Delhi High Court High Court

Delhi Development Authority vs Jai Singh & Others on 15 April, 2009

Delhi High Court
Delhi Development Authority vs Jai Singh & Others on 15 April, 2009
Author: Sudershan Kumar Misra
                 IN THE HIGH COURT OF DELHI AT NEW DELHI

                       CIVIL APPELLATE JURISDICTION

                   LETTER PATENT APPEAL NO. 2115 OF 2006


                                        Reserved On : January 13, 2009
                                       Date of Judgment : April 15, 2009


Delhi Development Authority                           ................Appellant
                                Through Mr. Arun Birbal, Advocate


                                  Versus

Jai Singh & Others                                     .......Respondents
                                Through Mr. J.P.Sengh, Sr. Advocate
                                with Ms. Garima Kapoor, Advocate


CORAM :

        HON'BLE MR. JUSTICE SANJAY KISHAN KAUL
        HON'BLE MR. JUSTICE SUDERSHAN KUMAR MISRA


1.      Whether Reporters of local papers may be allowed to see the
        judgment?                    Yes

2.      To be referred to the Reporter or not?        Yes

3.      Whether the judgment should be reported in the Digest?      Yes


SUDERSHAN KUMAR MISRA, J.

1. This appeal under Letters Patent has been preferred by

Delhi Development Authority (DDA) impugning the decision of a Single

Judge of this Court whereby the DDA was directed to apply the

Assured Career Progression Scheme (ACP of 1999) to the respondents

in terms of circular dated 14th October, 1999, issued by the DDA.

LPA No. 2115 of 2006 Page 1 of 16

2. The facts necessary for the decision of this appeal are as

follows:-

The DDA had recruited the respondents as Stenographers

between January, 1980 and March, 1981. At that time, the DDA had

one cadre of, “Stenographers”, in the pay scale of Rs. 330-700. Later

on, from Ist January, 1986, this cadre was bifurcated into two cadres,

namely, “Stenographers” and “Senior Stenographers”. The newly

formed cadre of Stenographers was assigned the pay scale of Rs. 330-

560 while that of Senior Stenographers was given the pay scale of

Rs. 425-700. This is stated to have been done to implement the

recommendations of the Fourth Pay Commission. In this context, the

report of the Committee constituted by the DDA to go into the

question of adoption in the DDA of all the orders of the Government of

India relating to the Fourth Pay Commission becomes relevant. This

Committee came to be appointed consequent upon a resolution

passed by the DDA adopting the entire package of recommendations

of the Fourth Pay Commission in respect of group B, C and D

employees of the Central Government as accepted by the Government

of India, for similar employees of the DDA. The Committee felt that

the basic anomaly in accepting the recommendations was in

connection with the pay-scale of Stenographers in the DDA. After

examining the scales of Stenographers in the Government of India and

also the method of recruitment thereto, it found that as against two

scales of Stenographers in the government of India, in the DDA, there

was only one cadre of Stenographers and that the existing scale of

Stenographers in the DDA was a combination of the two scales of

LPA No. 2115 of 2006 Page 2 of 16
Stenographers that existed in the Government of India. The

Committee felt that since there was no pre-revised scale in the

Government of India corresponding to the DDA’s scale of Rs. 330-700

for Stenographers, it found it difficult in relating this existing scale of

Stenographers in the DDA with the revised scales that were to be

adopted in terms of the aforesaid resolution of the DDA. It also

noticed two other prominent variations in the scale of the

Stenographers in the DDA as compared to the two scales of pay

admissible to Stenographers in the Central Government. They were;

“(a) The rate of increment is Rs. 15/- which is
that of the scale of Senior Stenographer while
scale starts at Rs. 330/-, i.e. the beginning of
lower scale of the Jr. Stenographer.

(b) At the stage of E.B., there is a lump sum
jump of Rs. 50/- as against the normal practice of
one increment which is allowed to all officials at
the stage of crossing of E.B.”

It is with a view to overcoming these difficulties, and a view to

implementing the decision of the DDA to adopt the recommendations

of the Fourth Pay Commission, that the Committee examined various

alternatives and ultimately decided to recommend the adoption of both

the scales prevalent in the Central Government by placing some posts

in the Junior Scale and some in the Senior Scale. It suggested that

the existing, single cadre, be split into a Junior Scale and Senior Scale

and some of the posts be placed in the Junior Scale while others be

placed in the Senior Scale. In recommending the placement of certain

posts in the Senior Scale, the Committee gave the following reasoning:

“…..the Committee felt that in any case
Stenographers who have already crossed the

LPA No. 2115 of 2006 Page 3 of 16
stage of E.B., i.e. Rs. 405 in the pre-revised scale
will have their initial scale fixed at a stage above
Rs. 1400/- and in a way can be considered
equivalent to the Senior Stenographers.”

