High CourtDivision BenchAppeal partly allowed; writ petitions disposed;...

Manjeet Singh v. Employees State Insurance Corporation and Anr.

Case / Petition Number:Civil Writ Petition No. 226 of 1986; Civil Appeal No. 1263 of 1990
Neutral Citation:(1990) 2 S.C.R. 120

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Ranganath Misra
  • M. M. Punchhi
  • K. Ramaswamy
Judgment Date
1990-03-22
Court Decision / Holding
Appeal partly allowed; Tribunal's direction to disregard interview qualifying marks was modified. The Court held that the recruitment should proceed with a scheme based on written test and interview, with pass marks of 40% for both written and interview components, and that 50% of the vacancies existing up to 31 December 1989, relatable to the one-third quota, should be filled from the panel after crediting 116 appointments. The remaining vacancies were to be filled by a fresh recruitment examination with a deadline of 30 September 1990. The life of the select list and the balance between promotion and direct recruitment were addressed, and the matter disposed of with no costs.
Final Disposition
Appeal partly allowed; writ petitions disposed; no order as to costs; directions issued for revised recruitment process and timelines.

Parties to the Case

Appellants / Petitioners

  • Manjeet Singh
  • UDC
  • and others

Respondents

  • Employees' State Insurance Corporation
  • Anr.

Legal Representation & Advocates

Counsels for Petitioners

  • • Dr. L.M. Singhvi
  • • Dr. Gauri Shankar
  • • C. Mukopadhya
  • • P.N. Misra
  • • H.S. Parihar

Counsels for Respondents

  • • Madhava Reddy
  • • Vivek Gambhir
  • • S.K. Gambhir
  • • R.D. Upadhyaya
  • • Surender Kamai

Case Synopsis & Summary

The case concerns the recruitment and promotion process for the post of Insurance Inspector/Manager Grade II under the Employees State Insurance Act, 1948. The respondent corporation prepared a panel for direct recruitment based on a written test and an interview, applying a 40% pass mark as a basic threshold for the interview in the absence of any prescribed qualifying marks. Unsuccessful candidates challenged the rejection before the Central Administrative Tribunal, arguing that the 40% interview threshold was unjustified and that appointments should be made from the existing panel. The Tribunal directed that a fresh select list be prepared using total marks from written and interview, disregarding the interview’s qualifying marks. The petitioners sought appointments according to the panel, while the respondents supported a recruitment scheme that kept a role for both promotions and direct recruitment and required a structured pass marks regime. The Supreme Court held that the interview has a distinct place in selection and a basic pass mark is reasonable, endorsing the view in Rajesh Sood & Ors. v. Director-General, ESI Corp. It directed (i) 50% of vacancies up to 31 December 1989 to be filled from the panel after crediting 116 earlier appointments; (ii) the remaining vacancies to be filled by a fresh examination by 30 September 1990; (iii) the recruitment scheme to include written test and interview with 40% pass marks for both; (iv) the oral test pass mark at 40%. The appeal was partly allowed with no costs.

Provisions of Law Cited

Section 2-A of the Employees' State Insurance Act, 1948Section 17(2) of the Employees' State Insurance Act, 1948Section 97(1)(2)(xx) of the Employees' State Insurance Act, 1948

Submissions & Arguments

Contentions of Appellants / Petitioners

Applicants argued that there was no prescribed qualifying mark for the interview and that applying a 40% pass for the interview as a basic limit was unwarranted. They contended that the Central Administrative Tribunal’s direction to disregard the interview qualifying marks and rely on total marks distorted the selection process and ignored the life of the panel. They urged that appointments should be made from the existing panel and that the life of the select list should be respected, given the vacancies and the earlier direct recruitment policy under two-thirds promotion and one-third direct recruitment.

Contentions of Respondents

Respondents defended the two-stage recruitment system based on written test and interview and insisted on maintaining a 40% pass mark for the interview as well as for the written component, arguing that the interview has its own place in selection. They argued for filling the existing vacancies by the panel and, where necessary, by a fresh recruitment examination, with a clear timetable and adherence to the 50%/remaining vacancy distribution described by the Tribunal and the Court's directions.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Rajesh Sood & Ors. v. Director-General, Employees State Insurance Corporation & Anr.Not specifiedPositiveThe Court approved the view expressed in this prior decision (1985) that a 40% pass mark for the interview is appropriate in the recruitment process and endorsed its reasoning.

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Extracted Judgment Text

Exact text extracted from official judgment records.

