- (1.) cauvery grameena bank and its area managers/senior managers have presented these writ appeals feeling aggrieved by the common order dated 10th april, 1991 made in writ petition nos. 5445/1988, 11488/1987, 3581 and 3582/1988, 4191 and 4192/1988 and 19995/1986 by a learned single judge of this court (n.y. hanumanthappa, j.) Quashing their appointments as area managers/senior managers niadeby promotional order dated 31-7-1986 of cauvery grameena bank.
(2.) as common points arise in these appeals for our consideration and decision, we shall dispose them of by a common judgment.
(3.) undisputed antecedant facts, which are necessary for a proper consideration and disposal of these appeals, are these: in the year 1977, cauvery grameena bank with its head office at mysore, came to be established under Section 3(1) of regional rural banks Act, 1976. Persons, who were appointed as officers in that bank from the year 1977 and whose appointments as officers are duly confirmed according to their seniority, are those found in the 'list of officers in order of their seniority' prepared and maintained by that bank. Cauvery grameena bank being one of the regional rural banks working according to the guidelines jssued to it by the national bank for agriculture and rural development (for short 'the nabard'), received from the latter circular No. Idd.rrb..c.62/316(gen.)-1984-85, dated 31-2-1984 containing guidelines as to the creation of higher posts of area managers/senior managers in the cauvery grameena bank and of oiling up of those posts from amongst its officers. Guidelines contained in that circular for appointment of its officers in the higher posts of area manager/senior managers were these: "1. Area managers/senior managers: a) source of recruitment: 100% by promotion from amongst officers working in a bank. Promotions will be on the basis of seniority-cum- merit. If suitable officers are not available internally, these posts could be filled by taking temporarily officers of the sponsor banks and other banks/organisations on deputation. B) qualifications and eligibility: i) a graduate of recognised university, preference to agricultural/commerce/economics graduates. Ii) eight years service as an officer in the bank. Iii) the above condition will be relaxable by a maximum period of two years with the specific prior approval of national bank for agricultural and rural development if suitable candidates with requisite experience are not available. C) reservation of posts: as may be laid down by government of India from time to time. The above posts of area managers/senior managers will carry a special pay of Rs. 75/- p.m. over the grade pay of the officer concerned." subsequently,acircularno.idd.rrb.c-109/316(gen.)/1985/86,dated7-4-1986 has been received by the cauvery grameena bank being one of the regional rural banks, to all of which copies of such circular were issued by the nabard. That circular related to 'rrbs - promotion to the posts of senior clerk-cum-cashiers, field supervisors and officers - clarification'. The Annexure to that circular under the head 'procedure and agency for promotion' contains the following clarification: "for effecting promotions, the board may constitute one or more staff selection committees depending on the scale of the posts for which the candidates are to be interviewed, for the purpose of selecting the employees of the bank for promotion to higher posts. The committee should have atleast three official directors of the board excluding chairman, of which one should be from the national bank or reserve bank and one each from sponsor banks and state governments respectively. Also one member from sc/st community should be represented in such committees as indicated in our circular letter dated 9-12-1985. The selection of the eligible candidates should be based on the performance of respective candidates in the bank. The recommendation of the committees should thereafter have the approval of the board before effecting promotions." thereafter, the cauvery grameena bank, in its circular dated 17-7-1986 issued by the personnel department to all its branches, having slated that it has created posts of area managers/senior managers and upgraded the posts of managers in the head office to that of senior managers, has reiterated the guidelines as to the appointment to the posts of area managers/senior managers as contained in the nabard's circular dated 31-12-1984 except for an inclusion made by it under the head 'procedure' 'performance appraisal and interview'. Later, the chairman of the cauvery grameena bank, by his letter dated 23-7-1986, has constituted a directors committee consisting of five officers including himself for interviewing the eligible candidates out of the officers of the cauvery grameena bank for filling tip the vacancies of newly created higher posts of area managers/senior managers. That committee has called for interview the first 32 of the officers of the cauvery grameena bank in the aforesaid list of officers arranged according to their seniority and interviewed 31 of them for their performance appraisal. They have awarded marks following the proforma appraisal form. Among the officers so interviewed, those who had obtained the marks of 85 as against the total marks of 150, are listed as officers to be promoted to the cadre of area managers/senior managers and they have been subsequently promoted to the said posts by circular No. 54, dated 31-7-1986 of the cauvery grameena bank's personnel department signed by its chairman. Sometime thereafter, the chairman of the cauvery grameena bank has received circularno.idd.rrb.c-78/3.16(gen.)