[ Emphasis Added ]

The Committee, therefore, felt that Stenographers recruited prior to

1980 would automatically be placed in the senior category. At the

same time, Stenographers recruited during 1981 also be allowed to be

placed in the senior scale, “considering the initial recruitment and

experience having already been put in by them.” Even as regards

Stenographers recruited during the year 1983, the same

recommendation was made. In addition, the Committee also

recommended that those Stenographers who had joined the DDA after

Ist January, 1983 be initially placed in the cadre of Stenographers and

then in the cadre of Senior Stenographers after completion of three

years service. It felt that in this way till 1989, all Stenographers that

had been recruited till Ist January, 1986 would be in the cadre of

Senior Stenographers. It also recommended that after Ist January,

1986, all recruitment be made only at the level of Stenographers.

Significantly, the Committee clarified that the placing of the

Stenographers in the senior scale, “will be considered as personal to

the officials and will not tantamount to creation of these posts in the

senior scale.” These recommendations were made by the Committee

on 19th January, 1987, and were duly approved and adopted by the

DDA on 13th March, 1987. Consequently, the DDA sanctioned a

revised pay scale of Rs. 1400-2300 to such of the Stenographers who

were recruited upto 31st December, 1986 on their completion of three

LPA No. 2115 of 2006 Page 4 of 16
years of service. It is in this manner that the petitioners before the

Single Judge came to be placed in the post of Senior Stenographers.

It might be noted that nothing has been shown to us from the records

to indicate any proposal or decision to promote the respondents to the

next post or even any decision taken to the effect that the placing of

all Stenographers who were recruited up to 31st December, 1986 in

the senior scale of Rs. 1400-2300 shall be considered as having been

promoted to that post. On the contrary, while recommending the

placement of officers, such as the respondents, in the scale of

Rs. 1400-2300, the Committee had categorically stated that this scale

will be considered personal to the officials and will not tantamount to

creation of these posts in the senior scale.

3. At the time when the respondents were initially recruited

to the post of Stenographers, the next promotion, to which they would

have been entitled, was to the post of Private Secretary. It is

nobody’s case that the respondents have in fact been promoted to

that post at any time up to now. We also note that the initial pay-

scale of Rs. 330-700, to which the respondents were recruited, was

revised from time to time only on the basis of recommendation of the

various Pay Commissions and on receipt of orders from the Ministry of

Urban Development and in fact they had never been granted any

promotion at any point of time and no such entry had been made in

their service records.

4. Thereafter, with effect from Ist January, 1996, Fifth Pay

Commission recommended implementation of the Assured Career

Progression Scheme (ACP Scheme) to Central Government employees.

LPA No. 2115 of 2006 Page 5 of 16
The “conditions for grant of benefits under the ACP Scheme”, that has

been annexed by the appellants along with the office memorandum of

the Government of India dated 9th August, 1999 setting out the

salient features of the Scheme, states that the ACP Scheme is aimed

at dealing with stagnation and hardship faced by employees “due to

lack of adequate promotional avenues”. It further states that the

benefits of the Scheme shall be available to Group B, C and D

employees on completion of 12 years and 24 years of regular service.

The first financial upgradation under the ACP Scheme shall be allowed

after 12 years of regular service and the second upgradation after 24

years of regular service. The conditions which are set down in

Annexure 1 to the aforesaid memorandum dated 9th August, 1999,

filed by the respondents before the Single Judge, inter alia, state as

follows:-

“Two financial upgradation under the ACP Scheme in
the entire government service career of an
employee shall be counted against regular
promotion including institute promotion and first-

tract promotion availed through limited
departmental competitive examination availed from
the grade in which an employee was appointed as a
direct recruit. This shall mean that two financial
upgradations under the ACP Scheme shall be
available only if no regular promotions during the
prescribed periods (12 and 24 years), have been
availed by an employee. If an employee has already
get one regular promotion, he shall qualify for the
second financial upgradation only on completion of
24 years of regular service under the ACP Scheme.
In case two prior promotions on regular basis have
already been received by an employee, no benefit
under the ACP Scheme shall accrue to him.”

