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PETITIONER: STATE BANK OF INDIASCHEDULED CASTE/TRIBE EMPLOYEESWELFARE AS

       Vs.

RESPONDENT: STATE BANK OF INDIA & ORS.

DATE OF JUDGMENT:       24/04/1996

BENCH: MANOHAR SUJATA V. (J) BENCH: MANOHAR SUJATA V. (J) AHMADI A.M. (CJ) KIRPAL B.N. (J)

CITATION:  1996 AIR 1838            1996 SCC  (4) 119  JT 1996 (4)   547        1996 SCALE  (3)799

ACT:

HEADNOTE:

JUDGMENT:                             WITH               CIVIL APPEAL NOS.3937-39 OF 1986 State Bank of India & Ors. V. S. Narasimha & Anr.                       J U D G M E N T Mrs. Sujata v. Manohar, J.      Writ Petition  Nos.13671-72 of  1984 are  filed by  the State Bank of India Scheduled Caste/Tribe Employees’ Welfare Association, Chandigarh  challenging the  reservation policy framed by  the State  Bank of  India reserving certain posts for employees  belonging to  Scheduled Castes  and Scheduled Tribes on  promotion at  the stage of from "Award Cadre˜’ to the Junior  Management Grade  Cadre.  The  same  policy  was challenged before  the Andhra  Pradesh High Court by some of the employees  of the  State Bank  of India working with the Hyderabad Circle  in Writ  Petitions bearing  Nos.  7237/82, 10149/84 and 1786/86 filed in the Andhra Pradesh High Court. Civil Appeal  Nos.3937-39 of  1986 are  from the decision of the Andhra Pradesh High Court in these writ petitions.      Since all  these matters raise certain common questions they have  been heard  together. Prior  to 1974 there was no provision for  reservation of  vacancies for  the  Scheduled Castes and  Scheduled  Tribes  in  the  matter  of  internal promotion in  the State  Bank of  India.  In  1974,  it  was decided to  grant a  concession to  the Scheduled  Caste and Scheduled Tribe  employees in the matter of promotions. When such promotions  were to be made on the basis of a selection procedure by  way of  written tests  and interviews,  it was decided that  a concession to the extent of 5% in qualifying marks in the written test and 10% in the interviews would be given to  the Scheduled Caste and Scheduled Tribe employees. It was  also decided  that interviews of the Scheduled Caste and Scheduled  Tribe employees  would be  taken in  separate

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sittings in  order to  avoid a comparison of their standards with the standards of general candidates.       In  January 1978,  the Government  of India decided to extend the  policy of  reservations to  Scheduled Caste  and Scheduled Tribe  employees in  the Nationalized Banks in the matter of  promotions. The  Government of India advised each of the  Nationalized Banks  to formulate  its own  policy of such reservation on the basis of a scheme already formulated by the  Reserve Bank  of India  for its own employees and on the basis  of various guidelines issued by the Government in this regard  in  the  past  from  time  to  time  with  such modifications  as   each  bank   may   consider   necessary. Accordingly, the State Bank of India issued a Circular dated 3.4.1978 setting  out its scheme of reservation in favour of its Scheduled  Caste and  Scheduled Tribe  employees in  the matter of  promotion. This  scheme was  to be  operated with effect from  1st of  March, 1978. We are concerned with this scheme insofar  as it  deals with  promotions made  from the Award Cadre to the Supervising Cadres.      Under the scheme so framed, a reservation to the extent of 15% is made in favour of Scheduled Caste employees and 7- 1/2% in favour of Scheduled Tribe employees (Paragraph 1.3). Paragraph 1.6  states that  the number of reserved vacancies which cannot  be filled  should be  carried forward from one year to  the next  year upto  a period of three years. If at the end  of the  third  year  such  vacancies  reserved  for Scheduled Caste  and Scheduled  Tribe  employees  cannot  be filled by  suitable employees  belonging to these categories such reservation  will be  treated as  having lapsed.  Under Paragraph 2.3  if an adequate number of SC/ST employees with normal length  of service  are not  available, service norms will be  relaxed in the case of SC/ST employees by two years where such  service norms  for general  candidates is  eight years’ service  or above.  Where the norm is less than eight years’ service  for general  candidates the  norm  shall  be relaxed by  one year  in the  case of SC/ST employees. Under Paragraph 3.3 a common written test will be held for all the candidates including  Scheduled Caste  and  Scheduled  Tribe candidates. The  SC/ST employees  will be granted relaxation to the  extent 5%  of the  required qualifying  marks. Under Paragraph 3.4.  interviews of SC/ST employees who qualify at the written  test will he held in separate sittings in order to avoid  comparison of  their standard with the standard of general candidates.  The SC/ST  employees  will  be  granted relaxation to  the extent  of 10% of the required qualifying marks in the interviews.      For the  purpose of  these promotions,  the  number  of candidates who are required to be considered is in the ratio of 3:1  bearing in mind the number of vacancies. In order to decide the  norm of  number of  years of  service for  being eligible for  consideration the  number of candidates in the zone of  consideration is  first decided  on  the  basis  of anticipated vacancies  multiplied by  three. In the order of seniority, the requisite number of candidates in the zone of consideration are  decided upon.  The service  put in by the last eligible  candidate is the minimum service norm. On the basis of  this service  norm, relaxation  is given  to SC/ST employees as per paragraph 2.3 of the scheme.      The reservation policy was applied by the State Bank of India from  1.3.1978. In  the year  1978, in  the  Hyderabad Circle the  posts to be filled in the promotional Cadre were 371,  out   of  which  83  posts  were  reserved  for  SC/ST candidates. The  minimum service requirement for eligibility in that  year for  general candidates  was 8 years. The norm for SC/ST candidates was therefore, 6 years. In that year no

