ORIENTAL INSURANCE CO. LTD. versus T.S. SASTRY

Citation: [2003] SUPP. 5 S.C.R. 34 · Decided: 30-10-2003 · Supreme Court of India · Bench: V.N. KHARE, S.B. SINHA · Disposal: Dismissed

Judgment (excerpt)

A 
ORIENTAL INSURANCE CO. LTD. 
v. 
T.S. SASTRY 
OCTOBER 30, 2003 
B 
[V.N. KHARE, CJ. AND S.B. SINHA, JJ.] 
Service Law : 
Promotion-Person put on waiting list-Claim for promotion-Oriental 
C Insurance Compat1y-!nspector Grade /-Eligibility for promotion to 
Administrative Officer (Development)-Promotion Committee considering merit 
of the officer and putting him on waiting list-Within the validity period of the 
waiting list, new vacancies arose and the officer put forward his claim-
/nsurance Company's stand that the new vacancies were to be filled up only 
D from panel prepared by subsequent Promotion Committee and not from amongst 
candidates on panel of earlier Promotion Committee-High Court directing 
Insurance Company to give notional promotion and seniority with effect from 
the date vacancies occurred and monetary benefit from the date of filing writ 
petition-Held, for the purpose of filling up the posts by way of promotion 
what was necessary to be considered, was the total number of posts available 
E at the time of making of and during the currency of panel-The Promotion 
Policy has nothing to do with the places where the vacancies arise -In terms 
of the promotion policy the list prepared would not only include the number 
of candidates equal to the number of vacancies but also a number equal to 
20% of declared vacancies-Such a contingent list is prepared for the purpose 
F of giving promotions on a vacant post as and when required prior to formation 
of the next Promotion Committee-The very fact that there exists a provision 
for preparation of waiting list, the employees who were found eligible to be 
promoted may be promoted on creation of any new post or by any vacancy 
occurring in the manner provided for in the relevant clause of the Promotion 
Policy-Promotion Policy must be given a purposive construction-It must be 
G construed in such a fashion so that each and every provision contained therein 
must be given effect to-Insurance Company acted mala fide in depriving the 
officer his legitimate claim for promotion. 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3756-3757 of 
1998. 
II 
34 
•. 
... . 
ORIENTAL INSURANCE CO. LTD. v. T.S. SASTRY 
35 
From the Judgment and Order dated 3.4.97 of the Andhra Pradesh High A 
Court in W.A.M.P. No. 298/98 in W.A. No. 527 of 1991. 
Najmi Waziri and Irshad Ahmad for the Appellant. 
Dr. Rajeev Dhavan, R. Santhana Krishnan, G.Sateesh and D. Mahesh 
Babu for the Respondent. 
B 
The following Order of the Court was delivered : 
The respondent herein was appointed as Trainee Inspector with the 
appellant-Insurance Co. on 14.3.1977 w.e.f. 1.1.1978. He was categorised as 
Grade I Inspector. In the year 1983, 8 posts of Assistant Administrative C 
officer (Development) fell vacant. It is not disputed that the said vacancies 
were required to be filled up on the basis of merit-cum-seniority. It is also 
not disputed that the respondent herein was also eligible for being considered 
for promotion to the said post. The Committee constituted for making 
promotion after considering the merit of the candidates, prepared a panel of D 
8 names for the purpose of promotion to the post of Assistant Administrative 
Officer (Development). However, the respondent herein was put on the waiting 
list at sl. No. 9 thereof. 
In November 1984, one more post of Assistant Administrative officer 
(Development) was created and subsequently on 22.5.1985 a second post E 
was further created. It is not disputed that the panel prepared by the Promotion 
) 
Committee was valid from 5th July 1984 to 4th July 1985. Having regard to 
the availability of two more posts, the respondent herein made a representation 
to the competent authority for promoting him on one of these said posts. 
However, the respondent, having not received any reply, filed a petition 
under Article 226 of the Constitution before the High Court of Judicature of F 
Andhra Pradesh at Hyderabad for issuance of a writ in the nature of mandamus 
directing the Insurance company to promote him to the post of assistant 
Administrative officer (Development). A learned Single Judge of the High 
Court dismissed the writ petition. However on a writ appeal being filed by 
the respondent herein, the judgment and order of the Single Judge was set G 
aside and the appeal was allowed by issuing a direction to give notional 
promotion and seniority to the respondent with effect from the date when the 
Branches at Srikakulam and Kumool w

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