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Gujarat High Court

Director (Marketing) vs K S Vyas on 14 July, 2015

Bench: Jayant Patel, Rajesh H.Shukla

       C/LPA/329/2009                          JUDGMENT



    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

         LETTERS PATENT APPEAL  NO. 329 of 2009
                           In
      SPECIAL CIVIL APPLICATION NO.  7516 of 1991

FOR APPROVAL AND SIGNATURE: 
 
HONOURABLE MR.JUSTICE JAYANT PATEL        :     Sd/­
and
HONOURABLE MR.JUSTICE RAJESH H.SHUKLA :    Sd/­
 
=======================================================

1  Whether Reporters of Local Papers may be               NO
   allowed to see the judgment ?

2  To be referred to the Reporter or not ?                NO

3  Whether  their  Lordships  wish   to  see   the 
   fair copy of the judgment ?                            NO

4  Whether this case involves a substantial 
   question of law as to the interpretation 
   of   the   Constitution   of   India   or   any        NO
   order made thereunder ?

=======================================================
                  DIRECTOR (MARKETING),
  INDIAN OIL CORPORATION LIMITED  &  1....Appellant(s)
                           Versus
            K S VYAS, UNION REPRESENTATIVE,
   NATIONAL ASSOCIATION OF OIL  &  2....Respondent(s)
=======================================================
Appearance:
MR MANISH BHATT, Sr. Adv. with MRS MAUNA M BHATT for 
the Appellant(s) No. 1 ­ 2
DELETED for the Respondent(s) No. 3
MR DG CHAUHAN for the Respondent(s) No. 1
MS ARCHANA U AMIN for the Respondent(s) No. 2
=======================================================

       CORAM: HONOURABLE MR.JUSTICE JAYANT PATEL
              and
              HONOURABLE MR.JUSTICE RAJESH H.SHUKLA
 


                           Page 1 of 15
        C/LPA/329/2009                                JUDGMENT



                        Date : 14/07/2015

                         ORAL JUDGMENT

(PER : HONOURABLE MR.JUSTICE RAJESH H.SHUKLA)

1. The   present   appeal   is   filed   by   the   appellant­ original   respondent   nos.2   and   3   being   aggrieved  with   the   judgment   and   order   passed   in   Special  Civil   Application   No.7516/1991   by   the   learned  Single   Judge   dated   02.02.2009   on   the   grounds   set  out in the memo of appeal.

2. Heard   learned   senior   counsel,   Shri   Manish   Bhatt  appearing   with   learned   advocate,   Mrs.Mauna   Bhatt  for the appellants and learned advocate, Shri D.G.  Chauhan for the respondent no.1.

3. The   background   of   the   facts   briefly   stated   are  that the respondents­original petitioners­National  Association of Oil Employees working with the Oil  Selection   Board   (OSB)   prayed   for   appropriate  directions   to   pay   Deputation   Allowances   from   the  respective dates of their deputation in the office  of   OSB.   The   appellants­original   respondents   had  inter  alia contended that it is not a deputation  at   all,   which   could   be   born   out   from   any   record  including   the   fact   that   there   is   no   order  regarding   the   deputation.   It   is   also   contended  Page 2 of 15 C/LPA/329/2009 JUDGMENT that   since   it   is   a   disputed   question   of   fact  regarding   the   appreciation   of   the   details   and  material,   the   impugned   order,   by   which,   the  petitioner has been entertained, is not justified.

4. Learned   senior   counsel,   Shri   Bhatt   appearing   for  the   appellants   referred   to   the   background   and  pointedly referred to the judgment of the learned  Single   Judge   and   also   affidavit   filed   by   the  appellant as original respondents. Learned senior  counsel, Shri Bhatt referred to the affidavit­in­ reply   and   emphasized   about   the   facts,   which   have  not   been   in   dispute   to   contend   that   OSB   was  established   by   the   Union   of   India   as   a   separate  body for selection of dealers and distributors for  all   four   oil   companies.   He   therefore   submitted  that   the   meeting   of   the   OSB   would   take   in   the  premises of the IOC and staff was reporting to the  General Manager of IOC Ltd. and the members of the  original petitioners­union are permanent employees  of IOC Ltd. He pointedly referred to the details  to   emphasis   that   this   board   was   established   but  the staff of IOC was carrying out the function for  the board and in fact, there is no deputation. He  referred to the order at Annexure­R1 and submitted  Page 3 of 15 C/LPA/329/2009 JUDGMENT that the transfers were made at the request of the  employees   concerned   and   in   fact,   some   employees  have   accepted   the   settlement   arrived   at   with  regard  to the benefits of the revision  of salary  etc.  Learned senior counsel, Shri Bhatt therefore  strenuously   submitted   that   the   members   of   the  original   petitioners­union   have   remained   the  employees   of   the   IOC   and   they   have   accepted   the  benefits under the settlement as the employees of  IOC and there has not been any posting or transfer  outside   the   cadre.   He   pointedly   referred   to   the  long   term   settlement.     Learned   senior   counsel,  Shri   Bhatt   therefore   submitted   that   IOC   being  largest   oil   marketing   committee   was   given  responsibility   to   provide   facilities   for   the   OSB  in   terms   of   infrastructure   and   operational   cost.  Therefore   in   order   to   reduce   the   expenditure   of  the   OSB,   it   was   decided   to   use   the   existing  facilities and the operational costs to be born by  the   Oil   Marketing   Companies.   He   therefore  submitted that the officers, who were specifically  attached   to   OSB   were   treated   on   deputation.   He  emphasized that the reason was that additional and  different   duties   of   the   respective   authorities  Page 4 of 15 C/LPA/329/2009 JUDGMENT were given to them on account of the formation of  OSB. However the clerical staff could work without  any conflict of interest and, therefore, they were  not required to be brought on deputation.

