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[Cites 7, Cited by 15]

Supreme Court of India

Prabhat Ranjan Singh vs R.K. Kushwaha on 7 September, 2018

Equivalent citations: AIRONLINE 2018 SC 147

Author: Deepak Gupta

Bench: Deepak Gupta, S. Abdul Nazeer, Madan B. Lokur

                                                                                                   1


                                                                                  REPORTABLE

                                      IN THE SUPREME COURT OF INDIA

                                CIVIL APPELLATE/ORIGINAL JURISDICTION

                                      CIVIL APPEAL NO(S). 9176  OF 2018
                                        (@ SLP (C) NO(S).22444 OF 2017)



                         Prabhat Ranjan Singh & Anr.                              …. Appellant(s)

                                                         Versus

                         R.K. Kushwaha & Ors.                                   … Respondent(s)

WITH CONTEMPT PETITION (C) NO. 717 OF 2018  IN SLP (C) NO(S).22444 OF 2017 CONTEMPT PETITION (C) NO. 732 OF 2018  IN SLP (C) NO(S).22444 OF 2017  SLP (C) NO(S). 4144 OF 2018 T.C. (C) No. 52 OF 2018 J U D G M E N T Deepak Gupta J.

Signature Not Verified

Digitally signed by SANJAY KUMAR Date: 2018.09.07 14:12:03 IST Reason:

1. Leave   granted   in   appeal   arising   out   of   SLP   (C)   No(s). 22444 of 2017.

2

2. This is yet another battle, in the seemingly never ending war between promotees and direct recruits.

3. In the Indian Railways, there is a service known as the Indian   Railway   Service   of   Signal   Engineers   (for   short   ‘the IRSSE’).     This   is   a   Group­A   service.     Recruitment   to   the service is by two modes – 50% by direct recruitment and 50% by   promotion   from   amongst   Group­B   officers   in   the   feeder services.     The   direct   recruits   are   selected   through   an examination   conducted   by   the   Union   Public   Service Commission (for short ‘the UPSC’).

4. On   23.10.2007,   the   Ministry   of   Railways   issued   a requisition to the UPSC for filling up vacancies in the Group­A service.   The test was to be conducted in the year 2008 and the   recruitment   was   known   as   the   Engineering   Services Examination, 2008.  Shri R.K. Kushwaha, hereinafter referred to   as   ‘the   direct   recruit’,   was   successful   in   the   said examination.     He   was   duly   selected   and   joined   service   on 3 14.12.2009.  Some officers, who were working in the Group­B service of  the  Signal and Telecommunication  Department of the   Indian   Railways   were   promoted   vide   order   dated 12.08.2014 to  Group­A service with  effect from 08.05.2014. These   officers   were   given   benefit   of   weightage   of   5   years   of service rendered in Group­B service in terms of Rule 334 of the   Indian   Railways   Establishment   Manual   (for   short   ‘the IREM’), Vol.1 and their relevant date for fixation of seniority was fixed as 08.05.2009.  

5. The relevant portion of the order dated 12.12.2014 fixing the seniority of the 87 promotee officers reads as follows:

“2.All the 87 officers will be placed in the seniority list below   the   junior   most   direct   recruit  (DR)   IRSSE officer of Engineering Service Examination (ESE) 2007 batch (earliest date of joining 15.12.2008),  and above the   senior   most   Direct   Recruit  IRSSE   officers   of Engineering   Service   Examination   of   2008   batch (earliest  joining   14.12.2009),   whose   inter­se  seniority has already been circulated.” Resultantly the promotee officers were placed en bloc senior to all the direct recruits.
4

6. Shri   R.K.   Kushwaha,   a   direct   recruit,   filed   O.A.   No. 050/00260/2015   before   the   Patna   Bench   of   the   Central Administrative Tribunal (for short ‘the CAT’) challenging the seniority   given   to   the   promotee   officers   vide   order   dated 12.12.2014.     The   petition   was  disposed  of   vide  order   dated 01.04.2015 directing the Chairman of the Railway Board to consider   the   representation   of   Shri   R.K.   Kushwaha   dated 19.03.2015   within   a   period   of   two   months.     The   Chairman vide speaking order dated 09.06.2015 rejected the plea of Shri R.K. Kushwaha to fix the seniority of the direct recruits from the   date   of   sending   of   the   requisition.     According   to   the Chairman, the seniority of the Junior Scale, Group­A officers of   the   eight   organised   railway   services   including   the   IRSSE was   to   be   fixed   in  terms of the  provisions  contained  in  the IREM   Vol­1   which   had  the  approval  of  the  President   under Article 309 of the Constitution of India.  

