Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 8006-8007 of 2003, Judgment Date: Jul 23, 2015

                         IN THE SUPREME COURT OF INDIA
                          CIVIL APPELLATE JURISDICTION


                    CIVIL APPEAL  NO(S).  8006-8007/2003



PRABHU DAYAL KHANDELWAL                                         APPELLANT(S)


                                  VERSUS


CHAIRMAN, U.P.S.C. & ORS.                                      RESPONDENT(S)


                O R D E R

J.S. Khehar, J.

1.     The  claim  of  the  appellant-Prabhu  Dayal  Khandelwal  was  to  be
considered for promotion from the post of  Commissioner  of  Income  Tax  to
that of Chief Commissioner of Income Tax.  55  vacancies  in  the  cadre  of
Chief Commissioner of Income Tax arose in the year 2000-2001, and a  further
46 vacancies arose during the year 2001-2002.
2.    It is not a matter of dispute, that the  benchmark  for  promotion  to
the post of Chief Commissioner of Income  Tax,  under  the  prevailing  DoPT
guidelines was “very good”.  In other words only such of  the  Commissioners
of Income Tax, whose service record was “very  good”  would  be  treated  as
satisfying the “merit” component in the  process  of  selection.   When  the
claim  of  the  appellant  arose  for   consideration,   the   five   Annual
Confidential Reports which were liable to be taken into consideration  were,
for the years 1995-1996 to 1999-2000.  Of the aforesaid  Reports,  in  three
the appellant was graded as “good” (for the years 1995-1996,  1996-1997  and
1998-1999), and in the remaining two he was  graded as “very good” (for  the
years 1997-1998 and 1999-2000). On account of the fact, that  the  appellant
did not satisfy the benchmark stipulated in the DoPT guidelines, he was  not
considered fit for promotion, to the post of Chief  Commissioner  of  Income
Tax.
3.     The  appellant  raised  a  challenge  against  the  action   of   the
respondents/authorities, in superseding his claim for promotion to the  post
of Chief Commissioner of Income Tax, by filing O.A. No.290 of  2001,  before
the Central Administrative Tribunal, Calcutta  Bench,  on  the  ground  that
uncommunicated  Annual  Confidential  Reports  could  not  be   taken   into
consideration, to defeat his claim for promotion.   The  pointed  contention
of  the  respondent,  in  this  behalf  was,  that  all  the  three   Annual
Confidential Reports in which he had been graded as “good” (detailed  above)
had not been communicated to him. The Administrative Tribunal  accepted  the
prayer  made  by  the  appellant  and  accordingly  passed   the   following
directions:-

      “19.  In view of the above, we find merit in  both  the  applications.
We, therefore, allow both the applications.  Since the appellants  have  not
been found unfit for promotion  in  the  over  all  assessment  of  the  DPC
meeting held on February 5 and 6, 2001, we direct all the  respondents  viz.
Secretary, Deptt. of Revenue, Chairman CBDT, Member CBDT and Chairman,  UPSC
to reconsider the cases of both the applicants by  holding  the  meeting  of
Review DPC on urgent basis on the basis of our  above  observations  keeping
in view the assessment made by the DPC in the meeting  held  on  February  5
and 6, 2001 and to recommend their case within a period of three weeks  from
the date of receipt of this order to the  competent  authority  for  further
necessary action including grant of all the consequential  benefits  to  the
applicants from the date their immediate juniors  have  been  granted  as  a
result of recommendations of the DPC meeting held on February 5 and 6,  2001
within a further period of three weeks and communicate the  final  order  to
the applicants within a week thereafter.”

4.    The  aforesaid  order  passed  by  the  Administrative  Tribunal,  was
assailed by the Union Public Service  Commission,  as  also,  the  Union  of
India,  before  the  High  Court  of  Calcutta,  by  filing  separate   writ
petitions.  The High Court accepted the prayer  made  by  the  Union  Public
Service Commission as  well  as  the  Union  of  India  while  disposing  of
W.P.C.T. No.772 of 2002 and W.P.C.T. No.803 of 2002, vide  its  order  dated
20.12.2002.  Dissatisfied with the above order, the  appellant-Prabhu  Dayal
Khandelwal has approached this Court, through the instant civil appeals.
5.    In so far as the issue  of  non-consideration  of  the  claim  of  the
appellant is concerned,  we  are  satisfied  that  the  proposition  of  law
relevant for the controversy in hand,  was declared upon by  this  Court  in
Abhijit Ghosh Dastidar v. Union of India and  others,  (2009)  16  SCC  146,
wherein a three-Judge Division Bench of this Court, held as under:-

