Holding

The Court held that there is no reservation for Scheduled Castes and Scheduled Tribes in promotions within Class‑I posts; only the concession under the Office Memorandum dated 26 March 1970 applies.

Summary

The National Federation of State Bank of India and other SC/ST employees filed writ petitions seeking reservation in promotions to Class‑I posts in public sector banks, the application of the 40‑point roster and the carry‑forward of unfilled vacancies since 1978. The Government had issued several Office Memoranda, the latest dated 26 March 1970, which provided a concession for SC/ST officers but did not prescribe reservation. The Court examined whether reservation under Article 16(4) applied to promotions by selection to Class‑I, whether the 40‑point roster could be used without a reservation rule, and whether the concession amounted to reservation. It held that no specific order or rule mandates reservation in Class‑I promotions; the concession is a permissible measure under Article 16, not a reservation, and therefore the roster and carry‑forward provisions cannot be applied. Consequently, the petitions seeking reservation and related reliefs were dismissed, with the direction that only the concession under the 1970 Memorandum be implemented for future promotions.

Issues considered

Does reservation under Article 16(4) of the Constitution apply to promotions by selection to Class‑I posts in public sector banks?
Can the 40‑point roster be applied in the absence of a specific reservation rule for Class‑I promotions?
Is the concession provided to SC/ST officers in the 1970 Office Memorandum a reservation or a permissible concession?
Can the backlog of unfilled vacancies since 1978 be filled by applying a carry‑forward rule?
Are SC/ST officers entitled to a one‑grade higher promotion under the concession?

Legislation cited

Constitution of Indias. Article 16(4)

Subjects

reservationpromotionSC/STpublic sector banksconcessionArticle 1640-point rosterClass Iservice law

Judgment

A NATIONAL FEDERATION OF S.B.I. AND ORS. ETC.
v.
UNION OF INDIA AND ORS.

MARCH 10, 1995

B [R.M. SAHAI, B.P. JEEVAN REDDY AND SUHAS C. SEN, JJ.]

Service Law: Promotion-Reservation for SC/ST-Whether there could
be reservation in favour of SC/ST in promotion by selection to Class-I posts
when there is no specific order, rule or Memorandum-Whether Forty Point
C Roster be applied to carry out the rule of reservation in the absence of such
rule or reservation-Held there is no reservation in favour of SC/ST but they
are entitled to concessions contained in the Office Memorandum.

The Ministry of Home Affairs provided reservation at 12% and 5%
of the vacancies for Schedule Caste/Schedule Tribe candidates in Class-III
D & W posts filled by promotion to grades or service. This policy was revised
providing promotion by selection from Class-II to the lower range or
category in Class· I. The procedure prescribed was that in the case of
eligible Schedule Caste/Schedule Tribe Candidates, the grading given to
them shall be upgraded by one stage. This concession was confirmed to
E only 25% of the total vacancies in particular grade or post filled in a year,
and the ST/SC employees who are senior enough in the zone of considera-
tion as to be within the number of vacancies, and who are not considered
unfit for promotion should also be given one grading higher than assig·
nable to them on the basis of.their record of service and their place in the
select list determined on the basis of this higher categorization.
,F (
The said orders were supplemented by providing certain concessions
and/facilities to S.CJS.T. Officers who are senior enough in the zone of
consideration for promotion. Facilities provided included special training,
advice and guidance. The said order was to take effect from the date of
issue of the Memorandum. These concessions wouJd be available to the
.G SC/ST officers in Public Sector/Financial Institutions in promotions by
selection to posts within the offi~ers cadre up to scale-ID. I

-'-r
The Association of Schedule Caste/Schedule Tribes employees work·
ing in several Public Sector Banks filed writ petitions before the Supreme
H .Court foNmplementation of reservation policy by maintaining the roster
748
FEDERATION OFS.B.I. v. U.0.1. 749

system and also for a direction to fill up the back log of unfilled vacancies A
since 1978 by applying the carry forward rule in all grades and scales with
consequential benefits. The transfer petition and Contempt Petition also
relate to the same issue.

Disposing of the petitions, this Court
B
HELD : 1. In promotions by selection to posts within Class-I the
SC/ST Officers who, are senior enough in the zone of consideration for
--r promotion as to be within the number of vacancies for which the select list
r has to be drawn would be included in the list provided they are not
considered unfit for promotion. It only provides for a concession which the
State can always provide under Article 16 as explained in Indira Sawhaney's
c
--( case. The concession is evidently designed and intended to help the SC/ST
Officers obtain promotions which they may not otherwise get.
(759-E, 762-C]
Indira Sawhey v. Union of India, (1992) Suppl. 3 SCC 217, referred
to.
D

2. So far as promotions within Class-I are concerned with which alone
~
the Memorandam dated March 26, 1970 deals with, there are no orders of
the Government of India applying the rule of reservation. Those earlier
Memoranda provided for reservation in Class-II, III and IV but not for E
promotion to Class-I and not at any rate to promotion within Class-I. Nor
does the Memorandam dated March 26, 1970 provide for such reservation.
The idea is self-evident. While the nile of reservation is made applicable to
the lower categories, Viz; Classes-II, Ill and IV (to the extent specified in
the said Memoranda), no such reservation was thought advisabie in the
- I matter of promotions within Class-I. Instead of reservation, a concession F
was provided. It is thus clear that the letters of the Ministry of Finance
dated May, 30, 1981 and the subsequent one do not amend or modify the
Office Memorandum dated March 26, 1970 but merely explain it. They
make it explicit what is implict in it. (764-G-H; 765-A-B]

3. By virtue of the said Rule providing for concession, the members G
'\) of the Scheduled Castes/Schedule Tribes may stand to gain in some cases,
in the sense that they may get more number of promotions than they would
have been entitled to had the rule of reservation been applied to promo-
tions within Class-I, while in some other cases they may stand to lose. But
that cannot be a factor determining the interpretation of the relevant H
T

750 SUPREME COURT REPORTS [1995] 2 S.C.R.

A orders. (771-H, 772-A]

Bihar State Harijan Kalyan Parishad v. Union of India, (1985) 2 SCC
644 and Syndicate Bank Scheduled Castes and Schedule Tribes Employees
Association v. Union of India and Ors., (1990) Suppl. SCC 350, differed
from.
B
All India Bank of Baroda, Scheduled Castes and Scheduled Tribes
Employees Association v. Union of India and Ors., (W.P. No. 1594/1987
decided on 18.8.1988 by Supreme Court), referred to.

