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Supreme Court of India

CHAIRMAN AND MANAGING DIRECTOR, PUNJAB NATIONAL BANKversusRAJENDRA NATH CHAWLA

Citation
1996 INSC 155
Decided
31 January 1996
Disposal
Appeal(s) allowed

Holding

The two‑year rural service requirement is a mandatory prerequisite, and the two‑year debarment period begins from the officer's refusal or cancellation, rendering him ineligible for promotion until the requirement is satisfied.

Summary

The appellant bank promoted the respondent officer to MMG Scale II on the condition that he serve two years in a rural branch, and barred any officer who refused such posting from promotion for two years. The respondent refused the rural posting in 1990, later cancelled a subsequent posting in 1992, and applied for promotion in 1993, only to be told he was still debarred. He challenged the debarment before the Delhi High Court, which held that the omission of the words "for no fault of theirs" meant the two‑year bar should lapse and he became eligible for promotion, invoking Article 14. On appeal, the Supreme Court examined the promotion policy, noting that the two‑year rural service requirement, though later treated as a post‑condition, remained a mandatory prerequisite, and that the bar of two years starts from the date of refusal or cancellation. Consequently, the respondent remained ineligible until he completed the required rural service, and the High Court's decision was set aside. The appeal was allowed and the writ petition dismissed.

Issues considered

  • Whether the two‑year rural/semi‑urban service requirement is a mandatory pre‑condition or a post‑condition for promotion to MMG Scale II.
  • Whether the two‑year debarment period commences from the date of refusal/cancellation and bars the officer from promotion irrespective of later eligibility.
  • Whether the High Court erred in interpreting the promotion policy and the applicability of Article 14.

Legislation cited

Subjects

promotionrural postingdebarmentbanking service regulationspre‑conditionpost‑conditionArticle 14equalitybank officers

Judgment

                                                                                      ,_ ..
A                CHAIRMAN AND MANAGING DIRECTOR,
                       PUNJAB NATIONAL BANK
                                 v.
                      RAJENDRA NATH CHAWLA

                                JANUARY 31, 1996
B
      [K. RAMASWAMY, B.L. HANSARIA AND S.B. MAJMUDAR, JJ.]

          Seivice Law-Promotio11-Ba11k-l'reco11ditio11 of two years mral/semi-
                                                                                        ....
  wba11 service-Circular permitti11g officers, who had 11ot completed rural
c bra11ch experie11ce, to be considered for promotio11 to MMG Scale
  /I-Promoted officers to be posted straightaway to mral bra11ches to complete
  te11ure of rural posti11g-Refusal of posting i11 rural bra11ches to debar officer
  for two years from the date he becomes eligible, after fulfilli11g promotio11
  criteria, includi11g necessary mral bra11ch se1vic~Whether officer should be
D co11sidered after two years from the date of refusal even if he has not completed
  two years i11 ntral branch se1vice-Held, mral/semi-urba11 service a mandatory
  requiremem, either as pre-co11ditio11 or post-conditio11-Wliere officer opted         -,'


  for promotio11, was considered, promoted a11d posted to mral service which
  he did not complete, the bar becomes operative two years from the date of
  cancellation. of ntral posting-Two ye01~ of niral bra11ch se1vice 11ecessary to
E make him eligible-Punjab Natio11al Ba11k Officw (Seivice) Regulations,
  Regu/atio11 17-Banking Companies (Acquisition a11d Tra11sfer of Undertak-
   ing) Act 1970, s.19 r/w s.12 (2}-<:011stitutio11 of /11dia, Article 14.

