Holding

Paragraph 1 of the Time Bound Promotion Scheme requires only sixteen years of service in the grade, not necessarily regular service; therefore, the respondent completed the requisite period and is entitled to the benefit of placement in the next higher grade.

Issues considered

Whether paragraph 1 of the 1983 Time Bound Promotion Scheme requires sixteen years of *regular* service or merely sixteen years of service in the grade for eligibility to the next higher grade.
Whether the respondent’s service as a Warrant Officer in the Regular Army from 30 September 1983 counts towards the sixteen‑year service requirement under the scheme.

Subjects

service lawtime bound promotionregular servicearmy postal servicespostal assistantpromotion eligibilityseniorityadministrative law

Judgment

A UNION OF INDIA AND ORS.
V.

M. MATH IV ANAN

JUNE 9, 2006

B [ARlJIT PASAYAT AND C.K. THAKKER, JJ.]

Service law:

C Army Postal Services-Time Bound Promotion Scheme-Paragraph / -
An employee entitled to the benefit under Paragraph I on mere completion of
16 years of service-It is only in Paragraph 2 onwards, that requirement is
of regular service.

Respondent was enrolled in Reserve Training Pool as Postal Assistant
D in the year 1981. In 1983, he volunteered for enrollment in Army Postal
Services. In September, I983, while he was working in Reserve Training
Pool as Postal Assistant, he was asked by the Superintendent of Post
Offices, Cuddalore Division to appear before the authorities for selection
in Army Postal Services. Accordingly, he appeared and was selected as
Warrant Officer witb effect from September 30, 1983. By an order dated
E October 20, 1983 tile respondent was appointed as Postal Assistant in
Cuddalore Division with effect from September 30, 1983. After bis
enrolment in the Army Postal Services, an order was passed by Hon'ble
the President of India appointing him on the establishment of Regular
Army with effect from September 30, 1983.
F
A Time Bound Promotion Scheme was formulated by the authorities.
Respondent hzd shown his willingness for being governed by the said
scheme. The respondent was appointed as Postal Assistant on 'regular'
basis from July 18, 1989. He was transferred to Cuddalore Division and
joined there on August 4J, 1991. In 1999, the respondent made an
G application to the Superintendent of Post Office, Cuddalore Division for
granting benefit of Time Bound Promotion Scheme as he had completed
sixteen years considering the starting point of September 30, 1983.

His name was not considered for Time Bound Promotion Scheme
H on the ground that he had not completed 16 years of service. He appealed
30
U.0.1. v. M. MA THIVANAN 31

before the Superintendent of Post Offices which was dismissed. A
Aggrieved respondent filed application before the Administrative
Tribunal which was allowed and affirmed by High Court. Hence, the
present appeal.

Dismissing the appeal, the Court B
HELD: 1. The respondent had completed sixteen years of service in
1999; he would be entitled to the benefit of paragraph I of Time Bound
Promotion Scheme and the action of the authorities in not granting the
said benefit was illegal and contrary to law. [39-E[
c
2.1. Paragraph I of the Time Bound Promotion Scheme makes it
clear that so far as placing of an officer in the 'next higher grade' is
concerned, what is relevant and material is that such official belonging to
basic grades in Group 'C' and 'D' must have completed "sixteen years of
service in that Grade". The said paragraph, no where uses the connotation D
'regular' service. Paragraph 2 which provides for Departmental
Promotion Committee and consideration of cases of officials for
'promotion', provides for sixteen years of 'regular' service. Thus, in other
paragraphs, the service was qualified by the adjective 'regular', the said
qualification was not necessary for the purpose of paragraph 1. [36-E-G[
E
2.2. Since the employee wanted the benefit of placement in 'next
highl'r grade', what was required to be established by him was that he
had completed sixteen years of service in the grade and the said
requirement had been complied with in view of the fact that with effect
from September 30, 1983 he was appointed as Warrant Officer. He was,
therefore, entitled to the benefit of 'next higher grade' under paragraph F
1 from 1999. [36-G, H; 37-A[

Dwijen Chandra Sarkar & Anr. v. Union of India & Ors., [1999[ 2 SCC
119 and Union of India & Anr. v. V.N. Bhat, (2003[ 8 SCC 714, relied on.