C , 4. There is no specific order rule or·Memorandum applying the rule
()ti.reservation in favour of Scheduled Caste and Scheduled Tribes in the
matter of promotions within Class-I service. In the absence of such reser- .
vation, the forty pc)int roster prepared by the Government of India cannot
be applied or followed, for the simple reason that the roster is prepared
D merely in implementation of and to carry out the rule of reservation. There
can be no roster in ·the absence of rule of reservation. If the rule of
reservation is not made applicable to a particular appointment or promo-
tion, there can be no question of following the forty-point roster. The
forty-point roster itself does not provide reservation. It inerely specifies
places of reserved categories in accordance with and consistent with the
E rules of reservation already made. (772-D-E]

S. In the matter of promotion by selection to posts within Class-I
which carry an ultimate salary of Rs. 2250 per month or less in the
revised scale of pay, there is no reservation in favour of Scheduled Castes
F and Scheduled 1iibes but they are entitled to the concession contained in · \-
Para 2 of the Office Memorandum dated March, 26, 1970 issued by the
Ministry of Home Affairs. The concession is that those Scheduled Cas-
tes/Scheduled Tribes Officers who are senior enough in the zone of con-
sideration for promotion so as to be within the number of vacancies for
which the select list has to .be drawn, will be included in the select list
G provided they are not considered unfit for promotion. The position of such
candidates included in the select, list would not be entitled, for the purpose
of the said selection, one grading higher than the grading otherwise
assignabltto them on the basis of their record of service. This is also the
purport of para 9 of the Brochure is so far as it deals with yromotions
if within Class-I. [772-F-H, 773-A] · .
FEDERATION OF S.B.I. v. U.0.1. [B.P. JEEVAN REDDY, J.] 751

6. In any event the concession can be applied and followed only when · A
selection takes place. In the absence of a rule to that effect, the said
concession cannot be given effect to retrospectively. The special provision
made in in the matter of promotions within Class-I is not in the nature of
reservation but a concession. The respondents shall apply, implement and
follow the concession contained in Para 2 of the Office Memorandum dated B
March 26, 1970 in the matter of promotions in Class-I to be made
hereafter. Of course, so far as promotions to Classes-II, III and IV and
promotions from Class-II to the lowest rung or category in Class-I are
1 concerned, the orders in Office Memorandum dated July, 1968 shall be
r followed. (770-D-F]
c
CIVIL ORIGINAL JURISDICTION : Writ Petition (C) No. 896 of
-( 1990 etc. etc.

(Under Article 32 of the Constitution of India.)

Altaf Ahmed, Additional Solicitor General, Rajendra Sachhar, S.P. D
Goyal, N.N. Goswami and H.S. Gururaja Rao, Ms. Indu Malhotra, Ms.
Jaishree Suryanarayan, R.N. Kovind, Ms. Aruna Banerjee, Sanjay Kapur,
_..,. M.K. Michael, Ms. Arnita Gupta, R.B. Misra, P. Parmeswaran, Rajiv Kapur
and K.R. Nagaraja for the appearing parties.

The Judgment of the Court was delivered by E

B.P. JEEVAN REDDY, J. The precise nature and character of the
concession provided to Scheduled Castes and Scheduled Tribes in the
matter of promotions within Class-I in the service of the public sector
banks falls for consideration in this batch of writ petitions. The writ F
- I petitions are filed by Associations of Scheduled Castes and Scheduled
Tribes' employees working in several public sector banks. The reliefs
sought for in all these writ petitions are broadly identical. For the sake of
convenience, we may refer to the reliefs sought for in Writ Petitio~ (C) No.
896 of 1990 filed by the National Federation of State Bank of, India
Scheduled Castes/Scheduled Tribes Employees. They are (a) to issue a'writ G
of mandamus directing the respondent (State Bank of India) to implemen,J:
the reservation policy by maintaining the roster system; (b) to direct th{
respondents (Union of India, State Bank of India and the Chairman of the
Indian Banks Association) to fill up the backlog of unfilled vacancies since
1978 by applying the carry-forward rule in all grades and scales with H
r

752 SUPREME COURT REPORTS [1995),2 S.C.R.

A consequential benefits; (c) to restrain the second respondent (State Bank
of India) form making any promotion from Scale-I to Middle Management
Scale-II and Middle Management Grade-III, upto Scale-VII, without fol- ' ~;

lowing the principle of reservation; (d) to grant promotion to Scheduled
Castes/Scheduled Tribes employees/officers with retrospective effect with
B consequential benefits of salaries and allowances; and (e) to carry out the
aforesaid directions within a prescribed time-frame.

2. For a proper appreciation of the issues arising herein, it is neces-
sary to refer to the orders issued by the Government of India on the subject
of concessions to Scheduled Castes/Scheduled Tribes employees in the
C matter of promotions within Class-I service (which are to be filled by
promotion) from time to time. Though the question that ultimately falls for _
consideration lies in a short compass, a reference to those orders and to
decision of this Court on the subject has become necessary.

D 3. By Office Memorandum No. 1/10/61-Estt.(D) dated November 8,
1963 issued by the Ministry of Home Affairs, reservation at 121/2 per cent
and five· per cent of the vacancies was provided for Scheduled Castes and
'1
Scheduled Tribes candidates respectively in Class-III and Class-IV posts
filled by promotion based on (i) selection or (ii) the results of competitive
examinations limited to departmental candidates, in grades or services to
E which there was no direct recruitment. The Memorandum stated that there
would be no reservation for Scheduled Castes/Scheduled Tribes in appoint-
• ments made by promotion to a Class-II or to a higher service or post,
irrespective of the method of appointment. The aforesaid policy was
revised and fresh orders issued in Office Memorandum No. 1/12/67-
·- F Estt.(C) dated 11th July, 1968 issued by the Ministry of Home Affairs. This
Memorandum provided for several matters of which it is necessary to
notice only the provision made under "(B) promotion by selection method:
(a) Class-I and II appointments". It provided that in promotion by selection
inter alia from Class-II to 'the lowest rung or category in Class-I, the
procedure prescribed therein shall be followed, viz., (i) in the case of
G eligible Scheduled Castes and Scheduled Tribes candidates, the grading
given to them shall be upgraded by one stage. This concession shall,
however, be confined to only twenty five per cent of the total vacancies in
a particular grade or post filled in a year; (ii) "Those Scheduled Cas-
tes/Scheduled Tribes employees. who are senior enough in the zone of
,H coruiideration so as to be within the number of vacancies for which the
FEDERATION OF S.B.I. v. U.0.1. (B.P. JEEVAN REDDY, J.] . 753

~~
Select List has to be drawn, should be included in the Select list, if they A
are not considered unfit for promotion and should also be given one
grading hither than the grading otherwise assignable to them on the basis
of their record of service and their place in the Select List determined on
the basis of this higher categorisation".

4. The orders in Memorandum dated July 11, 1968 were supple- B
mented by orders issued on March 26, 1970 which is the one which falls
r for our· consideration. Having regard to its crudal relevance, it would be
~ appropriate to set out the Office Memorandum dated March 26, 1970 in
full:
--f.
"Ministry of Home Affairs O.M. No. 1/9/69-Est (SCT), Dated 26th
c
March, 1970.

Subject :- Concessions to Scheduled Castes and Scheduled Tribes
in posts filled by promotion - Class-I Services/Posts.
D
-(

~
-------------
'J\he question of increasing the representation of Scheduled
Castes and Scheduled Tribes employees in Class-I services/Posts
under the Government of India has been under the consideration
for some time past. In this Ministry's O.M.No. 1/12/67-Est(O) E
dated 11th July, 1968, certain concessions have been provided to
Scheduled Castes and Scheduled Tribes, inter alia in the matter
of promotion by selection to the lowest rung or category in Class-I .
.:.......1 It has now been decided that the following concessions and facilities
will be provided to Scheduled Castes and Scheduled Tribes officers F
for their promotions within Class-I also.

In promotions by selection to posts within Class-I, which carry
an ultimate salary of Rs. 2250/- in the revised scale of pay per
month, or less, the Scheduled 1,Castes/Scheduled Tribes officers,
.._,) who are senior enough in the z6n.e of consideration for promotion G
so as to be within the number of vacancies for which the select list
has to be drawn up, would be included in the list provided they
are not considered unfit for promotion. Their position in the select
list would however be the same as assigned to them by the
Departmental Promotion Committee on the basis of their record H
SUPREME COURT REPORTS [1995) 2 S.C.R.

