TMI Blog1998 (7) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Section 24 of the Act lays down that in the discharge of its functions a Regional Rural Bank shall be guided by such directions, in regard to matters of policy involving public interest, as the Central Government may, after consultation with the national Bank for Agricultural and Rural Development [hereinafter referred to as 'the National Bank'], give. Under Section 29 of the Act the Central Government has been empowered to make rules, after consultation with the National Bank and sponsor Bank, for carrying out the provisions of the Act, By clause (ba) of sub-section (2) of section 29, which was inserted by the Regional Rural Banks (Amendment) Act, 1987, the Central Government was empowered to make Rules relating to manner in which the officers and other employees of the Regional Rural Bank shall be appointed. In exercise of the powers conferred under Section 29 read with Section 17 of the Act the Central Government framed the Rules which were published vide Notification dated September 28, 1988. Rule 3 of the Rules provides that the Board of Directors of each Regional Rural Bank may, in consultation with its sponsor Bank, create such number of posts as specified in s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s may be apprised that since the posts of Area Managers/Senior Managers are promotional posts to be filled up 100% by promotion from only one source, the non-selection rule of seniority cum merit has to be applied. This rural envisages promotion by seniority with due consideration to minimum merit/fitness prescribed. Fitness implies that there is nothing against the officer. No disciplinary action is pending against him and none is contemplated. The officer has neither been reprimanded nor any adverse remarks have been conveyed to him in the reasonably recent past. The promotions are meant to be made on the above mentioned consideration. [emphasis supplied ] In accordance with the said circular the National Bank issued a circular dated December 1, 1987 whereby all the Regional Rural Banks were apprised that the matter relating to the promotion of Branch Mangers to the posts of Area/Senior Managers had been examined by it consultation with the Government of India and the Regional Rural Banks were advised as under: - The posts of Area Managers/Senior Managers are promotional posts to be filled up by 100% promotion from only one source and non-selection rule of seniority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve that it fails to take any account of personal merit. It is fair to every official except the best ones, an official has nothing to win or lose provided he does not actually become so inefficient that disciplinary action has to be taken against him. The criterion of merit, on the other hand, lays stress on meritorious performance irrespective of seniority and even a person, though junior but much more meritorious performance irrespective of seniority and even a person, though junior but much more meritorious than his seniors, is selected for promotion. The Court has expressed the view that there should be a correct balance between seniority and merit in a proper promotion policy. the criteria of seniority cum-merit' and 'merit-cum- seniority' which take into account seniority as well as merit seek to achieve such a balance. The principle of 'merit-cum-seniority' lays greater emphasis on merit and ability and seniority plays a less significant role. Seniority is to be given weight only when merit and ability are approximately equal. In the context of Rule 5(2) of the Indian Administrative Service/Indian Police Service (Appointment by promotion) Regulations, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.N. Ray CJ. has thus explained the criterion of 'seniority-cum-merit':- With regard to promotion the normal principles are either merit- cum-seniority or seniority-cum-merit. seniority-cum-merit means that given the minimum necessary merit requisite for efficiency of administration, the senior though the less meritorious shall have priority. [p.930] The learned counsel for the Regional Rural Banks and the promoted officers have, however, placed reliance on Para 7(c) of the Second Schedule to the Rules which prescribes that the mode of selection for promotion would be interview and assessment of performance reports for the preceding three years periods and have submitted that under the criterion of 'seniority-cum-merit', as prescribed under the Rules, comparative merit has to be assessed for the purpose of promotion. Reliance has been placed on the following observations in State of Mysore v. C.R. Seshadri Ors., 1974 (3) SCR 87 : - However, if the criterion for promotion is one of the seniority- cum-merit, comparative merit has to be assessed if length of service is equal or an outstanding junior is available for promotion. [p.89] The learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to define the criterion of 'seniority-cum-merit' and to delineate the fine distinction between the criterion of 'seniority-cum- merit' and the criterion of 'merit-cum-seniority' in the matter of promotion. In the observations on which reliance has been placed by the learned counsel for the Rural Banks and the promoted officers the distinction between 'seniority-cum-merit' and 'merit-cum-seniority' has been obliterated and both the criterion have been equated. Since comparative assessment of merit is required to be made while applying the criterion of 'merit-cum-seniority' has been obliterated and both the criterion have been equated. Since comparative assessment of merit is required to be made while applying the criterion of 'merit-cum-seniority' ad for 'seniority-cum-merit' no such comparative assessment is required, the aforementioned observations in the case of C.R. Seshadri (supra) on which reliance has been placed cannot be regarded as correctly reflecting as to what is meant by the criterion of 'seniority-cum-merit'. In Jagathigowda , C.N. (supra) this Court was dealing with promotion made to the post ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty- cum-merit' because in this case the selection had been made by taking into account the seniority as well as performance and performance was appraised by assigning marks on the basis of performance appraisal and interview. Those who secured 85 marks out of 150 marks were shortlisted for promotion which shows that securing 85 marks out of 150 marks was treated as the minimum standard of merit for purposes of promotion and those who satisfied the said minimum standard were selected for promotion on the basis of seniority. On behalf of the promoted officers it was urged that for the purpose of promotion on the basis of seniority-cum- merit, seniority means the length of service and that among officers who were appointed on the same date and have the same length of service seniority can have no bearing and promotion has to be made on a comparative assessment of merit of such officers. We are unable to agree. while applying the principle of seniority-cum-merit for the purpose of promotion what is required to be considered is inter se seniority of the employees who are eligible for consideration. Such seniority is normally determined on the basis of length of service, but as be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red for the promotion process. B) MODALITIES :- a) Seniority - 45 marks (0.5 marks for each completed month of service over and above the minimum qualifying service) b)Qualification - 5 marks (Minimum qualification applicable to the cadre shall not bereckoned) Post Graduation - 1 Mark Diploma/s - 1 Mark CAIIB - Part I - 1 mark CAIIB - Part II - 2 Marks (c) Leave record - 5 marks (d) Interview - 30 marks (e) Performance - 65 marks 0.2, These promotions will be effective from 1st May, 1988. 0.3. The eligible candidates will be called for the interview directly ( Candidates need not submit any application in this regard) Following the said promotion process eight Branch managers were promoted with effect from May 1, 1988 in proceedings dated May 3, 1988. The Branch Managers who wee promoted as Area/Senior Managers on May 3, 1988 assumed office and their promotions were not questioned by any employee at that time. After the Rules framed by the Central Government vide Notification dated September 28, 1988 came into force the Rayalaseema Grameena Bank, in September 1989, decided to create five posts of Area/senior Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 1242 of 1993, 1232 of 1993 and 1238 of 1993 were filed by the Chairman, Rayalaseema Grameena Bank, and Writ Appeals Nos. 1233 of 1993 and 1234 of 1993 were filed by the five Branch Managers whose promotions as Area/Senior managers made on December 1, 1989 had been quashed by the learned single Judge. Writ Appeals Nos. 1142 of 1993 and 1224 of 1993 were filed by P.V. Krishnamurthy, the petitioner in Writ Petition No. 3546 of 1990 and Writ Petition No. 9692 of 1993 and Writ Appeal No. 1210 of 1993 was filed by two of the petitioners in Writ Petition No. 17279 of 1989. These appeals related to the promotions made on May 3, 1988. In Writ Appeal No. 1142 of 1993 a contention was raised that the promotions made on May 3, 1988 had been questioned in Writ Petition No. 17263 of 1989. The said contention was rejected by the Division Bench of the High Court and it was observed that the prayer in the said writ petition was clear and categorical and no relief was sought for in respect of the promotions made on May 3, 1988. In Writ Appeal No. 1210 of 1993 an application was made seeking amendment of the prayer in Writ Petition No. 17279 of 1989 to challenge the promotions made on May 3, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e view that the Bank had considered the cases of all the