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candidate belonging  to the  Scheduled Castes  and Scheduled Tribes was  found available.  In the  year 1979,  547  posts became available  out of  which 123  posts were reserved for Scheduled Caste  and Scheduled Tribe candidates. The minimum service fixed  for general  candidates in  that year  was  7 years and 8 months. The service norm for Scheduled Caste and Scheduled Tribe  candidates was  accordingly 6  years and  8 months. Yet  only 20 employees belonging to Scheduled Castes and Scheduled  Tribes could  be promoted.  Similar  problems continued upto  the year  1982.  The  main  reason  for  the difficulty in  implementing the circular of 3.4.1978 appears to be  non-availability of  a sufficient number of scheduled Caste of  and Scheduled  Tribe candidates  with the required years  of   service  for  promotion.  This  may  be  because reservations  for   Scheduled  Caste   and  Scheduled  Tribe candidates in  recruitment were  made in  the State  Bank of India only  in the year 1974. Whatever may be the reason, by 1982-83, the  State Bank  of India took remedial measures to correct this  non-selection of Scheduled Caste and scheduled Tribe employees in the promotional.      State Bank  of India, Central Office, issued a circular dated 28th  of July,  1983 to  its Chief General Managers in all parts  of the  country  pointing  out  that  there  were backlogs in  promotions with  regard to  Scheduled Caste and Scheduled Tribe employees. The Government of India had urged that efforts  should be  made to ensure that reservations of 15% and 7-1/2% for SC/ST employees were adhered to. However, the maximum  reservations in  any year should not exceed 50% of the  vacancies/promotions. The  circular urged  that  the backlog should  be cleared  expeditiously.  It  stated  "one possible reason  for this shortfall in promotion is the high cut-off point  (for service  norm) arrived at by the circles even  taking   into  account   the  relaxation  involved  at present." It  had therefore,  been decided  (a) to relax the service limit  in the case of SC/ST candidates to the extent that enough  candidates were  available to satisfy the ratio of 1:3. However, if it became absolutely essential to reduce the service  criterion below  5 years,  the matter should be referred to  the Central  Office with  full particulars. The circular  also   stated  that  where  considered  necessary, exclusive tests  for SC/ST candidates should be conducted to clear the backlong of promotions in this category.      In February 1984, it was decided to hold a special test exclusively  for   Scheduled  Caste   and  Scheduled   Tribe employees for promotion to the Junior Management Grade Cadre by relaxing  the service  norms. In view of the special test being proposed  for  Scheduled  Caste  and  Scheduled  Tribe employees, it  was also  announced that  in the general test which was  proposed to  be held immediately afterwards, only the candidates  belonging to  the general category would the eligible to  participate. This  led to  the boycott  of  the special test  by most  of the  Scheduled Caste and Scheduled Tribe employees.      The employees  of the Hyderabad Circle filed three writ petitions in the Andhra Pradesh High Court. These challenged the service  norms fixed  for Scheduled  Caste and Scheduled Tribe employees as too high, resulting in frustration of the reservation policy.  They also  challenged the  circular  of 28th of  July, 1983  insofar as  it provided that only 5% of the vacancies  could be made available in any given year for being  filled   by  Scheduled   Caste  and  Scheduled  Tribe employees.  The  petitions  also  prayed  for  retrospective relaxation of  service norms from 1978 onwards in order that all lapsed  vacancies could  he retrospectively  filled. The same contentions  have been  raised in  the Writ  Petitions,