A of service. They would not be given for this purpose, the grading
higher than the grading otherwise assignable to them on the basis
of their record of service.

In order to improve the chances of Scheduled Cas-
tes/Scheduled Tribes officers for selection to the higher categories
B of posts in Class-I, it has further been decided that:

(i) Scheduled Castes/Scheduled Tribes officers in Class-I services
posts should be provided with more opportunities for institutional
, training and for attending seminars/symposia/conferences. Ad-
vantage could in this connection be taken of the training facilities
c available at the National Academy of Administration, Mussorie,
National Police Academy, Mount Abu, Indian Institute of Public
Administration, New Delhi, the Administrative Staff College,
Hyderabad, etc. and

D (ii) It should be the special responsibility of the immediate superior
officers of the Schedules Castes/Scheduled Tribes officers in Class-
I to give advice and guidance to the latter to improve the quality
of their work. /

Ministries/Departments under whom Scheduled Cas-
E tes/Scheduled Tribes Class-I officers might be serving should en-
sure that these decisions are implemented with expedition.
Ministries/Departments (or the Heads of Departments) under
whom such officers might be serving may specially watch the
. progress of these officers so that all appropriate steps are taken
wherever necessary, to improve the efficiency of these officers for
F the purpose of their selection to higher posts.

4. The orders contained in paragraph-2 above take effect from the
date of issue except in respect of selections already made prior to
the issue of these orders. '
G 5. Ministry of Finance, etc. are requested to bring -the above
decisions to the notice of all concerned.

6. In so far as persons serving in offices under the Comptroller
and Auditor General of India are concerned, separate orders will
H issue in due course." (Emphasis added)
i ,,

FEDERATION OFS.B.I. v. U.0.1. [B.P.JEEVAN REDDY,J.) 755

5. It is necessary to notice the significant features of this Office A
Memorandum. They are: (a) this Office Memorandum does not speak of
reservation; it speaks of concessions and facilities being provided to
Scheduled Castes/Scheduled Tribes; (b) whereas under the earlier Office
Memorandum, a certain concession was provided to Scheduled Cas-
tes/Scheduled Tribes candidates in the matter of promotion by selection to B
the lowest rung 9r category in Class-I, under this Memorandum conces-
sions and facilities were provided to Scheduled Castes/Scheduled Tribes
officers for their promotions within Class-I also. However, these conces-
sions and facilities were limited to posts within Class-I which carry an
ultimate salary of Rs. 2250 in the revised scale of pay per month or less.
The nature and character of concession provided by this Office Memoran- C
---< dum is slightly different from the one provided by Office Memorandum
dated July 11, 1968 for promotion to the lowest rung or category in Class-I;
(c) The concession provided to Scheduled Castes/Scheduled Tribes of-
ficers is this: those Schedules Castes/Scheduled Tribes officers who are
senior enough in the zone of consideration for promotion so as to be within D

..
---\
the number of vacancies for which the select list has to be drawn up, would
be included in the select list provided they are not considered unfit for
promotion. (It is this formula, if we can call it one, which has given rise to
controversy and varying interpretations. and upon which we have to
pronounce - which aspect we shall deal with a little later.); (d) the position
of Scheduled Castes/Scheduled Tribes candidates so included in the select E
list would, however, be the same as assigned to them by the Departmental
Promotion Committee on the basis of their record of service. (e) for the
aforesaid purpose, the Schedules Castes/Scheduled Tribes candidates will
not be given one grading higher than the grading otherwise assignable to
I them on the basis of their record of service.
F
6. The facilities provided in Para 3 of this Memorandum include
special training, advice and guidance. It is not necessary to refer to them
in detail. The said orders were to take effect from the date of issue ·of the
said Memorandum but the promotions already made were to remain
unaffected by it. G

7. On December 23, 1974, Office Memorandum No. 1/10n4-Estt.
(SCT) was issued form the Department of Personnel, Training and Ad-
ministrative Reforms (addressed to all Ministries) on the subject of "con-
cessions to Scheduled Castes and Scheduled Tribes in posts filled by H
r

756 SUPREME COURT REPORTS (1995] 2 S.CR.

A promotion by selection - posts within Class- I". This Memorandum rr.c:rely
reiterated the concession contained in the Memorandum dated March 26,
1970 and requested the Ministry of Finance and other ministries to bring
the said decision to_ the notice of all concerned.

8. On December 31, 1977, the Ministry of Finance, Department of
B Economic Affairs (Banking Division), Government of India addressed a
letter to all the National Banks as well as to the State Bank of India and
its subsidiary banks intimating them that the Ministry has since decided "to
extend the scheme of reservation in promotions also". The letter stated that
according to the Reserve Bank of India, it will be difficult to formulate a
C scheme uniformly applicable to all the banks though the basic policy of
reservation can always be enunciated. The letter stated that Reserve Bank
of India has already fong.ulated a scheme on the subject applicable to its
employees. While enclosing a copy of the Reserve Bank of India-scheme,
the public sector banks were requested "to implement to Government's ·
D orders suitably in your existing schemes of promotions with such proce-
dural modifications as may be necessary". It is necessary to point out that
this letter refers to "promotions in the various grades in the public banking·
system" generally whereas the Office Memorandum dated March 26, 1970
deals specifically with promotions within Class-I only. Further, this letter
(dated December 31, 1977) does not refer to or modify the orders issued
E in the earlier Memorandums referred to above, which means that those
orders remained unaffected.

9. On May 30, 1981, the Ministry of Finance, Department of
Economic Affairs (Banking Division), Government of India issued a letter
p No. F.1/45178-SGT(B) addressed to Chairman ivid Managing Directors of \
twenty nationalised Banks as well as to the Chairman, State Bank of India
and Managing Directors of seven subsidiary banks of State Bank of India
on the subject of "reservation for Scheduled Castes/Scheduled Tribes in
promotion". After inviting attention to the letter dated December 31, 1977,
Office Memorandums dated March 26, 1970 and dated December 23, 1974,
G the letter stated: "(A)s per the Government orders, there is no reservation
for Scheduled Castes and Scheduled Tribes in 'promotion by selection'
within the officers cadre. But certain concessions and facilities are to be
provided to the Scheduled Castes and Scheduled Tribes officers in order
to improve their chances for selection to the higher categories of posts in
H the officers cadre in accordance with the orders contained in the aforesaid
I
T

FEDERATION OFS.B.I. v. U.0.1. [B.P.JEEVAN REDDY,J.) 751 .

Office Memorandums of Ministry of Home Affairs. It has been decided A
that the concessions mentioned in Para-2 of MHA's O.M. dated 26.3.i970
would be available to the SC/ST officers in Public Sector Banks/Financial
Institutions in 'Promotions by Selection' to posts within the officers cadre
upto scale-III. The copies of MHA's O.M. dated 26.3.1970 and DP & AR
O.M. dated 23.12.74 are enclosed herewith". The Banks were requested to B
implement the said directions.

