High CourtDivision BenchAppeals allowed; High Court order set aside; pe...

Bureau of Indian Standards v. S.K. Kanojia

Case / Petition Number:Civil Appeal No. 4657 of 2007; CA Nos. 4658, 4659 and 4660 of 2007
Neutral Citation:(2007) 10 SCR 574

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Dr. Arijit Pasayat
  • Tarun Chatterjee
Judgment Date
2007-10-05
Court Decision / Holding
Appeals allowed. The Court held that the Single Judge erred in interpreting the effect of the 1998 amendment and that Regulation 9, as amended, was to be read with immediate effect. The 2004 amendment’s bar on retrospective promotions did not deprive the respondents of their rights to be dealt with under the revised scheme from the date they became eligible. The final order directs the petitioners to be promoted to Scientist-D in the pay scale 12,000-375-16,500 as soon as each petitioner's five years of service in Scientist C had been completed, in accordance with the FCS applicable on that date. The order of the High Court and the earlier division bench are set aside; no costs awarded.
Final Disposition
Appeals allowed; High Court order set aside; petitioners to be promoted under the revised FCS as per eligibility and on completion of required residency

Parties to the Case

Appellants / Petitioners

  • Bureau of Indian Standards

Respondents

  • S.K. Kanojia

Legal Representation & Advocates

Counsels for Petitioners

  • • Vikas Singh, Additional Solicitor General (A.S.G.), B.K. Sood and Indra Sawhney

Counsels for Respondents

  • • J.P. Singh and S.S. Jauhar

Case Synopsis & Summary

This appeal concerns the Bureau of Indian Standards’ (BIS) recruitment and promotion rules for its Scientific Cadre under the Flexible Complementing Scheme (FCS). BIS adopted the FCS following recommendations of the Fifth Central Pay Commission, which elevated the emphasis on qualifications, performance, merit, seniority, potential and recent Annual Confidential Reports (ACRs) for promotions. In 1998 BIS amended the FCS to extend the scheme to Scientists F and G and to establish seven years as the residency period for eligibility, replacing the earlier five‑year norm. Regulation 9 of the 1988 BIS Regulations was subsequently amended in 2002 to reflect the revised FCS, with the benefit of FCS to be given from the date of eligibility. Another amendment in 2004 introduced a bar against retrospective promotion. Respondents, working as Scientist C since 1994, were promoted to Scientist D in 2003 (effective 2001) but claimed entitlement to promotion in 1999 under the unamended scheme. The High Court had allowed their writ petitions, relying on older decisions, while the Court of Appeal allowed the BIS appeal, holding that the 1998 amendment and subsequent amendments create a regime in which promotions are not automatic, and that the 2004 bar does not adversely affect these petitioners. The Supreme Court ultimately allowed the BIS appeals, holding that the amendments had immediate effect and that the petitioners were not entitled to automatic promotion under the unamended scheme; the decision clarifies the correct interpretation of the revised FCS and its prospective application."

Provisions of Law Cited

Bureau of Indian Standards Act, 1986, s. 38Bureau of Indian Standards (Recruitment to Scientific Cadre) Regulations, 1988, Regulation 9Office Memorandum dated 9 November 1998 (OM No. 2/41/P1C-97) implementing the 1998 FCS changesRegulation 9 amended on 3 May 2002 under s. 38 BIS Act, 1986BIS (Recruitment to Scientific Cadre) Amendment Regulations, 2004Gazette notification G.S.R. No. 660(E) dated 9 November 1998

Legal Doctrines & Maxims

  • Promotions are not automatic
  • No vested right to an empoyment promotion absent a clear statutory/administrative provision
  • Even where administrative schemes are amended, retroactive application is constrained by express provisions or clear intent for prospectivity
  • Read regulations with the relevant amendments to avoid misapplication of the scheme

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant BIS contends that the 1998 amendments to the Scheme of Flexible Complementing (FCS) and the corresponding amendments to Regulation 9 were intended to apply with immediate effect and to extend the FCS benefits to Scientists F and G, with seven years’ residency for eligibility, instead of the earlier five years. The 1998 notification and the 2002 amendment, read with Regulation 9, created a regime in which the FCS is applied based on evaluation of scientific merit rather than mere completion of five years in a lower grade. The 2004 amendment introduced a bar on retrospective promotions, and the BIS submits that promotions are not automatic; retirement or vacancy timing does not compel automatic advancement. The BIS argues that the respondents could not claim entitlement to a promotion in 1999 under the unamended regime; the 1998 amendments were already in effect and the 2004 amendment merely clarifies the prospective application, not retroactive rights. The court should allow the appeals and direct promotion only in the light of the revised scheme and its conditions, not under the old scheme.