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5739 of2005. G
le
From the Judgment and Order dated I6.4.2003 of the High Court of
Judicature at Madras in Writ Peition No. 25452 of 2002.

Mohan Parasaran, ASG, S. Wasim A. Qadri, V.K. Venna and Shreekant
N. Terdol for the Appellants. H
32 SUPREME COURf REPORTS (20061 SUPP. 3 S.C.R.

A S. Nanda Kumar, K. M.ayk Samy, G. Ananda, A. Santha Kumar and
V.N. Raghupathy for the Respondent.

The Judgment of the Court was delivered by

C.K. THAKKER, J. This appeal is directed against an order dated
B April 3, 2002 passed by the Central Administrative Tribunal (CAT), Madras
Bench in O.A. No. 1094 of 2001 and confirmed by the High Court of
Judicature at Madras on April 16, 2003 in Writ Petition No. 25452 of 2002.

The relevant facts leading to the present appeal are that the respondent
herein, Mr. M. Mathivanan was selected for recruitment to the cadre of
C Postal Assistant on December 28, 1981 and was appointed as Postal Assistant
on daily wages basis. He underwent necessary training and was placed in
Reserve Training Pool (RTP), Postal Assistant to be absorbed as regular
Postal Assistant and was posted to work in the post offices in Cuddalore
Postal Division. In August I983, the respondent, volunteered for enrolment
D in Army Postal Services (APS). By an order dated August 19, 1983 his
request was accepted and he was appointed as Postal Assistant, Cuddalore
with effect from August 27, 1983. The appointment was made subject to the
following conditions.

(i) The appointment is on purely adhoc and temporary basis and
E candidate will have no claim for regular absorption in preference
to his seniors in the RTP list of this Division.
(ii) The inter-se-seniority between the candidates who volunteered
for APS and candidates who were appointed in the civil will not
be disturbed merely by virtue of the above appointment of
volunteers in the civil for deputation to APS.
F
(iii) If the candidate is declared medically unfit for enrollment to the
APS, he will revert back to the RTP list and take his chance for
absorption as regular PA in the normal ~ourse as and when it is
due.

G In September, 1983, while he was working in Reserve Training Pool as
Postal Assistant, he was asked by the Superintendeot of Post Offices, Cuddalore
Division to appear before the authorities for selection in Army Postal Services.
Accordingly, he appeared, and was selected as Warrant Officer with effect
from September 30, 1983. By an order dated October 20, 1983 the respondent
H was appointed as Postal Assistant in Cuddalore Division with effect from
U.0.1. v. M. MATHIVANAN [THAKKER, J.) 33
1 September 30, 1983 on the conditions mentioned in the said order. After his A
enrolment in the Army Postal Services, an order was passed by Hon 'ble the
President of India appointing him on the establishment of Regular Army with
effect from September 30, 1983.

It was the case of the respondent that Time Bound Promotion Scheme
was formulated by the authorities vide a Memorandum dated December 17, B
1983. The instructions were sent to all the Heads of Circles (Postal). The
scheme, inte alia, provided placing of officers in the 'next higher grade' who
had completed sixteen years of service in Group 'C' and 'D'. The scheme
, came into effect from November 30, 1983. According to the respondent, he
• had shown his willingness vide letter dated January 29, I988 for being C
governed by the said scheme. It is not in dispute that the respondent was
appointed as Postal Assistant on 'regular' basis from July I 8, 1989. He was
transferred to Cuddalore Division and joined there on August 6, 1991. In
1999, the respondent made an application to the Superintendent of Post Office,
Cuddalore Division for granting benefit of Time Bound Promotion Scheme
as he had completed sixteen years considering the starting point of September D
30, 1983. He also stated that he was in continuous service from 1983 and as
such he was entitled to get the benefit from September 30, 1999. Unfortunately,
however, his name was not included in the Time Bound Promotion Scheme.
Finally, he was informed by a communication dated March 24, 2000 that his
case for Time Bound Promotion would be considered only from 2007. His E
appeal against the said order also came to be dismissed by the Superintendent
of Post Offices on October 18, 2000.

