High CourtsSingle Bench(2026) 09 SHI CK 1065

Anjori Kapoor vs State Of Himachal Pradesh & Ors.

High Court Of Himachal Pradesh · Decided on 3 September 2026

HON’BLE JUDGES
Jyotsna Rewal Dua, J
RESULT
Allowed
CASE NUMBER
CWP No. 13417 of 2024

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Judgment

174 paragraphs · 12,939 words

Jyotsna Rewal Dua, Judge Asserting her seniority over respondent No. 4, petitioner contends that respondent No. 4 holding substantive rank of Superintending Engineer could not have been upgraded and then promoted to the post of Chief Engineer to be brought at par with her rank as Chief Engineer and subsequently further appointed to the higher cadre post of Chief Executive Officer-cum-Secretary in the respondent Himachal Pradesh Housing and Urban Development Authority (HIMUDA), whereas, petitioner who is senior to respondent No. 4 has been appointed as Advisor (Policy & Strategy) – a redesignated post of Chief Engineer. According to the respondents, post of Chief Executive Officer-cum-Secretary and the post of Advisor (Policy & Strategy) enjoy same rank & status, therefore, the grievance raised by the petitioner is imaginary, she has no locus standi to institute this petition, which is even otherwise not maintainable. Petitioner has inter alia also questioned upgradation of post of Superintending Engineer held by respondent No. 4 to that of Chief Engineer as a measure personal to him and his consequent ‘promotion on regular basis as such’ being not in conformity with Rules. As per petitioner, respondents have unduly favoured respondent No. 4. According to the respondents impugned actions are all lawfully carried out besides alleging acquiescence on part of the petitioner.

2. The Case

2(i) Petitioner and respondent No. 4 are both serving in the respondent - HIMUDA. Petitioner is senior to respondent No. 4. Their service particulars relevant to the controversy are as under:-

Assistant Executive Superintending Engineer Engineer Engineer (AE) (EE) (SE)

Petitioner 18.10.1996 16.06.2007 01.09.2014

Respondent 11.12.1996 16.06.2007 20.03.2017 No. 4

2(ii) Promotion from the post of Superintending Engineer lies to the rank of Chief Engineer. ‘Recruitment & Promotion Rules for the post of Chief Engineer (Civil) Class-I (Gazetted) in HIMUDA’ have been framed. The cadre of Chief Engineer consists of one post which is a selection post to be filled up by promotion failing which by deputation. Superintending Engineer with 20 years’ service in gazetted rank including five years service as Superintending Engineer is eligible for promotion as Chief Engineer. Officers holding equivalent post in the State Government or under other State Governments/Government of India are eligible to be deputed as Chief Engineer. The relevant Rules are as under:-

“1.

Name of Post Chief Engineer

2.

Number of Post 01 (one)

3.

Classification Class-I (Gazetted)

4.

Scale of Pay (be given Rs. 18600-500-22100 in the expanded notation

5.

Whether selection post Selection or Non-selection post

… … …

… … …

10.

Method of Recruitment, By promotion failing which by whether by direct deputation. recruitment or by promotion, deputation, transfer and the percentage of posts to be filled in by various methods.

11.

In case of recruitment i) Promotion: Superintending by Promotion, Engineer with 20 years service deputation, transfer in Gazetted rank including five grade from which years service as Superintending promotion/deputation/ Engineer.

transfer is to be made ii) Deputation: Officers holding equivalent post in the State Govt. or under other State Govts. Or under the Govt. of India.

1. In all cases of promotion, the continuous adhoc service rendered in the feeder post, if any, prior to regular appointment to the post shall be taken into account towards the length of service as prescribed in these rules for promotion subject to the conditions: i) That in all cases where a Junior person becomes eligible for consideration by virtue of his total length of service (including the service rendered on adhoc basis) in the feeder post in view of the provision referred to above, all persons senior to him in the respective category/post/cadre shall be deemed to be eligible for consideration and placed above the Junior person in the field of consideration; ii) Provided that all incumbents to be considered for promotion shall possess the minimum qualifying service of at least 3 years or that prescribed in the R & P Rules for the post whichever is less; iii) Provided further that where a person becomes ineligible to be considered for promotion on account of the requirement of the preceding proviso, the person(s) Junior to him shall also b deemed to be ineligible for consideration for such promotion.”
Rule 10 & 11 of the above Rules underwent amendment in
“10Method of Recruitment, whether by direct recruitment or by promotion, deputation, transfer and the percentage of posts to be filled in by various methods.100% by promotion failing which on secondment basis.

11 In case of recruitment By promotion from amongst the by Promotion, Superintending Engineer(C) with deputation, transfer minimum 25 years service in Gazetted grade from which rank including three years regular or promotion/deputation/ regular combined with continuous adhoc transfer is to be made service as Superintending Engineer (C) failing which on secondment basis from amongst the incumbents working in the identical pay scale on analogous posts in other HP Government Departments/ Central Government with similar service condition.”

Petitioner, the seniormost Superintending Engineer, was promoted to the post of Chief Engineer (Civil) in Level-31 of Pay Matrix of Rs. 148800-Rs. 218600 on regular basis vide Office Order dated 09.12.2022. This promotion was on the recommendations of the Departmental Promotion Committee. Consequent upon her promotion, petitioner was posted as Chief Engineer, HIMUDA (Head Office) at Nigam Vihar, Shimla.

2(iii) Next higher post in hierarchy in HIMUDA is that of Chief Executive Officer-cum-Secretary. The post is governed by Himachal Pradesh Housing and Urban Development Authority, Chief Executive Officer, Class-I (Gazetted), Appointment, Terms & Conditions of Service Rules, 2012. These Rules have been framed in exercise of power conferred by Section 11(1) of the Himachal Pradesh Housing and Urban Development Authority Act, 2004. Cadre of Chief Executive Officer consist of one post in Pay Band-5, Rs. 37400-67000 + Grade Pay Rs. 10000. The single post is to be

-6-

filled up by transfer/placement/secondment as under (relevant portion of the Rules):-

1.

Name of Post Chief Executive Officer

2.

Number of Posts 01 (one)

3.

Classification Class-I (Gazetted)

4.

Scale of Pay Pay Band-5, Rs. 37400-67000 + Grade Pay Rs. 10000

5.

Whether selection Selection post or Non-Selection post … … … … … …

10.

Method of 100% by transfer/placement/ Recruitment, secondment. whether by direct recruitment or by promotion, deputation, transfer and the percentage of posts to be filled in by various methods.

11.

In case of By transfer / placement / recruitment by secondment from amongst the Chief Promotion, Engineers (Civil), HIMUDA and Chief deputation, transfer Engineers (Civil), Himachal Pradesh grade from which Public Works Department having promotion/deputati one year’s regular service or regular on/ transfer is to be combined with continuous adhoc made service rendered, if any, in the grade failing which by transfer / secondment from amongst the Officers from any service of State Government in identical scale.

12.

If a Screening (1) The constitution of the Screening Committee exists, Committee for appointment from what is its amongst the Chief Engineers shall composition. be as under:-i) Chief Secretary to the Government of H.P. – Chairman ii) Principal Secy/Secretary (Per.) to the Govt. of H.P. – Member iii)Principal Secy./Secretary (Hsg.) to the Govt. of H.P. – Member iv) Engineer-in-Chief, HP,PWD/IPH – Member Procedure to be followed by the Screening Committee:-

The Committee shall be guided by the procedures and principles available for promotion to the selection Posts as laid down by the Government of Himachal Pradesh from time to time. The combined seniority list of Chief Engineers shall also be determined as per instructions of the Government of Himachal Pradesh issued from time to time.

Following amendment was carried out to above Rule 11 under notification dated 08.08.2019:-

“(a)

for the existing provisions against Column No. 11, the following shall be substituted, namely:-

“By placement/transfer/secondment from amongst the Chief Engineers (Civil), HIMUDA having one year’s regular service or regular combined with continuous adhoc service rendered, if any, in the grade, or the Chief Engineers (Civil), Himachal Pradesh Public Works Department having one year’s regular service or regular combined with continuous adhoc service rendered, if any, in the grade and having atleast one and half year residual service on the date of occurrence of vacancy, failing which by transfer/secondment from amongst the officers from any service of State Government in identical scale” and

(b)

for the existing provisions against Column No. 12, the following shall be substituted, namely:-

“The constitution of the Screening Committee for appointment to the post of Chief Executive Officer, HIMUDA from amongst the Chief Engineers shall be as under:-

(i)

Chief Secretary to the Government of HP … Chairman

(ii)

Additional Chief Secretary (Personnel) to the Government of Himachal Pradesh … Member

(iii)

Additional Chief Secretary (Housing) to the Government of Himachal Pradesh … Member

(iv)

Engineer-in-Chief, HPPWD/HPIPH … Member

Procedure to be followed by the Screening Committee:-

The Committee shall be guided by the procedures and principles available for promotion to the selection posts as laid down by the Government of Himachal Pradesh from time to time. The combined seniority list of Chief Engineers shall also be determined as per instructions of the Government of HP from time to time.” .