LPA No. 2115 of 2006 Page 6 of 16

It further states as follows:-

“The financial upgradation under the ACP Scheme
shall be purely personal to the employee and shall
have no relevance to his seniority position. As such
there shall be not additional financial upgradation
for the senior employee on the ground that the
junior employee in the grade has got higher pay
scale under the ACP Scheme.”

And that,

“The Financial benefit allowed under the ACP
Scheme shall be final and no pay fixation benefit
shall accrue at the time of regular promotion i.e.
posting against as functional post in the higher
grade.”

On 14th October, 1998, the aforesaid ACP Scheme was adopted by

the DDA.

5. Brief submissions have been filed by both parties. In their

submission, the appellant-DDA contends that as a matter of fact, the

respondents have already received one promotion, and therefore, they

are not entitled to benefits equivalent to two promotions. According to

the DDA, it was merely by chance that the respondents happened to

be recruited in the DDA when there happened to be a single cadre of

Stenographers in the pay scale of Rs. 330-700. They submit that

before 14th February, 1979, there existed two cadres, one of

Stenographers in the pay-scale of Rs. 330-560, and the other of

Senior Stenographers in the pay-scale of Rs. 425-700. At that time,

the former cadre of Stenographers was the feeder cadre for the cadre

of Senior Stenographers and consequently Stenographers were

promoted to the post of Senior Stenographers. It is the case of the

LPA No. 2115 of 2006 Page 7 of 16
appellants that since the decision was taken to bifurcate the single

cadre of Stenographers to which cadre the respondents were

appointed, once again into the two cadres that originally existed

before 14th February, 1979 in order to remove the anomalies that

would arise whilst implementing the decision of the DDA to adopt and

implement the recommendations of the Fourth Pay Commission, the

respondents have received one promotion since they have been placed

on senior scale on the recommendation of the Committee.

6. We do not agree. The respondents were recruited by the

DDA as Stenographers in a particular scale of pay against a

designated post in a specified cadre. Admittedly, at that time, there

was only one cadre of Stenographers. The next promotional post was

the post of Private Secretary. The cadre was split into two with a view

to implementing the recommendations of the Fourth Pay Commission.

On the other hand, the object of the ACP Scheme was quite different.

It was adopted to deal with the problem of stagnation due to lack of

adequate promotional avenues to whose working in the cadre of

Stenographers in the organization. It is obvious that the need for

extending the benefit as recommended by the Fifth Pay Commission

for Central Government employees of the ACP Scheme to all its Group

B, C and D employees was also felt by the DDA because there was

stagnation and a lack of adequate promotional avenues. The

respondents fall within the scope of this Scheme. After their

appointment as Stenographers, the next promotion for the

respondents was to the post of Private Secretary, and thereafter to

Deputy Director. Admittedly, this has not been attained by some

LPA No. 2115 of 2006 Page 8 of 16
officers of this cadre for 12 to 24 years. Under these circumstances,

for the DDA to contend that since the measures recommended by an

expert Committee to resolve an anomaly that was likely to arise in the

straight forward application of the decision of the Central Government

to implement the recommendations of the Fourth Pay Commission qua

Central Government employees, to the existing cadre of

Stenographers of DDA, cannot mean that while doing so, the DDA has

in fact given one promotion to some of the Stenographers.

Significantly, even the aforesaid Committee of the DDA which went

into this aspect, does not state that those officers who have been

recommended by it to be placed in the Senior Scale be deemed to be

promoted either to the post of Senior Stenographer or to the next

promotional post of Private Secretary in existence according to the

hierarchy when they were recruited. For that reason, therefore, the

contention of the appellants that the placing of the respondents in the

senior scale after the bifurcation of their own cadre amounts to

promotion, cannot be accepted.

7. In this context, we might also advert once again to the

conditions for grant of benefits under the ACP Scheme reproduced

above, which states clearly that the financial upgradations envisaged

under the Scheme, “shall be counted against regular promotion …..”

and that the same shall be available, “only if no regular promotions ….

have been availed by an employee”, and that the benefit shall not be

available to the employee in case he has already received, “two prior

promotions on regular basis …….” Clearly, the Scheme envisaged that

those who had received, “regular promotions” would not be entitled to

LPA No. 2115 of 2006 Page 9 of 16
its benefits. The word “regular” is defined by the Concise Oxford

Dictionary, 8th Edition, as, “1. conforming to a rule or principle;

systematic” and “done or recurring uniformly or calculably in time or

manner, conforming to a standard of etiquette or procedure;”

“according to convention, properly constituted or qualified” and the

word, “promote” is defined as “advance or raise (a person) to a higher

office, rank, etc.” In the expression, “regular promotion” employed in

the Scheme, the word ‘regular’ has been used as an adjective to

define the word ‘promotion’ which has been used as a noun. In other

words, the type of promotion that may disentitle an employee to the

benefit of the ACP Scheme must be one that can be regarded as one

that was given in a, “regular”, manner, i.e., conforming to a standard

of procedure according to convention or the Rules, for which the

officer is fully qualified and for which all formalities are complied with.

