Central Administrative Tribunal - Madras
Subash Chandra Prusty vs M/O Micro Small And Medium Enterprises on 18 February, 2026
1 OA No. 123/2021
.CENTRAL ADMINISTRATIVE TRIBUNAL
CHENNAI BENCH
OA/310/00123/2021
Dated this, the 18th day of February Two Thousand Twenty Six
CORAM : HON'BLE MS. VEENA KOTHAVALE, Member (J)
HON'BLE MR. SISIR KUMAR RATHO, Member (A)
Subash Chandra Prusty, S/o. Baidyanath Prusty,
Golden Jubilee Apartment,
A-Block, Flat No. 17,
II Floor, Anna Main Road,
K.K.Nagar, Chennai 600078. .....Applicant
By Advocate M/s. R.Malaichamy
Vs.
1.Union of India, rep by the Secretary,
Ministry of MSME,
Udyog Bhawan, New Delhi 110011.
2.The Chairman & Managing Director,
The National Small Industries Corporation Ltd.,
NSIC-Bhawan,
Okhla Industrial Estate,
New Delhi 110020.
3.The General Manager (HR),
NSIC Ltd., Head Office,
NSIC Bhawan,
Okhla Industrial Estate,
New Delhi 110020.
4.The Senior Branch Manager,
NSIC Limited, Branch Office,
309, Aiema Tower, Ambattur, Chennai 600058. ....Respondents
By Advocates Mr. K. Rajendran, SCGSC (R1),
Mr. N. Balamuralikrishnan (R2-R4)
2 OA No. 123/2021
ORDER
(Pronounced by Hon'ble Mr. Sisir Kumar Ratho, Member(A)) This OA has been filed by the applicant seeking the following reliefs:-
"1. To call for the records of the 3rd respondent pertaining to his order made in No.SIC/PERS.I/2(129)/2020 dated 15.06.2020 and the order made in No.SIC/PERS.1/2(129)/2019 dated 02.11.2020 and set aside the same; consequent to,
2. direct the respondents to advance his promotion to the cadre of Deputy Manager (Accounts) at par with Shri.B.Rajaraman & Shri.Satvinder Singh and to the cadre of Deputy General Manager (Finance) at par with Mr.Syed Mohd. Noman with all attendant benefits including seniority and pay benefits; and
3. To pass such further or other orders as this Hon'ble Tribunal may deem fit and proper in the circumstances of the case. "
2. The brief facts of the case as submitted by the applicant, are as follows :-
2.1. The applicant joined the 2nd respondent department ie., NSIC as Accounts Officer (AO) on 31.07.1995. The applicant appeared in the last group of final ICWA qualifying examination during the probation period as it was in continuing process at the time of joining in NSIC. The applicant qualified in the ICWA qualifying examination during December 1995.
Thereafter, relying upon the circular dated 09.05.1988 which was in force at that time, he made a representation on 08.04.1996 to the competent authorities for promotion to the post of Deputy Manager, Accounts (D.M. (A/cs)) for which there was no response. Hence, the applicant made a 3 OA No. 123/2021 representation dt. 18.05.1999 to which he received reply that action would be taken at the appropriate time.
2.2. In the meanwhile, the department issued instructions on 20.08.1996 and changed the policy to grant of two increments instead of promotion to the higher cadre with a condition that such official should acquire higher qualification on or after 20.08.1996 which is not applicable to the case of the applicant on the reason that he has acquired higher qualification in the month of December 1995, i.e., much before 20.08.1996 and hence, the applicant was due for promotion to the cadre of Deputy Manager (Accounts) after completion of probation period. Approximately after one year of his appointment, the department appointed one Mr. Syed Mohd. Noman on 06.06.1996 and he appeared in the departmental interview on 07.06.1997 for the cadre of D.M./D.M.(A/cs) and another departmental interview was conducted on 23.07.1998 in which he has not appeared in the interview but got promotion from the cadre of AO to D.M. (A/cs) in the month of October 1998 for the reasons best known to the department. When the said Noman and others were in probation till the year 1998 then it could not be possible for selection and promotion to D.M. (A/cs) on the basis of interview during June 1997 as per reply of GM (HR) dt. 02.11.2020, but they were promoted. While it is so, the applicant made several representations from the years 1996 to till date, requesting for advancing his date of promotion to the cadre of Deputy Manager (Accounts) and subsequent promotions by considering 4 OA No. 123/2021 his ICWA eligibility in the month of December 1995 as per circular dt. 09.05.1988. Lastly, the 3rd respondent replied on 15.06.2020 that the applicant does not meet both the conditions at the time of qualifying the final examination of ICWA, i.e., December 1995 and hence he is not eligible. 2.3. The applicant made a detailed representation dt. 14.10.2020 replying to the letter/order dt. 15.06.2020 that when the applicant was said to be not eligible to get promotion as he acquired higher qualification before completion of probation period, then on the same lines, the two other officers viz., Shri. B. Rajaraman and Shri. Satvinder Singh ought not to have been promoted just after completion of probation period after acquiring higher qualification during probation period. The internal selection was conducted on 07.06.1997 and the candidates were selected with the condition to be promoted after completion of probation period as per the reply dt. 16.03.2020 and 02.11.2020 of 3rd respondent and they have not revealed the rule position of keeping the interview panel valid for two years. 