2(iv) Cadre of Superintending Engineer consists of two posts. Up to 09.12.2022, one post was held by the petitioner and the other by respondent No. 4. As noticed earlier, petitioner was promoted to the post of Chief Engineer as per R & P Rules on 09.12.2022. Petitioner’s junior i.e. respondent No. 4 at that time was still serving as Superintending Engineer. Noting sheets placed on record (Annexure P-8, colly.) make it evident that Government of Himachal Pradesh on 13.01.2023 approved to upgrade the post of Superintending Engineer manned by respondent No. 4 to that of the Chief Engineer, as a measure personal to him, subject to the approval of the Board of Directors of HIMUDA. The noting sheets are also to the effect that upgraded post was to be deemed as downgraded on its vacation by the occupant by virtue of his promotion/retirement, in future. The matter was processed further by the respondents and consequent upon approval of the ‘Service Committee’ by circulation, post of Superintending Engineer held by respondent No. 4 was upgraded to that of Chief Engineer in higher pay level (same as provided to regular post of Chief Engineer) as a measure personal to the said incumbent. The upgraded post of Chief Engineer was to be deemed as downgraded to that of Superintending Engineer on its incumbent’s vacating the same by virtue of promotion/retirement in future. The Office Order issued on 01.02.2023 in this regard is as under:-

“Consequent upon approval of “Service Committee” by circulation as conveyed by Principal Secretary (Housing) to the Government of Himachal Pradesh on 31.01.2023, a post of Superintending Engineer (Civil), North Circle, HIMUDA Dharamshala, District Kangra is hereby upgraded to that of Chief Engineer in the pay level-31 of matrix Rs. 148800-218600 as a measure personal to the existing incumbent with immediate effect in the interest of HIMUDA. The upgraded post of Chief Engineer shall be deemed downgraded to that of Superintending Engineer as and when the occupant vacates the upgraded post by virtue of promotion/retirement, in future.”

Pursuant to above, meeting of Departmental Promotion Committee (in short ‘DPC’) was convened the very next day i.e. 02.02.2023 for making promotion to such upgraded post of Chief Engineer (Civil). The DPC recommended respondent No. 4’s promotion to the upgraded post of Chief Engineer (Civil) as under:-

“The Committee was apprised that in HIMUDA one post of Chief Engineer and two posts of Superintending Engineer (Civil) are sanctioned. The post of Chief Engineer is filled-up. The Service Committee has approved upgradation of one post of Superintending Engineer, HIMUDA, North Circle Dharamshala manned by Dr. Surinder Kumar Vashisht to that of Chief Engineer as a measure personal to him in the pay Level-31 (Rs. 148800-218600). The upgraded post of Chief Engineer shall be deemed downgraded to that of Superintending Engineer as and when the occupant vacates the upgraded post by virtue of promotion/retirement, in future. Accordingly, post of Superintending Engineer, North, Dharamshala has been upgraded to that of Chief Engineer as measure personal vide office order No. HIMUDA: 5-67/2016-Admn.Vol.I - 23817-40 dated 01.02.2023.”

Same day, the aforesaid recommendations were accepted by respondent-HIMUDA and Office Order was issued on 02.02.2023 promoting respondent No. 4 – serving as Superintending Engineer (Civil) to the post of Chief Engineer (Civil), statedly on ‘regular basis’. Vigilance Clearance Certificate had not been issued to respondent No. 4. The aforesaid Office Order reads as under:-

“On the recommendation of the Departmental Promotion Committee (Higher) made in its meeting held on 02.02.2023, Dr. Surinder Kumar Vashisht, Superintending Engineer (Civil) is hereby promoted to the post of Chief Engineer (Civil) in the Level-31 of Pay Matrix of Rs.148800-Rs.218600 of HPCS (Revised Pay) Rules, 2022 on regular basis from the date of assuming the charge as such.

Consequent upon his promotion, Dr. Surinder Kumar Vashisht, Superintending Engineer (Civil) presently posted in HIMUDA North Circle Dharamshala is hereby posted as Chief Engineer, HIMUDA Dharamshala. The Officer is not entitled for TTA and joining time as no change of station is involved.

The above officer shall remain on probation for a period of two years or till the date of superannuation, whichever is earlier.

The above Officer shall exercise option to fix pay under FR-22, read with Rule-8 of Himachal Pradesh Civil Services Pay (Revised) Rules 2022 within a period of one month from the date of issue of this order.”

Consequent upon his such promotion, respondent No. 4 was posted as Chief Engineer (Works & Design), HIMUDA (Head Office), Nigam Vihar, Shimla. Petitioner was shown as Chief Engineer(PF&M), Head Office, HIMUDA, Shimla.

Petitioner did not raise any grievance to respondent No. 4’s upgradation and promotion as Chief Engineer at that time. Petitioner & respondent No. 4 both continued to serve as Chief Engineers.

2(v) Petitioner expected herself to be promoted/appointed to the next higher post in HIMUDA i.e. CEO-cum-Secretary, HIMUDA. Petitioner was the seniormost Chief Engineer in HIMUDA and satisfied eligibility conditions under the applicable Rules for being appointed as CEO. As on 08.12.2023, she had one year of regular service as Chief Engineer to her credit. Petitioner, however, was not being considered for appointment against the post of CEO-cum-Secretary, HIMUDA. Rather respondents had been filling up the post of CEO-cum-Secretary, HIMUDA by appointing different officers belonging to Indian Administrative Service on the said post from time to time. Petitioner being eligible for the post of CEO-cum-Secretary, preferred representations staking her claim to the post of CEO-cum-Secretary, HIMUDA. Her representations did not yield any positive response. It is at this stage that petitioner filed this writ petition on 04.10.2024 seeking following substantive reliefs:-

“i)

Issue a writ of certiorari or any other appropriate writ, order, or direction to quash the appointment and upgradation of the private respondent, Surinder Kumar Vashisht, to the post of Chief Engineer, as well as appointment of an IAS officer, to the post of CEO-cum-Secretary, being contrary to the provisions of HIMUDA Act & Recruitment and Promotion Rules framed thereunder; and

ii) Issue a writ of mandamus directing the respondents to appoint the petitioner to the post of CEO-cum-Secretary in accordance with the Recruitment and Promotion Rules, considering her as the only eligible candidate for the said post.”

In this writ petition instituted about one year & eight months after respondent No. 4’s promotion as Chief Engineer against upgraded post of Superintending Engineer, petitioner raised grievance to respondent No. 4’s upgradation and promotion as Chief Engineer besides seeking her own appointment to the post of CEO-cum-Secretary, HIMUDA. Notice of the writ petition was issued on 28.11.2024 when following order was passed:-

“Notice. Mr. Y.P.S.Dhaulta, learned Additional Advocate General and Mr. Anshul Gandhi, learned counsel, accept service of notice on behalf of respondents No. 1 and 2 and respondent No.3, respectively. Issue notice to respondent No.4, returnable for 23.12.2024. In addition to ordinary process, respondent No.4 be served by way of Dasti notice, on usual terms. Steps for service be taken within two days.

2.

Petitioner is presently serving as Chief Engineer in HIMUDA. She was promoted as such on 09.12.2022. Respondent No.4 was holding the post of Superintending Engineer in HIMUDA. Petitioner’s grievance is to the upgradation of the post held by respondent No.4 to that of Chief Engineer. Consequent upon upgradation of the post of Superintending Engineer to Chief Engineer vide order dated 01.02.2023, respondent was promoted to the post of Chief Engineer (C) on 02.02.2023. Petitioner contends that upgradation of post of Superintending Engineer held by respondent No.4 to that of Chief Engineer was an illegal act of respondents No. 1 to 3.

3.

Her further grievance is that respondents No. 1 to 3 are duty bound to make promotion to the post of Chief Executive Officer-cum-Secretary HIMUDA. According to the petitioner, the aforesaid is a promotional post from the category of Chief Engineer, but respondents No. 1 to 3 instead of making promotion to the post of Chief Engineer-cum-Secretary, had appointed an Indian Administrative Services Officer as CEO-cum-Secretary HIMUDA.