eligible officers for promotion to the posts of Area/Senior Managers and only those who secured highest number of marks amongst them were ultimately promoted and that this method of selection is contrary to the principle of 'seniority-cum- merit'. Civil Appeals No. 3799-3803 of 1996 have been filed by the Rayalaseema Grameena Bank, while Civil appeals Nos. 3811-3812 of 1996 have been filed by five Branch managers who have been promoted as Area/Senior managers in the proceeding on December 1, 1989 against this part of the judgment of the High Court. Having heard the learned counsel for the Rayalaseema Grameena bank as well as five branch Managers who had been promoted as Area/Senior Managers in the proceedings on December 1, 1989, we find that no case is made out for interference with the said view of the High Court. The promotion process laid down by the Rayalaseema Grameena Bank in its circular dated September 27, 1989, on the basis of which the selection for promotion had been made on December 1, 1989, sets apart 34 marks for seniority, 10 marks for qualifications, 20 marks for interview and 56 marks for performa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ach HO : PSD on or before 31.03.1992. Otherwise, we will be constrained to assess their performance based on he information available with us. A Committee is constituted for the purpose of conduction interview as per Government of India guidelines. The dates of interview will be intimated to the candidates individually, in due course. In the proceeding held on April 20, 1992 five Branch Managers were promoted as Area/Senior Managers. Three Branch Managers, namely, K. Addanki Babu, P. Raghava Rao and V.C. Krishna Prasad filed writ Petition No. 5204 of 1992 in Andhra Pradesh High Court wherein they challenged the order dated April 20, 1992 regarding the promotion of the said five branch Managers as Area/Senior Managers. The said writ Petition was allowed by the learned single judge by his judgment dated December 17, 1993 wherein he followed the earlier judgement of the learned single judge dated September 7, 1993 given in the Writ Petitions relating to the Rayala Seema Grameena Bank . Writ Appeal No. 417 of 1994 was filed by the Pinakini Grameena Bank, while Writ Appeal No. 422 of 1994 was filed by the promoted officers whose promotion were set aside by the judgment of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Baster Kshetriya Gramin Bank was contained in the circular dated February 16, 1993 . The said selection was made on the basis of interview of all the eligible officers by the Staff Selection Committee as per the Rules and a select list of five persons was prepared and on the basis of the said select list promotions were made. The said promotions were challenged by three officers who, though senior, were no promoted, by filing Writ Petition Nos. 43 and 45 of 1993 in the Madhya Pradesh High court. The said Writ Petitions were allowed by the learned single judge by judgment dated July 24, 1996 on the view that where Rules prescribed promotion on the basis of 'seniority-cum-merit' the seniority has to be give due place and merely because a person has a better merit, he cannot be promoted over and above the person senior to him unless he lacks in qualification or is other wise found to be unfit, i.e., there is nothing against him, and that this was not the position in the instant case and that the concept of seniority had been given no weightage in this case Letters patent Appeals (L.P.A. Nos. 150 and 152 of 1996) filed against the said judgment of the learned single judge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tage for seniority it was provided in Paragraph 2.4 that one mark for each completed year of service in the respective cadre/post, subject to a maximum of 15 marks in respect of promotion from Officer to Area/Senior Manager would be give. It was further:- 2.9. Candidates who have secured less than 40% marks in interview will not be considered for promotion and their names will not be included in the final merit list. 2.10 . This list of successful candidates in the order of total marks obtained will be placed by the Staff selection committee before the Board, duly recommended for consideration for appointment or promotion. (emphasis supplied) On bench of the High Court has followed its earlier judgment dated July 4, 1994 in L.P.A. No. 120 of 1997 which judgment was based on the earlier judgment dated October 9, 1996 passed in L.P.A. No. 151 of 1996 and other connected matters. Civil Appeals arising out of Special Leave Petition (C) Nos. 17780-81 of 1997 filed against the judgment dated October 9, 1996 have been dismissed. For the same reasons, Civil Appeals arising out of Special Leave Petition (C) Nos. 19965-19966 of 1997 are also liable to be dismissed inasmu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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