2.4. The 3rd respondent in his reply dt. 02.11.2020 stated that the interview was conducted on 07.06.1997 and the 2nd interview was conducted 23.07.1998, which the said Mr. Noman did not appear. Under such circumstances, it is not clear how the said Mr. Noman was promoted to the cadre of Deputy Manager (Accounts) during October 1998. Therefore, the applicant alleges that the competent authority used to pick and choose their known persons and favour them promotions to the higher cadre. 5 OA No. 123/2021 2.5. The applicant being dissatisfied with the denial of his legitimate expectation of promotion to the higher cadre, applied for higher cadre through proper channel in some other department. Aggrieved by the denial of applicant's legitimate expectation of promotion to the cadre of Deputy Manager (Accounts) and subsequent higher promotions, the applicant has filed this OA seeking the aforesaid relief.
3.1. The respondents have filed their reply opposing the relief prayed by the applicant. The respondents have contended that the relief sought in the OA is badly hit by limitation in as much as the applicant was informed about the stand of the department in respect of his promotion way back in the year 1996 itself. Further for acquiring higher qualification, he was granted two additional increments in the year 1996 as per his written request on 18.11.1996. Thus he was very much aware of the actual position. It is a well settled law that repeated representations will not give rise to fresh cause of action. The applicant is trying to rake up an issue which attained finality 25 years back by unsettling the settled issue. Thus, on this ground of abnormal delay and latches, the OA deserves to be dismissed.
3.2. The respondents have contended that the applicant joined service as Accounts Officer on 31.07.1995. He was on probation at the time of qualifying the final examination of ICWA i.e., in December, 1995 and was not fulfilling the criteria of completion of one year service in NSIC and closure of probation period in terms of circular dt. 09.05.1988. Hence, he 6 OA No. 123/2021 was neither eligible nor entitled for promotion to the next higher grade in terms of the said circular. Since, the circular dt. 09.05.1988 was superseded by the circular dated 20.08.1996, there was no need to refer the circular dt. 09.05.1988, and accordingly, as per the new circular dt. 20.08.1996, he was given two additional increments as per his request dt. 18.11.1996. 3.3. It is contended that the Selection Committee in its meeting held on 23.07.1998 interviewed 17 departmental candidates for the post of Deputy Manager against direct recruitment quota from the cadre of DO/DO (Tech)/AO including the applicant. The selection committee found fit only 02 employees ie., 1 - DO(Tech) and 1 - AO suitable for appointment to the post of Deputy Manager. As such the 15 other employees including the applicant were not found suitable for the post of DM. The applicant was granted two increments w.e.f. 19.11.1996 on acquiring the qualification of ICWA in December, 1995 in terms of circular dt. 20.08.1996 as per his request dt. 18.11.1996. As per the circular dt. 20.08.1996, there was a provision for grant of two additional increments on acquiring professional qualification of CA/ICWA/CS/Degree in Engineering. The said circular superseded all earlier provisions/instructions applicable to the employees of the Corporation on issue of incentive for acquiring higher qualification including the circular dt. 09.05.1988 referred by the applicant. 3.4. The respondents have contended that the applicant was on probation for a period of two years w.e.f. 31.07.1995 upto 31.07.1997. The probation 7 OA No. 123/2021 period of the applicant was further extended for a period of one year w.e.f. 31.07.1997 vide office order dt. 17.07.1998, based on adverse entries in Performance Appraisal Report and Annual Confidential Report for the year 1995-96, a copy of which was also served on him. His probation finally concluded w.e.f. 30.07.1998 but however he did not fulfil the eligibility criteria as he was still on probation as on December 1995. The Selection Committee in its meeting held on 07.06.1997 interviewed 13 Accounts Officers including the applicant for the post of Deputy Manager (A/cs). These 13 Accounts Officers (AOs) were possessing the professional qualification of CA/ICWA and working in NSIC from different years ie., 1989, 1990, 1993, 1995 and 1996. Out of the 6 Accounts Officers from the year 1989 to 1993, the Selection Committee found suitable 5 Accounts Officers for appointment as Deputy Manager (A/cs). Out of the remaining 7 Accounts Officers, the selection