Let respondents file reply by 23.12.2024, responding to the above contentions.”

2(vi) Pleadings were being completed in this writ petition. In the developments took place:-

Documents appended with the writ petition (noting sheets/pages 71-72 of paper book) show that steps were taken by the respondents purportedly to rewamp and restructure HIMUDA. In this projected direction it was proposed to “re-designate one of the Chief Engineer posts as CEO (Policy and Strategy) and the existing CEO post as CEO (Administration and Execution or Operations), or any other suitable designation, both reporting to the next level”. In furtherance of this proposal, one post of Chief Engineer, HIMUDA was re-designated as Advisor (Policy & Strategy) as a personal measure. The Finance Department conveyed its ‘no objection’ to the proposal. The proposal was approved by circulation by the Board of Directors of HIMUDA on 26.04.2025. Notification was issued by the respondent-HIMUDA on 03.05.2025 re-designating one post of Chief Engineer, HIMUDA as Advisor (Policy & Strategy) in the Pay Level-31 of Pay Matrix (Rs. 182200-Rs.224100), on permanent basis. The re-designated post was to be governed by the same Rules & Regulations of the Authority as applicable to the post of CEO-cum-Secretary, HIMUDA. It was to have equivalent status to that of CEO-cum-Secretary, HIMUDA. The incumbent of the post was to report to the same authority as done by CEO-cum-Secretary, HIMUDA. The notification also conveyed that the upgraded post of Chief Engineer held as a measure personal may revert to its original position i.e. Superintending Engineer on its vacation by its occupant in the event of his promotion/appointment on one of the two posts i.e. CEO-cum-Secretary, HIMUDA and Advisor (Policy & Strategy). The notification dated 03.05.2025 reads as under:-

“The Governor of Himachal Pradesh is pleased to order the re-designation of one post of Chief Engineer, HIMUDA as Advisor (Policy & Strategy) in the pay Level-31 of the Pay Matrix ( 182200- 224100), on permanent basis, with the objection that the re-designated post shall focus on high-level policy formulation and strategic planning for HIMUDA, subject to the following terms and conditions:-

1.

The re-designated post shall be governed with the same rules and regulations of the Authority and the State Government (as admissible) as are applicable to the CEO-cum-Secretary, HIMUDA.

2.

The re-designated post shall have an equivalent status to that of the post of CEO-cum-Secretary, HIMUDA and shall report to the authorities as is being done by the CEO-cum-Secretary, HIMUDA either at administrative level or at HIMUDA’s level.

3.

The Department of Personnel (DoP) will be the appointing authority in the case of newly designated post of Advisor (Policy & Strategy) as similar as in the case of CEO-cum-Secretary, HIMUDA.

4.

The upgraded post of Chief Engineer held as a measure personal may revert to its original position, i.e., Superintending Engineer, if it is vacated by the occupying officer in the event of his/her promotion/appointment on one of the two posts (i.e. CEO-cum-Secretary, HIMUDA and Advisor, Policy &Strategy).”

Consequent to above decision, respondents issued notification on 27.05.2025 whereby petitioner serving as regular Chief Engineer, HIMUDA was appointed as Advisor (Policy & Strategy) against redesignated post of Chief Engineer, whereas, respondent No. 4 serving as Chief Engineer on the upgraded post of Superintending Engineer was appointed to the still higher post as CEO-cum-Secretary, HIMUDA. The notification reads as under:-

“On the recommendations of the Screening Committee, the Governor, Himachal Pradesh is pleased to order to make the following appointments in the Level-31 of the pay matrix ( 2,18,600), on regular basis, with immediate effect, as under:-

1.

Er. Anjori Kapoor, Chief Engineer, HIMUDA as Advisor (Policy & Strategy), HIMUDA.

2.

Er. Surinder Kumar Vashisht, Chief Engineer, HIMUDA as Chief Executive Officer (CEO), HIMUDA.

The officers shall have to exercise option for fixation of pay under the provision of FR-22 within a period of one month from the date of issue of this order.”

2(vii) Feeling aggrieved against respondent No. 4’s appointment as CEO-cum-Secretary, HIMUDA & denial of the same to the petitioner and seeking certain other ancillary reliefs, petitioner prayed for amending the writ petition which was allowed on petition are as under:-

“i)

Issue a writ of certiorari, or any other appropriate writ, order or direction, quashing the upgradation of the post of Superintending Engineer (North) to that of Chief Engineer (Works & Design) as a personal measure in favour of Respondent No. 4, being contrary to the sanctioned cadre strength and in violation of the Recruitment and Promotion Rules: and

ii) Issue a writ of certiorari, or any other appropriate writ, order or direction, quashing the order dated 27.05.2025 (Annexure P-19) i.e. subsequent appointment of Respondent No. 4 as Chief Executive Officer (CEO) of HIMUDA, being illegal, ultra vires the applicable R&P Rules, and flowing directly from the illegal upgradation to the post of Chief Engineer; and

iii) Issue a writ of mandamus directing the respondents to consider and promote the petitioner to the post of CEO-cum-Secretary (one sanctioned post), being the only eligible officer holding the sanctioned post of Chief Engineer (Civil) in HIMUDA, in accordance with the applicable R&P Rules.”

3.

Heard learned Counsel for the parties & considered the case file. In order to maintain brevity, the submissions made by learned Counsel for the parties & discussion thereupon have been enumerated in the succeeding paragraphs.

4. Consideration

An objection has been raised by the learned counsel for the respondents that petitioner has no locus standi to maintain this writ petition. According to them, petitioner was promoted to the post of Chief Engineer on 09.12.2022. Post of Chief Engineer was re-designated on 03.05.2025 as Advisor (Policy & Strategy) in the Pay Level-31 of the Pay Matrix ( 182200 – 224100). Petitioner was appointed as Advisor (Policy & Strategy), HIMUDA on the aforesaid post on 27.05.2025 on the recommendations of the Screening Committee. The post of Advisor (Policy & Strategy) is in the same pay scale as that of CEO-cum-Secretary, HIMUDA. Petitioner as Advisor (Policy & Strategy) does not report to CEO-cum-Secretary, HIMUDA. The incumbents appointed against both these posts enjoy equal status, pay and report to the same authority. No prejudice, therefore, has been caused to the petitioner by the appointment of respondent No. 4 as CEO-cum-Secretary, HIMUDA. It was also submitted that restructuring in HIMUDA by redesignating one post of Chief Engineer to that of Advisor (Policy & Strategy) was a policy decision of the respondents. Petitioner’s claim for promotion to the post of CEO-cum-Secretary, HIMUDA is not justified. The aforesaid is not even a promotional post from the rank of Chief Engineer. For all intents and purposes the post of CEO-cum-Secretary, HIMUDA is a post to be filled up by transfer/placement of eligible employees. The official respondents have accordingly transferred and appointed respondent No. 4 against the aforesaid post.

A further objection has been taken against petitioner having not assailed the upgradation of the post held by respondent No. 4 as Superintending Engineer to that of Chief Engineer. According to the respondents, post of Superintending Engineer held by respondent No. 4 had been upgraded to that of Chief Engineer on 01.02.2023. Learned Advocate General had been at pains to submit that upgradation amounts to creation of post; That respondent No. 4 had been promoted as Chief Engineer on regular basis by way of upgradation of the post of Superintending Engineer. This necessarily has to lead to logical assumption of creation of an additional post of Chief Engineer on regular basis. Respondent No. 4 served as such w.e.f. 02.02.2023. Petitioner did not raise any demur or objection against respondent No. 4’s serving as Chief Engineer on account of upgradation of the post of Superintending Engineer held by him to the post of Chief Engineer. Petitioner for the first time laid challenge to the aforesaid action by instituting this writ petition in October, 2024. On account of delay, laches as also acquiescence, petitioner is estopped in raising the issue of upgrading the post of Superintending Engineer held by respondent No.4 to that of Chief Engineer by creating additional post of Chief Engineer.

Gist of submissions made by learned Senior Counsel for the petitioner was that respondent No. 4 was a blue eyed person of the respondents. He had been given undue favours at every stage be it while unlawfully upgrading his post of Superintending Engineer to that of Chief Engineer and thereafter appointing him as CEO-cum-Secretary – the highest post in the hierarchy in HIMUDA. These promotions/appointments of respondent No. 4 were contrary to the governing Rules. In the process, great prejudice has been caused to the petitioner who with nothing adverse against her & despite being senior to respondent No. 4 has been denied the opportunity to serve as CEO-cum-Secretary, HIMUDA.

