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Supreme Court of India

J.N. GOEL AND ORS.versusUNION OF INDIA AND ORS.

Citation
1997 INSC 26
Decided
14 January 1997
Disposal
Dismissed

Holding

The restriction to graduate Assistant Engineers is constitutionally valid and the proviso allowing promotion of diploma‑holder engineers on the basis of "outstanding ability and record" is not arbitrary or vague, thus it stands.

Summary

The case concerned the promotion of Assistant Engineers in the Central Public Works Department to the post of Executive Engineer. Under the 1954 Recruitment Rules, only graduate Assistant Engineers were eligible, but a 1972 proviso allowed diploma‑holder engineers with "outstanding ability and record" to be promoted. The Central Administrative Tribunal struck down the proviso as arbitrary and ordered the Rules to be amended, prompting appeals by both graduate and diploma‑holder engineers. The Supreme Court held that the original restriction to graduates did not violate Articles 14 and 16 of the Constitution and that the proviso, which required a demonstrable record of outstanding ability, was neither vague nor arbitrary. The Court clarified that only the improper application of the proviso by the Departmental Promotion Committee could be challenged, not the proviso itself. Consequently, the Tribunal’s order was modified and the appeals were dismissed.

Issues considered

  • Whether Rule 21(3) of the 1954 Recruitment Rules, restricting promotion to Executive Engineer to graduate Assistant Engineers, violates Articles 14 and 16 of the Constitution.
  • Whether the 1972 proviso to Rule 21(3), permitting promotion of diploma‑holder Assistant Engineers on the basis of "outstanding ability and record", is arbitrary, vague or violative of Articles 14 and 16.
  • Whether the failure of the Departmental Promotion Committee to correctly apply the proviso renders the proviso invalid.
  • Effect of the 1996 Rules on promotions made under the 1954 Rules.

Legislation cited

Subjects

promotionservice lawCentral Public Works DepartmentArticles 14 and 16discriminationarbitrarinesseducational qualificationDepartmental Promotion CommitteeCentral Engineering Service Group A Recruitment Rules1996 Rules

Judgment

    ··~




                                   J.N. GOEL AND ORS.                                   A
                                              v.
                               UNION OF INDIA AND ORS.

                                      JANUARY 14, 1997

                       (S.C. AGRAWAL AND G.T. NANAVATI, JJ.]                            B

               Se111ice La~elltral E11gi11eeri11g Se111ice Group~· Recroitme~ Rules,
          1954: Rules 21(3)(a) a11d JJ.

.                Promotion-CP"WD-Assista11t .E11gi11eers to Executive E11· C
          gi11eers--Eligibility-l'ro111otio11 restricted to graduate Assista11t E11gineers
          only-Held : such restrictio11 11ot violative of Arts. 14 & 16-Constitution of
          /11dia, 1950, Arts,. 14 and 16.

                 Promotion-CPWD-Assistant Engineers to Executive En·
          gineers--Eligibility-Relaxation oHn case of employees with outstanding D
          ability and record-Prescribed by proviso to R. 21(3) of 1954 Rules-Held:
          neither vague nor arbitrary-Improper or i11c01rect implementation of laid
          down criterion would not render proviso arbitrary.            '

                Word!' and Phrases:
                                                                                        E
                "Outstanding ability and record''-Meaning oHn the context of proviso
          to Rule 21(3) of the Central Engineering Se111ice Group ~· Recroitment
          Rules, 1954.

                In the Central Public Works Department (C.P.W.D.) there existed a
          cadre of Assistant Engineers which consisted of graduates holding a           F
          degree In Engineering as well as holders of diploma in Engineering. The
          promotion to the post of Executive Engineers was governed by Rule 21(3)
          of the Central Engineering Service Group 'A' Recruitment Rules, 1954. In
          view of Rule 21 (3) (a) of the 1954 Rules only graduate Assistant Engineers
          were eligible for promot,on to the post of Executive Engineers ~ause the      G
          qual!fication prescribed was a degree in Engineering .under RUie 11 of the


-         1954 Rules.

                The respondents inserted a proviso to Rule 21(3) of the 1954 Rules
          whereby Diploma holder Assistant Engineers of "outstanding ability and
                                                        ...
          record" could be promoted to the post of Executive Engineers. The appel·
                                            237    <
                                                                                        H
    238                   SUPREME COURT REPORTS                   (1997) 1 S.C.R.