committee found 6 Accounts Officers of the year 1995 and 1996 suitable for appointment as Deputy Manager (A/cs) after successful completion of their probation period, as all these 6 selected Accounts Officers were running in probation period. Therefore, it may be seen that out of the total 13 AOs including the applicant interviewed by the selection committee, only 11 Accounts Officers were recommended for appointment as Deputy Manager (A/cs) excluding Shri. G.P. Sharma of 1993 batch and the applicant of 1995 batch. Further, it is also contended that not only the said Mr. Syed Mohd. Nomaan but other Accounts officers, who 8 OA No. 123/2021 were junior to him were also found suitable for appointment as Deputy Manager (A/cs) by the Selection Committee. Since, the orders of selected 6 Accounts Officers for the post of Deputy Manager (A/cs), who were on probation period were to be issued after successful completion of their probation period, the contention of the applicant about the validity of panel by one year does not arise. Further, when the Selection Committee had not found the applicant suitable for appointment as Deputy Manager (A/cs), the question of granting him back dated promotion after closure of his probation does not arise. Further, it also contended that there was no Selection Committee by which candidates were interviewed on 23.07.1998 for appointment as Deputy Manager (A/cs). Hence, the presumption made by the applicant that the said Mr. Nomaan was promoted in the next interview in 1998 is incorrect as there was no Selection Committee meeting for the post of Deputy Manager (A/cs) held in 1998. Further, it is a matter of record that the applicant has time and again proved to be inefficient in his competency as his probation was extended due to adverse remarks based on his Performance Appraisal and ACRs and also being found not suitable by the Selection Committees for promotion to Deputy Manager (A/cs). Hence applicant asking for the same benefit at par with Mr. Nomaan, is not tenable.
3.5. It is further contended that during the tenure of his service in NSIC has got three promotions. Further, it is submitted that the applications of the 9 OA No. 123/2021 applicant for outside employment were forwarded as per rules of the Corporation. The applicant was granted NOC whenever, he applied through Head Office for attending the interview. The applicant was not selected by the selection committee in its meeting held on 07.06.1997. Hence, there is no merit to grant promotion to the applicant on par with Mr. Syed Mohd. Nomaan. Accordingly, the respondents have prayed for dismissal of the OA as devoid of merits.
4. The applicant has filed a rejoinder contesting the reply filed by the respondents reiterating his contentions made in the OA to which the respondents have also filed a reply to rejoinder.
5. Heard both sides and perused the records.
6. The applicant has approached this Tribunal aggrieved by the rejection of his application relating to grant of benefit of upgradation to the next higher grade admissible to the employees on acquiring professional qualifications. The applicant has been making serious representations since 1996 till 2020 before approaching this Tribunal in 2021. The service condition of the applicant is governed by the Recruitment and Promotion Rules, 1982. The relevant portion is extracted below :-
"
Sl. Category Name of the post Scale of Method of In case of selection No. of the post pay Recruitment grade from which whether by promotion/selection direct or by to be made promotion 10 OA No. 123/2021
6. GENERAL (a) Deputy 700- 40% by Dev. Officers with 5 DIVISION Manager/Deputy 1300 promotion. yrs, experience in the Manager (Mkg.) 60% by grade. With a view to direct encouraging recruitment departmental candidates, (D.Os.) one third of this quota will be offered to them provided they possess the minimum qualifications and experience prescribed for the post.
"
7. The applicant seeks relief under the office order dt. 09.05.1988 which is extracted below :-
"No. SIC/PERS.I/1(128)/83 CIR No.134/88
Dated 9.5.1988
OFFICE ORDER
It has been decided with the approval of the Competent Authority that the provisions relating to grant of benefit of upgradation to the next higher grade admissible to the employees on acquiring any professional qualifications as contained vide circulars No. STC/PERS.I/1(128)/83 dated 15.6.83 and 23.6.83 will stand substituted as under:-
(a) That the employees holding the post of Development Officers or any other higher posts but not those in the scale of pay of Rs.1500-
1800/-on qualifying in the final examination of A.M.I.E./Cost/Chartered Accountancy/MBA Examination or any other identical qualifications like B.E., would be eligible for up-gradation to the next higher grade in their respective cadre. Such upgradation would be counted against posts for 'direct recruitment quota wherever existing and otherwise, against supernumerary posts to be treated as personal to them.