7. Shri R.K. Kushwaha thereafter filed a fresh O.A. being O.A. No. 460 of 2015 claiming the following reliefs : 5

“8.1 That your Lordships may graciously be pleased to   quash   and   set   aside   the   impugned   orders dated 09/12.06.2015 passed by the Respondent No.1   together   with   order   dated   12.12.2014 passed by the respondent No. 4 as contained in Annexure   A/8   and   A/4   respectively   which   are contrary   to   the   order   passed   by   Hon’ble Supreme Court of India in NR Parmar Case and DOPT   OM   dated   04.03.2014   as   referred   to above.

8.2 That your Lordships may further be pleased to direct the respondents to recast the seniority list afresh   on   the   basis   of   principle   laid   down   by Hon’ble   Supreme   Court   of   India   in  NR   Parmar Case   and   DOPT   OM   dated   04.03.2014   as referred to above without any further delay. 8.3 That   the   Respondents   further   be   directed   to issue   Corrigendum/amendment/Correction   slip in   Indian   Railway   Establishment   Manual Volume­1,   henceforth   in   view   of   new Guidelines/directives   of   DOPT   OM   dated 04.03.2014   as   contained   in   Annexure   A/11 which  is  based   on the  principle/law  laid  down by   the   Hon’ble   Supreme   Court   of   India   in   NR Parmar   Case   regarding   fixation   of   inter­se­ seniority   between   Direct   Recruitees   and Promotees Officers.

8.4 That the Respondents further be directed grant all   consequential   benefits   in   favour   of   the applicant   including   promotion   in   JA   Grade   on the basis of his seniority as per the principle laid down by Hon’ble Supreme Court of India in NR Parmar   Case   and   DOPT   OM   dated   04.03.2014 as referred to above.

8.5 Any   other   relief   or   reliefs   including   the   cost   of the proceeding may be allowed in favour of the Applicant.” 6

8. It   would   be   pertinent   to   mention   that   none   of   the promotee officers was made a party in this O.A..  Arguments were   heard   and   judgment   was   reserved   in   the   matter. Thereafter,   Shri   Prabhat   Ranjan,   who   was   a   promotee   and also the General Secretary of East Central Railway Promotee Officers Association, East Central Railway at Hajipur filed an application for impleadment.   The application was taken up on   05.02.2016   and   the   same   was   allowed.     The   judgment which had been reserved for pronouncement was de­reserved and on the same day, the CAT heard all the parties and again reserved judgment.  Liberty, however, was given to the parties to   file   written   arguments.     The   CAT   vide   its   order   dated 03.05.2016 partly allowed the O.A..   It rejected the prayer of Shri R.K. Kushwaha that the direct recruits were entitled to get   seniority   from   23.10.2007   the   date   on   which   the requisition for filling up the direct vacancies was sent, on the ground that the case of Union of India  vs.  N.R. Parmar & Ors.1  was not applicable in as much as the reference to the 1 (2012) 13 SCC 340 7 year   of   requisition   is   always   with   reference   to   the   vacancy year.     If   the   vacancies   are   notified   well   in   advance   and requisition made earlier to arising of the vacancies, the direct recruits cannot get or claim benefit of seniority from the date of requisition.  

9. The case of the direct recruit was that the principle laid down in N.R. Parmar’s case (supra) had been recognized and implemented   by   the   Department   of   Personnel   and   Training (for short ‘the DoPT’) in its circular dated 04.03.2014.  As per him, since requisition was issued on 23.10.2007, he should be granted seniority from the said date.   The CAT held that the case of the direct recruit that he should be given seniority from 23.10.2007 is not acceptable.

10. In our view, this was, in fact, the only relief claimed by the  direct  recruit in  his O.A. and  the matter  should  have ended   there.     However,   the   CAT   went   on   to   examine   the speaking order passed by the Chairman, Railway Board dated 8 09.06.2015   and   examined   the   same   in   the   context   of   the DoPT   circular   dated   04.03.2014   and   the   judgment   of   this Court passed in the N.R. Parmar’s case (supra).  

