Holding

A change that merely affects an employee’s chance of promotion does not alter his conditions of service and therefore does not contravene section 33(1)(a) of the Industrial Disputes Act.

Summary

The Reserve Bank of India (RBI) issued several promotion schemes for its staff, culminating in Administration Circular No. 6 (1979) which relaxed eligibility criteria for stenographers and personal assistants. During the pendency of a reference before the National Industrial Tribunal concerning a dispute over promotion (Item 12 of the schedule), some clerks filed complaints under section 33A of the Industrial Disputes Act, alleging that the circular altered their conditions of service and violated section 33(1)(a). The Tribunal held the RBI had contravened the Act and awarded in favour of the complainants. On appeal, the Supreme Court held that the circular only affected the chance of promotion, not the substantive condition of service, and therefore did not amount to a prohibited alteration under section 33(1)(a). Consequently, the appeals were allowed and the complaints dismissed.

Issues considered

The alteration of the promotion scheme by Circular No. 6 during the pendency of the reference constitutes a change in conditions of service under section 33(1)(a) of the Industrial Disputes Act, 1947.
Whether the matter of the promotional scheme is connected with the dispute referred to the National Industrial Tribunal under Item 12 ‘Promotion’.
Whether the employer’s power to modify conditions of service without written permission of the Tribunal can be exercised in this case.

Legislation cited

Industrial Disputes Act, 1947s. 10(IA), s. 31(1), s. 33(1)(a), s. 33(2), s. 33(3), s. 33A

Subjects

industrial disputepromotion schemeconditions of servicesection 33National Industrial Tribunalcircularchance of promotionappellate jurisdiction

Judgment

107 A

RESERVE BANK OF INDIA, BOMBAY
v.
C.T. DIGHE AND OTHERS B

July 27, 1981

(A.C. GUPTA, R.S. PATHAK AND 0. CHINNAPPA REDDY, JJ.]
J. Labour dispute-Changes mude by the employer in the existing scheme of c
promotion during the pendenc.'v of a reference before the Tribunal-Whether suclJ a
change contravened the provisions of section 33 (I) (a) of the Industrial Disputes
Act, 1947 giving rise to complaint will depend on the nexus of the changes made
and the nature of the reference pending before the Tribunal.

On May 13, 1972 the Reserve Bank of India, Bombay issued Administration
Circular No. 8 introducing a revised scheme for promotion of employees as staff D
officers Grade A. Feeling that the aforesaid Circular adversely affected
them, the stenographers filed a writ petition in the Andhra Pradesh High Court
chaHenging its validity, Their grievance was that by the said circular No. 8 they
were placed en-bloc below the clerks which made their chances of promotion illu-
sory. On March 5, 1973 the Andhra Pradesh High Court dismissed the writ peti-
tion, but made certain recommendations to avoid frustration and dissatisfaction
among the stenographers. In 1973 charters of demands were submitted to the E
Reserve Bank of India by the employees' associations. On January 23, 1976 the

.. Bank issued Administration Circular No. 5 n1odifying Circular No. 8 to remedy
the alleged adverse effect suffered by stenographers as a result of Circular No. 8.

On June 16, 1979, the Central Government in exercise of powers conferred
by section 7B of the Industrial Disputes Act, 1947 constituted a National Indus-
trial Tribunal with head-quarters at Bombay and referred to it for adjudication F
an industrial dispute existing between the Reserve Bank of India and their Class-
IJI workmen. The dispute as described in the Schedule to the order of refe_rence
related to "specific matters ........... pertaining to Class-111 workmen" enumerated
in the Schedule. The Schedule -listed 35 matters in all, item No. 12 of which is
described as ''promotion". During the pendency of the reference, on October
10, 1979 the Reserve Bank of India issued Administration Circular No. 6 introdu-
cing certain change in the scheme of promotion set out in circular No. 8 by rela- G
xing certain conditions of eligibility for the personal as~istants, stenographers,
tellers and the clerical staff. Feeling aggrieved, some. clerks (Grade I) who were
empanelled for promotion to the post of Staff Officer G!'ade A after passi.ng the
test, filed two complaints before the National Tribunal under section 33A of the
Industrial Dispute Act alleging (i) that as a result of Circular No. 6 many who
could n6t have been considered for promotion in preference to the complainants, H
had Circular No. 8 been in force, would now be entitled to a higher preference,
108 SUPREME COURT REPORTS [1982] ] S.C.R.

A and (ii) that the alterations made during the pendency of the reference before
the National Tribunal amounted to changing their conditions of service to their
prejudice in violation of section 33 (I) (a) of the Industrial Disputes Act inasmuch
as the-ir chances of promotion would recede. The National Tribunal by its
award dated September 3, 1980 disposed of these two complaints holding that
the Reserve Bank of India had changed to the p~ejudice of the complainants
their conditions of service by modifying the existing scheme of promotion during
B the pendency of a reference before the Tribunal and thereby contravened the
provisions of section 33 (1) (a). Hence the appeals by special leave.

