STATE BANK OF INDIA SCHEDULED CASTE/TRIBE EMPLOYEES WELFARE ASSOCIATION AND ANR.versusSTATE BANK OF INDIA AND ORS.

      STATE BANK OF INDIA SCHEDULED CASTE!fRIBE                                 A
       EMPLOYEES WELFARE ASSOCIATION AND ANR.
                           v.
             STATE BANK OF INDiA AND ORS.

                             APRIL 24, 1.996
                                                                                B
           {A.M. AHMADI, C.J., SUJATA V. MANOHAR
                    AND B.N. KIRPAL, JJ.]

     Service Law:
                                                                                c
      Promotion-Reservation-State Bank of India Circular dated
28.7.1983-Directed maximum reservations in any given year not to exceed
50% of vacancies/promotions--Held: not violative of A1ticle 16 of Constitu-
tion.

     Promotion-Reservation-Vacancies reserved for SC/ST employees-              D
Remained unfilled even after carrying forward for three years-State Bank of
India Circular dated 3.4.1978-Directed such reservations as having
lapsed--Held: it was a valid direction.

      Promotion-Reservation-Reserved vacancies---Lapse of-Due to non-
availability of candidates in reserved category fulfilling prescribed service
                                                                                E
nonns--Subsequently service nonns relaxed--Held: The lapsed vacancies can
not be revived.

      The respondent-Bank bad issued a circular dated 3.4.1978 setting
out a promotion scheme in which reservations of 15% and 7-1/2% were F .
made in favour of Scheduled Cash~ and Scheduled Tribe Employees. The
number nf reserved vacancies which could not be filled should be carried
fonvard frotn one year to the next year upto a period of three years. If such
vacancies could not be filled at the end of the third year, the reservations
would lapse. Sernce norms were also relaxed in the case of SC/ST
employees-Petitioners. As there were backlogs in promotions with regard G
to SC/ST employees, the respondent i!>sued a circular dated 28.7.1983
relaxing the service norms in the case of SC/ST candidates. Tltis circular
further stipulated that the maximum reservations in any given year should
not exceed 50% of the vacancies/promotions. The circular also provided
that service norms for the reserved category could be relaxed to 5 years of H
                                    719
    720                    SUPREME COURT REPORTS [1996) SUPP. 1 S.C.R.

A   service. The service norms could be reduced even further with the sanction
    of the Central office of the respondent-Bank. The present petition was tiled
    challenging the said reservation policy.

           On behalf of the petitioners-employees it was contended that in the
    light of the subse<Jnent relaxation in service norms. granted by the circular
B   of28.7.1983, which was in excess of the relaxation originally granted under
    the circular of 3.4.1978, the lapsed vacancies should be retrospectively
    filled; and that the direction that the maximum reservation in any given
    year should not exceed 50% was violative of Article 16 of the Constitution.

          Dismissing the petition, this Court
c
          HELD : 1.1. The scheme formulated by the State Bank of India under
    the two circulars of3rd April, 1978 and 28th of July, 1983 cannot be faulted.
                                                                         [726-D]
          Akhil Bhwt6'a Soshit Karamcltwi Sangh (Railway) Represented by its
D
    Assistant General Secretwy on behalf of the Association v. Union of India &
    Ors., [1981] 2 SCR 185, relied on.

           1.2. In the first place any relaxation granted in favour of Scheduled
    Caste and Scheduled Tribe employees in respect of service norms is a
E   matter of policy. Undoubtedly, Article 16(4) enables the Government to
    make reservations for Scheduled Castes and Scheduled Tribes either at the
    initial st?.ge of recruitment or at the stage of promotion. [726-F]

         CA. Rajendran v. Union of India & Ors., [1968] 1 SCR 721 and P &
    T Scheduled Caste/T1ibe Employees' Welfare Association (Regd.) & Ors. v.
F   Union of India & Ors., [1988] 4 SCC 147, relied on.

