SUSHMA MUTREJAversusUNION OF INDIA AND ORS.

                           SUSHMA MUTREJA                                      A
                                        V.

                       UNION OF INDIA AND ORS.

                             AUGUST I, 200 I

                [G.B. PATTANAIK AND RUMA PAL, JJ.]                             B


      Service Law:

      Central Secretariat Clerical Service Rules, 1962: Rule 11,12 and 25.
                                                                               c
      Promotion-From LDC to UDC-LDC in one Ministry promoted as UDC
 and transferred to another Ministry-Seniority-Reckoning of-Held: Such ·
 an employee would be senior to all those LDCs on that date as well as those
 LDCs on ad hoc promotion to the post of UDCs.

       Seniority-Transfer from one cadre to a new cadre-Reckoning of D
 seniority-Held, Such an employee must be treated to be lowest on the new
 cadre--.:But he cannot be junior. to those who were not even born in the new
 cadre on that date.

       . The appellant was appointed as a Lower Division Clerk (LDC) in the E
  Ministry of Commerce under Rule 12 of the Central Secretariat Clerical
  Service Rules, 1962. Subsequently, the appellant was appointed to the post of
  Upper Division Clerk (UDC) in the Labour Ministry on t.he basis of seniority
  in the Commerce Ministry under a Zoning Scheme for promotion to the post
  ofUDC. A seniority list based on the Zoning Scheme was drawn up in which
· the appellant was shown as junior to respondents 3 to 30 who were LDCs F
  but were officiating as UDCs on ad hoc basis. On the appellant's representation
  a fresh seniority list was drawn up, after obtaining clarification from the
  Department of Personnel in accordance with Rule 5, in which the appellant
 was shown as senior to respondents 3 to 30. However, the seniority list was
 again re-drawn up without consultation with Department of Personnel and G
 without any reason. The appellant's seniority was again altered in this re-
 drawn up seniority list. The Central Administrative Tribunal dismissed the
 applications filed by the appellant. Hence this appeal.

      Allowing the appeal, the Co.urt

                                    193                                        H
     194                     SUPREME COURT REPORTS [2001) SUPP. 1 S.C.R.

A         HELD: I. The appellant having been brought in the cadre of UDC in
    Labour Ministry her services in the cadre of UDC in the Labour Ministry
    has to be reckoned with effect from the date of hP.r transfer from the
    Commerce Ministry and she would be senior to all those LDCs on that date
    as well as those of the LDCs who might have got promotion on ad hoc basis
B   with the condition that they may be reverted back to the parent post of LDC
    when qualified persons become available. [197-E-Fl

            2. The re-drawing up of the seniority list must be held to be an arbitrary
    exercise of power and the employer has failed to indicate any reason for
    altering the seniority list which had been drawn up earlier. That apart, on
C   first principles also when a person is brought from one cadre to another and
    joins a new cadre then he must be treated to be lowest in the cadre on that
    date, but he cannot be junior to all those who were not even born in the cadre
    90 that date. In other words, respondents 3 to 30 were the Lower Division
    Clerks and some were officiating on ad hoc basis, not being born in the Select

D
    list in the post of Upper Division Clerks whereas the appellant was brought
    after being nominated by the Commerce Ministry to the Labour Ministry and
    was allowed to join the post of UDC. That being the position, rightly she was
    shown as senior to respondents 3 to 30 in the earlier seniority list That list
                                                                                         -
    could not have been altered without any reason. [198-D-F)
                                                                                         •
E        CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 4995-
    4996 of 1997.

         From the Judgment and Order dated 17.5.96 and 6.8.96 of the Delhi
    High Court in 0.A. No. 2435/90 and R.A. No. 120 of 1996.

F          Rani Chhabra for the Appellant.

           C.V.S. Rao, Arvind Kumar Sharma and D.S. Mabra for the Respondents.

           The Judgment of the Court was delivered by

G         PA TTANAIK, J. The appellant, on the basis of a competitive
    examination held by the Union Public Service Commission was selected in
    the year 1966 under Rule 12 of the Central Secretariat Clerical Service Rules,
    1962 (hereinafter referred to as 'the Rules') and joined in the Ministry of


