COAL INDIA LTD. & ANR. versus NAVIN KUMAR SINGH

Citation: [2018] 11 S.C.R. 470 · Decided: 25-09-2018 · Supreme Court of India · Bench: DIPAK MISRA · Disposal: Dismissed

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2018] 11 S.C.R.
COAL INDIA LTD. & ANR.
v.
NAVIN KUMAR SINGH
(Civil Appeal Nos.6491-6492 of 2014)
SEPTEMBER 25, 2018
[DIPAK MISRA, CJI,  A. M. KHANWILKAR  AND
DR. D.Y. CHANDRACHUD, JJ.]
Service Law– Promotion – Inter-company transfer– Past
service rendered in the parent unit, if to be considered– Respondent,
joined Dankuni Coal Complex (DCC), of the appellant company in
E-2 Grade on 4th August, 1990 – On respondent’s request he was
transferred from DCC to Central Mine Planning and Design Institute
Limited (CMPDIL), a subsidiary of the appellant company, in E-2
Grade– Respondent joined CMPDIL on 15th May, 1991 – Policy of
appellant-Company that an employee would lose his past seniority
in his existing Grade in the event of an inter-company transfer, if
the request for transfer was made by the employee himself– Though,
respondent acquired requisite eligibility (3 years) for promotion to
E-3 Grade in September, 1993, however, he was promoted to the
E-3 Grade only vide order dated 12th December, 1994– Appellant
excluded respondent’s work experience at DCC (i.e. 4th August, 1990
to  14th May, 1991) while considering his eligibility for promotion –
Writ petition filed by respondent for grant of notional seniority in
the E-3 Grade w.e.f 12th November, 1993– Allowed – Held:
Respondent is not claiming seniority over any person already
working in CMPDIL as there was no senior person working in E-2
Grade when the respondent joined– Limited claim of the respondent
is that the service rendered by him in the parent unit (DCC) from
4th August, 1990 in E-2 Grade be reckoned for the purpose of
determining his eligibility for promotion to the post of E-3 Grade
whilst working in CMPDIL– High Court justly accepted the claim
of the respondent that for determination of his eligibility for
promotion, his length of service in DCC must be reckoned– That
cannot be confused with the issue of seniority in CMPDIL as they
are two different factors– Appellant’s policy deals with the latter–
There is no express stipulation in the said policy  to even remotely
[2018] 11 S.C.R. 470
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suggest that on seeking inter-company transfer on personal
grounds, the executive concerned would lose even his past service
rendered in the parent unit (DCC) for all purposes– Service rendered
by him in DCC ought to be taken into account for all other purposes,
other than for determination of his seniority in E-2 Grade in the
new company, CMPDIL– Indeed, his seniority in CMPDIL in E-2
Grade will have to be reckoned from the date of his assumption of
charge on 15th May, 1991– However, that can have no bearing
while determining his eligibility criterion of length of service in E-2
Grade for promotion to E-3 Grade– No fault in the direction given
by the High Court to assign notional date of promotion to the
respondent in E-3 Grade with effect from 12th November, 1993.
Dismissing the appeals, the Court
HELD: 1.1  The office order pursuant to which the
respondent joined Central Mine Planning and Design Institute
Limited (CMPDIL) makes it amply clear that the seniority of the
respondent will be reckoned from the date he joins CMPDIL. It
is also seen that when the respondent joined CMPDIL on
15th May, 1991, there was no senior person working in E-2 Grade.
On a fair reading of Clause 11 of the policy, there is nothing to
indicate that the transferee would lose his past service rendered
in the parent company for all purposes. The policy of forfeiture of
seniority in the parent company, however, is limited to the
executives who seek inter-company transfer on personal grounds.
That is to ensure that no prejudice is caused to the executives
already working in the transferred company. For that reason, the
seniority of the executives seeking inter-company transfer on
personal request is fixed as if he had entered the concerned Grade
on the date of assumption of charge in the transferred company.
It has been made explicitly clear that the executive seeking inter-
company transfer on personal grounds will lose his past seniority
in the Grade. No more and no less. Indubitably, the respondent
is not claiming seniority over any person already working in the
new company (CMPDIL) before the date on which he assumed
charge thereat on 15th May, 1991. The limited claim of the
respondent however, is that the service rendered by him in the
parent unit (DCC) from 4th August, 1990 in E-2 Grade be reckoned
for the purpose of determinin

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