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Supreme Court of India

V. VINCENT VELANKANNIversusTHE UNION OF INDIA AND OTHERS

Citation
2024 INSC 748
Decided
30 September 2024
Disposal
Disposed off

Holding

The GO dated 4 August 2015 is prospective and cannot be applied retrospectively; seniority must be counted as per the rule in force at the relevant time, i.e., from the date of promotion to the skilled grade.

Summary

The appellant, a fitter appointed in the semi‑skilled grade in 1996, was promoted to the skilled grade in 1999 and later to the highly skilled grade in 2008. He challenged a seniority list that placed him below private respondents who were promoted earlier, arguing that seniority should be based on his initial appointment date. The respondents relied on a Government Order (GO) dated 24 December 2002, which counted seniority from the date of promotion to the skilled grade, while the appellant relied on a later GO dated 4 August 2015 that restored the earlier Office Memorandum (OM) of 1992, counting seniority from the initial appointment. The Supreme Court examined whether the 2015 GO could be applied retrospectively and held that it was a substantive amendment, not a clarification, and therefore prospective. Consequently, the seniority rule in force at the relevant time (counting from promotion) remained applicable, and the appellant's claim was rejected. The appeal was dismissed.

Issues considered

  • Whether the seniority of the appellant should be reckoned from the date of initial appointment or from the date of promotion/confirmation to the skilled grade.
  • Whether the GO dated 4 August 2015 can be given retrospective effect to alter seniority fixed under the earlier GO dated 24 December 2002.

Subjects

Service LawPromotionDate of inductionDate of promotionSeniorityGO dated 04.08.2015GO dated 24.12.2002Industrial establishmentSkilled gradeSemi-skilled gradeRetrospective effectProspective operation

Judgment

                 [2024] 10 S.C.R. 126 : 2024 INSC 748

                         V. Vincent Velankanni
                                   v.
                     The Union of India and Others
                      (Civil Appeal No(s). 8617 of 2013)
                              30 September 2024
             [Sandeep Mehta* and R. Mahadevan, JJ.]

                            Issue for Consideration
       Whether the seniority of the appellant is to be reckoned from the
       date of induction/initial appointment or as per the date of promotion/
       confirmation in the skilled grade.

                                   Headnotes†
       Service Law – Promotion – Seniority – Date of induction –
       Date of promotion – The GO dated 24.12.2002 issued by the
       Ordinance Factory Board placed on record clarifies the position
       regarding counting of seniority by laying down that seniority
       will be counted from the date of promotion to skilled grade
       and not from the date of induction/entry/promotion in semi-
       skilled grade – However, the appellant has placed reliance
       on GO dated 04.08.2015, the rule position qua the fixation
       of seniority has been restored to be governed by OM dated
       04.11.1992, according to which the relevant date for fixation
       of seniority would be the date of initial appointment and not
       the date of upgradation/promotion to the skilled grade:
       Held: The clarification issued vide GO dated 04.08.2015 does
       not operate retrospectively as it is specifically provided in the
       said GO that “henceforth”, the seniority in respect of Industrial
       Establishments will be governed by the relevant clause of OM
       dated 04.11.1992 – It is trite law that an Office Memorandum/
       Government Order cannot have a retrospective effect unless and
       until there is an express provision to make its effect retrospective
       or that the operation thereof is retrospective by necessary
       implication – If a Government Order is treated to be in the nature
       of a clarification of an earlier Government Order, it may be
       made applicable retrospectively – Conversely, if a subsequent
       Government Order is held to be a modification/amendment of the
       earlier Government Order, its application would be prospective
       as retrospective application thereof would result in withdrawal of
* Author
[2024] 10 S.C.R.                                                              127

        V. Vincent Velankanni v. The Union of India and Others


     vested rights which is impermissible in law and the same may also
     entail recoveries to be made – In the instant case, the subsequent
     GO dated 04.08.2015 cannot be read simply as a clarification and
     therefore cannot be made applicable retrospectively – The said
     GO has substantively modified the position governing seniority
     in the Industrial Establishments by reviving the earlier OM dated
     04.11.1992, and supersedes the orders/circulars dated 24.12.2002
     and 13.01.2003, which were holding the field over more than a
     decade – Therefore, giving retrospective effect to the GO dated
     04.08.2015 would have catastrophic effect on the seniority of the
     entire cadre – As much water has flown under the bridge and
     retrospective application of the GO issued in 2015 would open
     floodgates of litigation and would disturb the seniority of many
     employees causing them grave prejudice and heartburn as it would
     disturb the crystallized rights regarding seniority, rank and promotion
     which would have accrued to them during the intervening period –
     This Court is of the view that applicability of the Government Order
     dated 04.08.2015 cannot enure to the benefit of the appellant as
     its operation is clearly prospective. [Paras 41, 42, 43, 50, 51]