Being aggrieved by the said orders, the respondent approached the
Central Administrative Tribunal, Madras by filing Original Application. The
Central Administrative Tribunal allowed his application holding that his p
services ought to have been considered from September 30, 1983 and since
he had completed sixteen years in 1999, he was entitled to the benefit of
Time Bound Promotion Scheme. Accordingly, the application was allowed.
The Writ Petition filed by the appellant herein was dismissed by the High
Court of Madras which order has been challenged by the appellants in the
present appeal. G
On January 23, 2004, notice wa~ issued on Special Leave Petition by
this Court since there was delay of 155 days in approaching this Court
Meanwhile, however, interim stay was granted against the operation of the
orders passed by the CAT and confirmed by the High Court. On September H
34 SUPREME COURT REPORTS [2006] SUPP. 3 S.C.R.

A 11, 2005, after hearing the parties, delay was condoned, leave was granted,
appeal was admitted, while interim relief was ordered to be continued and the
appeal was ordered to be expedited for final hearing.

We have heard the learned counsel for the parties.

B Mr. Parasaran, learned Additional Solicitor General, appearing for the
appellants. contended that the Tribunal as well as the High Court committed
an error of law in not considering in its proper perspective, the Time Bound
Promotion Scheme and by granting benefit of the said scheme to the
respondent. According to him, the provision in the scheme is clear and an
employee would be entitled to the benefit of Time Bound Promotion, only if •
C he has completed sixteen years of 'regular' service. Admittedly, the respondent
was regularly appointed in September l 989 and joined Cuddalore Division in
1991. The Dep;irtment was, therefore, perfectly justified in rejecting the prayer
of granting Time Bound Promotion as according to the Department, he was
not entitled to such promotion. He also submitted that the respondent was
D initially appointed in 1981, but the scheme required completion of sixteen
years of service on ·regular' basis. The counsel, therefore. submitted that the
order passed by the Tribunal and contirmed by the High Court deserves to
be set aside by upholding the action of the Department and by rejecting the
prayer of the respondent.

E The learned counsel for the respondent-employee, on the other hand,
supported the order passed by the Tribunal and confirmed by the High Court.
He urged that the scheme had been property interpreted by the Tribunal and
benefit was extended to him which was confirmed by the High Court. He
also relied upon decisions of this Court in which similar action had been set
aside by this Court by granting benefits to the employees. He, therefore,
F
submitted that the appeal deserves to be dismissed.

Having heard the learned counsel for the parties. in our opinion, the
order passed by CAT and confirmed by the High Court deserves no
interference. It is not in dispute by and between the partie> that the respondent
G was t:nrollt:d as Reserve Training Pool Postal Assistant and was appointed
initially as Postal Assistant in the year 1981. It is also not in dispute that in
1983, he volunteered for enrollment in Army Postal Services and was absorbed
in August. 1983 by an order dated August 19, I983. In the conditions refen-ed
to earlier. it was stated that the appointment was purely on ad hoc and
temporary basis and the respondent would have no right to claim regular
H absorption in preference to his seniors in RTP list of the Division. It was also
U.0.1. v. M. MATHIVANAN [THAKKER, J.] 35
stated that the inter-se-seniority between the candidates who volunteered for A
such services and candidates who were appointed in Civil Wing would not
be disturbed. It is also undisputed that pursuant to the willingness shown by
the respondent, he was regularized in 1989. But it cannot be disputed and is
not disputed before us that he was appointed as Warrant Officer in September,
1983. The order passed by Hon'ble the President of India appointing the B
respondent as Warrant Officer on the establishment of Regular Anny reads
thus:

"To

M. Mathivanan greeting:
c
You are hereby appointed to be a Warrant Officer on the
establishment of the Regular Anny, from the 30th day of September
One thousand nine hundred and eighty three.

You are therefore carefully and diligently to discharge your duty
as such; and you are to obey such orders and observe such directions D
as from time to time you shall receive from me or any of your
superior officers according to the rules, regulations and order for the
governance of the Regular Army .
.l
Given at New Delhi the sixth day of Magha of the Saka year One
thousand nine hundred and eight correspondent to the Tuesday sixth E
day of the month of January of the year One thousand nine hundred
and eighty seven A.D.
Sd/-
Zail Singh
President of India" p
).
The learned counsel for the respondent, in our opinion, is right in
relying on paragraph 1 of the Time Bound Promotion Scheme. Paragraph 1
which relates to placing of an employee in 'next higher grade' reads th1 1s:

"(!)The Scheme will come into effect from 30.11.1983. All officials
belonging to basic grades in Group 'C' and Group 'D' to which G
there is direct recruitment either form outside and/or by means
of limited competitive examination from lower cadres, and who
have completed 16 years of service in that grade, will be placed
in the next higher grade. Officials belonging to operative cadres
listed in the Annexure A-1 to the agreement will be covered H
36 SUPREME COURT REPURf'S (2006] SUPP. 3 S.C.R.
'
A under the scheme."