          In accordance with the instructions of government, the appellant·
F bank   decided  to permit officers who were otherwise eligible for considera·
  lion for promotion but could not complete the rural branch experience for
  no fault of theirs to be considered for promotion to Middle Management
  Grade Scale II (MMG Scale II), subject, i11ter alia, to the promoted officers
  being straightaway posted to rural branches for a requisite number of
  years and their completing their tenure of rural posting. Promoted officers
G refusing posting in rural branches were to be debarred from consideration
  for promotion for two years rrom the date they became eligible, after                 .(
  fullilling the promotion criteria, including necessary rural branch service.
  By Circular no. 1271 dated March 21, 1991, the eligibility criteria was
  reiterated and it was prescribed that an officer refusing promotion could
H be eligible for promotion after a gap of two years.
                                       1106
                               P.N. BANKv. R.N. CHAWLA                              1107

            In January 1990, the respondent did not accept rural branch posting.            A
      Again, in February-March 1992, he was given a rural posting which he
      joined, but he requested cancellation of his posting. On both occasions, he
      was informed of the bar that ·would operate. The respondent did not
      thereafter offer himself for posting in any rural branch to complete the
      requisite two years rural posting.
                                                                                            B
             When application for promotion to MMG Scale II posts were invited
      through circular dated March 30, 1993 to fill up vacancies as per eligibility
,..   criteria laid down in the 1991 circular, the respondent applied. lnadver·
      tently, he was permitted to appear in the written examination and inter-
      view. He was informed thereafter that he was debarred from consideration              C
      for promotion for two years from the date he became ineligible and till he
      fulfilled the promotion criteria including necessary rural branch ex-
      perience.

             Aggrieved, he filed a writ petition. The High Court allowed the
      petition holding, i.nter alia, that the 1991 circular having omitted the              D
      worlds 11for no fault of theirs" \\1hich \\'as in the 1989 circular, the relaxation
      of two years of service had been granted and therefore, from the initial
      date of the expiry of two years from the date of refusal he became eligible
      for consideration.
                                                                                            E
            It was contended for the appellant-bank that the two years bar made
      the officer ineligible for consideration for two years from the date of
      refusal. Thereafter, he was further required to have fulfilled the additional
      promotion criteria, i.e. two years experience of rural branch service. The
      respondent's counsel argued that the oflicer could be considered, and
      promoted, after two years from his first declining the promotion. It was              F
      also contended tliat persons similarly situated had been promoted while
      the respondent had been denied promotion.

            Allowing the appeal, this Court

            HELD : 1. The requirement of two years rural/semi-urban service
                                                                                            G
      was a mandatory pre-condition, and was later made a post-condition. If
      an officer \o\ithout completing two years, on his own volition, gets his
      posting to the MMG Scale II post cancelled and reverts to the lower scale
      and thereafter gets posted in an urlJan branch, the bar becomes operative
      and he becomes ineligible for promotion to MMG Scale II from the date                 H
    HOS                  SUPREME COURT REPORTS                   [1996] 1 S.C.R.

A   of cancellation. The facility of becoming fully qualified on completing two
    years rural/semi-rural branch service and securing seniority from the date
    his immediate junior had joined the MMG Scale 11 is inapplicable to an
    officer who had refused, on his won volition, to accept the promotion and
    opted for urban posting. [1117-A-E]

B         2. The additional affidavit filed by the appellant shows that the other
    officers who had been promoted had not accepted promotion and had thus
    remained in urban branches, but after promotion they opted for con-
    tinuance in rural/semi-urban service for a period of two years. [1117-F-G]


c 1996. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2545 of
          From the Judgment and Order dated 31.3.95 of the Delhi High Court
    in C.W.P. No. 5199 of 1993.

D        Y.R. Reddy, Additional Solicitor General, 0.C. Mathur, Ms. Meera
    Mathur for JBD. & Co. for the Appellants.

          K. Madhava Reddy and K.R. Nagaraja for the Respondent:

          The Judgment of the Court was delivered by :

E          K. RAMASWAMY. J. Leave granted.