11. The   case   of   the   Railways   as   well   as   the   present appellant, who was the intervener in the O.A. was that their seniority had to be fixed in terms of the IREM Vol­1, which provided that the promotees were to be given a maximum of 5 years   weightage   in   terms   of   Rules   327   to   341.     It   is   not necessary to extract all the rules.  It would suffice to note that Rule 328 provided that the seniority of officers appointed to various   Group­A   services   in   the   Indian   Railways   shall   be determined on the basis of ‘date of increment in the time scale (DITS)’ which is to be determined in accordance with certain laid   down   principles.     In   the   case   of   direct   appointment, pursuant   to   an   examination   conducted   by   the   UPSC,   the DITS   is   to   be   reckoned   from   the   date   of   commencement   of earning   increments   in   the   regular   scale.   Rule   334   provides that   in   case   of   Group­B   officers   permanently   promoted   to 9 Group­A   services,   the   DITS   of   the   above   officers   would   be determined   by   giving   weightage.     The   said   rule   reads   as follows:

“334   In   the   case   of   Group   ‘B’   officers   permanently promoted to Junior Scale of Group ‘A’ services:
            (1)    xxx             xxx             xxx

            (2)    If two or more than two officers are promoted on
the   same   date,   the   following   method   shall   be followed   to   determine   their   inter­se   seniority within the Railway:­
(i) The relative seniority of officers of each Railway shall   be   in   the   order   of   their   position   in   the panel for that Railway.
(ii) The   DITS   of   the   above   officers,   shall   be determined by giving weightage based on: 
(a) the year of service connoted by the initial pay   on   permanent   promotion   to   Group   ‘A’ service; or
(b) half   the   total   number   of   years   of continuous service in Group ‘B’, both officiating and permanent;

whichever  is more, subject to a maximum of 5 years;   provided   that   the   weightage  so  assigned does not exceed the total non­fortuitous service rendered by the officer in Group ‘B’.”

12. Before  the CAT, it was urged by the Railways and the intervener   that  N.R.   Parmar’s  case   (supra)   was   not applicable because weightage of 5 years, as additional years of 10 seniority was to be given to the promotees and in this behalf reference was also made to the Indian Administrative Service (IAS) (Regulations of Seniority) Rules, 1987 wherein also State Civil Service Officers who are inducted into the IAS are given some weightage while fixing their ‘year of allotment’.  The CAT held that in the scheme of IAS any vagaries or arbitrariness due to the date when the recruitment process is completed is removed   whereas   in   the   railways   reference   to   seniority   and inter   se   seniority   on   the   basis   of   DITS   is   subject   to unintended   delays   in   the   completion   of   one   recruitment process   or   the   other   and   this   may   even   be   due   to   human manipulation.     The   relevant   portion   of   the   order   dated 03.05.2016 of the CAT reads as follows:

“19…….Therefore, the basic philosophy of NR Parmar of removing arbitrariness because of date on which an action   is   completed   with   respect   to   the   two   streams holds good in this case also.   Policy making is within the   domain   of   the   Executive,   but   this   has   to   be reasonable and rational.  Since there is obvious scope for   arbitrariness   in   the   Railways   policy,   we   have   to intervene in judicial review.   The Railways must align their   policy   in   consonance   with   this   fundamental philosophy of N.R. Parmar.
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20.   Another   serious   anomaly   we   find   from   the respondents action is that while the ratio described for the DR and the promotees is 50:50, they have over the years   inducted   promotees   about   three   times   the number of direct recruits.  In the representation before the   Chairman,   Railway   Board,   the   applicant   has shown   that   from   the   year   2001   to   2007   against   95 direct   recruits,   376   promotees   have   been   inducted.

The chairman, railway Board has justified this on the ground that as per the government instructions, direct recruitment was curtailed to one­third for those years. Such   government   instructions   cannot   alter   the  basic principle   of   laid   down   ratio   between   the   DR   and promotes.  If downsizing was the objective, this has to be done keeping the ratio between DR and promotees intact. ……..

21. xxx xxx xxx

22. Thus,   the   provisions   of   the   IREM   determining inter se seniority based on DITS are clearly flawed and arbitrary.     Accordingly,   we   quash   and   set   aside   the impugned   orders   dated   9/12.6.2015   (Annexure   A/8) and date 12.12.2014 (Annexure A/4) being contrary to the   underlying   principle   emerging   from   the   Hon’ble Apex Court judgment in N.R. Parmar case as well as DOPT   guidelines   in   this  regard,   which   mandate   that wherever it is considered necessary to follow different principles for inter se seniority, consultation should be made with the DOPT.  The respondent are directed to recast the seniority afresh and take necessary action to   make   corrections   in   the   IREM   in   the   light   of   the aforesaid observations within a period of four months from the date of receipt/production of a copy of this order.”