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filed by  the Chandigarh  Circle  SC/ST  Employees’  Welfare Association.  The  Andhra  Pradesh  High  Court  upheld  the provision in the Circular of 28.7.1983 which provided that a maximum of  50%   of vacancies  in any  year should  be made available for  being  filled  by  Scheduled  Caste/Scheduled Tribe  employees,   to  reduce   the  backlog   of  reserved vacancies. The  High Court  further held  that  the  service norms for  Scheduled Caste  and  Scheduled  Tribe  employees should be reduced to five years so that sufficient number of candidates would  be available  in the zone of consideration for filling  up  the  reserved  vacancies.  The  High  Court correspondingly  fixed   the  service   norms  for   general candidates at six years. The State Bank of India has come in appeal before  us under  a certificate of fitness granted by the High Court.      During the  pendency of  these matters,  under  interim order of  this Court  dated 22.11.1985, it was directed that no posts  meant for  Scheduled  Caste  and  Scheduled  Tribe categories should  be allowed  to lapse.  As a  result,  all vacancies  which   are  reserved  for  Scheduled  Caste  and Scheduled Tribe  candidates are now being duly filled in. In fact, at one stage it seem to have been the grievance of the Scheduled  Caste  and  Scheduled  Tribe  employees  that  by reduction of  service norms  (as per the High Court’s order) now  far  too  many  Scheduled  Caste  and  Scheduled  Tribe employees  are   within  the   zone  of   consideration  for promotions. Directions  were sought  from the Andhra Pradesh High Court to keep the ratio of eligible Scheduled Caste and Scheduled Tribe  candidates at 3:1 depending upon the number of vacancies  and fix  service norms accordingly. This seems to indicate  that the  anomalies in  working out the reduced norms for  selection of  Scheduled Caste and Scheduled Tribe employees in  the matter  of promotion to the JMG cadre have been ironed out.      Ms. Jaising, learned counsel for the employees contends that from  1978 onwards  and until  a further  relaxation of service  norms  was  provided  for  under  the  circular  of 28.7.1983, various unfilled vacancies reserved for Scheduled Caste/Scheduled Tribe  employees lapsed  after the expiry of three years. She contends that these vacancies should not be allowed to lapse. These lapsed vacancies should be filled in retrospectively  on   the  basis  of  subsequent  relaxation granted by  the circular  of 28.7.1983. It is also contended on behalf  of  the  employees  that  the  direction  in  the circular, that  in any  given year, not more than 50% of the vacancies  should  be  available  for  being  filled  in  by Scheduled Caste/Scheduled  Tribe candidates, is violative of Article  16.   Both  these  contentions,  namely  about  the carrying forward of reserved vacancies for a period of three years at the end of which they lapse, and the provision that in any  given year  not  more  than  50%  of  the  available vacancies should  be reserved,  have been  negatived by this Court in  the case  of Akhil  Bharatiya  Soshit  Karamachari Sangh  (Railway   Represented  by   its  Assistant   General Secretary on  behalf of  the Association v. Union of India & Ors. (1981  (2) SCR  185). In  that case a similar provision for carrying  forward of  reserved vacancies  for  scheduled Castes and  Scheduled Tribes for a period of three years was upheld  by   this  Court.   This  Court   also  upheld   the instructions issued by the Railway Board in that case to the effect that  in any  given year  not more  than 50%  of  the promotional posts  should be  made available to the reserved category of  Scheduled Caste and Scheduled Tribe candidates; holding that the carry-forward rule should not result in any given year  in the  selection or  appointment  of  Scheduled

