High Court Kerala High Court

N. Krishnan vs Syndicate Bank on 9 November, 2010

Kerala High Court
N. Krishnan vs Syndicate Bank on 9 November, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 16893 of 2005(J)


1. N. KRISHNAN, MANAGER SCALE II,
                      ...  Petitioner

                        Vs



1. SYNDICATE BANK, REPRESENTED BY ITS
                       ...       Respondent

2. GENERAL MANAGER (PERSONNEL),

3. DY.GENERAL MANAGER (PERSONNEL),

4. MURALEEDHARAN K.P., CHIEF MANAGER,

5. K. MATHANASEKHARAM, CHIEF MANAGER,

                For Petitioner  :SRI.P.SANKARANKUTTY NAIR

                For Respondent  :SRI.M.P.ASHOK KUMAR

The Hon'ble MR. Justice S.SIRI JAGAN

 Dated :09/11/2010

 O R D E R
                        S. SIRI JAGAN, J.
                 -----------------------------------
                   W.P.(C) No.16893 OF 2005
               ---------------------------------------
           Dated this the 9th day of November, 2010

                           JUDGMENT

The petitioner was originally recruited as an Officer Trainee

in the 1st respondent Bank on 12.12.1977. He was confirmed in

the post of Junior Management Grade Scale-I (JMGS-I) on

18.12.1978. The next post to which the petitioner can aspire for

promotion is that of Middle Management Grade Scale-II (MMGS-

II). The Bank, by circular dated 19.3.1990 initiated steps for

filling up 120 vacancies of MMGS-II by promotion from among

qualified JMGS-I officers. The promotion policy as obtaining in

1990 was Ext.P2, which was revised by Ext.P4 circular dated

16.04.1990. In the promotion policy, both as per Exts.P2 and

P4, the minimum eligibility condition for promotion to the post of

MMGS-II is contained in paragraph 4. As per Note 1 of

paragraph 4 of Exts.P2 & P4, Officers in JMGS-I, who have

worked for 2 years in a branch/office located in a rural area, shall

only be considered for promotion provided he has completed 7

years in JMGS-I, as on 31st December of the previous year. The

W.P.(C)No.16893/05 2

same was made applicable to promotions with effect from

01.06.1988. Further as per Clause 11.10 of Exts.P2 and P4 the

maximum number of officers to be considered for promotion

shall be restricted to 4 times the number of vacancies. The

petitioner had already put in 3 = years of rural service as early

as in 1982. The petitioner also have the minimum service for

consideration for promotion to the post of MMGS-II. Ext.P5 is

the seniority list of JMGS-I officers at the relevant time. The

petitioner was included as rank No. 275 in Ext.P5 seniority list.

Respondents 4 and 5 were juniors to the petitioner and their

ranks in Ext.P5 seniority list were 1163 and 1210. After

completing the procedure for promotions 117 JMGS-I officers

were promoted as MMGS-II. According to the petitioner,

persons like the fourth respondent, who did not possess the

prescribed eligibility service of two years in rural branches were

also promoted by Ext.P6. The fourth and fifth respondents who

could not have been validly included in the zone of consideration

was also promoted. At the same time the petitioner, who was

fully qualified and eligible and much senior to the said persons

W.P.(C)No.16893/05 3

was not promoted. (He was promoted only on 01.09.1993 by

Ext.P1 order.) Aggrieved by the denial of promotion, the

petitioner filed Ext.P9 appeal to the second respondent. But no

orders were passed in the said appeal. Petitioner filed O.P.

No.1500/1991 challenging the promotion process. In the said

original petition, the Chairman & Managing Director of the Bank

filed a counter affidavit stating that the Bank had waived the

condition regarding rural service in the 1990 promotion process,

but no details were furnished therein. By Ext.P12 judgment

dated 06.11.2003, this court set aside Ext.P10 order by which

the petitioner’s representation was rejected and directed the

second respondent appellate authority to reconsider the

petitioner’s appeal with notice to the petitioner and to pass an

order adverting to the contentions of the petitioner. But without

notice to the petitioner and without hearing him, the third

respondent passed Ext.P15 order dated 24.12.2004 holding that

the requirement of rural service as a condition for promotion was

not enforced due to administrative constraints. Petitioner is

challenging Ext.P15 order in this writ petition.