           This appeal by special leave arises from the order of the Delhi High
    Court dated March 31, 1995 in Writ Petition No. 5199 of 1993. On Sep·
    tember 29, 1989, the appellant had issued a Circular letter No. 43/89 slating
    that in accordance with the instructions of the Government, the Bank had
F   decided to permit the officers, who were otherwise eligible for considera-
    tion for promotion but could not complete the rural branch experience for
    no fault of theirs, to be considered for promotion to Middle Management
    Grade Scale II [for short, 'M.M.G. Scale - II'] subject to the following
    conditions :
G           "(a) The promoted officers would be straight away posted to rural
            branches for requisite number of years and under no circumstances
            would be allowed to shift to other areas before completion of their
            tenure of rural posting. The concerned officers have already fur-
            nished the written undertaking to this effect at the time of inter-
H            view.
               P.N. BANKv. R.N. CHAWLA[K. RAMASWAMY.JI                         1109

            (b) The officers, who refuse posting in rural branches, as men-            A
            tioned in (a) above, shall be debarred for consideration for promo-
            tion for a period of two years from the date they become eligible,
            after fulfilling the promotion oite1ia, including necessmy 111ra/ branch
            service.

                                                                                       B
            (c) In case of any reason, the promo tee officer has to leave the
            rural branch prior to completion of the tenure, he shall be reverted
            to Junior Management Grade Scale !."

,          On January 9, 1990, the respondent was informed of the approval for
    his promotion to M.M.G. Scale - II and that he was allocated Punjab Zone           c
    subject to the conditions mentioned hereinbefore. He was also informed
    that in case he would refuse posting in rural branch, he shall be debarred
    for consideration for promotion for a period of 2 years from the date he
    becomes eligible after fulfilling the promotion criteria including necessary
    rural branch experience. The respondent, by his letter dated January 13,           D
    1990, did not accept rural branch posting in Punjab Zone upon promotion.
    By letter dated January 13-15, 1990, the respondent was informed of the
    bar in terms of the promotion policy and guidelines and that since he had
    refused to accept the promotion vide his letter dated January 13, 1990 for
    promotion to M.M.G. Scale - II in terms of the promotion policy, he was
    debarred for consideration for promotion for a period of 2 years from the          E
    date he became eligible after fulfilling the promotion criteria including
    necessary rural branch experience.

           On March 21, 1990, new promotion policy was circulated by the
    appellant in terms of the Government guidelines which provided, inter a/ia, F
    that for an officer in Junior Management Grade Scale I (for short J.M.G.
    Scale - I) to become eligible for consideration for promotion to M.M.G.
    Scale - II, he should have 7 years of satisfactory service including minimum
    of two years' service as an officer in rural branch. The Delhi Zonal Office
    by its circular dated September 16, 1991, invited applications for rural G
    posting in nearby region. The respondent had applied on October 15, 1991
    for rural branch posting in Meerut region, Kamal region and Rohtak
    region. The head office of the appellant by its letter dated. February 5, 1992
    informed its Delhi Zonal Officer that the request of the respondent for his
    posting in rural branch in Meerut has been acceded to and that on his
    appointment by promotion, he may immediately be relieved. After he had H
                                                                                     r
    1110                  SUPREME COURT REPORTS                   [1996] 1 S.C.R.

A joined, by letter dated March 3, J992 the respondent requested for cancel-
    lation of his posting for rural branch in Meerut region. Accordingly, the
    Delhi Zonal Office by letter dated May 4, 1992 informed him of cancella-
    tion of the posting in rural in branch in Meerut region at his request. He
    was further informed that he was bound by the consequences of his refusal
    to the posting in terms of rules to guidelines enforced by the Government
B   from tin1e to time.

          On October 15, 1992, Delhi Zonal Office in its circular No. 40 of
    1992 invited application for posting in rural branches in Delhi. The respon-         ...
    dent did not offer himself for posting in any rural branch to complete the
C   requisite two years' rm al posting which is a pre-condition for eligibility to
    be considered for promotion to M.M.G. Scale - II. When applications were
    invited for promotion to M.M.G. Scale - II posts through circular dated
    March 30, 1993 to fill up the vacancies as per the eligibility criteria laid
    down in circular No. 1271 dated March 21, 1991, the respondent had
D   applied for consideration of his claim and inadvertently he was permitted
    to appear in the written examination and intervie\v. Pursuant to his applica-
    tion in July, 1993, he was inforn1ed that he was not eligible to be considered
    for promotion in terms of the letter of debar issued to him. Consequently,
    the result of written examination and interview of the respondent were
    withheld. He was also informed by letter dated November 4, 1993 that he
E   was debarred for promotion for a period of two years from the .date he
    became ineligible for promotion until he fulfilled the promotion criteria
    including necessary rural branch experience which he did not fulfill for
    selection. Aggrieved thereby, he filed the above writ petition. The High
    Court has allowed the writ petition and quashed the aforesaid letter and
    directed the appellant to declare the result of the examination of the
F
    petitioner and that he was found qualified, to give promotion in either of
    the channels A and B, since the appellant was bound by terms of the
    promotion given as per 1991 policy read with circular of 1993.