5. Learned   senior   counsel,   Shri   Bhatt   therefore  submitted   that   in   fact,   OSB   was   established  pursuant   to   the   guidelines   in   the   year   1983   and  the   petition   has   been   filed   in   the   year   1991.  Learned senior counsel, Shri Bhatt also submitted  that the members of the original petitioners­union  having   accepted   the   benefits   under   the   long   term  settlement  as employees of the IOC now cannot be  permitted   to   approbate   and   reprobate   with   regard  to   the   claim   for   deputation.   He   emphasized   that  there is no order of deputation and in absence of  any   specific   order   of   deputation,   no   claim   could  be made for such allowances or any other benefits.  He   submitted   that   the   members   of   the   original  petitioners­union   also   having   accepted   this   fact  had not challenged and subsequently it has raised  such   issue.   Learned   senior   counsel,   Shri   Bhatt  submitted   that   the   word   "deputation"   has   a  specific   meaning   and   connotation   and   it   has   been  also   considered   by   the   Hon'ble   Apex   Court   in   a  Page 5 of 15 C/LPA/329/2009 JUDGMENT judgment   in   case   of  State   of   Punjab   &   Ors.   Vs.  Inder   Singh   &   Ors.,   reported   in  AIR   1998   SC   7.  Learned senior counsel, Shri Bhatt has emphasized  the   observation   made   in   paragraph   no.19,   which  reads as under:­ "Concept   of   "deputation"   is   well  understood   in   service   law   and   has   a  recognised     meaning.   `Deputation'   has   a  different   connotation   in   service   law   and  the   dictionary   meaning   of   the   word  `deputation'   is   of   no   help.   In   simple  `deputation'   means   service   outside   the  cadre   or   outside   the   parent   department.  Deputation is deputing or transferring an  employee   to   a   post   outside   his     cadre,  that is to say, to another department on a  temporary   basis.   After   the   expiry   period  of deputation the  employee has   to  come  back   to   his   parent   department   to   occupy  the same position unless in the meanwhile  he   has   earned   promotion   in   his   parent  department   as   per   Recruitment   Rules.  Whether the transfer is outside the normal  field  of deployment  or not is decided  by  the authority who controls the service or  post   from   which   the   employee   is  transferred.   There   can   be   no   deputation  without   the   consent   of   the   person   so  deputed and he would, therefore, know his  rights   and   privileges   in   the   deputation  post.   The   law   on   deputation   and  repatriation is quite settled as   we have  also   been   in   various   judgments   which   we  have  referred   to   above.   There   is   no  escape for the respondents now to go back  to   their   parent   departments   and   working  there   as   Constables   or   Head   Constables   s  the case may be."

6. Learned   senior   counsel,   Shri   Bhatt   has   also  referred to the communication/guideline dated June  Page 6 of 15 C/LPA/329/2009 JUDGMENT 3, 1983 and submitted that as provided  in clause  (G), there was a specific order of deputation qua  the officers. He therefore submitted that for the  reasons as stated above, the officers were brought  on   deputation   to   avoid   any   conflict   on   duties  while   functioning   with   the   board   separate   from  their  own company.  He submitted that as there is  no   such   reason,   the   infrastructure   or   supporting  staff   was   provided   from   IOC   and,   therefore,   such  administrative   or   clerical   staff,   who   are   the  members   of   the   original   petitioners­union   cannot  claim to be on deputation.