Contentions of Respondents

The respondents contend that under the 1998 scheme they became eligible for promotion to Scientist D on completion of seven years of service in the preceding grade (Scientist C). They argue that the 1998 notification and the 2002 Regulation 9 amendment created a right to in‑situ promotion upon meeting eligibility, including the 1999 date, and that the 2004 amendment, being prospective, did not negate the right accrued on 9 November 1998 and continued thereafter. They rely on earlier judgments recognizing restraints on retrospective promotions and contend that the 1998 changes were intended to be effective from the date of their introduction, which would entitle them to promotion in 1999. They also rely on executive and administrative decisions and prior case law to claim a vested right to be considered for promotion, arguing that the BIS cannot retroactively bar such rights without proper statutory basis.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
State of Andhra Pradesh & Ors. v. Sreenivasa Rao & Ors.[1993] 3 SCC 285DistinguishedCited by the learned Single Judge but distinguished in light of the 1998 FCS changes and the 2002/2004 amendments which created a different regime for promotions.
P. Mahendran & Ors. v. State of Karnataka & Ors.[1990] 1 SCC 411DistinguishedLike the other cited cases, relied upon earlier principles but not applicable to the revised FCS regime post-1998 amendments.
P. Murugesan & Ors. v. State of Tamil Nadu & Ors.[1993] 2 SCC 340DistinguishedFell to be distinguished on account of changes in the FCS regime that took effect from 1998 onward.
Mr. NC Jain & Ors. v. New Delhi Municipal Council & Ors.CW No. 4555/2001, decided 16 Sept. 2003OverruledEarlier decision relied on retroactive treatment of promotions; the present judgment does not permit retrospective promotions under old rules and overrules the cited approach.

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Extracted Judgment Text

Exact text extracted from official judgment records.