                               Case Law Cited
     Pawan Pratap Singh and Others v. Reevan Singh and Others [2011]
     2 SCR 831 : (2011) 3 SCC 267; Sonia v. Oriental Insurance Co.
     Ltd. and Others [2007] 8 SCR 883 : (2007) 10 SCC 627; Sree
     Sankaracharya University of Sanskrit and Others v. Dr. Manu and
     Another [2023] 7 SCR 366 : 2023 SCC OnLine SC 640; Malcom
     Lawrence Cecil D’Souza v. Union of India and Others (1976) 1 SCC
     599; R.S. Makashi and Others v. I.M. Menon and Others [1982]
     2 SCR 69 : (1982) 1 SCC 379; K.R. Mudgal and Others v. R.P.
     Singh and Others [1986] 3 SCR 993 : (1986) 4 SCC 531; B.S.
     Bajwa and Another v. State of Punjab and Others [1997] Supp.
     6 SCR 451 : (1998) 2 SCC 523 – relied on.
     BSNL v. R. Santhakumari Velusamy [2011] 14 SCR 502 : (2011)
     9 SCC 510; Direct Recruit Class II Engg. Officers’ Assn. v. State
     of Maharashtra [1990] 2 SCR 900 : (1990) 2 SCC 715; Suresh
     Chandra Jha v. State of Bihar and Others [2006] Supp. 8 SCR
     831 : (2007) 1 SCC 405; L. Chandrakishore Singh v. State of
     Manipur and Others [1999] Supp. 3 SCR 323 : (1999) 8 SCC
     287; Ajit Kumar Rath v. State of Orissa and Others [1999] Supp.
     4 SCR 302 : (1999) 9 SCC 596; L. Chandrakishore Singh v. State
     of Haryana, AIR 1975 SC 613 – referred to.
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                                        List of Keywords
       Service Law; Promotion; Date of induction; Date of promotion;
       Seniority; GO dated 04.08.2015; GO dated 24.12.2002 issued by
       Ordinance Factory Board; Industrial establishment; Skilled grade;
       Semi-skilled grade; Retrospective effect; Prospective operation.
                                       Case Arising From
       CIVIL APPELLATE JURISDICTION : Civil Appeal No. 8617 of 2013
       From the Judgment and Order dated 10.10.2011 of the High Court of
       Madras in WP No. 583 of 2011
       With
       Civil Appeal Nos. 10944 - 10946 of 2024
                                     Appearances for Parties
       R Nedumaran, Vijay Kumar, Prashant Bhushan, Anurag Tiwary,
       Advs. for the Appellant.
       Vikramjeet Banerjee, ASG, Rupesh Kumar, Sr. Adv., Abid Ali Beeran
       P, Saswat Adhyapak, Sarath S Janardanan, Joydip Bhattacharya,
       Mrs. Anil Katiyar, Nachiketa Joshi, Ms. Priya Mishra, Rajesh Kumar
       Singh, Advs. for the Respondents.
                        Judgment / Order of the Supreme Court
                                           Judgment
       Mehta, J.
       Civil Appeal No(s). 8617 of 2013
1.     The instant appeal by special leave takes exception to the judgment
       dated 10th October, 2011 passed by the High Court of Judicature
       at Madras in Writ Petition,1 whereby the Division Bench of the High
       Court accepted the writ petition2 preferred by the private respondents
       herein3 and reversed the judgment dated 24th December, 2010 passed
       by the Central Administrative Tribunal, Madras Bench4 in Original



1    Writ Petition No. 583 of 2011
2    Ibid
3    Respondent Nos. 3, 4 and 5
4    ‘CAT’, hereafter
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            V. Vincent Velankanni v. The Union of India and Others


       Application5 preferred by the private respondents herein. The CAT
       had rejected the Original Application,6 challenging the proposed
       action of revision and fixation of their seniority in the Engine Factory,
       Avadi, Chennai.7
2.     The brief facts in a nutshell, relevant and essential for the disposal
       of the instant appeal are noted hereinbelow.
3.     The appellant and the private respondents were engaged on
       semi-skilled posts such as Fitters and Machinists in respondent
       No.2-Factory. A common select list of candidates based on merit
       was issued by the General Manager of respondent No.2-Factory in
       the year 1995 wherein the appellant herein was placed at a higher
       position than the private respondents. An appointment order dated
       17th January, 1996 was issued in the favour of the appellant for the
       post of ‘Fitter General(semi-skilled)’ in respondent No.2-Factory.
       He was initially placed on probation for a period of two years which
       was further extended for a period of six months w.e.f. 17th January,
       1998. The appellant satisfactorily completed the probation period on
       16th July, 1998. Thereafter, he was promoted to the ‘Skilled’ grade
       on 6th January, 1999.
4.     A draft seniority list dated 28th July, 2006 was issued by respondent
       No.2-Factory, whereby the seniority of ‘Fitters’ was fixed as per their
       respective dates of promotion to the skilled grade and the appellant
       was placed at a lower position than the private respondents.
5.     Aggrieved of the draft seniority list,8 the appellant submitted a
       representation dated 13th November, 2006 to the General Manager
       of respondent No.2-Factory seeking necessary amendments in
       the draft seniority list and to fix his position appropriately and
       thereafter, to publish a final seniority list. The General Manager
       rejected the aforesaid representation submitted by the appellant vide
       communication dated 9th July, 2007, observing that his seniority had
       been fixed from the date of holding the skilled grade, and thus the
       position of the appellant in the seniority list was not liable to be altered.



5    Original Application No. 318 of 2009
6    Ibid
7    ‘respondent No. 2-Factory’, hereafter
8    Dated 28th July, 2006
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6.     Being aggrieved, the appellant preferred Original Application No.
       821 of 2007 before the CAT challenging the draft seniority list dated
       28th July, 2006.
7.     Another employee, namely, Mr. P. Kumaresan who was appointed
       as a Mechanist in respondent No.2-Factory in January 1996, also
       filed Original Application No. 831 of 2007, before the CAT, wherein
       Mr. P. Kumaresan also claimed that he had to be placed at the 6th
       position instead of the 27th position as set out in the draft seniority
       list. Original Application9 preferred by Mr. P. Kumaresan came to
       be allowed by the CAT holding that the seniority fixed in the draft
       list was incorrect. The CAT noted that respondent No.2-Factory had
       allowed the promotion to the juniors of Mr. P. Kumaresan on the
       ground that he was still undergoing the extended period of probation.
       The CAT held that it is settled law that once the extended period
       of probation is completed, the employee should be confirmed in
       service from the date of initial selection and should be assigned the
       original rank in the seniority list. Thus, once the extended period of
       probation came to an end and the employee was found suitable,
       he had to be confirmed in service, promoted with seniority and all
       consequential benefits to the next grade with reference to the date
       of initial appointment.
8.     The CAT allowed Original Application No. 821 of 2007 preferred by
       the appellant herein vide order dated 23rd January, 2009, basing its
       decision on the order passed in Original Application No. 831 of 2007
       considering the fact that both the workers were identically employed
       in respondent No.2-Factory and directed that the appellant was
       entitled to be considered for his claim of seniority and directed the
       respondents10 to revise the seniority list accordingly.
9.     The private respondents herein filed Original Application No. 318 of
       2009 before CAT against the proposed action of revision of seniority
       list and promotions in accordance with the order dated 23rd January,
       2009 passed in the Original Application No. 821 of 2007 filed by the
       appellant. The said Original Application11 was dismissed by CAT
       vide order dated 24th December, 2010 while granting the liberty to