MANJEET SINGH, UDC AND ORS. ETC. _v._ EMPLOYEES STATE INSURANCE CORPN. AND ANR. ETC. MARCH 22, 1990 [RANGANATH MISRA, M.M. PUNCHHI AND K. RAMASWAMY, JJ.] _Employees State Insurance Act,_ _1948:_ _Sections 2-A,_ _17(2)_ _and_ ### J- 97( 1)(2)(xx). A B _Employees State Insurance Corporation-Insurance_ _Inspector-_ C _Recruitn;ientJJf-Written Test and Interview-No pass marks prescribed_ _for_ _interview-Selection made on the basis_ _of_ _40%_ _marks_ _in_ _the_ _;iJlterview held reasonable._ _Service Law-Post_Filling ·up_ _of vacancies-2/3 by promotion_ _and 1/3 by direct_ _recruitment-Panel-Direct Recruit quota partially_ _.filled-Filling_ _of_ _accumulated vacancies from out_ _of_ _old_ _penal-_ _Desirability of._ The respondent Corporation prepared a panel for the post of Insurance Inspector, for filling up the direct-recruit quota, on the basis of written test and interview_ In the absence of prescribed marks for the interview-40% was made as basic limit for selection. The unsuccessful candidates challenged their rejection before the Central Administrative Tribunal contending that the ·selection based on 40% marks in the interview was unjustified. Petitions were also filed by the successful candidates seeking directions to the respondent Corporation to issue appointments pursuant to the panel prepared. The tribunal directed that a fresh select list be prepared for filling up the remaining vacancies on the basis of the total marks obtained in the written examination and interview, in disregard of the qualifying marks of the interview. Hence this appeal. The successful candidates also filed a Writ Petition contending that they were entitled to appointment order since there was no indication of the expiry of the panel. Allowing the appeal in part and disposing of the matter, this Court, 119 D E F G H A B ###### 120 SUPREME COURT REPORTS I 1990] 2 S.C.R. HELD: I. Interview has its own place in the matter of the selection process and the choice of the candidate. Once this is recognised, it would he appropriate to require every candidate to pass the interview test and for that purpose there should be a basic limit provided. In the absence of any prescription of qualifying marks for the interview test the prescription of 40% as applicable for the written examination seems to be reasonable. [IBC-D] _Rajesh Sood_ _&_ _Ors._ v. _Director-General, Employees State In-_ _surance Corporation_ _&_ _Anr.,_ decided on August 7, 198.<, approved. 2. 50% of the vacancies existing upto 31st December, 1989, relatable to the one-third quota should be filled up out of the penal after C giving credit to aprointments already made. The remaining vacancies should be filled up by holding of a fresh recruitment examination. The scheme intended for recruitment should be on the basis of an examination comprising of written test and interview. In the oral examination the pass mark shall be 40% and 40% pass marks shall be insisted separately for the written as also the oral test for qualifying in the selection. [123B; D-E] D ORIGINAL JURISDICTION: Civil Writ Petition No. 226 of 1986. (Under Article 32 of the Constitution oflndia). E F G H WITH Civil Appeal No. 1263 of 1990. From the Judgment and Order dated 28.4.1989 of the Central Administrative Tribunal, Hyderabad in T .A. No. 1146 of 1986. Dr. L.M. Singhvi, Dr. Gauri Shankar, C. Mukopadhya, P.N. Misra and H.S. Parihar, for the Petitioners. Madhava Reddy, Vivek Gambhir, S.K. Gambhir, R.D. Upadhyaya and Surender Kamai! for the Respondents. The Judgment of the Court was delivered by RANGANATH MISRA, J. Petitioners are employees under the State Insurance Corporation, respondent no. 1. According to the notification dated 22nd of April, 1977, issued in exercise ot powers l \ -~ # .. MANJEET SINGH _v._ E.S.l.C. [MISRA, J.l 121 conferred bys. 97(1), (1, 2)(xxx), s. 2A ands. 17(2) of the Employees A State Insurance Act, 1948, (hereinafter referred to as 'the Act') which came by way of supersession of (he Employees State Insurance Corpo-~ ration (Recruitment) Regulations. 1965, the post of Insurance Inspec' tor/Manager Grade II was treated partly as selection and partly as nonselection. There was no age limit for departmental candidates and two-thirds of the vacancies were to be filled up promotion and one- B third by competitive examination under the Rules. By advertisement dated 6th August, 1983, applications were invited for filling up the one-third vacancies by direct recruitment to the category of post of I Insurance Inspector/Manager Grade II. The petitioners in this applica ~· tion under Art. 32 of the Constitution responded to the said advertisement and were in due course declared as successful in the test. In ##### consideration of the fact that a good number of vacancies were then c existing and in anticipation of the position that more vacancies were about to occur, a select list was drawn up for the existing and future vacancies. In the said select list petitioners featured at Sr. nos. 114, 116, 121, 159, 171, 172 and 188 respectively. The panel was notified and in accordance with the practice petitioners along with other sueD cessful candidates were individually intimated by respondent no. 2 on 1.9.1984. As already, indicated, the direct recruitment was on the basis of examination and interview. The advertisement did not prescribe any pass marks in the interview though for the written examination 40% E ·..1. was prescribed. Selection was, however, made on the basis of 40% in the interview test and those who did not secure 40% in the interview were not selected. Challenge was made by the unsuccessful candidates questioning their rejection by contending that in the absence of any ~ prescription of pass marks for the interview test, there was no justifi##### .., cation to apply the 40% basis. Writ Petitions were also filed when the F respondents instead of appointing people from the panel of successful candidates went on filling up existing vacancies out of the category of promotees. Such petitions were pending before the Calcutta, Madras and Andhra Pradesh High Courts when the Central Administrative Tribunals came to be set up. These were transferred to the respective Benches of the Central Administrative 'fribunals and on being clubbed G were disposed of by a common judgment dated 28th of April, 1989, by the Hyderabad Bench of the Central Administrative Tribunal. The Tribunal held: ...