Holding

Past services of redeployed staff cannot be counted for seniority or experience in the new organisation.

Summary

The respondents, originally employed by the Rehabilitation and Reclamation Organisation, were declared surplus and redeployed to All India Radio under the Central Civil Services (Redeployment of Surplus Staff) Rules, 1990. Their past service and experience in the parent organisation were not taken into account for seniority or promotion in the new post, prompting them to file Original Applications before the Central Administrative Tribunal (CAT). The CAT allowed the respondents’ claim, holding that past service should count for seniority and experience, which the Union of India appealed. The Supreme Court examined the Rules, the Government’s revised scheme and Paragraph 11.1 of the scheme, which expressly state that past service prior to redeployment does not count towards seniority in the new organisation. Consequently, the Court held that the past service of redeployed staff cannot be counted for seniority or as experience for promotion under the applicable recruitment rules. The appeals were allowed, setting aside the CAT orders and dismissing the Original Applications.

Issues considered

Whether the past service of a surplus employee redeployed under the Central Civil Services (Redeployment of Surplus Staff) Rules, 1990 can be counted for seniority in the new organisation.
Whether such past service can be treated as experience for the purpose of promotion under the All India Radio (Class III posts) Recruitment Rules, 1964.

Legislation cited

Constitution of Indias. Article 309 (proviso)

Subjects

service lawredeploymentsenioritypromotionsurplus staffCentral Administrative Tribunalpast servicecivil service rules

Judgment

UNION OF INDIA AND ORS .. A
v.
K. SAVITRI AND ORS.

MARCH 4, 1998
B
[S. SAGHIR AHMAD AND G.B. PATTANAIK, JJ.]

~

Service Law :

Central Civil Services (Redeployment of Surplus StajJ) Rules, 1990/All c
India Radio (Class Ill posts) Recruitment Rules, 1964-Rules 2(f), 2(g), 9
and Govt. instructions-Para 11.1-Employees-Rendered surplus-Re-
deployed-Past service in parent organisation-Not taken into account for
' the purpose of seniority and promotion-Held, the past service of the
redeployed staff cannot be counted for seniority in the new organisation.
D
The respondents were initially employed with the Rehabilitation and
"'" Reclamation OrganisatioJL As they became ~urplus in the parent organisation,
they were appointed in the All India Radio. The past service and experience
of the repondents were not taken into account for promotion in the new
organisation. The respondents preferred applications before the Central E
Administrative Tribunal, which allowed the claim. The review applications of
the Union of India were dismissed. Hence the present appeals by the Union
of India.

The contention of the appellant-Union of India was that under the Rules
an employee after redeployment was not entitled to take the benefit of his F
1 past service rendered prior to redeployment either for the purposes of seniority
or even as experience for promotion in the redeployed organisation in view
of the specific provisions to that effect in the Rules itself.

Allowing the appeal, this Court
G
HELD : 1.1. The past services of the redeployed staff cannot be counted
for seniority in the new organisation. The Tribunal, therefore, committed
serious error in directing that the past service of the employees should be
counted for granting them the benefit of seniority and experience for
promotion in the All India Radio. (141-F] H
137
138 SUPREME COURT REPORTS [1998] 2 S.C.R.

A 1.2. The senice conditions of the redeployed em11Ioyees are governed
by the provisions of the Central Civil Services (Redeployment of Surplus
staff) Rules 1990 as well as the instructions issued hy the Government of
India from time to time. In exercise of the power under Rule 9 of the Rules,
Government of India has issued the revised scheme indicating the manner
B in which and the extent to which surplus staff on being redeployed under the
Rules can be given the benefit of their past services. Paragraph 11 of the
...
revised Scheme deals with the question of benefit of past senice after
redeployment. Para 11.1 clearly stipulates that the past service rendered
prior to redeployment should not count towards seniority in the new
organisation. I141-C)
c 2. Under Recruitment Rules for various posts in the All India Radia
called All India Radio (Class III po~1s) Recruitment Rules, 1964 as amended
from time to time, the.post of Head Clerk is filled up by promotion to the
extent of 50% from amongst the Oerk Grade WCierk Grade I/ Stenographer
with a minimum of five years of service in the grades on the basis of a
D qualifying departmental examination and the criteria for promotion is
seniority-cum-fitness. Thus, since the past senice of redeployed ~11rplus
employees cannot be counted for seniority in the new organisation, equally
the pa.tj experience also would not count as the so-called past senice rendered
will not be senice in the grade. Similarly for promotion to Clerk Grade I
E which is made on the basis of seniority-cum-fitness from amongst the Clerks
Grade II, five years of service in the grade is required for being considered
for promotion. Obviously, therefore an employee should have five years of
experience in Clerk Grade II of the All India Radio after being redeployed
under the Rules in order to be eligible for being considered for promotion.
(141-G-H; 142-A-B)
F
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 6201-06 of
1995.

