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Supreme Court of India

A. SATYANARAYANA & ORS.versusS. PURUSHOTHAM & ORS.

Citation
2008 INSC 518
Decided
24 April 2008
Disposal
Appeal(s) allowed

Holding

The State may fix a quota for promotion but cannot impose an absolute cap on the number of posts for Private Secretaries, as such a cap violates the constitutional guarantees of equality under Articles 14 and 16; consequently, the impugned orders were declared ultra vires and set aside.

Summary

The case concerned the Andhra Pradesh Secretariat Service Rules which limited the number of Private Secretaries (PS) who could be promoted to Assistant Secretary and higher posts to ten at any given time, despite a statutory quota of 14:1 between Section Officers (SO) and PS. The PS challenged the validity of the Government Orders (GOs) imposing this cap, alleging violation of Articles 14 and 16 of the Constitution. The Supreme Court held that while the State may prescribe a quota for promotion between two feeder cadres, it cannot impose an absolute ceiling that defeats the constitutional principle of equality. The cap of ten posts was found arbitrary, discriminatory and violative of Articles 14 and 16, and the impugned GOs were set aside. The appeal was allowed with costs.

Issues considered

  • The State's power to fix a quota for promotion between two feeder cadres under the service rules.
  • Whether imposing an absolute limit of ten posts for Private Secretaries violates Articles 14 and 16 of the Constitution.
  • Whether a policy decision embodied in subordinate legislation is amenable to judicial review.
  • Whether the ratio of 14:1 must be maintained at all levels of promotion.

Legislation cited

Subjects

promotionquotaArticle 14Article 16judicial reviewsubordinate legislationpublic service equalitydiscriminationAndhra Pradesh Secretariat Service Rules

Judgment

                                       [2008] 6 S.C.R. 1055

        ....-;                   A. SATYANARAYANA & ORS.                             A
                                                 v
                                  S. PURUSHOTHAM & ORS.
                                (Civil Appeal No. 2963 of 2008)
                                          APRIL 24, 2008
                                                                                     B
                             (S.B. SINHA AND SIRPURKAR, JJ.)
            ~-
                      Andhra Pradesh Secretariat service Rules. 1998:
                        r3- Note (3) - Promotion - Quota for SOs and PSs for
                 promotion to the post of Assistant Secretary - By G. Os. c
                 promotional posts for PSs limited to 10 in the cadres of
                 Assistant Secretary, Deputy Secretary, Joint Secretary and
                 Additional Secretary- Held: State, while providing two different
                 sources as feeder posts for promotion to a higher post, is
                 entitled to fix quota even at all levels of promotion, but it cannot D
<                be permitted to put a cap on promotion for the entire service
    )       -+   period - State cannot say that a few posts shall be identified
                 only on the basis of original posts held by employee
                 concerned - By a policy all promotional avenues in respect
                 of a category of employees for all times to come cannot be E
                 nullified, as the same would be hit by Article 16 of the
                 Constitution - Impugned G. Os. set aside - Constitution of India
                 - Article 14 and 16 .
                      Judicial review :
                                                                                     F
4                     Policy decision by State - Held: Superior Courts while
        t   ~
                 exercising power of judicial review must determine the issue
                 having regard to the effect of subordinate legislation - A
                 statutory rule must be made in consonance with constitutional
                 scheme - Administrative Law - Subordinate Legislation.
                                                                                     G
                      In the Secretariat of the Government of Andhra
                 Pradesh the posts of Section Officers (SOs) and Private
                 Secretaries (PSs) were the feeder posts for promotion to
                 the post of Assistant Secretary. The Assistant Secretaries
                                            1055                                     H
   1056      SUPREME COURT REPORTS               [2008] 6 S.C.R.


A were further promoted to the posts of Deputy Secretary,
  Joint Secretary and Additional Secretary to Government.
  By G. 0. dated 21.10.1983, a quota of 1:19 for PSs and
  SOs was prescribed for promotion to the post of Assistant
  Secretary. Later, on the recommendations made by the
B Cabinet Sub-committee, noticing the permanent cadre
  strength of SOs as 365 and of PSs as 25, the ratio between
  SOs and PSs was worked out as 14:1. The total number             }
  of posts of Assistant Secretaries, Deputy Secretaries,
  Joint Secretaries and Additional Secretaries was 151. By
C G.O.Ms.No. 368 dated 18.8.1999, the Government directed
  that 10 posts would be earmarked for PSs in the
  promotional posts of Assistant Secretaries to Additional
  Secretaries and that the number of PSs on these
  promotional posts should not exceed at any given point
  of time. Consequently, the Andhra Pradesh Secretariat
0
  Service Rules, 1989 were amended by G.O.Ms No.
  397dated 20.9.1999 and Note (3) to Rule 3 of the Rules           +1
  was accordingly substituted. The PSs challenged validity
  of G.O.Ms. 368 and 397 by filing an original application
  before the Andhra Pradesh Administrative Tribunal. The
E Tribunal held that G.O.Ms 368 and 397 limiting the number
  of promotional posts to PSs at 10 at any given point of
  time, were arbitrary, discriminatory and violative of Articles
  14 and 16 of the Constitution of India. In the writ petitions
  filed by the SOs, the High Court held that though the
F impugned amendment was no doubt peculiar, but, instead
  of normal practice of prescribing a ratio or quota, limiting
  the total number of post for PSs to 10, by itself, would not
  render the impugned amendment to the Rules ultra vires
  Articles 14 and 16 of the Constitution. The High Court
G further observed that principles of judicial review did not
  permit the court to examine the policy choice of the rule
  making authority. Aggrieved, the PSs filed the instant
  appeals.
          Allowing the appeal3, the Court
                   A. SATYANARAYANA & ORS. v. S. PURUSHOTHAM             1057
                                    & ORS.
    >-'<-
                       HELD: 1.1 Quota in ordinary parlance would mean A
                  proportionate share. The State, indisputably, when
                  provides for two different sources as feeder posts for
                · promotion to a higher post, is entitled to fix quota.
                  Whereas the power of the State to fix the quota keeping
                  in view the fact situation obtaining in a given case must B
                  be conceded, but the same .cannot be violative of the
        -t        constitutional scheme of equality as contemplated under
                  Articles 14 and 16 of the Constitution of India. A policy
                  decision and, in particular, legislative policy, should not
                  ordinarily be interfered with and the superior Courts, while  c
                  exercising its power of judicial review, shall not consider
                  as to whether such policy decision has been taken mala
                  fide or not. But where a policy decision as reflected in a
                  statutory rule pertains to the field of subordinate
                  legislation, indisputably, the same would be amenable to
                                                                                D
                  judicial review, inter a/ia, on the ground of being violative
}       ---1~     of Article 14 of the Constitution of India. [para 13, 20]
                  [1068-E; 1072-8-E]                                 "