          2. In the present case, reservation has been made by the State Bank of
    India at the promotional stage in the manner which is set out in the two
    circulars. These circulars have been applied at the relevant times. The circular
G   of28.7.1983 gave a further relaxation in service nonns exceeding the relaxation
    prescribed in the tirst circular of 3.4.1978. As a result, service norms for the
    reserved category could be relaxed to 5 years of service. The circular also gave
    the power to relax the service norms even further, but with the sanction of the
    Central Office of the State Bank of India. This is not a relaxation which can
    be applied retrospectively. It becomes available from the date when it is granted
H   and is not a matter of right. It would, therefore, be very difficult to rf'late
                                                                                      (

    S. IU SC;ST E/l.fPLOYEES WELFARE ASSN. v. S.B.J. [MRS. SUJATA V. MANOHAR .T.]   721

back the relief on the basis of the second circular of28.7.1983 to tlte years 1978        A
to 1983. TI1e resen-ed vacancies in the promotional posts during this period,
if not filled, lapsed after three years as per the scheme framed under the earlier
circular of 3.4.1978. These lapsed vacancies cannot now be revived. [727-B-D]

     National Federation of S.B.J. & Ors. v. Union of India & Ot:1·., [1995]
3 sec 532, f1illowed.                                                                     B

      Syndicate Bank Scheduled Castes and Scheduled Tribes Employees
Association (Rcgd.) & Ot:l·. v. Union of India & Ot:~., [1990] Supp. SCC 350,
held inapJ1licable.

      CIVIL ORIGINAL JURISDICTION: Writ Petition (C) Nos. 13671-                          c
72 of 1984 Etc.

       (Under Article 32 of the Constitution of India).

       Ms. Indira Jai Singh, Harish N. Salve, Krishan Mahajan, P.H. Parekh,
N.K. Sahoo, Sanjay Kapoor, Rajiv Kapoor, M.K. Michael and G.S. D
Narayana for the appearing parties.