13. Shri Prabhat Ranjan Singh challenged the order of the CAT before the Patna High Court by filing Writ Petition No. 12 10669   of   2016   along   with   one   Shri   Girish   Kumar.     This petition was dismissed vide order dated 12.05.2017 and one of the main grounds for dismissal of the petition was that the circular   of   the   DoPT   dated   04.03.2014   was   binding   on   the Railways.     The   Patna   High   Court   went   on   to   hold   that   the IREM is not statutory in nature and is only a codified set of guidelines.   It further went on to hold that the power of the Railways to frame rules under Rule 201 of the Indian Railway Establishment  Code (for short ‘IREC’), which is statutory in nature,   is   only   confined   to   Group­C   and   Group­D   posts. Therefore, the Railways are bound by the OM issued by the DoPT.   This judgment has been challenged by Shri Prabhat Ranjan Singh. 

14. It would also be pertinent to mention that pursuant to the direction issued by the CAT on 03.05.2016, the Railways amended   Rules 327 to 341 of the IREM Vol­1 by removing reference   to   ‘DITS’   and   introduced   the   concept   of   ‘year   of allotment’.    According  to the  Railways, as per  the amended 13 rules inter se seniority between direct recruits and promotees shall   be   determined   and   fixed   on   the   basis   of   ‘year   of allotment’ and not on the basis of ‘DITS’.  The amendment is applicable   in   all   cases   of   fixation   of  inter   se  seniority   of promotee officers from the panel of 2012­2013 onwards and for Direct Recruit 2006 examination onwards.  Thereafter, the seniority   has   been   re­fixed   and   only   the   promotee   officers, who have been allotted 2008 as the ‘year of allotment’ have been   given   seniority   over   the   direct   recruits   and   those promotee officers who have been allotted 2009 as the year of allotment   have   been   ranked   en   bloc   junior   to   the   direct recruits of the year 2009.  Thus, the anomaly pointed out by the CAT has been removed and the system which is followed in the IAS is being applied even in the Railways.  

15. This development took place on 05.03.2018, during the pendency of this petition.  According to the direct recruits, the action of the Railways in placing some of the promotee officers above the direct recruits was violative of the order of the CAT 14 and   they,   accordingly   filed   contempt   petition   no. 050/00070/17   before   the   CAT   which   was   dismissed   vide order dated 02.04.2018.   The CAT held that in its order the reference   to  N.R.   Parmar’s  case   (supra)   was   regarding removing the arbitrariness due to ‘DITS’ and bringing it in line with the concept of ‘vacancy year/allotment year’, which does away   with   the   problem   and   the   revised   policy   after amendment   fixes   the  ‘allotment/vacancy   year’   for   fixing   the seniority and not ‘DITS’.  It also held that since this Court is seized   of   the   matter,   the   parties   can   place   their   grievance regarding   the   legality   of   the   revised   policy   before   us.   The contempt petition was dismissed.

16. Aggrieved by the order of the CAT, the direct recruit filed writ petition being CWJC No. 6489 of 2018 (R.K. Kushwaha v. Union   of   India   &   Ors.)   before   the   Patna   High   Court   for quashing/setting aside the order dated 02.04.2018 passed in the contempt petition.  Vide order dated 03.05.2018, we have transferred the aforesaid writ petition to this Court. 15

17. We have heard learned counsel for the parties.   Before us Shri P.S. Patwalia, learned senior counsel for the appellant (Prabhat Ranjan Singh) submitted that the petition has been rendered infructuous in view of the amendment to Rules 327 to 341 of the IREM Vol­1.   He, however, submitted that the observations made by the CAT and the High Court that the DoPT   circulars   are   binding   on   the   Railways   and   that   the observations   of   the   Patna   High   Court   that   IREM   has   no statutory force are wrong and are liable to be set aside.   On the other hand, Shri Mukul Rohatgi and Shri Guru Krishna Kumar,   learned   senior   counsel   appearing   for   the   direct recruits submitted that the IREM, which provided for giving weightage in seniority to the promotees, was set aside by the CAT.   Therefore, by still continuing to give weightage to the promotees the contemnors have committed contempt of order of the CAT.  It has also strenuously been urged before us that the rules which provide for giving weightage to the promotee officers are totally illegal and arbitrary.  Shri Maninder Singh, 16 learned   Additional   Solicitor   General   submitted   that   the Railways are empowered to frame their own rules.  According to him, even the  IREMs are issued with the concurrence of the   President   of   India   in   terms   of   Article   309   of   the Constitution   of   India   and   framed   under  the   Constitution   of India.  

18. In our view, the following issues arise for decision:

I Whether the Railways is bound by the rules framed by the DoPT or it can frame its own rules and whether the IREM has statutory force? 
II Whether Shri R.K. Kushwaha, the direct recruit had laid challenge to the rules, which provide for giving weightage in the seniority to the promotee officers?
III Whether   the   findings   of   the   CAT   in   respect   of  N.R. Parmar’s  case   (supra)   was   limited   to   removing   the arbitrariness only in respect of ‘DITS’?
17
IV Whether by issuing the memorandum dated 05.03.2018 amendment/modifying   rules   327­341   the   Railways   have violated the order issued by the CAT?
I Whether the Railways is bound by the rules framed by the DoPT or it can frame its own rules and whether the IREM has statutory force? 