A }ants-graduate as well as Diploma holder Assistant Engineers challenged
 . the validity of the aforesaid proviso before the Central Administrative
   Tribnnal on the ground that Rule 21 (3) of the 1954 Rules contained an
   element of arbitrariness and discrimination and directed the respondents
   to further amend the 1954 Rules suitably and that until the 1954 Rules
B were so amended no regular promotion of Diploma holder Assistant
   Engineers should be made. Hence this appeal.

          On behalf or the appellants it was contended that Rule 21 (3) of the
    1954 Rules, in so far as It restricted that promotion to the post of Executive
    Engineers to graduate Assistant Engineers only, was violative of Articles
C   14 and 16 of the Constitution.

          Disposing of the appeal, this Court

           HELD : 1.1. In restricting promotion to the cadre of Executive
    Engineers in Central Public Works Department from amongst graduate
D   Assistant Engineers only, Rule 212(3) of the Central Engineering Service
    Group 'A'. Recruitment Rules, 1954 (prior to the amendment) ls not
    violative of Articles 14 and 16 of the Constitution. [245-E, 246-A)

         State of Jammu & Kashmir v. Triloki Nath Khosa & Ors., [1974) 1 SCR
E   771 and N. Abdul Basheer & Ors. v. KK Kanmakaran and Ors., [1989)
    Supp. 2 SCC 344, relied on.
                                                                                          1 ..

          1.2. The proviso to Rule 21 (3) of the 1954 Rules permits relaxation
   in the matter of educational qualifications for promotion of Assistant
   Engineers to the cadre of Executive Engineers and an Assistant Engineer           -y ·-
 F though not a graduate could be promoted provided he had 'outstanding
   ability and record'. The said criterion of 'outstanding ability and record'
   prescribed by the proviso cannot be regarded as vague or arbitrary. In
   service jurisprudence 'outstanding mOit' is a well-recognised concept for
   promotion to a selection post on the basis of merit. Such assessment of
   1mtstanding. merit is made by the Departmental Promotion Committee
 G (DPC) on the basis of the record of performance or the employee. The only
   reason given by the Central Administrative Tribunal for striking down the
   said proviso as invalid is that in the matter of promotions which have been       !-
   made on the post of Executive Engineer, the DPCs have not correctly
   applied the said criterion and have made selections by applying selection
.H norms· uniformly irrespective of their being diploma holder Assistant
    )


                            J.N.GOEL v. U.0.1.(AGARAWAL,J.]                         239

         Engineers. The failqre on the Part of the DPCs, in the past, to correctly apply   A
         the norms laid down in the proviso and to make au assessment about the
         eligibility pf the diploma holder Assistant Engineers on the basis of their
         'outstanding ability and record' for being promoted as Executive Engineers is
         violative of Articles 14 and 16 of the Constitution on the ground of arbitrari-
         ness. The failure to implement the said proviso properly could only mean that     B
         the promotion which was made without properly applying the criterion laid
         down in the proviso would be open to challenge. But it does not mean that the
         proviso itself Is bad as being arbitrary. (246-F-H, 247-A-C]

              T.R. Kothandaraman & Ors. v. Tamil Nadu Water Supply & Drainage
         Board & Ors., (1994] 6 SCC 282, relied on.                           C
              CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5363 of
         1990 Etc.

               From the Judgment and Order dated 30.4.90 of the Central Ad-
         ministrative Tribunal in New Delhi in O.A. No. 704 of 1988.                       D
               S.B. Wad, N.N. Goswamy, Ms. Shyamla Pappu, J.P. Gupta, P.O.
          Sharma, Sohan Lal, G.K. Aggarwal, P.P. Tripathi, Anis Ahmed Khan, Y.P.
          Mahajan, V.K. Verma, S.N. Terdol, M.R. Krishnamurthi, Pramod Sharma
        . and R.C. Kaushik for the appearing parties.
                                                                                           E
               The Judgment of the Court was delivered by

                S.C. AGRAWAL, J. : These appeals, by special leave, are directed
          against the judgment of the Central Administrative Tribunal, Principal
          Bench, New Delhi (hereinafter referred to as 'the Tribunal') in O.A. No.
        · 704 of 1988 and O.A. No. 910 of 1989. The appeals relate to promotion of         F
'         Assistant Engineers to the post of Executive Engineer in the Central Public
          Works Department (for short 'the C.P.W.D.'), of the Government of India.