~ A ## BUREAU OF INDIAN STANDARDS _v._ ## S.K. KANOJIA ## OCTOBER 5, 2007 B [DR.ARIJITPASAYAT ANDTARUNCHATTERJEE,JJ.] .. ' - .... _Service Law:_ c _Bureau of Indian Standards (Recruitment to Scientific Cadre) Regulations, 1988-Regulation 9-Promotion-Under 'Flexible Complementing Scheme-Amendment of Scheme in 1998Amendment adopted by the employer· in 2002-Promotion given as per 1998_ amendment-Writ Petition claiming promotion on the basis_ D _[of ][unamended-Scheme-Courts below directing promotion on the ] basis of unamended Scheme o-n the ground that at the time when the promotions fell due, amended rules did not exist-On appeal, held: Employees not entitled to promotion under the unamended SchemeThe amendment having been given immediate effect to by the_ E _[Notification ][of ][the date prior ][to ][the date the promotions fell due as ] per unamened Scheme, view of courts below not correct-Bureau of Indian Standards Act, 1986-s. 38._ c 'Flexible Complementary Scheme' (FCS), introduced in 1983/1986 F[was ][adopted ][by ][the appellant-Bureau inJ996 after recommendation of ] Fifth Central Pay Commission. By a Notification dated 9.11.1998 changes were introduced in the FCS whereby benefit ofFCS was based on scientific and technical knowledge; and eligibility for promotion was increased to 7 years from 5 years. The benefit of FCS was also extended G[to Scientist ]['F' ][and ]['G' ][thereby. The Bureau implemented the change ] by amending Regulation 9 of Bureau oflndian Standards (Recruitment to Scientific Cadre) Regulations, 1988 in 2002. The benefit thereunder was to be given w .e.f. 9.11.1998. Respondents were working as Scientist 'C' w.e.f1994, in the pay-scale of Rs. 10,000-15,200 in the Bureau. They \- ~ _r-_ 574 H _I_ 575 BUREAU OF INDIAN STANDARDS _v._ S.K. KANOJIA were promoted under FCS in 2003 w.e.f. 2001. They filed Writ Petition A on the ground that they were to be promoted as Scientist-Don completion of 5 years i.e. in 1999. The Bureau attributed the delay in promotion, to the change in Service Regulations. During pend ency of the petition, another Notification was issued in 2004, again amending Regulation 9 whereby a bar against retrospective implementation of the Scheme was B introduced. Single Judge allowed the Writ Petitions holding that the petitioners (respondents herein) had become entitled to promotion as Scientist 'D' in 1999 and at that time Rules to the contrary did not exist Division Bench of High Court held that the amendment of2004 being prospective in its operation was not applicable to the employees. The C order of Single Judge was upheld. Hence the present appeal. Allowing the appeal; the Court HELD: Single Judge of High Court was not right in holding that in 1999 the respondents had become eligible for promotion to Grade 'D' D and at that time rules to the contrary did not exist, overlooking the fact that in 1998 itself amendment had been bro~ght, in the prevailing Flexible Complementing Scheme on the basis of1998 Notification and not under Bureau of Indian Standards (Recruitment to Scientific Cadre) Regulations, 1988. Clause 3 of Notification dated 9.11.1998 goes to show E that it was intend_ed to give immediate effect to the decision. The revised scheme of 1998 shows the assessment norms for promotion. Definite focus was on evaluation of scientific and technical knowledge. U oder the revised scheme the respondents became eligible for promotion on completion of7years of service. Undisputedly, the Regulations of1988 F in Regulation 9 provided that the benefit of FCS was available upto Scientists grade 'E '.It was therefore necessary to amend the Regulation so that the Scientists grade "F' and 'G' could be given the benefit of FCS. Single Judge was also not correct in directing promotion because promotion is not automatic and the Annual Confidential Reports had to G be looked into. Regulation 9 provided that the promotion of selected officers under the FCS was to be on the basis of evaluation from "time to time". That being so, the Single Judge and the Division Bench were not correct in their views. The change in 2004 does not in any way cover H 576 SUPREME COURT REPORTS [2007] 10 S.C.R. A **the respondents. [Paras 17, 20, 21and22] [584-E-F; 585-E-H; 586-A]** CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4657 of 2007. From the final Judgment and Order dated 6.2.2006 of the High Court B[of ][Delhi ][at ][New Delhi in LP.A. ][No. ][1689/2005. ] WITH c C.A. Nos. 4658, 4659 and 4660of2007. Vikas Singh, A.S.G., B.K. Sood and Indra Sawhney for the Appellant. ~ ·~ .... J.P. Singh and S.S. Jauhar for the Respondent. The Judgment of the Court was delivered by D **DR. ARIJIT PASA YAT, J. 1.** Leave granted. 