10. By letter dated November 7, 1983, (F.No. 101/11/83-SCT(B) from
the Ministry of Finance, Department of Economic Affairs (Banking
Division), Government of India the instructions issued in the letter dated
May 30, 1981 were reiterated and the formula contained in Para 2 of the C
Office Memorandum dated March 26, 1970 was explained by giving an
illustration. The illustration reads thus : "(T)o illustrate, if 200 vacancies
arc to be filled in and 3 times the number of vacancies is considered as,
falling within the 'zone of consideration', then any SC/ST officer whose
seniority falls within the first 200 will be eligible for promotion provided
that he is not found unfit for promotion". By another letter dated March D
25, 1987, the Ministry of Finance, Department of Economic Affairs (Bank-
ing Division), Government of India reiterated the aforesaid directions.

11. The last communication in the sequence is the Office Memoran-
dum No.36012/6/83-Estt.(SCT) dated November 1, 1990 issued by the E
Ministry of Personnel, Public Grievances and Pensions (Department of
Personnel and Training), Government of India addressed to all the Mini-
stries and Departments of Governinent of India including the Ministry of
Finance (Banking Division). This Office Memorandum is clarificatory in
- I nature. It would be appropriate to read it here: ·
F
"OFFICE MEMORANDUM

Subject : Concessions to Scheduled Castes/Scheduled Tribes in
posts filled by promotion-Group A services/posts.

•••••••••• G

The undersigned is directed to refer to the O.M.No. 1/9/69-
Estt. {SCT) dated 26th March, 1970 as amended vide O.M. No.
l/10n4-Estt.(SCT) dated 23.12.1974 and O.M. No. 36012/12/88-
Estt.{SCT) dated 21.9.1988 on the above mentioned subject (copy ·H
T

758 SUPREME COURT REPORTS (1995) 2 S.C.R.

A enclosed).

2. Though in the O.M. cited above it has been clearly mentioned
that in promotion by selection within Class I (now Group A) to
posts which carry an ultimate salary of Rs. 2000 per month or less
(since revised· to Rs. 5700), the Scheduled Castes/Scheduled Tribes
B will be given a concession namely "those Scheduled Cas-
tes/Scheduled Tribes who are senior enough in the zone of con-
sideration for promotion so as to be within the number of vacancies
for which select list has to be drawn up, would be included in that
list provided they are not considered unfit for promotion", doubts
c have been expressed in certain quarters as to whether the conces-
sion given hereinabove is a reservation or a concession.

3. It is hereby clarified that in promotion by selection within Group
'A' to posts which carry an ultimate salary of Rs. 5700 p.m., there
is no reservation."
D
12. It would be appropriate at this stage to refer to the letter dated ~
May 9, 1980 from the Ministry of Finance, Department of Economic r--·
Affairs (Banking Division), Government of India, addressed to the Chair-
man, Indian Banks Association, Bombay explaining the meaning of certain
E expressions occurring in the Office Memorandums refereed to above. They
are to the following effect: though according to the New Officers Service
Regulations, salary includes basic pay and DA, so far as reservations are
concerned, i.e., for the purpose of reservation, "ultimate salary" is meant to
convey the basic pay only and does not include the variable DA. It was for
this purpose that promotions upto Scale-III have been covered which
F carries the scale upto Rs. 2250 which is exclusive of DA". With respect to
the expressions "zone of consideration" and "not found unfit", the following
clarification was made:

"Clarifications have also been sought regarding the term "zone of
G consideration" and "Not found unfit". Zone of consideration is
meant to cover all candidates who satisfy the prescribed conditions
which have been laid. down for being considered for promotiOn. ·
This would mean that this zone of consideration would be similarly
applicable to the general as well as SC/ST candidates. As regards
H the term "Not found unfit", it is clarified that this terms is meant
/

FEDERATION OF S.B.I. v. U.0.1. [B.P. JEEVAN REDDY, J.) 759

to convey that there is nothing adverse against the candidate." A
13. It may be noted that the scale of Rs. 2250 mentioned in the Office
Memorandum dated March 26, 1970 was later revised to Rs. 5700, as stated
in Office Memorandum dated November 1, 1990 referred to in the preced-
mg para.
B
14. The Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel and Training), Government of India has been
issuing a Brochure on the subject of reservation for Scheduled Castes and
Scheduled Tribes in services from time to time. This Brochure sets out the
reservations, concessions and facilities provided to Scheduled Castes and C
Scheduled Tribes officers in Government service from time to time in a
condensed form besides setting out the orders issued by the Government
of India from time to time. Quite often, the courts have been referring to
this Brochure while referring to the reservations/concessions provided to
the said categories. One such reference is in Bihar State Harijan Kalyan D
Parishad v. Union of India, [1985) 2 S.C.C. 644. Para 9 of the Brochure, as
extracted in the said judgment, reads thus :

"In promotions by selection to posts within Group 'A' which carry
an ultimate salary of Rs. 2250 per mo~th, or less, the Scheduled E
Caste/Scheduled Tribe officers, who are senior enough in the zone
of consideration for promotion so as to be within the number of
vacancies for which the select list has to be drawn up, would be
included in that list provided they are not considered unfit for
_j promotion. Their position in the select list would, however, be the
same as assigned to them by the Departmental Promotion Com-
F
mittee on the basis of their record of service. They would not be
given, for this purpose one grading higher than tha grading other-
wise assignable to them on the basis of their record of service."

(What is extracted is obviously a portion of Para 9 and not the whole of G
".J Para 9. The decision does not also mention from which edition of the
Brochure was it quoted.)

15. in 1987, the Government of India issued the seventh edition of
the said Brochure in which Para 9.2, corresponding to the one quoted H
r

760 SUPREME COURT REPORTS (1995] 2 s.c.R.

A above, reads as follows :

"9.2 Promotion by selection method.

MHA OM NO. 1/9/69. Estt. (SCT) dated 26.3.70 and Deptt.
of Personnel & A.R.O.M. NO. 111on4-Estt. (SCT) dated
B 23.12.74.

9.2 (a) Promotions by selecting within Group A (Class I).

In promotions by selection to posts within Group A
c (Class I) which carry an ultimate salary of Rs. 2,000 per
month, or less, (Rs. 2,250 per months or less in the revised
scale) there is no reservation, but the Scheduled Castes and
Scheduled Tribes Officers, who are senior enough in the zone
of consideration for promotion so as to be within the number
of vacancies for which the select list has been drawn up,
D
would be included in that list provided they are not con-
sidered unfit for promotion. Their position in the select list
would, however, be the same as assigned to them by the
,---
Departmental Promotion Committee on the basis of their
record of service. They would not be given for this purpose,
E one grading higher than the grading otherwise assignable to
them on the basis of their record of service.

In order to improve the chances of Scheduled Castes and
Scheduled Tribes officers for selection to the higher
categories of posts in Group A (Class I).
\ __
F
(i) Scheduled Castes/Scheduled Tribes officers in Group
A (Class I) Services/posts should be provided with
more opportunities for institutional training and for
attending seminars/symposia/conferences. Advantage
G would also be taken of the training facilities available
at the Lal Babadur Shastri National Academy of Ad-
ministration, Mussoorie, National Police Academy,
Hyderabad, Indian Institute of Public Administration,
New Delhi, the Administrative Staff College,
H Hyderabad etc. and
. I
,, I
FEDERATION OF S.B.I. v. U.0.1. [B.P. JEEVAN REDDY, J.) 761

(ii) It would be the special responsibility of the immediate A
superior officers of the Scheduled Castes/Scheduled
Tribes officers in Class I to give advice and guidance
to the latter to improve the quality of their work.

