RESERVE BANK OF INDIA versus N. C. PALIWAL & OTHERS

Citation: [1977] 1 S.C.R. 377 · Decided: 24-08-1976 · Supreme Court of India · Bench: HANS RAJ KHANNA · Disposal: Appeal(s) allowed

Cited by 5 judgment(s) · cites 2 · see the full citation network in Lexace

Judgment (excerpt)

I 
~· 
RESERVE BANK OF INDIA 
v. 
N. C. PALIWAL & OTHERS 
August 24, 1976 
3 77 
A 
[H. R. KHANNA, P. N. BHAGWATI AND S. MURTAZA FAZAL ALI, JJ.] 
B 
Constitution of India, 1950, Art. 14-Combined Seniority Scheme introduced 
by the Reserve Bank of India to equalise opportunities of confirmation and pro-
motion of Clerks-Some clerks <~IJected adversely by unforeseen circumstances-
lf violative of equal opportunity clause-Right of State to integrated cadres and 
lay down principles of seniority. 
At every centre of the Reserve Bank of India there were five departments, the 
General Department and four Specialised Departments. There was a separate 
seniority list for the employees in each Department at each centre and confirma-
tion and promotion of employees was only in the vacancies arising within their 
Department at each centre. There were two grades of clerks in each Department, 
namely, Grade I and Grade II. The pay scales of Grade I and Grade II clerks in 
all the departments were the same and their conditions of service were also identi-
cal. There was automatic promotion from Grade II to Grade I and when a alerk 
fr0m Grade II was promoted to officiate in Grade I, he got an additional officiat-
ing allowance of Rs. 25/- per month. There were also several categories of non-
clerical posts in the General as well as Specialised Departments, and their pay 
scale was the same as that of Grade II clerks. In view of expanding activities in 
the Specialised Departments, there were greater opportunities for confirmation and 
promotion for employees in the Specialised Departments than in the General 
Department. This gave rise to dissatisfaction amongst employees in the General 
Department and they claimed equal opportunities by having a combined seniority· 
list for all the clerks for confirmation and promotion. The Reserve Bank, sought 
to justify the separate seniority lists on the ground that the work in each depart-
ment w~ of a special nature and intertransferability was undesirable and hard to 
achieve. As a result of the recommendation of the National Tribunal, however, 
the Reserve Bank mtroduced the Optee Scheme of 1965 as a first step towards 
equalization of opportunities. Under the Scheme, the option to go over to 
the> 
Specialised Departments was confined to confirmed Grade II clerks and officiating 
Grade I clerks in the General Department. If he exercised the option, he was 
eligible to be selected. If he was selected, he would be entitled to be absorbed 
only .as Grade II clerk in one of the Specialised Departments with the result that 
if he was an officiating Grade I clerk in the General Department at the time of 
the exercise of the option, he would lose the benefit of officiation in Grade I in 
the General Department as also the monetary benefit of Rs. 25/-. Bis seniority 
in the cadre of Grade II clerks in the Specialised Department in which he was 
absorbed. would be determined on the basis of his length of service calculated from 
.the date of his recruitment if he was a graduate when he joined service, or from 
the date of his graduation if he became a graduate whilst in service. 
The petitioners in the present case and some others were, at the time of intro-
duction of the Optee Scheme, confirmed Grade JI clerks in the General Depart-
ment and some of them were officiating in the General Department as Grade I 
clerks. They exercised the option under the Optce Scheme and were absorbed 
substantively as confirmed Grade TI clerks in one or the other of the Specialised 
Departments. The clerks, other than the petitioners were. in du course. in order 
of seniority, promoted as officiating Grade I clerks in their respective Specialised 
Departments. But before the turn of the petitioners for promotion came, a new 
Scheme was introduc~d on May 13, 1972 as a result of continuous agitation by 
the employees for full equafoation of opportunities between the General Depart-
ment and the Specialised Departments. This Scheme was known as the Com-
bined Sen;fJrity Scheme. and it sunerseded the Optee Scheme. It consisted of twe 
parts. One part provided for the integration of the clerical staff of the General 
Department with the clerical staff of the Specialised Departments, and the other, 
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378 
SUPREME COURT REPORTS 
[1977] 1 S.C.R. 
for the integration of the non-clerical staff with the clerical staff in all the Depart-
ments. The Combined Seniority Scheme gave an o

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