W.P.(C)No.16893/05 4

2. According to the petitioner, the entire process of

selection for promotion is vitiated for having been done against

the specific eligibility and other conditions for such promotion in

the promotion policy framed by the Bank themselves, insofar as

the persons who did not possess the minimum requirement for

promotion have been considered for promotion and persons who

could not have been validly included in the zone of consideration

have been promoted. The petitioner strongly disputes that there

was a waiver of the eligibility condition of minimum two years’

rural service. According to the petitioner, the reason for alleged

waiver of the condition regarding the rural service is also

unsustainable in view of Ext.P3 issued by the Bank, wherein

persons who did not possess the minimum two year rural service

were offered an opportunity to acquire the said minimum

requirement and therefore all officers had sufficient opportunity

to obtain the minimum rural service by 31st December 1989 as

is clear from Ext.P3, opportunity to seek posting in rural

branches were offered as early as on 5.10.1987. The petitioner

further contends that, insofar as admittedly the promotion

W.P.(C)No.16893/05 5

process was initiated for filling up 120 vacancies and only 480

candidates could have been validly included within the zone of

consideration the fact that, more than 1200 persons have been

considered for such promotion would go to show that the specific

conditions in the promotion policy have not been adhered to

while affecting the promotion. The petitioner therefore seeks the

following reliefs:

i. to issue a writ of certiorari or other appropriate writ,
direction or order calling for the records leading to
Ext.P15 and to quash the same.

ii. to issue a writ of certiorari other appropriate writ,
direction or order calling for the records leading to Ext.P6
and P7 and to quash the same to the extent of granting
promotions to the ineligible officers like the 4th
respondent from JMGS-I to MMGS-II in the year 1990
and included in Ext.P6 as well the promotion of all the
officers like the 5th respondent who fell outside the zone
of consideration for the above promotion as per Ext.P4
promotion policy.

iii. to issue writ of Mandamus or writ direction, or order
directing the respondents 1 & 2 to promote the petitioner
to the scale of MMGS-II w.e.f. 1.10.1990 and to grant all
consequential service benefits including arrears of pay
and allowance.

iv. to issue a writ of Mandamus or writ direction or order
directing the respondents 1 & 2 to promote the petitioner
to MMGS-III and SMGS-IV retrospectively w.e.f.
1.11.1999 and 25.10.2003 respectively and to grant all
consequential service benefits including arrears of pay
and allowances.

W.P.(C)No.16893/05 6

3. By order dated 3.4.2006 in I.A.No.4155/2006 this

Court directed the petitioner to take out notice to the affected

parties by publishing the notice in a newspaper, under Rule 148

of the Rules of the High Court of Kerala.

4. A counter affidavit dated 15.9.2007 and an additional

counter affidavit dated 11.10.2010 have been filed by the

second respondent. They would take a contention that for the

1990 promotion the stipulation regarding minimum two years

service in the rural area has been waived. According to the

second respondent, the said decision was taken since the officers

to be posted to rural branches to become eligible for promotion

were more than rural vacancies available. Therefore, none of

the officers were disqualified for want of rural service from

participating in the promotion process. According to them, the

promotion was based on seniority-cum- merit and considering

the rank of the petitioner, the petitioner was not within the

sphere of candidates, who could be selected for promotion in

accordance with the marks awarded to them in the promotion

process as per the norms applicable. But nothing is stated

W.P.(C)No.16893/05 7

regarding the waiver of the other condition regarding zone of

consideration except simply denying the same. The fourth

respondent has filed a counter affidavit, wherein he has taken a

contention that he had worked in Mambaram branch in Kerala

State and Mulegumoodu branch in Tamil Nadu which are rural

branches. He has also produced some certificates in support of

his contention. The petitioner has filed a reply affidavit

reiterating that there was no waiver of any of the conditions in

the promotion policy regarding eligibility for promotion at any

time as contended by the Bank. The petitioner would also

contend that as is evident from the classification of branches by

the bank themselves, the Mambaram branch and the

Mulegumoodu branch were classified as semi-urban banks, in

support of which contention the petitioner has produced Exts.P27

and P28, which are extracts from the book published by the bank

classifying various branches of the bank as urban, semi-urban

and rural, wherein the Mambaram branch and the Mulegumoodu

branch were classified as semi-urban banks.