       The Judgment of the Court was delivered by

       MRS. SUJATA V. MANOHAR, J. Writ Petition Nos. 13671-72 of                          E
1.984 are filed by the State Bank of India Scheduled Caste/Tribe
Employees' Welfare Association, Chandigarh challenging the reservation
policy framed by the State Bank of India reserving certain posts for
employees belongings to Scheduled Castes and Scheduled Tribes on
promotion at the stage of from "Award Cadre" to the Junior Management
Grade Cadre. The same policy was challenged before the Andhra Pradesh                     F
High Court hy some of the employees of the State Bank of India working
\Vith the Hyderabad Circle in Writ Petitions bearing Nos. 7237/82, 10149/84
and 17~6/86 filed in the Andhra Pradesh High Court. Civil Appeal Nos.
3937-39 of 1986 are from the decision of the Andhra Pradesh High Court
~~~~~                                                                                     G
       Since all these matters raise certain common questions they have
been heard together. Prior to 1974 there was no provision for reservation
of vacancies for the Scheduled Castes and Scheduled Tribes in the matter
of inte.rnal promotion in the State Bank of India. In 1974, it was lkcided
to grant a conl:ession to the Scheduled Caste and Scheduled Tribe_                        I-I.
    722                  SUPREME COURT REPORTS [1996] SUPP. 1 S.C.R.

A employees in the matter of promotions. When such promotions were to be
    made on the basis of a selection procedure by way of written tests and
    interviews, it was decided that a concession to the extent of 5% in qualify-
    ing marks in the written test and 10% in the interviews would be given to
    the Scheduled Caste and Scheduled Tribe employees. It was also decided
    that interviews of the Scheduled Caste and Scheduled Tribe employees
B   would be taken in sepa:ate sittings in order to avoid a comparison of their
    standards with the standard of general candidates.

          In January 1978, the Government of India decided to extend the
    policy of reservations to Scheduled Caste and Scheduled Tribe employees
C   in the Nationalised Banks in the matter of promotions. The Government
    of India advised each of the Nationalised Banks to formulate its own policy
    of such reservation on the basis of a scheme already formulated by the
    Reserve Bank of India for its own employees and on the basis of various
    guidelines issued by the Government in this regard in the past from time
D   to time, with such modifications as each bank may consider necessary.
    Accordingly, the State Bank of India issued a Circular dated 3.4.1978
    setting out its scheme of reservation in favour of its Scheduled Caste and
    Scheduled Tribe employees in the matter of promotion. This scheme was
    to be operated with effect from 1st of March, 1978. We are concerned with
    this scheme insofar as it deals with promotions made from the Award
E   Cadre to the Supervising Cadres.

          Under the scheme so framed, a reservation to the extent of 15% is
    made in favour of Scheduled Caste employees and 7-112% in favour of
    Scheduled Tribe employees (Paragraph 1.3). Paragraph 1.6 states that the
F   number of reserved vacancies which cannot be filled should be carried
    forward from one year to the next year upto a period of three years. If at
    the end of the third year, such vacancies reserved for Scheduled Caste and
    Scheduled Tribe employees cannot be filled by suitable employees belong-
    ing to these categories, such reservations will be treated as having lapsed.
    Under Paragraph 2.3, if an adequate number of SCiST employees with
G   normal length of service are not available, service norms will be relaxed in
    the case of SC/ST employees by two years where such service norms for
    general candidates is eight years' service or above. Where the norms is less
    than eight years' service for general candidates, the norm shall be relaxed
    by one year in the case of SC/ST employees. Under Para&rraph 3.3 a
H   common written test will be held for all the candidates including Scheduled
   S.B.I.SC/STEMPLOYEES WELFARE ASSN: v. S.B.ljMRS. SUJATA V. MANOHAR,J.j   723

Caste and Scheduled Tribe candidates. The SC/ST employees will be A
granted relaxation to the extent of 5% of the required qualifying marks.
Under Paragraph 3.4, inten~ews of SC!ST employees who qualify at the
written test will be held in separate sittings in order to avoid comparison
of their standard with the standard of general candidates. The SC/ST
employees will be granted relaxation to the extent of 10% of the required
qualifying marks in the interviews.
                                                                            B

       For the purpose of these promotions, the number of candidates who
are required to be considered is in the ratio of 3 : 1 bearing in mind the
number of vacancies. In order to decide the norm of number of years of
service for being eligible for consideration, the number of candidates in the     C
zone of consideration is first decided on the basis of anticipated vacancies
multiplied by three. In the order of seniority, the requisite number of
candidates in the zone of consideration are decided upon. The service put
