High CourtsDivision Bench(2009) 01 MAD CK 0262

The Commissioner of Customs and The Union of India (UOI) vs S. Krishnamoorthy, The Registrar, Central Administrative Tribunal and T.S.A. Pillai

Madras High Court · Decided on 28 January 2009 · Citation: (2009) 4 MLJ 1

HON’BLE JUDGES
P.K. Misra, J · K. Chandru, J
RESULT
Allowed
CASE NUMBER
Writ Petition No''s. 17380 and 35745 of 2004

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Judgment

135 paragraphs · 2,970 words

P.K. Misra, J.—The facts in brief in W.P. No. 17380 of 2004 are as follows:

Respondent No. 1 applicant had joined service under the present petitioners initially as an Examiner and in course of time he was promoted as an

Appraiser and ultimately further promoted as an Assistant Commissioner with effect from 15.9.1997. He took voluntary retirement from service

with effect from 3.11.2000. Thereafter, he filed O.A. No. 482 of 2003 claiming that the Government and the Department should grant.... Senior

Time Scale...with all attendant and consequential benefits with effect from the date his juniors were given the Senior Time Scale in October 1999.

The main basis for making such a claim was on the footing that the seniority list of Appraisers was circulated only on 12.11.1997, wherein he was

shown at Sl.No.881 and the Appraisers, who were juniors to him having been shown as 885, 914, 915, 917 and 948 onwards, had been given

deemed promotion as Assistant Commissioner (Junior Time Scale) from October 1995 and Deputy Commissioner (Senior Time Scale) with effect

from October, 1999. It was therefore claimed be him that, since he was senior to those persons, he was entitled to be promoted from the date

when his juniors were promoted and the benefits which were made available to such juniors should have been extended to him. It was also

highlighted by him that in similar cases such as O.A. No. 757 of 2000 and O.A. No. 1305 of 2001, the Administrative Tribunal had issued similar

directions.

1.1 The Union of India and the Department in their reply filed before the Tribunal took a stand that the applicant (present Respondent No. 1) was

promoted to the grade of Assistant Commissioner (JTS) on 8.9.1997 and he had taken voluntary retirement with effect from 3.11.2000. It was

highlighted that for appointment as Assistant Commissioner (STS), one is required to complete four years of regular service in the grade of

Assistant Commissioner (JTS) and since the applicant and completed only 3 years, 2 months and 15 days in the grade of Assistant Commissioner

(JTS) before he had taken his voluntary retirement, the question of grant of Assistant Commissioner (STS) did not arise in his case.

1.2 The Tribunal negatived the contention of the Department by observing as follows:

4.

It is not in dispute that a number of juniors to the applicant herein have been granted the STS. But it is not stated in the reply as to whether they

had completed four years of service or not. However they have been granted the STS. The fact that the respondents had given the STS to a

number of juniors to the applicant from 1998 onwards is admitted. Therefore, it stands to reason that this benefit should also be given to the

applicant as well. In this connection we also notice that the applicant had retired, though on voluntary retirement basis, effective from 3.11.2000

only. On the other hand the applicant''s juniors have been granted the STS effective from 4.1.1998 onwards, i.e. much before the retirement date

of the applicant. Therefore the applicant in all fairness is entitled to get the same benefit, even though he has already retired from service.

1.3 Accordingly, the Tribunal directed the Department to consider the case of the applicant for the grant of Senior Time Scale with all

consequential benefits with effect from the date when his immediate junior was given the Senior Time Scale. The aforesaid direction is in question in

W.P. No. 17380 of 2004 filed by the Union of India and the Commissioner of Customs.

2.

The main contention raised in the writ petition is to the effect that as per the rules, an Assistant Commissioner in the Junior Time Scale can be

promoted as Deputy Commissioner in Senior Time Scale only on completion of four years of regular service as Assistant Commissioner in Junior

Time Scale and since the applicant (present Respondent No. 1) had not completed such four years period as he had retired voluntarily in

November, 2000, the direction given by the Tribunal is illegal.

3.

Learned Counsel appearing for Respondent No. 1, on the other hand, has submitted that in all other cases the Department had implemented the

direction given by the Tribunal by notionally ante-dating the date on which the persons to be Assistant Commissioner in Junior Time Scale, even

though those persons had not completed four years of regular service as Assistant Commissioner, Junior Time Scale, and there is no logic or

reason as to why the present Respondent No. 1 is being treated differently and the direction given by the Tribunal is being challenged in this writ

petition.

4.

In the connected writ petition, W.P. No. 35745 of 2004, which is directed against O.A. No. 159 of 2004, the facts are similar in the sense that

the applicant was relying upon the very same decision of the Tribunal in O.A.Nos.757 of 2000 & 1305 of 2001, save and except the fact that

there was no voluntary retirement by such applicant.

5.

In the reply, the Department had taken the stand that the previous order of the Tribunal in O.A. Nos. 757 of 2000 and 1305 of 2001 had been

implemented on account of pendency of the Contempt Applications.

6.

There is no dispute that the post to which promotion was claimed is a Grade V of service and governed by Rule 19 of the Indian Customs and

Central Excise Service Group ''A'' Rules, 1987. Rule 19 being relevant, is extracted hereunder:-

19.

Appointment to Grade V of Service: (1) Appointment to the vacancies in Grade V of the Service shall be made by promotion of officers in

Grade VI of the Service in the order of seniority subject to rejection of the unfit.

(2) Officers, both promotees and direct recruits, appointed to the Grade VI of the Service in accordance with the provisions of these rules shall be

considered for regular promotions to Grade V of the Service in running order of their seniority and after completing four years'' regular service in

Grade VI.

Provided that an officer appointed to the Grade VI of the Service shall not be considered for promotion to Grade V until he has successfully

completed the period of probation.

7.

A perusal of the aforesaid rule, more particularly Rule 19(2) amply makes it clear that a person would be eligible for promotion to Grade V

from Grade VI only after completing four years of regular service in Grade VI. As per Rule 19(1), appointment to Grade V shall be made by

promotion of officers in Grade VI in the order of seniority subject to rejection of the unfit. In other words, even though the promotion is on the

basis of seniority, it is not automatic inasmuch as a person who is unfit can be rejected. Moreover, as already noticed, the person must have

completed four years of regular service in Grade VI.

8.

Respondent No.1 in each of the case was promoted as Assistant Commissioner (Junior Time Scale), which was in Grade VI of service. It is not

the case either at that time or even now that he was due to be promoted as Assistant Commissioner (Senior Time Scale) in Grade V on an earlier

date and his case had been illegally overlooked by the Department. Even assuming that was so, it was for him to ventilate his grievance at that time.

He had kept quiet at that time and has thought it fit to make a claim only after he found that some other persons, who were junior to him as

Assistant Commissioners (Junior Time Scale), pursuing their remedy before the Central Administrative Tribunal. The main plank of his contention

appears to be that since other Assistant Commissioners (Junior Time Scale) who were junior to him have got the benefit of becoming of Assistant

Commissioner (Senior Time Scale) in Grade V in 1999, he should not be treated differently and the same benefit should be made available to him.

9.

It is no doubt true that the Department had not questioned some of the earlier orders of the Tribunal, whereunder the benefit of promoting a

person to the Assistant Commissioner (Senior Time Scale) had been given and the orders of the Tribunal had been implemented without

apparently raising the question as to whether such persons had completed 4 years of regular service in Grade VI before being considered for

regular promotion to Grade V. Merely because the Department had not thought it fit to challenge the orders of the Tribunal in those earlier cases, it

is not estopped from challenging similar orders in other cases.

10.

In State of Maharashtra Vs. Digambar, , the Supreme Court observed:

16.

...Sometimes, as it was stated on behalf of the State, the State Government may not choose to file appeals against certain judgments of the

High Court rendered in writ petitions when they are considered as stray cases and not worthwhile invoking the discretionary jurisdiction of this

Court under Article 136 of the Constitution, for seeking redressal therefor. At other times, it is also possible for the State, not to file appeals before

this Court in some matters on account of improper advice or negligence or improper conduct of officers concerned. It is further possible, that even

where SLPs are filed by the State against judgments of the High Court, such SLPs may not be entertained by this Court in exercise of its

discretionary jurisdiction under Article 136 of the Constitution either because they are considered as individual cases or because they are

considered as cases not involving stakes which may adversely affect the interest of the State. Therefore, the circumstance of the non-filing of the

appeals by the State in some similar matters or the rejection of some SLPs in limine by this Court in some other similar matters by itself, in our

view, cannot be held as a bar against the State in filing an SLP or SLPs in other similar matter(s) where it is considered on behalf of the State that

non-filing of such SLP or SLPs and pursuing them is likely to seriously jeopardise the interest of the State or public interest.

11.

In this connection, it would be appropriate to refer to the decision of the Supreme Court reported in Col. (Retd.) B.J. Akkara Vs. The Govt.

of India and Others, . In the said case, the question related to calculation of pensionary benefits. The persons concerned were challenging the

Defence Ministry circular clarifying certain matters related to payment of pension. The Delhi High Court struck down a similar circular dated

19.10.1999 relating to Civilian Medical Officers (corresponding to Defence Ministry circular dated 11-9-2001) and such decision of the Delhi

High Court had attained finality and the Union of India had implemented such decision by reverting back to addition of non-practising allowance to

minimum pay for purposes of stepping up the pension in regard to pre-1996 Civilian Medical Officers. The contention that the Union of India was

required to extend the similar treatment in case of defence service Medical Officers by ignoring the clarification dated 11.9.2001, was one of the

issues before the Supreme Court. In the above context, the Supreme Court by referring to the observations made in Digambar''s case (cited

above), observed as follows:

26.

The said observations apply to this case. A particular judgment of the High Court may not be challenged by the State where the financial

repercussions are negligible or where the appeal is barred by limitation. It may also not be challenged due to negligence or oversight of the dealing

officers or on account of wrong legal advice, or on account of the non-comprehension of the seriousness or magnitude of the issue involved.

However, when similar matters subsequently crop up and the magnitude of the financial implications is realised, the State is not prevented or barred

from challenging the subsequent decisions or resisting subsequent writ petitions, even though judgment in a case involving similar issue was allowed

to reach finality in the case of others. Of course, the position would be viewed differently, if petitioners plead and prove that the State had adopted

a ""pick-and-choose"" method only to exclude petitioners on account of mala fides or ulterior motives. Be that as it may. On the facts and

circumstances, neither the principle of res judicata nor the principle of estoppel is attracted. The administrative law principles of legitimate

expectation or fairness in action are also not attracted. Therefore, the fact that in some cases the validity of the circular dated 29-10-1999

(corresponding to the Defence Ministry circular dated 11-9-2001) has been upheld and that decision has attained finality will not come in the way

of the State defending or enforcing its circular dated 11-9-2001.

12.

In our considered opinion, the ratio of the decision of the Supreme Court in the aforesaid case, which in its turn had followed an earlier

decision of the Supreme Court in State of Maharashtra Vs. Digambar, , would be applicable.

13.

It is not the case of the Respondent No. 1 that the Department has adopted a ""pick and choose"" method only to exclude the present

Respondent No. 1. As a matter of fact, an explanation has been given that the earlier decisions have been implemented as contempt proceedings

had been filed and there was no time to pursue any other legal remedy as the Damocles sword of contempt proceeding was hanging.

14.

In the present case, if a direction would be given that the person was to be promoted in 1999 with effect from the date when his juniors were

promoted, it would be like issuing a Mandamus to the Union of India to act contrary to the statutory provisions which contemplate that a person

can be promoted to Grade V only after having served for four years in Grade VI. It is no doubt true that in their cases with a view to comply with

the direction given by the Tribunal, the Union of India had passed orders that such persons were deemed to have become Assistant

Commissioners (Junior Time Scale), at an earlier date. However, merely because a wrong decision of the Tribunal has been followed and given

effect to by the Union of India in some of the matters, it may not be appropriate for us to direct the Union of India to commit similar irregularity in

all other cases. No person can claim equality on the basis of an erroneous decision. As observed by the Supreme Court in Col. B.J. Akkara''s

case, neither the principle of res judicata nor the principle of estoppel would be attracted to the facts of the present case. The erroneous decision

of the Tribunal cannot be considered as a binding precedent for the High Court to follow.

15.

For the above reasons, the two separate orders passed by the Tribunal cannot be sustained.

16.

So far as W.P. No. 17380 of 2004 is concerned, the matter can be looked from another angle. As already indicated, Respondent No. 1 was

promoted as Assistant Commissioner (Junior Time Scale) in 1997. If he had any grievance and claim that he should have been promoted as

Assistant Commissioner (Senior Time Scale) with effect from an earlier date, it was a matter for him to agitate at that stage. Not only he had kept

quiet at that stage, but subsequently he had even sought for voluntary retirement which would mean that he had voluntarily given up the right to

claim any further promotion or right to claim any promotion from an earlier date.

17.

Learned Counsel for Respondent No. 1 has placed reliance upon the decision of the Supreme Court reported in HEC Voluntary Retd. Emps.

Welfare Soc. and Another Vs. Heavy Engineering Corporation Ltd. and Others, and submitted that there is difference between an employee who

voluntarily retires in terms of contract of voluntary retirement and another who voluntarily retires in accordance with the statutory rules.

18.

In the present case, we are not suggesting that merely because Respondent No. 1 took voluntary retirement in 2000, he would be deprived of

any higher salary or higher emoluments which would become due to him on account of any retrospective change in the service conditions such as

increase of salary or allowance from a date earlier to the actual retirement. In such a case like any other normal retiree, the person who had taken

voluntary retirement would be entitled to the benefit for the period anterior to the retirement, but which become due on account of any

retrospective change in law or in pay scale. In the present case, we are concerned with an individual grievance. Respondent No. 1, who took

voluntary retirement, is trying to establish that before his voluntary retirement, he should have been promoted. There is subtle distinction between

the two, inasmuch as in the case of normal retirement or voluntary retirement, the person gets service benefits which is made available to all who

were in service before the particular date; whereas, in the present case, the person is trying to claim a right to be promoted which is peculiar to him

or which is his individual right. Therefore, in our considered opinion, it can be said that if Respondent No.1 had any right of being promoted to

Grade V from an earlier date, in such event, he could have claimed promotion to Grade V at that time and there is waiver and acquiescence and

Respondent No. 1 cannot claim such right because subsequently he discovers that some of his juniors were given promotional benefit by way of

implementing the judicial orders, which are now found to be erroneous orders.

19.

For the aforesaid reasons, we are unable to sustain the orders passed by the Tribunal, which are accordingly quashed and the Writ Petitions

are allowed. No costs.