From the Judgment and Order dated 27.5.94 of the Central Administrative
Tribunal Cuttack in 0.A. Nos. 160-161and163of1993.
G
N. Goswami, S.K. Dwivedi, Ashok K. Srivastava and B.K. Prasad for the
Appellants.

The Judgement of the Court was delivered by

H PATTANAIK, J. These appeals are directed against the orders of the
U.0.1. v. K. SA VTTRI [PATTANAIK. J.] 139
Central Administrative Tribunal, Cuttack Bench, dated 27.5.1994 and 27.10.1994 A
passed in Original Applicati~n Nos. 160, 161 and 163of1993. It may be stated
that the Union of India preferred applications for review but the Tribunal
dismissed those Review Applications by order dated 27 .10.1994 holding that
there is no error apparent on the face of the record.

The question for consideration in these appeals in whether surplus B
employees having been rendered surplus in the parent department, on being
redepioyed under the provisions of Central Civil Services (Redeployment of
Surplus Staff) Rules, 1990 (hereinafter referred to as 'the Rules') can claim the
benefit of the counting of past services rendered by them for the purpose of
seniority or experience in the redeployed organisation. c
The brief facts are the respondents were the employees in the office of
the Rehabilitation and Reclamation Organisation having joined the said
organisation in February 1987. They became surplus in the parent organisation
and thereafter under the provisions of the Rules were appointed in the All
India Radio on different dates. In drawing up the seniority list of the employees D
in the All India Radio as their past services were not taken into account and
their experience in the parent organisation was not taken as the requisite
experience required for promotion in the All India Radio, they approached the
Central Administrative Tribunal by filing different OAs. The Administrative
Tribunal having allowed those OAs and having held that the past services E
rendered in the parent organisation would count for the purpose of seniority
as well as experience the Union of India has come up in appeals.

Though the respondents have been duly served with the notices but
none of them have entered appearance. But some of the respondents have
sent their submissions to this Court which are on record and we have, F
therefore, perused those submissions.

Mr. N. Goswami, the learned senior counsel appearing for the appellant
- Union of India submitted that tmder the Rules an employee after redeployed
is not entitkd to take the benefit of his past services rendered prior to G
redeployment either for the purposes ..of seniority or even as experience for
promotion in the redeployed organisation in view of the specific provisions
to that effect in the Rules itself. The Tribunal, therefore, committed serious
error in directing that the past services should be taken into account. We fmd
considerable force in the aforesaid contentit>M. The President of India made
the Rules in exercise of powers conferred by the proviso to Article 309 of the H
140 SUPREME COURT REPORTS [1998] 2 S.C.R.

A Constitution for regulating the redeployment and readjustment of surplus
staff against vacancies in the Central civil Services and Posts. The expression
'redeployment' has been defined in Rule 2(f), thus:

"2(f) 'Redeployment' meaNs the appointment of a surplus employee
against a vacancy in a Central Civil Service or post in accordance
B with these rules,"

The expression 'surplus staff and 'surplus employee' have
been defined in Rule 2(g) thus:

"2(g) 'Surplus staff and 'surplus employee or employees' means
the Central Civil Servants (other than those employed on ad hoc,
c casual, work-charged or contract basis) who-
(a) are permanent, or, if temporary, have rendered not less than five
years' regular continuotrS service; and
(b) have been rendered surplus along with their posts from the
D Ministries, Departments, Offices of the Government of India, as
a result of-
(l) administrative and financial reforms, including inter alia,
restructuring of an organisation, zero base budgeting,
transfer of an activity to a State Government, Public Sector
Undertaking or other autonomous organisation,
E
discontinuation of an on-going activity and introduction of
changes in technology; or