                     Vasu Dev Singh & Ors. v. Union of India & Ors. 2006 (1)
                 SCALE 108; and State of Kera/a & Ors. v. Unni & Anr (2007)     E
                 2 sec 365 - relied on
                       1.2 The Superior Courts, while exercising their power
                 of judicial review, must determine the issue having regard
                 to the effect of the subordinate legislation in question.
                 There must exist a rational nexus between the impugned F
    i    j-      legislation and the object of promotion. Promotions are
                 granted to a higher post to avoid stagnation as also
                 frustration amongst the employees. Although mere chance
                 of promotion is not a fundamental right, but right to be
                 considered therefor is. In that view of the matter, by a policy G
                 all promotional avenues in respect of a category of
                 employees for all time to come cannot be nullified and

        -·       the same would be hit by Article 16 of the Constitution of
                 India. The High Court, therefore, was not wholly correct
                 when it opined that a policy decision cannot be a subject H
    1058      SUPREME COURT REPORTS               [2008] 6 S.C.R.


A matter of judicial review. [para 21, 25 and 27] [1073-D;             ~   ......
  1074-C; 1072-F]
        Food Corporation of India and Ors. v. Parashotam Das
    Bansal and Ors. 2008(2) SCR 412 - relied on.

B       2.1 In the instant case, Note (3) to Rule 3 of the Andhra
  Pradesh Secretariat Service Rules, 1998 which was
  substituted by G.O.Ms No.397 does not speak of any quota.
  It confines the number of posts for PSs to 10 at any given          i
  point of time. The number of 10 posts can be filled up only
  on vacation of a post of Assistant Secretary/Deputy
c Secretary/Joint    Secretary/ Additional Secretary. It does not
  appear from the impugned GOMs that the State intends
  to strive to maintain tl).e'rafio of 14:1 in the posts of
  Assistant Secretaries onwards. The impugned rule does
  not take into consideration the events which may take
D place in future, like increase in the strength in the cadre. If
  the number of posts for promotion is limited to 10, even
  when the number of posts has gone up, the same would              ~               j

  contravene the ratio of 14:1. Indisputably, the State was
  entitled to provide for quota as also a guideline as to how
E the roster should work out itself, but thereby it cannot be
  permitted to put a cap on promotion for the entire service
  period .. If the Government intends to change the ratio, it
  may do so But what is impermissible is laying down a
  condition subsequerit to adoption of a policy decision
  which defeats the object and purport thereof. [para 16,
F
  18, and 31] [1071-E, H; 1072-A; 1075-C-E]
       2.2 It may be that the State may evolve a policy of
                                                                    .,..       .
  prescribing a reasonable quota at all levels of the
  promotion, but it cannot say that a few posts shall be
G identified only on the basis of the original posts held by
  the employees concerned. To that extent, the rule
  maintains a birthmark which runs counter to the decisions
  of this Court. [para 26-27] [1073-H; 1074-A-B]
                                                                     .......
           Dwarka Prasad & Ors. v. Union of India & Ors. (2003) 6
H   sec 535 - relied on.
                 A. SATYANARAYANA & ORS. v. S. PURUSHOTHAM              1059
    ........                      & ORS .