9    Original Application No. 831 of 2007
10   Respondent Nos. 1 and 2
11   Original Application No.318 of 2009
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      the applicants therein(private respondents herein) to file a review
      application for assailing the orders passed in Original Application No.
      831 of 2007 and Original Application No. 821 of 2007.
10. However, private respondents herein rather than filing a review
    application, chose to assail the orders passed by the CAT by preferring
    a Writ Petition12 before the Madras High Court which came to be
    allowed vide order dated 10th October, 2011. The Union of India13 and
    respondent No. 2-Factory were directed by the High Court to restore
    the seniority of the writ petitioners(private respondents herein), holding
    that the writ petitioners are senior to the appellant herein, both as
    per the date of initial appointment and also in the promotional post
    of skilled grade. The High Court held that an employee selected in
    the semi-skilled grade is required to complete the probation period
    satisfactorily and has to pass the requisite trade test prescribed for the
    post before he can be confirmed and promoted to the skilled grade.
    Due to the extension of the probation period of the respondents in
    the Writ Petition No.583 of 2011(including the appellant herein), they
    were required to be placed below the persons who were promoted
    to the skilled grade earlier to them. The High Court held that in the
    skilled grade, the writ petitioners(private respondents herein) were
    senior to the third respondent(appellant herein). It was also held that
    the promotions to the skilled grade and the highly skilled grade were
    carried out in the years 1998 and 2003, respectively but the third
    respondent (appellant herein) chose to file the Original Application14
    in the year 2007 and no reason was forthcoming for the gross delay.
    The relevant extract from the High Court’s judgment dated 10th
    October, 2011 is reproduced hereinbelow: -
              “7. A mere reading of the counter affidavit would show that
              the probation of the third respondent in W.P. No. 583 of 2011
              was extended by six months and for the third respondent
              in W.P. No. 584 of 2011, it was extended by three months
              by virtue of their failure to complete probation of two years
              and to pass the required trade test prescribed for the
              posts. Accordingly, the third respondent in W.P. No. 583 of



12   Writ Petition No. 583 of 2011
13   Respondent No. 1
14   Original Application No. 821 of 2007
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       2011 was placed in the skilled grade only with effect from
       6.1.1999 and third respondent in W.P. No. 584 of 2011
       was promoted only with effect from 5.10.1998 whereas
       the petitioners in both the petitions were promoted to the
       skilled grade on 3.7.1998.
       8. It is not in dispute that the Semi-Skilled grade is only
       has to complete the probation period satisfactorily and
       pass the requisite trade tests prescribed for the posts.
       In the present case, it is clear that due to extension of
       the probation period, the respondents were placed below
       the persons who were promoted to Skilled grade earlier
       than them. Even if the date of appointment is taken into
       consideration, the petitioners are seniors to the third
       respondent in these petitions.
       9. That apart, the petitioners were promoted to the skilled
       grade in the year 1998 and to the highly skilled grade in
       the year 2003. But the third respondent in these petitions
       have chosen to file the original applications only in the
       year 2007 and no reason is forthcoming for the delay.
       10. In view of the counter affidavit filed by the Department
       which is in favour of the petitioners and the fact that the
       petitioners are seniors to the third respondent in these
       petitions both as per the date of initial appointment and
       also the date of promotion to the skilled grade, we are of
       the view that revising the seniority list at the instance of
       the third respondent in the Writ Petitions in the guise of
       implementing the order of the Tribunal, is illegal. Therefore,
       in our considered opinion, the order of the Tribunal is to
       be interfered with.
       11. For the aforesaid reasons, the writ petitions are allowed
       and the order of the Tribunal is set aside. The respondents 1
       and 2 are directed to restore the seniority of the petitioners
       confirming their original date of promotion to the Highly
       Skilled Grade. After revising the seniority, the respondents
       are further directed to consider the case of the petitioners
       for subsequent promotion on par with their juniors.”
                          (quoted verbatim from the paper book)
[2024] 10 S.C.R.                                                       133

          V. Vincent Velankanni v. The Union of India and Others


      The judgment dated 10th October, 2011 passed by the Division
      Bench of the High Court is the subject matter of challenge in the
      instant appeal.
      Submissions on behalf of the appellant:
11. Learned counsel appearing for the appellant urged that the High
    Court premised its findings on a totally erroneous reasoning that the
    challenge laid by the appellant to the draft seniority list was delayed
    and that the private respondents herein(writ petitioners) were senior
    to the appellant as on the date of initial appointment.
12. Learned counsel contended that the draft seniority list in the
    appellant’s cadre was published in the year 2006 for the first
    time after the appointment of the appellant as well as the private
    respondents. Immediately on receiving the draft seniority list, the
    appellant herein made a representation against the same and when
    a favourable decision was not forthcoming, he approached the CAT
    for challenging the validity thereof. He submitted that the finding of
    the High Court that the private respondents herein(writ petitioners)
    were senior to the appellant as on the date of initial appointment is
    totally against the record.
13. He further urged that the extant rules do not provide that the promotion
    from Fitter(semi-skilled) to Fitter(skilled) would be dependent on
    passing the trade test. Thus, as soon as the appellant completed
    the probation period, his services would have to be confirmed and
    reckoned from the date of initial appointment, and by virtue thereof,
    the appellant would be entitled to be placed above the private
    respondents in the order of seniority.
14. Learned counsel submitted that the period spent during training/
    probation has to be reckoned for computation of length of service and
    the same cannot be excluded while assigning seniority to an employee.
    In support of his arguments, learned counsel placed reliance on the
    judgment of this Court in the case of L. Chandrakishore Singh v.
    State of Haryana.15
15. He further submitted that the movement of the employee from semi-
    skilled to skilled grade tantamounts to confirmation/ upgradation and