           At this stage, it may be relevant to mention that promotion policy for
G officers has been framed by the Board of Directors of the appellant
    exercising its statutory power under Regulation 17 of Punjab National Bank
    Officers (Service) Regulations (for short, 'the Regulation') and Section 19
    read with Section 12(2) of the Banking Companies (Acquisition and Trans-
    fer of Undertaking) Act. 1970 (for short, 'the Act') in consultation with
H   Reserve Bank of India and with previous sanction of the Central Govern-
    \.

                    P.N. BANKv. R.N. CHAWLA[K. RAMASWAMY,J.]                    1111

         ment. According to the said policy, an officer for promotion from J.M.G. A
         Scale I to M.M.G. Scale - II, should have 7 years of satisfactory service and
         experience inclusive of 2 years' rural branch experience as a pre-condition
         to be eligible for consideration for promotion. The Board of Directors of
         the Bank (for short, 'the Board') pursuant to Government guidelines
         decided to relax the pre-condition of rural posting by making it post-con-
         dition, since the Bank was not able to provide rural posting to all officers
                                                                                       B
         due to which a· large number of officers could not fulfil the condition of
         rural posting for two years, although they had completed 7 years' service .
•        On December 2, 1987, the Board in its promotion policy in terms of
'        Government guidelines clarified that the policy would be effective from
         1988 selection onwards. It was also clarified that the condition of rural      c
         posting experience stipulating rural branch experience was to be operative
         from June 1, 1988 which was accordingly circulated to all the officers on
         February 22, 1988 which read thus :

                 "ELIGIBILITY
                                                                                        D
                 Officers pr_omoted as Officer-lncharge/Asstt. Manager before
                 20.8.80 shall rank for seniority higher than the Accountants and
                 Technical/Specialist Officers in JMG Scale-I in terms of Regula-
                 tion 18(5).
                                                                                        E
                 Officer-Incharge/Asstt. Manager and other officers in Scale I with
                 a minimum of 7 years of satisfactory service as officer shall be
                 eligible provided they have put in two years of service in a rural
                 branch.n

               In the circular No. 1164 dated August 3, 1989, the officers were         F   •
         informed that written test was to be held on September 17, 1989 with the
         stipulation that last date for receipt of application was 25th August, 1989.
         The eligibility criteria for selection was stipulated as under :

                 ~Officers-Incharge/Asstt.  Managers and other officers in JMG          G
                 Scale I with a minimum of 7 years of satisfactory service as on 31st
                 August. 1989 will be eligible for appearing in the written test.

                 In terms of Government guidelines, officers in JMG Scale I will
                 be eligible for promotion to Scale II provided they have put in 2
                 years of service in Rural branch. However, the ()fficcrs who are H
                                                                                               r
                                                                                              ,/



        1112                      SUPREME COURT REPORTS                   [1996] 1 S.C.R.

    A             otherwise eligible for promotion in terms of eligibility criteria but
                  could not complete the requisite rural/semi-urban experience for
                  no fault of theirs, may be considered for promotion subject to the
                  stipulation that such officers if approved would be immediately
                  posted in rural/semi-urban branches for requisite no. of years and
                  under no circumstances they will be allowed by the Bank to shift
    B
                  to other areas before they complete the tenure of rural semi-urban
                  posting. The individual officer shall fumish an undertaking to this
                  effect while applying for the written test. Please note that case letter/
                  roll no. will not be allotted unless the candidate fumishes zmcondi-
                  tional undenaking as per Profomza enclosed with the application
    c             from to be submitted for appeming in the w1itten test."

