V. SIVA KUMAR & ORS.versusSECRETARY, MINISTRY OF DEFENCE & ORS.

                        [2008] 1 S.C.R. 206


A                   V. SIVA KUMAR & ORS.
                                v.
        SECRETARY, MINISTRY OF DEFENCE & ORS.
                 (C.A. No. 2945 of 2001)
                        JANUARY 8, 2008
B
       (DR. ARIJIT PASAYAT AND P. SATHASIVAM, JJ.)

        Service Law:
        Navy Grade-C Non-Industrial Posts, Store House Staff,
C Recruitment Rules, 1984 - Seniority- O.M dated 7.2.1986 -
  Para 7 - Providing seniority in respect of vacancies for which
  "'recruitment action' has already been taken on the date of
  issue" of O.M., to be governed by principles in force prior to
  issuance of O.M. - Held: 'Recruitment action' means an action
D taken for recruitment - Seniority of candidates empanelled
  prior to issuance of 0. M. dated 7. 2. 1986 would be governed
  by norms existing on date of issuance of said O.M.
        Words and Phrases:
        'Recruitment action' - Connotation of.
E
       The appellants and proforma respondents 45-55
  were, pursuant to an advertisement dated 8.7.1983,
  selected in the year 1984 as Store Keepers in the direct
  recruitment quota under the Navy Grade-C Non-Industrial
F Posts, Store House Staff Recruitment Rules, 1984. Later,         > \
  O.M. dated 7.2.1986 was issued prescribing new principle
  of seniority, in supersession of principles of earlier O.M.
  dated 22.12.1959. Thereafter, 99 candidates were selected
  for promotion in the promotional quota. The appellants
  and respondent nos.44-55, who all were direct recruits
G and were selected in the year 1984, were given
  appointments on 1.12.1986. In the seniority list they were
  shown below the candidates appointed against
  promotional quota. The appellants and respondents 44-
  55 filed O.A. No.673 of 1992 before the Central
H                             206
                               V. SIVA KUMAR & ORS. v. SECRETARY,              207
                            MINISTRY OF DEFENCE & ORS. [PASAYAT, J.]
              ~·
                         Administrative Tribunal. The O.A·was allowed; and as the A
                         judgment was not challenged further, it became final. In
                         another matter, a Full Bench of the Tribunal decided
                         certain issues. On 27.12.1996, a revised seniority list was
                         issued purportedly in line with the judgment in O.A.673 of
                         1992. This was again cllallenged before the Tribunal which B
                         held that the Full Bench of the Tribunal did'. not address
    )
                         itself to the question of seniority of the employee selected
                  ~··
                         and empanelled prior to 1.3.1986 but appointed after the
                         said date; and, that the O.M. dated 7.2.1986 was
                        'prospective in nature. This upset the seniority of the c
                         appellants. They filed a writ petition which was dismissed
                         by the High Court holding that the decision of the Full
                         Bench of the Tribunal applied t() the facts of the case.
                             In the instant appeal filed by the direct recruits, it was
                        contended that since.          . . . in O.A.673of1992 had D
                                               the. judgment
                        become final, it was not open to be nullified by another

'x                      Division Berich of ttie Tribunal and, that the true effect of
                        para 7 of O.M. dated 7.2.1986 was not correctly applied as
                        the crucial exp~essic;m in the O.M. was 'recruitment action'
                        and the term 'recruitment' could not be the same as E
                        'appointment':         ...
                             Allowing the appeal, the Court
                              HELD: 1.1. Before the Full Bench of the Tribunal the
;           ,\.         first part of para 7 was under consideration and the effect F
                        of the expression "recruitment action" was not in issue.
                        The relevant portion of para 7 refers to vacancies for which
                        recruitment action had already been taken. There are two
                        aspects of significance, they are; ·(1) there must be
                        vacancy; and (2) the recruitmentaction must have already
                                                                                     G
                        been taken. Othenivise, there: was no need to use the
    -:,o·               expression '"for Which recruitment action has already
                        been taken", because the appointment has to take effect
                        from the relevant date. [para 9-10) [211-H, 212-A, BJ
                             1.2 "Recruitment action" obviously would mean an        H
    208      SUPREME COURT REPORTS                  [2008] 1 S.C.R.