4(a) Concerning upgradation of specific post of Superintending

Engineer held by respondent No. 4 to that of Chief Engineer and promotion of respondent No. 4 on regular basis on such post:

Respondent No. 4 was serving as Superintending Engineer as on 09.12.2022 when petitioner was regularly promoted to the higher post of Chief Engineer. The cadre of Chief Engineer consists of single post, which in accordance with R&P Rules is to be filled up by way of promotion. There is no such pleading that work in the respondent-HIMUDA was suffering which required creation of any additional post of Chief Engineer or upgrading a post of Superintending Engineer to that of Chief Engineer. Yet somehow the proposal was initiated from top ranks of HIMUDA and travelled downward to upgrade one specific post of Superintending Engineer held by respondent No. 4 to that of Chief Engineer as a measure personal to him. The fact that there was no requirement for the additional post of Chief Engineer or for upgrading the post of Superintending Engineer to that of Chief Engineer, is quite obvious from the office order dated 01.02.2023 whereunder post of Superintending Engineer held by respondent No. 4 was ordered to be upgraded. In terms of this very order, the upgraded post of Chief Engineer was to be deemed as downgraded to that of Superintending Engineer as and when respondent No. 4 vacated the upgraded post. Thus, upgradation of the post of Superintending Engineer held by respondent No. 4 to that of Chief Engineer was a temporary measure with no definitive objective assigned for such upgradation. The only logical inference that can be drawn is that such recourse was adopted merely to give higher service pedestal to respondent No. 4.

Furthermore, respondent No. 4 was reflected to have been regularly promoted as Chief Engineer against the upgraded post of Superintending Engineer, which according to learned Advocate General has to be deemed as creation of another post of Chief Engineer. At this juncture, it would be in place to quote Bharat Sanchar Nigam Limited vs. R. Santhakumari Velusamy & Ors.2 wherein the Hon’ble Apex Court elaborated the distinction between promotion, upgradation involving selection & upgradation simpliciter and laid down following governing principles:-

“21.

The distinction between upgradation and promotion was spelt out by a Full Bench of the Kerala High Court in N.G. Prabhu vs. Kerala High Court , thus :

"16.

… … Promotion is, of course, appointment, to a different post carrying a higher scale of pay in the service. If, to better the conditions of service of the incumbents in posts in the same category the scale of pay of all the posts in the category is raised, the incumbents would naturally get the higher scale of pay. But in such a case it may not be proper to characterize the event as a promotion to higher posts though a benefit of a higher scale of pay is obtained by all concerned. In other words, if the upgradation relates to all the posts in a category naturally, there is no sense in calling it a promotion of all the persons in that category. That is because there is no question of appointment from one post to another. Parties continue to hold same posts but get a higher scale of pay. It may be that it is not all the posts in a particular category that are so upgraded, but only a part of it. Normally, the benefit of such upgradation would go to the seniors in the category. They would automatically get a higher scale of pay. That is because though their posts continue in the same category a higher scale of pay is fixed for those posts. It is appropriate then to say that the seniors have been nominated to the higher grade which has been so created by upgradation. This phenomenon does not differ from the case where all the posts are upgraded and, it appears to us that those who get the higher grade cannot be said to have been ‘promoted' because here again there is no question of appointment from one post to another. They continue to hold the same post, but because of seniority in the same post they are given a higher scale of pay. When a person is nominated to the higher scale of pay from time to time based on seniority, it may perhaps be loosely termed as a promotion."

22.

But even in cases where no additional posts were created, but where a process of selection was involved in the upgradation, the process has to be considered not as an upgradation simplicitor, but a process of promotion and therefore the principles of reservation would be attracted. We may refer to the Constitution Bench decision of this Court in Ram Prasad vs. D.K. Vijay where this Court held that appointment from senior scale to selection scale is a promotion though it may not be a promotion to a higher position and consequently the reserved candidates are entitled to be promoted to the selection scale by way of roster points. For this purpose, the Constitution Bench relied upon the decision of State of Rajasthan vs. Fateh Chand Soni .

… … …

29.

On a careful analysis of the principles relating to promotion and upgradation in the light of the aforesaid decisions, the following principles emerge :

(i)

Promotion is an advancement in rank or grade or both and is a step towards advancement to higher position, grade or honour and dignity. Though in the traditional sense promotion refers to advancement to a higher post, in its wider sense, promotion may include an advancement to a higher pay scale without moving to a different post. But the mere fact that both - that is advancement to a higher position and advancement to a higher pay scale - are described by the common term ‘promotion', does not mean that they are the same. The two types of promotion are distinct and have different connotations and consequences.

(ii)

Upgradation merely confers a financial benefit by raising the scale of pay of the post without there being movement from a lower position to a higher position. In an upgradation, the candidate continues to hold the same post without any change in the duties and responsibilities but merely gets a higher pay scale.

(iii)

Therefore, when there is an advancement to a higher pay scale without change of post, it may be referred to as upgradation or promotion to a higher pay scale. But there is still difference between the two. Where the advancement to a higher pay-scale without change of post is available to everyone who satisfies the eligibility conditions, without undergoing any process of selection, it will be upgradation. But if the advancement to a higher pay-scale without change of post is as a result of some process which has elements of selection, then it will be a promotion to a higher pay scale. In other words, upgradation by application of a process of selection, as contrasted from an upgradation simplicitor can be said to be a promotion in its wider sense that is advancement to a higher pay scale.

(iv)

Generally, upgradation relates to and applies to all positions in a category, who have completed a minimum period of service. Upgradation, can also be restricted to a percentage of posts in a cadre with reference to seniority (instead of being made available to all employees in the category) and it will still be an upgradation simplicitor. But if there is a process of selection or consideration of comparative merit or suitability for granting the upgradation or benefit of advancement to a higher pay scale, it will be a promotion. A mere screening to eliminate such employees whose service records may contain adverse entries or who might have suffered punishment, may not amount to a process of selection leading to promotion and the elimination may still be a part of the process of upgradation simplicitor. Where the upgradation involves a process of selection criteria similar to those applicable to promotion, then it will, in effect, be a promotion, though termed as upgradation.

(v)

Where the process is an upgradation simplicitor, there is no need to apply rules of reservation. But where the upgradation involves selection process and is therefore a promotion, rules of reservation will apply.

(vi)

Where there is a restructuring of some cadres resulting in creation of additional posts and filling of those vacancies by those who satisfy the conditions of eligibility which includes a minimum period of service, will attract the rules of reservation. On the other hand, where the restructuring of posts does not involve creation of additional posts but merely results in some of the existing posts being placed in a higher grade to provide relief against stagnation, the said process does not invite reservation.”

In the instant case, additional post of Chief Engineer was not created. The Recruitment and Promotion Rules for the post of Chief Engineer that prescribed a single cadre post of Chief Engineer were not amended by the respondents. Cadre continued to be of single post occupied by the petitioner on regular basis consequent upon her regular promotion as such. Post of Superintending Engineer held by respondent No. 4 was upgraded to that of Chief Engineer. This upgradation was a measure personal to respondent No. 4. The upgradation was not even permanent. Upgraded post of Chief Engineer was to revert back to that of Superintending Engineer in the event of its vacation by respondent No. 4. Respondent No. 4 was ‘promoted’ against this upgraded post of Chief Engineer on the recommendations of the Departmental Promotion Committee meeting held on 02.02.2023. The recommendations of the DPC placed on record at Annexure P-5 give the impression that it only considered the case of respondent No. 4 for making so called ‘promotion’ to the upgraded post of Chief Engineer. In the given facts, such recommendatory process could not even be termed as ‘selection’. Be that as it may. The upgraded post of Chief Engineer enjoyed higher pay scale than the substantive post of Superintending Engineer held by respondent No. 4. The upgraded post of Chief Engineer carried higher responsibility as also higher status than that of the substantive post of Superintending Engineer held by respondent No. 4. By innovatively promoting respondent No. 4 on the upgraded post of Chief Engineer, respondents No. 1 to 3 & 5 brought respondent No. 4 at par with petitioner who was lawfully and regularly promoted to the post of Chief Engineer against duly sanctioned single cadre post. Admittedly, no amendment in the R&P Rules for the post of Chief Engineer was carried out by the respondents. Learned Advocate General submits that upgradation automatically means creation of post. Such submission cannot be accepted. Upgradation would not automatically mean creation of post. Unless and until applicable R&P Rules are amended upgradation of post would not ipso facto mean creation of post. In the given facts and circumstances, neither upgradation of substantive post of Superintending Engineer held by respondent No. 4 to that of Chief Engineer can be said to be justifiable nor upgradation of post of Superintending Engineer to that of Chief Engineer can be termed as amounting to creation of additional post of Chief Engineer against which respondent No. 4 could be promoted on regular basis.

