- (1.) The question of law that arises in these appeals directed against order of central Administrative tribunal, Lucknow bench, is whether the appellants who were selected and appointed by a competitive examination against 10% quota reserved for graduates and were promoted even to a higher scale of pay could have been reverted subsequently, on assumption that the entire process of selection and appointment was against the rules.
(2.) Facts as they emerge from the order passed by the central Administrative tribunal and the affidavits filed by the parties, more particularly the Railways, are narrated in brief. In 1968 the Railway Board introduced a scheme under para 123 of the Indian Railway Establishment Manual in which provision was made for recruitment of Traffic Apprentices to the extent of 25% in various supervisory posts in the Transportation Department of the Railways. In 1972 the scheme of 25% was bifurcated pursuant to the decision taken in the Departmental council of the Ministry of Railways under the Joint Consultative Machinery Scheme and it was decided to recruit the Traffic Apprentices by two methods - 15% through agency of the Railway Service Commission and 10% from amongst the serving non- ministerial graduates of Transportation Department, through open Competition to be filled on basis of Limited Departmental Competitive Examination. It further provided that the departmental examination was to be conducted strictly in order of merit by subjecting candidates to written test and viva voce. On 22/7/1975 the Railway Board issued another letter communicating its decision that 10% of the annual vacancies in the category of Section Controllers, Station Masters (SMs) , and Assistant Station Masters (ASMs) Grade - Rs. 470-700 and Rs. 455-700 were to be filled in through departmental competitive examination from Class III non-ministerial staff who were graduates and less than 33 years of age. It was reiterated on 18/3/1976. The copy of the letter is extracted below : "In terms of Railway Board's letter No. E (NG) 72 RRI/18 dated March 1972 circulated vide this office letter No. 220-E/172 Pt. XI (Rectt. ) dated June 1972, 10% of the annual vacancies in the category 380 of SMs/asms/ayms and Section Controllers Grade Rs. 250-350 (As) are to be filled in through a departmental competitive examination from Class-111 non-ministerial staff who are graduates and less than 33 years of age. It has been decided that the staff selected against 10% vacancies in the Transportation Department referred to above will be trained in a Special Course, the syllabus for which is under compilation in this office in consultation with the Principal Zonal Training School, Chandausi. The selected staff may be booked for training courses as and when the syllabus of the case is finalised and issued by this office. "it is thus clear that the selection of Traffic Apprentices for placing them in various supervisory posts came to be extended to SM as well at least from 1975. The selection against 10% quota to fill up the vacancies in the category of SM/asm/ti/aym and SCNL in the Grade Rs. 455-700 was initiated on 31/7/1982. "the break-up of the vacancies for which the selection was held was:it is thus too late to claim, as has been attempted by the private respondents, that the selection against 10% reserved for graduates was not held or could not have been held for the post of SM. The letter selecting the appellants on 27/9/1983 is extracted below : "As a result of the selection held for the above posts on 2/2/1983, 17/4/1983 and 29/6/1983, the following staff found suitable for the posts shown against each have been placed on the provisional panel of 10% graduate quota in accordance with their merit position in respective categories: 37701. htm the above staff should note that the retention of their names on the panel is subject to their work remaining satisfactory during the currency of the panel and qualifying Rule 29-A and B courses. Mere fact that their names have been placed on the panel is no guarantee that they will be offered the post for which selected. "what is necessary to be mentioned is that this list itself indicates the designation of candidates and the category for which they were selected. For instance No. 1 was working as ASM/lij and was selected for TI. Similarly Nos. 2 to 8 working as ASM were selected for SM and Nos. 9 and 10 who were the were selected for SCNL. The appellants according to the counter- affidavit of Railways were given training of one year as provided by letter No. 757e/102-1 (EII) dated 17/4/1976. They were appointed on 19-11-1984 on various posts for which they were selected. Even in the appointment letter the details were mentioned. For instance Usmani was shown as Assistant Station Master/mnj in existing grade and in the column of new designation and station of posting it is mentioned SM/utr - Rs. 455-700. The list also contained names of those ASMs who were in the scale of Rs. 425-640 but as a consequence of selection they were placed in the scale of Rs. 455-700 as SM. Many of the appellants so selected and appointed were further promoted as SMs/tis in the scale of Rs. 550-750 (revised scale Rs. 1600-2660. Some of them were even selected and sent to Iraq for Iraq Rail India Technical Economic Services in 1988. The averments in the counter-affidavit filed by Railways is extracted below : "It is however stated that the first part of the panel of the aforesaid selection was declared on 27-9-1983 in which one person was earmarked for the post of Traffic Inspector, seven persons were earmarked for the post of Station Master Grade Rs. 455-700 (RS) and two persons were earmarked for the post of Section Controller in Grade Rs. 470-750 (RS). The remaining part of the panel was announced on 12/8/1987 after getting the approval of competent authority for de-reserving the six posts of SC/st quota. The incumbents on the panel formed against 10% graduate quota were imparted the prerequisite training and were posted in their respective cadres after being declared successful and were allowed to reckon the seniority from the date of joining in the cadre in terms of para 302 of IREM. The applicants were promoted to Grade Rs. 1600- 2660 (RPS) by virtue of their position in the cadre of Station Master which was assigned to them by operation of para 302 of IREM. "the eligibility of the appellants, their selection and appointment as SM and further promotion as SM/traffic Inspector cannot be disputed. Nor can it be disputed that they after selection were given training and regularised in the post of SM. Even the tribunal found this and noticed that they were given seniority in accordance with paragraph 302 of the Establishment Manual. But the tribunal did not accept the case of the appellants as in consequence of restructuring of C and D posts the reservation of posts for graduates came to an end and seniority of the appellants after restructuring was contrary to Railway Establishment Code 302. Before proceeding further it is necessary to mention that the respondents who were impleaded before the tribunal, at their own instance, relied vehemently on paragraph 123 of the Railway Manual and urged that the Traffic Apprentices could be selected for certain posts but not for the post of SM. The claim proceeded on misapprehension as it did not take note of the letter issued in 1972, 1975 copies of which have been filed with the counter-affidavit of the Railways. The selection in 1982 as is clear from the affidavit of Railways was held for the posts earmarked for SM. The selection and appointment of the appellants, therefore, could not be said to be against rules for this reason. Another aspect which need be clarified is about status promotion. According to respondents the appointment of appellants could be made only in the grade of Rs. 425-640 and they could not be promoted in the grade of Rs. 455-700. But that stands belied as the selection of the appellants was held for SM in the scale of Rs. 455-700.
(3.) The reason for reversion of the appellants may now be examined as to whether it was well-founded. In August 1983 C and D posts in the Northern Railway were restructured. It came into effect on 1/8/1983. The restructuring was done with reference to cadre strength as it existed on 1/8/1983. It provided for grant of pro forma benefit from 1/8/1982 to the staff eligible for higher grade. The restructuring in the category of SM/asm was in two groups depending upon whether existing cadres of SM/asms was separate or combined. It was further provided that revised percentage would be allotted depending upon whether the existing structure was combined or separate, since different practices were in vogue in different zones. In consequence of restructuring it appears all those ASMs who were working in the grade of Rs. 330-560 and were graduates and had worked earlier with appellants but had not appeared in the competitive examination or had appeared but failed stood upgraded and were placed in scale of Rs. 425-700 for ASM.;