(emphasis added) B
16. The only difference between Para 9.2 as quoted in Bihar State Harijan
Kolyan Parishad and the one contained in the seventh edition of the
Brochure is the addition of the wordS "there is no reservation" underlined
by us, which are not found in the version quoted in the said decision. A
good amount of controversy is raised with respect to this addition. In our C
opinion, the said controversy is not real and is born of an insufficient
appreciation of the manner in which the Brochure is prepared by the
Government of India. Ai!. stated above, the Brochure sets out the gist, the
substance and the purport of the various orders issued from time to time.
If only one looks to the original Office Memorandum instead of concentrat- D
ing upon the Brochure, the entire controversy turns out to be unreal.
Insofar as promotions within Oass-1 are concerned - wc are referring to
promotions within Oass-1 along for the reason that wc arc concerned in
this case with only those promotions - it is admitted by Sri Rajinder
Sachhar, learned counsel for the petitioners as well as the learned counsel
for the Union of India and the Banks that there are no other orders except E
those referred to above; in particular, it is admitted, there is no order
applying the rule of reservation to the said promotions (within Oass-1). In
such a situation, the approp~te course would be to refer to the Office
Memorandums issued by the Government of India - particularly the Office
Memorandum dated March 26, 1970 - rather than to the Brochure. Ai!. we F
I shall explain later, sub-paras (1) and (2) of Para 9 of the Brochure
represent the gist of Office Memorandums referred to above and are in no
manner different or inconsistent.

17. We may now tum to the meaning and nature of the "concession"
contained in the Office Memorandum dated March 26, 1970. We have G
already set' out the significant features of the said concession contained in
Para 2 of Office Memorandum in Para S of this judgment. We shall now
explain what exactly does the formula mentioned under (c) in Paragraph
S of our judgment mean? For the sake of convenience, we shall repeat the
formula. "In promotions by selection to posts within Oass-1...the Scheduled H
762. SUPREME COURT REPORTS (1995) 2 S.C.R.

A Castes/Scheduled Tribes officers who are senior enough in the zone of
consideration for promotion so as to be within the number of vacancies for
which the select list has to be drawn up would be included in the list
provided they are not considered unfit for pr<lmotion". It is unnecessary to
B reiterate that the said Office Memorandum does not provide for reserva-
tion as contemplated by Article 16(4) of the Constitution of India; it only
provides for a concession which the State can always provide under Article
16 as explained in Indira Sawhey & Ors. etc.etc. v. Union of India & Ors.,
C (1992) Suppl. III S.C.C. 217. The concession is evidently designed and
intended to help the Scheduled Castes/Scheduled Tribes uificers obtain
promotions which they may not otherwise get. Towards that purpose, it is
provided that those Scheduled Castes/Scheduled Tribes officers who are
D senior enough in the zone of consideration so as to be within the number of
vacancies available shall be included in the select list provided they are not
considered unfit for promotion. The said formula has been explained with
reference to an illustration in the letter dated November 7, 1983, referred
E to. above. Be that as it may, we shall elaborate and explain it. Take a case
where twenty vacancies arise which have to be filled by promotion by
selection; according to the relevant rules, thrice the number of vacancies
are to be considered - in other words, a list of sixty eligible candidates has
F to be prepared who alone will be considered for promotion to the said
twenty posts, which list is but another name for "the zone of consideration"
referred to in the Office Memorandum; (ordinarily, this list is prepared on
the basis of seniority-cum-eligibility); if any Scheduled Castes/Scheduled
- Tribes officer happen to. fall within Serial No. 1 to 20 in the said list•, they
G shall be included in the select list without further ado, i.e., without subject-
~g them to the process of selection and without comparing their merit and
grading with the merit and grading of the other officers within the zone of \

H . consideration. But for the said concession, it may be noted, these \

Scheduled Castes/Scheduled Tribes officers may not get selected even
though they may fall within Serial No. 1 to 20 in the zone of consideration
for the reason that the candidates below Serial No. 20 may have a better
record of service and grading than them. Since the promotion is on the
basis of selection, the more meritorious (the officer having better grading)
will get selected notwithstanding his position in the zone of consideration.
It. appears quite obvious that candidates belonging to Scheduled Cas-

We shall refer to the said list containing 60 officers - S.Nos. 1 to 60 - as the zone of
consideration. · ·
FEDERATION OF S.B.I. v. U.0.1. [B.P. JEEVAN REDDY, J.] 763

tes/Scheduled Tribes were not getting selected by following the normal A
procedure of selection and hence, the said concession was provided. Ac-
cording to it, it is enough if a Scheduled Castes/Scheduled Tribes candidate
comes within Serial No. 1 to 20 in the zone of consideration in the
illustration given above. He would be automatically included in the select
list, even though his grading on the basis of his record and performance B
may be far inferior to the grading of the other officers below Serial No. 20
in the zone of consideration proyided, of course, such Scheduled Cas-
tes/Scheduled Tribes' officer is not found unfit for promotion. So far as
Scheduled Castes/Sl.neduled Tribes candidates below Serial No. 20 in the
zone of consideration are concerned, they will, of course, be not entitled
to any such concession and, therefore, have to compete with other can- C
didates within the zone of consideration. It is equally clear that the O.C.
candidates between Serial No. 1 to 20 in the zone of consideration will not
be entitled to the aforesaid concession; they will have to compete with all
others in the zone of consideration (S.No. 1 to 60) for selection to the said
vacancies. This, in short, is the concession. Since it is only a concession and D
not a reservation, the several letters of the Ministry of Finance referred to
above, viz., letters dated May 30, 1981, November 7, 1983, March 25, 1987
and the clarificatory Office Memorandum dated November 1, 1990
repeatedly say that while there is no reservation for Scheduled Castes and
Scheduled Tribes in this behalf (i.e., in the matter of promotion by selection
to posts within Class-I) a concession is provided to them. It is because of E
this circumstance again that Para 9.2 in the seventh edition of the Brochure
on the subject of reservation for Scheduled Castes and Scheduled Tribes
in services says that while there is no reservation, the Scheduled Cas-
tes/Scheduled Tribes candidates are entitled to the concession mentioned
therein.
F

\
,y
18. Sri Rajinder Sachhar, learned counsel for the petitioners placed
strong reliance upon the decision in Bihar State Harijan Kalyan Parishad.
Learned counsel submitted that the said decision clearly lays down that the
rule of reservation does apply to the promotions concerned herein by virtue
of Para 9 of the Brochure. According to the learned counse~ Para 9 of the G
Brochure and the Memorandums aforesaid must be understood in the
following manner: the Government of India has prepared, published and
communicated to all the departments including Public Sector Banks the
forty-point roster; the places reserve for Scheduled Castes/Scheduled
'Tribes are clearly specified in the said roster; the said Memorandums and H
i

