Holding

The selected candidates do not acquire any indefeasible right to appointment; the bank is under no legal duty to fill all vacancies, and it may revise its indent before results when based on bona‑fide reasons, while a non‑speaking dismissal order does not constitute law under Article 141.

Summary

Baitarani Gramiya Bank submitted an original recruitment indent to the Banking Service Recruitment Board (BSRB) for Officers and Field Supervisors, but later pruned the indent due to a financial crisis and communicated the revised numbers before the examination results were declared. The BSRB refused to accept the revised indent, issued nomination letters based on the original indent, and published the merit list, after which the bank did not appoint the selected candidates. The candidates filed writ petitions seeking mandatory appointment; the Orissa High Court directed the bank to issue appointment orders, which the bank appealed to the Supreme Court. The Supreme Court held that selection does not confer an indefeasible right to appointment, that the bank is under no legal duty to fill all vacancies, and that revising indents before results is permissible when based on bona‑fide reasons. The Court also ruled that a non‑speaking dismissal order does not constitute law under Article 141 and that the bank need not disclose prior dismissed SLPs. Consequently, the Supreme Court set aside the High Court orders and allowed the bank’s appeal, while issuing limited directions to consider future vacancies and age‑relaxation.

Issues considered

When does a candidate acquire an indefeasible right to appointment after being selected in a recruitment process?
Whether a Regional Rural Bank is legally obligated to fill all vacancies advertised in its indent.
Whether a bank may revise its recruitment indent before the declaration of results on bona‑fide grounds.
Whether the bank’s reasons for pruning the indent are bona‑fide or unreasonable.
Whether the non‑speaking dismissal of a previous Special Leave Petition must be disclosed in a subsequent SLP.
Whether a non‑speaking order of dismissal constitutes law for the purposes of Article 141 of the Constitution.
Whether the Full Bench judgment of the Orissa High Court attained finality and is binding on the parties.

Legislation cited

Constitution of Indias. Article 136, s. Article 14, s. Article 141, s. Article 16
Regional Rural Banks Act, 1976

Subjects

service lawrecruitmentregional rural banksappointmentselectionindefeasible rightpublic interestfinancial crisispruning of indentsmandamusconstitutional lawArticle 14Article 16Article 136Article 141

Judgment

BAITARANI GRAMIYA BANK A
v.

- PALLAB KUMAR AND ORS.

SEPTEMBER I 0, 2003

[M.B. SHAH AND DR. AR. LAKSHMANAN, JJ.] B
Service Law:

Regional Rural Banks (Appoilltment and Promotion of Officers and
other Employees) Rules, 1988:

Appointment-Officers and Field Supervisors-Selections made by C
Banking Service Recruitment Board (BSRB)-Original indent placed by
bank to BSRB subsequently pruned down due to financial crisis well ahead
of publication of results-However, BSRB sent nomination letters to
candidates based on original indent, published the results and also intimated
the selection-But the candidates were not appointed-In writ proceedings D
the High Court directed the Bank to issue appointment orders to the
candidates-Correctness of-Held: There is no restriction in pruning and
reviewing the indent even before or after declaration of results-Bank is
under no obligation or legal duty to fill up any or all of the vacancies-The
candidates had not acquired any indefeasible right to be appointed to the
posts in question-However, in order to do justice between the parties and E
balancing of equities certain directions issued-Regional Rural Banks Act,
1976.

Constitu1ion of Indian, 1950:

Articles I 36 and 141-Dismissal of Special Leave Petition by a non- F
speaking order-Held : Such an order does not constitute law declared by
Supreme Court.

Article 136-Special Leave Petition-Dismissal of by a non-speaking
order-Not disclosed in subsequent SLP in an identical matter-Effect a/-
Whether amounts to suppression-Held: No, it need not be disclosed since G
it was dismissed at the SLP stage itself-Practice and Procedure.

The appellant-Bank submitted an indent to the Banking Service
Recruitment Board (BSRB) for selection to the categories of Officers
and Field Supervisors. Subsequently, in view of financial crisis the
appellant submitted a revised and pruned down indent to the BSRB H
571
572 SUPREME COURT REPORTS [2003] SUPP. 3 S.C.R.
A well ahead of the publication of the results. However, the BSRB refused
to accommodate the appellant's request and sent nomination letters to
the candidates based on the original indent, published the results and
intimated the selection. The respondents, however, were not appointed
by the appellant-Bank. Being aggrieved the respondents filed writ
petitions in the High Court for a direction to the appellant to appoint
-
B them in the respective posts. The Division Bench of the High Court
referred the matter to a larger Bench. In accordance with the opinion
of the Full Bench, the Division Bench directed the appellant to issue
appointment orders to the respondents. Hence this appeal.

On behalf of the appellant, it was contended that the selection/
C nomination did not confer an indefeasible right on the respondents to
seek appointment.

On behalf of the respondents, it was contended that the appellant
had not disclosed the fact of dismissal of its previous SLP in an identical
matter and, therefore, the present appeal was liable to be dismissed on
D account of such suppression; and that since the appellant did not
challenge the judgment of the Full Bench ofthe High Court that judgment
had attained finality.

