LexSTATE BANK OF INDIA SCHEDULED CASTE/TRIBE EMPLOYEES WELFARE ASSOCIATION AND ANR. versus STATE BANK OF INDIA AND ORS.
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STATE BANK OF INDIA SCHEDULED CASTE!fRIBE
A
EMPLOYEES WELFARE ASSOCIATION AND ANR.
v.
STATE BANK OF INDiA AND ORS.
APRIL 24, 1.996
{A.M. AHMADI, C.J., SUJATA V. MANOHAR
AND B.N. KIRPAL, JJ.]
Service Law:
Promotion-Reservation-State Bank of India Circular dated
28.7.1983-Directed maximum reservations in any given year not to exceed
50% of vacancies/promotions--Held: not violative of A1ticle 16 of Constitu-
tion.
B
c
Promotion-Reservation-Vacancies reserved for SC/ST employees- D
Remained unfilled even after carrying forward for three years-State Bank of
India Circular dated 3.4.1978-Directed such reservations as having
lapsed--Held: it was a valid direction.
Promotion-Reservation-Reserved vacancies---Lapse of-Due to non-
availability of candidates in reserved category fulfilling prescribed service
nonns--Subsequently service nonns relaxed--Held: The lapsed vacancies can
not be revived.
The respondent-Bank bad issued a circular dated 3.4.1978 setting
E
out a promotion scheme in which reservations of 15% and 7-1/2% were F .
made in favour of Scheduled Cash~ and Scheduled Tribe Employees. The
number nf reserved vacancies which could not be filled should be carried
fonvard frotn one year to the next year upto a period of three years. If such
vacancies could not be filled at the end of the third year, the reservations
would lapse. Sernce norms were also relaxed in the case of SC/ST
employees-Petitioners. As there were backlogs in promotions with regard G
to SC/ST employees, the respondent i!>sued a circular dated 28.7.1983
relaxing the service norms in the case of SC/ST candidates. Tltis circular
further stipulated that the maximum reservations in any given year should
not exceed 50% of the vacancies/promotions. The circular also provided
that service norms for the reserved category could be relaxed to 5 years of H
719
720
SUPREME COURT REPORTS [1996) SUPP. 1 S.C.R.
A
service. The service norms could be reduced even further with the sanction
of the Central office of the respondent-Bank. The present petition was tiled
challenging the said reservation policy.
B
c
D
On behalf of the petitioners-employees it was contended that in the
light of the subse<Jnent relaxation in service norms. granted by the circular
of28.7.1983, which was in excess of the relaxation originally granted under
the circular of 3.4.1978, the lapsed vacancies should be retrospectively
filled; and that the direction that the maximum reservation in any given
year should not exceed 50% was violative of Article 16 of the Constitution.
Dismissing the petition, this Court
HELD : 1.1. The scheme formulated by the State Bank of India under
the two circulars of3rd April, 1978 and 28th of July, 1983 cannot be faulted.
[726-D]
Akhil Bhwt6'a Soshit Karamcltwi Sangh (Railway) Represented by its
Assistant General Secretwy on behalf of the Association v. Union of India &
Ors., [1981] 2 SCR 185, relied on.
1.2. In the first place any relaxation granted in favour of Scheduled
Caste and Scheduled Tribe employees in respect of service norms is a
E
matter of policy. Undoubtedly, Article 16(4) enables the Government to
make reservations for Scheduled Castes and Scheduled Tribes either at the
initial st?.ge of recruitment or at the stage of promotion. [726-F]
CA. Rajendran v. Union of India & Ors., [1968] 1 SCR 721 and P &
T Scheduled Caste/T1ibe Employees' Welfare Association (Regd.) & Ors. v.
F
Union of India & Ors., [1988] 4 SCC 147, relied on.
2. In the present case, reservation has been made by the State Bank of
India at the promotional stage in the manner which is set out in the two
circulars. These circulars have been applied at the relevant times. The circular
G of28.7.1983 gave a further relaxation in service nonns exceeding the relaxation
prescribed in the tirst circular of 3.4.1978. As a result, service norms for the
reserved category could be relaxed to 5 years of service. The circular also gave
the power to relax the service norms even further, but with the sanction of the
Central Office of the State Bank of India. This is not a relaxation which can
be applied retrospectively. It becomes available from the date when it is granted
H
and is not a matter of right. It would, therefore, be very difficult to rf'late
(
S. IU SC;ST E/l.fPLOYEES WELFARE ASSN. v. S.B.J. [MRS. SUJ ATA V. MANOHAR .T.] 721
back the relief on the basis of the second circular of28.7.1983 to tlte years 1978 A
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