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PETITIONER: ANIL KUMAR SONI

       Vs.

RESPONDENT: THE MANAGING DIRECTOR, PUNJAB FINANCIALCORPORATION AND ANR.

DATE OF JUDGMENT25/07/1991

BENCH: KASLIWAL, N.M. (J) BENCH: KASLIWAL, N.M. (J) PUNCHHI, M.M.

CITATION:  1991 AIR 1840            1991 SCR  (3) 184  1991 SCC  (3) 624        JT 1991 (3)   315  1991 SCALE  (2)219

ACT:     Punjab  Financial Corporation (Staff) Regulations,  1961 --Regulation  19(2)--Termination of service of  an  employee from  the post of Assistant Manager on the basis of  Board’s Resolution,  who  was  confirmed in the  post  of  Assistant Technical         Officer--Whether         justified-Board’s Resolution--Object of--Appointment in new cadre post-Meaning of.

HEADNOTE:     The  appellant  was  appointed  as  Assistant  Technical Officer  in  the Punjab Financial Corporation and  was  con- firmed   as  Assistant  Technical  Officer   (Textiles)   on 14.7.1976.  Thereafter he applied for the post of  Assistant Manager, which was to be filled up by direct recruitment and he was selected and appointed as Assistant Manager on proba- tion on 26.5.1980. The period of probation of the  appellant was  extended from time to time and ultimately the  Respond- ent-Corporation vide its order dated 11th May 1984 terminat- ed the service of the appellant.     The  appellant being aggrieved, filed a  writ  petition, which  was  dismissed by the High Court against  which  this Appeal was made.     The appellant contended that even if the order of termi- nation from the post of Assistant Manager during the  period of probation was held to be proper, still he was entitled to continue on the post of Assistant Technical Officer on which he was admittedly confirmed.     The Corporation contended that as soon as the  appellant was selected for the post of Assistant Manager, the  earlier post  of Assistant Technical Officer held by  the  appellant stood abolished; that there was no post of Assistant Techni- cal Officer on which the appellant could have been appointed after his termination of service from the post of  Assistant Manager;  and that mere selection on the new cadre  post  of Assistant Manager was sufficient for abolishing the post  of Assistant Technical Officer. Partly allowing the appeal of the employee, this Court, 185     HELD.  1.01. The object of the resolution of  the  Board was  that if an employee of the Corporation was inducted  in

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the  new cadre post then the post already held by him  shall be  abolished from the date of such appointment in  the  new cadre. The entire purpose of such resolution was that if  an employee  of the Corporation was appointed in the new  cadre post, to be filled up by direct recruitment, then the Corpo- ration  did  not want to continue the earlier post  held  by such  employee  of the Corporation. Thus in  the  scheme  of things  such appointment of the employee of the  Corporation to the new cadre posts ought to have been confirmed appoint- ment. [187E-G]     1.02.  It  would be against all canons of  justice  that confirmed  employee  of the Corporation  though  allowed  to compete  for  a new cadre post by  direct  recruitment,  but having  not been confirmed on such post, is rat  allowed  to claim  his  right  even on the lower post on  which  he  had permanent  lien to continue. It would be a travesty of  jus- tice  to throw the person on the streets after a  period  of service of nine years in the Corporation. [187G-H]     1.03.  The post of Assistant Technical Officer  held  by the appellant as a confirmed employee, could have only  been abolished in case he was confirmed on the post of  Assistant Manager. [187H]     1.04. The appointment in the new cadre post as mentioned in  the resolution of the Board means confirmed  appointment on such post. [188A-B]     1.05.  The order of termination of the appellant so  far as the post of Assistant Manager is concerned is upheld, the respondent--Corporation  is directed to allow the  appellant to  continue  on  the post of  Assistant  Technical  Officer (Textiles)  on  which  he  had  already  been  confirmed  on 14.7.1976  with  all the back wages and other  benefits.  In case  no post of Assistant Technical Officer  (Textiles)  is existing in the Corporation, the appellant can be  appointed on any other equivalent post carrying the same scale of  pay which  the  appellant was drawing on the post  of  Assistant Technical Officer. [188B-D]

JUDGMENT: CIVIL APPELLATE JURISIDICTION: Civil Appeal No. 2835 1986.     From the Judgment and Order dated 9.5.1985 of the Punjab and  Haryana High Court in Civil Writ petition No.  5328  of 1985. M.K. Ramamurthi. and S.S. Rana for the Appellant. 186     Dr.  K.S.  Sidhu, Ms. Maldeep Sidhu,  J.C.  Bubber,  Sr. Personal Manager, PFC with him for the Respondents. The Judgment of the Court was delivered by     KASLIWAL,  J. This appeal by special leave  is  directed against  the  decision of the Punjab &  Haryana  High  Court dated 9.5. 1985. The appellant Anil Kumar Soni was appointed as  Assistant  Technical  Officer in  the  Punjab  Financial Corporation (hereinafter referred to as ’the  Corporation’). The  appellant was confirmed as Assistant Technical  Officer (Textiles) on 14.7. 1976. The appellant then applied for the post  Of  Assistant  Manager which was to be  filled  up  by direct recruitment. The appellant was selected and appointed as Assistant Manager on probation on 26.5. 1980. The  period of probation of the appellant was extended from time to time and  ultimately  the Corporation with its order  dated  11th May,  1984 terminated the service of the appellant in  exer- cise  of  the powers conferred by Regulation  19(2)  of  the Punjab Financial Corporation (Staff) Regulations, 1961.  The

