S. C. AGRAWAL, J. - (1.) LEAVE granted in all Special LEAVE Petitions.
(2.) WHAT is meant by "seniority-cum-merit", the criterion prescribed for promotion to the post of Area Manager / Senior Manger in the Regional Rural Banks under the Regional Rural Banks(Appointment and Promotions of Officers and Other Employees) Rules, 1988 (hereinafter referred to as 'the Rules')? This is the common question which falls for consideration in these appeals. The Regional Rural Banks have been established under the provisions of the Regional Rural Banks Act, 1976 (hereinafter referred to as 'the Act'). Section 17 of the Act empowers a Regional Rural Bank to appoint such number of officers and other officers as it may consider necessary or desirable in such manner as may be prescribed, for the efficient performance of its functions and to determinate the terms and conditions of their appointment and service. Section 24 of the Act lays down that in the discharge of its functions a Regional Rural Bank shall be guided by such directions, in regard to maters of policy involving public interest, as the Central Government may, after consultation with the National Bank for Agricultural and Rural Development (hereinafter referred as as 'the National Bank') give. Under Section 29 of the Act the Central Government has been empowered to make Rules, after consultation with the National Bank and the sponsor Bank, for carrying out the provisions of the Act. By clause (ba) of sub-section (2) of the Section 29, which was inserted by the Regional Rural Banks (Amendment) Act, 1987, the Central Government was empowered to make Rules relating to manner in which the officers and other employees of the Regional Rural Banks shall be appointed. In exercise of the powers conferred under Section 29 read with Section 17 of the Act the Central Government framed the Rules which were published vide Notification dated 28/09/1988. Rule 3 of the Rules provides that the Board of Directors of each Regional Rural Bank may, in consultation with its sponsor Bank, create such number of posts as are specified in the Second Schedule to the Rules from time to time. Rule 4 prescribes that the Board of Directors may, in consultation with the sponsor Bank, determine the number of vacancies in each post keeping in view the guidelines issued by the Central Government from time to time. Rule 5 makes provision for filling of vacancies and provides that all vacancies determined under Rule 4 by the Board of Directors shall be filled by deputation, promotion or direct recruitment in accordance with the provisions contained in the Second Schedule to the Rules. With regard the post of Area /Senior Manager the following provision is made in the Second Schedule to the Rules : JUDGEMENT_720_6_1998Html1.htm
(3.) PRIOR to the making of the Rules appointment on the post of Area / Senior Manger in Regional Rural Banks was governed by circulars issued by the Central Government and the National Bank. By circular dated 10/10/1987 addressed to the Deputy General Manager of the National bank, the Central Government indicated the criterion that was required to be followed in the matter of promotion of Branch Managers to the post of Area Mangers / Senior Managers in Regional Rural Banks in the following terms:- "... . It is, therefore, requested that the Chairman of all the RRBs may be apprised that since the posts of Area Managers / Senior Managers are promotional posts to be filled up 100% by promotion from only one source, the non-selection rules of seniority-cum-merit has to be applied. This rule envisages promotion by seniority with due consideration to minimum merit / fitness prescribed. Fitness implies that there is nothing against the 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 reasonably recent past. The promotions are meant to be made on the above mentioned consideration." (Emphasis supplied) In accordance with the said circular the National Bank issued a circular dated 1/12/1987 whereby all the Regional Rural Banks were apprised that the matter relating to the promotion of Branch Managers to the post of Area / Senior Managers had been examined by it in consultation with the Government of India and the Regional Rural Banks were advised as under :- "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 consideration to minimum merit / fitness prescribed. Fitness implies that there is nothing against the officer; no disciplinary action is pending against him and none is contemplated. The officer has neither been reprimanded nor any adverse remakes have been conveyed to him in the reasonably recent past. The promotions are meant to be made on the above mentioned consideration 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." ;