Allowing the appeal, the Court

E HELD : I. The respondents/writ petitioners had not acquked any
indefeasible right to be appointed to the posts in question when the
appellant-Bank has taken a decision not to fill up all the vacancies,
which is based on sound bona fides and appropriate reasons. The
appellant-Bank is also under no obligation or legal duty to fill up any
F or all of the vacancies and that the basis indicated by the appellant-
Bank for pruning down the indents cannot at all be characterized to be
ma/a fide or unreasonable. [586-E)

State ofA. P. v. Sadanandam, AIR (1989) SC 2060; Shankarsan Dash
v. Union of India, [19911 3 SCC 47; Union Territory of Chandigarh v.
G Di/bag Singh, [199311sec154; Babita Prasad v. State of Bihar, [1993)
Supp. 3 SCC 268; State of Haryana v. Subash Chander Marwah, [19741
3 SCC 220 and UP. Bhumi Sudhar Nigam Ltd. v. Shiv Narain Gupta,
[19941 Supp. 2 SCC 541, relied on.

2.1. There can be revision of indent even before declaration of
H results and even after declaration of results and an alternative
BAITARAN! GRAMIYA BANK v. PALLAB KUMAR 573

mechanism has been laid down. Neither the Regional Rural Banks Act, A
1976 nor the Regional Rural Banks (Appointment and Promotion of
Officers and other Employees) Rules, 1988, restricts pruning and/or
mandates that selectee should be appointed. [590-E, FJ

2.2. Though the advertisement was published in newspapers and
the examinations were held thereafter, the Bank had communicated the B
revised indent well ahead of the intimation of selection and publication
of results. The Bank had bona fide and genuine reasons for pruning
down the indent. If the Banks are forced to accommodate Officers and
Field Supervisors more than their required indent, it will have a crippling
effect on the Bank and Public interest will stand seriously prejudiced as C
several employees will have to be unnecessarily retained and public
money will have to be expended on them. When public interest competes
with private interest, the private interest will have to give way to public
interest. In this case, asking the appellant-Bank to accommodate as
directed by the Banking Service Recruitment Board would cause loss to
public revenue. [591-A-C] D
3. The appellant-Bank could not have challenged the Full Bench
judgment because the Full Bench had answered the questions and
relegated the matter to the Division Bench for disposal and the cause of
action for filing the present appeals arose only after the Division Bench
of the High Court disposed of the matters. (586-C, DJ E
4.1. The dismissal of special leave petition by a non-speaking order,
which does not contain the reasons for dismissal, does not amount to
acceptance of the correctness of the decision sought to be appealed against.
Such an order does not constitute the law laid down by the Supreme
Court for the purpose of Article 141 of the Constitution. (586-A, BJ F
Kunhayammed v. State of Kera/a, [2000J 6 SCC 359, referred to.

4.2 The appellant-Bank was not bound to disclose, in the present
special leave petition, the dismissal of its previous special leave petition
in an identical matter since the previous special leave petition was G
dismissed at the special leave petition stage itself. (585-G, HJ

5. With a view to doing justice between the parties and balancing
the equities the following directions are iSS1w1 :

(a) If, however, the business of the Bank would require filling up H
574 SUPREME COURT REPORTS [2003] SUPP. 3 S.C.R.

A of more vacancies and if the respondents/writ petitioners' turn would
come as per the merit list, there is no doubt that the concerned
respondents/writ petitioners would be absorbed in service as per Rules.

(b) The appointment shall be made on the basis of merit/select list
if there are vacancies in any cadre.
B
(c) The select list would remain in force for two years from the
date of this judgment.

(d) The appellant-Bank would consider the question of relaxation
of age bar in suitable cases so as to minimize the hardship. [592-C-E]
c
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 2050-
2052 of 1996.

From the Judgment and Order dated 26.9.94 of the Orissa High Court
D in O.J.C. Nos. 1866, 2981 and 5052 of 1991.
K.V. Viswanathan, K.A. Mohan Singh, B. Raghunath and K.V.
Venkataraman for the Appellant.

Vinoo Bhagat and Abhijit Sengupta (NP) for the Respondents.
E The Judgment of the Court was delivered by

DR. AR. LAKSHMANAN, J. : These appeals are directed against
the judgment and order of the Division Bench of the High Court of Orissa
dated 26.09.1994 in O.J.C. Nos. 1866, 2981 and 5052 of 1991.
F
The High Court, by the impugned judgment, has allowed the writ
petitions filed by the respondents herein and has directed the appellant-
Bank to issue appointment orders to them for the post of Officer/Field
Supervisors.

G For the purpose of recruitment, the Banking Service Recruitment
Board (hereinafter referred to as "the BSRB") issued an advertisement in
the newspapers. The contention of the Bank before the High Court was that
in view of the financial crisis they had revised their indents submitted to
the BSRB, long before the publication of the results regarding intimation
H of selection and as such the BSRB ought not to have gone ahead and issued
BAITARANI GRAMIYA BANK v. PALLAB KUMAR [LAKSHMANAN. J.] 575

letters of selection based on the original indent submitted by the Bank to A
the candidates and that merely by getting an intimation of selection, no
right accrues to the candidates for appointment.

The selections to the category of Officers in the Bank is done by the
BSRB. Indents are submitted by the Bank to the BSRB. By letter dated B
14.01.1987, an indent was placed by the Bank to the BSRB. In the said
indent for the category of Officers, 36 posts were mentioned and for the
category of Field Supervisors, 61 posts were mentioned. Thereafter, by
letter dated 23.06. 1987, the indent for Field Supervisors was revised from
61 to 30. By further letter I 8.11.1987 another revised indent was submitted,
wherein the requirements were as follows : c
Officers Cadre 36

Field Supervisors 30
D
On 23.08.1988 a revised indent was submitted by the Bank to the
BSRB under which their requirements were as follows :

Officers 14

Field Supervisors 11 E

This letter was replied to by the BSRB on 01.09.1988 whereunder
they refused to accommodate the Bank's request. According to the Bank,
as stated in the grounds of special leave petition, the reasons which had
pruned their indent well ahead of the publication of the results were : F

(a) the Bank incurred loss of more than Rs. 7. crores;

(b) the target in the various anti-poverty programmes could not be
met on account of the loss;
G
(c) the ban imposed by the State Government, for the opening of
further branches, in view of the loss;

(d) due to poor recovery performances, the rrral banks became
ineligible for refinance from NABARD and H
576 SUPREME COURT REPORTS [2003] SUPP. 3 S.C.R.
A (e) due to the Award given by the National Industrial Tribunal on
30.04.1990, all staff of Gramiya Bank were equated with the corresponding
staff of the Sponsor Bank as regards pay and allowances and all other
benefits with retrospective effect from 1987. In view of this the arrears
payable to the existing employees alone come to Rs. 2. crores and
•
B establishment expenditure increased by 150%.