                In the C.P.W.D. Assistant Engineers are appointed by direct recruit-
         ment as well as by promotion from the cadre of Junior Engineers. The
         cadre of Assistant Engineers consists of graduates holding a· degree in. G
         Engineering as well as holders of diploma in Engineering. Recruitment to
         the post of Executive Engineer was earlier governed by the Central En-
         gineering Service Group 'A' Recruitment Rules, 1954 (hereinafter referred
         to as 'the 1954 Rules'). Under the 1954 Rules appointment to the post of
         Executive Engineer was being made by promotion of Assistant Executive H
    240                   SUPREME COURT REPORTS                    [1997) 1 S.C.R.

A Engineers and Assistant Engineers. The promotion of Assistant Engineers
    as Executive Engineers was governed by Rule 21(3) of the 1954 Rules
    which provided as follows :

            "Rule 21(3). No Assistant Engineer shall be eligible for promotion
            to the service, unless he :
B
             (a) would, but for age, be qual: fied for admission to the competitive
             examination under Part-III of these rules.                               ""~


             (b) .has rendered at least three years service in a permanent or
             temporary capacity as an Assistant Engineer and subordinate
c            under the Central Government, and

             (c) satisfied the commission that he is in every respect suitable for
             appointment to the service."

D        In view of sub-clause (a) of Rule 21(3) only graduate Assistant
  Engineers were eligible for promotion to the post of Executive Engineer
  because the qualification prescribed for recruitment by Competitive Ex-
  amination under Rule 11 (falling in Part-III of the 1954 Rules) was "a
  degree in Engineering from a University incorporated by an Act of the
  Central or State Legislature in India, or any flti..:.. educational institution
E established by an Act of Parliament or declared to be deemed as Univer-
  sities under Section 3 of the University Grants Commission Act, 1956, or
  a foreign University approved by the Govern;'.;;.ent from time to time, or a
  qualification which has been recognised by the Government for the pur-
  poses of admission to the competitive examination". Executive instructions
F were, however, issued in 1956 for promotion of diploma holder Assistant.
  Engineers as Executive Engineers on ad hoc basis. This practice of promot-
  ing diploma holder Assistant Engineers on ad hoc basis continued for a
  considerable time. A Writ Petition (C.W.P. 818 of 1972) was filed by one
  C.P. Gupta, a degree holder Assistant Engineer, in the Delhi High Court
  wherein the action of the Government in promoting diploma holder Assis-
G tant Engineers on ad hoc basis was challenged. The said Writ Petition,
  which was subsequently transferred to the Tribunal and registered as T-52
  of 1985, was decided by the Tribunal, by judgment dated December 19,
  1986 whereby it was held that administrative instructions could not override
  the statutory provisions of the 1954 Rules and that promotions made on
H the basis of administrative instructions, being contrary to the statutory
              }


... •                              J.N. GOEL v. U.0.1. [AGARAWAL, J.]                   241
        ,,,       rules, were invalid. During the pendency of·the said petition, the following A
 I                proviso was inser_ted in sub~rule (3) of Rules 21 of the 1954 Rules by
                  Notification dated October 31, 1972 :

                          "Provided that Government in consultation with the Commission
                          may promote an Assistant Engineer of outstanding ability and        B
                          record, to Group A service in relaxation of the educational
        >-r               qualifications provided in clause (a)."


                         After the insertion of the said proviso promotions of diploma holder
                  Assistant Engineers were being made on the post of Executive Engineer       c
                  on ad  hoc basis under the said proviso. Feeling aggrieved by such promo-
                  tion the graduate Assistant Engineers filed an application (O.A. No. 704
                  of 1988) before the Tribunal wherein it was submitted that in view of the
                  proviso inserted in sub-rule (3) of Rule 21 of the 1954 Rules only those
                  diploma holder Assistant Engineers could be promoted to the post of D
     ~--t'
                  Executive Engineers who had 'outstanding ability and record' and that
                  diploma holder Assistant Engineers who did not possess 'outstanding
                  ability and record' were not eligible for promotion as Executive Engineer
                  either on regular or on ad hoc basis and that promotion if diploma holder
                  Assistant Engineers could not be made simply on the basis of seniorify-
                                                                                              E
                  cum-fitness by taking them at par with graduate Assistant Engineers.
                  Another application (O.A. No. 910 of 1989) was filed before the Tribunal
                  by the diploma holder Assistant Engineers who submitted that the proviso
                  to Rule 21(3) of the 1954 Rules, in so far as it prescribed the requirement
  ~-,

