High Court Punjab-Haryana High Court

Subhash Chander Awasthi And … vs State Of Punjab And Others on 3 July, 2009

Punjab-Haryana High Court
Subhash Chander Awasthi And … vs State Of Punjab And Others on 3 July, 2009
L.P.A.No. 842 of 1992                                          1



      IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                      CHANDIGARH

                                L.P.A.No. 842 of 1992
                                Date of Decision : 03.07.2009

Subhash Chander Awasthi and others                   ...Appellants

                                Versus

State of Punjab and others                           ...Respondents

CORAM:HON'BLE THE CHIEF JUSTICE
     HON'BLE MR. JUSTICE HEMANT GUPTA

Present: Dr. Balram K. Gupta, Sr. Advocate, with
         Ms. Anamika Negi, Advocate,
         for the appellants.
          Mr. H.S.Sidhu, Addl. AG, Punjab.
          Mr. Rajiv Atma Ram, Sr. Advocate, with
          Mr. B.N.S.Sharma, Advocate,
          for respondent Nos.3 and 4.

HEMANT GUPTA, J.

The present appeal under Clause X of the Letters Patent is

against the judgment dated 29.11.1991 passed by learned Single Judge of

this Court in a writ petition filed by the appellants.

The appellants are the Inspectors of Factories governed by

Punjab Labour Service (Class-I and Class-II) Rules, 1955 (hereinafter

called as ‘the Rules’), framed under proviso to Article 309 of the

Constitution of India. The appellants are degree-holders and were

directly recruited to the post of Inspectors of Factories. Though the

appellants have also made grievance in respect of respondent No.5

recruited alongwith appellant No.1 against SC category in the writ

petition, but the said grievance doesn’t subsists and no argument was

raised in the present appeal.

L.P.A.No. 842 of 1992 2

The appellants have averred that respondent Nos.3 and 4 were

not qualified to be appointed to the post of Inspectors of Factories under

the Rules. Respondent No.-3 possess the degree in Chemical

Engineering and respondent No.4 in Civil Engineering, but under the

Rules a degree-holder in Mechanical Engineering or Electrical

Engineering alone is competent to be appointed as Inspector of Factories.

The aforesaid respondents were appointed as Inspectors of Factories in

June 1971 against ex-cadre posts, which are created by an order dated

12.2.1970.

In the seniority list circulated on 23.10.1974, respondent Nos.3

and 4 were reflected as senior to the appellants. The representation by

the appellants against the said seniority list was accepted. The appellants

were shown senior to respondent Nos.3 and 4. Subsequently, the said

respondents were brought into cadre from the date of issue of the

seniority list i.e. 15.10.1974/23.10.1974. It is the case of the appellants

that respondent Nos.3 and 4 could not be brought into cadre by virtue of

executive order without amending Statutory Rules but since respondent

Nos.3 and 4 are placed junior to the appellants, they had no grievance at

that time.

Vide notification dated 11.9.1978 (Annexure P-4), the Rules

were amended retrospectively w.e.f. 12.2.1970 so as to make graduates in

Civil and Chemical Engineering eligible for appointment as Inspectors of

Factories. After the aforesaid amendment, respondent Nos.3 and 4 were

considered senior to the appellants for the purposes of promotion to the

post of Deputy Chief Inspectors of Factories, which fell vacant on
L.P.A.No. 842 of 1992 3

1.11.1978. The said action of the State Government was challenged by

the appellants in CWP No.5134 of 1978. The writ petition was allowed

vide judgment reported as Subhash Chander Avasthi and Others Vs.

State of Punjab and Others 1992(1) SLR 596, when the following order

was passed :

“The seniority of the petitioners vis-a-vis respondent Nos.3 and

4 was thus rightly determined by the Government vide

Annexure P-1 placing the latter at the bottom and the

Government is not justified in treating them (respondent Nos.3

and 4) as senior to the petitioners. However, I cannot restrain

myself from observing that by treating the two posts held by

respondent Nos.3 and 4 as ex-cadre posts, a great hardship

and injustice has been caused to them. As it is not possible in

these proceedings to give any relief, they may approach the

Government to relief them of this hardship by confirming them

from an appropriate date.”