According to the Bank they had bona fide and genuine reasons for
pruning down the indent and the Bank had communicated the revised
indent by 23.08.1988, well ahead of the publication of the results and if
the Banks are forced to accommodate Officers and Field Supervisors more
C than their required indent, it will have a crippling effect on the Bank.
As already noticed, the Bank had placed a revised indent in view of
the changed circumstances. However, the BSRB expressed its unwillingness
to accept the revised indent and they had stated that the matter will be
D considered by the Board. In the meeting of the Board held on 11.11.1988,
it was decided that no reduction in the original indent was to be done. The
BSRB expressed their unwillingness to accommodate the appellant-Bank's
request and sent nomination letters to the respondents based on the original
indent and also published the results and also intimated the selection on
E 28.11.1988. The respondents/candidates aggrieved by the non-absorption
filed writ petitions in the High Court seeking Mandamus directing the
appellant-Bank to appoint them in the respective posts. The matter was
placed before the Division Bench of the High Court. The Division Bench
observing that as a common merit list was drawn by the BSRB, there can
F be no dispute that the appointments have to be strictly in accordance with
the merit list, in view of the conflicting views expressed in various
decisions placed the writ applications before a larger Bench to decide the
question as to (a) when specific vacancies were intimated by the Gramiya
Banks for appointment to the posts of Field Supervisors and Officers, and
in pursuance of their indent, the BSRB conducted one common examination,
G and the petitioners were successful, whether they can be denied the orders
of appointment by the concerned Bank on the ground of financial crisis,
(b) when BSRB after conducting examination in respect of all the posts
prepared one merit list and because of individual choice, any/some
successful candidates were allotted to a particular Bank whether the Bank,
H to which any successful candidate is allotted can refuse order of appointment
BAITARANJ GRAMIY A BANK v. PALLAB KUMAR [LAKSHMANAN, J.] 577

even if the candidate is higher up in the select list. Particularly, in this case A
while other Banks issued appointment orders to other successful candidates,
non-issuance of appointment letters by Baitarini Gramiya Bank will be
violative of Articles 14 and 16 of the Constitution, and (c) whether a person
selected in pursuance of an advertisement for selection has a right to
demand order of appointment, if he is higher up in merit list, and others B
lower in the merit list are appointed in other Banks.

The Full Bench held as follows :

"Coming to the question referred to us, we may say that the
ground given in the present case for slashing down is "financial C
crisis". As to this reason, we would say, as admitted by Shri Dora
that the entire finance for Gramiya Banks comes from outside
sources; 35% from the sponsor Bank, 15% from the concerned
State Government and the remaining 50% from the Central
Government. So, there is no financial contribution by the Gramiya D
Bank. We, therefore, do not understand as to what financial crisis
was there or could have been there for the Bank at hand to slash
down the indent to 14, unless that was a self-created crisis. Shri
Dora submits that the crisis was generated because the aforesaid
authorised were not carrying out their obligations. That, however, E
was a matter to be taken up with the concerned authorities. The
selected candidates cannot be allowed to suffer because of this,
as the result of the same may be that a selectee would not get
appointment even if he be higher in merit list whereas a candidate
lower in ranking would get appointment, which could be totally
against public interest and cannot be allowed to take place. This F
is our answer to question No. (a).

Question No. (b) answers itself in view of our answer to
question No. (a). To reiterate, we say that once an allotment is
made to a particular Bank, it would not be open to it to refuse G
appointment which would even be violative of Article 16 of the
Constitution.

As to question No. (c), we would state that though in law
a selected candidate does not acquire an indefeasible right of
appointment in view of what has been held by a Constitution H
578 SUPREME COURT REPORTS [2003) SUPP. 3 S.C.R.

A Bench in Shankarsan Dash v. Union of India, AIR (1991) SC
1612, which was followed by a three Judge Bench decision in
Union of Chandigarh v. Di/bagh Singh, AIR (1993) SC 16, but
the Scheme of selection of the Officers and other employees of
the regional rural Banks, to which we have referred, which
requires examination of the matter by a centralised agency (the
B
Board) and which permits giving of option and visualises
preparation of a select list as per descending order of merit, would
clothe a selectee higher up in the merit list with a right to demand
appointment if a person lower in the list has been appointed in
any other Bank, any other view would denude his fundamental ,
c right available by the force of Article 16 of the Constitution.

The aforesaid are our answers to the three questions. Let the
cases be now placed before the Bench which had made the
reference for their disposal keeping in view the answers given."
D
The Division Bench after remand by the Full Bench passed the
following order:

"As noted earlier, while referring the cases to the Full Bench,
we had discussed in detail the case of the parties and the
E contentions raised on their behalf. Therefore, we do not like to
burden this order by repeating the same in the said order. For the
present purpose, it is sufficient to state that the Full Bench has
answered all the three questions formulated in favour of the
petitioners. In that view of the matter, there is little scope for doubt
F that the petitioners are entitled to the reliefs claimed.