                      2.3 It has not been disputed that a panel is required A
               to be prepared every year. The High Court, in its judgment,
               has considered the question only with reference to
               upward mobility. From the Rules, it furthermore appears
               that even the SOs can be transferred to the posts of PSs.
               Who ,WOt,1ld b.e holding what post, even at a subordinate B
        +      lev·el, ·may, thus, be a question of chance. Grievances of
               SOs have been taken into consideration amending the
               ratio from 19:1to14:1. No exception thereto can be taken,
               but hardship faced by a section of employees in the past,
               by itself, cannot be a ground to deprive another section
               of their constitutional and legal right. Indisputably, the
                                                                            c
               Tribunal, committed an error in directing the State to
               consider promotion to the Private Secretaries in the ratio
               of 1:14 whereas in terms of Rules it should be 14:1. The
               Tribunal, thus wrongly recorded the ratio as 1:14 instead
        __l.
               of 14:1. [para 13, 17, 28 and 29) [1074-D, E, G, H; 1075-A; D
i
               1068-E-F; 1071-F]
                       2.4 A statutory rule, it is a trite law, must be made in
                  consonance with constitutional scheme. A rule must not
                 ·be arbitrary. It must be reasonable, be it substantive or a
                                                                                E
                . subordinate legislation. The Legislature, it is presumed,
                · would be a reasonable one. Indisputably, the subordinate
                  legislation may reflect the experience of the Rule maker,
                  but the same must be capable of being taken to a logical
                  conclusion. In this view of the matter, the impugned
           .,.-   Government Orders cannot be sustained and are set F
                  aside. [para 32 and 33) [1075-E-G]
                    CIVILA PPELLATE JURISDICTION: Civil Appeal No. 2963
               of 2008.
                    From the Judgment and Order dated 21.8.2006 of the High G
               Court of Judicature of Andhra Pradesh at Hyderabad in W.P.
       ·--'    No. 16842, 14651 of 2000 and 8551 of 2001.
                                           WITH
                    Civil Appeal No. 2964 of 2008                              H
    1060       SUPREME COURT REPORTS                  [2008] 6 S.C.R.
                                                                               .,_~




A         L.N. Rao, P.P. Rao, R. Santhan Krishnan, K. Radha Rani,
    Praveen Kumar Pandey, P. Vijaya Kumar, D. Mahesh Babu and
    Anil Kumar Tandale for the Appellants.

         M.L. Varma, TLV Iyer, D. Bharathi Reddy, Satya Mitra, G.
    Ramakrishna Prasad, Suyodhan Byrapaneni, G. Arun and
B   Siddharth Patnaik for the Respondents.

           The Judgment of the Court was delivered by

           S.B. SINHA, J. 1. Leave granted.

c        2. Interpretation of GOMs. No.368 dated 18.8.1999 is in
    question in these appeals which arise out of a judgment and
    order dated 21.8.2006 passed by a Division Bench oftheAndhra
    Pradesh High Court in Writ Petition Nos.8551/01, 14651/2000
    and 16842/2000.
D         3. Respondents herein were Private Secretaries (PSs) of
    the Secretaries of the Government of Andhra Pradesh.                  ..L.        1
    Appellants of the Civil Appeal arising out of SLP (C) No.10137
    of 2007 are the Section Officers (SOs) working in the Secretariat
    of the Government of Andhrapradesh.
E
         4. Indisputably, the post of 'Private Secretary' (PS) as also
    that of the 'Section Officer' (SO) are the feeder posts for
    promotion to the post of Assistant Secretary.

         The total number of posts in the cadre of Sections Officers
F   was 365. Indisputably, 10 PSs attached to the Secretaries of
                                                                         .,.
    the Government of Andhra Pradesh have to undergo training
    for a period of two years as a SO. The number of PSs at a
    given point of time was 25. The promotional channel to the post
    of Assistant Secretaries was the SO.
G        5. By reason of GOMs No.1059 dated 15.7.1960, the State
    issued a notification providing for promotion to the post of
    Assistant Secretary also from the cadre of PSs.                       . ..
        On or about 16.6.1971, GOMs No.58 was issued whereby
    and whereunder Andhra Pradesh General Services - class
H
           A. SATYANARAYANA & ORS. v. S. PURUSHOTHAM                   1061
                      & ORS. [S.B. SINHA, J.]

         XXVlll was constituted. SOs of different departments including A
         Law, Finance Management as aiso of any other department were
         put in different categories. However, in view of the fact that the.
         PSs were not having any promotional channel or avenue for
         further promotion, with a view to obtain suggestions so as to
         avoid stagnation in service, the Government of Andhra Pradesh B
         constituted a Committee known as 8.N. Raman Committee.
         The said Committee submitted its r!:!port making its
         recommendations, pursuant whereto and in furtherance whereof,
         G.O. No.538 was issued on 6.11.1982 inserting Rule 38 in the
         Rules, which is to the following effect : ·                           c
              "In the said rules, after rule 3.A the following rule shall be
              added, namely:-
              '38. Special provision for the appointment of personal
              Assistants to secretaries to Government as Section
                                                                               0
              Officers:-
I --+·
              a) Notwithstanding anything in sub-rule (a) of Rule 3, the
              personal Assistant to Secretary to Government (including;
              private secretary and Government personal Assistant to
              principal Secretary/Additional Chief Secretary/Second            E
              Secretary/Ex-officio Secretary to Government) shall be
              eligible for apppintment as section officer, provided he
              gives an option for considering him to such appointment
              and the option once exercised by him for appointment as
              section officer shall be final and irrevocable."                 F
i •
               6. The PSs could be transferred to the posts of SOs by
         obtaining an option in that behalf as laid down in G.0. No.504
         dated 21.10.1983. On or about 1.5.1984, the promotional
         avenue for the PSs to the post of Assistant Secretary was
         introduced prescribing 1: 19 quota between PSs and SOs for G
         promotion to the post of Assistant Secretary. The said ratio of
         1: 19 was given retrospective effect w.e.f. fr.11.1982 by
         GOMs.364 dated 16.6.1984. An amendment was made in the
         Rules by GOMs No.81 dated 21.2.1985 in terms whereof the
         ratio of 1: 19 fixed for promotion, between the PSs and SOs H
    1062       SUPREME COURT REPORTS                [2008] 6 S.C.R.
                                                                        ,.__,.
A was made applicable from 1.5.1984 instead of 6.1.1982. The
  Rules were suitably amended in terms of the proviso appended
  to Article 309 of the Constitution of India w.e.f. 17.7.1985
  whereby and whereunder training for a period of two years for
  the PSs was made compulsory. A further amendment was made
B for appointment from the posts of PS to the posts of SOs 011;
  tenure basis by a Government Order dated 18.12.1985. An
  amendment was also made in the Rules for making the posts
  of PS as the feeder category for promotion to the posts of
  Assistant Secretary by reason of GOMs. No.525 dated
c 21.9.1989.