-1987-88, dated 1-12-1987, which was issued to all regional rural banks by the nabard, which read: "promotion of managers to the post of area/senior managers in regional rural banks. Please refer to our circular letter No. Idd.rrb. C-62/316 (gen.)/1984-85, dated 31-12-1984, regarding appointments to the posts of area managers and senior managers. The matter has been examined by us in consultation with government of India and have to advise that the posts of area managers/senior managers are promotional posts to be filled up by 100% promotion from only one source and non-selection Rule of seniority-cum-merit has to be applied. This Rule envisages promotion by seniority with due considerations to minimum merit/fitness prescribed. Fitness implies that there is nothing against an officer; no disciplinary action is pending against him and none is contemplated. The officer has neither been reprimanded nor any adverse remarks have been conveyed to him in the reasonable recent post. The promotions are said to be made on the above mentioned considerations only. In other words, if a manager satisfies the qualifications and eligibility criteria and there is nothing adverse against him, his due promotion should not be denied to him. Similar procedure may be followed in case of promotions from jr. Clerks to sr. Clerks and internal promotions to field supervisors and manager post. You may, therefore, review the promotions made so far to ensure that there are no supersessions unless warranted in the light of the above guidelines." circular No. Idd.rrb. C-107 (gen.)/19s7-88, dated 10-2-1988 issued by the nabard in the matter of promotion in the regional rural banks with reference to the earlier circular dated 1-12-1987 issued by it, which was received by the chairman of the cauvery grameena bank, reads thus: "this has a reference to our circular letter No. Idd.rrb. C-78/316 (gen.)/1987-88, dated 1st december, 1987 on the captioned subject. A number of rrbs. Have sought clarifications on this circular. In this connection we have to state that many instances had been brought to the notice of the government of india/national bank wherein eligible officers/employees had been overlooked for promotion. On reviewing these cases, it was observed that officers/employees, satisfying the eligibility criteria and with consistently good performance, had been unwarrantedly overlooked for promotion although they had no adverse entries in their confidential reports. It was with the basic objective of obviating any injustice to the staff working in rrbs, that the aforesaid circular was issued. It may, however, be clarified that the guidelines contained in the above circular cannot be interpreted to mean the promotions would be automatic without any screening whatsoever. The management of the rrbs. Are not precluded from making objective assessment of the officer's/ employee's potential from considering their suitability for promotion. 2. "a system of objective assessment of the performance of the staff should be evolved and the potential for shouldering higher responsibilities should be specifically be recorded in every performance appraisal so as to ensure that only efficient staff are eligible for promotions". It should, however, be borne in mind that whenever deficiencies are observed in the working or conduct of any member of the staff, the same should be promptly pointed out to them in writing. It will be appropriate that if any adverse report is recorded on any member of the staff, the same is communicated to him with a view to affording him/her an opportunity to clarify/explain the position/improve his/her performance. Any adverse action, based on such reports such as denial of promotions to such officials, should be taken only after considering any representation that they may choose to submit to the appropriate authorities within the stipulated time," even before the aforesaid circular dated 1-12-1987 as clarified by another circular dated 10-2-1988, adverted to earlier, of the nabard received by the cauvery grameena bank could be given effect to with respect to promotions to the posts of area managers/senior managers made under its circular No. 54, dated 31-7-1986, the validity of that circular had come to be challenged before this court in writ petitions aforementioned filed by some of the officers of the cauvery grameena bank, some of whom were above those officers in the seniority list of officers of that bank, but not promoted. The learned single judge, who heard those petitions, by a common order dated 10-4-1991 made in them, invalidated the aforesaid circular No. 54, dated 31-7-1986, by which some of the officers of the cauvery grameena bank had been promoted as area managers/senior managers on his view that such promotions had not been made according to the guidelines issued in that regard by the nabard, and directed the cauvery grameena bank to consider the cases of the petitioners in the writ petitions and also that of the respondents, whose promotions had been invalidated, on the basis of the seniority-cum-merit Rule, which was the guiding Rule issued by the nabard. It is the said common order which is now under appeals, as stated at the outset.;