Accordingly the writ petitions are allowed. The opposite
party Baitarani Gramiya Bank is directed to issue appointment
orders to the petitioners in the respective posts for which they have
been selected forthwith. There will be no order for costs."
G
Aggrieved by the judgment and order dated 26.09.1994 of the
Division Bench of the High Court, the above three appeals were filed.

Mr. K.V. Viswanathan, learned counsel appearing for the appellant-
H Bank, submitted that the impugned order has totally overlooked the
BAITARANI GRAMIYA BANK v. PALLAB KUMAR [LAKSHMANAN, J.] 579

prejudice that would be caused to public interest if the respondents are A
directed to be appointed in the appellant-Bank. He also submitted that in
the advertisement issued by the BSRB, based on their original indent, it
was clearly mentioned that the vacancies are approximate and likely to be
varied upward or downwards depending on the needs of the indenting
Banks and that this aspect of the matter has not been considered at all either B
by the Full Bench or by the Division Bench of the High Court. He would
further submit that in the case of the appellant-Bank, the revised indent was
submitted on 23.08.1988, long before the publication of the result an
intimation of selection was sent to the respondents and the BSRB ought
to have sent the nominations on the basis of the revised indent and not on C
the basis of the original indent and that for the fault of the BSRB, the
appellant-Bank cannot be prejudiced. In any case, he submitted that the
selection/nomination does not confer a indefeasible right on the respondents
to seek appointments and the selection intimation was not an offer of
appointment when in fact in the selection nomination itself it was D
mentioned that the offer of appointment was to be made by the Bank. It
is to be noted that no such offer was made. He further submitted that the
Bank had reduced the indent for bona fide reasons as stated in the grounds
of special leave petition and that the Bank had bona fide and genuine
reasons for pruning down the indent.
E
Referring to the Full Bench judgment of the High Court, Mr.
Viswanathan, learned counsel submitted that there was no material either
before the Full Bench or before the Division Bench to prove that candidates
with lesser merit had been favoured with letters of appointment and in the
absence of any material particulars, the Full Bench could not have been F
proceeded on the basis that candidates with lesser merit were given offers
of appointment and candidates with higher merits were denied. He would
further argue that, in any case, it is for the BSRB to accommodate the
unabsorbed candidates since it was their fault of having proceeded on the
basis of the original indent and not on the basis of the revised indent in G
spite of their own advertisement clearly intimated the candidates that the
vacancies notified were only approximate and are likely to vary upwards
or downwards depending on the needs of the indenting Bank, Mr.
Viswanathan, in support of his contention, placed reliance on the following
judgments : H
580 SUPREME COURT REPORTS [2003] SUPP. 3 S.C.R.

A l. Shankarsan Dash V. Union of India reported in [1991] 3 sec 47.
2. Babita Prasad & Ors. v. State of Bihar & Ors .. reported in [1993)
Supp. 3 sec 268.

B 3. State ofBihar & Ors. v. Secretariat Assistant Successful Examinees
Union (1986) & Ors. reported in [1994) 1 SCC 126.

4. Rani Laxmibai Kshetriya, Gramin Bank v. Chand Behari Kapoor
& Ors .. reported in [1998) 7 SCC 489.

C 5. State of A.P. & Anr. v. V. Sadanandam & Ors. reported in AIR
(1989) SC 2060.

6. Union Territory of Chandigarh v. Di/bagh Singh & Ors., reported
in [1993) 1 sec 154.

D Concluding his arguments, Mr. Viswanathan submitted that the
judgment of the Division Bench impugned in these appeals is liable to be
set aside and interfered with.

Mr. Vinoo Bhagat, learned counsel appearing for the respondents, in
E reply to the arguments of Mr. Viswanathan raised a preliminary objection
in regard to the maintainability of the present appeals. He said that this
Court had already dismissed an earlier special leave petition of the Bank
being Special Leave Petition (Civil) No. 2505 of 1992 by order dated
03.03.1992 against another judgment of the High Court directing the Bank
to appoint the respondent therein who was placed at serial No. 4 in the same
F Select List of Field Supervisors in which respondent No. 2 in the present
matters (Special Leave Petition No. 738 of 1995) is placed at serial No.
3 and that the Respondent No. 2 is at a higher position in the same select
list than the respondent in the earlier Special Leave Petition, he cannot be
denied appointment when the person below him has been appointed
G pursuant to the rejection of the earlier Special Leave Petition. He would
further submit that the writs issued by the High Court in two earlier writ
petitions, O.J.C. No. 1265of1991 (the one challenged in the special leave
petition mentioned above) and No. 6566of1991 (which was not challenged),
have been implemented and the writ petitioners, Surya Prasad Rath and
H Anjan Kumar Mallik, have been appointed in their respective posts and,
BAITARANI GRAMIYA BANK v. PALLAB KUMAR [LAKSHMANAN, l] 581

therefore, it is illegal and improper that the appellant-Bank should thereafter A
challenge the High Court's judgment in the remaining cases of the present
respondents and, therefore, the plea in the present special leave petitions/
appeals that the appellant-Bank had to produce the indents due to
subsequent events was negatived in the two judgments of the High Court
also and became final in respect of the same dispute and, therefore, these B
special leave petitions are liable to be dismissed,

Arguing further, learned counsel for the respondents submitted that
the appellant-Bank was bound to disclose the dismissal of its previous
special leave petitions in identical matter, as also the fact that it had
implemented the High Court's writs issued in other similar matters, but it C
has chosen to indulge in suppression instead and therefore, the present
matters are liable to be dismissed on account of such suppression, In regard
to the reasons for reducing the indent given by the Bank, learned counsel
submitted that the reasons stated in the special leave petitions, namely, the
financial constraints etc. find no place in the contemporaneous documentary D
records and, therefore, the said reasons have been invented subsequently
in an attempt to mislead this Court and, therefore, the special leave petitions
ought to be dismissed on this ground alone. According to Mr, Vinoo
Bhagat, learned counsel for the respondents, the Bank's financial constraints
were never cited as the reason before the litigation began and this reason E
has been dishonestly invented for the purposes of litigation and as correctly
noticed by the High Court, the appellant is financed entirely by outsid~
sources.