Learned counsel for the petitioner relied upon Somesh Thapliyal & Anr. vs. Vice Chancellor, H.N.B. Garhwal University & Anr.6, to contend that petitioner is not estopped from challenging the action of the respondents in upgrading the post of Superintending Engineer to that of Chief Engineer and promoting respondent No. 4 on such upgraded post:-

“42.

The submissions of the learned counsel for the respondents that the appellants have accepted the terms and conditions contained in the letter of appointment deserves rejection for the reason that it is not open for a person appointed in public employment to ordinary choose the terms and conditions of which he is required to serve. It goes without saying that employer is always in a dominating position and it is open to the employer to dictate the terms of employment. The employee who is at the receiving end can hardly complain of arbitrariness in the terms and conditions of employment. This Court can take judicial notice of the fact that if an employee takes initiation in questioning the terms and conditions of employment, that would cost his/her job itself.

43.

The bargaining power is vested with the employer itself and the employee is left with no option but to accept the conditions dictated by the authority. If that being the reason, it is open for the employee to challenge the conditions if it is not being in conformity with the statutory requirement under the law and he is not estopped from questioning at a stage where he finds himself aggrieved.”

Nonetheless, the fact cannot be lost sight of that by the time petitioner instituted this writ petition, respondent No. 4 had already served as Chief Engineer on the upgraded post of Superintending Engineer for about a year & eight months, therefore, no further observations are required to be made regarding respondent No. 4’s promotion to the upgraded post of Chief Engineer as petitioner’s challenge in this regard does suffer from some delay and to some extent acquiescence.

4(b) However, petitioner’s not assailing respondent No. 4’s

promotion to the upgraded post of Chief Engineer, at the relevant time will not take away her right to assail respondent No. 4’s further appointment as CEO-cum-Secretary, HIMUDA. Petitioner had instituted this petition on 04.10.2024. Petitioner was already in the court seeking her appointment against the post of CEO-cum-Secretary, HIMUDA. Her grievance in the original writ petition was that respondents No. 1 to 3 were illegally not considering her case for appointment to the post of CEO-cum-Secretary, HIMUDA. It is during pendency of this writ petition that respondent No. 4 was appointed by respondents No.1 to 3 as CEO-cum-Secretary, HIMUDA whereafter the petitioner amended the writ petition inter alia laying challenge to respondent No. 4’s appointment as CEO-cum-Secretary, HIMUDA.

Relying upon Jasbhai Motibhai Desai vs. Roshan Kumar, Haji Bashir Ahmed7, Rajasthan Public Service Commission, Ajmer vs. Yati Jain & Ors8, elaborates conspectus of ‘aggrieved person’ as against strangers by providing some contrasting tests as to ‘Whether the applicant is a person whose legal right has been infringed? Has he suffered a legal wrong or injury, in the sense, that his interest, recognised by law, has been prejudicially and directly affected by the act or omission of the authority, complained of? Is he a person who has suffered a legal grievance, a person – “against whom a decision has been pronounced which has wrongfully deprived him of something or wrongfully refused him something, or wrongfully affected his title to something?” Has he a special and substantial grievance of his own beyond some grievance or inconvenience suffered by him in common with the rest of the public? Was he entitled to object and be heard by the authority before it took the impugned action? If so, was he prejudicially affected in the exercise of that right by the act of usurpation of jurisdiction on the part of the authority? Is the statute, in the context of which the scope of the words “person aggrieved” is being considered, a social welfare measure designed to lay down ethical or professional standards of conduct for the community? Or is it a statute dealing with private rights of particular individuals?’

Petitioner is certainly a person aggrieved and has locus standi to maintain this writ petition. She has direct interest in appointment of respondent No. 4 on the post of CEO-cum-Secretary, HIMUDA. Point is answered accordingly.

4(c) Issue concerning respondent No. 4’s appointment as CEO-

cum-Secretary & appointment of petitioner as Advisor (Policy & Strategy), HIMUDA:

A proposal was moved on 10.04.2025 to redesignate “one of the Chief Engineer posts as CEO (Policy and Strategy) and the existing CEO post as CEO (Administration and Execution or Operations), or any other suitable designation, both reporting to the next level”. The proposal was moved and conveyed in form of message of the Minister incharge that HIMUDA is facing significant challenges in fulfilling its role as a Primary Urban Development Authority and despite its potential, the organization remains struck in a traditional housing board mindset, hindering its growth and effectiveness, therefore, re-structuring was required. As per the message, the re-structuring, as proposed, would not only lead to better policy formulation and strategic planning but would also enable faster decision making for operations. The next day i.e. 11.04.2025, Section Officer in the office of the concerned Minister conveyed another message in form of reviewed proposal to ‘redesign one of the post of the Chief Engineer as Advisor (Policy and Strategy) and keeping the post of CEO-cum-Secretary as it is, as per the role and responsibility defined in HIMUDA Act, both reporting to the next level’. The proposal changed in a day. Be that as it may.

Both the above proposals presumed existence of more than one regular post of Chief Engineer. This assumption was wrong. There was only one regular post of Chief Engineer which was occupied by the petitioner w.e.f. 09.12.2022. The post of Chief Engineer that was occupied by respondent No. 4 was not a regular cadre post. Respondent No. 4 was serving as Chief Engineer on an upgraded post of Superintending Engineer. There was no creation of additional post of Chief Engineer. As per applicable R&P Rules, cadre of Chief Engineer continued to consist of only one regular post. The R&P Rules had not been amended. Merely because respondent-HIMUDA while appointing/promoting respondent No. 4 as Chief Engineer on upgraded post of Superintending Engineer preferred to call it a case of ‘regular promotion’, would not ipso facto give character of regular promotion or regular post to the upgraded post of Superintending Engineer or lead to a deemed construction that a regular post of Chief Engineer got created by upgradation of post of Superintending Engineer held by respondent No. 4 to that of Chief Engineer and his consequent appointment/promotion as such by the respondent-HIMUDA by blissfully treating it as regular promotion to the post of Chief Engineer.

P.U. Joshi & Ors. vs. Accountant General, Ahmadabad & Ors.9, no doubt holds that “Questions relating to the constitution, pattern, nomenclature of posts, cadres, categories, their creation/abolition, prescription of qualifications and other conditions of service including avenues of promotions and criteria to be fulfilled for such promotions pertain to the field of Policy and within the exclusive discretion and jurisdiction of the State, subject, of course, to the limitations or restrictions envisaged in the Constitution of India and it is not for the Statutory Tribunals, at any rate, to direct the Government to have a particular method of recruitment or eligibility criteria or avenues of promotion or impose itself by substituting its views for that of the State. Similarly, it is well open and within the competency of the State to change the rules relating to a service and alter or amend and vary by addition/substraction the qualifications, eligibility criteria and other conditions of service including avenues of promotion, from time to time, as the administrative exigencies may need or necessitate. Likewise, the State by appropriate rules is entitled to amalgamate departments or bifurcate departments into more and constitute different categories of posts or cadres by undertaking further classification, bifurcation or amalgamation as well as reconstitute and restructure the pattern and cadres/categories of service, as may be required from time to time by abolishing existing cadres/posts and creating new cadres/posts. There is no right in any employee of the State to claim that rules governing conditions of his service should be forever the same as the one when he entered service for all purposes and except for ensuring or safeguarding rights or benefits already earned, acquired or accrued at a particular point of time, a Government servant has no right to challenge the authority of the State to amend, alter and bring into force new rules relating to even an existing service”. But all above actions are to be carried out in accordance with law. State does not enjoy that absolute power to bend the Rules illegally or to read something in the Rules which is not there at all or to do something contrary to Rules in purported exercise of unwarranted & unlawful executive action. A policy decision also cannot be arbitrary, irrational or contrary to Statute and the Rules framed thereunder. [Reference Yamuna Expressway Industrial Development Authority & Ors. vs. Shakuntla Education & Welfare Society & Ors.10]

When Rules are in place, which draw force from the Statute, the post can be created only under the R&P Rules by amendment of R&P Rules and not by executive instructions or otherwise. Furthermore, upgradation of post of Superintending Engineer held by respondent No. 4 to that of Chief Engineer was measure personal to him. On his vacating post, the upgraded post was to revert back to that of Superintending Engineer. This amplifies that no regular post of Chief Engineer was ever created by respondent-HIMUDA. Approach of the respondents was erroneous. There were never two posts of Chief Engineers to begin with. By wrongly assuming existence of two posts of Chief Engineers, cadre restructuring proposals were moved from top with seemingly no appropriate deliberations in the respondents-Department. The cadre restructuring proposal was for one post of Advisor and the other post of CEO, both in the same rank, same pay scale and reporting to the same level. Endeavour has been made on the part of the respondents to establish that both the posts had the same status.