Here, conventionally, the next promotional post, to which the

respondents could have aspired after recruitment to the post of

Stenographer, was that of Private Secretary. Admittedly, they were

never promoted to this post. In addition, the Committee also did not

recommend any deemed or actual promotion for the respondents even

to the post of Senior Stenographers. In addition, admittedly, there is

no entry in their service record indicating that they have been granted

any promotion to any post. Furthermore, any doubt that we may

have had in this regard have also been removed by a clarification

issued by an office memorandum dated 10th February, 2000 issued by

the DoPT where it is pointed out that even in case where, as a result

of rationalization of pay-scales, two posts carrying different pay-scales

LPA No. 2115 of 2006 Page 10 of 16
constituting two rungs in a hierarchy have now been placed in the

same pay-scale, as a result of which, the feeder and promotion grades

in the pre-merged scenario have become one grade, for the purpose

of application of the ACP Scheme, the promotion from the lower to the

higher rung of the pre-merged pay-scales shall be ignored, and an

employee who got promoted from the lower pay-scale to the higher

pay-scale as a result of promotion before the merger of the pay-

scales, shall nevertheless be entitled under the ACP Scheme ignoring

that promotion. It, therefore, follows that if the intent is to grant

benefit even to those employees who have actually been duly

promoted from the feeder cadre to the next cadre before the two were

unified, then there can be no question of denying benefit to those who

were part of a single cadre which was split into two later on by

creating a feeder cadre and the promotion cadre, and some officers,

such as the respondents, were then merely, “placed”, in the higher

cadre at the time of the split and were not even promoted to the

same.

8. The expression, “cadre”, is ordinarily used to denote the

permanent establishment of a regiment forming the nucleus for

expansion at time of need. In service jurisprudence, the term has a

definite legal connotation and in Director General of Health

Services & Ors. vs. Bikash Chatterjee & Ors. AIR 1969 Calcutta

525, the expression “cadre” has been held to mean not a post but a

strength of the establishment and in State of U.P. and others vs.

J.P.Chaurasia and Ors. (1989 ) 1 SCC 121, it has been held that

promotion from one post to another is associated with advancement to

LPA No. 2115 of 2006 Page 11 of 16
a higher office, climbing one more ladder in the service career but a

different grade for persons for the same cadre even on seniority-cum-

merit with the same work and responsibility cannot amount to

promotion. In M.Umar Farooq Hussain and Ors. vs. The

Managing Director, Chennai Metropolitan Water Supply,

Sewerage Board and General Manager and Ors. decided by

Hon’ble Madras High Court in Writ Petition (C) Nos. 45840 of 2002 and

3626 of 2003 on 19th June, 2003, it was held that whatever benefits

accrue as a result of merger or re-designation cannot be interpreted

either as promotion or appointment in a new cadre. Here, in the

instant case also, in our view, the respondents were merely

re-designated on the recommendations of an Expert Committee with

the intention of resolving an anomaly in adopting the decision of the

Central Government to implement the recommendations of the Fourth

Pay Commission qua Stenographers in the DDA. Significantly, the

Committee itself had clarified that the placing of the Stenographers in

the Senior Scale will be personal to the officials and will not

tantamount to the creation of these posts in the Senior Scale. As we

understand it, apart from re-designating the post of the respondents,

no additional benefits were conferred upon them. Their salary, pay

and allowances remained the same. Consequently, to our mind, such

re-designation cannot be interpreted as a promotion.

9. It is also noteworthy that when the respondents were

appointed, both the posts of Stenographers and Senior Stenographers

did not exist. There was merely one post of Stenographer in the pay-

scale of Rs. 330-700. Over a period of time, this scale was revised

LPA No. 2115 of 2006 Page 12 of 16
from time to time on the basis of various pay commissions and orders

of the Ministry of Urban Development to Rs. 1640-2900. This was a

completely different post and the Committee looking into the matter of

the adoption of the recommendations of the Fourth Pay Commission

felt that all Stenographers could not have been put in a single cadre

equivalent to any existing Cadre in the Government of India. This is

because as noted above, the initial recruitment to the post of

Stenographers in the DDA, of persons such as the respondents, was in

a scale that was higher than that of the Junior Scale Stenographers

with the Government of India and lower than that of the Senior Scale

Stenographer. It is for this reason that the Committee was

constrained to recommend that persons such as the respondent be

merely, “placed” in the newly created cadre of Senior Stenographers.