7. Learned   senior   counsel,   Shri   Bhatt   also   referred  to   the   papers   and   submitted   that   the   guidelines  dated   03.06.1983   are   merely   an   internal  communication   and   any   submission   made   would   not  make   any   different.   He   submitted   that   the  employees   of   the   original   petitioners­union  reported   to   the   General   Manager   of   IOC   and   they  continued   to   report   to   the   General   Manager,   OIC  and,   therefore,   there   is   no   question   of   any  deputation, which would make them entitle for any  such deputation allowance. Learned senior counsel,  Shri Bhatt submitted that such communications have  Page 7 of 15 C/LPA/329/2009 JUDGMENT never   been   challenged   and   it   has   also   been  clarified   by   the   appointing   authority   when   they  had specifically referred to the deputation of the  officer.   He   referred   to   the   rejoinder   also   to  emphasis   with   reference   to   the   orders   and  submitted   that   as   referred   to   in   this   affidavit­ in­rejoinder, posting orders of the employees were  made as transfer at the request  of the employees  and it has not been mentioned any aspect about the  deputation   with   consent.   He   therefore   submitted  that the organization to which the members of the  petitioner­union belong remain the same viz., IOC  and   they   continued   to   report   to   the   General  Manager, IOC and, therefore, the observations made  in the order of the learned Single Judge may not  be sustained and the present appeal may be allowed  as   there   is   no   justification   for   the   claim  regarding   the   deputation   or   the   deputation  allowances   made   by   the   original   petitioners­ respondents herein.

8. Learned   advocate,   Shri   Chauhan   referred   to   the  affidavit­in­reply,   particularly,   paragraph   no.3  and   submitted   that   OSB   is   a   separate   body  admittedly   set   up   by   four   oil   companies.   He  Page 8 of 15 C/LPA/329/2009 JUDGMENT therefore submitted that the staff which were sent  to OSB would be on deputation. He submitted  that  it is denied that the employees working with such  OSB   reporting   to   the   General   Manager,   IOC,   would  not   amount   to   transfer   and   deputation.   He   also  referred   to   the   guidelines   produced   on   record  dated   22.03.1983   and   emphasized   that   at   the   time  of   set   up   of   OBS,   these   aspects   were   considered  and, therefore,  since  board  has been set up, the  staff   working   with   the   board   would   be   on  deputation.   He   emphasized,   "necessary   secretarial  assistance   provided   by   IOC   (3   co­ordinators   and  his staff). Similarly he referred to the break­up  with regard to the staff and other facilities and  the   expenditure   how   it   has   to   be   borne   by   four  companies.   He   further   referred   to   the   guidelines  and   also   office   communication   dated   26.11.1987.  Referring to this emphasizing on clause (G), which  refers   to   the   deputation   of   the   officer.   He  emphasized clause  (G), which reads as under:­ "IT IS UNDERSTOOD THAT IOC'S OFFICERS WHO  ARE   BEING   ATTACHED   TO   THE   SELECTION  BOARDS, WOULD BE TREATED AS ON DEPUTATION  AND   WOULD   BE   ENTITLED   TO   ALL   BENEFITS  WHICH   ARE   NORMALLY   AVAILABLE   FOR  DEPUTATIONISTS."

Page 9 of 15

C/LPA/329/2009 JUDGMENT

9. He   submitted   that   if   the   officers   is   on  deputation, staff would also be on the same manner  be   treated   as   on   deputation.   Learned   advocate,  Shri   Chauhan   submitted   that   the   representations  have   been   made,   which   have   been   produced   at  Annexure­D at page nos.13, 15 and 17 in the year  1983 and 1984 and also thereafter, but they have  not been responded and the petition was filed. He  also   referred   to   the   affidavit­in­reply   and  rejoinder to support his submission with regard to  the   deputation.   Learned   advocate,   Shri   Chauhan  also referred to and relied upon the same judgment  in case of  State of Punjab  (supra)  and submitted  that   it   would   also   support   the   case   of   the  original   petitioner.   He   therefore   submitted   that  the present appeal may not be allowed.

10. In   rejoinder,   learned   senior   counsel,   Shri   Bhatt  referred   to   the   affidavit­in­rejoinder   and  guidelines   and   also   submitted   that   the   reply   has  been given to the representation clarifying as to  how the representation cannot be accepted. Learned  senior counsel, Shri Bhatt submitted that there is  no   order   of   deputation   placed   on   record   and  looking   to   the   background   and   record,   it   is  Page 10 of 15 C/LPA/329/2009 JUDGMENT evident   that   the   members   of   the   petitioner­union  have   remained   as   employees   of   IOC.   He   emphasized  that   as   stated   repeatedly,   necessary  infrastructure assistance was provided by the IOC  for   the   functioning   of   the   OSB.   He   therefore  submitted   that   as   contended,   OSB   has   also   been  dissolved pursuant to the decision of the Ministry  of   Petroleum   and   Natural   Gas   vide   communication  dated 09.05.2002. He reiterated that as explained  by   the   Hon'ble   Apex   Court,   the   deputation   has   a  different meaning and connotation and, therefore,  the   present   appeal   may   be   allowed   setting   aside  the order of the learned Single Judge.

11. In view of these rival submissions, it is required  to be considered whether the present appeal could  be considered.