764 SUPREME COURT REPORTS (1995) 2 S.C.R.

A Para 9 of the Brochure must be understood in the context of and in the
li~t of the said roster; if so understood, it means that all the Scheduled
"~.ti
Castes/Schedules Tribes candidates who are within the zone of considera-
tion sh®ld automatically be appointed to the posts reserved for them. The
learned ·~ounsel pointed out that if the respondents' contention is accepted,
it may happen that all the available vacancies are filled up by Scheduled
B Castes/Scheduled Tribes candidates; thus resulting in 100% reservation. In
the ~ation given hereinabove, he submitted, it may happen in a given
case that the Scheduled Castes/Scheduled Tribes candidates are at Serial
No. 1 to 20 - or at any rate, in a large number; then they will take away ail :r
c
the available twenty vacancies or such large nhmber. This too would not
be consistent with the principle underlying clauses (1) and (4) of Article
"')
16.~the Constitution of India. As against this, stated the learned counsel,
the 'ihterpretation placed by him is not only reasonable but consistent with ·r-·
the general reservation policy of the Government of the India and serves
to ensure the vacancies reserved for Scheduled Castes/Scheduled Tribes to
them, even though in competition with open category candidates they may
D lag behind. In the original Office Memorandum dated March 26, 1970, he
pointed out, there are no words to the effect "there is no reservation" which
are found in Para 9.2 as printed in the seventh edition of the Brochure.
~
The introduction of the said words in the seventh edition and in the letters
dated May 30, 1981, November 7, 1983, March 25, 1987 and the
E clarificatory O.M. dated November 1, 1990 is unwarranted and un-
authorised. Learned counsel submitted further ~t the original Memoran-
dum issued by the Ministry of Home Affairs must be followed and cannot
be amended or altered by the Ministry of Finance while purporting to
communicate the same to Public Sector Banks for implementation.

r
F
19. We are enable to agree with the learned counsel. It is admitted ·
on all hands that so far as promotions within Class-I are concerned - with
which alone the Memorandum dated March 26, 1970 deals - there are no
orders of the Government of India applying the rule of reservation. We
have referred hereinbefore to the earlier Memorandum dated July 11, 1968
~-
G (which in turn refers to an yet earlier Memorandum dated November 8,
1963). Those earlier Memorandums provide for reservation in Classes-Il, \
m and IV but not for promotion to Class-I and not at any rate to ~-
promotions within Class-I. Nor does the Memorandum dated March 26,
1970 provide for such reservation. The idea is self evident. While the rule
H of reservation is made applicable to the lower categories, viz., Classes-0,
FEDERATION OFS.B.I. v. U.0.1. [B.P.JEEVAN REDDY,J.) 765

III and IV (to the extent specified in the said Memorandums), no such A
reservation was thought advisable in the matter of promotions within
---"';
Class-I. Instead of reservation, a concession was provided, the concession
explained hereinabove. It is this fact which has been reiterated, affirmed
and clarified in the subsequent letters of the Finance Ministry. It is thus
clear that the letters of the Ministry of Finance dated May 30, 1981 and
the subsequent ones do not amend or modify the Office Memorandum
B
dated March 26, 1970 but merely explain it. They make explicit what is
implicit"in it. So is the rendering of Para 9.2 in the seventh edition in the
-.., Brochure. What all they say is that the rule of reservation does nol 1tpply
r
y to promotions within Class-I (i.e., promotions to be made on the basis of
I
selection to posts which carry an ultimate salary of Rs. 2250 per month or c
--1/ less in the revised scale) but a concession in terms of Para 2 of the
Memorandum dated March 26, 1970 is provided in that behalf. It cannot,
therefore, be said that either the letters of the Ministry of F"mance or the
rendering of Para 9.2 in the seventh edition of the Brochure is inconsistent
with the Memorandum dated March 26, 1970 or that they arc contrary to
the orders of the Government.
D

-- 20. Now, coming to the decision in Bihar State Harijan Kalyan
Parishad, the attack therein was upon two letters, one issued by the
Ministry of Steel and Mines dated April 8, 1982 addressed to the Chairman
of the Steel Authority of India Limited and the other dated August 19, 1982 E
from the Steel Authority of India Limited to the Chief Personnel Manager,
Bolcaro Steel_ Plant respectively. It was contended that the said letters were
inconsistent with and contrary to Para 9 of the Brochure. The judgment
starts the discussion by saying :
F

\/ "the Government of India, Ministry of Finance, Bureau of Public
Enterprises, issued a directive to the Chief Executives of all Public
Sector Enterprises on the subject of reservation for Scheduled
Castes and Scheduled Tribes in appointments in public enterprises.
While 15 per cent and 7 1/2 per cent of posts arc generally to be
reserved for Scheduled Castes and Scheduled Tribes respectively, G
in the case of promotion of members of the Scheduled Castes and
)~
Scheduled Tn"bes to posts, promotion to which are by the selection
method, a special procedure is devised by Para 9 of the directive."

After setting out Para 9, the judgment proceeds to say : -H
i
766 SUPREME COURT REPORTS (1995) 2 S.C.R.

A "(A) close perusal of the directive and in particular paragraph 9
which deals With "concessions to employees of Scheduled Castes
and Scheduled Tribes in promotions by selection method" makes
it abundantly clear that the rule of res~rvation is also applicable
to promotions by selection to posts within Group 'A' which carry
an ultimate salary of Rs. 2250 per month or less, but that the
B procedure is slightly different than in the case of other posts. While
the rule of reservation applies to promotions by selection to posts
within Group 'A' carrying a salary of Rs. 2250 per month or less,
it is prescribed that unly those officers belonging to the SFheduled
Castes and Scheduled Tribes will be considered for promotion,
c who are senior enough to be within the zone of consideration.
Thereafter a Select List depending upon the number of vacancies
would be drawn up in which would also be included those officers
belonging to the Scheduled Castes and Scheduled Tribes who are
not considered unfit for promotion. Their position in the Select
list would be that assigned to them by the Departmental Promotion ·~1
D Committee on the basis of the record of service. In other words, '•
their inclusion in the Select List would not give them seniority,
merely by virtue of their belonging to the Scheduled Castes and ;'. · .
Scheduled Tribes over other officers placed above them in the
Select List by the Departmental Promotion Committee. This ap-
E. pears to us to be the only possible interpretation of paragraph 9
of the directive."

21. Though the judgment does not give the reference number or date
of the directive referred to by it (i.e., the one issued by the Government of
F India, Ministry of Finance, Bureau of Enterprises to the Chief Executives
of all Public Sector Enterprises on the subject of reservation for Scheduled
Castes and Scheduled Tribes) the reference evidently is to the Office
Memorandum No. 6/16/81-BPE/GM-I(SCT Cell) dated January 18, 1982
addressed to all Ministries/departments of Government of India and Chief
Executives of all Public Enterprises, a copy of which is supplied to us in
G the paper book furnished by the petitioners. The subject of the Memoran-
dum is "reservation for Scheduled Castes and Scheduled Tribes in appoint-
ments in public enterprises - issue of revised draft directives". The
Memorandum says that several orders/instructions have been issued on the
said subject previously but that "it has now been found necessary that a
H consolidated directive should be issued incorporating all the provisions
FEDERATION OF S.B.I. v. U.0.1. [B.P. JEEVAN REDDY, J.) 767

contained in the supplementary directives and also the provisions con- A
tained in the orders issued from time to time by Department of Personnel
and Administrative Reforms. Accordingly, it says, "a comprehensive
revised Draft Presidential Directives on the subject have been drawn up
and enclosed". The enclosure to the said letter is entitled "Concessions to
employees of Scheduled Castes and Scheduled Tribes in promotions by B
selection method". It opens with the heading "Group A and B appoint-
ments" and under it the sub-heading is "A.Promotion within Group A". The
first sub-para reads thus :

"In promotions by selection to posts within Group 'A' which carry
an ultimate salary of Rs. 2250 per month or less, the Scheduled C
Caste/Scheduled Tribe Officers, who are senior enough in the zone
of consideration for promotion so as to be within the number of
vacancies for which the select list has to be drawn up, would be
included in that list provided they are not considered unfit for
promotion. Their position in the select list, would, however, be the D
same as assigned to them by the Departmental Promotion Com-
mittee on the basis of their record of service. They would not be
given, for this purpose one grading higher than the grading other-
wise assignable to them on the basis of their record of service."

