Holding

The earlier confirmed post is abolished only upon confirmation in the new cadre post; mere selection on probation does not suffice, entitling the employee to retain the earlier post.

Summary

Anil Kumar Soni was confirmed as Assistant Technical Officer (ATO) in the Punjab Financial Corporation in 1976. He later applied for and was selected as Assistant Manager, a new cadre post filled by direct recruitment, and was appointed on probation in 1980. After several extensions of his probation, the corporation terminated his service in 1984 under Regulation 19(2) of its Staff Regulations. Soni contended that despite the termination from the Assistant Manager post, he remained entitled to his earlier confirmed ATO position. The corporation argued that the Board's resolution automatically abolished his earlier post upon selection for the new cadre. The Supreme Court held that abolition of the earlier post occurs only upon confirmation in the new cadre post, not merely upon selection or probationary appointment, and ordered the corporation to reinstate Soni in his ATO post with back wages or an equivalent post if unavailable.

Issues considered

Whether selection and appointment on probation to a new cadre post automatically abolishes the employee's earlier confirmed post.
Whether termination of service from the new cadre post without confirmation entitles the employee to continue in the earlier confirmed post.

Legislation cited

Punjab Financial Corporation (Staff) Regulations, 1961s. Regulation 19(2)

Subjects

appointmentprobationconfirmationabolition of postservice terminationstaff regulationsboard resolutionreinstatementback wagesnew cadre

Judgment

'\
ANIL KUMAR SONI
A v.
THE MANAGING DIRECTOR, PUNJAB FINANCIAL
CORPORATION ANiJ ANR.
~
JULY 25, 1991
~
[N.M. KASLIWAL AND M.M. PUNCHHI]

Punjab.Financial Corporation (Staff! Regulations, 1961-Regula-
tion 19(2)-Termination of service of an employee from the post of
Assistant Manager on the basis of Board's Resolution, who was con- ...
firmed in the post of Assistant Technical Officer-Whether justified- ...
~ Board's Resolution-Object of-Appointment in new cadre post-
Meaning of.

The appellant was appointed as Assistant Technical Officer in the
Punjab Financial Corporation and was confirmed as Assistant Techni-
p cal Officer (Textiles) on 14. 7.1976. Thereafter he applied for the post of
Assistant Manager, which was to be filled up by direct recruitment and
he was selected and appointed as Assistant Manager on probation on ~
;26.5.1980. The period of probatioil of the appellant was extended from
time to time and ultimately the Respondent-Corporation vide its order >
dated llth May, 1984 terminated the service of the appellant.
J1
The appellant being aggrieved, filed a writ petition, which was
dismissed by the High Court against which this Appeal was made.

The ~ppeJlant conterrded that even if the order of termination
from the posi of Assistant Manager during the period of probation was )·-
Ji hel<! to lj~ proper, still he was entitled· to continue on the post of
Assistant Technical Officer on which he was admittedly confirmed.

The Corporation contended that as soon as the appellant was
selected for the post of Assistant Manager, the earlier post of Assistant
Te~tmical Officer held by the appellant stood abolished; that there was
(;! no post of Assistant Te~hnical Officer on which the a!lpellant could have
!Jeen appointed after his termination of service from the post of
A.s$istant Manager; and that mere selection on the new cadre post of ."--
A.ssistant Manager was sufficient for abolishing the post of Assistant
Technical Officer.

H Partly allowing the appeal of the emplor"', this Court,

184
A.K. SONI v. PUNJAB FINANCIAL CORPN.

HELD. I.OJ. The object of the resolution of the Board was that if
185

A
I
an employee of the Corporation was inducted in the new cadre post tlien
the post already held by him shall be abolished from the date of such
appointment in ihe new cadre. The entire purpose of such resoluiiorl
was that if an employee of the Corporation was appointed iii the rlew
cadre post, to be filled up by direct recruitment, then the Corporation
did not want to continue the earlier post held by such employee of the
Corporation. Thus in the scheme of things such appointrrieiit of the
employee of the Corporation to the new cadre posts ought to have been
confirmed appointment. [187E-G I

1.02. It would be against all canons of justice that confirmed
employee of the Corporation though allowed to compete for a new cadre t'.
post by direct recruitme,nt, but having not beeri confirmed on such post;
is not allowed to claim his right even on the fower post oil which he had
permanent lien to continue. ·11 would be a travesty of justice to throw
the person on the streets after a period of service of nine years in the
Corporation. [187G-H]
b
1.03. The post of Assistant Technical Officer held by the appel-
• lant as a confirmed employee, could have only been abolished in case he
was confirmed on the post of Assistant Manager. II87H I

1.04. The appointment in the new cadre post as mentioned in the
resolution of the Board means confirmed appointment on such Post· [lilSA-8] E
I.OS. The order of termination of the appellant so far as the p0st oi'
Assistant Manager is conc~rned is upheld, the responderit-Cotporaiiori
is directed to allow the appellant to continue oil tile posi of Assisiani
Technical Officer (Textiles) on which he had already been ct>nfirriteil ori
14.7.1976 with all the back wages and other benefits. lri case no post of F
Assistant Technical Officer (Textiles) is existing iii the Corporation, the
appellant can be appointed on any other equivalent post carrying the
same scale of pay which the appellant was drawing on the post of
Assistant Technical Officer. [J88B-D]

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2835 G
of 1986.

From the Judgment and Order dated 9.5.1985 of the Punjab and
Haryana High Court in Civil Writ Petition No. 5328 of 1985.

M.K. Ramamurthi, and S.S. Rana foi the Appellant.
186 SUPREME COURT REPORTS [1991] 3 S.C.R.
/
Dr. K.S. Sidhu, Ms. Maldeep Sidhu, J.C. Bubber, Sr. Personal
A
Manager, PFC with him for the Respondents.