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Caste and  Scheduled  Tribe  candidates  in  excess  of  50% (p.242). In the light of this judgment the scheme formulated by the State Bank of India under the two circulars of 3rd of April, 1978 and 28th of July, 1983, thus cannot be faulted.      It is  contended on behalf of the employees that in the light of  the subsequent relaxation in service norms granted by the  circular of  28.7.1983, which  was in  excess of the relaxation originally granted under the circular of 3.4.1978 the lapsed  vacancies should  be retrospectively  filled. We find it  difficult to  accept this  contention. In the first place any  relaxation granted  in favour  of Scheduled Caste and Scheduled Tribe employees in respect of service norms is a matter  of policy. Undoubtedly, Article 16 (4) enables the Government to  make reservations  for Scheduled  Castes  and Scheduled Tribes  either at the initial stage of recruitment or at  the stage  of promotion.  This Court  in the  case of C.A.Rajendran v.  Union of  India &  Ors. (1968 (1) SCR 721) has stated  that Article  16(4) does not confer any right on the petitioner  and there  is no constitutional duty imposed on the  Government to make such a reservation. Article 16(4) is an  enabling provision  and confers a discretionary power on the State to make reservations either at the stage of the initial recruitment  or at  the stage of promotion in favour of a backward class of citizens which in its opinion, is not adequately represented in the service of the State.      The same  view has been reiterated by this Court in the case of  P  &  T  Scheduled  Caste/Tribe  Employees  Welfare Association (Regd.)  & Ors.  v. Union  of India & Ors. (1988 (4) 147).      In the  present case, such 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 of  28.7.1983 gave  a further relaxation in service norms exceeding  the  relaxation  prescribed  in  the  first 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 and  is not  a matter of right. It would, therefore,  be very  difficult  to  relate  back  the relief on  the basis  of the second circular of 28.7.1983 to the years  1978 to  1983.  The  reserved  vacancies  in  the promotional posts  during this period. If not filled, lapsed after three years as per the scheme framed under the earlier circular of  3.4.1978.  We  do  not  see  how  these  lapsed vacancies  can   now  be   revived  Our  attention  in  this connection has been drawn to a recent decision of this Court in the case of National Federation of S.B.I. & Ors. v. Union of   India &  Ors. (1995  (3) SCC 532). In that case, one of the prayers  was for  a direction  to fill up the backlog of unfilled vacancies  since 1978 by applying the carry-forward rule in  all grades  and scales with consequential benefits, This Court  said that in the absence of a rule providing for retrospective grant of concession such a relief could not be granted. This  judgement which is of a Bench of three judges of this  Court has  differed from the decision of a Bench of two judges  of this Court in Syndicate Bank Scheduled Castes and Scheduled Tribes Employees Association (Regd.),& Ors. v. Union of  India &  Ors. (1990  [Supp.] SCC  350 at 361). The Judgement in  the Syndicate  Bank’s case  (supra)  has  been relied upon  by learned counsel for the employees in support of  her  contention  that  retrospective  relief  should  be

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granted in  the present case. In view of the observations in the later  judgment of  a larger  Bench of this Court in the case of  National Federation of S.B.I. (supra), we prefer to follow the  ratio laid  down in  the case  of  the  National Federation of  S.B.I. &  Ors.  v.  Union  of  India  &  Ors. (supra). In  the present case, in view of the interim orders of this  Court referred  to earlier,  as also in view of the further relaxation in service norms which was granted by the circular  of  28.7.1983,  most  of  the  grievances  of  the employees relating  to the  filling up  posts  reserved  for SC/ST employees  have now  been met. Even earlier, the State Bank of  India, realizing  the difficulties  in implementing the norms laid down by it in the circular dated 3.4.1978 had given directions  for holding  of  special  tests  only  for Scheduled Caste and Scheduled Tribe employees to fill up the backlog after  further relaxing service norms to five years’ service or  even less  which the  sanction  of  the  Central Office so  that the  ratio of  three  candidates  for  every vacancy became  available in  respect of  reserved vacancies also. This  opportunity, however,  was not availed of by the Scheduled Caste  and Scheduled  Tribe employees  for reasons which we  need not  go into.  Subsequently, in  the  general tests also,  then have  been allowed  to compete.  They have been considered  for promotion  to the reserved vacancies on the basis  of relaxed  service  norms  as  set  out  in  the subsequent circular  of   28.7.1983. From  the  applications which have  been made  to the  Andhra Pradesh High Court for interim orders  during the  pendency of these matters before us, it is clear that adequate number of SC/ST candidates are now available  for filling  promotional vacancies  under the further relaxed  service norms  set out  in the  circular of 28.7.1983. In  view thereof,  the directions  listen by  the Andhra Pradesh  High Court to the effect that for filling up of reserved  vacancies the service norms Scheduled Caste and Scheduled Tribe  candidate should  be five years service and for general  category candidates, six years’ service appears to  have  become  unnecessary.  The  circular  of  28.7.1983 clearly provides  that service norms set out in the circular of 3.4.1978  can be  further relaxed  to the extent required upto five  years so  as to obtain three candidates for every reserved vacancy.  Even a  further relaxation is permissible with the  approval of the Central Office.  The provision for relaxation  under  circular  of  28.7.1983  thus  adequately safeguards the  interests of  Scheduled Caste  and Scheduled Tribe employees  and provides a fair opportunity to them for filling up  reserved vacancies  as they  arise. The  further direction, therefore, given by the Andhra Pradesh High Court can now be ignored.      In the  premises, the writ petitions are dismissed. The appeals from  the judgment  of the Andhra Pradesh High Court are also  dismissed  with  the  above  observation.  In  the circumstances, however, there will be no order as to costs.