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2007 (4) TMI 618

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..... . 50,000/-. - Appeal (civil) 1997 of 2007 and CIVIL APPEAL NO.1998/2007 - - - Dated:- 17-4-2007 - S.B. Sinha and Markandey Katju, JJ. JUDGMENT: S.B. SINHA, J. Leave granted. These two appeals involving similar questions of law and facts were taken up for hearing together and are being disposed of by this common judgment. Respondents herein were employees of Mahanadi Coalfields Ltd., a Government Company within the meaning of Section 617 of the Companies Act. Coal India Limited admittedly is the holding company of Mahanadi Coalfields Ltd. Appellant No. 1 framed rules laying down terms and conditions of service of its Executive Officers. The Executive Cadre of the Officers of Appellant No. 1 is divided in various grades namely Gr. E/1 to Gr. E/8. Indisputably, promotion from A/3 to A/4 grades is governed by the rule of Seniority-Cum-Merit. For the purpose of considering the cases for promotion of the eligible officers from Grade E/3 to E/4, a departmental promotion committee held its meeting in April-May, 1999. Respondents were, however, not promoted inter alia on the premise that the General Manager (Vigilance) of the Mahanadi Coalfields Ltd. intimated to the conce .....

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..... ndia, the sealed cover was opened and the petitioner was given promotion to next higher grade (Grade-4) since the so called investigation was not completed within two years from the date the immediate junior to the petitioner was promoted. This particular office memorandum has been issued may be with the intention to check prolonged enquiry covering a period of more than two years in respect of certain allegations against an employee, so that the concerned employee shall not be harassed or debarred from getting benefit on the recommendation of DPC for an indefinite/prolonged period on the ground of pendency of such enquiry, without initiation of a departmental proceeding after service of charge memo. However once the sealed cover is opened and the petitioner is allowed the benefit of the recommendation of DPC by giving him promotion to the next higher grade, he shall be entitled for all consequential benefits from the date his immediate junior got the same. In this case the petitioner had never been suspended during the period of the so-called preliminary enquiry nor during the period of departmental enquiry. As such, he shall be entitled for promotion notionally with effect from .....

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..... e memorandum dated 19/27 June 1979 reads as under:- "The issue relating to procedure to be followed with regard to promotion of an officer who has been kept under suspension and/or against whom a vigilance/departmental action is pending has been engaging the attention of the management for some time past. Taking into consideration the extant rules and orders of the Government of India in this regard the following decision has been taken: a) All orders for promotion will be issued only after vigilance clearance. b) *** *** *** c) When an officer has been completely exonerated and he is subsequently promoted, his seniority should be fixed as if he had been promoted in accordance with the position assigned to him in the select list. Period of his eligibility for consideration for promotion to the next higher grade should be reckoned with reference to the date his immediate junior has been promoted. The pay of such an executive on promotion should be fixed notionally by allowing the intervening period during which the officers could not be promoted due to his suspension and/or pending departmental enquiry to be counted for increments in the higher grade but no arrears would be .....

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..... etters issued by the appellants put restrictions on a valuable right of an employee. They therefore, are, required to be construed strictly. So construed there cannot be any doubt whatsoever that the conditions precedent contained therein must be satisfied before any action can be taken in that regard. We may also notice that a revised guideline was also issued on or about 14.5.2002, wherein it was stated; "the Vigilance clearance shall be withheld only on the ground (a) when officer is under suspension (b) when the officer, in respect of whom a charge sheet has been issued and disciplinary proceedings are pending; and (c) when an officer in respect of whom prosecution for a criminal charge is pending." The said circular although is not ipso facto applicable in this case, clearly laws down the law otherwise prevailing. Reliance placed by Mr. Sinha on Manoj Kumar Singh (supra) is wholly misplaced. Therein no law was laid down. It does not contain any ratio decidendi. The question as to whether in absence of any charge sheet or at least in absence of any satisfaction having been arrived by the disciplinary authority that a prima facie case has been made out for proceeding aga .....

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