# NATIONAL FEDERATION OF S.B.I. AND ORS. ETC v. UNION OF INDIA AND ORS - **Citation:** [1995] 2 S.C.R. 748 - **Court:** Supreme Court of India - **Decided:** 1995-03-10 - **Bench:** R.M. Sahai, B.P. Jeevan Reddy, Suhas C. Sen - **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/national-federation-of-s-b-i-and-ors-etc-v-union-of-india-and-ors-12952 - **Pages:** 26 ## Headnote Service Law: Promotion-Reservation for SC/ST-Whether there could be reservation in favour of SC/ST in promotion by selection to Class-I posts when there is no specific order, rule or Memorandum-Whether Forty Point C Roster be applied to carry out the rule of reservation in the absence of such rule or reservation-Held there is no reservation in favour of SC/ST but they are entitled to concessions contained in the Office Memorandum. The Ministry of Home Affairs provided reservation at 12% and 5% of the vacancies for Schedule Caste/Schedule Tribe candidates in Class-III D & W posts filled by promotion to grades or service. This policy was revised providing promotion by selection from Class-II to the lower range or category in Class· I. The procedure prescribed was that in the case of eligible Schedule Caste/Schedule Tribe Candidates, the grading given to them shall be upgraded by one stage. This concession was confirmed to E only 25% of the total vacancies in particular grade or post filled in a year, and the ST/SC employees who are senior enough in the zone of consideration as to be within the number of vacancies, and who are not considered unfit for promotion should also be given one grading higher than assig· nable to them on the basis of.their record of service and their place in the ,F .G select list determined on the basis of this higher categorization. ( The said orders were supplemented by providing certain concessions and/facilities to S.CJS.T. Officers who are senior enough in the zone of consideration for promotion. Facilities provided included special training, advice and guidance. The said order was to take effect from the date of issue of the Memorandum. These concessions wouJd be available to the SC/ST officers in Public Sector/Financial Institutions in promotions by selection to posts within the offi~ers cadre up to scale-ID. The Association of Schedule Caste/Schedule Tribes employees work· ing in several Public Sector Banks filed writ petitions before the Supreme H . Court foNmplementation of reservation policy by maintaining the roster 748 I -'-r --r r --( ~ - I '\) FEDERATION OFS.B.I. v. U.0.1. 749 system and also for a direction to fill up the back log of unfilled vacancies A since 1978 by applying the carry forward rule in all grades and scales with consequential benefits. The transfer petition and Contempt Petition also relate to the same issue. Disposing of the petitions, this Court B HELD : 1. In promotions by selection to posts within Class-I the SC/ST Officers who, are senior enough in the zone of consideration for promotion as to be within the number of vacancies for which the select list has to be drawn would be included in the list provided they are not considered unfit for promotion. It only provides for a concession which the c State can always provide under Article 16 as explained in Indira Sawhaney's case. The concession is evidently designed and intended to help the SC/ST Officers obtain promotions which they may not otherwise get. (759-E, 762-C] Indira Sawhey v. Union of India, (1992) Suppl. 3 SCC 217, referred D to. 2. So far as promotions within Class-I are concerned with which alone the Memorandam dated March 26, 1970 deals with, there are no orders of the Government of India applying the rule of reservation. Those earlier Memoranda provided for reservation in Class-II, III and IV but not for E promotion to Class-I and not at any rate to promotion within Class-I. Nor does the Memorandam dated March 26, 1970 provide for such reservation. The idea is self-evident. While the nile of reservation is made applicable to the lower categories, Viz; Classes-II, Ill and IV (to the extent specified in the said Memoranda), no such reservation was thought advisabie in the matter of promotions within Class-I. Instead of reservation, a concession F was provided. It is thus clear that the letters of the Ministry of Finance dated May, 30, 1981 and the subsequent one do not amend or modify the Office Memorandu ## Text _Characters 0–39,730 of 63,971. This is a partial read: ask again with offset=39730 for what follows._ A NATIONAL FEDERATION OF S.B.I. AND ORS. ETC. v. UNION OF INDIA AND ORS. MARCH 10, 1995 B [R.M. SAHAI, B.P. JEEVAN REDDY AND SUHAS C. SEN, JJ.] Service Law: Promotion-Reservation for SC/ST-Whether there could be reservation in favour of SC/ST in promotion by selection to Class-I posts when there is no specific order, rule or Memorandum-Whether Forty Point C Roster be applied to carry out the rule of reservation in the absence of such rule or reservation-Held there is no