(2) studies of work measurement undertaken by the Staff
Inspection Unit of the Ministry of Finance or any other
body set up by the Central Government or the Ministry/
F Department concerned; or

(3) abolition or winding· up either in whole or in part of an
organisation of the Central Government,
I
Rule 9 provides that the fixation of seniority and pay of the surplus
G employee and counting of his previous service for various other purposes in
the new post to which he is appointed on redeployment under the Rules shall
be regulated in accordance with the instructions issued from time to time by
the Government of India in this behalf. The provisions of Rule 9 is extracted
hereinbelow in extenso:

H 9. Fixation of pay and seniority, counting of previous service for
U.0.1. v. K. SAVITRI [PATTANAIK, J.] 141
various other purposes and carrying over of lien/classification- The A
fixation of seniority and pay of the surplus employee and counting of
his previous service for various other purposes and carrying over of
lien/classification in the new post to which he is appointed on
redeployment under these rules shall be regulated in accordance with
the instructions issued from time to time by the Government of India B
in thi~ behalf.

~ In exercise of the power under Rule 9 of the Rules, Government of India
has issued the revised scheme indicating the manner in which and the extent
to which surplus staff on being redeployed under the Rules can be given the
benefit of their past services. Paragraph 11 of the revised scheme deals with C
the question of benefit of past service after redeployment. Para 11.1 clearly
stipulates that the past services rendered prior to redeployment should not
count towards seniority in the new organisation. Para 11.1 is extracted
hereinbelow in extenso:

I I.I No change is contemplated in the present policy that the past D
services rendered prior to redeployment should not count towards
seniority in the new organisation/new post which a surplus
employee joins after he is redeployed. The same rule will also
have to be applied in the case of those readjusted after
redeployment.
E
The service conditions of the redeployed employees under the Rules
being governed by the provisions in the Rules as well as the instructions
issued· from the Government of India from time to time and-in view of the· clear
unambiguous language in para 11.1 of the instructio_ns referred to above the
conclusion is irresistible that the past services of the redeployed staff cannot
be counted for seniority in the new organisation. The Tribunal, therefore, F
committed serious error in ·directing that the past services would be counted
for the seniority of the employees in the All India Radio.

Coming now to the question whether the said past services can be
counted as experience for promotion, it appears that under Recruitment Rules G
for various posts in the All India Radio called All India Radio (Class III Posts)
Recruitment Rules, 1964 (hereinafter referred to as 'the Recruitment Rules) as
amended from time to time the post of Head Clerk is filled up by promotion
to the extent of 50% from amongst the Clerk Grade H/Clerk Grade I/Stenographer
with a minimum of five years of service in the grades on the basis of a
qualifying departmental examination and the criteria for promotion is seniority- H
142 SUPREME COURT REPORTS [1998) 2 S.C.R.

A cum-fitness. Jn that view of the matter, since the past services of redeployed
surplus employee cannot be counted for his seniority in the new organisation, (
equally the past experience also would not count as the so-called past services
rendered will not be service in the grade. Similarly for promotion to Clerk
Grade I which is made on the basis of seniority-cum-fitness from amongst the
Clerks Grade II five years of service in the grade is required for being
B considered for promotion. Obviously, therefore, an employee should have five
!"
years of experience in Clerk Grade II of the All India Radio after being
~
redeployed under the Rules in order to be eligible for ~eing consi!lered for
promotion. The. Tribunal, therefore, was wholly in error in directing that the
past services of the employees should be counted for granting them the
c benefit of seniority and experience for promotion in the All India Radio. In
the aforesaid premises, the impugned orders of the Central Administrative
Tribunal, Cuttack Bench, in Original Application Nos. 160, 161 and 163 of 1993
are set aside and those OAs are dismissed and these appeals are allowed but ...
in the circumstances there will be on order as to costs.

D S.V.K.I. Appeals allowed.
....