15   AIR 1975 SC 613
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       not a promotion. In support of this contention, reliance was placed on
       the judgment of this Court in the case of BSNL v. R. Santhakumari
       Velusamy.16
16. Learned counsel also placed reliance on the Office Memorandum17
    dated 4th November,1992, issued by the Government of India,
    Department of Personnel and Training, which was in force at the
    time when the appellant and the private respondents were appointed,
    wherein, it is provided: -
                                    “Seniority for Promotion
                        Order effective from 4th November, 1992
              [Government of India, Department of Personnel and
              Training, Office Memorandum No. 20011/5/90-Estt. (D),
              dated the 4th November, 1992]
              Seniority to be determined by the order of merit indicated
              at the time of initial appointment.- The seniority of
              Government servants is determined in accordance with
              the general principles of seniority contained in M.Η.Α.,
              Ο.Μ. No. 9/11155-RPS, dated the 22nd December, 1959
              (See Section II). One of the basic principles enunciated
              in the said OM is that, seniority follows confirmation and
              consequently permanent officers in each grade shall rank
              senior to those who are officiating in that grade.
              2. This principle has been coming under judicial scrutiny in
              a number of cases in the past; the last important judgment
              being the one delivered by the Supreme Court on 2-5-1990,
              in the case of Class II Direct Recruits Engineering Officers’
              Association v. State of Maharashtra. In Para. 47 (A) of the
              said judgment, the Supreme Court has held that once an
              incumbent is appointed to a post according to rule, his
              seniority has to be counted from the date of his appointment
              and not-according to the date of his confirmation.
              3. The general principle of seniority mentioned above has
              been examined in the light of the judicial pronouncement


16   [2011] 14 SCR 502 : (2011) 9 SCC 510
17   ‘OM’, hereafter
[2024] 10 S.C.R.                                                           135

           V. Vincent Velankanni v. The Union of India and Others


             referred to above and it has been decided that seniority
             may be delinked from confirmation as per the directive
             of the Supreme Court in Para, 47 (A) of its judgment,
             dated 2-5-1990. Accordingly, in modification of the
             General Principle 3, proviso to General Principle 4
             and proviso to General Principle 5 (i) contained in
             O.M. No. 9/11155-RPS, dated the 22nd December,
             1959 and Para. 2.3 of O.M., dated the 3rd July, 1986,
             it has been decided that the seniority of a person
             regularly appointed to a post according to rule would
             be determined by the order of merit indicated at the
             time of initial appointment and not according to the
             date of confirmation.
             4. These orders shall take effect from the date of issue
             of this Office Memorandum. Seniority already determined
             according to the existing principles on the date of issue of
             these orders will not be reopened even if in some cases
             seniority has already been challenged or is in dispute
             and it will continue to be determined on the basis of the
             principles already existing prior to the date of issue of
             these orders.”
                                                   (emphasis supplied)
      He thus urged that the seniority of a person regularly appointed would
      have to be reckoned based on the merit indicated at the time of the
      initial appointment and not as per the date of confirmation. To support
      this submission, he also placed reliance on the Constitution Bench
      decision of this Court in Direct Recruit Class II Engg. Officers’
      Assn. v. State of Maharashtra.18
      He thus implored the Court to accept the appeal, set aside the
      impugned judgment rendered by the High Court, and restore the
      judgment of the CAT.
      Submissions on behalf of the respondents:
17. Per contra, learned counsel appearing for respondent Nos. 1 and 2
    submitted that the appellant was appointed as Fitter General(semi-


18   [1990] 2 SCR 900 : (1990) 2 SCC 715
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       skilled) on 17th January, 1996. The semi-skilled grade is only a
       trainee grade and in order to be confirmed in service and for being
       promoted to the skilled grade, the employee would have to complete
       the probation period satisfactorily and pass the requisite trade test
       prescribed for promotion to the skilled grade. Only on passing the
       trade test, the employee would qualify for a permanent status and
       promotion to the skilled grade.
18. He further submitted that it is a settled law that in cases where there
    are no rules governing the field, it is the placement in the initial merit
    list that will decide the seniority, however, if the rules are in vogue,
    then the same will prevail. In this regard, he placed reliance on
    Suresh Chandra Jha v. State of Bihar and Others.19
19. Learned counsel for the respondents placed reliance on Statutory
    Regulatory Order20 No. 185 of 1994 dated 1st November, 1994 to
    urge that any appointment in the industrial establishment is done
    against the skilled grade and hence, the period spent in the semi-
    skilled grade till completion of probation period and qualifying the
    prescribed trade test for promotion to the skilled grade is considered
    only as a trainee grade. Resultantly, the seniority/merit position at
    the time of induction in the trainee grade would have no bearing
    on the inter se seniority of the employees which would have to be
    reckoned from the date the employee is confirmed and promoted to
    the skilled grade upon completing the probation period and clearing
    the trade test.
20. He further placed reliance upon the Government Order21 dated 24th
    December, 2002 issued by the Ordinance Factory Board, Ministry
    of Defence, Government of India, which was issued to clarify the
    counting of seniority in trades mentioned in SRO No. 185 of 1994
    applicable to the Industrial Establishments and urged that the said
    GO clarifies beyond the pale of doubt that the semi-skilled grade is
    a trainee grade and the seniority will be counted from the date of
    promotion to the skilled grade and not from the date of induction/
    entry in the semi-skilled grade.