Surprisingly, ever so vigilant Finance Department approved the proposal in no time. This approval was conveyed by the Principal Secretary (Housing) to the respondent-HIMUDA through office letter dated 21.04.2025. Board of Directors of respondent-HIMUDA approved the proposal by circulation. This was conveyed by HIMUDA to Principal Secretary (Housing) on 26.04.2025. Reference is not made to several noting sheets placed on record by the petitioner obtained under the Right to Information Act, 2005 pointing out flashing speed of movement of files for approval of proposal.

Notification was issued on 03.05.2025 whereby State of Himachal Pradesh ordered redesignation of one post of Chief Engineer, HIMUDA as Advisor (Policy & Strategy) on permanent basis. The redesignated post was to be governed with the same Rules and Regulations of the Authority as applicable to the post of CEO-cum-Secretary, HIMUDA. The redesignated post was to have an equivalent status to that of CEO-cum-Secretary, HIMUDA. Both these posts were to report to the same next level. By redesignating the only available cadre post of Chief Engineer as Advisor (Policy & Strategy), respondents ensured that no incumbent could be posted as Chief Engineer even though R&P Rules for the post of Chief Engineer remained intact.

Notification dated 03.05.2025 was followed by notification dated 27.05.2025 whereby petitioner, a regularly promoted Chief Engineer was appointed as Advisor (Policy & Strategy) and respondent No. 4 serving as Chief Engineer on upgraded post of Superintending Engineer as CEO-cum-Secretary, HIMUDA.

Petitioner, certainly has locus standi to challenge respondent No. 4’s appointment as CEO-cum-Secretary, HIMUDA and has sound justification to do so. Petitioner was serving as regular Chief Engineer ever since her promotion as such on 09.12.2022. As per Himachal Pradesh Housing and Urban Development Authority, Chief Executive Officer, Class-I (Gazetted), Appointment, Terms & Conditions of Service Rules, 2012 as amended vide notification dated 08.08.2019, the single cadre post of CEO can be filled up only by way of placement/ transfer/secondment from amongst the Chief Engineers (Civil), HIMUDA having one year’s regular service or regular combined with continuous adhoc service rendered, if any, in the grade, or the Chief Engineers (Civil), Himachal Pradesh Public Works Department having one year’s regular service or regular combined with continuous adhoc service rendered, if any, in the grade and having atleast one and half year residual service on the date of occurrence of vacancy, failing which by transfer/secondment from amongst the officers from any service of State Government in identical scale.

Respondent No. 4 was not eligible for appointment to the post of CEO-cum-Secretary, HIMUDA in terms of the applicable Rules. Respondent No. 4 was not holding the post of Chief Engineer on regular basis. He did not have to his credit any service as Chief Engineer on regular basis. Respondent No. 4’s appointment against the post of CEO-cum-Secretary, HIMUDA was fortuitous. He was holding substantive post of Superintending Engineer. As a measure personal to him, post of Superintending Engineer was upgraded by respondent-HIMUDA to that of Chief Engineer. On respondent No. 4’s vacating the said post it was to revert back to the post of Superintending Engineer, whereas, petitioner was serving as regularly promoted Chief Engineer. She satisfied the eligibility criteria. It is not the case of respondent-HIMUDA that petitioner was not eligible for the post of CEO-cum-Secretary, HIMUDA. In fact, respondents have themselves given appointment to the petitioner though as Advisor (Policy & Strategy), HIMUDA purportedly with the same rank as that of CEO-cum-Secretary, HIMUDA. The CEO-cum-Secretary, HIMUDA is a cadre post governed by Himachal Pradesh Housing and Urban Development Authority, Chief Executive Officer, Class-I (Gazetted), Appointment, Terms & Conditions of Service Rules, 2012, whereas the post of Advisor (Policy & Strategy) is not a cadre post. It has not been created regularly. It does not own its genesis to the R&P Rules. Executive orders/notifications will not clothe the post with some Rules when such Rules do not themselves speak about their applicability to the post in question. Furthermore, there has been no creation of post of Advisor (Policy & Strategy), only the cadre post of Chief Engineer has been redesignated as Advisor (Policy & Strategy). The post of Chief Executive Officer-cum-Secretary is the highest cadre post in the hierarchy in HIMUDA. Petitioner claimed her appointment against the post of CEO-cum-Secretary, HIMUDA and the respondent-HIMUDA thwarted that claim by appointing someone ineligible against that post. Petitioner definitely not only has locus standi to challenge such action but she has also been able to demonstrate prejudice caused to her by such illegal appointment of respondent No. 4 to the post of CEO-cum-Secretary, HIMUDA.

Union of India & Anr. vs. Hemraj Singh Chauhan & Ors.11, reiterates accepted legal position that ‘right of eligible employees to be considered for promotion is virtually a part of their fundamental right guaranteed under Article 16 of the Constitution. The guarantee of a fair consideration in matters of promotion under Article 16 virtually flows from guarantee of equality under Article 14 of the Constitution’. In the given facts of the case, Apex Court observed that ‘unreasonable inaction on the part of State stood in the way of the respondents’ chances of promotion from being fairly considered when it is due for such consideration and delay made them ineligible’ and considered the matter for resolving the controversy fairly.

Petitioner has been denied fundamental right of fair consideration for appointment against the highest cadre post in HIMUDA – The Chief Executive Officer-cum-Secretary. This right has been denied to her by the respondents by considering an ineligible person – respondent No. 4 for appointment against the said post and who was appointed as such. It is misconception on part of State to call appointment to the post of CEO-cum-Secretary, HIMUDA as a mere case of transfer. It is not so. There are Rules in place governing appointment to this post. The Rules derive their origin from the parent Statute. Rules prescribe eligibility to the said post. Rules also prescribe procedure to be followed for making appointment to the post of CEO-cum-Secretary, HIMUDA. The appointment is to be made by the Screening Committee taking recourse to the procedure and principles applicable for promotion to the selection posts. Consideration of combined seniority list of Chief Engineers is one of the factors to be kept in view. As on 27.05.2025, petitioner was a regular promoted Chief Engineer and senior to respondent No. 4. There was nothing adverse against her (Respondents have themselves purportedly given her another posting of rank & status at par to that of CEO-cum-Secretary). On 27.05.2025, respondent No.4 though was serving as Chief Engineer but only on account of upgradation of the post of Superintending Engineer, substantively held by him to that of Chief Engineer. Respondents may term it as ‘regular promotion’ yet for all intents & purposes, respondent No. 4’s serving as Chief Engineer has to be held as fortuitous and not regular promotion. A post/service will not become regular just because the order terms it so. In order to have regular promotion, there has to be in existence a regular post in terms of governing R&P Rules, which continue to hold the field. In the instant case, cadre strength of Chief Executive Officer consisted only of a single post, which was occupied by the petitioner. There was no amendment to the R&P Rules. In the given facts mere upgradation of post of Superintending Engineer to that of Chief Engineer will not ipso facto amount to creation of another post of Chief Engineer without there being corresponding amendment in the R&P Rules. Respondent No. 4 was not eligible to be considered and appointed as CEO-cum-Secretary, HIMUDA. He did not have to his credit any regular service as regularly promoted Chief Engineer.

Respondent No. 4 while serving as Chief Engineer against the upgraded post of Superintending Engineer, that too upgraded as a measure personal to him and to revert back to the cadre of Superintending Engineer, cannot be construed to have been promoted to the post of Chief Engineer on regular basis. Therefore, respondent No. 4’s service as Chief Engineer did not make him eligible to be considered for appointment to next higher post of CEO-cum-Secretary, HIMUDA. Petitioner, serving as a regularly promoted Chief Engineer against the single cadre post of Chief Engineer and also senior to respondent No. 4 has better claim than respondent No. 4 to seek appointment against the post of CEO-cum-Secretary, HIMUDA. Her rights have certainly been prejudiced by the respondents by considering and accepting the case of an ineligible person – respondent No. 4 to the post in question.

Uttar Pradesh State Industrial Development Corporation Ltd. vs. Arun Kumar Mishra & Ors.12, was a case involving facts somewhat similar to the present case. In the said case:-

There were two separate cadres one for Engineers and one for Managers in Uttar Pradesh State Industrial Development Corporation (UPSIDC). There was one post of Chief Engineer held by ‘M’. ‘V’ belonged to managerial cadre of UPSIDC. The Managing Director took away powers from ‘M’ and vested them with ‘V’. In a hurried manner, an additional post of Chief Engineer was created and ‘V’ was upgrade to the post of Chief Engineer. The High Court stayed the State Government order of creation of such new post of Chief Engineer as also of upgradation of ‘V’ to said post.

