S.K. MATHUR AND ORS. versus UNION OF INDIA AND ORS.

Citation: [1998] 1 S.C.R. 115 · Decided: 13-01-1998 · Supreme Court of India · Bench: S. SAGHIR AHMAD · Disposal: Appeal(s) allowed

Judgment (excerpt)

S.K. MATHUR AND ORS. 
A 
v. 
UNION OF INDIA AND ORS. 
JANUARY 13, 1998 
[S. SAGHIR AHMAD AND D.P. WADHWA, JJ.] 
B 
Service Law : 
Bank Note Press (Class /I/ Posts) Recruitment Rules, I 97 4: 
c 
Deputation-Appointment on-Jn absence of rules-Validity of-Bank 
Note Press, at the time of its establishment, did not have its own cadre of 
Inspector (Control) nor any Recruitment Rules for thatpost-Finding it not 
safe or possible to entrust the responsibilities of Processing and final supply 
of bank notes to RBL to new recruits, the Press decided to fill up 50% posts 
of Inspector (Control) from qualified and trained persons in sister D 
organisations-The appellants, who were appointed as Assistant Inspector 
(Control) at India Security Press, applied for and appointed as· Inspector 
(Control) in the Press on deputation-Subsequently, Recruitment Rules were 
firmed for the said post and by an amendment recruitment by transfer on 
deputation was provided-Held: Under these circumstances the appellants' E 
appointment could not· have been faulted on the ground that there was no 
provision for appointment on deputation-In the absence of Statutory Rules 
under Art. 309, appointments can be regulated by administrative orders or 
executive instructions-Hence, appellants' appointment valid~Constitution 
of India, 1950, Art. 309. Seniority--Deputationists permanently absorbed 
vis-a-vis direct recruits-Jnter-se seniority-Determination of-Post of F 
Inspector (Control) in Bank Note Press-Appellants. Who were working as 
Assistant Inspector (Control) in India Security Press, sent on deputation to 
the Press as Inspector (Contro/)--'Subsequently, notionally promoted and 
confirmed as Inspector (Control) in Parent department-Later, absorbed as 
Inspector (Control) in the Press in permanent posts and their lien in parent G 
department terminated under FR 14-A(g)-Respondents were direct recruits 
initially appointed as Apprentice Assistant Inspector (Control) in the Press 
and subsequently appointed as Inspector' (Control) on prohibition on a date 
subsequent to the date of initial appointment of appellants-Thereafter, 
respondents appointed on substantive basis on a date subsequent to the date 
of absorption of the appellants-Held: Appellants were entitled to benefit of H 
115 
116 
SUPREME COURT REPORTS 
[1998] 1 S.C.R. 
A service rendered in parent department on identical posts for determination 
B 
of their seniority-More so, when there were no Recruitment Rules framed 
y-, 
under Art. 309-Hence, CAT erred in treating the respondents as seniors to 
the appellants-Moreover, as there were no service rules regulating seniority, 
Government was fi1/ly justified in treating the appellants as senior to the 
respondents on the basis of their earlier confirmation. 
Seniority-Date of-Determination-Held: In the absence of service 
rules regulating seniority, ''date for confirmation'' can be adopted to determine 
seniority. 
C 
The Bank Note Press is a departmental undertaking of the Government 
of India and is engaged in the Sovereign function of printing of Bank Notes. 
Respondent No. I is the Union of India and Respondent No. 2 is the General 
Manager, Bank Note Press. Since at the time of its establishment, the Press 
did not have its own cadres of various posts, including the post of Inspector 
(Control), nor were any Recruitment Rules made for these posts, on its 
D request the Government of India Sanctioned 20 posts in the grade of Inspector 
(Control). Since it was felt that is would not be safe or possible to entrust 
the responsibilities of processing and final supply of Bank Notes to the 
Reserve Bank of India, to raw hands, namely the new recruits, the Press, 
in consultation with the Ministry of Finance decided to fill up 50% posts of 
E Inspector (Control) from qualified and trained persons working in the sister 
organisations, namely the India Security Press as also the Security Paper 
Mill and the remaining 50% by direct recruitment. Consequently, the Press 
issued a requisition letter to the sister organisations, including the India · 
Security Press for sponsoring the names of the candidates willing to take 
up appointment as Inspector (Control), for which the eligibility criteria was 
F five years' experience as Assistant Inspector (Control). 
The appellants, who were appointed as Assistant Inspector (Control) at 
the India Security Press on various dates, applied for appointment as Inspector 
(Control) in the Press and were 

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