19. The CAT, in its order, held that the Railways are bound by   the   DoPT   circulars.     The   High   Court   of   Patna   has   gone further and has come to the conclusion that the Railways have no jurisdiction to frame rules for Group A & B services.   The High   Court   has   further   held   that   the   IREM   rules   are   not statutory in nature and are only guidelines having no binding force.   On the other hand learned senior counsel for the UOI has drawn our attention to the Government of India (Allocation of Business) Rules 1961 framed under Clause 3 of Article 77 of the   Constitution   of   India.     Under   these   Rules   business   has been allocated to different departments. As far as the DoPT is concerned the relevant portion reads as under:­ 18 “I. RECRUITMENT,   PROMOTION   AND   MORALE   OF SERVICES

1.  ........

2. General   questions   relating   to   recruitment, promotion   and   seniority   pertaining   to   Central   Services except Railways Services and services under the control of   the   Department   of   Atomic   Energy,   the   erstwhile Department of Electronics, the Department of Space and the   Scientific   and   Technical   Services   under   the Department of Defence Research and Development.

3. ...........

4. General policy matters regarding classification of posts and grant of gazetted status in relation to Services other than Railway Services.

5. Recruitment   of   ministerial   staff   for   the Government  of  India  Secretariat   and   its   attached  offices except   that   for   the   Department   of   Railways,   the Department  of Atomic Energy,  the  erstwhile Department of Electronics, and the Department of Space.

6. Appointment of non­Indians to Civil posts under the   Government   of   India  except   posts   under   the Department   of   Railways,  the   Department   of   Atomic Energy, the erstwhile Department of Electronics and the Department of Space.

               xxx              xxx     xxx



IV.            SERVICE CONDITIONS

21. General questions (other than those which have a financial bearing including Conduct Rules relating to All India   and   Union   Public   Services  except   in   regard   to services   under   the   control   of   the   Department   of Railways,  the   Department   of   Atomic   Energy,   the erstwhile  Department of Electronics and the Department of Space).

19

22. Conditions   of   service   of   Central   Government employees  (excluding   those   under   the   control   of   the Department   of   Railways,  the   Department   of   Atomic Energy,   the   erstwhile   Department   of   Electronics,   the Department   of   Space   and   the   Scientific   and   Technical personnel under the Department of Defence Research and Development, other than those having a financial bearing and   in   so   far   as   they   raise   points   of   general   service interest).

23(a) – (d)   …............

24. ................

25. ................

26. ................

27. General   policy   regarding   retrenchment   and revision of temporary Government servants except  those under the Department of Railways.”        xxx               xxx                xxx          

20. A   perusal   of   the   Allocation   of  Business   Rules,   1961, especially the highlighted portion leaves no manner of doubt that the Railways is specifically excluded from the ambit of the scope of business allocated to the DoPT, whether it be for   classification   of   posts,   recruitment   of   ministerial   staff, appointment of non­indians to civil posts, fixing of service conditions, including conduct rules, general policy regarding retrenchment   and   revision   of   temporary   service   of   the 20 Railways etc., and as such the DoPT cannot issue binding circulars upon the Railways.   We may make it clear that if the   DoPT   issues   a   circular   and   the   Railways   specifically accepts   the   circular   or   makes   it   applicable,   then   such   a circular   may   apply   but   if   the   circular   is   not   made specifically   applicable   then   it   has   no   force   so   far   as   the Railways and its employees are concerned.

21. In the same Allocation of Business Rules, 1961 while allocating   business   to  the  Ministry  of Railways  power   has been   given   to   it   to   deal   with   all   matters   including   those relating   to   Revenue   and   Expenditure.     Therefore,   the Ministry of Railways has the power to lay down conditions of service for its employees.

22. The   Ministry   of   Railways   has   a   set   of   codified   rules known as the Indian Railways Establishment Code (IREC). It   is   not   disputed   before   us   that   as   far   as   the   IREC   is concerned the same is notified under the proviso to Article 21 309   of   the   Constitution   and   is   statutory   in   nature. However, it has been urged on behalf of the direct recruits that IREM does not have any statutory force.  It would also be pertinent to  mention  that the DoPT itself has issued a office   memorandum   dated   16.02.2018   stating   that   the matters   relating   to   recruitment,   promotion   &   seniority   in respect   of   Ministry   of   Railways   do   not   fall   within   the jurisdiction   of   the   DoPT.     We   need   not   refer   to   all   the documents   referred  to because it is apparent from  a bare reading of the Allocation of Business Rules, 1961, that the service   conditions   of   the   employees   of   the   Railways   are governed by the rules framed by the Railways which will not only include the IREC but also the IREM.