reservation in favour of SC/ST but they are entitled to concessions contained in the Office Memorandum. The Ministry of Home Affairs provided reservation at 12% and 5% of the vacancies for Schedule Caste/Schedule Tribe candidates in Class-III D & W posts filled by promotion to grades or service. This policy was revised providing promotion by selection from Class-II to the lower range or category in Class· I. The procedure prescribed was that in the case of eligible Schedule Caste/Schedule Tribe Candidates, the grading given to them shall be upgraded by one stage. This concession was confirmed to E only 25% of the total vacancies in particular grade or post filled in a year, and the ST/SC employees who are senior enough in the zone of consideration as to be within the number of vacancies, and who are not considered unfit for promotion should also be given one grading higher than assig· nable to them on the basis of.their record of service and their place in the ,F .G select list determined on the basis of this higher categorization. ( The said orders were supplemented by providing certain concessions and/facilities to S.CJS.T. Officers who are senior enough in the zone of consideration for promotion. Facilities provided included special training, advice and guidance. The said order was to take effect from the date of issue of the Memorandum. These concessions wouJd be available to the SC/ST officers in Public Sector/Financial Institutions in promotions by selection to posts within the offi~ers cadre up to scale-ID. The Association of Schedule Caste/Schedule Tribes employees work· ing in several Public Sector Banks filed writ petitions before the Supreme H . Court foNmplementation of reservation policy by maintaining the roster 748 I -'-r --r r --( ~ - I '\) FEDERATION OFS.B.I. v. U.0.1. 749 system and also for a direction to fill up the back log of unfilled vacancies A since 1978 by applying the carry forward rule in all grades and scales with consequential benefits. The transfer petition and Contempt Petition also relate to the same issue. Disposing of the petitions, this Court B HELD : 1. In promotions by selection to posts within Class-I the SC/ST Officers who, are senior enough in the zone of consideration for promotion as to be within the number of vacancies for which the select list has to be drawn would be included in the list provided they are not considered unfit for promotion. It only provides for a concession which the c State can always provide under Article 16 as explained in Indira Sawhaney's case. The concession is evidently designed and intended to help the SC/ST Officers obtain promotions which they may not otherwise get. (759-E, 762-C] Indira Sawhey v. Union of India, (1992) Suppl. 3 SCC 217, referred D to. 2. So far as promotions within Class-I are concerned with which alone the Memorandam dated March 26, 1970 deals with, there are no orders of the Government of India applying the rule of reservation. Those earlier Memoranda provided for reservation in Class-II, III and IV but not for E promotion to Class-I and not at any rate to promotion within Class-I. Nor does the Memorandam dated March 26, 1970 provide for such reservation. The idea is self-evident. While the nile of reservation is made applicable to the lower categories, Viz; Classes-II, Ill and IV (to the extent specified in the said Memoranda), no such reservation was thought advisabie in the matter of promotions within Class-I. Instead of reservation, a concession F was provided. It is thus clear that the letters of the Ministry of Finance dated May, 30, 1981 and the subsequent one do not amend or modify the Office Memorandum dated March 26, 1970 but merely explain it. They make it explicit what is implict in it. (764-G-H; 765-A-B] 3. By virtue of the said Rule providing for concession, the members G of the Scheduled Castes/Schedule Tribes may stand to gain in some cases, in the sense that they may get more number of promotions than they would have been entitled to had the rule of reservation been applied to promotions within Class-I, while in some other cases they may stand to lose. But that cannot be a factor determining the interpretation of the relevant H 750 SUPREME COURT REPORTS [1995] 2 S.C.R. A orders. (771-H, 772-A] B Bihar State Harijan Kalyan Parishad v. Union of India, (1985) 2 SCC 644 and Syndicate Bank Scheduled Castes and Schedule Tribes Employees Association v. Union of India and Ors., (1990) Suppl. SCC 350, differed from. All India Bank of Baroda, Scheduled Castes and Scheduled Tribes Employees Association v. Union of India and Ors., (W.P. No. 1594/1987 decided on 18.8.1988 by Supreme Court), referred to. C , 4. There is no specific order rule or·Memorandum applying the rule ()ti.reservation in favour of Scheduled Caste and Scheduled Tribes in the matter of promotions within Class-I service. In the absence of such reser- . vation, the forty pc)int roster prepared by the Government of India