What the Committee was doing was that it was merely working out an

equivalence within the newly created hierarchy and had determined

that the position held by the respondents be considered equivalent to

that of a Senior Stenographer. It is perhaps for this reason that no

recommendation of any deemed promotion of the respondents to the

post of Senior Stenographer was made. The object of the ACP

Scheme was to deal with stagnation and hardship faced by employees,

due to “lack of adequate promotion avenues”. Under the Scheme, if

the incumbent had not received any, “regular promotions”, during the

prescribed periods, he would be entitled to the financial upgradation

envisaged therein. Nothing prevented the aforesaid Committee

constituted by the DDA to recommend that officers such as the

respondents be promoted, or be deemed to be promoted, to the post

LPA No. 2115 of 2006 Page 13 of 16
of Senior Stenographer whilst recommending the division of the cadre

of Stenographers into two cadres of Stenographer and Senior

Stenographers, thereby disentitling these officers from the benefit of

ACP Scheme with regard to at least one regular promotion, but it did

not do so. Even the DDA restricted itself to merely accepting the

recommendations of the Committee and did not think it fit to make

any changes to those recommendations. In the absence of any

specific order promoting the respondents to the post of Senior

Stenographers, the only conclusion that follows can be that the

respondents’ post has merely been re-designated.

10. It is further noteworthy that even the establishment order

issued by the DDA on 28th August, 1992 dealing with the revision of

pay-scales of Stenographers whereby it had resolved to revise the

pay-scales of Stenographers to Rs. 1400-2600 with effect from Ist

January, 1986 made it clear that the Stenographers placed in the

scale of Rs. 1400-2300, to which the respondents belong, “will

henceforth be designated as Senior Stenographers”, and not that they

will stand promoted to that post”.

11. We might add that the Fourth Pay Commission was

concerned with adequacy of scales of pay of various employees and

with a view to implementing the same, the respondents were, “placed”

as, “Senior Stenographers”. There was no scope for any promotion in

this context and nor was any promotion granted. On the other hand,

the ACP Scheme is concerned with the lack of promotional avenues

and not with any scales of pay. Under it, certain ameliorative

packages have been granted to mitigate the frustration and

LPA No. 2115 of 2006 Page 14 of 16
inadequacy due to lack of promotion over a span of 12 to 24 years of

service. The two are independent of each other and, subject to the

terms and conditions mentioned in each of them, both must be applied

independently.

12. For all the aforesaid reasons, we do not agree with the

contentions of the appellants that the respondents have already

received one promotion and therefore, they are not entitled to the

benefit under the ACP Scheme. The facts show that the post on which

respondents are working was merely re-designated as that of Senior

Stenographer as recommended by the Committee itself, and that the

respondents were merely “placed”, in that post and not promoted to

that post. The other contention of the appellants that the

respondents, “are merely trying to take advantage of chance situation

that they joined DDA between 1st January, 1979 and 1st January, 1986

when there was a unified cadre of Stenographers,” has no force. We

are unable to really comprehend what the expression, “chance

situation” employed by counsel for the appellant in his synopsis really

means in the context. The respondents were recruited against a

particular post in a particular cadre. The fact that the cadre came into

existence after 1st January, 1979 is really of no consequence. The

terms and conditions of the recruitment were unequivocal and the

expert Committee has sought to resolve the dilemma by

recommending the creation of two cadres at par with the cadres of

Stenographers and Senior Stenographers with the Central

Government and recommended only the, “placement” of the

respondents to the post of Senior Stenographer. Even a “deemed

LPA No. 2115 of 2006 Page 15 of 16
promotion” was not recommended nor was any promotion actually

made. This has been done for good reasons.

13. Consequently, we do not find any infirmity in the decision

of the learned Single Judge and the same is upheld. The DDA is

granted three months’ time to implement the decision of the learned

Single Judge delivered on 2nd August, 2006.

14. The appeal is dismissed. Each respondent shall be paid

Rs. 7,000/- by the appellant towards costs.

SUDERSHAN KUMAR MISRA, J.

SANJAY KISHAN KAUL, J.

New Delhi
April 15, 2009.

LPA No. 2115 of 2006 Page 16 of 16