Promotion not by selection but by Seniority: High Court of Karnataka

October 7, 2023by Primelegal Team0

Title: T. Mahendran v. The National Insurance Company 

Decided on: 21st September, 2023 

WRIT PETITION NO. 4283 OF 2012  

CORAM: THE HON’BLE MR JUSTICE N S SANJAY GOWDA 

Introduction 

The Karnataka High Court recently heard the matter of Mr. Mahendran’s promotion in the National Insurance Company. Justice N S Sanjay Gowda decided that the petitioner was entitled for promotion from the post of Administrative Officer to the post of Assistant Manager. 

Facts of the case  

All the employees aspire for career advancement and promotion is an advancement of the employee in the organizational hierarchy. Similarly, Mr. Mahendran who is an employee in the national insurance company also expected promotion. But, the benefit was denied by the company on the ground that under the seniority-cum-merit policy, an assessment was to be made on the basis of the performance appraisal system and since the petitioner was out of  service for the period of 10 year between 1998 & 2008, there was no possibility of an assessment, and therefore, his claim for promotion was not tenable. Another reason was that from the year 2007 onwards, all officers had to qualify through a written examination & since the petitioner had refused to take part in the written examination, both in the years 2009 and 2010, he would not be entitled for promotion after the new policy came into effect. 

Supreme court while granting the Special Leave Petition (SLP), confirmed reinstatement and  granted 35% back wages, continuity of service and consequential benefits. The company stated that for the purpose of promotion from the post of Administrative Officer to the post of Assistant Manager, 42 marks are awarded to the seniority, 8 marks are awarded to the insurance qualifications and the remaining 50 marks are relatable to the traits indicated in the Confidential Records, Performance and Growth Potential. Court noticed that no minimum marks are prescribed for grant of promotion and clarified that the promotion is not by way of selection but by way of an assessment which is based on seniority, insurance qualifications and merit- cum-growth potential.  

Court analysis and Decision  

Court opined that the batch of 1995 being eligible for consideration for promotion in the year 2003, the petitioner did possess the necessary seniority and insurance qualifications in 2003. Hence, he would be entitled to 50 marks automatically. Regarding the other 50 marks, the question of relying upon the Confidential Record and the performance and growth potential would not arise while the employee was out of service. 

As it is conclusive that the selection is primarily based on seniority, considering the fact that Mr. Mahendran was not in service and still possessed adequate seniority for promotion, Justice N S Gowda decided that the petitioner would be entitled for promotion from the post of Administrative Officer to the post of Assistant Manager. As far as the further promotions are concerned, since from the year 2008, the policy prescribed passing of a written examination, which the petitioner is stated to have not taken deliberately, the petitioner would not be entitled for further promotions.  

The court directed to promote the petitioner notionally from the post of Administrative Officer to the post of Assistant Manager from 2003, and specifically, from the date on which the batch of officers belonging to the petitioner’s batch were promoted along with necessary benefits in terms of re-fixation of pay and pension, Since the petitioner has attained the age of superannuation. 

 

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Written by- K R Bhuvanashri 

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Primelegal Team

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