                The promotion also, therefore, became operative even from June 1)
        1988.

                On March 31, 1989, in terms of the guidelines of the Government of
    D India, the Board approved the eligibility criteria regarding rural/semi-
        urban branch experience in the promotion policy thus :

                  "The officers who are otherwise eligible for promotion in terms of
                  eligibility criteria but could not complete the requisite rural/semi
    E             urban experience for no fault of theirs, may be considered for
                  promotion subject to the stipulation that such officers, if approved,
                  would be immediately posted in rural/semi-urban branches for
                  requisite number of years and under no circumstances, they will
                  be allowed by the Bank to shift to other areas before they complete
                  the tenure of rural/semi urban posting. The individual officer shall
•   F             furnish an undertaking to this effect during selection process."

             On September 29, 1989 in the circular No. 43/89 applicability of the
        debar clause was considered. The circular read as under :

                  "The promotion _policy for officers staff contained in Personnel
    G
                  Division Circular No. 1081 dated 22nd February, 1988 rrovides
                  that:

                       11
                            An Officer who refuses posting on promotion or seek rever-
                        sion after accepting the promotion, will be debarred from
    H                   appearing in the next two successive selections to the next ·-
                        P.N. BANKv. R.N. CHAWLA[K. RAMASWAMY,J.]                      1113


...                      scale. In the case of an Officer who seeks reversion after A
                         accepting the promotion, the selections for the purpose of
                         treating him as having been debarred shall be reckoned from
                         the date succeeding the date of reversion."

                 The Government guidelines in respect of promotion of Officers
                 from JMG Scale - I to MMG Scale - II provide that an Officer in               B
                 JMG Scale - I having 7 years of satisfactory service shall be eligible
                 for consideration for promotion provided he has put in a minimum
  •              of two years service in a rural branch. As regards Specialist Officer,
                 he should take the requisite rural branch experience as and when
      '          he switches over to the mainstream of banking. In accordance with             c
                  the instructions of the Government for the above selection, as a
                  very special case, it has been permitted that the Officers who are
                  otherwise eligible for promotion but could not complete the req-
                  uisite rural branch experience for no fault of theirs may be con-
                  sidered for promotion to MMG Scale - II subject to the following             D
                  stipulations :

                  (a) The promoted Officer would be straight away posted to rural
                         branches for requisite number of years and under no cir-
                         cumstances would be allowed to shift to other areas before
                         completion of their tenure of rural posting. The concerned            E
                         Officers have already furnished the written undertaking to
                         this effect at the time of the interview.

                  (b) The Officers, who refuse posting in rural branches, as men-
                      tioned in (a) above, shall be debarred for consideration of
                      promotion for a period of 2 years from the date they become              F
                         eligible, after fulfilling the promotion crite1ia, including neces-
                         sa1y nlral branch seroice.

                  (c)    In case for any reason, the promotee Officer has to leave the
                         rural branch period to completion of the tenure, he shall be          G
                         reverted to JMG Scale - I."

                On August 16, 1989, Government of India, Ministry of Finance had
          granted formal relaxation to the appellant to the pre-condition of two
          years' rural branch experience as a post-condition subject to the stipula-
          tions as under :                                                                     H
                                                                                     (
    1114                SUPREME COURT REPORTS                     [1996] 1 S.C.R.