It is further argued that the appellant-Bank has not even appointed
the persons eligible under its pruned list and that two of the respondents, F
namely, Tridip Kumar Dass at serial No, 4 in the select list of Officers and
Alekha Prasad Behera at serial No. 3 in the select list of Field Supervisors
were entitled to appointment even ifthe indent stood reduced to 14 Officers
and 11 Field Supervisors and the fact that they have not been appointed
makes it clear that the appellant's case is entirely dishonest. He would G
further urge that since the appellant-Bank did not challenge that judgment
of the Full Bench of the High Court dated 14.09.1993 that judgment
attained finality and it is the abuse of the process of the Court to try and
fault with the judgment in the present matters.

The appellant-Bank filed rejoinder affidavit denying the allegations H
582 SUPREME COURT REPORTS (2003] SUPP. 3 S.C.R.
A made in the counter affidavit. The Chainnan of the Bank has also filed an
affidavit on 10.04.2002 pursuant to the order dated 12.01.1996 of this
Court. The said order Dated 12.01.1996 reads thus :

"Leave granted.

B Printing of appeals dispensed with. Appeals will be heard on
the SLP paper books with liberty to file additional papers, if any,
within ten weeks.

The petitioners will make appointmetns on the posts as
indicated in their last indent on the basis of the merit list sent by
c the BSRB (respondent No. 4). In respect of the additional persons
whose names have been recommended by respondent No. 4 for
appointment with the petitioners, it will be open to the respondent
No. 4 to proceed on the lines similar to the guidelines contained
in the letter dated 31.3 .1993, annexure 0 to the SLPs with regard
D to recruitment to the clerical cadre persons in regional rural banks."

It was submitted that pursuant to the above order, appointment orders
were issued to 9 Field Supervisors and 14 Officers and 2 Field Supervisors
had already been appointed pursuant to the judgment of the High Court
E dated 08.11.1991 and 18.11.1991 in 0.J.C. No. 1265 and O.J.C. No. 6506.
It was further stated therein that the appellant-Bank has also advised the
BSRB. Bhubaneswar to take care of the candidates as per direction dated
1:!.0l.1996 of this Court and as such the dossiers in respect of 11 Officers
and 19 Field Supervisors which were in excess of the Bank's last indent
were returned. It was also submitted in the affidavit that out of 30
F candidates, 23 appointment orders were issued by them, 5 Officers/Field
Supervisors have joined the appellant-Bank on 10.04.1996. It was further
submitted that at the relevant time, there is no vacancy in any cadre in the
appellant-Bank and as per the Government of India's revised guidelines,
the appellant-Bank is identified as having surplus man-power and that the
G accumulated loss of the bank as on 31.03.2001 was Rs. 39.69 crores and
the Bank is not in a position to absorb any more additional establishment
cost.

This affidavit was verified on I 0.04.2002 and signed by the Chainnan
of the Bank. On the above pleadings, the following questions oflaw would
H emerge for consideration :
BAITARAN! GRAMIYA BANK v. PALLAB KUMAR [LAKSHMANAN, J.] 5 83

(a) Whether the respondents/writ petitioners had acquired any A
idefeasible right to be appointed to the posts in question,
when the decision taken by the appellant-Bank not to fill up
all the vacancies is based on bona fide and appropriate
reasons;
B
(b) Whether the appellant-Bank is under any legal obligation or
legal duty to fill up any or all of the vacancies;

( c) Whether the appellant-Bank is entitled to revise their indents
submitted to the BSRB long before the publication of the
results by the BSRB in view of financial crisis as stated in C
the grounds of special leave petition and

( d) Whether the basis indicated by the appellant-Bank can be
characterized to be ma/a fide or unreasonable,
D
We have given our anxious consideration to the points urged by both
the learned counsel with reference to the pleadings, documents and
annexures,

The entire basis for the arguments advanced by counsel for the E
respondents appears to be the judgment of the High Court of Orissa at
Cuttack in O,J,C. No. 1265of1991 in the case of Surya Prasad Rath and
Another v. Baitarani Gramiya Bank dated 08.11.1991 and the subsequent
dismissal of the special leave petition by this Court on 03 .3 .1992. In this
context, the respondents has failed to notice that there were two other
judgments on the issue one of the which was subsequent in point of time F
which accepted the contention of the Bank and rejected the writ petition
filed by the selected candidates. The said judgments are Ashok Kumar
Sarangi v. Secretary, BSRB and Others, in OJ.C. No. 2902of1990 (page
Nos. 81-89 of the paper-book. Bipin Bihari Das and Others v. Baitarani
Gramiya Bank and Others in OJ.C. No. 1125 of 1991 dated 04.10.1991 G
(page Nos. 90-93 of the paper-Book).