in by the last eligible candidate is the minimum service norm. On the basis
of this service norm, relaxation is given to SC/ST employees as per para-         D
graph 2.3 of the Scheme.

       The reservation policy was applied by the State Bank of India from
1.3.1978. In the Year 1978, in the Hyderabad Circle, the posts to be filled
in the promotional cadre were 371., out of which 83 posts were reserved
for SC/ST candidates. The minimum service requirement for eligibility in E
that year for general candidates was 8 years. The norm for SC/ST can-
didates was, therefore, 6 years. In that year no candidate belonging to the
Scheduled Castes and Scheduled Tribes was found available. In the year
1979, 547 posts became available out of which 123 posts were reserved for
Scheduled Caste and Scheduled Tribe candidates. The minimum service F
ftxed for general candidates in that year was 7 year and 8 months. The
service norm for Schelluled Caste and Scheduled Tribe candidates was
accordingly 6 years and 8 months. Yet only 20 employees belonging to
Scheduled Castes and Scheduled Tribes could be promoted. Similar
problems continued upto the year 1982. The main reason for the difficulty
in implementing the circular of 3.4.1978 appears to be non-availability of a G
sufficient number of Scheduled Caste and Scheduled Tribe candidates with
the required years of service for promotion. This may be because reserva-
tions for Scheduled Caste and Scheduled Tribe candidates in recruitment
were made in the :.:tate Bank of India only in the year 1974. Whatever may
be the reason, by 1982-83, the State Bank uf India took remedial measures H
    724                   SUPREME COURT REPORTS 11996] SUPP. I S.C.R.

A   to correct this non-selection of Scheduled Caste and Scheduled Tribe
    employees in the promotional posts.

           State Bank of India, Central Office, is~ued a circular dated 28th of
    July, 1983 to its Chief General Managers in all parts of the country pointing
    out that there were backlogs in promotions with regard to Scheduled Caste
B   and Scheduled Tribe employee~. The Government of India had urged that
    efforts should be made to ensure that reservations of 15% and 7-1/2% for
    SC!ST employees were adhered to. However, the maximum reservations in
    any year should not exceed 50% of the vacancies/promotions. The circular
    urged that the backlog ~hould be cleared expeditiously. Il slated "one
C   possible reason for this shortfall in promotion is the high cut-off point (for
    service norm) arrived at by the circles even laking into account the relaxa-
    tion involved at present.'" It had, therefore, been decided (a) to relax the
    service limit in the case of SC!ST candidates to the extent that enough
    candidates were available to satisfy the ratio of 1 : 3. However, if it became
D   absolutely essential to reduce the service criterion below 5 years, the matter
    should be referred to the Central Office with full particulars. The circular
    also stated that where considered necessary, exclusive te~ts for SC/ST
    candidates should be conducted to clear the backlog of promotions in this
    category.

E         In February 1984, it was decided to hold a special test exclusively for
    Scheduled Caste and Scheduled Tribe employees for promotion to the
    Junior Management Grade Cadre by relaxing the service norms. In view of
    the special test being proposed for Scheduled Caste and Scheduled Tribe
    employees, it was also announced that in the general test which was
p   proposed to be held immediately afterwards, only the candidates belonging
    to the general category would be eligible to participate. This Jed to the
    boycott of the special test by most of the Scheduled Caste and Scheduled
    Tribe employees.

          The employees of the Hyderabad Circle tiled three writ petitions in
G the Andhra Pradesh High Court. These challenged the service norms ftxed
    for Scheduled Caste and Scheduled Tribe employees as too high, resulting
    in frustration of the reservation policy. They also challenged the circular
    of 28th of July, 19/:B insofar as it provided that only 50% of the vacancies
    could be made available in any given year for being filled by Scheduled
H   Caste and Scheduled Tribe employees. The petitions also prayed for
   S.B.L SOSTEMPLOYEESWELFAREASSN. v. S.B.L [MRS. SUJATA V. MANOHARJ.]   725

retrospective relaxation of service norms from 1978 onwards in order that A
all lapsed vacancies could be retrospectively filled. The same contentions
have been raised in th'1 Writ Petitions, filed by the Chandigarh Circle
SC/ST Employees' Welfaje Association. The Andhra Pradesh High Court
upheld the provision in the Circular of 28.7.1983 which provided that a
maximum of 50% of vacancies in any year should be made available for
being filled by Scheduled Caste/Scheduled Tribe employees, to reduce the
                                                                              B
backlog of reserved vacancies. The High Court further held that the service
norms for Scheduled Caste and Scheduled Tribe employees should be
reduced to five years so that sufficient number of candidates would be
available in the zone of consideration for filling up the reserved vacancies.