A          "Govt. is keen that guidelines with regard to rural/semi urban
           posting are implemented by the banks in right earnestness. As a
           matter of principle banks could not be given any relaxation unless
           they satisfy the Govt. that all possible steps have been taken to
           provide the requisite experience to the eligible officers and there
           has been no laxity on the part of the management in this regard.
B          However, in view of the circumstances explained by the bank, the
           Govt. in agreeable, as a very special case and for the last time, to
           your proposal that officers who have not acquired the requisite
           rural/semi urban experience but are otherwise eligible may also be
           considered for promotion subject to the following stipulations :
c
           (i) Such promoted officers would be straight away posted to
           rural/semi urban areas, as the case may be, for requisite number
           of years and under no circumstances would they be allowed to shift
           to other areas before completion of thei.r tenure of rural/semi
           urban posting.
D
           (ii) Officers who have refused posting in the rural/semi urban areas
           earlier, as a result of which they could not attain the requisite
           experience, would not be considered for promotion for a period
           of two years from the date they otherwise become eligible for
E          promotion.

           (iii) Bank would obtain a written undertaking from such officers
           t.o the effect that they will undergo rural/semi urban posting on
           their promotion and no exception will be allowed. In case for any
F          reason the promoted officer has to leave the rural/semi urban areas
           prior to the completion of the tenure, the bank would revert him
           to his earlier grade.

           (iv) The bank will draw up an action plan for posting officers at
           all India level in order of seniority to rural/semi urban areas against
G          the available slots. For this purpose necessary changes in the
           transfer policy of the bank to permit inter-zonal transfers will be
           effected immediately. The progress made under this action plan
           will be placed before the Board of Directors on quarterly basis
           and a copy of the action plan/quarterly reviewed shall be sent to
H          the Banking Division. 11
                   P.N. BANKv. R.N. CHAWLA[KRAMASWAMY.J.]                        1115

              In Circular No. 1271 dated March 21, 1991 dealing with the promo- A
        tion policy for officers, the eligibilitly criteria for promotion from JMG
        Scale - I to MMG Scale - II was reiterated thus : "7 years of satisfactory
        service in JMG Scale - I, provided the officers had put in a minimum of
        two years service as an Officer in a rural branch" and in para XIV dealing
        with "Consequences of absence in interview, non-approval and refusal to B
        accept promotion", it was stated as under :

                "(i) If an Officer is ultimately not selected for promotion in any
•               selection, he will be eligible to participate in the next selection. If
                an Officer is not selected for promotion in two successive selec-
                tions, he will be eligible for consideration after a gap of one year.     C
                Thereafter, there shall be a gap of two years for becoming eligible
                for consideration.

                (ii) An Officer who refuses promotion in higher grade will be
                eligible for consideration for promotion after a gap of two years.
                                                                                          D
                For the purpose of Sub-clause (i) and (ii) mentioned above, the
                period of one/two years shall be reckoned ftom the date of ap-
                proval of the panel by the Competent Authority and the ineligibility
                on account of debar of one or two years, as the case may be, shall
                extend further upto 30th September, in case the competent                 E
                authority has approved the panel in the first half of the financial
                year or 31st March in case the competent authority has approved
                the panel in the second half of the financial year.

                (iii) An Officer who seeks reversion after accepting the promotion
                will be eligible for consideration for promotion after a gap of two       F
                years. The period of two years in this case will be reckoned from
                the date of reversion to lower scale."

               It would thus be clear that though the requirement of fulfilling
        eligibility criteria, apart from 7 years' satisfactory service as JMG Scale - I
        to MMG Scale - II and two years of service in rural/semi-urban branch, is G
    ~   a pre-condition for promotion, relaxation was given only due to the fact
        that some of the officers did not have the opportunity to complete two
,       years' experience, though they had acquired 7 years' satisfactory qualifying
        service. Consequently, the policy was adopted to relax pre-condition by
        making it post promotional condition. After promotion to MMG Scale - II H
                                                                                   r
    1116                 SUPREME COURT REPORTS                  [1996] 1 S.C.R.

A   on completion of 2 years' experience in the rural service, the officer
    becomes fully qualified and his ranking in seniority would be above his
    immediate Junior in the JMG Scale - I. As a consequence of the change
    in policy, two systems, i.e., A and B lists were prepared and they were to
    continue only for the purpose of identifying the officers.