5. I have considered the rival contentions in detail.

W.P.(C)No.16893/05 8

Note.1 to Clause 4 of Ext.P2 reads thus:

“Note:1
Officers in JMGS I, who have worked for 2 years in a
branch/office located in a rural area, shall only be
considered for promotion provided he has completed 7
years in JMGS I as on 31st December of previous year.
This is applicable in respect of promotions to be made
with effect from 1-6-1988.”

Clause 11.10 of Ext.P2 reads thus:

“11.10 In any case, the maximum number of officers
to be considered for promotion shall be restricted to 4
times the number of vacancies.”

Ext.P2 is dated 17.9.1985. Clauses 4 and 11.10 in Ext.P2 are

verbatim repeated in Ext.P4, which is dated 16.4.1990. It is not

disputed before me that as per the promotion policy published

by the bank, the two conditions were part of the promotion

policy. Their contention is that the Board of Directors had taken

a decision to waive that condition regarding rural service. But

no document whatsoever is produced before this Court to show

that such a conscious decision to waive the condition has been

taken by any authority whatsoever, although in the counter

affidavit, it has been asserted so. In this regard, it is pertinent

to note that in Ext.P11 counter affidavit filed by the respondent

W.P.(C)No.16893/05 9

bank in O.P.No.1500/1991, it has been specifically stated thus in

paragraph 3:

“Apart from this, minimum two years rural branch
service as on the previous 31st December, was also
specified as on eligibility criteria for consideration
for promotion. But in the 1990 promotion process,
the Bank waived the rural service consideration for
the reason that considering the number of eligible
officers there were no sufficient rural vacancies for
posting to enable them to become eligible for
consideration. Hence as the position now stands,
none of the officers was disqualified for the reason
of want of rural service. Moreover, no weightage in
marks was given for rural service in the promotion
process. So the petitioner’s 3 = years rural service
cannot be a deciding factor or relevant condition for
promotion.”

Considering that contention, in Ext.P12 judgment in that original

petition, this Court had held thus in paragraph 3:

“3. Sri. Ramakumar, learned counsel appearing
for the petitioner submits that there is no proper
consideration of the appeal. Inviting reference to
the counter affidavit, learned counsel further submits
that apart from the bald statement that the
stipulation regarding rural service was waived, no
particulars as such is furnished. When was it
waived? Why was it waived? There is no answer in
the counter affidavit. But at the same time that it
was waived is not in dispute. Ext.P1 is the
Promotion Policy issued on 16-4-1990. It is based
on that Policy the selection was made. The selection
was made within a few months since the select list
as such was published in August 1990. In any case
a deviation from the Policy already declared is
admittedly not notified.”

(underlining supplied)

W.P.(C)No.16893/05 10

it is taking into account these facts that by Ext.P12 judgment,

the appeal was directed to be re-considered. But in Ext.P15

order, which was passed pursuant to the judgment, also nothing

is stated as to who, when and why the condition has been

waived. Even today, in spite of giving several chances to the

bank, the bank is not in a position to produce any document

which would prove that such a conscious decision was taken by

any authority to waive the eligibility condition. The contention

of the respondents in respect of the same is that the number of

officers, who aspire for promotion were more than the number of

rural branches available. But this contention is not supported by

Ext.P3 issued by the bank as early as on 7.1.1988. The said

Circular reads thus:

“We invite the attention of our officers to the
following circulars on the above subject:

i) Cir. No.282/85/BC dated 17/9/1985

ii) Cir. No.332/87/BC 5/10/1987

iii) Cir. No.381/87/BC dated 12/11/1987
We had conveyed the Government guidelines
on the requirement of completion of rural and semi-
urban service for the purpose of promotion vide our
Cir. No.282/85/BC. In terms of clause 4 of the said
circular, an officer in JMGS I is required to work in a
rural area for a period of atleast two years and an
officer in MMGS II is required to work in rural/semi
urban area for a period of atleast 3 years for being

W.P.(C)No.16893/05 11

considered eligible for promotion to the next higher
grade. This is, however, in addition to other
eligibility criteria laid down in the promotion policy.

