RESERVE BANK OF INDIA & ORS. versus C.N. SAHASRANAMAN & ORS.

Citation: [1986] 2 S.C.R. 881 · Decided: 30-04-1986 · Supreme Court of India · Bench: R.S. PATHAK · Disposal: Appeal(s) allowed

Cited by 2 judgment(s) · cites 6 · see the full citation network in Lexace

Judgment (excerpt)

; 
881 
RESERVE BANK OF INDIA & ORS. 
v. 
C.N. SAHASRAIWWI & ORS. 
APRIL 30, l 986 
[R.S. PATHAK AND SABYASACHI MUKHARJI, JJ.] 
1 
Centre-wise seniority and promotion through written 
departmental 
examlnor 
Reserve 
Bank 
of 
India 
(Staff) 
Regulations 1948 - Administrative Circular No. 8 and 9 dated 
13.5.1972, clause ll(a)(i) of the Scheme for Promotion - Staff 
' 
Officers Grade 11 (Now designated Grade A) covered under -
r Whether part of the scheme is violative of guarantee of 
equality before law and equal opportunity ln Public employment 
~ as enshrined in Article 14 and 16 of the Constitution -
Industrial Disputes -
Settlement by direct negotiations or 
through collective bargaining value of. 
The Reserve Bank of India had its offices at nearly 15 
centres throughout India. 
The 
service conditions of the 
employees of the Reserve Bank are governed by the Reserve Bank 
of India (Staff) Regulations, 1948 and Administrative orders 
• -~ passed from time to time and also by Industrial Disputes 
Awards 
or Settlements 
by 
negotiations or settlement by 
collective 
bargaining. 
In 
the 
Reserve 
Bank 
separrate 
-
departmentwise, Groupwise seniority and promotion for cadres 
of officers and non-officers (Award Staff) was prevalent from 
time to time. 
- t , 
-j 
In September 1962, the issue of maintenance of combined 
seniority list at each centre for the purpose of promotions 
was referred to the National industrial Tribunal presided over 
by Justice K. T. Desai. The reconmendations of the said Desai 
Award were approved by the Supreme Court in All India Reserve 
Bank &lployees' Association v. Reserve Bank of India, [ 1966] 1 
s.c.R. 25 @ 57 and Reserve Bank of 1ndia v. N.c. Palbral & 
On., [1977] 1 S.C.R. 377. In 1970, the Supervisory Staff in 
class I was upgraded to staff officers in class I pursuant to 
the Memorandum of Settlement dated 9th January, 1970 between 
A 
B 
c 
D 
E 
F 
G 
H 
A 
B 
c 
D 
E 
F 
G 
H 
882 
SUPREME COURT REPORTS 
[19861 2 .s.c.R. 
the Bank and the All India Supervisory Staff Association, 
subject. to certain conditions. The channel of promotion from+-
~
the post of clerk (Grade II) is staff officer (Grade A) and 
further from that post to the staff officer (Grade B) and so 
on upto Grade F. Prior to 6th June 1970, oral interviews of 
all the eligible candidates were held for being considered for 
promotion. Then Administrative circular No. 20 was introduced 
for the first time for departmental promotions of clerk Grade 
!/(Assistant) etc. to the post of Staff Offker Grade II 
(Sub-Accountants & Research Superintendent) in all the groups. 'I' 
On 7th May 1972, the Bank took several steps towards equalis-
ing promotional opportunities of employees by introducing the 
Optee Scheme of 1965, the Optee Scheme of 1966 and finally by 
: 
entering into a Memorandum of Settlement dated 7th May 1972 { 
with the Association accepting the principle of maintenance of 
. 
a combined seniority. On or about 7th May 1972, the Bank 
forlllllated a "Scheme for Promotion; Staff Officer Grade II"+ 
after giving full opportunity to the Association to make its 
suggestions. On 7th May 1972 the Bank and the Association 
further agreed by exchange of correspondence that the ratio of 
direct recruits to the total strength of staff officers Grade 
II shall be at 17. 5% -
82. 5%. On 13th May 1972, the Bank 
introduced the Administrative Circular No. 8 on "Scheme for 
Promotion: Staff Officers Grade II". On the same day the Bank 
introduced sillllltaneously the Administrative Circular No. 9 on~."' 
"Scheme for combined Seniority List and Switch over from 
non-clerical to clerical cadre with effect from 7th May 1972, 
Both the circulars are binding on all employees of the Bank in 
-
view of the decision of the Supreme Court in M.C. Paliwal 's 
case. On May 22, 1974, the Bank took a decision based on the "t-
recol!IDi!ndations of the cadre Review Co11111ittee under the 
Chairmanship of Mr. Justice J.L. Naim and issued Administra-
tive circular No.15 to prepare a c01m00n seniority List and to 1 ' 
provide for inter group mobility at the lowest level of (~ 
officers in Grade A with effect from 1st January 1970. On or ' 
about 7th l"anuary 1978, the Bank took further decision, based 
on the reco1111¥!ndations of two Collllllittees headed by Mr. Justice 
Naim and Mr. Justice Thareja respectively and issued Ad-
ministrative Circular No. 8 to combine the seniority of all 
officers in Grade 'B' and above with effect fr

Excerpt shown. Read the full judgment & AI analysis in Lexace.