23. Even with regard to the IREM it has been urged by the learned   ASG   that   these   rules   and   the   various modifications/amendments  issued from time to time to the IREM are also issued under the proviso to Article 309 of the Constitution and as such they have the statutory force. 22

24. We   have   gone   through   the   various   communications with regard to the IREM and find that all of them make a mention  that  they  have been issued in exercise of powers conferred by proviso to Article 309 of the Constitution.  We may   specifically   refer   to   only   one   document,   i.e., amendment   to   the   IREM   Rules   327   to   341   made   in pursuance   to   the   judgment   delivered   by   the   CAT   on 03.05.2016.     The   relevant   portion   of   the   communication reads as follows:­ “.........

In   exercise   of   the   powers   conferred   by   the proviso   to   Article   309   of   the   Constitution   the   President have further decided that principles for inter­se­seniority of Direct Recruit Group ‘A’ officers and promotee Group ‘B’ officers inducted into Group ‘A’ Junior Scale effective from the panel year 2012­13, stands modified/amended as per Annexure­I. .........” This leaves no manner of doubt that the rules under IREM Vol.1 are also statutory rules.

23

25. In view of the above, there can be no manner of doubt that the Railways is not bound by the memorandum issued by the DoPT and are empowered to frame its own rules to lay down the service conditions of its employees.   We also hold that the IREM has statutory force and has been issued in exercise of powers vested under the proviso to Article 309 of the Constitution.

II Whether Shri R.K. Kushwaha, the direct recruit had laid   challenge   to   the   rules,   which   provide   for   giving weightage in the seniority to the promotee officers?

26. As   far   as   the   second   question   is   concerned   we   may note that we have already quoted the prayer clause of OA No.460 of 2016 filed before the CAT.  In the said OA there is not   even   a   whisper   of   a   challenge   to   the   policy   of   giving weightage   to   the   promotees.     In   fact   that   issue   was   not raised before the CAT.  The case set up by the direct recruits before   the   CAT   was   that   since   the   requisition   for recruitment had been issued on 23.10.2007, they should be 24 granted   seniority   from   that   date   in   view   of   the   judgment rendered by this Court in  N.R. Parmar’s  case (supra) read with DoPT OM dated 04.03.2014.  It has been urged by Shri Guru Krishna Kumar, learned senior counsel appearing for the direct recruit that prayer 8.3 in which it is prayed that corrigendum/amendment/corrections   slip   be   issued   in IREM  Volume­I  is  itself a prayer to quash the said IREM. We are unable to accept this contention.  If the direct recruit wanted to lay challenge to the policy of giving weightage to promotees then the basis for the challenge had to be made in   the   original   application   and   the   rule   granting   such weightage   had   to   be   specifically   challenged   in   the   prayer clause.  The promotees who were liable to be affected should have   been   arrayed   as   respondents.     Such   a   challenge cannot be entertained from the back door by merely alleging that corrigendum/ amendments/corrections to the IREM be issued.  Neither the corrigendum, nor the amendment or the corrections   could   result   in   the   quashing   of   rule   granting weightage.   Furthermore, if prayer 8.3 is read as a whole, 25 what is prayed is that the correction be made with a view to bring   the   IREM   in   line   with   DoPT   OM   dated   04.03.2014, which   is   based   on   the   principle   of   law   framed   in  N.R. Parmar’s case (supra).  

27. We   may   also   note   that   before   us   the   original application filed by Shri R.K. Kushwaha has been produced in which the main case set up was that in view of the law laid down in N.R. Parmar’s case (supra) the date of sending requisition   for   filling   up   the   vacancies   is   the   date   from which the direct recruits should be granted their seniority. The   following   averments  made  by   Shri   Kushwaha   in   para 4.3. of his OA are relevant:­ “.........

4.3 That in this regard it is submitted that while the applicant   was   working   in   Group­A   service   of   IRSSE, several   Group­B   officers   i.e.   87   in   number   has   been promoted/inducted   in   Group­A   service   of   IRSSE   vide order  dated   12.08.2014  for   the  panel  year  2012­13   and 2013­14   w.e.f   08.05.2014,   hence   such   promote   officers are entitled to get the benefit of seniority w.e.f 08.05.2009 after giving weightage of 05 years whereas the applicant being   Direct   Recruitee   is   entitled   to   get   the   benefit   of seniority w.e.f 23.10.2007 i.e. from the date of requisition for filling up the vacancies of Group­A service in view of the decision given by the Hon’ble Supreme Court of India 26 in the case of Union of India  Vs  NR Parmar in which the issue   of   seniority   in   between   Direct   Recruitee   and Promotees have been settled on 27.11.2012 against which the Union of India has also filed Civil Review and the same has been dismissed on 07.08.2013.  .........”