On 15.1.1982, the Rules were repealed with the promulgation

of Punjab Labour (Class-II) Service Rules 1982, (hereinafter called as

‘1982 Rules’). The said Rules contemplate degree in Chemical and Civil

Engineering as the academic qualification for recruitment to the post of

Inspector of Factories. The two ex-cadre posts created on 12.2.1970 were

also included in the cadre of Inspector of Factories with effect from the

date of creation of the posts. 1982 Rules have been amended on

5.11.1982 inserting proviso to Rule 3. Effect of insertion of such proviso

is that respondent Nos.3 and 4 are treated to be in the cadre of Inspectors
L.P.A.No. 842 of 1992 4

of Factories from the date of their initial appointments.

On behalf of the State, it has been averred that respondent

Nos.3 and 4 were taken into service as Inspectors of Factories, Chemical

Engineering and Civil Engineering on 3.6.1971 and 7.6.1971 i.e. earlier

than the appointment of appellants as Inspectors of Factories. It is also

pointed out that two posts, one Inspector of Factories (Civil Engineering)

and another Inspector of Factories (Chemical Engineering) were created

on 12.2.1970. Such posts were created for the reason that different type

of industries are coming up in the State. It was felt that Inspector of

Factories with qualification in Chemical and Civil Engineering would be

necessary for the proper inspection of Factories with a view to safeguard

the interest of workers employed therein. It is averred that Rules were

amended retrospectively to give justice to respondent Nos.3 and 4 and the

notification amending the Rules was issued after following the prescribed

procedure and that the posts have been including in the Rules from the

date of creation of the posts. Such Rules have been amended by giving

justice to the entire class of Officers i.e. Inspector of Factories with

qualification of Civil and Chemical Engineering graduates. Still further

the Rules have been amended keeping in view the hardship which

respondent Nos.3 and 4 were suffering, which was even noticed by this

Court in the earlier writ petition filed by the appellants.

The learned Single Judge dismissed the writ petition, inter-alia,

holding that inclusion of certain posts in the cadre of particular service

cannot be said to mean that the initial appointment as such was illegal

and irregular. It is open to the authorities to change the cadres including
L.P.A.No. 842 of 1992 5

the posts of one cadre into other in the exigency of administration.

Respondent Nos.3 and 4 had degrees in Civil and Chemical Engineering

and were getting the same pay scale and are appointed prior to the

appellants. The learned Single Judge also held that the amendment in the

Rules cannot be said to be arbitrary as the proviso has been added simply

with a view to ameliorate the lot of respondent Nos.3 and 4, who had

come into service prior to the appellants and are yet shown juniors to

them. With such finding recorded, the writ petition was dismissed.

The grievance of the appellants is that by virtue of such

amendments in 1982 Rules, respondent Nos.3 and 4 have been given

seniority over them and that such amendment is wholly illegal and

against the provisions of Articles 14 and 16 of the Constitution of India.

It is argued that the appellants have been shown senior to respondent

Nos.3 and 4 after 13 years and by virtue of amendment in the Rules with

retrospective effect, the service career of the appellants has been

adversely affected. It is argued that the insertion of proviso vide

notification dated 5.11.1982 is retrospective in operation and, therefore,

the vested rights of the appellants to be senior to respondent Nos.3 and 4

cannot be taken away by such amendment. It is also contended that

proviso has been apended to 1982 Rules though substantially the proviso

has the effect of amending 1955 Rules. It is, thus, contended that

repealed Rules cannot be amended. Therefore, the rights of the

appellants for promotion cannot be tinkered with by the respondents.

Such action is illegal and not sustainable.