AlJowing the appeals and dismissing the complaints, the Court

HELD : 1 : 1. The order of reference did not require the Tribunal to adjudicate
on all possible matters relating to promotion. The Tribunal should have defined
the area of the dispute referred to it for adjudication before proceeding to consider
whether the promotional scheme set out in Circular No. 6 could be said to be
connected with that dispute. (117 G-H]

1 : 2. Item No. 12 of the Schedule annexed to the order of reference is
described as ''promotion". Demand No. 19 in the Charter of Demands presented
by the All India Reserve Bank Employees Association mentions "promotional •
D avenuei;", but the matters specified under the head "promotional avenues" relate
to the creation of more promotional posts and the upgrading of certain posts.
Demand No. 19 does not thus relate to the promotional scheme in question.
Demand No. 27 of the Charter of Demands submitted by the All India Reserve
Bank Workers Organisation is described as "pr-0motional policy" and all that is
said in the charter of demands is that the matters "should be discussed and
finalised on the basis of prerequisites of promotional policy submitted in 1969".
E Demand No. 27 could, therefore, have no connection with the promotional
scheme set out in Circular No. 6 issued in 1979. [116 C-E]

1 : 3. Under section 10 (IA), the Central Government could refer to the •
National Tribunal an existing or an apprehended dispute; the order or reference
in this case shows that it was not an apprehended dispute but an
industrial dispute that "exists between the employers in relation to the Reserve
F Bank of India and their class Ill workmen in respect of the matters specified in
the schedule" annexed to the order which was referred to the Tribunal for
adjudication. As section 10 (JA) expressly says, any matter appearing to be
connected or relevant to the existing or apprehended dispute can also be referred
to the National Tribunal for adjudication, but obviously unless it is determined
what the dispute was that has been referred for adjudication, it is not possible to
say whether a particular matter is connected with it. [ 117 C-E]
G
2 : 1. What circular No. 6 did was to relax for stenographers and personal
assistants the conditions they had to satisfy to be able to sit for the test. It they
passed the test, they would get into the panel along with employees belonging to
the clerical cadre \\'ho also had passed the test. Vacancies in the posts of staff
officer Grade A are filled by recruiting employees from the panel. The panel is
H a perriianent one. Alterations of the conditions of the eligibility governing
employees belonging to a particular cadre can amount to changin& the conditions
of service of employees who belonged another cadre, assuming for the present
RESERVE BANK v. C.T. DJGHE 109

that the said conditions were conditions of service. The changes introduced in A·
respect of the stenographers and personal assistants may have an impact on the
' promotional prospects of employees fiom another cadre who are already in the
panel or even of those who were expecting to be included in the panel, but this
would not amount to changing their conditions of service. The conditions of
service of an employee cannot include an implied right to prevent the employer
from altering the conditions of service of other employees. In a given case such
alteration may be inequitable, and a way may be found in the Industrial Disputes B
Act to redress the grievance of the employees affected thereby. (118 B -F]

2 : 2. It was competent for the Bank to introduce a combined promotional
scheme for the clerical staff, stenographers, and personal assistants and the Bank
was not bound to wait until all employees belonging to the clerical cadre whose
names ·were already in the panel when Circular No. 6 was introduced
had been promoted as staff officers Grade A. There was no such c
assurance given by the Bank when it introduced Circular No. 8. The Bank did
not undertake that it would not take any step to change the conditions of the
stenographers and the personal assistants were required to satisfy to be able to
appear in the test until all the clerks already empanelled were promoted.
Circular No. 6 cannot therefore be assailed on the ground that it was introduced
when some employees belonging to the clerical grade whose names were already
in the panel remained to be promoted. [121 B-E] D

Being in the panel in any particular year does not ensure a fixed place in the
panel for an employee until he is promoted. The right the complainants now
claim is based on the change in the conditions of service of the stenographers
made to their detriment earlier. [121 E-F]
E
Remve Bank of India v. N.C. Paliwal (1977] I SCR 377, followed.