                  of 'outstanding ability and record' for the purpose of promotion of diploma
                  holder Assistant Engineers to the post of Executive Engineer, was dis- F
                  criminatory and violative of Articles 14 and 16 of the Constitution. On
                  behaU of the Union Government it was submiUed that the proviso inserted
                  in Rule 21(3) of the 1954 Rules is fair and just and cannot be termed as
                  discriminatory and that the assessment of 'outstanding ability and record'
                  of the diploma holder Assistant Engineers is done by the Department G
                  Proinotion Committee (for short 'DPC') which is chaired by a member of
        _,.       the Union Public Service Commission and that the assessment of merit is
                  based on the total record of service. Both these applications have been
                  disposed of by the Tribunal by the impugned judgment dated April 30,
                  1990.                                                                       H
    242                   SUPREME COURT REPORTS                  [1997)1 S.C.R.
                                                                                               "'
          After referring to the proviso introduced in Rule 21(3) of the 1954       ~
A
    Rules, the Tribunal has observed that the eligibility conferred thereby in
    relaxation of the educational qualification is conditioned by the higher
    quality of performance and a longer work experience, assessed as 'out-
    standing ability and record' and that this could be judged from the annual
B   confidential reports (ACRs). According to the Tribunal, ACR is a vehick
    for assessment of comparative and competitive merit of the officers equally
    placed for the purpose of promotion and that such an assessment cannot          "' ....
    quantify the compensatory element for the diploma holders Assistant
    Engineers which is required to place them at the same pedestal as graduate
c   Assistant Engineers who admittedly have higher mental equipment because
    the DPC that makes assessment for the purpose of promotion to the higher
    grade applies uniform norms for assessing the performance of the officers
    placed equally in the feeder grade. The Tribunal has also observed that
                                                                                               [
    according to Rule 21(3) the Department is required to screen the diploma
    holder Assistant Engineers based on their total record of service to identify
D
    those persons who have 'outstanding ability and record' and the diploma         'f-
    holder Assistant Engineers so identified should thereafter be placed at per
    with the graduate Assistant Engineers and assessed for promotion to the
    grade of Executive Engineer in accordance with the procedure prescribed
    by the DPC and this has never been followed. Sin~!'· h<:>th the assessments,
E   name!~ screening of diploma holder Assistant Engineers first for identify-
    ing those who have 'outstanding ability and record' in accordance with Rule
    21(3) and thereafter assessing them along with the graduate Assistant
    Engineers by the DPC in accordance with the procedure followed by it for
    such selection, are made on the basis of job performance, the work content        7-··
F   of which is the same, for the diploma holders as well as graduates, Rule
    21(3) contains an element of arbitrariness and discrimination. The Tribunal
    has taken note of the fact that for the last three decades diploma holder
    Assistant Engineers have been promoted on ad hoc basis along with the
    graduate Assistant Engineers based on the appraisal of their confidential
G   record and that in the last three DPCs held in 1965, 1968 and 1971, the
    select lists were prepared applying the selection norms uniformly to all the
    Assistant Engineers irrespective of their being diploma holders or degree
    holders by treating them (graduates and non-graduates) as one category           -.,,...
     and the selection was made without first determining the eligibility of
H    diploma holder Assistant Engineers for the next promotion. According to
         J
                               J.N. GOEL v. U.0.1. [AGARAWAL,J.]                    243

             the Tribunal, the procedure so far has not been in conformity with Rule A
             21(3). The Tribunal has, therefore, held that the proviso inserted in Rule
I            21(3) is arbitrary and discriminatory and it requires to be substituted by a
             rational and just criterion, e.g., holding of a qualifying test for diploma
             holder Assistant Engineers, annually or as may be necessary, to obviate the
             element of arbitrariness and make the rule reasonable and those who B
             qualify in such a departmental test, they should be considered along with
             graduate Assistant Engineers for promotion to the next higher grade by
             the DPC by following the normal procedure. The Tribunal has directed the
             Government to further amend the 1954 Rules suitably and has also directed
             that until the Rules are so amended, no regular promotion of diploma
             holder Assistant Engineers shall be made and that ad hoc promotions C
             already made shalJ be regularised in accordance with the amended Rules.