22. The second sub-para sets out the special training and facilities E
extended to Scheduled Castes/Scheduled Tribes officers to improve their
efficiency. It is thus clear that what is mentioned under sub-heading
"A.Promotions within Group 'A'" is nothing but Para 9 of the Brochure,
which is quoted in the judgment in Bihar State Harijan Kalyan Parishad.
We may also mention that the said enclosure contains several other matters f
under sub-headings, "9AA. Promotions through limited departmental com-
petitive examination", "9B. Promotions by selection from Group 'C' to
Group 'B', within Group 'B' and from Group 'B' to the lowest rung or
category in Group 'A'" and "9BB. Promotions by selection in Group 'C'
and 'D' appointments". So far as promotions within Group 'A' are con-
cerned, the said enclosure (Paragraph 9A) - referred to as the directive in G
the judgment - does not say that the rule of reservation is applicable to

- .~
such promotions. It only speaks of the concession which is but a repetition
of the concession contained in the Office Memorandum dated March 26,
1970. In other words, the directive referred to in the judgment - or for that
matter Para 9 set out therein - does not provide for reservation in ,the H
T
768 SUPREME COURT REPORTS [i99S) 2 S.C.R.

A matter of promotions within Class-I. It only provides for the concession
aforementioned. It appear that the attention of the learned Judges was also .,..._
not invited to the Office Memorandum dated March 26, 1970 or to the
other Office Memorandums and letters specifically. Be that as it may, what
iS relevant is that neither the Presidential Directive referred to in Bihar
State Harijan Kalyan Parishad nor the Office Memorandums referred to
B above nor for that matter Para 9 of the Brochure provide for reservation
in the matter of promotions within Class-I. We must, therefore, say with
great respect that the assumption made in the judgment in Bihar State
T
Harijan Kalyan Parishad that the rule of reservation applies to· pr~motions

c
within Class-I does not appear to be correct. We may also mention that
Paras 9.1and9.2, as set out in the Brochure (seventh edition), do not say
~
anythjng different. Pata 9.2 insofar as is relevant has already been set out
in Para 15. We may now set out Para 9.1 in full:
·-,_-
"9.1 Promotion through limited departmental competitive examina-
tions
D
As indicated in para 2.1 (tii)(a), there is a reservation of 15
.percent and 7 1/2 per cent of vacancies for Scheduled Castes and
Scheduled Tribes respectively in promotions made on the basis of r--
competitive examination limited to departmental candidates, in
Groups 8, C and D (Class n, III and IV) posts, in grades or .
E
services in which the element of direct recruitment, if any, does
not exceed fX>-2/3 per cent. {Detailed instructions for filling such
reserved vacancies are given in Appendix 13).

In promotions through departmental competitive examinations,
F Scheduled Castes/Scheduled Tribes candidates who have not ac-
quired the general qualifying standard should also be considered
for promotion provided they are not found unfit for such promo-
tion. The qualifying standard in such examination should be
relaxed in favour of Scheduled Castes and Scheduled Tribes can-
r
~ .,

didates in. keeping wi~ the above criterian.
G
For determining the number of vacancies to be reserved for
Scheduled Castes and Scheduled Tribes in such promotions, a
. separate roster on the lines of the roster prescribed in Anncxure
"/ ~- -

" /
.,.,. I to O.M. No. 1/11/69.Est.{SCT) dated 22- 4-1970 (in which points
'H 1, 8, 14, 22, 28 and 36 are reserved for Scheduled Castcs'anct points
. . .·.- .''/
FEDERATION OF S.B.I. v. U.0.1. (B.P. JEEVAN REDDY, J.) 769·

4, 17 and 31 are reserved for Scheduled Tribes) should be fol- A
lowed."

23. For the above reasons, we must say, with all the respect at our
command that the decision in Biliar State Harija11 Kalya11 Parisliad cannot
be said to lay down the law correctly insofar as it purports to hold that the
rule of reservation applies in the matter of promotions within Class-I. B
24. It is brought to our notice that a review petition was filed against
the aforesaid decision, which was disposed of on January 21, 1987. The
order in review reads:

"This miscellaneous petitio11 is consequence of a mis-under- C
standing of our judgment dated 1st March, 1985 by the authorities.
We wish to clarify the position by stating that the Scheduled
Castes/Scheduled Tribes officers who arc senior enough to be
within the zone of consideration for promotion should be included
in the Select List against the vacancies available to the members D
of Scheduled castes/Scheduled Tribes according to the roster,
provided they arc not considered unfit for promotion. Paragraph
2 of the Presidential Directive should be strictly adhered to and
effect shall be given on the basis of scales of pay that obtained
prior to 1975 as mentioned in that paragraph. The officers E
promoted as a consequence of our order will be entitled to be paid
a salary and allowances from the respective dates with effect from
which they should have been promoted. We arc grateful to Shri
G. Ramaswamy, learned Additional Solicitor General for his as-
sistance.• . ·

\
>
25. This order also proceeds• on the assumption that'thc procedure
prescribed by Para 9 of the Brochure should be followed only with respect
to vacancies reserved for Scheduled Castes/Scheduled Tribes. For the
F

reasons mentioned hereinbefore, this order cannot also be ~pted as
laying down the correct interpretation of the aforesaid M}~mOrandums or G
the Presidential directive.

26. Reliance was next placed upon the subsequent decision of this
Court in Syndicate Bank Scheduled Castes/Scheduled Tribes Employees
Association v. Union of India and Ors., (1990) Suppl S.C.C. 350, a decision
rendered by N.M. Kasliwal and S.C. Agrawal, JJ. on August 10, 1990. H
7

770 · SUPREME COURT REPORTS [1995) 2 S.C.R.

A Foll6wing the decision in Bihar State Harijan Kalyan Parishad, it was held ·~
in this decision that in the matter of promotions within Class-I (Group-A)
posts, rule of reservation applies though subject to the procedure
prescribed in Para 9 of the brochure. The operative portion of the judg-
ment read thus :

B "It is· further decided that though Group 'A' posts are selection
posts still the reservation policy is applicable to such posts and the
respondents are directed to compute the backlog of unfilled
reserved quota available to SC/ST officers in the promotional posts
with effect from January 1, 1978, the date of introduction of
c reservation policy in the respondent Bank. The respondents are
further directed to grant promotion to the SC/ST employees of the
Syndicate Bank with all consequential benefits of salary and al-
lowances from the respective dates w.e.f. which they should have
been promoted, after applying the roster system in their favour.
We grant three monthS, time to carry out these directions."
D
27. It appears that a review petition was moved by the respondents
in the said writ petition relying particularly upon the words "there is no
reservation" occurring in Para 9.2(a) of the Brochure. Reliance was also
placed by the respondents on a decision of this Court in All India Banlc of
E Baroda Scheduled Castes and Scheduled Tribes Employees Association v.
Union of India and Ors., (Writ Petition No. 1594 of 1987 decided on August
18, 1988) in which it was held that promotions by selection within Oass-1,
to be effected on the basis of selection, shall be effected in accordance with
the rules contained in Para 9.2 of the Brochure. The review petition was
F dismissed on April 1, 1991 holding that the decision dated August 10, 1990
was based upon the material placed before them. It was observed that the
failure of the parties to bring a particular fact to the notice of the. court
furnishes no ground for review. The precise reason for dismissing the
review is to be found in the following observation:

G 'We may, however, make it clear that in the present case we were
only concerned with Scheduled Castes and" Scheduled Tribes
employees of the Syndicate Bank and tlie
policy of reservation with
regard to such employees. {ve·have decided the matter on the basis
to
of the material made avail~bte us at_ the time of arguments and
H on the basis of contentions made by cousel representing the respec-
' !
EDERATION OF S.B.I. v. U.0.1. (B.P. JEEVAN REDDY, J.) 771

tive parties. The case as such was decided on the peculiar facts A
---"( and circumstances of the case and in case such controversy arises
in future of Scheduled Castes and Scheduled Tribes employees of
other banks, in our view the parties will be free to get the con-
troversy decided by a proper forum by placing their respective
stands. With the above observations we dismiss the Review Petition
filed by the Union of India and the Bank."
B

'r 28. What we have said with respect to the decision in Bihar State

r Harijan Kalyan Parishad applied equally to the judgment in Syndicate Bank
Scheduled Castes and Scheduled Tribes Employees Association. Another
circumstance. The present writ petitions were filed evidently inspired by c
~
the decision in Syndicate Bank Scheduled Castes· and Scheduled Tribes
Employees Association rendered on August 10, 1990. When the first of
these writ petitions (Writ Petition (C) No. 896 of 1990) came up before a
Bench on November 26, 1990, it was directed that the writ petition be
posted immediately after the disposal of Review Petition Nos. 592 of 1990
and 6o8 of 1990 (review petitions referred to hereinabove). After the review
D
petitions were disposed of on April 1, 1991, Writ Petition No. 896 of 1990
·--..
along with other transferred writ petitions were posted before a Bench
comprising T.K. Thommen, J. and one of us (R.M. Sahai, J.) when it was
directed that these matters be placed before a Bench of which Hon'ble Mr.
Justice N.M. Kasliwal or Hon'ble Mr. Justice S.C. Agrawal are members. E
The matters were accordingly posted before a Bench comprising S.C.
Agrawal and Sujata V. Manohar, JJ. on January 18, 1995. After hearing
the parties, the Bench directed these matters to be listed before a Bench
of three Judges. It is pursuant to the said direction that these matters were
posted before us.

\
__>/ 29. It is true that we have arrived at a conclusion which is different
from the one adopted in Bihar State Harijan Kalyan Parishad and in
F

Syndicate Bank Scheduled Castes and Scheduled Tribes Employees Associa-
tion but we have no alternative in view of the clear language of the Office
Memorandum dated March 26, 1970, the Presidential directive referred to G
~ j
in Bihar State Harijan Kalyan Parishad as also Paragraph 9 of the Brochure
(whichever edition one looks to). It may be that according to our inter-
pretation, the members of Scheduled Castes/Scheduled Tribes may stand
to gain in some cases, in the sense that they may get more number of
promotions than they would have been entitled to had the rule of reserva- H
772 SUPREME COURT REPORTS [1995) 2 S.C.R.

A tion been applied to promotions within Class-I, while in some other cases
they may stand to lose. But that cannot be a factor determining the
interpretation of the relevant orders. It also appears that a view different
froin the view taken in Bihar State Harijan Kalyan Parishad was taken in
the order dated August 18, 1988 in Writ Petition No. 1594 of 1987 (All
B Indian Bank of Baroda SC/ST Employees Association v. Union of India and
Ors.), wherein it was held, no doubt on the basis of a concession made by
the learned counsel for the writ petitioners, that "the promotion by selec-
tion method of officers within Group 'A' (Class-I) in the Bank of Baroda
sball be done in accordance with the rules contained in Paragraph 9.2 in
Chapter 9 of the Brochure". This order does not refer to rule of reservation.
c
30. We may reiterate that both according to Sri Rajinder Sachhar as
well as learned counsel for the respondents, there is no specific order, rule
or Memorandum applying the rule of reservation in favour of Scheduled
Castes/Scheduled Tnl>cs in the matter of promotions within Class-I service.
D In the absence of such reservation, the forty-point roster prepared by the
Government of India cannot be applied or followed, for the simple reason
that the roster is prepared merely in implementation of and to carry out
the rule of reservation. There can be no roster in the absence of rule of
reservation. If the rule of reservation is not made applicable to a particular
appointment or promotion, there can be no question of following the
E forty-point roster therefor. The forty-point roster itself docs not provide
reservation. It merely specifies places for reserved categories in accordance
with and consistent with the rule of reservation already made.

31. For the above reasons, we hold that in the matter of promotion
F by selection to posts within Class-I which carry an ultimate salary of Rs.
2250 in the revised scale of pay per month or less, there is no reservation
in favo:ur of Scheduled Castes/Scheduled Tribes but they are entitled to the
concession contained in Para 2 of the Office Memorandam dated March
26, 1970 issued by the Ministry of Home Affairs. The concession is that
G those Scheduled Castes/Scheduled Tribes officers who are senior enough
in the zone of consideration for promotion so as to be within the number
of vacancies for which the select list has to be drawn up will be included
in the select list provided they are not considered unfit for promotion. (This
rule has been explained in the body of the judgment by giving an illustra-
tion, which it i!f .~ot necessary to repeat here.) The position of such
H candidates· incluaed in the select list would, however, be the same as is
I
f

FEDERATION OF S.B.I. v. U.0.1. [B.P. JEEVAN REDDY, J.] 773

assigned to them by the Departmental Promotion Committee on the basis A
of their record of service. The said candidates would not be entitled, for
the purpose of the said selection, one grading higher than the grading
otherwise assignable to them on the basis of their record of service. This
is also . the purport of Para 9 of the Brochure insofar as it deals with
promotions within Class-I.
B
32. So far as Prayer (b) in Writ Petition No. 896 of 1990 is con-
cerned,' we must say that it is not possible to accede to it. The prayer is to
direct the respondents in the writ petition to fill up the backlog of unfilled
vacancies since 1978 by applying the carry-forward rule in all grades and
scales with consequential benefits. Firstly, none of the relevant Memoran- C
dums and orders referred to above provide for carry-forward rule. In the
absence of such a rule, each year bas to be treated as the uni~ for applying
the rule of reservation or concession, as the case may be. In any event, so
far as the concession concerned herein is concerned, it can be applied and
followed only when a selection takes place. In the absence of a rule to that
effect, the said concession cannot be given effect to retrospectively. These D
writ petitions were filed only in 199o or thereafter. In such a case, there
can be no question of relating back the relief to 1978. So far as Prayer (c)
is concerned, it is equally beside the point in the light of what we have
decided herein, viz., that the special provision made in the matter of
promotions with Class-I is not in the nature of reservation but a concession. E
The only declaration and direction that can be granted in these matters is
that the respondents shall apply, implement and follow the concession
contained in Para 2 of the Office Memorandum dated March 26, 1970
aforesaid in the matter of promotions in Class-I to be made hereafter. Of
course, so far as promotions to Classes- II, ID and IV and promotions from
Class-II to the lowest rung or category in Class-I are concerned, the orders F
in Office Memorandum dated July 11, 1968 shall be followed.

33. The writ petitions and transfer petitions are disposeq of in the
above terms. There shall be no orders as to costs.

34. No arguments were addressed in the Interlocutory Applications. G
No orders are called for therein.

KS.D. Petitions disposed of.