3. It is well settled that a rule which affects the promotion of a person
relates to his condition of service but this is not so if what is affected is a chance
of promotion only. Though a right to be considered for promotion is a condition
of service, mere chances or promotion are not and that a rule which merely
affects chances of promotion cannot be regarded as varying a condition of F
service. [121 G·H, 122 A, C-DJ

The fact that as a result of the changes made by Circular No. 6 the com·
plainants lost a few places in the panel affects their chances of promotion but
not the right to be considered for promotion. That being so, it cannot be said
that the alterations made by Circular No. 6 amount to changing the conditions of
service of the complainants; the grievance made by the complainants does not G
therefore appear to have any basis. 122-G-H, 123 A-BJ

Mohd. Shujat Ali and 01hers etc. v. Union of India & Ors. etc., [1975] I SCR
449; State of Mysore v.G.B. Purohit, C.A. 2281 of 1965 decided on 25·1-1967
(S.C.) unreported, applied.

CIVIL APPELLATE JU.IUSDICTION: Civil Appeals No. 2815 &
H
2816 of 1980.
110 SUPREME COURT REPORTS (1982] I S.C.R.

A Appeals by special leave from the Award dated the 3rd Septem-
ber, 1980 of the National Industrial Tribunal at Bombay in Comp-
laint No. NTB 2 and NTB 3 of 1980 arising out of Reference
No. NTB l of 1979.

WITH
B CIVIL APPEAL NO. 2607 of 1980

Appeal by special leave from the Award dated the 3rd Sept.
1980 passed by the National Industrial Tribunal, Bombay in Comp-
laints Nos. NTB 2 & 3 of 1980 in Reference No. NTB l of 1979.
c AND

CIVIL APPEAL NO. 3150 of 1980

Appeal by Special leave from the Award dated 3rd September,
1980 passed by the National Industrial Tribunal, Bombay in Comp-
D laints Nos. NTB 2 & 3 of 1980 in Reference No. NTB l of 1979.

F.S. Nariman R.A. Shroff; H.S. Parihar and Shradul S. Shroff;
for the Appellant in CAS 2815-16/80, for Respondent No. 2 in
CA. 2607/80 & for Respondent No. l in CA. 3150/80.

E C. N. Murthy and P. P. Mittal for Respondent No. in
CA. 2815-16/80.

M.K. Ramamurthy, P.S. Khera and S.K. Dawar, for RR 2-70 in
CAS. 2815-16/80, for Respondent No. 3 in CA 2607 /80 & for Res-
pondent Nos. 3 & 40-67 in CA. 3150/80.
F K.K. Venugopal, C.N. Murthy and P.P. Mitra/ 1980 for the
Appellants.
A.K. Sen, A.K. Gupta, Brij Bhushan, N.P. Mahendra and Miss
Renu Gupta, for the Appellants in CA. 3150/80.

G S.K. Bisaria for RR. 2-4 and 6-39 in CA. 3150/80.

The Judgment of the Court was delivered by

GUPTA, J. These are four appeals by special leave from an
Award of the National Industrial Tribunal, Bombay, made on
H September 3, 1980 disposing· of two complaints under section 33-A
of the Industrial Disputes Act, 1947 holding that the employer,
RESERVE BANK v. C.T. DIGHE (Gupta, J.) 111

Reserve Bank of India, Bombay had changed to the prejudice of the A
r
complainants their conditions of service by modifying the existing
scheme of promotion during the pendency of a reference before the
Tribunal and had thereby contravened the provisions of section 33
(I) (a) of the Act. Civil Appeals 2815 and 2816of1980 have been
preferred by the Reserve Bank of India, Bombay. In civil appeal
2607 of 1980 the appellants are some of the stenographers employed B
in the Bombay office of the Reserve Bank of India. The four appel-
lants in civil appeal 3150 of 1980 are also employees of the Reserve
Bank of India, Bombay, one of whom is a clerk grade I and the
other three are officiating as staff officers grade A. How the appel-
lants in Civil Appeals 2607 and 3150 are affected by the Award will
appear from the facts stated below. c
The facts leading to the making of the complaints under sec-
tion 33-A are as follows. On June 16, 1979 the Government of
India, Ministry of Labour, in exercise of powers conferred by section
7B of the Industrial Disputes Act, 1947 constituted a National
Industrial Tribunal with headquarters at Bombay and referred to it for D
adjudication an industrial dispute existing between the Reserve Bank
of India and their class III workmen. The dispute as described in
the schedule to the order of reference related to "specific matters ...
pertaining to class HI workmen" enumerated in the schedule. The
schedule listed 35 matters in all, item No. 12 of which is described
as 'Promotion'.
E

On May 13, 1972 appellant Reserve Bank of India, Bombay,
had issued Administration Circular No. 8 introducing a revised
scheme for promotion of employees as Staff Officers Grade A. This
Circular No. 8 prescribed as a condition for promotion passing a test
F
consisting of three papers on the following subjects : noting, draft-
ing, precis & essay writing, (ii) Reserve Bank of India Act, and (iii)
functions and working of the Reserve Bank of India. Candidates
with less than 15 years' service in class Ill cadre at the time of the
test and who had not passed in the subjects 'Practice and Law of
Banking' and 'Book-keeping and Accounts' in Part I of the Institute
of Bankers Examination were to appear and pass in an extra paper
G
divided into two parts on the aforesaid two subjects. Candidates
who had passed in either or both these subjects in part I of the
Institute of Bankers Examination were exempted from appearing in
the Corresponding part or both parts of this paper. The circular
further provided that an estimate of the vacancies anticipated to
H
occur it1 each office during a 'panel year' i. e. from September 1 to
112 SUPREME COURT REPORTS [1982] I s.c.R.