L.P.A.No. 842 of 1992 6

Mr. Rajiv Atma Ram, learned Senior Advocate, representing

respondent Nos.3 and 4, has vehemently argued that the Rules can be

amended retrospectively and that neither the seniority nor the chances of

promotion are the vested rights. Since, neither the seniority nor the

further chances of promotion are the vested rights, therefore, the

appellants cannot impugn the amendments effected, which were

incorporated so as to remedy the hardship caused to respondent Nos.3

and 4 on account of omission of the State Government in making

appointments without suitably amending the Rules. Reliance is placed

upon Union of India and Others Vs. Dr. S. Krishna Murthy and Others

(1989) 4 Supreme Court Cases 689 and Chairman, Railway Board and

Others Vs. C.R.Rangadhamaiah and Others etc. (1997) 6 SCC 623.

We have heard learned counsel for the parties at length. In

B.S.Yadav and Others Vs. State of Haryana and Others AIR 1981 SC

561, the Hon’ble Supreme Court held that the proviso to Article 309

provides that until the State Legilature passes law on the particular

subject, it shall be competent for the Governor of the State to make Rules

in case of services and posts in connection with the affairs of the State.

The Governor thus steps in when the legislature does not act. It was held

to the following effect :

44. …..The power exercised by the Governor under the proviso

is thus a power which the legislature is competent to exercise

but has in fact not yet exercised. It partakes of the

characteristics of the legislative, not executive, power. It is

legislative power…..

L.P.A.No. 842 of 1992 7

45. That the Governor possesses legislative power under our

Constitituion is incontrovertible and, therefore, there is

nothing unique about the Governor’s power under the proviso

to Article 309 being in the nature of a legislative power…..

…..The power of the Governor under the proviso to Article 309

to make appropriate rules is of the same kind. It is legislative

power. Under Article 213, he substitutes for the legislature

because the legislature is in recess. Under the proviso to

Article 309, he substitutes for the legislature because the

legislature has not yet exercised its power to pass an

appropriate law on the subject.

76. ….. Since the Governor exercises a legislative power under

the proviso to Article 309 of the Constitution, it is open to him

to give retrospective operation to the rules made under that

provision. But the date from which the rules are made to

operate must be shown to bear, either from the face of the

rules or by extrinsic evidence, reasonable nexus with the

provisions contained in the rules, especially when the

retrospective effect extends over a long period as in this case.

In Dr. S. Krishna Murthy’s case (supra), the challenge was to

Rule 3(2)(d) of Indian Forest Service (Regulation of Seniority) Rules,

1968, and similar Rule of Indian Police Service (Regulation of Seniority)

Rules, 1954. By virtue of the impugned Rules, the past service rendered

by Emergency Commissioned Officers and Short Service Commissioned

Officers in the Army, was to be taken into consideration for determining
L.P.A.No. 842 of 1992 8

year of allotment. The argument that the impugned Rules take away the

vested rights of the respondents of seniority and, consequently, pre-

judicially affects their rights, was negatived. It was found that seniority

of the respondents is not taken away or interfered with by the impugned

Rules. The year of allotment of the respondents remain the same as the

impugned Rules only provided for weightage to Emergency

Commissioned Officers and Short Service Commissioned Officers, for

their past services in the Army during the Emergency period. The Court

held to the following effect :

17. …… It is submitted by the learned counsel that as the

respondents have acquired a particular seniority, Section 3 of

the Act as amended, if read as suggested by the army officers,

would contravene the fundamental rights of the respondents.

This extreme contention is not sustainable on the face of it, for

even assuming that the seniority of the respondents or their

chances of promotion are affected by the impugned Rules,

surely it cannot be said that there has been a contravention of

the fundamental rights of the respondents. Nobody has any

fundamental right to a particular seniority or to any chance of

promotion.

