NANAVATI,J.]                        633

been brought on record of these cases is (1) two letters dated 1.6.70 and A
8.10.71 regarding filling up of some vacancies of Assistant Engineers(E) by
promotion (2) minutes of the meeting of the D.P.C. held in
February-March 1978 and (3) letter dated 22.8.1977 written by the U.P.S.C.
to the Government.

      In the letter dated 1.6.70 it is stated that "some vacancies of the          B
Assistant Engineers (Elec.) in the Posts & Telegraphs Civil Wing are to be
fiUed by promotion and the Departmental Promotion Committee will be
held shortly to select suitable officials for promotion. The crucial date for
relaxing service requirement for this Departmental Promotion Committee
would be First July, 1970. It is proposed to consider the officials under the      C
relaxed service requirement i.e. three years for graduates and 6 years for
non-graduates." After stating so he directed the Superintending Engineer
to furnish particulars of all Section Officers who were eligible for
consideration. This letter refers to the draft recruitment rules made for
Communication Electrical Engineering Service Class II. It also refers to           D
the eligibility criteria contained in the said rules. A similar letter was
written, except the relaxation part, by the Assistant Director General on
8.10.71 to the Superintending Engineers of New Delhi, Bombay and
Calcutta. Both these letters make it clear that though the draft recruitment
rules had not been finalised the promotions in 1970 and thereafter were
made in accordance with the said rules.                                            E

        The appellants in their applications before the Tribunal had asserted
that the D.P.C. had made the selection on regular basis. However, there is
nothing on record to show in which manner the selection was made by it.
It appears that the D.P.C. had followed some process of selection to find          F
out their comparative merits because some persons senior to the appellants
though considered were not recommended for promotion and the merit
list was not prepared according to the seniority of the candidates selected.
It is, however, significant to note that the draft rules of 1969 did not contain
any provision prescribing how selection was to be made by the D.P.C. They          G
did not contain any requirement of passing an examination like
departmental qualifying examination. The Post and Telegraph (Civil
Engineering Electrical Gazetted Officers) Recruitment Rules, 1975 which
came into force on 5.4.75 prescribed for the first time passing of the
departmental qualifying examination as a condition for promotion to the
grade of A.E.(E). There was no rule which permitted and prescribed                 H
    634                   SUPREME COURT REPORTS [1997] SUPP. lS.C.R.

A procedure for making of ad hoc appointments. Even otherwise also there
    was no separate procedure prescribed for making such ad hoc
    appointments. In fact, the only reason why the appointments of appellants
    were described as ad hoc was that the draft recruitment rules were pending
    consideration and were not finalised.

B        It was contended by the respondents and the finding of the Tribunal
  is also that the appellants had not undergone any regular selection process
  as they had not passed the required qualifying examination. As stated
  earlier there was no requirement of passing a departmental qualifying
  examination for promotion as A.E.(E) till the year 1975. Only thing stated
C in the draft rules was that the post of A.E. was a selection post. This aspect
  has been completely missed by the Tribunal. Therefore it wrongly came to
  the conclusion that the appellants had not undergone the regular selection
  process and for that reason their appointments were made on temporary
  and ad ho~ basis by way of stop-gap arrangement only. Really, the
D appellants were promoted on those terms because the draft rules had not
  been finalised. It is not relevant for this case to consider whether it was
  rightly believed that pending consideration of the Draft Rules no regular
  recruitment could be made. The fact remains that carrying that impression
  the Department thought it proper to promote the appellants only on
  temporary and ad hoc basis.
E
         The next relevant document is the minutes of the meeting of the
  D.P.C. held in February-March, 1978 recorded in connection with
  considering the ad hoc promotees for regular promotion. It refers to the
  taking over of construction work from the C.P.W.D. and formation of P&T
F (Civil Wing). It further records that as the Rules could not be finalised till
  1975 and as heavy constructional activity was undertaken by P&T
  department some J.Es. were promoted to the grade of A.E.s on ad hoc
  basis. As the rules came to be finalised a question of makin3 regular
  promotions to that grade arose and it was for that reason that it had met
G on that day for qmsidering the cases of eligible candidates. The minutes
  further record that according to the Recruitment Rules which came to be
  finalised in 1975, the eligibility criteria was certain number of years' service
  plus passing of the departmental qualifying examination. It is also recorded
  there in that in respect of those who were already promoted as A.E.s on
  ad hoc basis it was decided in consultation with the D.O.P. and U.P.S.C.
H that one time relaxation should be made in favour of those promotees and
                  LK.SUKHUAv. U.O.L [NANAVATI,J.]                         635