The respondents, in our opinion, has failed to appreciate the fact that
in view of the conflicting judgments, the Division Bench of the High Court
'
of Orissa by its order dated 19 .04.1993 made a reference in this very matter H
584 SUPREME COURT REPORTS (2003] SUPP. 3 S.C.R.
A to the Full Bench of the Orissa High Court and the Full Bench of the High
Court by its judgment-dated 14.09.1993 answered the questions and
relegated the matter to the Division Bench for disposal in accordance with
the answers given. The Full Bench while answering the questions has
categorically held that a selected candidate does not acquire indefeasible
B right of appointment in holding so, the Full Bench has placed reliance on
a Constitution Bench judgment of this Court in Shankarasan Dass v. Union
of India reported in AIR (1991) SC 1612 equivalent to [1991] 3 SCC 47
and another judgment by a Bench of three-judges of this Court in Union
Territory of Chandigarh v. Dilbagh Singh reported in AIR (1993) SC 16
equivalent to (1993] I SCC 154. The only exception made by the Full
C Bench (about which the present appellant-Bank made a grievance in the
present appeals) is that the Full Bench has held that a selectee higher up
in the merit list will have a right to demand appointment if a person lower
than in the list has been appointed in any other Bank.

D The Full Bench overlooked the fact that the advertisement extract
(page 38-39 of the paper book) and the paper clipping clearly mentioned
the following :

(a) "Bank once opted for can not be changed later".
E
(b) In the notes under item one it was mentioned that "the above
vacancies are approximate and likely to vary upwards or
downwards depending on the need of the indenting banks."

(c) From the Full Advertisement, it is also clear in para in the
F left-hand column under the head 'Selection Procedure' that
the finally selected will be allotted to the regional rural bank
for which the candidates originally opted.

(d) Further in para IO(a), it says (right-hand column 1st line)
G "the choice will be restricted to one RRB only."

(e) Further in para I O(b) it says :

"IO(b) The candidates for posts of Officers and Field
H Supervisors (posts I and 2) should apply in separate
BAITARANI GRAMIYA BANK v. PALLAB KUMAR [LAKSHMANAN, J.] 585

applications along with requisite fee for the respective post. A
But for both the posts his choice will be restricted to a single
regional rural Bank."
.. All these clearly go to show that the assumption of the Full Bench
that a Common Merit List for all the Banks is prepared and that a selectee B
higher in merit list would be overlooked is incorrect. Further, the assumption
that the procedure/scheme visualises preparation of a select list as per
descending order of merit, would clothe a selectee higher up in the merit
list with a right to demand appointment if a person lower in the list has
been appointed in any other Bank, is also erroneous. No material or factual
foundation was laid in the writ petition and nothing has been found C
regarding this by the Full Bench. On the contrary, one of the writ petitions
annexed the Paper Publication of the final results and that showed that
results were declared qua each Bank.

Once the perrnise of the Full Bench is found to be erroneous, the D
judgment of the Full Bench and the impugned order deserve to be set aside.

It was argued by learned counsel for the respondents that the Bank
has stated the aspect of financial crisis/constraints for the first time in the
special leave petitions as the reasons mentioned by them in pruning down E
the indent. This statement is factually incorrect. The Division Bench, by
its common order, in O.J.C. Nos. 1866, 2981 and 5052 of 1991 while
referring to the counter affidavit filed by the Bank has clearly stated that
on account of various factors including liquidity crisis, ban order for
opening new branches and on account of financial burden incurred on
account of implementation of agricultural rural debt relief scheme and the F
award given by the National Industrial Tribunal, the Authorities had
decided not to fill up the posts though at the time of advertisement indent
had been given. Thus, it is seen that counter affidavit in all the writ
petitions, the appellant-Bank has raised the aspect of financial crisis. This
submission of the respondents is, therefore, liable to be rejected. In regard G
to the submission made by learned counsel for the respondents though the
appellant-Bank was bound to disclose the dismissal of its previous special
leave petitions in an identical matter, we are of the opinion that the same
need not be disclosed in the prese1tt special leave petitions since the
previous special leave petition was dismissed at the special leave petitions H
586 SUPREME COURT REPORTS [2003] SUPP. 3 S.C.R.
A stage (Annexure-Rl). This Court in a catena of decisions has held that the
dismissal of special leave petition by a non-speaking order which does not
contain the reasons for dismissal does not amount to acceptance of the
correctness of the decision sought to be appealed against. Such an order •
does not constitute the law laid down by the Supreme Court for the purpose
B of Article 14 I. In this context, we may refer to a recent decision of this
Court in Kunhayammed & Ors. v. State of Kera/a & Anr., reported in
(2000) 6 sec 359 (Three Judges).

In regard to the argument of learned counsel for the respondents that
the Full Bench judgment of the Orissa High Court was not challenged and,
C therefore, that judgment has attained finality, learned counsel for the
respondents is not correct in submitting so. The apellant-Bank could not
have challenged the Full Bench judgment because the Full Bench answered
the questions and relegated the matter to the Division Bench for disposal
and the cause of action for filing the present appeals arose only after the
D Division Bench of the High Court disposed of the matters.
In our view, the respondents/writ petitioners had not acquired any
indefeasible right to be appointed to the post in question when the Bank
has taken a decision not to fill up all the vacancies which is based on sound
bona fides and appropriate reasons. The Bank is also under no obligation
E or legal duty to fill up any or all of the vacancies and that the basis indicated
by the appellant-Bank for pruning the indents cannot at all be characterized
to be ma/a fide or unreasonable. The law is well-settled. This Court has
taken the same view in the following judgments.