       7. Representations were made to the State by the Andhra
  Pradesh Secretariat Association to review the said Rules with
  regard to the ratio fixed therefor. Representations in that behalf
  were also received by the State from Andhra Pradesh State
D Typist and Stenographers Association.
                                                                       ...       1
       8. The issue was placed before the Cabinet Sub-
    Committee on Service and Related Matters.

         A report was submitted. The recommendatidns made by
E   the Cabinet Sub-Committee were considered by the
    Government. Noticing that out of the permanent cadre strength
    of SOs was 365 and that of the PSs was 25 and as 10 PSs
    occupy the posts of SOs, the ratio between PSs and SOs
    worked out at 14: 1. It was decided that a cycle of 15 vacancies
F   may commence with SOs, having regard to the number of              ..,
    employees in the said cadre. It was furthermore noticed that the
    cadre strength of all the non-cadre officers from Assistant
    Secretary to Additional Secretary except Law and Finance and
    Planning, as it stood then, was 151.
G        It was opined that having regard to the said ratio, the
    number of posts required to be earmarked for the category of
    PS to Secretary of Government in the ministerial line should be     ,._
    10. By reason of the impugned G.0., it was directed:
           "The Government, accordingly revise the criteria for
H
                    '


                        A. SATYANARAYANA & ORS. v. S. PURUSHOTHAM                1063
    ,.._.."I'.:',                  & ORS. [S.B. SINHA, J.]

                           promotion from the category of Section officers and Private   A
                           Secretaries to Secretaries to Government to the
                           categories of Assistant Secretary to Government and upto
                           Additional Secretary to Government (Non-cadre). Based
                           on the permanent cadre strength of both the categories;
                         . 10 (ten) posts orily are to be earmarkedlfor promotion        B'
         -t              . from the category of Private Secretary to Secretary to
        ·'                 Government to the categories of Assistant Secretary to
       '                   G.overnment and upto the Additional Secretary to
                           Government (non-cadre). Accordingly the Government
                         . hereby order that the number of Private Secretaries to        c
                           Secretaries to Government or Deputy Secretary to
                           Government or Joint Secretary to Govrnment or Additional
                           Secretary to Government (Non-cadre) shall not exceed
                           10 (ten) in number at any given point of time. These orders
                           shall come into force with immediate effect.
                                                                                     D
'        ~                The Government also order coincident that the promotions
                          be so regulated with immediate effect so as to ensure the
                          maintenance of the above criteria between Section Officers
                          and Private Secretaries to Secretaries to Government
                          while effecting promotions to the post of Assistant E
                          Secretary to Government from the two feeder categories
                          of Section Officer and Private Secretary to Secretary to
                          Government The Government further order that promotion
                          from the category of Private Secretary to Secretary to
                          Government to and in the categories of Assistant Secretary F
    I.~
                          to Government and upto Additional Secretary to
                          Government shall be limited and confined to the above 10
                          (ten posts of Assistant Secretary/Deputy Secretary/Joint
                          Secretary/Additional Secretary by a Private Secretary
                          promotee, the next private secretary be promoted to the
                                                                                     G
                          feeder post of Assistant Secretary with the said earmarked
                          10 posts."
    ---'·
                         Pursuant thereto, the Rules were amended by GOMs
                    no.397 dated 20.9.1999 in terms whereof Note 3 in Rule 3 was
                    substituted which we would notice a little later.                    H
    1064       SUPREME COURT REPORTS                      [2008) 6 S.C.R.

                                                                               -~
A        9. Respondents herein filed an original application before
    the Andhra Pradesh State Administrative Tribunal, inter alia,
    questioning the validity of the said notification.
         By reason of a judgment and order dated 14.2.2000, the
    said original applications were allowed, holding :
B
           "In the circumstances, we hold that the impugned GOMs
           No.397 G.A. (Ser.B) Department dated 20.9.1999 and
           GOMs. No.368 G.A.(Ser. B) Department datE~d 18.8.1999
           cannot be sustained except to the extent of prescription of
c          the ratio 1 :14 for promotion to the post of Assistant
           Secretaries only, between the two feeder categories of
           PSs and sos. Further restrictions on the absolute number
           of posts that could be held by the PSs and restricting the
           promotional chances to the posts of Deputy Secretary
           Joint Secretary and Additional Secretary, are unwarranted.
D
           As already stated, the applicants, once they enter the
           stream of Assistant Secretaries should be considered for           ...    ,