2. These appeals are directed against the judgment of a Division Bench of the Delhi High Court dismissing the appeals preferred against the order of a learned Single Judge who allowed the writ petitions filed E[by ][the respondents. ] \- 3. Background facts in a nutshell are as follows: The respondents had claimed for directions to the appellants-Bureau oflndian Standards (hereinafter referred to as 'BIS') to promote them F[as ][Scientists-Din the pay-scale ofRs.12000-375-16500 on the ][date ][of ] their completion of 5 years of service in the lower grade under a scheme known as the "Flexible Complementing Scheme" (hereinafter referred to as 'FCS'). The BIS is governed by statutory regulations. The relevant provision, viz. Regulation 9 of Bureau oflndian Standards (Recruitment to Scientific Cadre) Regulation, 1988 (in short the "Regulation") reads as follows: G "9. Promotion to the Posts upto System Scientist-E [Director (selection Grade)]" (1) The selection for promotions shall be made from amongst the scientific cadre officers serving in the next lower H -~ ~ ## BUREAU OF INDIAN STANDARDS _v._ S.K. KANOJIA 577 [PASAYAT, J.] grade by: the standing staff committee of Selection Committee 'A' A as the case may be, on the recommendations of the Assessment committee appointed by the Director General under sub-regulation (3). Selection of officers for promotion shall be made on the basis of assessment procedure as laid down by the Executive Committee which shall take into account qualifications performance, merit, B seniority, potential, annual confidential reports for previous five years and interview. (2) The promotion of Selected officers to next higher grade upto the System Scientist-E shall be made in the same manner as laid c down in the Scheme of Flexible Complementing formulated from time to time by the Department of Science and Technology for promotion of Scientists in scientific organizations under the Central Government and shall be effective from the date of eligibility." 4. The BIS adopted recommendations of the Fifth Central Pay D Commission, with effect from 1-1-1996, and implemented the FCS. The FCS contemplated promotion, after completion of certain prescribed periods of service, in relation to each post (known as the "residency period"). These pertained not only to posts, but also to scales of pay. The relevant residency periods were as follows: E |periods of service, in relation to each post (known as the "residencyof service, in relation to each post (known as the "residencyservice, in relation to each post (known as the "residencyin relation to each post (known as the "residencyrelation to each post (known as the "residency<br>period"). These pertained not only to posts, but also to scales of pay.not only to posts, but also to scales of pay.<br>The relevant residency periods were as follows:relevant residency periods were as follows:residency periods were as follows:periods were as follows:|periods of service, in relation to each post (known as the "residencyof service, in relation to each post (known as the "residencyservice, in relation to each post (known as the "residencyin relation to each post (known as the "residencyrelation to each post (known as the "residencyto each post (known as the "residencyeach post (known as the "residency<br>period"). These pertained not only to posts, but also to scales of pay.not only to posts, but also to scales of pay.only to posts, but also to scales of pay.to posts, but also to scales of pay.posts, but also to scales of pay.<br>The relevant residency periods were as follows:relevant residency periods were as follows:residency periods were as follows:periods were as follows:were as follows:as follows:follows:|periods of service, in relation to each post (known as the "residencyof service, in relation to each post (known as the "residencyservice, in relation to each post (known as the "residencyin relation to each post (known as the "residencyrelation to each post (known as the "residencyto each post (known as the "residencyeach post (known as the "residencyas the "residencythe "residency"residency<br>period"). These pertained not only to posts, but also to scales of pay.not only to posts, but also to scales of pay.only to posts, but also to scales of pay.to posts, but also to scales of pay.posts, but also to scales of pay.to scales of pay.scales of pay.of pay.pay.|periods of service, in relation to each post (known as the "residencyof service, in relation to each post (known as the "residencyservice, in relation to each post (known as the "residencyin relation to each post (known as the "residencyrelation to each post (known as the "residencyto each post (known as the "residencyeach post (known as the "residencyas the "residencythe "residency"residency<br>period"). These pertained not only to posts, but also to scales of pay.not only to posts, but also to scales of pay.only to posts, but also to scales of pay.to posts, but also to scales of pay.posts, but also to scales of pay.to scales of pay.scales of pay.of pay.pay.