                   Both the sides, namely, the graduate Assistant Engineers as well as
             diploma holder Assistant Engineers, have felt aggrieved by the judgm~nt
             of the Tribnnal. The graduate Assistant Engineers have filed Civil Appeal D
             No. 5363 of 1990, while the diploma holder Assistant Engineers have filed·
             Civil Appeal No. 5364 of 1990.

                   During the pendency of these appeals, the Government of India has
             made the Ministry of ·Urban Affairs and Employment (Department of
             Urban Development), Central Engineering (Civil Group 'A' Service, Rules,       E
             1996 and the Ministry of Urban Affairs and Employment (Department of
             Urban DeVf;lopment) Central Engineering (Electrical and Mechanical)
             Group 'A' Service Rules, 1996 (hereinafter referred to as 'the 1996 Rules').
             The 1996 Rules have been published in the Gazette of India dated October
             29, 1996 vide notifications dated October 28, 1996. The 1996 Rules have        F
     )
             superseded the 1954 Rules and prescribe a quota system for promotion to
             the post of Executive Engineers from. three sources :

                     (i) Assistant Executive Engineer with four years regular service in
                     the grade. 33/1/3%
                                                                                            G
                     (ii) Degree holder Assistant Engineers with eight years regular

    -.               service in the grade. 33/1/3%.

                    . (iii) Diploma holder Assistant Engineers with ten years regular
                      service in the grade. 33/1/3%                                   H
     244                  SUPREME COURT REPORTS                  [1997] 1 S.C.R.

A          The 1996 Rules have come into force with effect from October 29,         ,,.....
     1996. Since the 1996 Rules are prospective in operation, the promotions
     made prior to the making of the 1996 Rules would be governed by the 1954
     Rules and, therefore, the question regarding the validity of the proviso to
     Rule 21(3) of the 1954 Rules has to be considered.

B
         ·Before we come to the question regarding the validity of the proviso
   to Rule 21(3), we would deal with the submission of Shri G.K. Aggarwal,
   the learned counsel appearing for the appellants in Civil Appeal No .. 5364
  ·of: 1990 filed by the diploma holder Assistant Engineers, assailing the
   validity-of Rule 21(3}. Shri Aggarwal has submitted that Rule:21(3)· of the
C 1954 Rules, in so far as it restricts eligibility for promotion to the cadre of
   Executive Engineer to graduate Assistant Engineers only, is violative of
  Articles 14 and 16 of the Constitution. The submission is that promotion
   to the cadre of Assistant Engineers is made from amongst Junior Engineers
   who are degree holders as well as diploma holders on the basis of a limited
D departmental examination and that diploma holder Junior Engineers who
  become Assistant Engineers after such selection discharge the same duties
   and responsibilities as graduate Assistant Engineers and that there is no
  basis for denying diploma holder Assistant Engineers promotion to the
   higher grade of Executive Engineers. Shri Aggarwal has also urged that
   since 1956 diploma holder Assistant Engineers were being promoted as
E Executive Engineers and there is nothing to show that their performance
   as Executive Engineers was found wanting.

         We ate unable to accept this contention of Shri Aggarwal. The
  decisions of this Court have laid down that educational qualifications can
F justifiably be made the basis for classification for the purpose of promotion
  to the higher post. In State of Jammu & Kashmir v. Triloki Nath Khosa &
  Ors., (1974] 1 SCR 771, there was a similar provision in .the Jammu &
  Kashmir Engineering (Gazetted Service) Recruitment Rules, 1970,
  whereunder only graduate Assistant Engineers were eligible for promotion
  to the post of Assistant Executive Engineers. The validity of the said rule
G was challenged by diploma holder Assistant Engineers on the ground of
  violation of Articles 14 and 16 of the Constitution and the provision was
  struck down by Jammu & Kashmir High Court, but, on appeal, the rule
  was upheld was valid by this Court. It was held :

fl           "Formal education may not always produce excellence but a clas-
                           . J.N. GOEL v. U.0.1. (AGARAWAL,J.]                    245

                    sification founded on variant educational qualifications is, for A
                    purposes of promotion to the post of an Executive Engineer, to
                    say the least, not unjust on the face of it".