28. This leaves no manner of doubt that the only case set up by the direct recruit was that he was entitled to seniority from 23.10.2007, the date on which requisition for filling up the   direct   recruit   posts   was  sent   and  the   promotees  after being   given   due   weightage   of   05   years   were   entitled   to seniority w.e.f. 08.05.2009.  Therefore, he cannot now urge that he had laid challenge to the rule providing for grant of weightage to the promotees.

III Whether the findings of the CAT in respect of  N.R. Parmar’s  case   (supra)   was   limited   to   removing   the arbitrariness only in respect of ‘DITS’?

29. Before dealing with this issue we may note that we are not at all in agreement with the interpretation sought to be given by the direct recruits to the decision rendered in N.R. 27 Parmar’s  case   (supra),   that   they   are   entitled   to   seniority from the date of requisition.  On a perusal of the judgment in N.R. Parmar’s case (supra), we find that in that case this Court was dealing with those situations where the process of either direct recruitment or promotions takes an unduly long  time.   As per the then existing  rules, the persons so appointed/promoted would get seniority from the date when they   joined.     This   Court   found   that   this   could   lead   to arbitrariness   on   account   of   the   fortuitous   date   of appointment.   In certain cases, the process of recruitment by   a   particular   mode   would   start   much   earlier   but   for extraneous   reasons,   selection  by  one   mode  would   be  very quick and slow by the other mode.   Therefore, to eliminate this anomaly and reduce arbitrariness, this Court laid down that   the   date   of   requisition   for   filling   up   the   posts   by   a particular recruitment process could be taken as the year to which seniority could be given to persons recruited under that process.  However, the Court also clearly laid down that this would apply only if the recruitment year is the same as 28 the   year   of   vacancy.     It   is   obvious   that   neither   the promotees nor the direct recruits can be given seniority from a year when such vacancies do not even exist.   The Court also   laid   down   that   the   administrative   authority   should ensure that recruitment process should be initiated during the vacancy year itself.  

30. In this behalf, we may make reference to the following observations   of   this   Court   in   the   case   of  N.R.   Parmar (supra) :

“34.1. If the process of recruitment has been initiated during   the   recruitment   year   (in   which   the   vacancies have arisen) itself, even if the examination for the said recruitment   is   held   in   a   subsequent   year,   and   the result is declared in a year later (than the one in which the   examination   was   held),   and   the   selected candidates joined in a further later year (than the one in   which   the   result   was   declared),   the   selected candidates   will   be   entitled   to   be   assigned   seniority, with   reference   to   the   recruitment   year   (in   which   the requisition   of   vacancies   was   made).   The   logic   and reasoning   for   the   aforesaid   conclusion   (expressed   in the   ON   dated   2­2­2000)   is,   if   the   process   of   direct recruitment is initiated in the recruitment year itself, the   selected   candidate(s)   cannot   be   blamed   for   the administrative   delay,   in   completing   the   process   of selection.
34.2.  The words “initiation of action for recruitment”, and the words “initiation of recruitment process”, were 29 explained to mean, the date of sending the requisition to the recruiting authority.”

31. In the present case though the requisition was sent in the year 2007, the vacancies related to the year 2009 and, therefore,   the   CAT   as   well   as   the   High   Court   rightly   held that the direct recruits were not entitled to promotion from the year 2007.  The CAT only ordered that the arbitrariness which   may   arise   due   to   fixation   of   ‘DITS’   be   removed   by fixing the ‘year of allotment’ as the relevant criteria. IV Whether   by   issuing   the   memorandum   dated 05.03.2018   amendment/modifying   rules   327­341   the Railways have violated the order issued by the CAT?

