Supreme Court: Rules of Reservation not Applicable to Upgraded Posts

The Supreme Court of India held that Rules of reservation like SC,ST, OBC quota would not apply to upgradation of posts in Government establishments as the benefit could be extended only to promotional posts. A two-judge bench comprising Markandey Katju and RV Raveendran quashed the concurrent rulings of the Central Administrative Tribunal (CAT), Chennai branch and the Madras High Court that rules of reservation would apply even to upgradation of posts.

The Bench in its ruling stated that when there is a restructuring of some cadres, which results in creation of additional posts and filling of those vacancies by those who fulfill the conditions of eligibility, will attract the rules of reservation. On the other hand, where restructuring of posts does not involve creation of additional posts but merely results in some of the existing posts being placed in a higher grade to provide relief against stagnation, in that scenario the rules of reservation are not applicable. The candidate continues to hold the same post without any change in duties and responsibilities and simply gets a higher pay scale, observed the bench.

 
The Supreme Court bench gave the judgment when BSNL (Bharat Sanchar Nigam Limited) approached it after being aggrieved over the orders passed by the Madras Bench of the Central Administrative Tribunal and approved by the Madras High Court that reservation would apply to upgraded posts in BSNL under the BCR (Biennial Cadre Review) scheme.

The bench observed that as upgradation involves neither appointment nor promotion, it will not attract reservation. Upgradation involves mere conferment of financial benefits by providing a higher scale of pay. The court added that in case of mere upgradation of posts, as contrasted from promotion, reservation provisions would not apply.

The apex court passed the ruling while upholding the appeal filed by the BSNL, challenging the directions of the tribunal to restore to Grade 1V the services of certain employees all over the country. The said employees were initially upgraded to Grade 1V from Grade III by applying the reservation rules.

The BCR scheme was an upgradation scheme to give relief against stagnation. It did not involve creation of any new posts. It did not  involve   advancement   to   a   higher   post.   It   did   not   involve   any   process   of selection for conferment of the benefit of higher pay-scale. The upgradation was   given   to   the   senior   most   10%   of   BCR   scale   employees   in   Grade   III strictly as per seniority. BCR scheme as per circular dated 16.10.1990 was a scheme for upgradation simplicitor without involving any creation of additional posts. Such a scheme of upgradation did not invite the rules of reservation.