           promotion to the higher categories on the basis of their
           seniority in the feeder categories and eligibility and
           suitability. There is absolutely no necessity to lay down
E          any further restriction in this regard. Even for the post of
           Assistant Secretary, we hold that the ratio of 1: 14 itself will
           work as a limiting factor on the representations of both the
           categories in the posts of Asst. Secretaries, as the
           applicants belong to the minor group, they will have only
F          lesser number of posts. There is absolutely no necessity           .,,
           to impose further restriction with regard to the number of
           posts to be given to the applicants or with regard to the
           promotional prospects to further higher categories.
           Accordingly, we hold that the impugned G.0.Ms. No.368
G          G.A. (Ser.B) Dept. dated 18.8.1999 except to the extent of
           prescribing a ratio of 1:14 between PSs and Section
           Officers for promotion to the post of Assistant Secretary,
           and the impugned GOMs No.397 GA (Ser.B) Dept., dated                --~

           20.9.1999 limiting the number of posts to Ten (10) only at
H          any given point of time in respect of Private Secretaries
                A. SATYANARAYANA & ORS. v. S. PURUSHOTHAM                  1065
                           & ORS. [S.B. SINHA, J.]
    ~-+
                   to Secretaries to Government, occupying any of the posts        A
                   Asst. Secretary or Deputy Secretary to Government (non-
                   cadre) are not sustainable as the same are arbitrary,
                   discriminatory and violative of Article 14 and 16 of the
                   Constitution of India and are accordingly set aside."

                   It was directed :                                               B

                   "While following the formula of 1:14 between Private
                   Secretaries and Section Officers for promotion .to the
                   category of Assistant Secretaries, the respondents will
                   consider the case of the Private Secretaries in the first       c
                   vacancy and thereafter, consider the cases of Section
                   Officers for the other 14 vacancies."
                    10. Appellants aggrieved by and dissatisfied therewith filed
              writ petitions before the Andhra Pradesh High Court. By reason
              of the impugned judgment, the said writ petitions have been          D
              allowed holding that the said Rule is not unconstitutional,
              stating :
                   "The permanent cadre strength of Section Officers is 355
                   posts as against the permanent cadre strength of private
                                                                                E
                   Secretaries to the Secretaries to the Government is 25
                   posts. The ratio between the permanent cadre strength of
                   Sections Officers on the one hand and the Private
                   Secretaries on the other is 355:25or14:1. The permanent
                   cadre strength of non-cadre officers (other than in Law,
I
        .,.        Finance & Planning Departments), i.e., from Assistant F
                   Secretaries to Additional Secretaries is 151 ~osts. With
                   a view to enable both Private Secretaries and Section
                   Officers to have reasonable opportunities of upward
                   movement to these non-cadre officers posts of Assistant
                   Secretaries and above upto Additional Secretaries, in G
                   proportion to their permanent cadre strength of 14:1, the
    ,....<.        Government decided to fix an upper limit on the total number
                   of non-cadre posts which can be held by the Private
                   Secretaries category as 10 posts leaving the other 141 .
                   posts to the Section Officers. As there were already more . H
    1066        SUPREME COURT REPORTS                   [2008] 6 S.C.R.


A          than 10 non-cadre officers from the Private Secretaries
           category, it was decided to restrict entry of Private
           Secretaries to the non-cadre officers posts till the existing
           number of non-cadre officers, from the Private Secretaries
           category fell below 10. While the Private Secretaries, on
B          promotion as Assistant Secretaries, were integrated with
           the other Assistant Secretaries and treated on par with
           them for further promotion to the posts of Deputy
           Secretaries and above, entry of persons from the Private
           Secretaries category, for promotion to Assistant
c          Secretaries category, was restricted. While the impugned
           amendment is no doubt peculiar and instead of the normal
           practice of prescribing a ratio or a quota or the total number
           of posts which may be held by persons from one of the
           feeder categories on promotion to a higher category, the
           total number of posts to be held by them in the non-cadre
D
           posts of Assistant Secretaries, Deputy Secretaries, Joint
           Secretaries and Additional Secretaries have been clubbed
           together and a maximum limit of 10 posts has been
           prescribed to be filled up from the Private Secretaries
           category, that, by itself, would not render the impugned
E          amendment to the Rules ultra vires Articles 14 and 16 of
           the Constitution of India."
          It was opined that the principles of judicial review do not
    permit the courts to examine as to whether prescription of
F   another criteria would have been more beneficial or not for that
    would, in effect, amount to sitting over the judgment over the
                                                                            ,,. '
    policy choice of the rule making authority.
        11. Mr. L.N. Rao and Mr. P.P. Rao, learned senior counsels
    appearing for the appellants would submit :
G
           1.    Keeping in view the constitutional principles laid
                 down under Articles 14, 16, 320 and 335 of the
                 Constitution of India, the cap of not more than 10
                 posts to be held at any time by the PSs channel in all
                 the posts of Secretaries is not permissible in law.
H
                   A. SATYANARAYANA & ORS. v. S. PURUSHOTHAM                   1067
                                  & ORS. [S.B. SINHA, J.]
      ~-
                       2.   The Government in a situation of this nature although       A
                            was entitled to revise the ratio of promotion from
                            1: 19 to 14: 1 based on the then existing relative
                            strength of two cadres should have rational nexus
                            with the object of promotion.