B
         The High Court Found that due to omission of the words "for no
  fault of theirs", the relaxation of 2 years' service had been granted and,
  therefore, from the initial date of the expiry of 2 years from the date of
  refusal, he had become eligible for consideration ; and the denial thereof
  violated his right under Article 14 and was invalid in law. It is contended
C by Shri Y.R. Reddy, the learned Additional Solicitor General, that the view
  expressed by the High Court is not correct. Once an officer refuses to
  accept promotion, the bar of 2 years starts from the date of refusal and he
  becomes ineligible for consideration. Thus from the date of refusal, for two
  years he cannot be considered at all for promotion. But thereafter when
D he is to be considered for promotion he is further required to have fulfilled
    the additional promotion criteria, namely, two years' experience of rural
  branch service. Till that happens he not be entitled to be considered for
  promotion. The High Court has assumed that after two years of first
  rejection of promotion he should be considered for promotion even though
  he might not have completed two years of experience of rural branch
E service. Though opportunity was given to the respondent and after promo-
  tion he had joined, he himself got it cancelled. Therefore, form the date of
  cancellation, he became ineligible, he was, by inadvertent mistake, per-
  mitted to appear in the examination and interview but once he did not
  complete two years from the date of his refusal as mentioned in the
F narration of the facts from the date of cancellation, after joining he did not
  become eligible until two years' period expired. Shri Madhava Reddy, the
  learned senior counsel contended that the bar of two years would be
  applicable on his first declining to accept the promotion. Thereafter, on
  his appearing for selection and on being found selected, he must get the
  promotion and if he declined to accept thereafter bar of two years would
G begin to run from that date_. That has happened in the first offer of October
  1991 and so in 1993, he became eligible. Though persons similarly situated
  had been promoted, the respondent was denied of the same and, there-
  fore, the High Court was right in its conclusion that the respondent is
  entitled to the benefit. We find no force in the contention of Shri Madhava
H Reddy.
                    P.N.BANKv. R.N.CHAWLA[K.RAMASWAMY.J.]                      1117

                It is seen that on his refusal to accept the promotion or on its A
         cancellation, he became ineligible for 2 years for consideration ; the reason
         being that 2 years' rural/semi-urban service was a pre-condition which,
         though later on made post-condition, remained to be a mandatory require-
         ment. It was open to an officer, before he appeared in examination and
-·       interview no to opt for promotion. On exercise of option he was con- B
         sidered, promoted and was posted to rural service ; the officer accepted
         the promotion and after he joined the M.M.G. Scale - lI post, he was
         required to complete at least two years, if not already completed, or the
         residue prior. If, without completing 2 years, on his own violation, he gets
     (   his posting cancelled and reverted to J.M.G. Scale-I and thereafter gels
         posted in an urban branch, the bar becomes operative and he becomes C
         ineligible for promotion to M.M.G. Scale - II for two ye.ars from the date
         of cancellation. Therefore, the question of putting him in A list or B list
         does not arise. That would arise only in a case where the officer, for no
         fault of him, was not given opportunity to serve in rural or semi-urban
         branch ; even though he became qualified -after putting in 7 years of D
         satisfactory service, he will then be put in B list and on his selection and
         promotion as M.M.G. Scale - 11, he will be posted to rural/semi-urban
         branch. On his completion of 2 years' service or the balance period, he
         would become fully qualified and secure seniority from the date his imme-
         diate junior in List A bad joined the post of M .M .G. Scale - II. That facility
         is inapplicable to an officer who had refused, on his own volition, to accept E
         the promotion and had opted for urban posting. Thus the High Court was
         wholly wrong in its conclusion that the appellant became qualified in 1993.
         The view of the High Court that the bar of 2 years is not applicable to him,
         is clearly incorrect.
                                                                                       F
               In the additional affidavit filed, the appellant has stated that no
         discrimination was shown to the respondent. All the officers are those who
         had not accepted promotion and had thus remained in urban branches but
         after promotion they opted for continuance in rural/semi-urban service for
         the period of 2 years.
,                                                                                     G
                The appeal is accordingly allowed. The order of the High Court is
         set aside. Consequently the writ petition stands dismissed. No costs.

         U.R.                                                      Appeal allowed.


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