| |---|---|---|---| |The relevant residency periods were as follows:relevant residency periods were as follows:residency periods were as follows:periods were as follows:|The relevant residency periods were as follows:relevant residency periods were as follows:residency periods were as follows:periods were as follows:were as follows:as follows:follows:||E| |Scalesof|Designation|Minimmn|| |Pay|Residency|periodlinkedto|| |||Perfmmance|| |(a)Rs.8000-13500|ScientistB|3years|F| |(b)Rs.I 0000-15200|ScientistC|4years|| |(c)Rs.12000-16500|ScientistD|4years|| |(d)Rs.14300-18300|ScientistE|5years|| 5. The respondents were in the pay-scale ofRs.10,000-15,200, and working as Scientist-C, with effect from 10.3 .1994 and were to have been G promoted to Scientist -D, after five years in 1999. The promotions were granted only in March, 2003, with effect from March, 2001. The delay was attributed by the BIS, to a contemplated change in the Service Regulations. Changes were introduced to the FCS by an Office Memorandum dated 9th November, 1998 which modified the eligibility H SUPREME COURT REPORTS [2007] 10 S.C.R. 578 A for benefits of the FCS linked to the Annual Confidential Reports of the person concerned. Regulation 9 was amended by notification dated 3rd May, 2002, in exercise of the powers conferred by Section 38 of the Bureau of Indian Standards Act, 1986 (in short the "Act") to read as follows: B c D E "9 .Protmotion to the Posts up to Scientist-G "( 1) The selection for promotions shall be made from amongst the Scientific Cadre officers serving in the next lower grade by the Assessment Committee appointed by the Director General under sub-regulation (2). Selection of officers for promotion shall be made in the same manner as laid down in the Scheme of Flexible complementing formulated from time to time .by the Central Government for promotion of scientists in Scientific Organizations under the Central Government and shall be effective from the date of eligibility. The Scheme of Flexible Complementing as formulated by the Central Government vi de OM No.2/41/P 1 C-97 dated the 9th November, 1998 would be effective for Scientific Cadre Officers upto and inclusive of the level of Scientist-E from 9th November, 1998 and for the levels of Scientist-F and Scientist G, the date of promotion would be effective from the date of Gazette Notification of this revised regulation." 6. The rationale for the amendment was spelt out in Explanatory Memorandum to the notification, which stated, _inter alia_ that: F G H "The Scheme of Flexible Complementing (FCS) was earlier introduced based on the guidelines issued by the Department of Science and Technology (DST) in November, 1983 for all Scientific and Technical Organizations/Institutions of the Government oflndia, which was later modified vide Department of Science & Technology's OM No.A.42014/2/86-Admn.l(A) dated the 28th May, 1986. According to this scheme, the promotion of an officer in scientific service from one grade to the next higher grade would take place after a prescribed period of five years residency service on the basis of assessment procedure as laid down by individual organization. Promotions made under ,, BUREAU OF INDIAN STANDARDS _v._ S.K. KANOJIA , 579 [PASAYAT, J.] this scheme would be in-situ and with effect from the date of their A eligibility as per the residency period and personal to the officer concerned irrespective of the occurrence of the vacancy in the higher grade. Accordingly, in Bureau of Indian Standards, all Scientific Cadre Officers were considered eligible for promotion from one grade to the next higher grade after they had put in 5 B years of residency service in that grade. Thereafter, based on the assessment procedure as laid down by the Executive Committee of Bureau of Indian Standards, which shall take Into account qualifications, performance, merit, seniority, potential, annual confidential reports for previous five years and interview by the' C Assessment Committee appointed "by the Director General, the officers would be promoted to the next higher grade _as_ per their date of eligibility." 7. The respondents had approached the court, complaining that the D BIS acted arbitrarily in withholding promotions to them to the cadre of Scientist D, from the date of their eligibility; instead of the promotion rightfully due to them in 1999, they were given the benefit in 2001. During the pendency of their writ petitions, another notification was issued on 128-2004, and published in the Gazette of India. By this notification E Regulation 9 was again amended. The Explanatory Memorandum clarified the purpose behind the change. It stated that BIS Regulations, 2002 adopted the Scheme formulated by the Central Government and its benefits were to be given to employees with effect from 9th November, 1998. It was felt that the BIS did not possess powers to implement the Scheme F retrospectively. The policy of the Central Government was that the Scheme should apply to the Scientific Cadre Officers of the BIS only prospectively. Therefore, the Notification was issued to rectify a mistake. Regulation 9, as amended in2004, read as follows: "9.Promotion to the Posts up to Scientist-G "(l) The selection for G promotions shall be made from amongst the Scientific Cadre officers serving in the next lower grade by the Assessment Connnittee appointed by the Director General under sub-regulation (2). Selection of officers for promotion shall be made in the san1e manner as laid down in the Scheme of Flexible Complementing H { ' l 580 SUPREME, COURT REPORTS [2007] 10 S.C.R. A B formulated from time to time by the Central Government for promotion of scientists in Scientific Organizations under the Central Government subject to the condition that the said Scheme shall be applicable to the Scientific Cadre Officers of the Bureau from the date of commencement of the Bureau of Indian Standards (Recruitment of Scientific Cadre) Amendment Regulations, 2004." 