32.   We have quoted the order of the CAT hereinabove and what the CAT ordered was that the IREM determining the inter   se   seniority   based   on   DITS   was   clearly   flawed   and arbitrary.  The order dated 09.06.2015 and 12.12.2014 were quashed and set aside being violative of the judgment of this Court   in  N.R.   Parmar’s  case   (supra)   and   the   DoPT 30 guidelines.   As held above there was no challenge to Rule 334 which provides for giving weightage to the promotees. This Rule was not challenged directly or indirectly and the CAT has not at all dealt with this Rule.  We may add that an identical rule has been held to be valid by this Court in A.K. Nigam   vs.   Sunil Misra2.   This judgment has been noted by the CAT and yet the CAT did not discuss this judgment. It is obvious that the CAT did not go into the validity of Rule

334.   All that the CAT held was that instead of the ‘DITS’ being   the   determining   factor   to   determine   the   year   of promotion, the seniority would be determined with reference to the ‘year of allotment’ following the principle of IAS Rules. The   CAT   rightly   dismissed   the   contempt   petition   holding that the entire discussion with reference to  N.R. Parmar’s case (supra) was regarding removing the arbitrariness due to ‘DITS’ and bringing it in line with the concept of vacancy year/allotment   year   which   does   away   with   the   problem. Thus the CAT itself has clearly held that it had not at all 2 (1994) Supp.2 SCC 245 31 dealt with the issue whether promotees were not entitled of being granted weightage of 5 years service for determining the seniority.  This question never arose before the Tribunal and   as   such   the   action   of   the   Railways   in   amending   the Rules to bring them in line with the judgment of the CAT by removing ‘DITS’ as the determining factor for fixing seniority and   introducing   the   ‘year   of   allotment’   as   the   criteria   for determining the seniority can in no manner be said to be violative or against the order of the CAT.   In fact, the said order is totally in line with the order of the CAT.

33. We   may   add   that   lengthy   arguments   have   been addressed on behalf of the direct recruits contending that the   rule   which   provides   that   weightage   be   given   to   the promotees is arbitrary and in this regard reference has been made to the judgment of this Court in P. Sudhakar Rao & Ors.   vs.  U. Govinda Rao & Ors3  and it is urged that in view   of   this   judgment   the   decision   of   this   Court   in  A.K. 3 (2013) 8 SCC 693 32 Nigam’s  case (supra) is no longer good law.   On the other hand   both   the   learned   ASG   and   the   senior   counsel   for appellants have urged that  A.K. Nigam’s  case (supra) still holds the field as  P. Sudhakar Rao’s  case (supra), was a case decided in a fact scenario where there was no provision for   granting   such   weightage.     It   was   also   urged   that   the practice   of   giving   weightage   to   the   promotees   in   the Railways has been in vogue since 1955 and the railways has justified its action of giving weightage to the promotees by urging that the promotees are doing the same work in the lower   post   as   is   being   done   by   them   after   promotion. Therefore,   there   is   no   change   in  the   nature   of   their   work after promotion and the benefit of weightage is given for the experience which they have got for doing such work.  It has also   been   urged   that   most   of   the   promotees   are   already getting   higher   emoluments   than   are   payable   to   the   direct recruits on their induction and this is also a factor taken into consideration for granting this weightage.   We are not going into these questions.  We have clearly held that there 33 was no challenge to Rule 334 in the original application and such   a   challenge   cannot   be   countenanced   or   entertained either   in   contempt   proceedings   or   on   behalf   of   the respondents while defending the appeal in this Court.   We make it clear that we have not expressed any opinion on the rival contentions of the parties on this issue.

34. The   situation   as   on   date   is   that   rules   have   been amended.  These rules have to be implemented.  Neither the promotees   nor   the   direct   recruits   have   challenged   these rules.  We are therefore not going into other issues raised by the parties.  

35. We dispose of the appeal by holding that the CAT had only directed that instead of ‘DITS’, the ‘year of allotment’ should   be   the   determining   factor/criteria   for   determining the  inter   se  seniority.     We   further   hold   that   there   was neither any challenge to Rule 334 of the IREM Vol. 1 in the original application nor did the CAT go into this issue.  We, 34 accordingly   uphold   the  order  dated 02.04.2018 passed  by the CAT, Patna Bench dismissing the contempt petition filed by the direct recruit Mr. R.K. Kushwaha.  Consequently, the Transferred Case No. 52/2018 i.e. Writ Petition being CWJC No. 6489/2018 before the Patna High Court is dismissed.

36. Applications   for   intervention/impleadment   are rejected.

37. The   contempt   petitions   and   all   pending   applications shall also stand disposed of.

SLP (C) NO(S). 4144 OF 2018

38. This petition is directed against the interim order dated 29.01.2018 passed by the High Court of Madhya Pradesh, Principal   Bench   at   Jabalpur   in   Writ   Petition   No.   299   of 2018.  The petition itself has been finally disposed of by the 35 High Court vide order dated 20.03.2018 and, therefore, this petition is rendered infructuous and disposed of as such.

………………………..J. (Madan B. Lokur) ………………………..J. (S. Abdul Nazeer) …………………………J. (Deepak Gupta) New Delhi September 07, 2018