12. As it transpires from the papers, the controversy  involved is with regard to the claim made for the  deputation and the deputation allowances. However  as   admittedly   stated   in   the   affidavit­in­reply,  the   order   of   deputation   has   not   been   placed   on  record   by   the   petitioner   and   in   absence   of   any  such order of deputation, the claim is made by the  petitioner   for   its   members   that   they   were   on  Page 11 of 15 C/LPA/329/2009 JUDGMENT deputation with OSB. In other words, such claim is  made   without   any   basis   or   foundation   inasmuch   as  there   is   no   order   regarding   the   deputation.   What  has   been   claimed   is   on   the   basis   of   some  conjecture and reference is made to the guidelines  or   the   office   note.   As   could   be   seen   from   the  guidelines   dated   22.03.1983,   for   which,   emphasis  is made on clause (G) as stated above, it has no  relevance for the purpose of present appeal.

13. As contended by learned senior counsel, Shri Bhatt  referring   to   the   affidavit­in­rejoinder   that   the  officers   were   treated   on   deputation   for   the  reasons, which have been stated that there may not  be any conflict of their interest or the work and,  therefore,   it   was   specifically   made   clear   in   the  guidelines   itself.   However,   the   members   of   the  petitioner­union knew very well that they are not  on deputation and they were merely provided as an  infrastructure or administrative support to OSB as  a measure for reducing cost. The establishment of  OSB   is   a   different   and   the   issue   involved   is  whether the members of the petitioners­union were  sent   on   deputation   outside   their   cadre   or  organization.   Therefore,   the   moot   question   is  Page 12 of 15 C/LPA/329/2009 JUDGMENT whether   there   was   any   transfer   or   deputation   of  the employees (members of the petitioner) outside  the cadre from the organization or with OSB. It is  required   to   be   mentioned   here   that   OSB   was  established or set up for the specific purpose by  the   Government   of   India   for   selection   of   the  dealership   or   distributorship   for   all   four  companies.   Therefore,   it   was   not   a   separate   body  or   establishment   and   the   staff   of   IOC   as   a   co­ ordinators   being   largest   company   was   provided   as  an   assistance   for   the   functioning   of   the   board.  Therefore   IOC   as   co­ordinators   had   provided   the  secretarial   assistance   from   amongst   the   staff   of  IOC   like   the   members   of   the   petitioner­union.  Therefore   merely   because   the   members   of   the  petitioner­union   worked   for   some   time   for   the  purpose of the board, would not justify the claim  for   deputation   in   absence   of   any   specific   orders  regarding the deputation. It is well accepted that  the deputation has to be with consent and there is  not   a   whisper   about   any   objection   raised   by   any  one that they had not given any consent unless it  was accepted as a deputation. In fact, the record  shows from the some orders produced on record that  Page 13 of 15 C/LPA/329/2009 JUDGMENT it   was   a   transfer   at   the   request   made   by   the  concerned employee, which is produced at Annexure­ R1 with the affidavit­in­reply. Further as stated  by   the   appellant­original   respondent   that   the  members   of   the   petitioner­union   having   accepted  the   benefits   under   the   long   term   settlement   as  employee   of   IOC   cannot   approbate   and   reprobate.  Therefore once having accepted the benefit of long  term settlement  as employee  of IOC now cannot be  permitted   to   raise   such   dispute   about   the  deputation,   which   would   be   outside   the   cadre   or  organization.   Therefore   if   they   were   in   other  establishment or organization like OSB, they would  not   have   availed   of   settlement   for   the   employees  of IOC. The observation  made by the Hon'ble  Apex  Court in a judgment relied upon by both sides in  case of  State of Punjab (supra)  clearly refers to  the   fact   that   the   deputation   has   a   different  connotation in service law. It also refers to the  transfer   outside   the   normal   field   of   deployment  and   it   also   made   clear   that   there   could   be   no  deputation without consent. Further, it cannot be  confused   either   with   transfer   or   with   promotion  and the fact that the members of the petitioner­ Page 14 of 15 C/LPA/329/2009 JUDGMENT union have not been sent to any separate cadre and  when   there   is   no   order   of   deputation   placed   on  record.   Further   even   assuming   without   admitting,  it   also   raise   the   question   of   factum   about   the  deputation, which could be considered on the basis  of the material and evidence. It is desirable that  such issues cannot be decided in such proceedings.  Therefore,   the   present   appeal   deserves   to   be  allowed.

14. In   the   circumstances,   the   present   appeal   stands  allowed. The impugned order of the learned Single  Judge   passed   in   Special   Civil   Application  No.7516/1991   dated   02.02.2009   is   hereby   quashed  and set aside.

Sd/­ (JAYANT PATEL, J.) Sd/­ (RAJESH H.SHUKLA,  J.) Gautam Page 15 of 15