Supreme Court Allows Promotee Appeal in Seniority Dispute with Direct Recruits in Income Tax Department — Direct Recruits Not Entitled to Seniority from Vacancy Year When Recruitment Process Not Initiated in That Year.

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Case Note & Summary

The Supreme Court allowed the appeal filed by promotees (appellants) against the judgment of the Gujarat High Court which had quashed the seniority list dated 13.02.2018 and restored the list dated 07.09.2016. The dispute concerned inter-se seniority between promotees and direct recruits for the post of Income Tax Inspector in Gujarat. The promotees were promoted on 26.06.2009, while direct recruits were selected through CGLE-2010 against vacancies of 2009-10. The High Court had held that direct recruits should be interspaced with promotees of 2009-10 based on the decision in Union of India v. N.R. Parmar (2012) 13 SCC 340. However, the Supreme Court noted that N.R. Parmar was overruled by a larger bench in K. Meghachandra Singh v. Ningam Siro (2020) 5 SCC 689, which held that seniority of direct recruits is reckoned from the date of appointment, not from the vacancy year, when the recruitment process is not initiated in that year. The Court found that in this case, the advertisement for CGLE-2010 was issued in January 2010, and the examination was conducted in 2010, not in 2009. Therefore, the direct recruits could not claim seniority from 2009-10. The Court also held that the prospective application of K. Meghachandra Singh did not protect the direct recruits because the seniority list in their favor had been quashed by the High Court and the matter was pending. Consequently, the Supreme Court set aside the High Court's judgment and restored the seniority list dated 13.02.2018, which placed direct recruits with promotees of 2010-11.

Headnote

A) Service Law - Seniority - Inter-se seniority between promotees and direct recruits - Rotation of quota - Direct recruits recruited through CGLE-2010 against vacancies of 2009-10 cannot be interspaced with promotees of 2009-10 when recruitment process was not initiated in 2009 - Held that seniority of direct recruits is reckoned from date of appointment, not from vacancy year, following K. Meghachandra Singh v. Ningam Siro, (2020) 5 SCC 689, which overruled N.R. Parmar prospectively (Paras 8-12).

B) Service Law - Seniority - Prospective overruling - Decision in K. Meghachandra Singh applies prospectively and does not affect seniority fixed on basis of N.R. Parmar prior to 19.11.2019 - Held that in this case, seniority list of 13.02.2018 was quashed by High Court, and the matter was pending, so the prospective application does not protect the direct recruits (Paras 10-12).

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Issue of Consideration

Whether direct recruits recruited through CGLE-2010 against vacancies of 2009-10 are entitled to be interspaced with promotees of 2009-10 for seniority, given that the recruitment process was not initiated in 2009.

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Final Decision

Appeal allowed. Impugned judgment of Gujarat High Court set aside. Seniority list dated 13.02.2018 restored.

Law Points

  • Seniority of direct recruits is reckoned from date of appointment
  • not from vacancy year
  • when recruitment process is not initiated in that year
  • Rotation of quota principle
  • Prospective overruling of N.R. Parmar by K. Meghachandra Singh
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Case Details

2022 LawText (SC) (12) 29

Civil Appeal No. of 2022 (Arising out of SLP(C) No.16161 of 2018) with Civil Appeal No. of 2022 (Arising out of SLP(C) Diary No.12422 of 2022)

2022-01-01

Abhay S. Oka, J.

Hariharan & Ors.

Harsh Vardhan Singh Rao & Ors.

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Nature of Litigation

Civil appeal against High Court judgment in writ petition challenging seniority list of Income Tax Inspectors.

Remedy Sought

Appellants (promotees) sought setting aside of High Court judgment which quashed seniority list dated 13.02.2018 and restored list dated 07.09.2016.

Filing Reason

Dispute over inter-se seniority between promotees and direct recruits for posts of Income Tax Inspectors in Gujarat.

Previous Decisions

High Court of Gujarat quashed seniority list dated 13.02.2018 and restored list dated 07.09.2016.

Issues

Whether direct recruits recruited through CGLE-2010 against vacancies of 2009-10 are entitled to be interspaced with promotees of 2009-10 for seniority? Whether the decision in N.R. Parmar applies to the facts of this case? Whether the prospective overruling in K. Meghachandra Singh protects the direct recruits?

Submissions/Arguments

Appellants (promotees): Recruitment process not initiated in 2009; advertisement and examination in 2010; seniority from date of appointment per K. Meghachandra Singh; N.R. Parmar overruled prospectively. Respondents (direct recruits): N.R. Parmar applies; K. Meghachandra Singh protects seniority fixed prior to 19.11.2019.

Ratio Decidendi

Seniority of direct recruits is reckoned from the date of appointment, not from the vacancy year, when the recruitment process is not initiated in that year. The decision in K. Meghachandra Singh overruled N.R. Parmar prospectively, but does not protect seniority lists that were quashed and pending challenge.

Judgment Excerpts

The decision of this Court in the case of N. R. Parmar has been overruled by a larger Bench of three Hon’ble Judges of this Court in the case of K. Meghachandra Singh & Ors. v. Ningam Siro & Ors. on 19th November 2019. Seniority of direct recruits will be reckoned only from the date of appointment and not from the stage when the requisition for their appointment was sent.

Procedural History

Writ petition filed by direct recruits before Gujarat High Court challenging seniority list dated 13.02.2018. High Court quashed the list and restored list dated 07.09.2016. Promotee appellants filed SLP before Supreme Court. Supreme Court granted leave and heard the appeal.

Acts & Sections

  • Constitution of India: Article 226
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