In Indian Administrative Service (S.C.S.) Association, U.P.

and Others Vs. Union of India and Others 1993 (1) SLR 69 (S.C.), the

amendment to All India Services (Regulation of Seniority) Rules, 1987

was upheld as it was found that the amendment has been incorporated to

prevent injustice to the officers recruited and promoted earlier than the
L.P.A.No. 842 of 1992 9

officers promoted later. It was also held that there is distinction between

the right and interest. No one has a vested right to promotion or

seniority, but an officer has interest to seniority acquired by working out

the Rule. It was further held that sub Section 1-A of Section 3-A of All

India Services Act enjoins the authorities not to give retrospective effect

to such a Rule or Regulation so as to avoid “prejudicial affect or the

interest” of any person to whom such Rule may be applicable. The

operation of law may have the effect of postponing the future

consideration of the claim or legitimate expectation of the interest for

promotion. It was held that there is no vested right to seniority and it is

variable and defeasible by operation of law.

In C.R.Rangadhamaiah’s case (supra), a Constitution Bench

held that once a person joins service under the Government, the

relationship between him and the Government is in the nature of status

rather than contractual and the terms of his service while he is in

employment are governed by Statute or Statutory Rules, which may be

unilaterally altered without the consent of the employee. It was held that

though the Rules framed under proviso to Article 309 of the Constitution

can have prospective or retrospective operation, but the said Rules may

be open to challenge on the ground of violation of the provisions of the

Constitution including the fundamental rights contained in Part-III of the

Constitution. It was held that a Rule which seeks to reverse from an

anterior date a benefit which has been granted or availed i.e. promotion or

pay scale, can be assailed as being violative of Articles 14 and 16 of the

Constitution to the extent it operates retrospectively. The judgments
L.P.A.No. 842 of 1992 10

striking down the provisions giving retrospective operation so as to have

an adverse effect in the matter of promotion and seniority were found to

be not correct law. It was held to the following effect :

24. …… In many of these decisions the expressions “vested

rights” or “accrued rights” have been used while striking down

the impugned provisions which had been given retrospective

operation so as to have an adverse effect in the matter of

promotion, seniority, substantive appointment etc. of the

employees. The said expressions have been used in the context

of a right flowing under the relevant rules which was sought to

be altered with effect from an anterior date and thereby taking

away the benefits available under the rule in force at that time.

It has been held that such an amendment having retrospective

operation which has the effect of taking away a benefit already

available to the employee under the existing rule is arbitrary,

discriminatory and violative of the rights guaranteed under

Articles 14 and 16 of the Constitution. We are unable to hold

that these decisions are not in consonance with the decisions in

Roshan Lal Tandon, B.S.Yadav and Raman lal Keshav Lal

Soni.

The Constitution Bench in S.S.Bola Vs. B.D.Sardana (1997) 8

SCC 522, examined the amendment in the Rules affecting seniority of the

members of service by way of enactment by State giving retrospective

effect. It was held that there is distinction between right and interest.

Seniority is a facet of interest and is governed by the existing Rules. No
L.P.A.No. 842 of 1992 11

one has a vested right to promotion or seniority. But a Officer has a

interest to seniority acquired by working out the Rules. Right to be

considered for promotion is a Rule prescribed by conditions of service. A

Rule which affects the promotion of a person relates to conditions of

service. The Rule merely affecting the chances of promotion cannot be

regarded as varying the conditions of service. Chances of promotion are

not conditions of service and a Rule which affects the chances of

promotion does not amount to change in the conditions of service.

Hon’ble Mr. Justice Sagir Ahmed, concurring with the above majority

view held to the following effect :

199. To the said effect the judgment of this Court in the case of

State of Punjab V. Kishan Das wherein this Court observed an

order forfeiting the past service which has earned a

government servant increments in the post or rank he holds,

howsoever adverse it is to him, affecting his seniority within

the rank to which he belongs or his future chances of

promotion, does not attract Article 311(2) of the Constitution

since it is not covered by the expression reduction in rank.