                                                                             (p. 780)

                   In that case also an argument was advanced that diploma holders       "13
             could comfortably fill higher posts for over three decades and no reason
    ..-'r    was shown why they shall be rendered wholly ineligible even for being
             considered for promotion to the post of Executive EngineeL The Court
            'has, however :
                                                                                         c
                    "Efficiency which comes in the trail of a higher mental equipment
                    can reasonable be attempted to be achieved by restricting promo-
                    tional opportunities to those possessing higher educational
                    qualifications,"

                                                                              (p. 784)   D

                   In restricting promotion to the cadre of Executive Engineer from
            amongst Graduate Assistant Engineers only Rule 21(3) of the 1954 Rules,
            as it stood prior to the amendment of 1972, was not different from the rule
            which has been upheld as valid by this Court in State of Jammu & Kashmir ·E
            v. Tri/old Nath Khosa & Ors., (supra). The insertion of the proviso in Rule
            21(3) in 1972 removes the bar against eligibility of diploma holder Assistant
            Engineers being promoted as Executive Engineers and permits relaxation
            in educational qualification in respect of non-graduate Assistant Engineers
            of outstanding ability and record. Keeping in view the paramount require- F
            ment of efficiency in the higher echelons of the service, the proviso seeks
            to strike a balance between the aspirations in· the matter of promotion of
            Assistant Engineers having higher educational qualifications and Assistant
            Engineers, though lesser qualified educationally, having outstanding ability
            and record.
                                                                                         G
                  Shri Aggarwal has placed strong reliance on the decision of this
            Court in N. Abdul Bas/teer and Ors. v. KK Karnnakaran and Ors., [1989)
r           Supp. 2 SCC 344, which related to promotion from the post of Excise
            Preventive Officer to that of Second Grade Excise Inspectors. In that case
            the provision fixing a quota for promotion between graduates and non-        H
    246                   SUPREME COURT REPORTS               . [1997) 1 S.C.R.

A graduates was held to be violative of Articles 14 and 16 of the Constitution
  on the view that the conditions of employment and the incidents of service
  recognise no distinction between graduate and non-graduate officers and
  that for all material purposes they are effectively treated as equivalent. The
  decision in State of Jammu & Kashmir v. T1iloki Nath Khosa & Ors., (supra)
B was noticed and it was observed that in that case having regard to the
  object of achieving the administrative efficiency in the Engineering Service
  it was a just qualification to maintain a distinction between Assistant
  Engineers who were degree holders and those who were merely diploma
  holders. The decision in N. Abdul Basheer & Ors. v. K.K. Karnnakaran &            1,
                                                                                        .
                                                                                    J
  Ors., (supra) does not, therefore, lend support to the submission of Shri
C Aggarwal that Rule 21(3) of the 1954 Rules was invalid. Reference in this
  context may be made to the recent decision in T.R. Kothandaraman & Ors.
  v. Tamil Nadu Water Supply & Drainage Board & Ors., [1994] 6 SCC 282,
  wherein this Court has upheld that validity of the proviso to Regulation
  19(2)(b) of the Tamil Nadu Supply and Drainage Board Service Regula-
D lions, 1972, which permitted diploma holder Assistant Engineers to be
  eligible for promotion to the post of Executive Engineer only if they were       4\
  to have "exceptional merit" in work, otherwise such diploma holders were
  not eligible for promotion. The challenge to the said provision on the basis
  of Article 16 of the Constitution was negativated on the basis of the
  judgment in Triloki Nath Khosa & Ors. (supra).
E
        We may now come to the proviso to Rule 21(3) which was inserted
  in 1972. As noticed earlier, the proviso permits relaxation in the matter of
  educational qualifications for promotion of Assistant Engineers to the
  cadre of Executive Engineers and an Assistant Engineer though not a
F graduate could be promoted provided he had 'outstanding ability and              r-
  record'. The said criterion of 'outstanding ability and record' prescribed by
  the proviso cannot be regarded as vague or arbitrary. In service
  jurisprudence 'outstanding merit' is a well recognised concept for promo-
  tion to selection post on the basis of merit. Such assessment of outstanding
  merit is made by the DPC on the basis of the record of performance of
G the employees. It cannot, therefore, be said that the proviso to Rule 21(3)
  which enabled a diploma holder Assistant Engineer to be promoted as
  Executive Engineer if he had 'outstanding ability and record' suffers from
  the vice of arbitrariness. The only reason given by the Tribunal for striking
  down the said proviso as invalid is that in the matter of promotions which
H have been made on the post of Executive Engineer, the DPCs have not
-                         J.N. GOEL v. U.O.I. [AGARAWAL, J.]                  247