cannot be applied or followed, for the simple reason that the roster is prepared D merely in implementation of and to carry out the rule of reservation. There can be no roster in ·the absence of rule of reservation. If the rule of reservation is not made applicable to a particular appointment or promotion, there can be no question of following the forty-point roster. The forty-point roster itself does not provide reservation. It inerely specifies places of reserved categories in accordance with and consistent with the E rules of reservation already made. (772-D-E] S. In the matter of promotion by selection to posts within Class-I which carry an ultimate salary of Rs. 2250 per month or less in the revised scale of pay, there is no reservation in favour of Scheduled Castes F and Scheduled 1iibes but they are entitled to the concession contained in · Para 2 of the Office Memorandum dated March, 26, 1970 issued by the Ministry of Home Affairs. The concession is that those Scheduled Castes/Scheduled Tribes Officers who are senior enough in the zone of consideration for promotion so as to be within the number of vacancies for which the select list has to . be drawn, will be included in the select list G provided they are not considered unfit for promotion. The position of such candidates included in the select, list would not be entitled, for the purpose of the said selection, one grading higher than the grading otherwise assignabltto them on the basis of their record of service. This is also the purport of para 9 of the Brochure is so far as it deals with yromotions if within Class-I. [772-F-H, 773-A] · . T \- 1 r -( FEDERATION OF S.B.I. v. U.0.1. [B.P. JEEV AN REDDY, J.] 751 6. In any event the concession can be applied and followed only when · A selection takes place. In the absence of a rule to that effect, the said concession cannot be given effect to retrospectively. The special provision made in in the matter of promotions within Class-I is not in the nature of reservation but a concession. The respondents shall apply, implement and follow the concession contained in Para 2 of the Office Memorandum dated B March 26, 1970 in the matter of promotions in Class-I to be made hereafter. Of course, so far as promotions to Classes-II, III and IV and promotions from Class-II to the lowest rung or category in Class-I are concerned, the orders in Office Memorandum dated July, 1968 shall be followed. (770-D-F] c CIVIL ORIGINAL JURISDICTION : Writ Petition (C) No. 896 of 1990 etc. etc. (Under Article 32 of the Constitution of India.) Altaf Ahmed, Additional Solicitor General, Rajendra Sachhar, S.P. D Goyal, N.N. Goswami and H.S. Gururaja Rao, Ms. Indu Malhotra, Ms. Jaishree Suryanarayan, R.N. Kovind, Ms. Aruna Banerjee, Sanjay Kapur, _..,. M.K. Michael, Ms. Arnita Gupta, R.B. Misra, P. Parmeswaran, Rajiv Kapur and K.R. Nagaraja for the appearing parties. - I The Judgment of the Court was delivered by E B.P. JEEVAN REDDY, J. The precise nature and character of the concession provided to Scheduled Castes and Scheduled Tribes in the matter of promotions within Class-I in the service of the public sector banks falls for consideration in this batch of writ petitions. The writ F petitions are filed by Associations of Scheduled Castes and Scheduled Tribes' employees working in several public sector banks. The reliefs sought for in all these writ petitions are broadly identical. For the sake of convenience, we may refer to the reliefs sought for in Writ Petitio~ (C) No. 896 of 1990 filed by the National Federation of State Bank of, India Scheduled Castes/Scheduled Tribes Employees. They are (a) to issue a'writ G of mandamus directing the respondent (State Bank of India) to implemen,J: the reservation policy by maintaining the roster system; (b) to direct th{ respondents (Union of India, State Bank of India and the Chairman of the Indian Banks Association) to fill up the backlog of unfilled vacancies since 1978 by applying the carry-forward rule in all grades and scales with H 752 SUPREME COURT REPORTS [1995),2 S.C.R. A consequential benefits; (c) to restrain the second respondent (State Bank of India) form making any promotion from Scale-I to Middle Management Scale-II and Middle Management Grade-III, upto Scale-VII, without following the principle of reservation; ( d) to grant promotion to Scheduled Castes/Scheduled Tribes employees/officers with retrospective effect with B consequential benefits of salaries and allowances; and ( e) to carry out the aforesaid directions within a prescribed time-frame. 2. For a proper appreciation of the issues arising herein, it is necessary to refer to the orders issued by the Government of India on the subject of concessions to Scheduled Castes/Scheduled Tribes employees in the C matter of promotions within Class-I service (which are to be filled by promotion) from time to time. Though the question that ultimately falls for _ consideration lies in a short compass, a reference to those orders and to decision of this Court on the subject has become necessary. D 3. By Office Memorandum No. 1/10/61-Estt.