A action taken for recruitment. That being so, the impugned
  judgment of the High Court upholding the decision of the
  Tribunal that seniority of the employees appointed after
  1.3.1986 would be governed by O.M. dated 7.2.1986, even
  though they were empanelled and selected prior to
B 1.3.1986 is clearly untenable and is set aside. [para 1
  and 13] [212-F] [208 F-G]
          K. Narayanan vs. State of Karnataka [1994] Supp. 1
    sec 44 - relied on.
C        CIVILAPPELLATE JURISDICTION: Civil Appeal No. 2945
    of 2001.
         From the final Judgment and Order dated 3.3.2000 of the
    High Court of Judicature, Andhra Pradesh at Hyderabad in W.
    P. No. 5540/1999.
D
          R. Venkataramani, C.K. Sucharita for the Appellants.
         R. Mohan A.S.G., Y. Prabhakara Rao, Asha G. Nair, B.K.
    Prasad and D.S. Mahra for the Respondents.
          The Judgment of the Court was delivered by
E
         Dr. ARIJIT PASAYAT, J. 1. Challenge in this appeal is to
  the judgment of a Division Bench of the Andhra Pradesh High
  Court dismissing the writ petition filed by the appellants.
  Challenge before the High Court was to the order of the Central
F Administrative Tribunal, Hyderabad (in short the 'Tribunal'). By
                                                                        .j.   '
  its ord1~r dated 18.2.1999 the Tribunal had directed that seniority
  list of Store keepers was to be prepared on the principle that ;
  (1) the OM dated 7.2.1986 is prospective in nature and not
  retrospective; (2) the employees recruited after 1.3.1986, even
G though they were em.panelled and selected earlier to 1.3.1986,
  their seniority will be in accordance with the aforesaid OM as
  they were appointed to the service after 1.3.1986 and the
   impugned seniority list was to be amended with consequential
   benefits in terms of these principles.
H         2. Background facts in a nutshell are as follows:
             V. SIVA KUMAR & ORS. v. SECRETARY,                  209
          MINISTRY OF DEFENCE & ORS. [PASAYAT, J.]
,-t
            On 8. 7 .1983 notice for recruitment was issued for Store A
      keepers, Class-Ill in the materials organization of the
      Vishakhapatnam Dockyard in the Direct Recruitment Quota (in .
      short the 'DR'). In 1982-83, appellants, proforma respondent
      Nos.45 to 55 had applied in response to this notification. All of
      them were selected in the year 1984 according to the Navy B
      Grade-C Non-Industrial Posts, Store House Staff, Recruitment
      Rules, 1984 (in short the 'Recruitment Rules'), 87% % of the
      posts were to be filled up by promotion and 12% % by direct
      recruitment. Out of every eight vacancies, the first seven are
      given to promotees and the last one to DR by rotation.           c·

             On 7.2.1986, new principle of seniority was fixed in
      supersession of OM dated 22.12.1959. As per para 7 thereof
      the old principles contained in the OM dated 22.12.1959 were
      held not applicable for any appointment made after 7.2.1986
      for which recruitment process started before 7.2.1986. 99 D
      candidates were selected for promotion in the promotional
      quota. Appellants who are direct recruits and respondent
      Nos.45-55 who were also direct recruits were appointed as Store
      Keepers on 1.12.1986. On 4.12.1989 inter se seniority list was
      prepared in which the appellants were shown at serial 4 to 44. E
      The list was sent to all naval establishments for circulation,
      verification and for pointing out any discrepancy and corrections,
      if any.
           On 21.10.1991 another seniority list was issued showing
      the appellant and proforma respondent Nos. 45 to 55 below        F
      respondent Nos.4-44 and they were pushed down by about 240
      places.
           On 21.11.1991 objections were submitted by the
      appellants. On 12.3.1992 final seniority list was issued showing G
      the appellants and respondents 45 to 55 lower down.
             O.A. No. 673 of 1992 was filed before the Tribunal by the
      appellants and respondents 45 to 55 challenging the seniority
      list on 25.4.1995. The same was allowed. But the judgment was
      not challenged by anybody and, therefore, it became final. On H
    210       SUPREME COURT REPORTS                  [2008] 1 S.C.R.

                                                                         1--
A   21.11.1996, the Full Bench of Tribunal in other O.As. relating to
                                                                                   .
    Excise departments decided certain issues. The stand of the
    appellants was that the parameters indicated in para 7 of the
    OM were not in issue before the Full Bench.
                                                                                   -
        On 27.12.1996 revised seniority list was issued
B purportedly in line with the judgment in OA No. 673of1992. On
  12.3.1997 appellants Nos.1, 4 and 7 were appointed as store
  keeper on the basis of the revised seniority list. On 13.2.1997        .,. •
  Division Bench of the Tribunal allowed OA No.1323 of 1993
  relating to the Central Excise department. On 3. 7 .1997, OA No.
c 843of1997 was filed before the Central Administrative Tribunal,
  Hyderabad challenging the revised seniority list dated
  27.12.1996 and the promotion order dated 12.3.1997. In
  February, 1998 appellant Nos. 2,3,6,8 and 9 were promoted as
  store keepers on the basis of the revised seniority List dated
D 27.12.1996.
         3. A Division Bench of a Tribunal held in O.A. No. 843 of
  1997 by order dated 18.2.1999 that the Full Bench while hearing
  the R.A. No. 103of1993 in OA No.1019of1992 did not address
  itself to the question of persons selected prior to 7 .2 .1986 and
E appointed subsequent to 7 .2.1986. However, relying on the
  judgment of another Division Bench in OA No.673 of 1992 it
  was held that OM dated 7.2.1986 is prospective which upset
  the seniority of the appellants. On 17 .3.1999 appellants filed
  writ petition No. 5540 of 1999 challenging the said judgment of
F the Tribunal in OA No. 843 of 1997. By order dated .3.3.2000           -!'   '