                       3.   There being total integration of Private Secretaries. B
                            and Section Officers at the level of Assistant
                            Secretaries, no further discrimination on the basis of
                            birthmark or otherwise could have been provided
                            for.
                                                                                        c
                       12. Mr. M.L. Verma, learned senior counsel appearing on
                  behalf of the State of Andhra Pradesh and Mr. Iyer, learned senior
                  counsel appearing on behalf of the respondents, on the other
                  hand, would urge:

                       A.    The impugned Rules having not prescribed for a             D
                             restriction on promotion to the posts of Deputy
         ......              Secretary onwards on merit having not provided for,
                             the judgment of the High Court is unassailable.
                       8.    Having regard to the ratio prescribed by the Rules
                             being 14: 1 in a cycle of 15, the Rule provides for a      E
                             formula for being worked out and is, thus, merely
                             clarificatory in nature.

                       C.    Under the old rule, the ratio was 1: 19 in terms whereof
                             only 7.5 posts out of 151 posts could to be allotted       F
                             to the Private Secretaries; by reason of the amended
I        ~
                             Rule now 10 posts would be available to the
                             incumbents of the said cadre and, thus, is beneficial
                             to the appellant.
                       D.    The State would stick to the ratio for promotion to the    G
                             post.of Assistant Secretaries between SOs a~d PSs
                             at 141:10 and the same under no circumstances
    ,.....;..,               would be disturbed.
                       E.    No pleading in regard discrimination having been
                                                                                        H
    1068        SUPREME COURT REPORTS                  [2008] 6 S.C.R.

                                                                          .,......,
A               raised before the Tribunal, the same should not be
                permitted to be raised for the first time before this
                Court.
           F.   The State having taken a conscious decision after
                long deliberations and upon due application of mind
B               not only on the report of the Raman Committee but
                also on the basis of the report of the Cabinet Sub-
                Committee, this Court should not interfere with the        t
                impugned rule as by reason thereof rights of
                employees of being two different and distinct
c               categories had been adjusted.
       13. Before embarking upon the rival contentions raised
  before us, we may place on record that the number of posts of
  SOs was 365, out which 355 belonged to the regular Column
  and 10 were PSs who had been undergoing training . The number
D
  of posts, however, has since gone up to 533. The number of
  posts of PSs which were earlier 25 has now gone upto 30.                -+-

         Quota in ordinary parlance would mean proportionate
  share. The State, indisputably, when provides for two different
E sources as feeder posts for promotion to a higher post, it is
  entitled to fix quota. The Tribunal, at the outset it may be noticed,
  committed an error in directing the State to consider promotion
  to the Private Secretaries in the ratio of 1:14 whereas in terms
  of Rules, it should be 14:1. Before us, learned counsel
F appearing     on behalf of the appellants conceded in regard to
  this aspect of the matter.                                              ....
       14. Indisputably, the Rules for recruitment to the post of
  PSs and SOs are different. Qualifications prescribed therefor
  are also different. Presumably, the nature and quantum of the
G work are also different.
         15. The total number of posts in Assistant Secretaries,
    Deputy Secretary, Joint Secretary and Additional Secretary are         .......
    as under:

H
.'
               A. SATYANARAYANA & ORS. v. S. PURUSHOTHAM                   1069
                          & ORS. [S.B. SINHA, J.]

                   Name of the Post                    Number of posts              A

                   Assistant Secretary                       101
                   Deputy Secretary                          30
                   Joint Secretary                           15
                                                                                    B
                   Additional Secretary                      05

                   Out of the aforementioned posts the ratio of SOs and PSs
             is:
                    Assistant Secretary                    94: 7                    c
                    Deputy Secretary                       28: 2
                    Joint Secretary                        14 : 1
                    Additional Secretary                    5:0
                   It is not necessary for us to notice all the provisions of the   D
             Rules. We may, however, take notice of the fact that Rule 3
             prescribes the method of appointment. The channel of
             promotion to the posts of Additional Secretary, Joint Secretary,
             Deputy Secretary and Assistant Secretary to the Government
             is as under :                                                          E

              "Additional Secretary to           By promotion of Joint
              government (Non-Cadre)             Secretary to Government
              other than in the law and          (Non-Cadre)       in   the
              Finance and Planning               Department 01 Secretariat
                                                                                    F
I    ·-.r·    (Finance) Department               other than Law and Finance
                                                 and Planning (Finance)
                                                 Department

              Joint     Secretary      to        (i)   By    promotion      of
              Government (Non-Cadre) in                Assistant Secretary to
                                                                                    G
              the    Departments       of              Government in the
              Secretariat other than Law               Departments         of
              and Finance and Planning                 Secretariat other than
              (Finance) Department                     Law and Finance and
                                                                                    H
    1070      SUPREME COURT REPORTS              [2008] 6 S.C.R.


