R.V. Raveendran, J. - (1.)The Appellant, Bharat Sanchar Nigam Ltd., is the successor of the Department of Telecommunications, Ministry of Communications, and Government of India (for short government or telecom department). The question involved in these matters is whether rules of reservation will apply to upgradation of posts.
(2.)There were four grades of employees of telecom departments known as Telegraphists or Telecom Operating Assistants in the Telecom Department. Promotions from one grade to a higher grade were on the basis of seniority/departmental examination. The telecom department introduced an One Time-Bound Promotion scheme (OTBP scheme for short) in the year 1983-84 under which regular employees who had completed 16 years of service in a grade, were placed in the next higher grade. After some years, the employees unions demanded a second time-bound promotion on completion of 26 years of service in the basic grade, as Group C and Group D cadres were only entitled to one-time bound promotion. The government decided that a second time bound promotion was not feasible. However, to provide relief from stagnation in the grade, the government decided to have a Biennial Cadre Review (BCR for short) under which a specified percentage of posts could be upgraded on the basis of functional justification.
(3.)The BCR scheme was accordingly introduced vide Circular dated 16.10.1990. It was made applicable to those cadres in Group C and Group D, for which one-time bound promotion scheme on completion of 16 years of service in the basic grade was in force. Under the said scheme, employees who were in regular service as on 1.1.1990 and had completed 26 years of satisfactory service in the basic cadres, were to be screened by a duly constituted Committee to assess their performance and determine their suitability for advancement and if they were found suitable, to be upgraded in the higher scale. The upgradation was restricted to 10% of the posts in Grade III. We extract below the relevant terms of the BCR from the Circular dated 16.10.1990:
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(iii) Biennial Cadre Reviews will be conducted in respect of the eligible cadre at the level of circles who control these cadres.

(iv) At the time of review the number of officials who have completed/would be completing 26 years of service in the basic cadres including time spend in higher scale (OTBP) will be ascertained. The persons will be screened by the duly constituted Review committee to assess the performance and suitability for advancement.

(v) In the Biennial cadre review, suitable number of posts will be created by upgradation based on functional justification.

(vi) Creation of posts by upgradation will be in the scales indicated below:

Basic scale of the cadreScale after OTBP after 16 years of basic gradeScale after BCR on completion of 26 years or more

750-940800-1150950-1400

825-1200950-14001200-1800

975-15401320-20401400-2600

975-16001400-23001600-2660

(10% of the posts in the pay scale of 1600-2660 will be in the pay scale of Rs. 2000-3200

1320-20401600-26001640-2900

(10% of the posts in the pay scale of 1640-2900 will be in the pay scale of Rs. 2000-3200)

(vi) **********

(viii) Necessary posts will be created by upgradation under the powers of CGMs in consultation with their accredited finance.

(ix) The first Biennial Cadre Review for eligible cadres/officials may be conducted immediately covering the period upto 30.6.1992 to ascertain the eligible officials who have completed/will be completing 26 years of services or more as on the crucial dates, namely, the date of the review 01.1.1991, 01.7.1991 and 01.1.1992. The number of posts needed or provide for the promotion of the eligible persons will be determined and will be sanctioned/activated in four instalments the first immediately, the second on 01.9.1991, the third on 01.7.1991 and the fourth on 01.1.1992. With these posts, it should be possible be provide for promotion of those employees who have completed 26 years of service or more on the above crucial dates, subject to their otherwise being found fit. The criterion for promotion will be seniority, subject to selection.

Order implementing the first instalment of cadre review should be issued before 30.11.1990.

In the second cadre review, which will cover the period from 1.7.1992 to 30.6.1994, which should be completed before 01.7.1992, the required number of posts needed to be released in half yearly instalments on 1.7.1992, 1.1.1993, 1.7.1993 and 1.1.1994 to cater for promotion of those who would have completed 26 years of service on the four crucial dates, will be ascertained and sanctions released in appropriate instalment so that the promotions of eligible personnel could be notified on due dates.

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