          correctly applied the said criterion and have made selection by applyjng A
          selection norms uniformly irrespective of their being diploma holder As-
          sistant Engineers or degree holder Assistant Engineers. The failure on the
          part of the DPCs, in the past, to correctly apply the norms laid down in
          the proviso and to make an assessment about the eligibility of the diploma
          holder Assistant Engineers on the basis of their 'outstanding ability and B
          record' would not mean that. the proviso which enables diploma holder ·
        . Assistant Engineers having 'outstanding ability and record' being promoted
          as Executive Engineer is violative of Articles 14 and 16 of the Constitution
          on. the ground of arbitrariness. The failure to implement the said proyiso
          properly could only mean that the promotion which was made without
          properly applying the criterion laid down in the proviso would be open to · C
        . challenge. But it. does not mean that the proviso itself is bad as being
          arbitrary. We are, therefore, unable to hold that the proviso to Rule 21(3)
          of the 1954 Rules was violative of Article 14 and 16 of the Constitution.
          This would mean that the promotions Jrom the cadre .of Assistant En-
          gineers (graduates as well as diploma holder) to the cadre of Executive D
          E~gineers prior tu the coming into force of 1996 Rules would be governed·
          by Rule 21(3) of the 1954 rules, as amended in 1972 to include the proviso.

                In O.A. No. 704 of 1988 which filed by the graduate Assistant
    I    Engineers, the relief sought was confined to future promotions of diploma
    I
         holder Assistant Engineers to the cadre of Executive Engineers on regular E
         as well as ad hoc basis. The scope of Civil Appeal No. 5263 of 1990 filed
         by the graduate Assistant Engineers is, therefore, confined to promotions
         made to the cadre of Executive Engineers from amongst diploma holder
         Assistant Engineers after the date of filing of O.A. No. 704 of 1988 in the
         Tribunal. It has been pointed out that subsequent to the filing of O.A. No. p
         704 of 1988 before the Tribunal some orders were passed in 1994 whereby
         regular appointments have been made to the Cadre of Executive Engineers
         from amongst Assistant Engineers decree holders as well as diploma
         holders. It has also been stated that most of the diploma holder Assistant
         Engineers who were regularly appointed as Executive Engineers under
         these orders have already retired from service. ·The grievance of the G
         graduate assistant Engineers is mainly confined to diploma holder Assis-
         tant Engineers who have been working as Executive Engineers on ad hoc
         basis. Since the 1954 Rules were in operation prior to the promulgation of
         the 1996 Rules, regular promotion on the post of Executive Engineers
         against vacancies which occurred prior to the promulgation of the 1996 H
                                                                                 (


    248                  SUPREME COURT REPORTS                 (1997) 1 S.C.R.

A Rules will be governed by the 1954 Rules. If any of the appellants in Civil·
    Appeal No. 5363 of 1990 feels aggrieved by the regular promotion of any
    of the Diploma holder Assistant Engineers to the cadre of Executive
    Engineer after the filing of 0.A. No. 704 of 1988 and prior to the coming
    into force of the 1996 Rule, he may agitate the said grievance in the
B   competent forum. The promotion of diploma holder Assistant Engineers
    who have been promoted on the post of Executive Engineer on ad hoc
    basis, will have to be reviewed by the authorities and regular promotions
    against vacancies which occurred to the promulgation of the 1996 Rules
    will have to be made in accordance with the 1954 Rules. Regularisation of
    diploma holder Assistant Engineers who are working as Executive En-
C   gineers on ad hoc basis against vacancies which occurred after the promul-
    gation of the 1996 Rules will have to be made in accordance with the
    provisions of the 1996 Rules.

          The appeals are disposed of accordingly and the impugned judgment
    of the Tribunal will stand modified in these terms. No order as to costs.
D
    v.s.s.                                                  Appeal disposed.



                                                                                     r


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For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.