19   [2006] Supp. 8 SCR 831 : (2007) 1 SCC 405
20   ‘SRO’, hereafter
21   ‘GO’, hereafter
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            V. Vincent Velankanni v. The Union of India and Others


21. Learned counsel pointed out that the two years’ probation period
    of the appellant was extended by six months w.e.f. 17th January,
    1998, and the appellant could complete the probation period only on
    16th July, 1998. Subsequently, upon passing the trade test, he was
    promoted to the skilled grade w.e.f. 6th January, 1999. The appellant
    lost the seniority on account of his failure to complete probation in
    the period of two years and clearing the trade test whereas, the
    private respondents herein had completed probation in time and were
    found to be fit in the trade test and therefore, they were promoted
    to the skilled grade much before the appellant. Consequently, these
    employees i.e. private respondents herein were placed higher in
    seniority, as per clarification issued by Ordinance Factory Board
    vide GO dated 24th December, 2002.
      On these grounds, learned counsel for the respondents implored
      the Court to dismiss the appeal and affirm the order passed by the
      High Court.
22. Learned counsel for the private respondents herein22 adopted the
    submissions advanced by learned counsel for respondent Nos. 1
    and 2.
23. We have given our thoughtful consideration to the submissions
    advanced at the bar by learned counsel for the parties and have
    gone through the impugned judgment and the material placed on
    record.
      Discussion and Conclusion:
24. The fact that the appellant and private respondents were inducted
    as semi-skilled grade employees in respondent No. 2-Factory in
    the year 1996 is not in dispute. The common select list dated 22nd
    November, 1995 is not placed on record by the parties. However,
    appellant filed an RTI,23 and the reply thereto dated 29th December,
    2011 clearly shows that at the time of initial induction, appellant was
    placed at the 7th position, whereas the private respondents24 were
    placed at the 30th, 31st and 32nd positions, respectively in the select
    list based on merit.


22   Respondent Nos. 3, 4, and 5
23   Right to Information
24   Respondent Nos. 3, 4 and 5
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25. The Division Bench of the High Court in the impugned judgment
    dated 10th October, 2011 has recorded a categoric finding that
    even if the date of appointment is taken into consideration, the writ
    petitioners(private respondents herein) are senior to respondent
    No.3(appellant herein). This finding seems to be prima facie erroneous
    because admittedly, the appellant herein was placed at 7th position
    and the private respondents were placed at the 30th, 31st and 32nd
    positions in the order of merit, as borne out from the record. Further,
    in writ petition25 filed by the private respondents before the High Court
    and the counter affidavit filed by the respondents herein before this
    Court, there is no averment that these respondents were placed
    above to the appellant at the time of initial appointment. Rather the
    sole ground taken by the writ petitioners(private respondents herein)
    to oppose the prayer of the appellant was that the appellant was
    not able to complete his probation period and pass the trade test
    on time and thus, he was placed below the private respondents in
    the draft seniority list.
26. Before we adjudicate upon the issue of inter se seniority amongst the
    litigating parties, we find it necessary to comment on the appellant’s
    approach towards filing his claim concerning his promotion in the
    highly skilled grade.
27. The appellant and the private respondents faced a common
    selection process and were appointed in the semi-skilled grade
    in the year 1996. The private respondents herein were promoted
    to the skilled grade on 11th January, 1998 and further promoted to
    the highly skilled grade on 20th May, 2003. On the other hand, the
    appellant was promoted to the skilled grade on 17th July, 1998(after
    completing his extended probation period of 6 months and clearing
    the mandatory trade test). Considering that the private respondents
    were promoted to highly skilled grade in May, 2003, the appellant in
    the normal course should also have been promoted to highly skilled
    grade by the end of the year 2003. However, as per the factual
    matrix, he was promoted to the highly skilled grade after around 5
    years i.e. on 26th March, 2008. A tabular chart depicting the date of
    appointment and the date of promotion to skilled and highly skilled
    grade is placed below: -


25   Writ Petition No. 583 of 2011
[2024] 10 S.C.R.                                                                              139

           V. Vincent Velankanni v. The Union of India and Others



        Name                 Date of        Extension of     Effective      Date of      Date of
                          appointment        probation        date of      promotion    promotion
                           in the Semi                      satisfactory   to Skilled     to the
                          Skilled grade                    completion of     grade        Highly
                                                             probation                    skilled
                                                                                          grade
        V. Sivaraman        11.01.1996          NA          11.01.1998     03.07.1998   20.05.2003
        (Respondent
        No. 3)
        G. Sudhakar         11.01.1996          NA          11.01.1998     03.07.1998   20.05.2003
        (Respondent
        No. 4)
        P. Ramesh           11.01.1996          NA          11.01.1998     03.07.1998   20.05.2003
        (Respondent
        No. 5)
        V. Vincent          17.01.1996      By 6 months     17.07.1988     06.01.1999   26.03.2008
        Velankanni                              w.e.f.
        (Appellant)                         17.1.1998 by
                                            order dated
                                              5.2.1998

28. The draft seniority list was published on 28th July, 2006. The appellant
    never questioned the denial of promotion to the highly skilled grade,
    till much after the publication of the draft seniority list. Admittedly,
    co-employees who were below the appellant in the select list of
    the year 1996 were promoted in the intervening period without any
    objection being raised by the appellant. After the publication of the
    draft seniority list in the year 2006, he chose to challenge the same
    and to consider his promotion to highly skilled grade with effect from
    20th May, 2003 by filing an Original Application26 before CAT only in
    the year 2007. Thus, it was the first time in 2007 that the appellant
    claimed his promotion with retrospective effect. However, this benefit
    of retrospective promotion was neither granted by the CAT nor by the
    High Court and thus, there is no need to delve into this aspect further.
29. The primary issue which requires adjudication is as to whether the
    seniority of the appellant is to be reckoned from the date of induction/
    initial appointment or as per the date of promotion/confirmation in
    the skilled grade.
30. It is a well-settled proposition that once an incumbent is appointed to
    a post according to the rules, his seniority has to be reckoned from


26   Original Application No. 821 of 2007
140                                                             [2024] 10 S.C.R.