A
                                        Planning (Finance)
                                        Department
                                  (ii) By transfer on tenure
                                       from any other service,
B                                      subject to Note 8 below.
     Assistant Secretary to       (i)   By    promotion     of
     Government       in    the         Section Officer (SC),      t
     Departments of Secretariat         Section Officers and
     other than Law and Finance         Private Secretaries to
c    and Planning (Finance)             Secretaries         to
     Department                         Government.
                                  (ii) By transfer on tenure of
                                       a Special        Grade
D                                      Deputy Collector of the
                                       Revenue Department
                                       for one post in the
                                       revenue Department of
                                       the Andhra Pradesh
                                       Secretariat.
E
                                  (iii) By   promotion       of
                                        Accounts Officers
                                  (iv) If the State Government
                                       so direct by transfer
F                                      from      among     full
                                       members            and
                                       approved probationers
                                       of any other service
                                       which       the   State
G                                      Government         may
                                       specify.
         By reason of GOMs No.397 Note 3 of Rule 3 was
    substituted in the following terms :
H          "NOTE (3) : The cases of Priv.ate Secretaries to
            A. SATYANARAYANA & ORS. v. S. PURUSHOTHAM                  1071
                       & ORS. [S.B. SINHA, J.]
;--.f
                Government including Private Secretaries to Chief A
                Secretary/Special Chief Secretary/Principal Secretary/
                Second Secretary/Special Secretary/Ex-officio Secretary
                to Government who are found suitable at the end of two
                years training as Section Officers shall be considered for
                appointment as Assistant Secretary to Government in the B
                Departments of Secretariat in each unit of appointment,
                along with the Section Officers including Section Officers
                (SC). Promotion from the category of the aforesaid Private
                Secretaries to the categories of Assistant Secretary to
                Government and upto the Additional Secretary to                 c
                Government shall be limited and confined to 1O(ten) posts
                only at any given point of time. A Private Secretary shall
                be promoted to the post of Assistant Secretary within the
                said earmarked
                             ,. '
                                  10 (ten) posts only on vacation of a post
                of Assistant ~ecretary/Oeputy Secretary/Joint Secretary/
                                                                            D
                Additional Secretary."
     +                  i
                16. It does not speak of any quota. It confines the number
           of posts to 10 at any given point of time. The number of 10 posts
           can be filled up only on vacation of a post of Assistant Secretary/
           Deputy Secretary/Joint Secretary/ Additional Secretary.             E
                17. The affidavit affirmed on behalf of the State as also the
           Respondent No.3 herein categorically show that ordinarily in a
           given situation 10 PSs would be working as SOs. The Tribunal,
           as noticed hereinbefore, directed the State to fix the quota of
           SOs vis-a-vis PSs at 14: 1 wrongly recorded as 1: 14. The State      F
I     'f
           as also the Private Secretaries filed writ applications
           questioning the said direction.
                 18. The stand which was taken before us, however, is that
           the limiting the number of posts to be held by PSs was limited
                                                                           G
           to 10 having regard to the quota of promotion being fixed at
           14: 1 so as to enable the cycle of 15 to be worked out.
    r1f-
                We have noticed hereinbefore, although it does not appear
           from the impugned GOMs that the State intends to strive to
           maintain the ratio of 141 to 10 in the posts of Assistant            H
    1072       SUPREME COURT REPORTS                    (2008] 6 S.C.R.

                                                                              :r-1
A   Secretaries onwards.

         19. Various examples have been sought to be placed
    before us as a result whereof the ratio may get disturbed in
    given cases. It is stated, that out of 15 posts, three may go to
    PSs and 12 to the SOs.
B
        20. We, however, are of the opinion that the validity or
  otherwise of a quota rule cannot be determined on surmises                 t
  and conjectures. Whereas the power of the State to fix the quota
  keeping in view the fact situation obtaining in a given case must
c be  conceded, the same, however, cannot be violative of the
  constitutional scheme of equality as contemplated under Articles
  14 and 16 of the Constitution of India. There cannot be any doubt
  whatsoever that a policy decision and, in particular, legislative
  policy should not ordinarily be interfered with and the Superior
  Courts, while exercising its power of judicial review, shall not
D
  consider as to whether such policy decision has been taken
                                                                           -4.
  mala fide or not. But where a policy decision as reflected in a
  statutory rule pertains to the field of subordinate legislation,
  indisputably, the same would be amenable to judicial review,
  inter alia, on the ground of being violative of Article 14 of the
E Constitution of India. {See Vasu Dev Singh & Ors. v. Union of
  India & Ors. [2006 (1) SCALE 108] and State of Kera/a & Ors.
  v. Unni & Anr. [(2007) 2 SCC 365].
         21. The High Court, therefore, in our opinion, was not wholly
F correct when it opined that a policy decision cannot be a subject        .,,.
   matter of judicial review. If the State has the power to fix a quota,            '
   the Rule underlying the legislative policy must stop at that and
   the necessary consequences thereof must ensue. Indisputably,
   again although the State was entitled to provide for quota as
C3 also a guideline as to how the roster should work out itself, but
   thereby it cannot be permitted to put a cap on promotion for the
   entire service period.
                                                                            ..,.,
        22 While saying so, we are not unmindful of the legal
  principle that nobody has a right to be promoted; his right being
H confined to right to be considered therefor
                  A. SATYANARAYANA & ORS. v. S. PURUSHOTHAM                 1073
                             & ORS. [S.B. SINHA, J.]
        I-~·
                      23. Similarly, the power of the State to take a policy A
                decision as a result whereof an employee's chance of promotion
                is diminished cannot be a subject matter of judicial review as
                no legal right is infringed thereby.
                       24. However, such a Rule must apply to both the groups.
.               Promotion to a higher post from the officers of a particular cadre B
                would depend upon a large number of factors - a person may
         i      retire; he may be departmentally proceeded against, he may
                be sent on deputation; he may resign; Cessation of
                employment, thus, may be on various grounds. If the number of
                posts is limited despite uncertainty with regard to arising of any c
                vacancy on any higher post, the validity of such a rule would be
                open to question.
                       25. The Superior Courts, while exercising their power of
                judicial review, must determine the issue having regard to the
                effect of the subordinate legislation in question. There must exist D
         ....   a rational nexus between the impugned legislation and the object
                of promotion. Promotions are granted to a higher post to avoid
                stagnation as also frustration amongst the employees. This
                Court, in a large number of decisions, has emphasized the
                necessity of providing for promotional avenues. [See Food E
                Corporation of India and Ors. v. Parashotam Das Bansal and
                Ors. [Civil Appeal No.991 of 2008 decided on 5.2.2008]. The
                State, keeping in view that object, having found itself unable to
                provide such promotional avenue, provided for the scheme of
                Accelerated Career Progress (ACP). The validity and effect of F
    )    ....   the impugned legislation must be judged keeping in view the
                object and purport thereof. This Court would apply such principle
                of interpretation of statute which would enable it to subserve the
                object in place of subverting the same.
                     26. Whereas, on the one hand, it has been contended G
                before us that all future promotions that is promotion from the
                post of Assistant Secretary upwards are given on merit, on the
                other hand, a cap of 10 posts has been made for all the four
                categories of posts. It is one thing to say that the State evolves
                a policy of prescribing a reasonable quota at all levels of the H
    1074      SUPREME COURT REPORTS                   [2008] 6 S.C.R.