instead of taking a written test they should be subjected to only oral test.    A
The D.P.C. considered the C.Rs. of eligible persons, number of vacancies
in each year in promotion quota and recommended who should be
promoted on regular basis from which year. One important thing that
emerges from this minutes is that between 1970 and 1975 there were
regular vacancies in the promotion quota. In 1970 there were as many as         B
8 vacancies. From the other material on record it appears that in between
1970 and 1978 direct appointments on the basis of competitive examination
held by U.P.S.C. were also made. It was possibly for that reason held by
the Bombay Bench of the Centr.al Administrative Tribunal that the quota
rule had not broken down. The department in its counter affidavit has also      C
maintained that the quota rule had not broken down, that it was strictly
followed and that number of vacancies falling under the direct recruitment
quota were regularly intimated to the U.P.S.C. and appointments were
made. It has not been denied that regular vacancies were available in the
promotion quota during those years. Thus the finding of the Tribpnal that
there is nothing on record to show if there existed regular vacancies when      D
the promotions of the appellants were made is clearly erroneous. The
minutes do not support the case of the respondents that appointments of
appellants as A.Es. were made ad hoc because they had not undergone
regular process of selection.
                                                                                E
        In the letter dated 22.8.77 written by the U.P.S.C. to the Government
it is.stated that prior to 1975 no recruitment rules existed for the post of
Assistant Engineers in P&T (Civil Engineering Wing). It further points out
that 1975 Rules did not apply to persons appointed before they came into
force. It further refers to its earlier letter dated 3.3.76 wherein the Ministry F
was advised to consider the question of regular absorption of existing
incumbents of various posts in consultation with the Commission. It then
pointed out that the 1975 Rules did not contain any provision for absorp-
tion of Junior Engineers who were taken over on transfer from the
C.P.W.D. The said rules also did not contain any provision for regularisa-
tion of those incumbents who were holding the posts on ad hoc basis. It G
was, therefore, suggested to amend the rules and provide for absorption of
the then existing employees in their respective grades. It appears from the
order dated 7.1.78 passed by the P&T Department (Civil Wing) that after
considering the question of regularisation of the cadres of A.E.
(Civil/Elect) it was decided that "in view of the need to regularise the cadre H
    636                  SUPREME COURT REPORTS [1997] SUPP. 1 S.C.R.

A of A.E.(Civil/Elect) expeditiously, the Departmental qualifying examina-
  tion provided for in the Recruitment Rules for the grade of A.E.
  (Civil/Elect) may be held orally this time only". What is to be noted from
  this letter and the order dated 8.1.78 is that though the appellants and
  similarly situated J.Es. were absorbed by the P&T Department (Civil
B Wing) in its service their regular absorption in .the cadre of J.Es.(E) had
  not taken place and it was for that reason that they were required to pass
  the examination contemplated by the 1975 Rules. This aspect also has been
  missed by the Tribunal and, therefore, it erroneously held that the conduct
  of the appellants in offering themselves for the test held for making regular
  promotions indicated that they had not earlier gone through the required
C process of selection and for that reason their appointments were ad hoc.

         What emerges from the above discussion is that the promotions of
  the appellants as A.Es.(E) were not contrary to any statutory recruitment
  rules. Even if we proceed on the basis that in absence of statutory rules
D the draft recruitment rules of 1969 were applicable, what we find is that
  the appellants were eligible for promotions and their cases were duly
                                                                                  [
  considered by the D.P.C. They were promoted after they were found
  suitable by the D.P.C. and their promotions were made according to thefr
  placement in the merit list and not according to their seniority. When the
  appellants were promoted, though on ad hoc basis, clear vacancies were
E available in the promotion quota. The only reason for making their ap-
  pointments as temporary and ad hoc was that the draft recruitment rules
  could not be finalised till 1975. There was no unusual spurt in the construc-
  tion activity between 1970 and 1977 which necessitated giving of urgent
  temporary promotions. For all the reasons stated above, it is not possible
  to accept that the appointment of the appellants as A.Es., though tem-
F porary and ad hoc, were by way of stop-gap arrangements only.

        The Tribunal was, therefore, wrong in holding that the case of the
  appellants was governed by the corollary to the rule stated by this Court
  as Proposition 'A' in Direct Recruits case (supra). The appellants are in a
G better position than the situation contemplated by Proposition 'B' in that
  case. If the appointees contemplated by Proposition 'B' are held entitled
  to the benefit of the period of officiating service we see no reason why the
  appellants should not be held entitled to such a benefit. The learned
  counsel for the respondents had relied upon the decisions of this Court in
  A.P.M. Mayakutty v. Secretary, Public Se1vice Department, (1977) 2 SCR 937,
H D.N. Aganval v. State of Madhya Pradesh, (1990) 2 SCR 131 and Masood
                  I.K. SUKHIJA v. V.O.I. [NANAVATI, J.]                 637

Akhtar Khan v. State of Madhya Pradesh, (1990] 4 SCC 24 but they have no A
application to the facts of these cases. In the first two cases it was found
by this Court that the appointments were ad hoc and by way of stop-gap
or emergency arrangement and, therefore, the appointees were not entitled
to the benefit of the period of their ad hoc service for the purpose of
counting their seniority. In Masood Akhtar Khan's case (supra) it was held     B
that the appointments were not made in accordance with the recruitment
rules.

       We, therefore, allow these appeals, set aside the judgment of the
Tribunal and hold that the appellants are entitled to get their seniority
counted from the dates they were initially promoted as A.Es.(E). In view       C
of the facts and circumstances of the case there shall be no order as to
costs.

V.M.                                                      Appeals allowed.