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       the date of the initial appointment and not according to the date of
       confirmation, unless the rules provide otherwise.
31. In the case of L. Chandrakishore Singh v. State of Manipur and
    Others,27 this Court held that in cases of probationary or officiating
    appointments which are followed by a confirmation, unless a contrary
    rule is shown, the services rendered as the officiating appointment
    or on probation cannot be ignored while reckoning the length of
    service for determining the position in the seniority list. This view
    has been reiterated in the case of Ajit Kumar Rath v. State of
    Orissa and Others.28
32. The Constitution Bench of this Court in Direct Recruit Class II Engg
    Officers’ Assn.(supra) stated the legal position with regard to inter
    se seniority of direct recruits and promotees and while doing so,
    inter alia, it was held that once an incumbent is appointed to a post
    according to rules, his seniority has to be counted from the date of
    his appointment and not according to the date of his confirmation.
33. This Court summarised the legal principles with regard to the
    determination of seniority in Pawan Pratap Singh and Others v.
    Reevan Singh and Others29 in the following terms:
             45. From the above, the legal position with regard to
             determination of seniority in service can be summarised
             as follows:
             (i)     The effective date of selection has to be understood
                     in the context of the service rules under which the
                     appointment is made. It may mean the date on which
                     the process of selection starts with the issuance of
                     advertisement or the factum of preparation of the
                     select list, as the case may be.
             (ii)    Inter se seniority in a particular service has to be
                     determined as per the service rules. The date of
                     entry in a particular service or the date of substantive
                     appointment is the safest criterion for fixing seniority
                     inter se between one officer or the other or between


27   [1999] Supp. 3 SCR 323 : (1999) 8 SCC 287
28   [1999] Supp. 4 SCR 302 : (1999) 9 SCC 596
29   [2011] 2 SCR 831 : (2011) 3 SCC 267
[2024] 10 S.C.R.                                                           141

           V. Vincent Velankanni v. The Union of India and Others


                    one group of officers and the other recruited from
                    different sources. Any departure therefrom in the
                    statutory rules, executive instructions or otherwise
                    must be consistent with the requirements of Articles
                    14 and 16 of the Constitution.
             (iii) Ordinarily, notional seniority may not be granted from
                   the backdate and if it is done, it must be based on
                   objective considerations and on a valid classification
                   and must be traceable to the statutory rules.
             (iv) The seniority cannot be reckoned from the date of
                  occurrence of the vacancy and cannot be given
                  retrospectively unless it is so expressly provided by
                  the relevant service rules. It is so because seniority
                  cannot be given on retrospective basis when an
                  employee has not even been borne in the cadre and
                  by doing so it may adversely affect the employees
                  who have been appointed validly in the meantime.
34. Thus, it is trite that when an employee completes the probation period
    and is confirmed in service albeit with some delay, the confirmation
    in service shall relate back to the date of the initial appointment. Any
    departure from this principle in the form of statutory rules, executive
    instructions or otherwise must be consistent with the requirements
    of Articles 14 and 16 of the Constitution of India.
35. In the backdrop of the above legal and factual background, let us now
    examine if whether the extant rules/regulations/circulars prevailing
    in the establishment30 contained any stipulation that the completion
    of the probation period and the passing of the trade test is sin qua
    non for being promoted to the skilled grade and if so, whether the
    seniority of the employees selected on the same date would have
    to be reckoned from the date of confirmation/passing the trade test
    or from the date of initial appointment.
36. A pertinent averment is made in the counter affidavit filed by the
    respondents emphasizing their stand that the semi-skilled grade is
    only a trainee grade and in order to place an employee in the skilled
    grade, he would have to complete the probation period satisfactorily


30   Respondent No. 2-Factory
142                                                         [2024] 10 S.C.R.

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       and also clear the trade test as laid down in the SRO No. 185 of
       1994. The relevant extract from SRO No. 185 of 1994 dated 1st
       November, 1994 is reproduced hereinbelow for the sake of ready
       reference. Note 6 of the said SRO reads as below: -
           “Note 6. Wherever “Trade Test” is laid down in Column 12
           of this Schedule such trade test shall be prescribed by the
           General manager of the factory or the Ordnance Factory
           Board. The term “Trade Test” will include written, oral and
           practical examination and aptitude test and interview and
           also statutory qualification test where applicable.”
37. The GO dated 24th December, 2002 issued by the Ordinance Factory
    Board placed on record clarifies the position regarding counting of
    seniority in the trades of SRO No. 185 of 1994 for the industrial
    establishments. The language of this GO is considered germane to
    the controversy and hence, the relevant portion thereof is extracted
    hereinbelow: -
           “With a view to overcome doubts in counting of seniority
           in respect of industrial employees who are working in
           trades listed at Annexure ‘A’ of SRO 185/1994 it has been
           decided to interpret rules relating to seniority in consonance
           with existing SRO provisions. Accordingly, the following
           rules for determining seniority may be followed in all OFs
           with immediate effect.
           1) Semi-skilled posts are training post for skilled posts
           of trades listed at Annexure ‘A’ of SRO 185/1994.
           2) Educational Qualification/Technical Qualification will
           not be deciding factor while counting seniority for trades
           listed at Annexure ‘A’ of SRO 185/1994.
           However, where passing of trade test/competency test
           or any other statutory certificate is required, the same
           must be adhered to and cannot be done away with.
           3) Seniority will be counted from the date of promotion
           to Skilled grade and not from the date of induction/
           entry/promotion in semi-skilled grade.
           4)……
[2024] 10 S.C.R.                                                         143