The High Court correspondingly fixed the service norms for general can-        c
didates at six years. The State Bank of India has come in appeal before us
under a certificate of fitness granted by the High Court.

       During the pendency of these matters, under an interim order of this
court dated 22.11.1985, it was directed that no posts meant for Scheduled D
Caste and Scheduled Tribe categories should be allowed to lapse. As a
result, all vacancies which are reserved for Scheduled Caste and Scheduled
Tribe candidates are now being duly lilled in. ln fact; at one stage it seems
to have been the grievance of the Scheduled Caste and Scheduled Tribe
employees that by r~duction of service norms (as per the High Court's
order) now far too many Scheduled Caste and Scheduled Tribe employees E
are within the zone of consideration for promotions. Directions were
sought from the Andhra Pradesh High Court to keep the ratio of eligible
Scheduled Caste and Scheduled Tribe candidates at 3 : 1 depending upon
the number of vacancies and fix service norms accordingly. This seems to
indicate that the anomalies in working out the reduced norms for selection
of Scheduled Caste and Scheduled Tribe employees in the matter of
                                                                              F
promotion to the JMG cadre have been ironed out.

      Ms. Jaising, learned counsd for the employees contends that from
1978 onwards and until a further relaxation of service norms was provided
for under the circular of 28.7.1983, various unfilled vacancies reserved for G
Scheduled Caste/Scheduled Tribe employees lapsed after the expiry of
three years. She contends that these vacancies should not be allowed to
lapse. These lapsed vacancies should be filled in retrospectively on the
basis of subse.quent relaxation granted by the circular of 28.7.1983. It is also
contended on behalf of the employees that the direction in the circular, H
    726                    SUPREME COURT REPORTS [1996] SUPP.l S.C.R.

A that in any given year, not more than 50% of the vacancies should be
    available for being filled in by Scheduled Caste/Scheduled Tribe can-
    didates, is violative of Article 16. Both these contentions, namely, about the
    carrying forward of reserved vacancies for a period of three years at the
    end of which they lapse, and the provisions that in any given year not more
    than 50% of the available vacancies shoulu be reserveu, have been nega-
B
    tived by this Court in the case of Aklril Bharatiya Soshit Karamchari Sanglt
    (Railway Represented by its Assistant General Secretmy on behalf of the
    Association v. Union of India & Ors., [1981 J 2 SCR 185. In that case a
    similar provision for carrying forward of reserved vacancies for Scheduled
    Castes and Scheduled Tribes for a period three years was upheld by this
c   Court. This Court also upheld the instructions issued by the Railway Board
    in that case to the effect that in any given year not more than 50% of the
    promotional posts should be made available to the reserved category of
    Scheduled Caste and Scheduled Tribe candidates; holding that the carry-
    forward rule should not result in any given year in the selection or appoint-
D   ment of Scheduled Caste and Scheduled Tribe candidates in excess of 50%
    (p.242). In the light of this judgment, the scheme formulated by the State
    Bank of India under the two circulars of 3rd of April, 1978 and 28th of
    July, 1983, thus cannot be faulted.


E           It is contended on behalf of the employees that in the light of the
    subsequent relaxation in service norms granted by the circular of 28.7.1983,
    which was in excess of the relaxation originally granted under the circular
    of 3.4.1978, the lapsed vacancies should be retrospectively filled. We find
    it difficult to accept this contention. In the first place any relaxation granted
    in favour of Scheduled Caste and Scheduled Tribe employees in respect of
F
    service norms is a matter of policy. Undoubtedly, Article 16(4) enables the
    Government to make reservations for Scheduled Castes and Scheduled
    Tribes either at the initial stage of recruitment or at the stage of promotion.
    This Court in the case of C.A. Rajendran v. Union of India & Ors., [196~1
    1 SCR 721 has stated that Article 16(4) does not confer any right on the
G   petitioner and there is no constitutional duty imposed on the Government
    to make such a reservation. Article 16(4) is an enabling provision and
    confers a discretionary power on the State to make reservations either at
    the stage of the initial recruitment or at the stage of promotion in favour
    of a backward class of citizens which in its opinion, is not adequately
H   represented in the service of the State.
    S.B.J. SCt.:>l EMPLOYEES WELFARE ASSN. v. S.B.I.{MRS. SU.JATA V. MANOHAR .T.J   727

      The same view has been reiterated by this Court in the case of P & A
 T Scheduled Caste/Tribe Employees' Welfare Association (Regd.) & Ors. v.
 Union of India & Ors., 11~88] 4 SCC 147.


         In the present case, such reservation has been made by the State
  Bank of India at the promotional stage in the manner which is set out in B