Inspite of the guidelines having been
circulated as early as in 1985, many of the officers
have not yet fulfilled the condition of completing the
rural and/semi urban service. With a view to
providing an opportunity to such officers who are
likely to be in the zone of consideration for
promotion to MMGS II and MMGS III to satisfy the
requirement, Circular No. 332/87/BC dated
5/10/1987 was issued advising certain category of
officers to indicate 3 zones in the order of
preference. Since the number of rural and semi
urban branches in certain zones is very limited,
officers were advised to indicate 3 zones so as to
accommodate them in one of the zones based on
the availability of vacancies.

However, the response to the said circular has
not been very encouraging. Besides, some of the
officers have indicated a few places of their choice
instead of 3 zones as required in the circular.
Officers are hereby advised that the options
exercised which are not in conformity with our
circular will not be considered for the purpose of
posting.

The circular is being issued with a view to
providing one more opportunity to our officers to
indicate their preference in terms of our circular
No.332/87 so that they would not deny themselves
of being considered for promotion. We are
therefore, advising such officers who got into JMGS I
on or before 1/1/1981 and into MMGS II on or
before 1/7/1983 to indicate three zones in the order
of preference in the format prescribed in the circular
332/87/BC. Such of the officers who have already
exercised their options but not in accordance with
the circular are also required to forward a fresh
application. Requests for a particular place will not
be considered. However, officers exempted under
circular No. 381/87/BC dated 12/11/1987 need not
respond to this circular.

All such requests should be directly sent to
the Personnel Manager, Personnel Administration

W.P.(C)No.16893/05 12

Section, Personnel Department, H.O. Manipal so as
to reach him on or before 31/1/1988, marking a
copy to the concerned Zonal Office. Requests
received after 31/1/1988 will not be entertained.

It is once again reiterated that if the request
is not received by us on or before 31/1/1988, it will
be deemed that the officer is not interested in
completing the rural and/or semi urban term and it
will be noted accordingly for the purpose of
promotion.

Branches/Offices are advised to display a copy
of this circular in the Notice Board for the
information of officers”

(underlining supplied)

The said circular does not at all indicate that the Bank was not

able to provide opportunity for all those who seek posting at

rural branches. On the other hand, that circular shows that

many of the officers did not respond to the circular inviting

preference for being posted in rural branches. It further shows

that despite repeated chances having been given officers did not

avail of those opportunity to work in rural branches to acquire

the eligibility condition for promotion despite having been made

aware of the necessity. After having issued Ext.P3, I fail to

understand how the bank can take a contention that it was

because of want of sufficient vacancies in rural branches that

officers could not be deputed to rural branches so as to enable

W.P.(C)No.16893/05 13

them to acquire eligibility for consideration for promotion. As

such, the bank has not been able to satisfy me with any material

whatsoever to show that there was actually a decision to waive

the eligibility condition of two years service in a rural branch.

Admittedly, the promotion process was without taking into

account the said eligibility condition. That being so, the

promotion process initiated by circular dated 19.3.1990 is clearly

against the promotion policy declared by the bank themselves.

6. As per Clause 11.10 of both Exts.P2 and P4, the

maximum number of officers to be considered for promotion was

restricted to four times the number of vacancies. Admittedly,

the number of vacancies available was only 120. Therefore, the

maximum number of candidates who could have been

considered for promotion in that particular selection was only

480. The fourth respondent was serial number 1163 and the

fifth respondent was serial number 1210 in Ext.P5 seniority list

of JMGS-I Officers. Both of them were outside the zone of

consideration as per Clause 11.10 of the promotion policy. That

shows that almost ten times the number of vacancies of officers

W.P.(C)No.16893/05 14

were considered for promotion in 1990 promotion process, which

is also directly against the promotion policy. The Bank’s

advocate would contend that it is for having better field of choice

that the zone of consideration was expanded. I am of opinion

that after declaring a promotion policy the Bank could not have

expanded the zone of consideration on the ground of better field

of choice without amending the promotion policy or without an

enabling provision to do so, which have not been brought to my

notice.