           V. Vincent Velankanni v. The Union of India and Others


              5)……
              6) The above orders are in consonance with the existing
              SRO provisions and various court orders on the subject.”
                                                  (emphasis supplied)
38. The validity of this GO31 was never assailed by the appellant at any
    stage either before the CAT or the High Court. A conjoint reading
    of SRO No. 185 of 1994 and the GO dated 24th December, 2002,
    which indisputably were applicable to the cadre of semi-skilled and
    skilled fitters in the respondent establishment32 at the relevant point of
    time would make it clear that the seniority in the skilled grade would
    have to be reckoned from the date of promotion to the skilled grade
    and not from the date of induction/entry in the semi-skilled grade
    and the candidate joining service in the semi-skilled grade would be
    mandatorily required to complete the probation period and also to
    clear the trade test for being promoted to the skilled grade. In the
    event of either of the two conditions not being met, the employee
    concerned would not be entitled to be promoted to the skilled grade.
39. The appellant, in support of his plea, has placed reliance on a GO
    dated 4th August, 2015, whereby the GO dated 24th December, 2002
    has been superseded and it has been decided by the Competent
    Authority that “henceforth”, the seniority in respect of Industrial
    Establishments would be governed by the relevant clause of OM
    dated 4th November, 1992(reproduced supra). The said GO dated
    4th August, 2015 is reproduced hereinbelow for the sake of ready
    reference: -
              “No. Per/I/Seniority/2015-16          Date: 04-08-2015
              To
              The Sr. General Managers/ General Managers
              All Ordnance & Ordnance Equipment Factories
              Sub: Determination of Seniority in connection with direct
              Recruitment in the Industrial Establishment.
              Ref: (i) OFB Circular No. 590/OFBOL/A/I dated 24.12.2002


31   Dated 24th December, 2002
32   Engine Factory, Avadi, Chennai
144                                                     [2024] 10 S.C.R.

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           (ii) OFB Circular No. 590/OFBOL/A/I dated 13.01.2003
       In connection with counting of Seniority in Annexure-A
       trades of SRO 185/1994 in the Industrial Establishment,
       above referred OFB Circulars clarified and directed that
       seniority in respect of Industrial Employees will be counted
       from the date of up-gradation to Skilled Grade and not
       from the date of induction/entry/promotion in the Semi-
       skilled grade.
       Several references in this regard have been received at
       OFB and after due examination, it has been observed that
       the OFB Circulars under reference are not in line with the
       principles of seniority as laid down by DOPT from time
       to time.
       Therefore, the Competent Authority has decided that in
       supersession of the above referred OFB Circulars dated
       24.12.2002 and 13.01.2003, henceforth, seniority in
       respect of IEs will be governed by the relevant clause of
       DOPT OM No.20011/5/90-Estt(D) dated 4th November,
       1992 and OM No.22011/7/86-Estt(D) dated 3rd July, 1986.
       Accordingly, promotion from Skilled to Highly Skilled Grade-
       II will be made as per the seniority fixed for Semi-skilled
       grade (entry grade) which will be arrived at as per merit
       of the select panel, without making any linkage to the date
       of up-gradation to the Skilled Grade.
       It may so happen that a person lower in the merit list of
       recruitment (in Semi-skilled grade) joins earlier due to early
       clearance of PVR. In such case, the person lower in the
       merit list will complete his/her qualifying service and be
       up-graded to Skilled Grade on earlier date as compared to
       a person higher in the merit list. However, person higher in
       the merit list will not lose his seniority and will be placed
       above the person lower in the merit list after getting up-
       gradation to Skilled Grade.
                                                  (S. K. Singh)
                                                    Director/IR
                      For Director General, Ordnance Factories”
                                              (emphasis supplied)
[2024] 10 S.C.R.                                                           145

           V. Vincent Velankanni v. The Union of India and Others


40. By virtue of the above GO,33 the rule position qua the fixation
    of seniority has been restored to be governed by OM dated 4th
    November, 1992(reproduced supra), according to which the relevant
    date for fixation of seniority would be the date of initial appointment
    and not the date of upgradation/promotion to the skilled grade. The
    OM dated 4th August, 2015 further clarifies that the person higher
    in the merit list will not lose his seniority and will be placed above
    the person lower in the merit list after getting upgradation to the
    skilled grade.
41. However, the clarification issued vide GO dated 4th August, 2015
    does not operate retrospectively as it is specifically provided in the
    said GO that “henceforth”, the seniority in respect of Industrial
    Establishments will be governed by the relevant clause of OM dated
    4th November, 1992.
42. It is trite law that an Office Memorandum/Government Order cannot
    have a retrospective effect unless and until there is an express
    provision to make its effect retrospective or that the operation thereof
    is retrospective by necessary implication. In this regard, we are
    benefitted by the observations of this Court in Sonia v. Oriental
    Insurance Co. Ltd. and Others,34 wherein it was held that:
              “11. ….In any view of the matter, law is well settled that
              an Office Memorandum cannot have a retrospective effect
              unless and until intention of the authorities to make it as
              such is revealed expressly or by necessary implication in
              the Office Memorandum.”
43. If a Government Order is treated to be in the nature of a clarification
    of an earlier Government Order, it may be made applicable
    retrospectively. Conversely, if a subsequent Government Order is
    held to be a modification/amendment of the earlier Government
    Order, its application would be prospective as retrospective
    application thereof would result in withdrawal of vested rights which
    is impermissible in law and the same may also entail recoveries
    to be made. The principles in this regard were culled out by this
    Court in a recent judgment of Sree Sankaracharya University of