  the two circulars. These circulars have been applied at the relevant times.
  The circular of 28.7.1983 gave a further relaxation in service norms exceed-
  ing the relaxation prescribed in the first circular of 3.4.1978. As a result,
  service nr.rms for the reserved category could be relaxed to 5 years of
  service. The circular also gave the power to relax the service norms even
  further, but with the sanction of the Central Office of the State Bank of C
. India. This is not a relaxation which can be applied retrospectively. It
  becomes available from the date when it is granted and is not a JTtattcr of
  right It would, therefore, be very difficult to relate back the rehef on the
  basis of the second circular of 28.7.1983 to the years 1978 to 1983. The
  reserved vacancies in the promotional posts during this period, if not filled, D
  lapsed after three years as per the scheme framed under the earlier circular
  of 3.4.1978. We do not see how these lapsed vacancies can now be· revived.
  Our attention in this connection has been drawn to a recent decision of
  this Court in the case of National Federation of S.B.l. & Ors. v. Union of
  India & Ors., [1995] 3 SCC 532. In that case, one of the prayers was for a
  direction to fill up the backlog of unfilled vacancies since 1978 by applying E
  the carry-forward rule in all grades and scales with consequential benefits.
  This Court said that in the absence of a rule providing for retrospective
  grant of concession such a relief could not be granted. This judgment which
  is of a Bench of three judges of this Court has differed from the decision
  cf a Bench of two judges of this Court in Syndicate Bank Scheduled Custes
  and Scheduled Tribes Employees Association (Regd.) & Ors. v. Union of F
  India & OI"J'., !1990] Supp. sec 350 at 361. The judgment in the Syndicate
  Bank's case (supra) has been relied upon by learned counsel for the
   employees in support of her contention that retrospective relief should he
  granted in the present case. In view of the observations in the later
  judgment of a larger Bench of this Court in the case of National Federation . G
  of S.B.l. (supra), we prefer to follow the ratio laid doWn in the case of the
  National Federation of S.B.I. & Ors. v. Union of India & Ors., (supra). In
   the present case, in view of the interim orders of this Court referred to
   earlier, as also in view of the further relaxation in service norrns which was
   granted by the circular of 28.7.1983, most of the grievances of the
   employees relating to the filling up of posts reserved for SC/ST employees H
                           SUPREME COURT RI·PORTS [1996] SUPP. l S.C.R.

A   have now met. Even earlier, the Stalt;: Bank of India. on realising the
    difficulties in implementing the norms laid down by it in the circular dated
    3.-l.1978, had given dirt;:ctions of holding ol special tests only for Sl·hcduled
    Caste and Scheduled Tribe empluycc~ to Jill up thc backlog ufter further
    relaxing service norm~ to fivc years' ~crvicc or even less with the sanction
    of the Central Office, so that the ratio of three candidates for every vacancy
B   hecame available in respect of res~.:n~d vacanci~.:s also. This opportunity,
    however, was not availed of by the Scheduled Ca~te and Scheduled Tribe
    employees for reasons which we need not go into. Subsequently, in the
    gen~ral tests also, they have been allowed to cump1 c. They have been
    considered for promotion to the reserved vacancies on the basis of relaxed
    service norms as set out in the subsequent circular of 28.7.1983. From the
c   applications which have been made to the Andhra Pradesh High Court for
    interim orders during the pendency of these matters before us, it is clear
    that adequate number of SC/ST candidates arc now available for filling
    promotional vacancies under the further relaxed service norms set out in
    the circular of 28.7.1983. In view thereof, the directions given by the
D   Andhra Pradesh High Court to the effect that for filling up of reserved
    vacancies the service norms for Scheduled Caste and Scheduled Tribe
    candidates should be five years' service and for general category can-
    didates, six years' service appears to have become unnecessary. The cir-
    cular of 28.7.11)83 clearly provides that service norms set out in the circular
    of 3.4.1978 can be further relaxed to the extent required upto five years so
E   as to obtain three candidates fo·r every reserved vacancy. Even a further
    relaxation is permissible with the approval of the Central Office. The
    provision for relaxation under circular of 28.7.1983 thus adequately
    safeguards the interests of Scheduled Caste and Scheduled Tribe
    employees and provides a fair opportunity to them for filling up reserved
    vacancies as they arise. The further direction, therefore, given by the
F
    Andhra Pradesh High Court can now be ignored.

           In the premises, the writ petitions are dismissed. The appeals from
    the ,iudgment of the Andhra Pradesh High Court are also dismissed with
    the above observations. In the circumstances, however, there will be no
    order as to costs.
G
    v.s.s.                                                     Petitions dismissed.