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appellant aggrieved against the order the termination  filed a writ petition which came to be dismissed by the High CoUrt by the impugned order dated 9.5. 1985.     The  only  contention raised by  Shri  M.K.  Ramamurthy, learned Senior counsel which appealed to us, is that even if the impugned order of termination from the post of Assistant Manager during the period of probation was held to be  prop- er,-still the appellant was entitled to continue on the post of  Assistant Technical Officer on which he  was  admittedly confirmed  as back as 14.7. 1976. In order to consider  this aspect  of  the matter it would be proper  to  consider  the respective contentions raised by the learned counsel for the appellant as well as the Corporation. The High Court in this regard took the view that so far as the post i.e.  Assistant Technical  Officer  which the appellant held before  he  was selected  for  the post of Assistant Manager  is  concerned, stood  abolished from the date he was appointed to the  post of Assistant Manager in view of the resolution of the  Board (Annexure R-1/3). The relevant part of the aforesaid Resolu- tion reads as under: "The various levels of posts, subject to such  modifications as may be decided by the Board, may be advertised.  Officers of the Corporation who fulfil the requisite  qualifica’tions and  experience, may apply for these posts and  may  compete with the candidates from the open market. Within the overall 187 strength proposed earlier. Officers may be selected to various levels of hierarchy depending upon their professional competence and experience............... The. posts now held by the employees of the Corporation, who happen  to  be inducted into the new cadre posts,  shall  be abolished  from  the date of their appointment  to  the  new cadres..........     Taking  support  from the above resolution it  has  been contended  on behalf of the Corporation that as soon as  the appellant  was selected for the post of  Assistant  Manager, the earlier post of Assistant Technical Officer held by  the appellant  stood abolished. It has thus been contended  that there  was no post of Assistant Technical Officer  on  which the  appellant could have been appointed after his  termina- tion  of service from the post of Assistant Manager  by  the impugned order dated 9.5. 1985.     We see no force in the above contention. It is an admit- ted position that the appellant was a permanent employee  of the Corporation’ having been confirmed as Assistant  Techni- cal  Officer on 14.7. 1976. The Corporation  advertised  the posts  of  Assistant Manager to be filled up by  direct  re- cruitment  and  the employees of the Corporation  were  also allowed to compete with the candidates from the market.  The appellant  was no doubt selected and appointed as  Assistant Manager  on  probation on 26.5.1980 but  his  services  were terminated on 11.5. 1984 during the period of probation  and before  the confirmation of the appellant on the said  post. The  object of the resolution of the Board  extracted  above was that if an employee of the Corporation was inducted  the new  cadre post then the post already held by him  shall  be abolished  from  the  date of such appointment  in  the  new cadre. The entire purpose of such resolution was that if  an employee  of the Corporation was appointed in the new  cadre post to be filled up by direct’ recruitment then the  Corpo- ration  did not want to continue the earlier post held  by’- such  employee  of the Corporation. Thus in  the  scheme  of things  such appointment of the employee of the  Corporation to the new cadre posts ought to have been confirmed appoint- ment.  It would be against all canons of justice  that  con-

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firmed employee of the Corporation though allowed to compete for  a new cadre post by direct recruitment but  having  not been  confirmed  on such post is not allowed  to  claim  his right even on the lower post on which he had permanent  lien to continue. It would be a travesty of justice to throw  the person  on  the streets after a period of  service  of  nine years  in the Corporation. The post of  Assistant  Technical Officer held by the appellant as a confirmed employee. could have only been abolished in case he was 188 confirmed  on the post of Assistant Manager. The  contention of the learned counsel for the Corporation that mere  selec- tion on the new cadre post of Assistant’ Manager was  suffi- cient for abolishing the post of Assistant Technical Officer cannot be accepted. The appointment in the new cadre post as mentioned  in  the resolution of the Board  means  confirmed appointment on such post.    In the result we allow the appeal in part, set aside  the order  of  the  High Court dated 9.5. 1985  and  uphold  the impugned order of termination of the appellant so far as the post  of  Assistant Manager, is concerned,  but  direct  the respondent Corporation to allow the appellant to continue on the post of Assistant Technical Officer (Textiles) on  which he   had already been confirmed on 14.7. 1976 with  all  the wages and other benefits. It is, however made clear that  in case  no post of Assistant Technical Officer  (Textiles)  is existing in the Corporation, the appellant can be  appointed on any other equivalent post carrying the same scale of  pay which  the  appellant was drawing on the post  of  Assistant Technical  Officer. The Corporation shall  pass  appropriate orders to comply our direction within one month from  today. The parties to bear their own costs. V.P.R.                 Appeal partly allowed.                                 1 ?189