F In State ofAndhra Pradesh and Anr. v. V. Sadanandam and Ors. Etc.
Etc. AIR (1989) SC 2060, this Court has observed as under :

"The mode of recruitment and the category from which the
recruitment to a service should be made are all matters which are
exclusively within the domain of the executive. It is not for
G judicial bodies to sit in judgment over the wisdom of the executive
in choosing the mode of recruitment or the categories from which
the recruitment should be made as they are matters of policy
decision falling exclusively within the purview of the executive.
The question of filling up of posts by persons belonging to other
H local categories or zones is a matter of administrative necessity
BAITARANI GRAMIYA BANK v. PALLAB KUMAR [LAKSHMANAN, J.] 587

and exigency. When the rules provide for such transfers being A
effected and when the transfers are not assailed on the ground of
arbitrariness or discrimination, the policy of transfer adopted by
the Government cannot be struck down."

This Court, in a judgment rendered by a Constitution Bench B
in Shankarsan Dash v. Union of India, [1991] 3 SCC 47, observed as
under :

"Even if a number of vacancies are notified for appointment and
adequate number of candidates are found fit, the successful
candidates do not acquire any indefeasible right to be appointed C
against the existing vacancies. Ordinarily the notification merely
amounts to an invitation to qualified candidates to apply for
recruitment and on their selection they do not acquire any right
to the post. Unless the relevant recruitment rules so indicate, the
State is under no legal duty to fill up all or any of the vacancies. D
However, it does not mean that the State has the licence of acting
in an arbitrary manner. The decision not to fill up the vacancies
has to be taken bona fide for appropriate reasons. And if the
vacancies of any of them are filled up, the State is bound to respect
the comparative merit of the candidates as reflected at the E
recruitment test, and no discrimination can be pennitted."

In Union Territory a/Chandigarh v. Dilbagh Singh and Ors., [1993]
1 SCC 154, this Court has observed as follows :

"A candidate who finds a place in the select list as a candidate F
selected for appointment to a civil post does not acquire an
indefeasible right to be appointed in such post in the absence of
any specific rule entitling him to such appointment. He could be
aggrieved by his non-appointment only when the Administration
does so either arbitrarily or for no bona fide reasons. Hence such
candidate, even if he has a legitimate expectation of being G
appointed due to his name finding a place in the select list of
candidates, cannot claim to have a right to be heard before such
select list is cancelled for bona fide and valid reasons and not
arbitrarily. In the instant case, when the Chandigarh Administration
accepted the complaints and cancelled the select list it cannot be H
588 SUPREME COURT REPORTS (2003] SUPP. 3 S.C.R.

A said to have acted either arbitrarily of without bona fide and valid
reasons."

In Babita Prasad and Ors. v. State of Bihar and Ors., [1993] Supp.
3 SCC 268, this Court held that a panel, as prepared in the said case, cannot
B be treated as conferring any vested or indefeasible right to the teachers to
be appointed. This Court further held as follows :

"The mere fact that the candidates who had been brought on the
panel had been sent for training at the Government expense,
would also not imply that any right had been created in their
C favour for appointment after they had completed their training
because training was intended to confer eligibility on the candidates
for being brought on the list."

In the case of the State of Haryana v. Subash Chander Marwaha &
D Ors., reported in (1974] 3 sec 220, this Court has observed as under:
"The existence of vacancies does not give a legal right to
candidate to be selected for appointment. The examination is for
the purpose of showing that a particular candidate is eligible for
consideration. The selection for appointment comes later. It is
E open then to the Government to decide how many appointments
shall be made. The mere fact that a candidate's name appears in
the list will not entitle him to a mandamus that he be appointed.
Indeed, if the State Government while making the selection for
appointment had departed from the ranking given in the list, there
F would have been a legitimate grievance on the ground that the
State Government had departed from the Rules in this respect.

In order that mandamus may issue to compel an authority to
do something it must be shown that the statute imposes a legal
duty on that authority and the aggrieved party has a legal right
G under the statute to enforce its performance

Since there was no legal duty on the State Government to
appoint all the 15 persons who are in the list and the petitioners
have no legal right under the rules to enforce its performance the
H petition was clearly misconceived."
BAITARAN! GRAMIYA BANK v. PALLAB KUMAR [LAKSHMANAN. J J 589

In the case of UP. Bhumi Sudhar Nigam Ltd. v. Shiv Narain Gupta, A
reported in [1994] Supp. 2 SCC 541, this Court has observed as under:

"....... We are of the view that the High Court fell into patent
error in issuing the mandamus in the facts and circumstances of
this case. This Court has authoritatively laid down that even if a B
vacancy is available and the employer bona fide declines to make
an appointment, the candidate on the select lilst has no right
whatsoever to claim appointment. In the present case, the post was
abolished by the Board of Director in the year 1991. Shiv Narain
Gupta in fact challenged before the High Court the action of the
Corporation in abolishing the post. Neither the facts of this case C
nor the law on the subject warranted any interference by the High
Court in the writ petition filed by Shiv Narain Gupta. The
Constitution Bench judgment in Shankarsan Dash case was cited
before the learned single Judge of the High Court. We are
constrained to say that th learned Judge failed to appreciate the D
binding ratio of the said judgment."

Our attention was drawn to Annexure-J issued by the Government of
India, Ministry of Finance, Department of Economic Affairs (Banking
Division) dated 31.03.1993 on the subject "Recruitment of Clerical Cadre E
Personnel in Regional Rural Banks". In the said communication, course of
action was advised to the Chairman of all Banking Services Recruitment
Boards to resolve the problem. We are concerned only with regard to the
course of action II which reads thus :

"As regards candidate who have already been selected for the
F
posts of Clerk of RRBs but have not yet absorbed/appointed, the
BSRBs concerned may follow the following Board guidelines :

a. BSRBs may invite indents from all the RRBs in a State in
order to make an assessment of their actual requirement. G

b. If the number of unabsorbed candidates is more than the
indents received from RRBs they may identify the candidates
who fulfil the requirements in respect ";age, qualilfication
etc. for posting in the public sector banks. H
590 SUPREME COURT REPORTS (2003] SUPP. 3 S.C.R.