H
    Commerce as Lower Division Clerk on 7.3.1967. While she was so continuing,
    in November 1969, the Government of India, Ministry of Home Affairs,
    introduced a Zoning Scheme for promotion to the post of Upper Division               -•
                SUSHMA MUTREJA v. U.0.1. [PA TT ANAIK, J.]               195
Clerk from that of the Lower Division Clerk. The aforesaid scheme had been A
promulgated, as it was found that there exist considerable disparitie·s in the
promotional prospects of the different categories of staff in different cadres,
because of decentralisation. It was decided that while the decentralised set up
would continue, but unevenness of promotion could be remedied by prescribing
zones for promotion in the decentralised grades. Recruitment to the post of B
Upper Division Grade is required to be made in accordance with Rule 11 of
the Rules. Under the aforesaid Rule, substantive vacancies in the Upper
Division Grade in any cadre can be filled up by substantive appointments of
persons included in the select list for the grade in that cadre. The select list
 is prepared and is revised from time to time, as provided in sub-rule (3) of
 Rule 11, and the procedure for preparing such list is set out in the Third C
Schedule to the Rules. Sub-rule (2) of Rule 11, however provides that even
 temporary vacancies in the Upper Division Grade in any cadre shall be filled
up by appointment of persons, included in the select list and if any vacancies
 remain unfilled after exhausting the list, then it can be filled up by temporary
promotion, on the basis of seniority subject to rejection of the unfit of
 permanent officers of the lower division grade in that cadre, who have rendered D
 not less than eight years' approved service in the grade. But such promotions
 would be terminated when persons included in the select list for the upper
 division grade become available to fill in the vacancies. On 30th July, 1982,
two Lower Division Clerks from the Ministry of Commerce, including one
Shri Y.N.Sota had been nominated for being promoted to the Upper Division E
 Clerk in the Labour Ministry under the Zoning Scheme. On 2.11.1982, the
 appellant on the basis of seniority in the Commerce Ministry was nominated
and appointed to the Post of UDC in the Labour Ministry under the aforesaid
zoning scheme on long term basis. The appellant continued in the Labour
 Ministry with effect from that date. It is the case of the appellant that
respondents 3 to 30, who had been recruited to the post of Lower Division F
Clerk in the Labour Ministry itself, were allowed to officiate in the post of
Upper Division clerk, on ad hoc basis, since posts in the Upper Division
Clerks were lying vacant and they could be reverted to their post of Lower
Division Clerk, as and when regular select list candidates are available for
being posted as Upper Division Clerk. There is no dispute that the Upper G
Division Clerks of the Labour Ministry, constitute a cadre. A seniority list
provisionally was drawn up in the year 1987 of the Upper Division Clerks
in the Labour Ministry, whereunder, the appellant was shown junior to
respondents 3 to 30 on the basis of erroneous datas. The appellant, therefore,
made a representation to the employer and after due consideration, a fresh
seniority list of the Upper Division Clerks in the Department of Labour was H
      196                      SUPREME COURT REPORTS (2001) SUPP. I S.C.R.

 A issued in 1989. In that seniority list, the appellant was shown senior to
      respondents 3 to 30 and the list had been drawn up, after due consultation
      with the Department of Personnel and after obtaining clarifications from the
      Personnel Department, in accordance with Rule 25 of the Rules. It may be
      quoted hereunder:

 B            "Rule 25. Interpretation. - Where a doubt arises as to the interpretation
              of any of the provisions of these rules, or the regulations made
              thereunder, the matter shall be referred to the Central Government
              whose decision thereon shall be final."