Paragraph 2 speaks of 'promotion' and reads as under:

"'The heads of circles/Divisional Superintendents/Heads of other
functional units will take immediate action to identify the officials
B who have completed sixteen years of regular service in the cadres
covered under the scheme as on 30.11.1983 as well as the officials
who will complete 16 years of service from 1.12.1983 to 30.3.1984.
Thereafter, action will be initiated by the Heads of Circles to convene
departmental promotion committee meetings to consider promotion
I
of the officials in the operative cadres to the next higher scale of pay.
c The Departmental Promotion Committee which will be constituted in
accordance with the existing instructions applicable to the different
cadres will assess the fitness of the identified officials for promotion
to the higher scale of pay. The formalities in this regard should be
complete within a period of three months. The promotion to the next
higher scale of pay will be granted from the date following the date
D
on which the identified officials complete sixteen years of regular
service. In case of officials who have completed sixteen years of
service before 30.11.1983, the promotions to the next higher scale of
pay will take effect from 30.11.1983."

E Reading of the above two paragraphs makes it abundantly clear that so
far as placing of an officer in the 'next higher grade' is concerned, what is
relevant and material is that such official belonging to basic grades in Group
'C' and 'D' must have completed "sixteen years of service in that Grade".
The said paragraph, no where uses the connotation 'regular' service. Paragraph
2 which provides for Departmental Promotion Committee and consideration
F of cases of officials for 'promotion', provides for sixteen years of 'regular'
service. The Tribunal, therefore, rightly considered paragraph 1 as relevant
and held that basic eligibility condition for being placed in the next higher
grade is that the officer must have completed sixteen years of service in the
basic grade in Group 'C' and Group 'D'. Though in other paragraphs, the
G service was qualified by the adjective 'regular', the said qualification was not
necessary for the purpose of paragraph 1. Since the employee wanted the
benefit of placement in ·next higher grade', what was required to be established
by him was that he _had completed sixteen years of service in the grade and
the said requirement had been complied with in view of the fact that with
effect from September 30, 1983 he was appointed as Warrant Officer. He
H
U.0.1. v. M. MA THIVANAN [THAKKER, J.] 37
was, therefore, entitled to the benefit of 'next higher grade' under paragraph A
1 from 1999. The authorities were, therefore, not justified in rejecting the
claim and accordingly the petition was allowed. The High Court rightly upheld
the direction of CAT.

The learned counsel for the respondent is also right in placing reliance
on the decision of this Court in Dwijen Chandra Sarkar & Anr. v. Union of B
India and Ors., (1999] 2 SCC 119. Almost in similar circumstances, the
Court considered the extent and applicability of Time Bound Promotion
Scheme and held that the benefit of the said scheme would be available to
a person who had completed 'sixteen years of service' in the grade. In that
case, two appellants were working in the Posts & Telegraphs Department and C
they had claimed the benefit of the scheme. Initially, they were serving in the
Rehabilitation Department of the Government of India, but were transferred
in the Department of Posts & Telegraphs afterwards. The question before the
Court was whether the appellants were entitled to count the services rendered
by them earlier- in the Rehabilitation Department of the Government of India
and whether they would be entitled to the benefit of the scheme by taking D
into account past services. The Court considered the scheme of December,
I983 and held that what was required under the scheme was completion of
sixteen years of service in that grade. If the said requirement is complied
with, an employee would be entitled to be placed in the next higher grade.
It was observed that two concepts, namely, (i) 'time bound promotion', and E
(ii) 'regular promotion' were different. So far as the 'time bound promotion'
was concerned, the Court observed that since there were large number of
employees who were not likely to get promotion in near future because of
their comparatively low position in the seniority, the Government thought it
necessary that in order to remove frustration, the employees should be placed
in the 'next higher grade' in terms of emoluments while retaining them in the F
same cadre. This is what is generally known as the 'time-bound promotion'.
Such 'time bound promotion' does not affect seniority of those higher up.