A August 31, was to be declared by the Bank in advance and the num-
ber of candidates in that office to be called for the test to fill the
vacancies in that office was not to exceed twice the number of such
vacancies. A candidate who had been unsuccessful in more than
one test was to be treated as a repeater and the number of such
repeaters sitting for a test would be in addition to the aforesaid
B number of candidates. An employee in the substantive rank of
teller, stenographer grade II, stenographer grade I or personal assis-
tant was eligible to appear in the test under this circular provided
he had put in a minimum period of 15 years' service in class III
cadre. A further condition relating to these three types of emplo-
yees, tellers, stenographers and personal assistants, was that they
c could be called to appear in the test only if a clerical candidate of
the same length of service found a place within twice the number in -
the combined seniority list. The said three types of employees were
required to pass both parts I and II of the Institute of Bankers
examination, or if they were graduates, in part I only. Those of
them who would pass the test were to be posted on the clerical desk
D for one year for acquiring experience and thereafter they were to be
absorbed in the next list to be prepared on the result of the test
succeeding the one in which they had passed. They were to rank in
seniority below the juniormost successful candidate in the test in
which they qualified. A further requirement was that the steno-
graphe,rs and personal assistants should have worked for at least 5
E years as such; this condition was thought necessary because it was
possible that some of them may have been employed as typists for
some time.
..
Feeling that the aforesaid circular No. 8 adversely affected
F them, the Stenographers filed a writ petition in the Andhra Pradesh
High Court challenging the validity of the circular. The main
-
grievance seems to have been that by the said Circular No. 8 they
were placed en bloc below the clerks which made the chances of
promotion so far as they were concerned illusory. The Andhra
Pradesh High Court dismissed the writ petition with the following
G observations :

" .. _,,_the clerks and the stenographers who have passed
at the qualifying written examination do not acquire
any right to promotion by merely being put in a
H panel. As observed by the Supreme Court in the case
cited in Gangaram v. Union of India, A.I.R. 1970 S.C. 2178,
the effect of passing at the qualifying examination is only
RESERVE BANK v. C.T. DIGHE (Gupta, J.) 113

to remove a hurdle in their way for further promotions to A
the posts of staff officers, grade II. In the matter of actual
f
promotion there is nothing illegal in the department promo-
ting the clerks as a group in the first instance and
postponing the promotions of the stenographers to a later
stage ...... It is urged on behalf of the petitioners that
previous to the new scheme, the steuographers were placed B
at the top of the clerks en bloc and that they have now
been brought to the bottom.

This argument is based upon a misconception that the
panel creates any rights. Hence nothing turns upou the
.... place fixed in the panel''. c
The High Court however made certain recommendations "to avoid
frustration and dissatisfaction among the stenographers". It was
suggested that "the Reserve Bank may frame suitable rules for fixing
the seniority among the staff officers, grade II, on some rational
y
and equitable principles, i.e., by length of service or marks obtained D
at the qualifying examination or by adopting a reasonable ratio
between the two classes, so that the chances of further promotions
for the stenographers may not be illusory". This judgment was
delivered on March 5, 1973. In the months of March and November,
1973 charters of demand were submitted respectively by the All
India Reserve Bank Workers Organisation and the All India Reserve E
Bank Employees Association. The latter Association is the one
which is recognised by the Bank. On January 23, 1976 by Administra-
tion Circular No. 5 the Bank modified Ci'fcular No. 8 to remedy the
alleged adverse effect suffered by the stenographers as a result of
Circular No. 8. On June 16, 1979 the order referring to the National
Tribunal at Bombay the dispute between the Bank and the class Ill F
workmen was made. The All India Reserve Bank Employees
Association filed a writ petition in the Calcutta High Court in July
1979 chalJenging this order of reference. The High Court at Calcutta
issued an injunction restraining the National Tribunal from adjudica-
ting on the reference until the writ petition was disposed of. A
settlement was thereafter reached between the Bank and the All G
India Reserve Bank Employees Association and the injunction was
vacated. On November 21, 1979 the Bank and the Association
applied to the Tribunal jointly for making an award on the basis of
the settlement.
H
In the meantime on October, JO, 1979 the impugned Circular
No. 6 was issued. The following changes were introduced by Circular
114 SUPREME COURT REPORTS [1982] l S.C.R.