8. The original writ petitioners had also urged that other employees, viz Shri H.J.S. Pasricha, Smt. D.G. Dastidar, Shri G. Bhaskar, Shri Bijender Kumar Jain, Shri Jayanta Roy Chowdhury and Smt. Mala C Ayyappan, had been given the benefit of automatic 'promotion' to ClassD in December 1998, although by that time the proposed changes had already been effected. 9. The learned Single Judge allowed the writ petitions of the respondents, relying upon the decisions of this Court in _State of Andhra_ D _Pradesh & Ors._ v. _Sreenivasa Rao & Ors.,_ [1993] 3 SCC 285; _P. Mahendran & Ors._ v. _State of Karnataka & Ors.,_ [1990] 1 SCC 411; _P. Murugesan & Ors._ v. _State of Tamil Nadu & Ors.,_ [1993] 2 SCC 340 and a decision of this Court, in CW No. 4555/2001 entitled _Mr. NC.Jain & Ors._ v. _New Delhi Municipal Council & Ors.,_ decided on E September 16, 2003. He rejected the contention of the appellant BIS that by virtue of the amendments, particularly of2004, it was no longer possible to grant benefit of retrospective promotion to any official or employee. F G 10. The learned Single Judge held as follows: "In 1999 the Petitioners had become entitled to 'promotion' to Group-D and at that time Rules to the contrary did not exist. The then prevailing FCS ought to have therefore been implemented in 1999 itself and had this been so done the Petitioners would have been promoted to Group-Dafter the expiry of five years service in Group-C. It should also not be overlooked that the effect of the Notification of 12th August, 2004 was to return to the regime which entitled the Petitioner to automatic progression to Group-D on their completing five years in Group-C. H _f !_ 581 _r_ ~ # BUREAU OF INDIAN ST AND ARDS v. S.K. KANOJIA [PASAYAT, J.] _1-)_ In these circumstances, the Writ Petitions are allowed and the[A ] respondents are directed to promote the Petitioners to the post of Scientist-0 in the pay-scale ofRs,12,000-375-16,500/- as soon as each of the petitioners had rendered five years service in the post of Scientist-Casper the Flexible Complementing Scheme B applicable on the said date." B 11. The appellants preferred writ appeals before the High Court which by the impugned judgment, dismissed the same. The conclusions of the High Court are set out in paragraphs 13 and 14 of the judgment. The High Court was of the view that the amendment introduced in 2004 c for the first time sought to introduce a bar against retrospective promotions i.e. from the date the eligibility conditions of the officials aspiring for promotion were fulfilled. Before the amendment no such prohibition or condition existed. It was held that the amendment is not retrospective in its operation. It was held that though the term "retrospective" was used, D the promotion under the previous scheme as modified in 1996 and amended in 1998 and 2002 created an entitlement in favour of the officer in a feeder cadre to be promoted from the date he fulfilled the eligibili1:y condition. This, according to the High Court, is evident from the Notification dated 9.11.1998 and the amendment to Regulation 9 effective E from 2002. The limiting condition of the date of promotion being after the due date of application of the notification was in respect of promotions above the level of Scientist E. The High Court felt that the rationale for this C(<)nclusion was that merely the post was included in the scheme for the first tin1e on 3.5.2002 and the right to be considered and granted 'in F situ' promotion to the petitioners from the dates they acquired eligibility after completion of the residency period did not stand altered. The prohibition introduced in 2004 was prospective and could not take away their right to be dealt with as on the date they became eligible to be promoted, which indeed was the date when the promotion was to be G effective. It was held that the respondents were promoted in 2003. 12. In support of the appeals, learned counsel for the appellants submitted that the true effect of Regulation 9 has not been duly considered. The issue relates to entitlement of Scientific Officers in Grade 'C' to H -( 582 SUPREME COURT REPORTS . [2007] 10 S.C.R. ~ A promotion under Scientific Officer in Grade 'D'. FCS was introduced by a Notification issued in the year 1983/1986 wherein the same to be applicable to three levels i.e. S-1 level in the pay scale of Rs .. 