 C While this was the position, a fresh seniority list was drawn up in the year
  · 1991 and the position of seniority of the appellant vis-a-vis respondents 3 to
    30 again was altered. It may be stated that when a fresh seniority list of 1991
    was drawn up, no reasons were ascribed and even there is nothing on record
    to indicate as to what necessitated the drawing up of a fresh seniority list of
    Upper Division Clerks in the Ministry of Labour, particularly, when the
D earlier seniority list of 1989 had been drawn up after considering the objections
    of the appellant to the provisional select list of 1987 and after due consultation
    with the Department of Personnel, in accordance with Rule 25 of the Rules.
    It may be stated further that the Union of India, neither before the tribunal,
    nor in this Court, has indicated the reasoning for which a fresh seniority list
E was required to be drawn up and further, on what basis, it was re-drawn up
   and also the fact whether the Labour Ministry consulted the Department of
    Personnel, before re-drawing up of the seniority list in 1991. Being aggrieved
   by the seniority list re-drawn up in the year 1991, the appellant approached
   the Tribunal. Before the Tribunal, it was contended on behalf of the appellant,
   that the seniority list having been drawn up in the year 1989 after obtaining
F the advice of the Personnel Department with regard to the interpretation of
   the relevant Rules governing the seniority, the same could not have been
   altered in the year 1991, without even obtaining further advice from the
   Personnel Department. It was also contended, that the case of Mr. Sota, who
   also had been similarly nominated to the post of UDC in the Labour
   Department from Commerce Department is almost identical with the case of
G the appellant, but in the matter of determining the seniority while Mr. Sota's
   case has been disposed of granting him the seniority at the lowest of the
  existing cadre on the date he was brought on transfer from Commerce
   Department to Labour Department, the said principle has not .been followed
  in the case of the appellant, and on the other hand, arbitrarily in re-drawing
H up the list in the year 1991 she has been shown junior to respondents 3 to
                SUSHMA MUTREJA v. U.0.1. [PATTANAIK, J.]                   197
30. It was the contention of the appellant that the relevant Rules governing      A
the inter se seniority of the appellant vis-a-vis the existing employees in the
Labour Ministry have riot been properly interpreted , accordingly the
conclusion of the Tribunal was erron_eous. The Tribunal, however, dismissed
the application filed by the appellant on the ground that the seniority list of
1991 has been prepared in accordance with the relevant Rules and Regulations      B
and observed that the earlier seniority list was prepared contrary to the Rules
even if, had been prepared on the advice of the Personnel Department, the
same will not out-weigh the seniority list prepared in accordance with the
Rules. Against the order of the Tribunal a Review Application had been filed
and Review Application also was dismissed, hence the appellant has
approached this Court.                                                            C
       Mrs. Rani Chhabra, learned counsel appearing for the appellant,
 vehemently contended that the Tribunal committed serious error in not
 examining the case of Mr. Sota, whose case was identical to that of the
 appellant, and erroneously dismissed the application filed before it. The learned
 counsel further urged that the promotion on the basis of nomination from D
 different other cadre in accordance with the Zoning Scheme, which is a
 subsequent innovation to the Rules in force, and therefore, when a person is
 brought from one cadre to the other on promotion and possesses the requisite
qualification for being promoted to the post of UDC then there is no rhyme
or reason not to treat such employee to be born in the cadre with effect from E
the date he is brought into the new cadre. Judged from the aforesaid stand
point the appellant having brought in the cadre of UDC in Labour Department
her services in the cadre of UDC in the Labour Ministry has to be reckoned
with effect from 3.11.1982 and she would be senior to all those LDCs on that
date as well as those of the LDCs who might have got promotion on ad hoc
basis with the condition that they may be reverted back to the parent post of F
LDC when qualified persons become available. According to the learned
counsel, Tribunal therefore, committed serious error in deciding the inter se
seniority between the appellant and respondent nos. 3 to 30. The counsel also
;'urther urged, that the seniority list was drawn up in the year 1989 after due
c.onsultation with the Department of Personnel, whose advice has the effect
Jfsome finality with regard to interpretation of Rules as indicated in Rule 25. G
The seniority list thus drawn out, could not have been arbitrarily altered even
without obtaining fresh advice from the Personnel Ministry and in the absence
of any denial on the assertion made by the appellant the seniority list drawn
up in the year I 991 is bound to be set aside. Mr. C. V.S. Rao, learned counsel
appearing for Union. of India, on the other hand contended, that the seniority H
     198                     SUPREME COURT REPORTS [2001] SUPP. 1 S.C.R.

A    list drawn up in the year 1991 is in accordance with the relevant Rules and
     Regulations and, therefore, the Tribunal rightly refused to interfere with the
    same. He further contended that the so called consultation with Personnel
    Ministry under Rule 25 will not out-weigh the statutory provisions contained
    in the Recruitment Rules and, as such if under the Rules the appellant cannot
B   claim seniority over respondent nos. 3 to 30, the list drawn up in the year
     1991 cannot be interfered with. The learned counsel, however, was not in a       ...
    position to assail the assertions made by the appellant that her case and the
    case of Mr. Sota stand on the same footing and there is no justification for
    deciding the seniority in a different way. Mr. Rao also was not in a position
    to indicate the reasons for which the seniority determined in the year 1989
C   was altered again in the year 1991. In fact there does not exist an iota of
    material to indicate what necessitated re-drawing up of seniority list in the
    year 1991 and what was the basis of the same.

           Having considered the rival submissions and bearing in mind the peculiar
    facts and circumstances under which the appellant was appointed as UDC in
D the Labour Department, on being nominated by the Commerce Department,
    after she has acquired necessary qualification for such promotion we are of
    the considered opinion that the re-drawing up of the seniority list in the year
    1991 must be held to be an arbitrary exercise of power and the employer has
    failed to indicate any reason for altering the seniority list which had been
E drawn up in the year 1989. That apart, on first principle also when a person
    is brought from one cadre to other and joins a new cadre then he must be
   treated to be lowest in the cadre on that date, but he cannot be junior to all
   those who were not even born in the cadre on that date. In other words,
   respondent nos. 3 to 30 were in the Lower Division Clerks and some were
   officiating on ad hoc basis, not being born in the Select List in the post of
F Upper Division Clerks in the Commerce Ministry, whereas the appellant was
   brought after being nominated by the Commerce Ministry to the Labour
   Ministry and was allowed to join the post of UDC on 3.11.1982. That being
   the position, rightly she was shown senior to respondent nos. 3 to 30 in the
   seniority list of the year 1989. That list could not have been altered without
   any reason by the employer. In the aforesaid premises, we set aside the
G impugned judgmeni of the Tribunal, allow this appeal and hold that the
   appellant would be senior to respondent nos. 3 to 30 in the cadre of UDC in
   the Labour Ministry. If she would be entitled to any consequential benefits
  ·on that score, then her case may be duly considered and given accordingly.
    V.S.S                                                        Appeal allowed.
H