A No. 6 in the scheme of promotion set out in Circular No. 8 relating
to personal assistants, stenographers, tellers and the clerical staff:

(J) The eligibility period so far as these three t) pes are
concerned was reduced from l 5 years to 10 years
service.
B
(2) The condition requirmg stenographers and personal
assistants to put in 5 years service as such was
dispensed with.

(3) Their period of training on clerical desk was reduced
c from 1 year to six months.

(4) They were to be fitted according to the length of
-
their service in the panel for the year in which they
passed the test and not in the next panel as before.
D
(5) Those who are graduates among these three groups,
even if they had not passed in all the subjects in
part I of Indian Institute of Bankers examination,
would be eligible for exemption from appearing in
the additional paper on 'Practice and Law of Banking'
and 'Book-keeping and accounts' if they had passed
E in these two subjects in the said examination.

(6) This benefit of exemption which was available to the
clerical staff of 15 years' standing previously was
extended to those of them who had put in only JO
..
years service.
F
The two complaints (complaint Nos. 2 and 3 of 1980) on
which the impugned award has been made were filed respectively
on July 22, 1980 and August 1, 1980. The complainants who were
clerks grade I had passed the test in the panel year 1978-79 and
were empanelled for promotion to the post of staff officer grade A.
G
The grievance made in the two complaints is that the result of the
changes introduced in the promotional scheme by Circular No. 6
relaxing for tte stenographers and personal assistants the conditions
they "ere required to satisfy to be able to sit for the test and
permitting them to be fitted according to the length of their service
in the panel for the year in which they had passed the test, was that
H
many who could not have been considered for promotion in pre-
ference to the complainants had circular No. 8 been in force, would
RESERVE BANK v. C.T. DIGHE (Gupta, J.) 115

now be entitled to a higher preference. According to the com- A
f plainants the alterations made during the pendency of the reference
before the National Tribunal amonnted to changing their conditions
of service to their prejudice in violation of section 33 (I) (a) of the
Industrial Disputes Act. The complainants in complaint No. 2 of
!980 stated that if the alterations introduced by Circular No. 6 were
allowed to continue "the chances of promotion would become bleak
for them' ; complainants in complaint No. 3 of 1980 also epxressed
a similar apprehension that as a result of the changes introduced
"their chances of promotion would recede further and further".

- The appellants in civil appeal 2607 of 1980 who are steno-
graphers acquired eligibility to appear in the qualifying test because
of the modifications introduced in the existing scheme by Circular
No. 6. All the four appellants in civil appeal 3 l 5J of 1980 are from
c
clerical cadre, three of whom are officiating as staff olllcers grade A;
they are also beneficiaries of the relaxations made in the existing
y scheme by circular No. 6. The appellants in both these appeals are
obviously affected by the Award allowing the complaints and D
declaring circular No. 6 as invalid.

Section 33 (I) (a) prohibits the employer during the pendency
of a proceeding in respect of an industrial dispute before a Labour
Court or Tribunal or National Tribunal from altering to the prejudice
of the workmen concerned in the dispute their existing conditions E
of service. Sub-section (2) of section 33, however, permits the
employer to alter the conditions of service in regard to any matter
not connected with the dispute in accordance with the standing
orders applicable to the workman concerned or in accordance with

- the terms of the contract between the employer and the workman.
The right given to the employer under sub-section (2) is subject to
the condition laid down in sub-section (3) of section 33 that the
F

right can be exercised only with the express permission in writing of
the authority before which the proceeding is pending. Section 33-A
of the Act provides that where an employer contravenes the provisions
of section 33 during the pendency of proceedings before a Labour
Court, Tribunal or National Tribunal any employee aggrieved by such G
contravention may make complaint in writing to such Labour Court,
Tribunal or National Tribunal, and on receipt of such complaint the
Labour Court, Tribunal or National Tribunal shall adjudicate upon
the complaint as if it were a dispute referred to it or pending before
it in accordance with the provisions of the Act and submit its award
to the appropriate government. Section 31 (1) of the Act provides
for penalty for contravention of the provisions of section 33; an
I I6 SUPREME COURT REPORTS (1982] I .s.c.R

A employer found guilty of such contravention is punishable with
imprisonment for a term which may extend to six months, or with
fine which may extend to one thousand rupees or with both.