700-1300, S-11 level in the pay scale of Rs.1100-1600 and S-111 level in the pay scale of Rs.1500-2000. It was further provided in the scheme that in B exceptional cases the scheme may be extended to next higher level i.e. S-IV in the pay scale of Rs.1800-2250 on merits depending upon the extent of stagnation at that level. In the year 1988 the BIS recruitment to Scientific Cadre Regulations were promulgated. In order to give benefit to scientific cadre officers of the BIS, Regulation 9 made the requisite C provision. ~ _"" 13. It is pointed out that the order of the learned Single Judge and the judgment of the Division Bench have failed to take notice of a very crucial expression i.e. 'from time to time'. On 16.3 .1994 the respondents . D were promoted to the post of Scientific Grade 'C' under the FCS. As the scheme stood then the respondents would be ·entitled to further promotion as Scientists in Grade 'D' under FCS upon completion of five years of service i.e. w.e.f. March, 1999 provided the respondent.s made it under assessment procedure laid down by BIS. Before the re~p_ondents E became eligible for promotion the scheme itself was modified on 9.11.1998 where the minimum residency period for promotion was reduced from five years to four years. However, the number of years in which the Scientific Officer became; eligible was to be <let.ermined under a graded scheme depending upon the merits in me ACR. Under the revised scheme F of 1998 the promotion under FCS was made more rigorous. providing more emphasis on evaluation of scientific and technical knowledge so that only scientists with demonstrable achievements or higher level of technical merit would be recommended for promotion under the FCS. Under the revised scheme, respondents became eligible for promotion in Sci~ntists G grade 'D' after completion of 7 years of service in the Grade of Scientists Grade 'C'. Under the amended scheme of _9)_ 1.1998 Scientists in Grade 'F' as well as in Grade 'G' were also included for being given the benefit ofFCS. Since the regulations of 1988 more particularly, Regulation 9 provided for the benefit ofFCS only upto Scientists Grade 'E', there was H necessity to amend the Regulation so that Scientists Grade 'F' and 'G' BUREAU OF INDIAN STANDARDS v: S.K. KANOJIA 583 [PASAYAT, J.] ~ _>.._ could also be given the benefit. With effect from 3.5.2002, Regulation 9 A was amended. 14. It is submitted that before the respondents became eligible the scheme itself had undergone a change and 1986 scheme had been superseded in view of introduction of the new scheme on 9 .11.1998. .B There was no vested right to be considered for promotion merely on completion of 5 years of service. The High Court erroneously held that even if the amendment existed there was vested right. In essence, it was submitted that both the learned Single Judge as well as the Division Bench committed a manifest mistake by holding that the respondents had a vested C right in the year 1999 to be promoted to the grade of Scientists Grade 'D' on mere completion of five years of service. It was also submitted . that out of 180 officers who were covered by the change in the scheme ·• w.e.f. 9.11.1998 only four had filed writ petitions and rest accepted the change. D D 15. In response, learned counsel for the respondents submitted that the explanatory memorandum at the time of amendment on 12.8.2004 Il'l;ade the position clear and the High Court's view was right. It was clearly stated that the appellant had no power to implement the scheme retrospectively. The respondents are entitled to be considered as per the E earlier FCS and promoted in situ w.e.f. 10.3.1999. Therefore, it was submitted that the appeals deserve to be dismissed. 16. Under the amended scheme there are gradings according to the ACRs and the criteria for being considered for promotion under the _PCS_ F have been laid down. They read as follows: "(a) All officers will be first screened on the basis of gradings iu the Annual Confidential Reports (ACRs) for consideration for promotion; the ACRs should be assessed on a 10 point scale giving 10 marks for "outstanding", 8 marks for "very good", 6 marks for G "good", 4 marks for "average" and 0 for "poor" and only those officers who satisfy the minimum residency period linked to their perfonnance as H 584 SUPREME COURT REPORTS [2007] 10 S.C.R. |A||Number|Numberofyearsinthe|grade||| |---|---|---|---|---|---|---| |||3|4<br>5|6|7|8| |||Minimumpercentagefor||foreligibility||| ||Scientist Bto|90%|80%70%|65%|60%|| ||ScientistC|||||| |B · Scientist C|B · Scientist Cto||90%80%|75%|70%|60%| ||ScientistD|||||| ||Scientist Dto||90%80%|75%|70%|60%| ||ScientistE|||||| |c|Scientist Eto||90%|80%|75%|70%| ||ScientistF|||||| ||Scientist Fto||90%|80%|75%|70%| ||ScientistG|||||| A Exceptionally meritorious candidates with all outstanding gradings D may be granted relaxation in the residency