LexV.T. KHANZODE & ORS. versus RESERVE BANK OF INDIA & ANR.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
V.T. KHANZODE & ORS.
V.
RESERVE BANK OF INDIA & ANR.
March 5, 1982
[Y.V. CHANDRACHUD, C.J., S. MURTAZA FAZAL ALI AND
A.O. Ko!HAL, JJ.J
411
Seniority-Draft combined seniority list fixed by the Administrative Circular
No. 8 dated January 7, 1978, Office Order No. 679 dated April 27, 1978 by the
Reserve Bank, whether violative of Articles 14 and 16 of th• Constitution of
India.
Reserve Bank of India Act, (Act II) of 1974-Section 58(1) & (2), scope of-
Whether the power to·makt regulations emanate .from section 58(1)-Competency
of tlu! Central Board of Director~ to make regulations and to issue administrative
Circulars in respect of service conditions of staff.
Retrospectivity of the operation of tlu s1niority scheme, ralidity of.
Under the Reserve Bank of India (Staff) Regulations, 1948 framed under
section S8 of the Reserve Bank of India Act 1934, the terms and conditions of
service of the staff (including officers) in the Reserve B""* were revised and
regulated from time to time.
Ever since the date of the Staff Regulations ot 1948 and even prior thereto,
there were
0 groups" constituted for the different departments of the Reserve
Bank, and officers were required to exercise irrevocable options for service in any
particular Group, Those who had opted for a service in a particular Group were
to be normally eligible for promotion io that Group only. The grouping was
revi1ed with effect· from April 1951 when employees were asked to exercise their
option with regard to the Group of their choice. In 1951, the various depart-
ments of the Bank were rc4 classified into three Groups, Group I, Group II and
Group III. This system of grouping continued until 1955, in which year the
Ban'k found it necessary to 'reorganise the Agricultural Credit Department.
Accordingly, the staff attachect to the various departments were regrouped into
Groups I, ii, Ill, and IV, with effect from April I, 1957. In each of these
Groups, there are six grades of officers based on pay scales, namely, Grades A,
B, C, D, E and F, the lowest being Grade A and the highest being Grade F.
Each Group had its own seniority list, that is to say, there were four separate
seniority lists, ooe for each group. The latest of such lists prior to the draft ·
com~inep seniority list of 1978 is dated July I, 1976.
.
Earlier to the said list dated luly I, 1976, the Reserve Bank"had constituted
a Cadre Review Olmmi ttee in 1970 followed by another Committee.
On the
A
B
c
D
E
(i
G
H
A
B
c
E
F
G
H
SUPREME COURT REPORTS
{i 982j j s.C.lt.
basis of the report submitted by the Cadre Review Committee in October 1972,
the Bank issued an Administrative Circular No. 15 dated May 22, 1974 specifying
the decisions taken by it in the light of the recommendations made by the
Committee. One such decision which the Bank took was to prepare a common
seniority list for and to provide for inter-group mobility at the lowest Jevel of
officers in each group, namely, Grade A officers, including those who were pron10-
ted to Grade Bon or after January l·, 1970. With regard to. higher grades (in-
cluding officers in Grade B promoted prior to January I, 1970), the Bank decided
to retain the "groupwise seniority as at present". The inter-group mobility in
Grades C and D was to be
introduc~d only to a limited extent, namely, «on a
. swap basis". It was first to be introduced in Grade C and thereafter to be ex-
tended "in due course'' to the officers in Grade D. The two higher Grades,
namely, Grades E and F were left unt01:JChed and no intention was expressed in
the above circular to introduce either combined seniority or any scheme for
inter-mobility in these grades. In accordance with the decisions expressed in the
Administrative Circular dated May 22, 1974 tho Bank published· separate senio-
rity lists of officers in Grade Band above for the years 1974, 1975 and 1976.
By the Administrative Circular No. ·3 dated January 7, 1978, the Bank.
stated that it had decided to combine the seniority of all officers on the basis of
their total length of service (including officiating service) in Group I (Section A),
Group II and Group III. The seniority of all officers in each of the three Groups
was to be combined with effect from May 22, 1974 on the basis of their total
length of service, ·including officiating service, in the grade in which they were
then posted on a reQ,ular basis. The Circular introduced combined seniority
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