Jn· this case circular No. 6 was not introduced with the per-
mission of the National Tribunal, Bombay, before which the reference
B was pending; to determine whether thereby the provisions of section
33 have been contravened, the question that requires to be answered
is whether the alterations introduced by Circular No. 6 are connected
with the dispute pending in reference before the National Tribunal.
This again leads to the question, what was the dispute that was
G referred to the National Tribunal for adjudiction? According to
the complainants their promotional prospects were adversely affected
by the impugned circular. Item 12 of the schedule annexed to the
-
order of reference is described as 'Promotion'. Demand No. 19 in
the charter of demands presented by the All India Reserve Bank
Employees Association mentions 'Promotional avenues' but, as the
National Tribunal itself noticed, the matters specified under the head
D 'promotional avenues' relate to the creation of more promotional
posts and the upgrading of certain posts. Demand No. 19 does not
thus relate to the promotional scheme in question. The impugned
award also refers to demand No. 27 of the charter of demands
submitted by the All India Reserve Bank Workers Organisation.
Demand No. 27 is described as 'Promotional Policy' and all that is
E said in the charter of demands under this head is that the matter
"should be discussed and finalised on the basis of pre-requisites of
promotional policy submitted in 1969". It is not therefore clear
how demand No. 27 could have a connection with the promotional
scheme set out in circular No. 6 issued in 1979. The award does
F
not refer to the statements of claim filed on behalf of the workmen;
it is likely that because of the order of injunction issued by the -
Calcutta High Court to which we have earlier referred, the unions
representing the workmen were not able to file their statements of
claim before the National Tribunal disposed of the complaints
under section 33A. The Tribunal however held: "Industrial Disputes
Act contemplates reference in wider terms than the actual item in
G dispute. Section 10 (IA) of the Industrial Disputes Act which
provides for the appointment of the National Tribunal shows that
the Central Government could form its opinion not only on the
existing dispute but also on the apprehended dispute and the order
of reference ran cover not only the dispute but any matter appearing
H to be connected with or relevant to the dispute. In view of it, it
cannot be said that when the item 'Promotion' has been referred to
RESERVE BANK v. C.T. D!GHE (Gupta, J.) 117

the Tribunal, it has the limitation of remaining in the frame work of A
the demand ...... the Tribunal has the jurisdiction to decide on the
natural meaning of the words used in the item of reference ...... The
item seems to have been deliberately stated in tenns ..... .it looks to
be referring to the process involving promotions." Having said so
the Tribunal added: "The extent of such process will have to be
carefully defined because there is no dispute with the axiomatic B
principle that promotion is a matter in the discretion of the
employer".

It is difficult to follow the steps of reasoning in the extract

- from the award quoted above; it is also not clear how the view
expressed therein helps in ascertaining what was the dispute referred
to the Tribunal for adjudication. No one can deny that under
section 10 (IA) the Central Government could refer to the National
c
Tribunal an existing or an apprehended dispute; the order or refe-
rence in this case however shows that it was not an apprehended
dispute but an industrial dispute that "exists between the employers
in relation to the Reserve Bank of India and their class III workmen D
in respect of the matters specified in the schedule" annexed to the
order which was referred to the Tribunal for adjudication. As
section JO ( l A) expressely says, any matter appearing to be
connected or relevant to the existing or apprehended dispute can
also be referred to the National Tribunal for adjudication, but
obviously unless it is determined what the dispute was that has been E
referred for adjucation, it is not possible to say whether a particular
matter is connected with it. The Tribunal thought it unjust to res-
trict the meaning of the word 'promotion' to what was suggested by
the charters of demand and decided to give it its "natural meaning"
which according to the Tribunal includes "the process involving
promotion". The question however remains how did the Tribunal F
satisfy itself that when by the order of reference a specific matter,
namely, 'promotion' was referred to it for adjudication, it was
implied that the word should be given a "natural meaning" in the
sense in which the Tribunal understood it. We do not think it
reasonable to suppose that the order of reference required the Tri-
bunal to adjudicate on all possible matters relating to promotion. G
We therefore accept the contention of the appellants that the Tri-
bunal should have defined the area of the dispute referred to it for
adjudication before proceeding to consider whether the promotional
scheme set out in Circular No. 6 could be said to be connected with
that dispute. H
-
118 SUPREME COURT REPORTS [1982] I s.c.R.