A c. They may get an option from such candidates found eligible
as stated above, for their posting to the public sector banks.

d. Allegation of the candidates may be made to RRBs/Public
Sector Banks in order of merit list already drawn by the
B RSRBs and only those candidates who are coming in that
merit list and are eligible for public sector Banks will be
allocated to these Banks.

2. In addition to the above, BSRBs may also explore the possibility
of absorbing the remaining unabsorbed candidates in the RRBs
c in the adjoining States through RSRBs of these States, after
obtaining option from the unabsorbed candidates in this regard."

The respondents in the counter affidavit filed by them has stated that
the letter of 31.03.1993 has not been annexed to the special leave petitions.
D The statement is not correct. The other letter has been annexed as
Annexure-J and is at page 77 of the paper-book. The letter of31.03.1993
makes it very clear that the cause of action for the writ petitioners is against
the BSRB and not against the appellant-Bank.

E The Government of India Circular dated 31.3. I 993, which has been
extended to the present case by order dated 12.1.1996 of this Court, pre-
supposes that there can be revision of indent even before declaration of
results and even after declaration of results and alternative machanism has
been laid down, Neither the Regional Rural Banks Act, 1976 nor the
F Regional Rural Banks (Appointment and Promotion of Officers and other
Employees) Rules, 1988, restricts pruning and/or mandates that of salectee
should be appointed. No rule has been placed.

Learned counsel for the respondents did not dispute the legal position.
His contention was based on the letter of the BSRB dated 28.11.1988 and
G he stated that Mr. Surya Prasad Rath has been appointed whereas those
above him have not been appointed. The communication dated 28.11.1988
at page 130 has to be read with the reply of the Bank (at page 109 of the
paper book) where the Bank's query was about the merit list. Further one
thing that is clear that selection is qua Bank. No factual foundation was
H laid to show that within the Bank a lower selectee was preferred.
i
'
BAITARANI GRAMIYA BANK v. PALLAB KUMAR [LAKSHMANAN, J.] 591

We have already noticed though the advertisement was published in A
the newspapers and the examinations were held thereafter on 20.03.1988,
the Bank had communicated the revised indent by 23.08. 1988 well ahead
of the intimation of selection and publication ofresults. The Bank had bona
fide and genuine reasons for pruning down the indent If the Banks are
forced to accommodate Officers and Field Supervisors more than their B
required indent, it will have a crippling effect on the Bank and public
interest will stand seriously prejudiced as several employees will have to
be unnecessarily retained and public money will have to be expended on
them. When public interest competes with private interest, the private
interest will have to give way to public interest In this case, asking the C
appellent-Bank to accommodate as directed by the the BSRB would cause
loss to public revenue. It has been clearly stated in the counter affidavit
filed by the Bank before the High Court in the writ petition that on account
of various factors including liquidity crisis, ban order for opening new
branches and on account of financial burden incurred on account of
implementation of Agricultural Rural Debt Relief Scheme and the award D
given by the National Industrial, Tribunal, the Bank had decided not to fill
up the posts though at the time of advertisement indents had been given.
Thus, it is seen that the decision of the Bank not to fill up posts was due
to financial crisis. Therefore, no direction can be given to issue appointment
letters to the respondents/writ petitioners though they have come out E
successful in the selection process.

The aforesaid being the decision, we would hold that the respondents/
writ petitioners had not acquired any indefeasible right and the decision
not to fill up all the vacancies had been taken bona fide reasons and F
directions as sought for by the respondent cannot, therefore, be issued.

Today the position is that the appellant-Bank has filed an affidavit
setting out how it has implemented the order of this Court dated 12.1.1996.
As averred in para 4 therein, there is no vacancy in any cadre in the Bank.
In the Government of India revised guidelines the appellant-Bank has been G
identified as having surplus manpower. The accumulated loss today is in
the range of 39.65 crores.

Pursuant to the order of this Court, three of the r~~pondents have been
admittedly appointed. They are : H
592 SUPREME COURT REPORTS [2003] SUPP. 3 S.C.R.

A (a) Mr. Pallab Kumar Das (OJC No. 1866)

(b) Mr. Alekha Prasad Behera (OJC No. 2981)

(c) Mr. Tridip Kumar Das (OJC No. 5U52)

B Today 15 years have passed after the advertisement and seven years after
the order of this Court dated 12.1.1996. In view of the settled legal position,
the respondents do not have any indefeasible right.

However, with a view to do justice between the parties and balance
C the equities, we issue the following directions :

(a) If, however, the business of the Bank would require filling up of
more vacancies and if he respondents/writ petitioners turn would come as
per the merit list, we have no doubt that the concerned respondents/writ
petitioners would be absorbed in service as per rules.
D
(b) The appointment shall be made on the basis of merit/select list
if there are vacancies in any cadre.

(c) The select list would remain in force for two years from now.

E (d) The appellant-Bank, we hope, will consider the question of
relaxation of age bar in suitable cases so as to minimize their hardship.

We are unable to subscribe to the opinion expressed by the Full Bench
and the Division Bench of the Orissa High Court impugned in these appeals
F for the reasons stated in paragraphs supra.

The judgment dated 14.9.1993 of the Full Bench and of the judgment
dated 26.9.1994 of the Division Bench of the High Court hereby are set
aside and the appeals filed by the appellant-Bank stand allowed. However,
there will be no order as to costs.
G
v.s.s. Appeal allowed .