period, the relaxation being not more than one year on any single occasion. Such a relaxation will be limited to a maximum of two occasions in their entire career." E 17. The revised scheme of 1998 shows the assessment norms for promotion. Definite focus was on evaluation of scientific and technical knowledge. Under the revised scheme the respondents became eligible for promotion on completion of 7 years of service. Undisputedly, the Regulations of 1988 in Regulation 9 provided that the beneijt of FCS was F available upto Scientists grade 'E'. It was therefore necessary to amend the Regulation so that the Scientists grade "F' and 'G' could be given the benefit of FCS. 18. The crucial expressions in the Notification of 9th November, 1998 contain certain stipulations which are as under. In clause 2 it has G been inter-alia stated as follows: H " ...... .It has also been decided that assessment norms for promotions under the Flexible Complementing Scheme should be rigorous with due emphasis on evaluation of scientific and technical knowledge so that only the scientists who have to their credit BUREAU OF INDIAN STANDARDS _v._ S.K. KANOJIA 585 [PASAYAT,J.] _j_ ,_; ~ demonstrable achievements or higher level of te9hnical merit are A recommended for promotion under the Flexible Complementing Scheme." 19. Again in Clause 3 it has been stated as follows: " ..................... Accordingly, all the posts covered under the Flexible Complementing Scheme shall cany the following unifonn scales of pay, designations and the minimum residency period linked to perfonnance:- B |scales of pay, designations and the minimum residency period linkedof pay, designations and the minimum residency period linkedpay, designations and the minimum residency period linkeddesignations and the minimum residency period linked<br>to perfonnance:-perfonnance:-|scales of pay, designations and the minimum residency period linkedof pay, designations and the minimum residency period linkedpay, designations and the minimum residency period linkeddesignations and the minimum residency period linkedand the minimum residency period linkedthe minimum residency period linkedminimum residency period linked|scales of pay, designations and the minimum residency period linkedof pay, designations and the minimum residency period linkedpay, designations and the minimum residency period linkeddesignations and the minimum residency period linkedand the minimum residency period linkedthe minimum residency period linkedminimum residency period linkedresidency period linkedperiod linked|scales of pay, designations and the minimum residency period linkedof pay, designations and the minimum residency period linkedpay, designations and the minimum residency period linkeddesignations and the minimum residency period linkedand the minimum residency period linkedthe minimum residency period linkedminimum residency period linkedresidency period linkedperiod linked| |---|---|---|---| |ScalesofPay|Designation|MinimumResidency<br>Periodlinkedto|c| |||Performance|| |(a)Rs.8000-13500|ScientistB|3years|| |(b)Rs.l 0000-15200|ScientistC|4years|| |(c)Rs.12000-16500|ScientistD|4years|D| |(d)Rs.14300-18300|ScientistE|5years|| |(e)Rs.16400-20000|ScientistF|5years|| |(f)Rs.18400-22400|ScientistG|Notavailable|| E In order to give immediate effect to the decision contained in this ' para an umbrella Notification has been issued vide G.S.R. No.660(E) dated 9 .11.1998" 20. As a bare reading of above quoted clause goes to show that it was intended to give immediate effect to the decision, an umbrella F Notifi~ation G.S.R.No.660(E) dated 9.11.1998 was being issued. The criteria for promotion have already been quoted above. 21. Stand before the High Court was that the eligibility was after 1999 and there was a vested right. It is to be noted that under the 1998 G Regulations also the same could not have been applied to Grade 'F' and 'G' and so the amendment as noted above was necessary. Learned Single Judge was not right in holding that in 1999 the respondents had become eligible for promotion to Grade 'D' and at that time rules to the contrary did not exist, overlooking the fact that in 1998 itself amendment had been H 586 SUPREME COURT REPORTS [2007] 10 S.C.R. A brought in the prevailing FCS on the basis of 1998 Notification and not under 1988 Regulations. Learned Single Judge was also not correct in. directing promotion because promotion is not automatic and the Annual Confidential Reports had to be looked into. The change in 2004 does not in any way cover the respondents. · B 22. Regulation 9 provided that the promotion of selected officers under the FCS was to be on the basis of evaluation from "time to time". That being so, the learned Single _Judge and the Division Bench were not correct in their views~ The appeals deserve to be allowed which we direct. The order of the learned Single Judge as affirmed by the High Court C stands set aside. There will be no order as to costs. K.K.T. Appeals allowed.