A Having reached this conclusion we should have sent the matter
back to the National Tribunal for ascertaining the scope of the dis-
pute referred to it for adjudication, if the assumption were correct
that the alterations in the promotional scheme introduced by Cir-
cular No. 6 amounted to changing the conditions of service of the
complainants; if not, remitting the matter to the Tribunal will be
B unnecessary. What Circular No. 6 did was to relax for stenogra-
graphers and personal assistants the conditions they had to satisfy
to be able to sit for the test. If they passed the test, they would get
into the penal along with employees belonging to the clerical cadre
who also had passed the test. Vacancies in the post of staff officer

c
Grade A are filled by recruiting employees from the panel. The
panel, it appears from the award, is a permanent one. How those
who come out successful in the test are to be fitted in the panel has
been stated earlier. The panel is made up of employees belonging to
-
different cadres. It is difficult to see how alteration of the condi-
tions of eligibility governing employees belonging to a particular
cadre can amount to changing the conditions of service of emplo-
D yees who belonged to another cadre, assuming for the present that
the said conditions were conditions of service. The changes intro-
duced in respect of the stenographers and personal assistants may
have an impact on the promotional prospects of employees from
another cadre who are already in the panel or even of those who
were expecting to be included in the panel, but it is not possible to
E agree that this would amount to changing their conditions of service.
It is difficult to think of the conditions of service of an employee as
including an implied right to prevent the employer from altering the
conditions of service of other employees. In a given case such
alteration may be inequitable, and a way may be found in the Indus-
F
trial Disputes Act to redress the grievance of the employees affected
thereby, but in this case the question is whether if amount
-
to altering the condition of service of the complainants. In Reserve
Bank of India v. N.C. Pa/iwal (') this Court upheld the validity of
the combined seniority scheme introduced by the Reserve Bank for
the clerical staff. The first paragraph of the head note to the
report summarizes the facts on which challenge to the scheme was
G
based:

"At every centre of the Reserve Bank of India there
were five departments, the General Department and
four Specialised Departments. There was a separate
H
(I) [1977] 1 S.CR. 377.
RESERVE BANK v. C.T. DIGHE (Gupta, J.) 119

seniority list for the employees in each Department at A
I each centre and confirmation and promotion of emplo·
yees was only in the vacancies arising within their
Department at each centre. There were two grades
of clerks in each Department, namely, Grade I and
Grade II. The pay scales of Grade I and Grade II
clerks in all the departments were the same and their B
conditions of service were also identical. There was
automatic promotion from Grade II to Grade I and
when a clerk from Grade II was promoted to officiate
in Grade I, he got an additional officiating allowance

- of Rs. 25 / • per month. There were also several cate-
gories of non-clerical posts in the General as well as
Specialised Departments, and their pay scale was the
same as that of Grade II clerks. In view of expanding
c

activities ia the Specialised Departments, there were
greater opportunities for confirmation and promotion
for employees in the Specialised Departments than in
D
the General Deparment. This gave rise to dissa·
tisfaction amongst employees in the General Depart·
ment and they claimed equal opportunities by having a
combined seniority list for all the clerks for confirma·
tion and promotion. The Reserve Bank, sought to justify
the separate seniority lists on the ground that the work
E
in each department was of a special nature and inter·
transferability was undesirable and hard to achieve.
As a result of the recommendation of the National
Tribunal. however, the Reserve Bank introduced the
Optee Scheme of 1965 as a first step towards equaliza-

- tion of opportunities. Under the scheme, the option
to go over to the Specialised Departments was con·
F
fined to confirmed Grade II clerks and officiating
Grade I clerks in the General Department. If he exer
cised the option, he was eligible to be selected. If
he was selected. he would be entitled to be absorbed
only as Grade II clerk in one of the Specialised Depart· G
ments with the result that if he was an officiating
Grade I clerk in the General Department at the time of
the exercise of the option, he would lose the benefit
of officiation in Gracie I in the General Department as
also the monetary benefit of Rs. 25/-. His seniority H
in the cadre of Grade II clerks in the Specialised
Department in which he was absorbed would be deter-
120 SUPREME COURT REPORTS ( 1982] I S.C.R.

A mined on the basis of his length of service calculated
from the date of his recruitment if he was a graduate
when he joined service, or from the date of his gradua-
tion if he became a graduate whilst in service."

It was argued in Paliwal' s case that the combined list was
B invalid because it discriminated against the petitioners vis-a-vis
other grade II clerks who had opted under the Optee Scheme of 1965.
This Court held :

"The contention of the petitioners was that some of

-
the Grade II clerks who had opted under the Optee
c Scheme of 1965 were promoted as Grade I Clerks,
while the petitioners continued as Grade II Clerks and
before their turn for promotion could arrive, the Com·
bined Seniority Scheme was brought into force and
that prejudicially affected their promotional oppor-
tunities and thus brought about unjust discrimination
D between persons belonging to the same class. This
contention has no force and must be rejected. We
have already discussed and shown that it was com-
petent to the Reserve Bank to introduce the Com-
bined Seniority Seheme for the purpose of integrating
the clerical staff in all the departments and the
E Reserve Bank was not bound to wait until all the
transferee Grade II Clerks under the Optee Scheme
of 1965 were promoted as Grade I Clerks in their res-
pective Specialised Departments. There was no such
assurance given by the Reserve Bank when it intro-
duced the Optee Scheme of 1965. What it did was
F merely to equalise the opportunities of Grade II Clerks
in the General Departments with those of Grade II
-
Clerks in the Specialised Departments. The Reserve
Bank did not undertake that it will not take any steps
for bringing about total integration of the Clerical
services until all the transferee Grade II Clerks were
G promoted. The Reserve Bank was entitled to introduce
the Combined Seniority Scheme at any time it thought
fit and the validity of the Combined Seniority Scheme
cannot be assailed on the ground that it was introduced
at a time when some of the transferee Grade II Clerks
H still remained to be promoted and was discriminatory
RESERVE BANK v. C.T. D!GHE (Gupta, J.) 121