  writ petition was dismissed holding that the Full Bench's
  decision of the Tribunal applied to the facts of the case.
         4. It is submitted that in the counter-affidavit in OA No.843
    of 1997 the respondent had accepted the plea of the appellants.
G
         5. In support of the appeal, it is submitted that in view of
  the fact that the judgment in OA No. 673 of 1992 has become
  final it was not open to be nullified by another Division Bench ..
  The true effect of para 7 of the OM dated 7.2.1986 has not been
H correctly  applied. The Full Bench of the Tribunal considered only
         V. SIVA KUMAR & ORS. v. SECRETARY,                       211
      MINISTRY OF DEFENCE & ORS. [PASAYAT, J.]

 the first part qf the para 7 and did not advert to the second aspect A
 highlighted in the OM. In the judgment in OA No. 843 of 1997 a
 Division Bench observed that the Full Bench did not deal with
 the aspect but proceed to rely on another Division Bench's
 judgment and thereby ignoring the reasoning of the earlier
 judgment of Kerala Bench of the Tribunal. The second part of B
 para 7of1986 was also not considered. It was also pointed out
 that the High Court did not look into second part of the OM which
 is the only relevant part so far as the present dispute is
 concerned. The second part of the OM was not challenged by
 anybody.                                                               c
       6. It was submitted that the crucial expression in the OM is
  "recruitment action". Recruitment is not the same as
. appointment. Para 7 refers to both direct recruits as well as
  promotees.
                                                                        D
       7. In response, learned counsel for the respondents
 submitted that the OM refe"rs to actual appointment by direct
 recruitment, promotion or by method of transfer. Mere inclusion
 in the select list confers n9 right and, therefore, interpretation
 given b5' the Tribunal and the High Court is rational. It is also
 submitted that "recruitment action" is different from "recruitment     E
 process".

       8. Para 7 of the OM so far as relevant reads as follows:

      "These orders shall take effeCt from 151 March, 1986.
      Seniority already determined in accordance with the F
      existing principles on the date bf issue of these orders will
      not be reopened. In respect of vacancies for which
      recruitment action has already been taken, on the date of
      issue of these orders either by way of direct recruitment
      or promotion, seniority will continue to be determined in G
      accordance with the principles in force prior to the issue
      of this O.M."

      9. It is correct as contended by learned counsel for the
 appellants that before the Full Bench of the Tribunal the first part   H
    212        SUPREME COURT REPORTS                   [2008] 1 S.C.R.


A of para 7 was under consideration and the effect of the
  expression "recruitment action" was not in issue.
       10. The relevant portion of para 7 refers to vacancies for
  which recruitment action has already been taken. There are two
  aspects of significance, they are; (1) There must be vacancy;
B and (2) the recruitment action must have already been taken.
  Otherwise, there was no need to use the expression "for which
  recruitment action has already been taken" because the
  appointment has to take effect' from the relevant date.
c       ·11. In K. Narayanan v. State of Karnataka, [1994 Supp.(1)
    sec 44] at para 6 it was noted as follows:
           "Article 309 of the Constitution empowers the appropriate
           Legislature to frame rules to regulate recruitment to public
           services and the post. 'Recruitment' according to the
D          dictionary means 'enlist'. It is a comprehensive term and
           includes any method provided for inducting a person in
           public service. Appointment, selection, promotion,
           deputation are all well-known methods of recruitment. Even
           appointment by transfer is not unknown. But any rule framed
E          is subject to other provisions of the Constitution."
          12. There is no dispute in law and in fact none is raised
    that mere inclusion in the select list does not confer a right on
    the person whose name has been included in the select list. But
    that question has little significance in the present case.            t   .
F
         13. "Recruitment action" obviously would mean an action
    taken for recruitment. That being so, the impugned judgment of
    the High Court is clearly untenable and is set aside.
           14. The appeal succeeds but without any order as to costs.
G
    R.P.                                             Appeal allowed.