The Judgment of the Court was delivered by

KASLIWAL, J. This appeal by special leave is directed against
B the decision of the Punjab & Haryana High Court dated 9.5.1985. The
appellant Anil Kumar Soni was appointed as Assistant Technical
Officer in the Punjab Financial Corporation (hereinafter referred to as
'the Corporation'). The appellant was confirmed as Assistant Techai-
cal Officer (Textiles) on 14. 7 .1976. The appellant then applied for the
post of Assistant Manager which was to be filled up by direct recruit-
ment. The appellant was selected and appointed as Assistant Manager
c on probation on 26.5.1980. The period of probation of the appellant
was extended from time to time and ultimately the Corporation vide its
order dated 11th May, 1984 terminated the service of the· appellant in
exercise of the powers conferred by Regulation 19(2) of the Pun jab
Financial Corporation (Staff) Regulations. 1961. The appellant aggrie-
D ved against the order the termination filed a writ petition which came
to be dismissed by the High Court by the impugned order dated
9.5.1985.
•
The only contention raised. by Shri M.K. Ramamurthy, learned
Senior counsel which appealed to us, is that even if the impugned order
E of termination from the post of Assistant Manager during the period of
. probation was held to be proper, still the appellant was entitled to
continue on the post of Assistant Technical Officer on which he was
admittedly confirmed as back as 14. 7.1976. In order to consider this
aspect of the matter it would be. proper to consider the respective
contentions raised by the learned counsel for the appellant as well as
F the Corporation. The High Court in this regard took the view that so
far as the post i.e. Assistant Technical Officer which the appellant held
before he was selected.for the post of Assistant Manager is concerned,
stood abolished from the date he was appointed . to the post of
Assistant Manager in view of the resolution of the Board (Annexure
R-1/3). The relevant part of the aforesaid Resolution reads as under:
G
.. The various levels of posts, subject to such modifications
as may be decided by the Board. may be advertised. Offi- >--
cers of the Corporation who fulfil the requisite qualifica-
tions and experience. may apply for these posts and may
compete with the candidates from the open market. Within
H the_ overall strength proposed earlier. Officers may be
A.K. SONI v. PUNJAB FINANCIAL CORPN. [KASLIWAL. J.[ 187

selected to various levels of hierarchy depending upon their
A.
professional competence and experience .............. .
The posts now held by the employees of the Corporation,
who happen to be inducted into the new cadre posts, shall
be abolished from the date of their appointment to the new
cadres .......... "
B
Taking support from the above resolution it has been contended
on behalf of the Corporation that as soon as the appellant was selected
for the post of Assistant Manager, the earlier post of Assistant
Technical Officer held by the appellant stood abolished. It has thus
been contended that there was no post of Assistant Technical Officer
on which the appellant could have been appointed after his termina- C
tion of service from the post of Assistant Manager by the impugned
order dated 9.5.1985.

We see no force in the above contention. It is an admitted posi-
tion that the appellant was a permanent employee of the Corporation'
having been confirmed as Assistant Technical Officer on 14. 7.1976. D
The Corporation advertised the posts of Assistant Manager to be filled
. up by direct recruitment and the employees of the Corporation were
also allowed to compete with the candidates from the market. The
appellant was no doubt selected and appointed as Assistant Manager
on probation on 26.5.1980 but his services were terminated on
11.5.1984 during the period of prnbation and before the confirmation E
of the appellant on the said post. The object of the resolution of the
Board extracted above was that if an employee of the Corporation was
inducted.ii! the new cadre post then the post already held. by him shall
be abolished from the date of such appointment in the new cadre. The
entire purpose of such resolution was that if an employee of the Corpo-
ration was appointed in the new cadre post to be filled up by direct· F
recruitment then the Corporation did not want to continue the earlier
post held by such employee of the Corporation. Thus in the scheme of
things such appointment of the employee of the Corporation to the
new cadre posts ought to have been confirmed appointment. It would
be against all canons of justice that confirmed employee of the Corpora-
tion though allowed to compete for a new cadre post by direct recruit- G
m.ent· but having not been confinned on such post is not allowed to
claim his right even on th" lower post on which he had permanent lien
to contrnue. It would be a travesty of justice to throw the person on
the streets after a period of service of nine years in the ("orporation.
Tbe post of Assistant Technical Officer held by the appellant as a
. confi£med employee, could have only been abolished in case he 'NaS H
'
' '

A
188 SUPREME COURT REPORTS {1991] 3 S.C.R.

confirmed on the post of Assistant Manager. The contention of the
learned coµnsel for the Corporation that mere selection on the new
cadre post of Assisiant'Manager was sufficient for abolishing the posi
of Assistant Technical Officer cannot be accepted. The appoinimeitt in
the new cadre post as mentioned in the resolution of the Board inearis
confirmed appointment on such post.
B
In the result we allow ihe appeal in part, set aside the order of
the High Court dated 9.5.1985 arid uphold the impugned order of
termination of the appellant so far as the post of Assistant Manager, is
concerned, but direct the respondent Corporaiion to allow the appel-
lant to contini1e on the post of Assistant Technicai Officer (Textiles)
c on which lie had already been confirmed on 14.7 :1976 with all the back
Wages and pther benefits. It is, however made clear that in case no post
of Assistant Technical Officer (Textiles) is existing in the Corpcirtion,
the appell~nt can be appointed on any other eq uivaleitt post carrying
the same scale of pay which the appellant was drawing on the post of
Assistant Technical Officer. The Corporation shall pass appropriate
D
orders to comply our direction within one month from today. The
parties to pear their own costs.

V.l>.R. Appeal partly allowed: