NATIONAL FEDERATION OF S.B.I. AND ORS. ETC. versus UNION OF INDIA AND ORS.

Citation: [1995] 2 S.C.R. 748 · Decided: 10-03-1995 · Supreme Court of India · Bench: R.M. SAHAI · Disposal: Disposed off
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Judgment (excerpt)

A 
NATIONAL FEDERATION OF S.B.I. AND ORS. ETC. 
v. 
UNION OF INDIA AND ORS. 
MARCH 10, 1995 
B 
[R.M. SAHAI, B.P. JEEVAN REDDY AND SUHAS C. SEN, JJ.] 
Service Law: Promotion-Reservation for SC/ST-Whether there could 
be reservation in favour of SC/ST in promotion by selection to Class-I posts 
when there is no specific order, rule or Memorandum-Whether Forty Point 
C Roster be applied to carry out the rule of reservation in the absence of such 
rule or reservation-Held there is no reservation in favour of SC/ST but they 
are entitled to concessions contained in the Office Memorandum. 
The Ministry of Home Affairs provided reservation at 12% and 5% 
of the vacancies for Schedule Caste/Schedule Tribe candidates in Class-III 
D & W posts filled by promotion to grades or service. This policy was revised 
providing promotion by selection from Class-II to the lower range or 
category in Class· I. The procedure prescribed was that in the case of 
eligible Schedule Caste/Schedule Tribe Candidates, the grading given to 
them shall be upgraded by one stage. This concession was confirmed to 
E only 25% of the total vacancies in particular grade or post filled in a year, 
and the ST/SC employees who are senior enough in the zone of considera-
tion as to be within the number of vacancies, and who are not considered 
unfit for promotion should also be given one grading higher than assig· 
nable to them on the basis of.their record of service and their place in the 
,F 
.G 
select list determined on the basis of this higher categorization. 
( 
The said orders were supplemented by providing certain concessions 
and/facilities to S.CJS.T. Officers who are senior enough in the zone of 
consideration for promotion. Facilities provided included special training, 
advice and guidance. The said order was to take effect from the date of 
issue of the Memorandum. These concessions wouJd be available to the 
SC/ST officers in Public Sector/Financial Institutions in promotions by 
selection to posts within the offi~ers cadre up to scale-ID. 
The Association of Schedule Caste/Schedule Tribes employees work· 
ing in several Public Sector Banks filed writ petitions before the Supreme 
H . Court foNmplementation of reservation policy by maintaining the roster 
748 
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FEDERATION OFS.B.I. v. U.0.1. 
749 
system and also for a direction to fill up the back log of unfilled vacancies A 
since 1978 by applying the carry forward rule in all grades and scales with 
consequential benefits. The transfer petition and Contempt Petition also 
relate to the same issue. 
Disposing of the petitions, this Court 
B 
HELD : 1. In promotions by selection to posts within Class-I the 
SC/ST Officers who, are senior enough in the zone of consideration for 
promotion as to be within the number of vacancies for which the select list 
has to be drawn would be included in the list provided they are not 
considered unfit for promotion. It only provides for a concession which the c 
State can always provide under Article 16 as explained in Indira Sawhaney's 
case. The concession is evidently designed and intended to help the SC/ST 
Officers obtain promotions which they may not otherwise get. 
(759-E, 762-C] 
Indira Sawhey v. Union of India, (1992) Suppl. 3 SCC 217, referred D 
to. 
2. So far as promotions within Class-I are concerned with which alone 
the Memorandam dated March 26, 1970 deals with, there are no orders of 
the Government of India applying the rule of reservation. Those earlier 
Memoranda provided for reservation in Class-II, III and IV but not for E 
promotion to Class-I and not at any rate to promotion within Class-I. Nor 
does the Memorandam dated March 26, 1970 provide for such reservation. 
The idea is self-evident. While the nile of reservation is made applicable to 
the lower categories, Viz; Classes-II, Ill and IV (to the extent specified in 
the said Memoranda), no such reservation was thought advisabie in the 
matter of promotions within Class-I. Instead of reservation, a concession F 
was provided. It is thus clear that the letters of the Ministry of Finance 
dated May, 30, 1981 and the subsequent one do not amend or modify the 
Office Memorandum dated March 26, 1970 but merely explain it. They 
make it explicit what is implict in it. (764-G-H; 765-A-B] 
3. By virtue of the said Rule providing for concession, the members G 
of the Scheduled Castes/Schedule Tribes may stand to gain in some cases, 
in the sense that the
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