“7. It is not in dispute that CAT, Patna Bench passed an order  recommending
the authority not to rely on the order of caution dated 22.09.1997  and  the
order of adverse remarks dated 09.06.1998. In view of the  said  order,  one
obstacle relating to his promotion goes.
8.    Coming to the second aspect, that though the benchmark "very good"  is
required for being considered for promotion, admittedly the entry of  "good"
was not communicated to the appellant. The entry of “good” should have  been
communicated to him as he was having "very good" in the  previous  year.  In
those circumstances, in our opinion, non-communication  of  entries  in  the
Annual Confidential Report of a public  servant  whether  he  is  in  civil,
judicial, police or any other service (other than the armed forces), it  has
civil consequences because  it  may  affect  his  chances  of  promotion  or
getting other benefits. Hence, such non-communication  would  be  arbitrary,
and as such violative of Article 14 of the Constitution. The same  view  has
been reiterated in the above referred decision [Dev Dutt v. Union  of  India
and Others, (2008) 8 SCC 725] relied on by  the  appellant.  Therefore,  the
entries "good" if at all granted to the appellant, the same should not  have
been taken into consideration for being  considered  for  promotion  to  the
higher grade. The respondent has no case that the appellant  had  ever  been
informed of the nature of the grading given to him.”

6.    The aforesaid position of law has again been affirmed  by  this  Court
in Sukhdev Singh v. Union of India and Others, (2013)  9  SCC  566,  wherein
another three-Judge Division Bench of this Court, has concluded as under:-

“8. In our opinion, the view taken in Dev Dutt that every entry in ACR of  a
public servant must be communicated to him/her within  a  reasonable  period
is legally sound and helps in achieving  threefold  objectives.  First,  the
communication of every entry in the ACR to a public  servant  helps  him/her
to work harder and achieve more that helps him in  improving  his  work  and
give better results. Second and equally important, on being  made  aware  of
the entry in the ACR, the public servant  may  feel  dissatisfied  with  the
same. Communication of the entry enables him/her to make representation  for
upgradation of the remarks entered  in  the  ACR.  Third,  communication  of
every entry  in  the  ACR  brings  transparency  in  recording  the  remarks
relating to a public servant and the system becomes more conforming  to  the
principles of natural justice. We, accordingly, hold  that  every  entry  in
ACR – poor, fair, average, good or very  good  –  must  be  communicated  to
him/her within a reasonable period.”

7.    In the above view of the matter, we are satisfied  that  the  impugned
order passed by the High Court, deserves to be set aside, inasmuch  as,  the
claim of the appellant could not be ignored by  taking  into  consideration,
uncommunicated Annual Confidential Reports for the  years  1995-1996,  1996-
1997 and 1998-1999, wherein the appellant was assessed as  “good”.   In  the
absence of the  aforesaid  entries,  it  is  apparent,  that  the  remaining
entries of the appellant being “very good”,  he  would  be  entitled  to  be
considered fit for the promotion, to  the  post  of  Chief  Commissioner  of
Income Tax, on the basis of the then prevailing  DoPT  guidelines,  and  the
remaining valid Annual Confidential Reports.
8.    On the issue, whether  the  representations  filed  by  the  appellant
against the Reports for the years 1995-1996, 1996-1997  and  1998-1999  need
to be taken to their logical conclusion, we are  of  the  view,  that  since
almost two decades have passed by since the  aforesaid  Annual  Confidential
Reports were recorded, it would be too  late  in  the  day  to  require  the
Authorities to adjudicate upon the representations made by the appellant  as
against the uncommunicated Annual Confidential Reports.
9.    In  the  above  view  of  the  matter,  we  are  satisfied,  that  the
respondents ought to be directed to reconsider the  claim  of  promotion  of
the appellant, to the post of Chief Commissioner  of  Income  Tax,  for  the
vacancies which arose during the years 2000-2001 and 2001-2002 on the  basis
of the communicated reports for the years 1997-1998 and 1999-2000, within  a
period of three months from today.  Ordered accordingly.
10.   In case the appellant is found to be entitled  for  promotion  to  the
post of Chief Commissioner of Income Tax, he shall be promoted to  the  said
post,  with  effect  from  the  date  of  his  entitlement.   In   such   an
eventuality, he shall also be entitled to all arrears of  salary,  as  would
have been payable to him, if he had been promoted as Chief  Commissioner  of
Income Tax at the right time.   Simultaneously,  he  would  be  entitled  to
revision of his retiral benefits.
11.   In case the appellant is found  suitable  for  promotion,  this  order
should not be taken as permitting the authorities,  to  interfere  with  the
promotions already made.  Suffice it  to  state,  that  to  accommodate  the
appellant, it shall be open to the authorities to create  a  notional  post,
for giving effect to the instant order.
12.   To the extent indicated above, the appeals are allowed.

                                          ................................J.
                                                      [JAGDISH SINGH KHEHAR]



                                          ................................J.
                                                         [ADARSH KUMAR GOEL]
      NEW DELHI;
      JULY 23, 2015.

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