The Court then stated: ·

"12. If that be the true purpose of a time-bound promotion which is G
meant (to) relieve frustration on account of stagnation, it cannot be
said that the Government wanted to deprive the appellants who were
brought into the P & T Department in public interest of the benefit
of a higher grade. The frustration on account of stagnation is a common
factor not only of those already in the P & T Department but also of
H
38 SUPREME COURT REPORTS [2006] SUPP. 3 S.C.R.

A those who are administratively transferred by Government from the
Rehabilitation Department to the P & T Department. The Government,
while imposing an eligibility condition of 16 years' service in the
grade for being entitled to time-bound promotion, is not intending to
benefit only one section of employees in the category and deny it to
another section of employees in the same category. The common
B factor for all these employees is that they have remained in the same
grade for 16 years without promotions. The said period is a term of
eligibility for obtaining a financial benefit of a higher grade".

(emphasis supplied) ' -
c The Court added that for the purpose of 'regular promotions' to the
higher cadre in the department, their seniority should be counted only from
the date of their transfer in the Posts and Telegraphs Department.

The Court, therefore, concluded;
D "The words "except seniority" in the 1983 circular, in our view,
mean that such a benefit of a higher grade given to the transferees
will in no way atlect the seniority of employees in the P&T Department
when the tum of the P&T employees comes up for promotion to a
higher category or post. The said words ··except seniority" are intended •
E to see that the said persons who have come from another Department
on transfer do not upset the seniority in the transferee Department.
Granting them higher grade under the Scheme for Time-bound
Promotion does not, thert:fore, of the view that the appellants are
entitled to the higher grade from the date on which they have
completed 16 years and the said period is to be computed on the basis
F of their total service both in the Rehabilitation Department and the
P&T Department."

It is no doubt true as observed by the High Court that Dwijen Chandra
Sarkar was not an identical case, inasmuch as in that case, the appellants
were transferred "in public interest", whereas in the instant case, the transfer
G was volunteered by the respondent-employee for enrolment in Army. That,
however, in our opinion, does not make difference since to us, the language
of paragraph 1 of the scheme is clear, unambiguous and leaves no room for
doubt. That aspect was also consid-:red in Dwijen Chandra Sarkar. But, in
any case, even that point is also finally concluded by another decision of this
H court in Union of India & Anr. v. V.N. Bhat, [2003] 8 SCC 714 in which the
U.0.1. v. M. MATHlVANAN [THAKKER, .I.] 39
employee was initially appointed in the Ministry of Defence and voluntarily A
transferred himself to the office of the Post Master General. The question
which came up for consideration was as to whether he would be entitled to
get benefit of the scheme. Relying on Dwijen Chandra Sarkar, this Court
held that the employee would be entitled to the benefit of the scheme on
completion of sixteen years of service.
B
Relying on Dwijen Chandra Sarkar, this Court observed;

"The well-settled principle of law that even in the case where the
transfer has been allowed on request, the employee concerned merely
loses his seniority, but the same by itself would not lead to a conclusion
that he should be deprived of the other benefits including his C
experience and eligibility for promotion. In terms of the Schemes
aforementioned, promotion is to be granted for avoiding stagnation
only within the said parties. The said Schemes have been framed
because they are beneficial ones and are thus required to be
implemented. The Scheme merely perused that any person having D
rendered 16/26 years of service without obtaining any promotion
could be entitled to the benefit therefore. It is, therefore, not a case
where promotion to the higher post is to be made only on the basis
of seniority."

Since the respondent had completed sixteen years of service in 1999, E
he would be entitled to the benefit of paragraph I of Time Bound Promotion
Scheme and the action of the authorities in not granting the said benefit was
illegal and contrary to law. The Central Administrative Tribunal as well as
the High Court were, therefore, right in setting aside the said action and by
directing the authorities to extend the benefit of the Scheme to the respondent. F
We see no infirmity in the reasoning adopted and conclusion recorded by the
CAT or by the High Court and find no substance in the appeal of the appellants.

For the foregoing reasons, the appeal deserves to be dismissed and is
accordingly dismissed with costs.

D.G. Appeal dismissed. G