                                                                         :\o- ...
A promotion but it would be another thing to say that while totally
  ignoring the question of birthmark, a few posts shall be identified
  only on the basis of the original posts held by the employee
  concerned.
       27. To the said extent, the rule maintain a birthmark which
B runs counter to the decisions of this Court in Dwarka Prasad &                        ..
  Ors. v. Union of India & Ors. [(2003) 6 SCC 535].                      t
          Although mere chance of promotion is not a fundamental
    right, but right to be considered therefor is. In that view of the
    matter, any policy whereby all promotional avenues to be
c   promoted in respect of a category of employees for all time to
    come cannot be nullified and the same would be hit by Article
    16 of the Constitution of India.
       28. It has not been disputed before us that a panel is
D required to be prepared every year. The High Court, in its
  judgment, has considered the question only with reference to
  upward mobility.
        From the Rules, it furthermore appears that even the SOs
  can be transferred to the posts of PSs. Who would be holding
E what post, even at a subordinate level, may, thus, be a question
  of chance. It has been contended that whereas an Assistant
  ncrmally has to put in a minimum of 15 to 16 years of service
  before he is promoted as a SO and further 8 to 12 years service
  as a SO before he is promoted to the post of Assistant
F Secretary; a PS could become Assistant Secretary within a               )'
  period of 10 years. Our attention has further been drawn to the                   '
  fact that at one point of time all the five posts of Additional
  Secretaries had been occupied by persons from the Private
  Secretary stream. They allegedly have other chances of
G promotion  to the posts of Commercial Officers etc.
        29. Grievances of SOs have been taken into consideration
  for the purpose of fixation of a ratio of 1: 19 amendeding the
  same to 14:1. No exception thereto can be taken but hardship
                                                                             ...
  faced by a section of employees in the past by itself cannot be
H a ground to deprive another section of their constitutional and
           A. SATYANARAYANA & ORS. v. S. PURUSHOTHAM                   1075
                      & ORS. [S.B. SINHA, J.]
• -f
         legal right.                                                          A
               30. We are, therefore, of the opinion that whereas ordinarily
         the ratio should not be disturbed, the same should not lead the
         court to a conclusion that such a policy has to be accepted
         although it takes away the right of a class of employees.
                                                                             B·
                31. We have no doubt in our mind that before a rule is
         declared ultra vires, the same must be held to be wholly arbitrary
         or irrational. In any event a plea of discrimination is based on
         adequate pleadings therefor would be essential. What, however,
         must be noticed by us is that the impugned rule does not take c
         into consideration the events which may take place in future, as
         for example increase in the strength in the cadre. If the number
         of posts for promotion is limited to 10, even in a case like the
         present one where the number of posts has gone up, only 10
         posts can be filled up from the cadre of the PSs althougn the
                                                                             D
         same would contravene the ratio of 14:1. If the Government
         intends to change the ratio, it may do so. It may also provide for
         separate rules providing for maintenance of two different cadres
         at all levels. But what is impermissible is laying down a condition
         subsequent to adoption of a policy decision which defeats the
         object and purport thereof.                                         E
             32. A statutory rule, it is a trite law, must be made irP
         consonance with constitutional scheme.
              A rule must not be arbitrary. It must be reasonable, be it
>
    .,   substantive or a subordinate legislation. The Legislature, it is
         presumed, would be a reasonable one. Indisputably, the
                                                                               F

         subordinate legislation may reflect the experience of the Rule
         maker, but the same must be capable of being taken to a logical
         conclusion.
                                                                               G
               33. Applying the said principle, we are of the opinion that
         the impugned Government Orders cannot be sustained. They
,~       are set aside accordingly. Appeals are allowed with costs. Costs
         assessed at Rs.25,000/- (Rupees twenty five thousand only.)·
         R.P.                                            Appeals allowed. 'H


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