In a significant judgment, the Supreme Court has held that there shall be no reservation in promotion by selection for top posts in Banks. It was held that for the appellant public sector banks, there is no provision for reservation in respect of Scale-VII and above [which carry an ultimate salary of ₹ 5,700/- per month (revised to ₹ 18,300/- by 5th Central Pay Commission and ₹ 20,800/- per month in respect of those Public Sector Undertakings following IDA pattern). However, the Supreme Court held that to carry out promotions from Scale-I upwards upto Scale-VI, reservation in promotion in favour of SC/ST employees has to be given.
[Update (9 January 2016): See latest judgment of Supreme Court: No reservations in promotions in public sector banks, clarifies Supreme Court.]
A bench of Justice J. Chelameswar and Justice A.K. Sikri delivered their decision in this regard on 9 January 2015 in the case of Chairman & Managing Director Central Bank of India & Ors. v. Central Bank of India SC/ST Employees Welfare Association & Ors, in Civil Appeal No. 209 of 2015 (see the full judgment).
It may be pointed out by its judgment dated 9 December 2009, Madras High Court had interpreted the Office Memorandum vide O.M. dated 13 August 1997 issued by the Central Government in favour of the SC/ST employees. However, the Supreme Court set aside the said judgment of the High Court to the extent it holds that the above Office Memorandum dated 13 August 1997 makes a provision for reservation. The relevant directions of the Supreme Court are as under:
“While setting aside the impugned judgment of the High Court to the extent it holds that Office Memorandum dated 13-08-1997 makes a provision for reservation, it is clarified that at present there is no provision for reservation in promotion by selection only in respect of those posts which carry an ultimate salary of ₹ 5,700/- per month (revised to ₹ 18,300/- by 5th Central Pay Commission and ₹ 20,800/- per month in respect of those Public Sector Undertakings following IDA pattern). Qua appellant Banks, that would be in respect of Scale-VII and above. Therefore, to carry out promotions from Scale-I upwards upto Scale-VI, reservation in promotion in favour of SC/ST employees has to be given. It would have the effect of allowing the writ petitions filed by the respondents/unions partly with directions to the appellant Banks to make provision for reservations while carrying out promotions from Scale-I to to Scale-II and upward upto Scale-VI.”
Taking note of the provisions of Article 16 of the Constitution of India, the Supreme Court observed that a reservation can not only be made at the entry level but is permissible in the matters of promotions as well. However, it clarified that Clauses 4 and 4A of Article 16 of the Constitution are only the enabling provisions which permit the State to make provision for reservation of these category of persons. The Court held that insofar as making of provisions for reservation in matters of promotion to any class or classes of post is concerned, such a provision can be made in favour of SC/ST category employees if, in the opinion of the State, they are not adequately represented in services under the State. It was further held that thus, no doubt, power lies with the State (i.e., the Government) to make a provision, but, at the same time, courts cannot issue any directions to the State to necessarily make such a provision, and that it is for the State (i.e., the Government) to act, in a given situation, and to take such an affirmative action. However, in this regard, the Supreme Court further clarified that:
“Of course, whenever there exists such a provision for reservation in the matters of recruitment or the promotion, it would bestow an enforceable right in favour of persons belonging to SC/ST category and on failure on the part of any authority to reserve the posts, while making selections/promotions, the beneficiaries of these provisions can approach the Court to get their rights enforced. What is to be highlighted is that existence of provision for reservation in the matter of selection or promotion, as the case may be, is the sine qua non for seeking mandamus as it is only when such a provision is made by the State, a right shall accrue in favour of SC/ST candidates and not otherwise.”
Thus, in essence, what the Court held is that provisions of Clauses 4 and 4A are only enabling provisions, and that, in addition, there should be specific orders / rules of the Government for providing reservations to the Scheduled Castes and Schedules Tribes employees in matters of appointment or promotion, then only the right of reservations can be enforced as a matter of right.
It is pertinent to point out that Clause 4 of Article 16 of the Constitution provides for reservations in appointments whereas Clause 4A of that Article provide for reservation in promotions. These Clauses are reproduced below:
“(4) Nothing in this article shall prevent the State from making any provision for the reservation of appointments or posts in favour of any backward class of citizens which, in the opinion of the State, is not adequately represented in the services under the State.
(4-A) Nothing in this article shall prevent the State from making any provision for reservation in matters of promotion, with consequential seniority, to any class or classes of posts in the services under the State in favour of the Scheduled Castes and the Scheduled Tribes which, in the opinion of the State, are not adequately represented in the services under the State.”
It is noteworthy that the above decision of the Supreme Court came to be delivered in a matter in which Central Bank of India SC/ST Employees Welfare Association and others had earlier challenged the decision of the Central Bank of India not to grant reservation in promotions in all categories. Thus, now the Supreme Court decision holds that reservations in the bank would be available in promotions only from Scale-I to Scale-VI, and that no reservation would be available in promotions in Scale-VII or above. For arriving at its decision, the Supreme Court took note of various Office Memorandums issued by the Department of Public Enterprises of the Government of India, which are applicable to the public sector banks.
Detailed judgment of the Supreme Court is available here.
In Tamil Nadu certain promotional posts are reserved 100% for women alone in Social Welfare Department while in other states it is for both male and female.. Is it not gender discrimination against males.Many male officers in this department are being denied due promotions than their junior women counterparts and corrective action is yet to be taken by the concerned authorities. In this connection many male officers /staff retired without due promotions. This apathy still continues even to-day Your comments please.
@ Chandrashekhar While agreeing to the fact that the deprived class needs to get into the mainstream and merge as one , the result is otherwise. The benefited individuals hold on to the privileged posts for their heirs while the real deprived continues to be out of the main stream.In the present system the children of a CEO of a deprived class in a public sector could get reservation while the children of a peon of a forward caste or of the deprived classes are not able to make into the mainstream….Reservation cannot be a privilege but only a support system for bringing up the impoverished. .