Supreme Court Allows State Appeal in Recruitment Dispute, Holds No Indefeasible Right to Appointment After Cancellation of Selection Due to Financial Crisis. The Court set aside High Court's direction to declare results of 1999 selection and appoint respondents as Junior System Assistants, finding the State's policy decision to cancel selections was bona fide.

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Case Note & Summary

The State of Manipur and another appealed against a judgment of the High Court of Manipur which directed the declaration of results of a selection for the posts of Lineman conducted in 1999 and appointment of successful candidates as Junior System Assistants. The Department of Electricity, Government of Manipur initiated selection for Assistant Linemen in 1999, but before results could be declared, a ban on direct recruitment was imposed on 6th November 1999 due to financial stringency. The respondents filed writ petitions seeking declaration of results. The High Court initially directed declaration after lifting of ban, but later the State Government issued a policy decision on 19th March 2001 cancelling all selections and banning further recruitment. Despite this, the High Court in the impugned order directed declaration of results and appointment of 58 respondents as Junior System Assistants advertised in 2016. The Supreme Court held that there is no indefeasible right to appointment merely on the basis of selection, and the State's decision to cancel selections due to financial crisis was bona fide. The Court also held that the High Court could not direct appointment to a different post advertised later. The appeals were allowed and the High Court's judgment was set aside.

Headnote

A) Service Law - Recruitment - Indefeasible Right - No indefeasible right for appointment merely because a candidate is found fit on the basis of a selection - Unless recruitment rules indicate, State is under no legal duty to fill up all or any vacancies - However, decision not to fill vacancies must be bona fide (Para 11).

B) Service Law - Cancellation of Selection - Bona Fide Decision - Policy decision of Government of Manipur dated 19th March, 2001 cancelling selections and banning recruitment due to financial crisis was bona fide - Respondents cannot assert any right for appointment on basis of selections conducted in 1999 (Paras 11-12).

C) Service Law - Direction for Appointment to Different Post - High Court cannot direct appointment of candidates selected for one post to a different post advertised later - The direction to adjust respondents as Junior System Assistants was set aside (Para 12).

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Issue of Consideration

Whether the respondents have any indefeasible right for appointment to the posts of Assistant Lineman on the basis of selections made in 1999, and whether the High Court could have directed appointment as Junior System Assistants in posts advertised in 2016.

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Final Decision

The Supreme Court allowed the appeals, set aside the judgment of the High Court, and held that the respondents have no indefeasible right to appointment and the High Court could not direct appointment to a different post.

Law Points

  • No indefeasible right to appointment merely on basis of selection
  • State's decision not to fill vacancies must be bona fide
  • Policy decision to cancel selections due to financial crisis is bona fide
  • High Court cannot direct appointment to different post advertised later
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Case Details

2019 LawText (SC) (1) 124

Civil Appeal Nos. 842-843 of 2019 (Arising out of S.L.P. (Civil) Nos. 36612-36613 of 2016)

2019-01-17

S.A. Bobde, L. Nageswara Rao, R. Subhash Reddy

The State of Manipur & Anr.

Takhelmayum Khelendro Meitei & Ors.

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Nature of Litigation

Civil appeals against High Court order directing declaration of results of 1999 selection and appointment of respondents as Junior System Assistants.

Remedy Sought

Appellants sought setting aside of High Court's direction to declare results and appoint respondents.

Filing Reason

The State of Manipur challenged the High Court's order directing declaration of results of selection conducted in 1999 and appointment of respondents as Junior System Assistants.

Previous Decisions

High Court of Manipur allowed writ petitions directing declaration of results and appointment; earlier orders included direction to declare results after lifting of ban, and later direction to not fill 29 posts without decision on 155 posts.

Issues

Whether the respondents have any indefeasible right for appointment to the posts of Assistant Lineman on the basis of selections made in 1999? Whether the High Court could have issued a direction for appointment of the respondents as Junior System Assistants in posts advertised on 11th May, 2016?

Submissions/Arguments

Appellants argued that the ban on recruitment was due to financial crisis and the policy decision dated 19th March 2001 cancelled all selections, which was bona fide. Respondents contended that the selection process was not scrapped and they have a right to appointment.

Ratio Decidendi

There is no indefeasible right to appointment merely on the basis of selection; the State's decision not to fill vacancies must be bona fide, and a policy decision to cancel selections due to financial crisis is bona fide. The High Court cannot direct appointment to a different post advertised later.

Judgment Excerpts

In Shankarsan Dash v. Union of India, it was held that there is no indefeasible right for appointment merely because a candidate is found fit on the basis of a selection. The policy decision of the Government of Manipur dated 19th March, 2001 was bona fide and the Respondents cannot assert any right for appointment on the basis of the selections conducted in the year 1999.

Procedural History

1999: Selection process for Assistant Linemen initiated. 6th November 1999: Ban on direct recruitment imposed. 2000: Respondents filed Writ Petition No. 1040 of 2000; High Court directed declaration of results after lifting of ban. 19th March 2001: State Government policy decision cancelling selections and banning recruitment. 2002: High Court vacated stay on direction to declare results; Supreme Court directed sealed cover list. 2004: Writ Appeal disposed with observation; later recalled. 2016: Advertisement for Junior System Assistants; High Court directed appointment of respondents as Junior System Assistants. 2019: Supreme Court allowed appeals and set aside High Court judgment.

Acts & Sections

  • Manipur State Electricity (Reforms) Scheme, 2013: Clause 7
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