aginst them. It may be that some transferee Grade II A
Clerks had already obtained promotion as Grade I
Clerks by the time the Combined Seniority Scheme
was introduced, while others like the petitioners had
uot. But that cannot be helped. It is all part of the
incidence of service and in law, no grievance can be
made against it." B

>
These observations in Paliwal' s case are equally applicable to the
case before us. It was competent for the Bank to introduce a com-
bined promotional scheme for the clerical staff, stenographers,
- and personal assistants and the Bank was not bound to wait until
all employees belonging to the clerical cadre whose names were
already in the panel when circular No. 6 was introduced had been
c
promoted as staff officers Grade A. There was no such assurance
given by the Bank when it introduced circular No. 8 on which the
complainants rely. The Bank did not undertake that it would not
take any step to change the conditions the stenographers and the D
personal assistants were required to satisfy to be able to appear
in the test until all the clerks already empanelled were promoted.
Circular No. 6 cannot therefore be assailed on the ground that it
was introduced when some employees beloging to the clerical grade
whose names were al ready in the panel remained to be promoted.
That cannot be helped, and, as observed in Paliwa/'s case, "it is all E
part of the incidence of service and in law no grievance can be made
against it". Being in the panel in any particular year does not
' ensure a fixed place in the panel for an employee until he is pro-
moted. It may be recalled that in I 964 and again by circular
No. 8 in 1972 the stenographers conditions of service were altered
to their prejudice.. The right the complainants now claim is based F
on the change in the conditions of service of the stenographers made
to their detriment earlier.

The grievance of the complainants really relates to the changes
affecting their chances of promotion. We have earlier quoted
from the charters of demand to show that the complainants them- G
selves looked upon the alterations made by circular No. 6 as
affecting their "chances of promotion". It is well settled that a
rule which affects the promotion of a person relates to his condi-
tion of service but this is not so if what is affected is a chance of
H
121 SUPREME COURT REPORTS [I 982] I s.c.R.

A promotion only. This Court in Mohd. Shujat Ali and others etc.
v. Union of India & Ors. etc.(1) held :

"But when we speak of a right to be considered for
promotion, we must not confuse it with mere chance
of promotion-the latter would certainly not be a con·
B dition of service ... that though a right to be consi-
dered for promotion is a condition of service, mere
chances of promotion are not."

In Shujai Ali's case the respondents went down in seniority
and it was urged that this affected their chances of promotion. In
c Shujat Ali reference was made to earlier decision of this Court,
State of Mysore v. G.B. Purahit( 2) where also it was held that though
a right to be considered for promotion is a condition of service,
mere chances of promotion are not and that a rule which merely
affects chances of promotion cannot be regarded as varying a con-
dition of service. The facts of Purohit' s case and what was decided
D in that case have been summarized in Shujat Ali's case as
follows:

"What happened in State of Mysore v. G.B. Purohitwas
that the districtwise seniority of Sanitary Inspectors
was changed to Statewise seniority and as a result of
E this change, the respondents went down in seniority
and became very junior. This, it was urged, affected
their chances of promotion which were protected ...
This contention was negatived and Wanchoo J., as
he then was, speaking on behalf of this Court
observed : It is said on behalf of the respondents
F that as their chances of promotion have been affected
their conditions of service have been changed to their
disadvantage. We see no force in this argument
because chances of promotion are not conditions of
service."
G
The fact that as a result of the changes made by circular No. 6
the complainants lost a few places in the panel affects their chances
of promotion but not the right to be considered for promotion.

(I) [1975] 1 S.C.R. 449.
H (2) C.A.2281of1965 decided on 15.1.1967.
RESERVE BANK v. C.T. DIGHE (Gupta, J.) 123

That being so, it cannot be said that the alterations made by cir- A
cular No. 6 amount to changing the conditions of service of the
complainants; the grievance made by the complainants does not
therefore appear to have any basis. The appeals are accordingly
allowed and the complaints dismissed, in the circumstances of the
case the parties will bear their own costs.
B
V.D.K . Appeals ailowed.

•