7. The fourth respondent would contend that he had

rural service in the Mambaram branch and the Mulegumoodu

branch. But the petitioner has produced Exts.P27 and P28,

which are extracts from the book relating classification of

branches published by the bank themselves, wherein the two

branches are classified as semi-urban branches. The petitioner

has also produced before me, for perusal, the original of the said

book, which corresponds to Exts.P27 and 28. As such, the

contention of the fourth respondent that he had two years’ rural

service does not appear to be convincing. Even apart from the

W.P.(C)No.16893/05 15

same, he is included as serial number 1163 in Ext.P5 seniority

list. Therefore, he was clearly outside the zone of consideration

as per Clause 11.10 of the promotion policy. Although the fifth

respondent also has filed a counter affidavit, he also could not

effectively controvert the contentions of the petitioner regarding

violation of Clause 11.10 in Exts.P2 and P4. After having laid

down a promotion policy laying down specific terms and

conditions for the promotion process, the bank cannot deviate

from the same without sufficient reasons and without an

enabling provision to do so. On both grounds regarding the

eligibility condition for promotion as well as the condition

regarding the number of persons to be included in the zone of

consideration, the bank has sadly failed to convince this court

that they have effected the promotion complying with the terms

and conditions prescribed in Exts.P2 and P4 promotion policies.

The writ petition is liable to be allowed on that ground alone.

Therefore, I am not going into the other contentions of the

petitioner raised in this writ petition, which are left open to be

agitated, if necessity arises in future proceedings.

W.P.(C)No.16893/05 16

8. In view of my above findings, Ext.P15 and the entire

promotion process initiated by circular dated 19.3.1990 for

promotion from the post of JMGS -I to MMGS -II which have

culminated in Ext.P6 are clearly unsustainable and are therefore,

quashed. Respondents 1 to 3 are directed to re-do the entire

promotion process pursuant to the circular dated 19.3.1990, in

accordance with the promotion policy as obtaining at that time

namely, the eligibility condition of minimum two years’ service in

a rural area and the number of persons to be considered for

promotion restricted to four times the number of vacancies

to be filled up, namely, 120 x 4 = 480. Only the persons, who

were eligible as on the date of issue of the circular dated

19.3.1990 alone shall be considered for this purpose. The said

process shall be completed within a period of two months from

the date of receipt of a copy of this judgment.

9. This Court is very well aware of the consequences of

setting aside promotions of 117 persons after 20 years. The

petitioner has been promoted in 1993. But he is stagnating in

MMGS II ever since. At the same time, persons far junior to

W.P.(C)No.16893/05 17

him, who were promoted earlier such as respondents 4 and 5

have been further promoted to higher posts. All of them will

have to come back to original post of JMGS -I in view of the

above direction. Being the conscious of the above contingency, I

had, during arguments, put it to the learned counsel for the bank

to save the situation by granting the petitioner promotion with

effect from 1990 by themselves. I had granted almost a

month’s time for this purpose and after consulting the superior

officers of the bank, the learned counsel for the bank expressed

inability to agree to the said suggestion put by the Court. It is

under the above circumstances, this Court was forced to declare

the entire promotion process as null and void.

10. The petitioner has been fighting for twenty years for a

right cause, which has been steadfastly resisted by the bank for

all these years, without giving any acceptable justification for

their action. I am of opinion that in view of the conduct of

respondents 1 to 3, the petitioner is entitled to his costs in this

writ petition. Accordingly, respondents 1 to 3 shall pay costs of

Rs.15,000/- to the petitioner, which shall be paid within one

W.P.(C)No.16893/05 18

month from today. It would be open to the bank to recover it

from the officers responsible for the situation.

The writ petition is allowed as above.

S. SIRI JAGAN, JUDGE

acd

W.P.(C)No.16893/05 19