An objection was taken by learned counsel for the respondents to the locus of the petitioner to challenge the creation of the post asserting that creation of post is a policy matter and is the prerogative of the State Government; Upgradation will also include creation.

“36.

The learned counsel tor Opposite Parties 4 to 6 has vehemently opposed the writ petition and has submitted that there has been concealment on behalf of the petitioner in the writ petition. There is no locus to challenge the creation of the post. Creation of post is policy matter and it is the prerogative of the Government to create and abolish the post. Creation of post cannot be challenged in any manner and if creation of post has been made and decision has been taken out on administrative exigency, the same cannot be challenged and the petitioner's writ petition is liable to be dismissed. Mala fides have been denied by the learned counsel for Opposite Parties 4 to 6 and has also submitted that the order passed by this Court has been set aside, so any finding recorded in the said order cannot be of any held to the petitioner. Creation of post had not been challenged though it was in the knowledge of the petitioner and so, he is debarred from maintaining the present writ petition on the principles of Order 2 Rule 2 CPC as the entire cause of action ought to have been included in the earlier writ petition, which was pending. He has placed reliance upon the judgments rendered in M. Ramanatha Pillai v. State of Kerala , Katyani Dayal v. Union of India , State of Haryana v. Navneet Verma , K.D. Sharma v. SAIL and P.U.Joshi v. Accountant General ;

37.

The learned counsel for Opposite Party 8 has almost repeated the same arguments as advanced by the learned counsel for Opposite Parties 4 to 6, but in addition thereto he has submitted that upgradation can be of different dimension and the upgradation will also include creation. Upgradation cannot be limited to the extent as argued by the learned counsel for the petitioner. The necessity of the Government must be considered as a policy matter and thereafter proceed to decide the issue in question as to whether the creation of post can be faulted in any manner. The learned counsel has also submitted that the necessity of creating the post has been indidated in the letter dated 6-10-2016 and thatnecessity is sufficient to create the post. The Court cannot go behind wisdom of the Government in creating the post. Same set of cases have been relied upon by the learned counsel for Opposite Party 8 as have been relied upon by the learned counsel for Opposite Parties 4 to 6. In addition thereto, he has placed reliance jupon the judgment rendered in Aravali Golf Club v. Chander Hass .”

Hon’ble Apex Court held, petitioner had the right to challenge the upgradation/creation of one extra post, which was affecting his functioning and right to work as Chief Engineer. The argument that post was created alongwith upgradation, was not accepted:-

“49.

We, therefore, hold that the petitioner has a right to challenge the upgradation/creation of one extra post, which is affecting his functioning and right to work as Chief Engineer.

… … …

53.

The issue in regard to upgradation of post as argued by the learned Senior Counsel appearing on behalf of the State Government has to be considered in the light of the specific argument raised by the counsel for Opposite Party 6 and the State Government. Both the learned counsel have submitted that it is not a creation and it is an upgradation, so the argument of the learned counsel for Opposite Party 8 to the effect that it is a creation of a post along with upgradation cannot be accepted.

Relying upon BSNL2, Hon’ble Apex Court held that upgradation cannot be allowed in such a manner so as to jump to another cadre under the garb of upgradation; the upgradation has to take place in the same cadre, it cannot transgress the cadre to another cadre:-

“56.

Once we come to the conclusion that it is an upgradation, the principles of upgradation will apply rather the principles of creation of post. The upgradation of post is to be there in the same cadre and it cannot transgress the cadre to another cadre as has been done in the present case, i.e. from the cadre of General Manager (Development) to the cadre of Chief Engineer (Project) without amending the Rules. The upgradation cannot be allowed in such a manner so as to jump to another cadre under the garb of upgradation.

… … …

58.

Even if we accept the argument of the learned counsel for Opposite Party 6 and the State Government that it is an upgradation, then also the upgradation has to take place in the same cadre. It is to be noted that the post of General Manager (Development) is lying vacant for the last ten years and the said post has not been filled up. This itself goes to indicate that there was no necessity of developing projects by the Managing Director of the Corporation, but for the present spate of litigation a demand has been made by the Managing Director, wherein it has been indicated that there is increase of budget from 454 to 1000 crores and keeping in view the enormity of work one more post of Chief Engineer (Project) could be necessary. The demand made by the Managing Director itself is very clear and the Managing Director has made only general averment in regard to upgradation of post, but he has not indicated in his letter as to which projects were suffering on account of non-upgradation of the post. It is to be noted that there is one post of Superintending Engineer in the Corporation which is lying vacant for the Iast so many years and the said post has not been filled up up till now .”

On the projected necessity of development of the projects as the reason cited for alleged creation of post and domain of the State in creating/abolishing a post, it was observed as under:-

“59.

The counsel for the petitioner has submitted that as against one post of Superintending Engineer, two posts of Chief Engineer have been created. If the Managing Director was so concerned about the development of the projects, then he ought to have made a request to the Government for filling up the post of Superintending Engineer, but that has not been done up till now. The entire exercise of the Managing Director appears to be mala fide as he has initiated the process of upgradation of post only after the interim order being passed by this Court and statement being given by him on 6-10-2016 in regard to compliance, on which date he wrote a letter for the upgradation of post.

60.

The learned counsel for the opposite parties have submitted that the creation of post is a matter falling within the domain of the Government, but if the Government is creating or abolishing a post, then the element of mala fides should not be there and the decision should be taken as a policy matter. But we fail to understand as to in what manner the policy matter has been taken by the Government. The Finance Department is only concerned with the financial implications. Whether there was genuine necessity or whether the Managing Director's demand in regard to upgradation of post of Chief Engineer is a valid demand looking to the suffering of the development work, then the matter ought to have been referred to the Bureau of Public Enterprises which is a body available for all corporations in the State of Uttar Pradesh for such matters, which could have given a proper opinion being expert

body. The upgradation has not been demanded in normal circumstances and the same has been demanded after the litigation ensued in this Court. This itself goes to indicate that when the Apex Court set aside the order dated 27-10-2016 passed by this Curt and approved the order dated 22-11-2016 issued by the opposite parties allocating nine divisions to the petitioner. It was incumbent upon Opposite Party 6 to have disclosed before the Apex Court regarding order dated 22-11-2016 allocating the work to the petitioner in pursuance to the order of this Court was approved by the Apex Court but in a different form. The attention of the Apex Court was not drawn towards the fact as to how many revenue divisions are there in the State of U.P. and the Apex Court also specifically indicated that this order will govern the proceedings for the present, but if any proceedings arise in future, then the rigour of the order of the Apex Court does not come in the way of the petitioner. The petitioner is at liberty to challenge the aforesaid proceedings, which require to be challenged after the order of the Apex Court. It is to be noted that up till 23-11-2016, no order was brought on allocating the work to Opposite Party 8, though orders have been passed by the Board in favour of Opposite Party 8 by the Managing Director on 11-11-2016. Had it been there before the Apex Court, the mala fides of the opposite parties would have been writ large. No doubt, creation of post has been held to be prerogative of the Government in M. Ramanatha Pillai , N.C Singhal vs. Union of India , and Navneet Verma , wherein the following principles were culled out: (Navneet Verma case , SCC p. 70, para 17))

"17.

We summarise the power of the Government in abolishing a post and role of the court for interference:

(a)

the power to create or abolish a post rests with the Government;

(b)

whether a particular post is necessary is a matter depending upon the exigencies of the situation and administrative necessity;

(c)

creation and abolition of posts is a matter of government policy and every sovereign government has this power in the interest and necessity of internal administration;

(d)

creation, continuance and abolition of posts are all decided by the Government in the interest of administration and general public;

(e)

the court would be the least competent in the face of scanty material to decide whether the Giovernment acted honestly in creating a post or refusing to create a post or its decision suffers from mala fides, legal or factual;

(f)

as long as the decision to abolish the post is taken in good faith in the absence of material, interference by the court is not warranted.”

One thing important to note is that in clause (f) of the aforesaid paragraph, the Apex Court has specified that as long as the decision to abolish the post is taken in good faith in the absence of material, interference by the court is not warranted.

61.