200. Thus to have a particular position in the seniority list

within a cadre can neither be said to be accrued or vested

right of a government servant and losing some places in the

seniority list within the cadre does not amount to reduction in

rank even though the future chances of promotion get delayed

thereby. It was urged by Mr. Sachar and Mr. Mahabir Singh

appearing for the direct recruits that the effect of
L.P.A.No. 842 of 1992 12

redetermination of the seniority in accordance with the

provisions of the Act is not only that the direct recruits lose a

few places of seniority in the rank of Executive Engineer but

their future chances of promotion are greatly jeopardised and

that right having been taken away the Act must be held to be

invalid. It is difficult to accept this contention since chances of

promotion of a government servant are not a condition of

service. In the case of State of Maharashtra V. Chandrakant

Anant Kulkarni, this Court held :

“16. Mere chances of promotion are not conditions of

service and the fact that there was reduction in the

chances of promotion did not tantamount to a change in

the conditions of service. A right to be considered for

promotion is a term of service, but mere chances of

promotion are not.”

205. In the aforesaid premises, it must be held that the direct

recruits did not have a vested right nor had any right accrued

in their favour in the matter of getting a particular position in

the seniority list of Executive Engineers under the pre-

amended Rules which is said to have been taken away by the

Act since such a right is neither a vested right of an employee

nor can it be said to be an accured right. Thus there is no bar

for the legislature to amend the law in consequence of which

the inter se position in the rank of Executive Engineer might

get altered.

L.P.A.No. 842 of 1992 13

A perusal of the record would show that the Rules as initially

framed did not contemplate direct recruitment to the post of Inspector of

Factories from amongst candidates having degree in Civil and Chemical

Engineering. Two posts of Inspectors of Factories were created on

12.2.1970. Respondent Nos.3 and 4 were appointed against said posts of

Inspectors of Factories by the State Government in consultation with

Punjab Public Service Commission. Thus, respondent Nos.3 and 4 were

appointed after complying with the procedure required for making

appointments against the public posts. It was on 15.10.1974 (Annexure

P-1), the ex-cadre posts held by respondent Nos.3 and 4 were brought on

the cadre of Punjab Labour Service (Class I and II). On 29.12.1975

(Annexure P-3), the temporary posts of Inspector of Factories (Civil and

Chemical) were converted into permanent posts as well. The Rules were

amended on 11.9.1978 (Annexure P-4) w.e.f. 12.2.1970 i.e. the date when

two ex-cadre posts were created temporarily to be filled up from

candidates having educational qualification of Chemical and Civil

Engineering to the post of Inspector of Factories.

It appears that respondent Nos.3 and 4 were appointed as

Inspectors of Factories by the State Government without making suitable

amendments in the Rules. The inaction or omission of the State

Government has led to seniority dispute between the parties. After

amendment in the year 1978 contemplating that the posts of Inspectors of

Factories can be filled up with educational qualification of degree in Civil

and Chemical Engineering, the State Government treated respondent

Nos.3 and 4 senior to the appellants. Such action was found to be
L.P.A.No. 842 of 1992 14

unjustified in the earlier writ petition filed by the appellants. It was also

noticed that if two posts held by respondent Nos.3 and 4 are treated as ex-

cadre posts, it shall cause great hardship and injustice to the said

respondents. It was the said injustice and hardship which was sought to

be removed by inserting the proviso vide notification dated 5.11.1982.

The appellants have no vested rights either in maintaining seniority or in

the chances of promotion as held by the judgments aforesaid. The date

of appointment of the appellants has not been altered. What has been

altered is placement of respondent Nos.3 and 4, that too from the date,

they were actually appointed. Therefore, the mere fact that respondent

Nos.3 and 4 now rank senior to the appellants, cannot be said to be

illegal, arbitrary or discriminatory violating any of the fundamental rights

of the appellants.

The other argument that the amendment on 5.11.1982 carried

out in 1982 Rules in fact amends 1955 Rules, is again misconceived. The

amendment has the effect of rectifying an apparent omission. The

mistake was sought to be rectified as 1982 Rules alone were in operation

at that time. Therefore, it cannot be said that action in giving

retrospective effect to the Rules lacks any legislative incompetence.

In view of above discussion, we do not find any merit in the

argument raised by the learned counsel for the appellants. Consequently,

the appeal is dismissed with no order as to costs.

             (T.S.THAKUR)                            (HEMANT GUPTA)
             CHIEF JUSTICE                               JUDGE
03.07.2009
Vimal