33   Dated 4th August, 2015
34   [2007] 8 SCR 883 : (2007) 10 SCC 627
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       Sanskrit and Others v. Dr. Manu and Another,35 in the following
       terms: -
             “52. From the aforesaid authorities, the following principles
             could be culled out:
             i)     If a statute is curative or merely clarificatory of the
                    previous law, retrospective operation thereof may
                    be permitted.
             ii)    In order for a subsequent order/provision/amendment
                    to be considered as clarificatory of the previous law,
                    the pre-amended law ought to have been vague or
                    ambiguous. It is only when it would be impossible to
                    reasonably interpret a provision unless an amendment
                    is read into it, that the amendment is considered to
                    be a clarification or a declaration of the previous law
                    and therefore applied retrospectively.
             iii)   An explanation/clarification may not expand or alter
                    the scope of the original provision.
             iv)    Merely because a provision is described as a
                    clarification/explanation, the Court is not bound by
                    the said statement in the statute itself, but must
                    proceed to analyse the nature of the amendment and
                    then conclude whether it is in reality a clarificatory or
                    declaratory provision or whether it is a substantive
                    amendment which is intended to change the law and
                    which would apply prospectively.”
44. Applying these principles to the case at hand, we are of the view
    that the subsequent GO dated 4th August, 2015 cannot be read
    simply as a clarification and therefore cannot be made applicable
    retrospectively. The said GO has substantively modified the position
    governing seniority in the Industrial Establishments by reviving the
    earlier OM dated 4th November, 1992, and supersedes the orders/
    circulars dated 24th December, 2002 and 13th January, 2003, which
    were holding the field over more than a decade. Therefore, giving
    retrospective effect to the GO dated 4th August, 2015 would have
    catastrophic effect on the seniority of the entire cadre.


35   [2023] 7 SCR 366 : 2023 SCC OnLine SC 640
[2024] 10 S.C.R.                                                            147

           V. Vincent Velankanni v. The Union of India and Others


45. This Court has time and again dealt with the effect of altering the
    seniority list at a belated stage and how it may adversely affect the
    employees whose seniority and rank has been determined in the
    meantime. In this connection, reference may be made to Malcom
    Lawrence Cecil D’Souza v. Union of India and Others,36 wherein
    this Court held that: -
             “9. Although security of service cannot be used as a
             shield against administrative action for lapses of a public
             servant, by and large one of the essential requirements of
             contentment and efficiency in public services is a feeling of
             security. It is difficult no doubt to guarantee such security
             in all its varied aspects, it should at least be possible to
             ensure that matters like one’s position in the seniority list
             after having been settled for once should not be liable to
             be reopened after lapse of many years….. Raking up old
             matters like seniority after a long time is likely to result
             in administrative complications and difficulties. It would,
             therefore, appear to be in the interest of smoothness and
             efficiency of service that such matters should be given a
             quietus after lapse of some time.”
46. In R.S. Makashi and Others v. I.M. Menon and Others,37 this Court
    observed as follows: -
             “33. …. We must administer justice in accordance with
             law and principles of equity, justice and good conscience.
             It would be unjust to deprive the respondents of the rights
             which have accrued to them. Each person ought to be
             entitled to sit back and consider that his appointment and
             promotion effected a long time ago would not be set aside
             after the lapse of a number of years. ….”
47. In K.R. Mudgal and Others v. R.P. Singh and Others,38 this Court
    observed in the following terms: -
             “2. … A government servant who is appointed to any post
             ordinarily should at least after a period of 3 or 4 years


36   (1976) 1 SCC 599
37   [1982] 2 SCR 69 : (1982) 1 SCC 379
38   [1986] 3 SCR 993 : (1986) 4 SCC 531
148                                                          [2024] 10 S.C.R.

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             of his appointment be allowed to attend to the duties
             attached to his post peacefully and without any sense
             of insecurity.”
48. In B.S. Bajwa and Another v. State of Punjab and Others,39 this
    Court held that the seniority list should not be reopened after a lapse
    of reasonable period as it would disturb the settled position which
    is unjustifiable. The relevant extract is as follows: -
             “7. … It is well settled that in service matters the question
             of seniority should not be reopened in such situations after
             the lapse of a reasonable period because that results in
             disturbing the settled position which is not justifiable….”
49. It can easily be inferred that in the intervening period, before the GO
    dated 4th August, 2015 came to be issued, seniority of multitudes
    of employees must have been fixed according to the GO dated 24th
    December, 2002, which is according to the date of promotion to
    skilled grade and not from the date of induction/entry in semi-skilled
    grade. As a matter of fact, respondent Nos. 3, 4 and 5 who were
    below the appellant in the order of merit at the time of induction in
    the semi-skilled grade, have been promoted to the skilled grade and
    the highly skilled grade much before the appellant by application of
    the GO dated 24th December, 2002. The appellant did not question
    their promotions before any Court or Tribunal at any stage.
50. Thus, much water has flown under the bridge and retrospective
    application of the GO issued in 2015 would open floodgates of litigation
    and would disturb the seniority of many employees causing them
    grave prejudice and heartburn as it would disturb the crystallized rights
    regarding seniority, rank and promotion which would have accrued to
    them during the intervening period. To alter a seniority list after such
    a long period would be totally unjust to the multitudes of employees
    who could get caught in the labyrinth of uncertainty for no fault of
    theirs and may suffer loss of their seniority rights retrospectively.
51. Keeping in mind the afore-stated principles, we are of the view
    that applicability of the Government Order dated 4th August, 2015
    cannot enure to the benefit of the appellant as its operation is clearly
    prospective.


39   [1997] Supp. 6 SCR 451 : (1998) 2 SCC 523
[2024] 10 S.C.R.                                                   149

           V. Vincent Velankanni v. The Union of India and Others


52. In wake of the above discussion, we find that the impugned judgment
    of the High Court does not suffer from any infirmity warranting
    interference.
53. This appeal is dismissed as being devoid of merit. No order as to
    costs.
54. Pending application(s), if any, shall stand disposed of.
     CIVIL APPEAL @ SLP(Civil) D. No. 3704-3706 of 2012)
55. Delay condoned.
56. Leave granted.
57. In terms of the judgment passed in Civil Appeal No(s). 8617 of 2013,
    the present appeals are disposed of. No order as to costs.
58. Pending application(s), if any, shall stand disposed of.

     Result of the Case: Appeals disposed of.



     †
         Headnotes prepared by: Ankit Gyan


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V. VINCENT VELANKANNI versus THE UNION OF INDIA AND OTHERS — 2024 INSC 748 - Legal Desk AI