In the present case, we find that there is enough material to indicate the mala fides of Opposite Party 6 in regard to demand for upgradation of the post and at no point of time any letter has been written either by the earlier Managing Director or by the present Managing Director that the development work of the Corporation was suffering. It is only when the petitioner has not obliged the present Managing Director for reconsidering the cancellation of allotment of plot in favour of the Indus Society, a committee was constituted by Opposite Party 6 on 4-8-2016 immediately after he took over the charge on 1-8-2016. The petitioner's specific stand was that the matter is sub judice in the Court and, therefore, it will not be proper to review the cancellation order. The judgment is

still awaited in the present pending writ petition challenging the cancellation order at Allahabad and nothing has been brought on record by the opposite parties in this regard.

62.

The creation of post was considered by the Apex Court in Union of India v. Malti Sharma , wherein the Apex Court considered the question of mala fides and observed as under: (SCC pp. 268-69, paras 16-19)

"16.

In any event, out of five posts only one post was sanctioned by the Government of India. It is neither denied nor disputed that the post of Inspector is an essential one so as to enable the Council to carry out its statutory function. The learned Single Judge has clearly indicated that the Inspector plays an important role in the Council. He inspects the colleges only for the purpose of grant of recognition and on the basis of the report of the Inspector alone, the Executive Council considers the proposal for grant of recognition to such institutions. The main purpose of the Council, therefore, cannot be performed in the absence of an Inspector or a person authorised to perform the said duties. In any event, the aforementioned office memorandum dated 3-5-1993 will have no application in the instant case as the post was not held in abeyance. It was filled but the services of the respondent were terminated which was questioned by her by filing a writ petition before the High Court. The said writ petition was admittedly pending. In fact, the judgment was reserved. Despite the fact that the writ petition was pending for a period of three years, as to why the Government was approached for the purpose of obtaining a direction that the stood abolished is not known. Even in view of the findings of fact recorded by the High Court, the authority concerned took recourse to suppressio veri and suggestio falsi. It had not been disclosed that a writ petition was pending.

17.

It is furthermore not in dispute that after the pronouncement of the judgment of the High Court the respondent has been reinstated. Whether the post had been revived before such reinstatement again has not been disclosed.

18.

It is, therefore, evident that Appellant 2 tried to overreach the Court. Its action was plainly mala fide both on facts as well as in law.

19.

In Union of India vs. V. Ramadrishnan , this Court observed:

’32. … But, even where the tenure is not specified, an order of reversion can be questioned when the same is mala fide. An action taken in a post-haste manner also indicates malice. (see Bahadursinh Lakhubhai Gohil vs. Jagdishbhai M. Kamalia , SCC para 25.)’ ”

The Hon’ble Apex Court observing that private respondent therein appeared to be a blue-eyed boy, inter alia emphasized that there can be no filling of post without amendment of the service Rules:-

“65.

There have to be some safeguards as observed in Parshotam Lal Dhingra vs. Union of India , regarding abolition of post and the Government cannot exercise its power unilaterally unless the Government is able to establish that the decision has been taken in good faith and as a public policy. The policy has to be laid down by the Government by observing certain proceedings. In the present case, it appears that no policy has been taken by the Government at the level of the Council of Ministers. The post has been upgraded only with a view to get rid of the petitioner or to deprive him from functioning as Chief Engineer. The aforesaid exercise by Opposite Party 6 and the State Government IS mala fide. The charge has been given to the Executive Engineer on officiating basis. No Superintending Engineer is existing in the Corporation. Whether the charge can be given to an Executive Engineer irrespective of the fact that the post of Superintending Engineer is existing, is also questionable. It appears that Opposite Party 8 is a blue-eyed boy of Opposite Party 6 and that is why he has been given the charge of the upgraded post. The charge given to Opposite Party 8, therefore, in the aforesaid circumstances, does not appear to be a valid exercise of power under law. The posts which are existing in a cadre, are meant for that cadre only and for every cadre work has been defined in the service rules. What experience would be there with the General Manager Development to function as a Chief Engineer (Project) and what is the qualification of the two posts and if the service rules have not been amended and no provision has been made to fill up the post from engineering cadre, then in what manner the post can be filled up without there being any amendment in the service rules, which is altogether a separate cadre than the development cadre. The posts have been defined separately and the channel of promotion has been given in the schedule, which indicates that Deputy General Manager (Project) can be promoted to the post of General Manager (Development). There is one post of Deputy Manager (Industrial Area), which is named as Deputy Manager (Project). The promotion channel has been provided in development cadre and engineering cadre separately and neither there is any government order nor has anything been placed on record though in the upgradation order, it has been said that the post will be filled up from the engineering cadre. The opposite parties are to explain the same, but we feel that the promotions in such a manner cannot be made without there being any amendment in the service rules.”

Hon’ble Apex Court held that post had been upgraded only to get rid of the petitioner or deprive him of the opportunity to function as Chief Engineer in an exercise which was not valid as per law. Promotion could not be made without an amendment to the service rules.

The jurisprudence around irregular & illegal appointment was explained as under in Pawan Kumar Tiwary & Ors. vs. Jharkhand State Electricity Board (Now Jharkhand Urja Vikas Nigam Limited) & Ors.23:-

“31.

The jurisprudence around irregular versus illegal appointments must not be blurred. An irregular appointment is one where procedure is not strictly followed but the appointee is otherwise qualified and the post is sanctioned. An illegal appointment, on the other hand, is void ab initio, such as where the appointee is ineligible or the post does not exist. When appointments are questioned on grounds of irregularity, the inquiry must not end with detecting the infirmity but must proceed further to distinguish those whose appointments are unimpeachable. Justice demands separation, not erasure.

32.

The High Court failed to apply the test of individual scrutiny, which is now a bedrock requirement in service jurisprudence. When appointments of large numbers of persons are questioned, courts and authorities must:

(i)

Separate the legally sustainable from the unsustainable

(ii)

Apply the test of eligibility and sanctioned strength

(iii)

Assess whether there was fraud or misrepresentation

(iv)

Provide an opportunity of hearing before cancellation … … …

35.

It must be underscored that the jurisprudential divide between irregular and illegal appointments is neither artificial nor academic. An appointment may be irregular if it deviates from established procedure, but it crosses into the realm of illegality only where it violates statutory mandates, is made without the existence of a sanctioned post, or is tainted by fraud. Conflating the two categories leads to manifest injustice, particularly when individuals, who have no role in the procedural defect, are visited with the severest consequence of termination.”

In the given facts of the case, respondent No. 4’s appointment to the post of Chief Executive Officer-cum-Secretary, HIMUDA has to be held as illegal, he being ineligible for the post.

5. The Result

For the foregoing discussion, the writ petition is allowed as under:-

i)

Respondent No.4’s appointment to the post of Chief Executive Officer-cum-Secretary, HIMUDA is quashed and set aside. Notification dated 27.05.2025 (Annexure P-19) is quashed and set aside. Financial benefits drawn by respondent No. 4 against this post till today, however, shall not be withdrawn from him.

ii) Respondents No. 1 - 3 are directed to make appointment to the post of Chief Executive Officer-cum-Secretary, HIMUDA strictly in consonance with the Himachal Pradesh Housing and Urban Development Authority, Chief Executive Officer, Class-I (Gazetted), Appointment, Terms & Conditions of Service Rules, 2012 by considering the cases of only those who are eligible as per these Rules. This exercise, by including name of the petitioner in the consideration zone, be undertaken within a period of two weeks from today.

Pending miscellaneous application(s), if any, also stand disposed of.

Footnotes

  1. 1.Whether reporters of Local Papers may be allowed to see the judgment? Yes.
  2. 2.(2011) 9 SCC 510
  3. 3.1973 Lab IC 1399 (Ker)
  4. 4.(1999) 7 SCC 251
  5. 5.(1996) 1 SCC 562
  6. 6.(2021) 10 SCC 116
  7. 7.(1976) 1 SCC 671
  8. 8.2026 SCC OnLine SC 80: Civil Appeal No. 273 of 2026, decided on 15.01.2026
  9. 9.(2003) 2 SCC 632
  10. 10.(2022) 20 SCC 698
  11. 11.(2010) 4 SCC 290
  12. 12.(2017) 12 SCC 657
  13. 13.(1973) 2 SCC 650
  14. 14.(1980) 3 SCC 245
  15. 15.(2008) 2 SCC 65
  16. 16.(2008) 12 SCC 481
  17. 17.(2008) 1 SCC 683
  18. 18.(1980) 3 SCC 29
  19. 19.(2006) 9 SCC 262
  20. 20.(2005) 8 SCC 394
  21. 21.(2004) 2 SCC 65
  22. 22.AIR 1958 SC 36: 1958 SCR 828
  23. 23.2025 SCC OnLine SC 1751