( "We would direct in these cases that the respondents shall work out and estimate the vacancies available upto 20th H A B ## c D 122 SUPREME COURT REPORTS [ 1990] 2 S.C.R. June, 1986 accurately (we have used the word 'accurately' as an apprehension has been expressed that dire.ct recruits are not getting their due since over 320 posts were filled up between May, 1986 and December, 1988 by promotees on _ad-hoc_ basis or otherwise). After such estimation, the respondents shall deduct therefrom 116 vacancies which have already been filled and make available the remaining **vacancies to the applicants and others who took the exami-** nation on the basis of aggregate marks, i.e. total marks obtained in the written test and the oral interview. Such of the applicants in all the three cases before us and heard by us at Hyderabad, Madras and Calcutta, who come within the zone of selection in accordance with this procedure as directed by us would be entitled to appointment." The writ petition is by the successful candidates whose names appear in the panel but who have not been given appointments. They have contended that the respondents were entitled to the issue of appointment orders to them inasmuch as vacancies exist and there was no indication that the life of the select list would expire either at the end of one year or on the expiry of the further ex\ended period of six months and when there has been no fresh select list as yet.· . __,____ The decision of the Central Administrative Tribunal referred to E above has been assailed by special leave challenging the direction of the Tribunal that the fresh select list filling up the remaining vacancies as on 20th June, 1986, should be prepared on the basis of total marks obtained in the written examination and interview in disregard of the qualifying marks for the latter. We granted special leave and have heard the writ petition and the civil appeal together: F As already indicated, the last list on the basis of recruitment examination was drawn up in 1984. There have been a good number of **vacancies then existing and subsequently a number of them have arisen** as against which only 116 appointments have been made, including 16 out of the reserved categories. At one stage of the hearing we had G indicated to Shri Madhav Reddy, appearing for the respondentCorporation that the existing vacancies should be filled up out of the panel of 1984 and in answer to this suggestion, an affidavit has been filed to say that candidates have been waiting for the holding of fresh recruitment examination and if out of the panel of 1984 all the existing vacancies are directed to be filled up, they would be frustrated. There H is force in the submission. The Tribunal in its decision has indicated #### _/r ' ; -,. MANJEET SINGH _v._ E.S.I.C. [MISRA, J.l '123 that even upto 20th June, 1984, there were some vacancies which were available to be filled up out of the panel. On account of respondents' inaction in holding of annual recruitment examinations, vacancies have accumulated. Keeping all these aspects in view, we direct that 50% of the vacancies existing upto 31st of December, 1989, relatable to the one-third quota should be filled up out of the panel after giving credit to 116 appointments noticed by the Tribunal. The remaining vacancies should be filled up by holding of a fresh recruitment examination latest before 30th of September, 1990. So far as the remaining question tl:tat was debated before the Tribunal is concerned, we are of the view that the scheme intended for recruitment should be on the basis of an exammation comprising of written test and interview. We agree with the submission of Shri Madhav Reddy that interview has its own place in the matter of the selection process and the choice of the candidate. Once this is recognised, it would be appropriate to require every candidate to pass the interview test and for that purpose there should be a basic limit provided. In the absence of any prescription of qualifying marks for the interview test the same prescription of 40% as applicable for the written examination seems to be reasonable. That has been the view expressed by one of us (Punchhi, J.) in a decision _(Rajesh Sood_ _&_ _Ors._ v. _Director-General,_ _Employees State Insurance Corporation_ _&_ _Anr.,_ decided on August.7, 1985) to which our attention has been drawn. We approve of the view. Accordingly, we modify the direction of the Administrative Tribunal and hold that in the oral examination the pass mark shall be 40% and 40% pass marks shall be insisted separately for the written as also the oral te;t for qualifying in th selection. The appeal is partly allowed and both the matters are disposed of by this common judgment. There shall be no order as to costs. T.N.A. Appeal allowet) in part. A B ### c D E F