(b) The employees holding posts below the level of Development Officer on acquiring any of the above qualifications, will also be entitled to upgradation to such higher post minimum of which would not be less than the scale of pay of Rs.550-900, to be treated as personal to them. Other provisions contained vide the aforesaid circulars remain the same.
It has been further decided that the above benefit of upgradation to the next higher grade would be admissible, on completion of minimum of one 11 OA No. 123/2021 year's service in the Corporation and on successful completion of period of probation, if any, at the time of their qualifying in any of the above professional examinations.
-s/d-
(C.L. Nangin) General Manager (P&A)"
(emphasis supplied)
8. The respondents have stated that by the time the applicant acquired the eligibility for such upgradation, the policy has been changed by virtue of the circular dt. 20.08.1996. The same is extracted below :- " Circular No.213/96
No.SIC/PERS.I/8(67)/1996 Dated: 20.08.1996
CIRCULAR
With a view to encourage the employees of the Corporation at various levels to acquire higher qualifications, it has been decided with the approval of competent authority, to provide the following incentives:-
GROUP "D" POSTS On acquiring the qualification of One additional increment in the Matriculation from recognized existing scale of Pay institute/Board On acquiring the qualification of Two additional increments Intermediate/Senior Secondary from recognized Institute/Board GROUP "C" POSTS On acquiring the qualification One additional increment in the of Graduation from recognized existing scale of pay University After graduation on successfully Two additional increments completing a professional Certificate course or a Diploma course of two years from a recognized Institution 12 OA No. 123/2021 GROUP "B" POSTS If obtains professional diploma of Two additional increments in the minimum duration of two years from a existing scale of pay recognized institution or Intermediate qualification of Chartered Accountancy or ICWA or Company Secretary After graduation on successfully Two additional increments acquiring the qualification of Post- Graduation of the duration of two years from a recognized University /Institution.
GROUP "A" POSTS If obtains the qualification of MBA or Two additional increments in the equivalent, Degree in Engineering or existing scale of pay equivalent, CA/ICWA/Company Secretary, from a Recognized University/Institute The above incentive will come into force from the date of issue of this circular and shall be applicable only in case of higher qualifications acquired on or after the said date."
(emphasis supplied)
9. As can be seen from the letter circular dt. 20.08.1996, the upgradation to the next higher grade has been amended for grant of additional increment by virtue of this order. However, the circular at the bottom also stipulates that "The above incentive will come into force from the date of issue of this circular and shall be applicable only in case of higher qualifications acquired on or after the said date." Since the applicant has acquired higher qualification during December 1995 which is prior to the circular dt. 20.08.1996, the same shall not be applicable in his case. A perusal of the office order dt. 09.05.1988 provides that for grant of upgradation to the next 13 OA No. 123/2021 higher grade an employee has to acquire the professional qualification and the applicant has acquired one such professional qualification ie., ICWA final examination in December, 1995. However, the same office order also stipulates that the benefit of upgradation would be admissible on successful completion of period of probation, if any, at the time of their qualifying the professional examination. As per the record, the applicant acquired the professional qualification of ICWA in December, 1995, but he did not successfully complete the probation at the time of qualifying the professional examination because his probation period was closed on 30.07.1998. Therefore, he stands peculiarly excluded from the benefit of both the office orders dt. 09.05.1988, as well as dt. 20.08.1996.
10. However, the learned counsel for the respondents submits that the applicant was getting benefit of two advance increments at his own request dt. 18.11.1996.
11. It is clear that the policy dt. 20.08.1996 created ambiguity in respect of employees who have acquired professional qualification prior to 20.08.1996 but have not completed the period of probation on or before 20.08.1996 which is the case of the applicant. Ordinarily, in such a situation, the benefit of 1988 policy should accrue to him but the applicant was allowed benefit of 1996 policy at his own request. Thus having opted for a benefit under the policy of 1996, he cannot now challenge the same at a belated stage.
14 OA No. 123/2021
12. Learned counsel for the applicant argues that two other employees have been allowed upgradation to the new higher grade at a later date following completion of their probation period. However, we find that these two candidates have been promoted through their selection in the departmental committee on regular basis through promotion quota which is a different source of appointment. It is also stated that the applicant also participated in the same selection process. We are of the view when the source of appointment is different one being through promotion quota and the other one is of direct recruitment quota, the analogy of comparing senior / junior does not apply.
13. In view of the above, we do not find any merit in the case and the same is dismissed as being devoid of merits. No costs.
(Sisir Kumar Ratho) (Veena Kothavale)
Member (A) Member (J)
18.02.2026
SKSI
Digitally signed
by HP
S.S. IYER, PS Date:
2026.03.04
12:00:21
+05'30'