(D) dated November 8, 1963 issued by the Ministry of Home Affairs, reservation at 121/2 per cent and five· per cent of the vacancies was provided for Scheduled Castes and Scheduled Tribes candidates respectively in Class-III and Class-IV posts filled by promotion based on (i) selection or (ii) the results of competitive examinations limited to departmental candidates, in grades or services to E which there was no direct recruitment. The Memorandum stated that there would be no reservation for Scheduled Castes/Scheduled Tribes in appoint- • ments made by promotion to a Class-II or to a higher service or post, irrespective of the method of appointment. The aforesaid policy was revised and fresh orders issued in Office Memorandum No. 1/12/67- ·- F Estt.(C) dated 11th July, 1968 issued by the Ministry of Home Affairs. This Memorandum provided for several matters of which it is necessary to notice only the provision made under "(B) promotion by selection method: (a) Class-I and II appointments". It provided that in promotion by selection inter alia from Class-II to 'the lowest rung or category in Class-I, the procedure prescribed therein shall be followed, viz., (i) in the case of G eligible Scheduled Castes and Scheduled Tribes candidates, the grading given to them shall be upgraded by one stage. This concession shall, however, be confined to only twenty five per cent of the total vacancies in a particular grade or post filled in a year; (ii) "Those Scheduled Castes/Scheduled Tribes employees. who are senior enough in the zone of , H coruiideration so as to be within the number of vacancies for which the r ' ~; '1 FEDERATION OF S.B.I. v. U.0.1. (B.P. JEEV AN REDDY, J.] . 753 ~~ Select List has to be drawn, should be included in the Select list, if they A are not considered unfit for promotion and should also be given one grading hither than the grading otherwise assignable to them on the basis of their record of service and their place in the Select List determined on the basis of this higher categorisation". 4. The orders in Memorandum dated July 11, 1968 were suppleB r mented by orders issued on March 26, 1970 which is the one which falls for our· consideration. Having regard to its crudal relevance, it would be ~ appropriate to set out the Office Memorandum dated March 26, 1970 in full: --f. c "Ministry of Home Affairs O.M. No. 1/9/69-Est (SCT), Dated 26th March, 1970. Subject :- Concessions to Scheduled Castes and Scheduled Tribes in posts filled by promotion - Class-I Services/Posts. D -( ------------- ~ 'J\he question of increasing the representation of Scheduled Castes and Scheduled Tribes employees in Class-I services/Posts under the Government of India has been under the consideration E for some time past. In this Ministry's O.M.No. 1/12/67-Est(O) dated 11th July, 1968, certain concessions have been provided to Scheduled Castes and Scheduled Tribes, inter alia in the matter of promotion by selection to the lowest rung or category in Class-I . .:.......1 It has now been decided that the following concessions and facilities will be provided to Scheduled Castes and Scheduled Tribes officers F for their promotions within Class-I also. In promotions by selection to posts within Class-I, which carry an ultimate salary of Rs. 2250/- in the revised scale of pay per month, or less, the Scheduled 1 , Castes/Scheduled Tribes officers, G .._,) who are senior enough in the z6n.e of consideration for promotion so as to be within the number of vacancies for which the select list has to be drawn up, would be included in the list provided they are not considered unfit for promotion. Their position in the select list would however be the same as assigned to them by the Departmental Promotion Committee on the basis of their record H A SUPREME COURT REPORTS [1995) 2 S.C.R. of service. They would not be given for this purpose, the grading higher than the grading otherwise assignable to them on the basis of their record of service. In order to improve the chances of Scheduled Castes/Scheduled Tribes officers for selection to the higher categories B of posts in Class-I, it has further been decided that: c D E F G (i) Scheduled Castes/Scheduled Tribes officers in Class-I services posts should be provided with more opportunities for institutional , training and for attending seminars/symposia/conferences. Advantage could in this connection be taken of the training facilities available at the National Academy of Administration, Mussorie, National Police Academy, Mount Abu, Indian Institute of Public Administration, New Delhi, the Administrative Staff College, Hyderabad, etc. and (ii) It should be the special responsibility of the immediate superior officers of the Schedules Castes/Scheduled Tribes officers in ClassI to give advice and guidance to the latter to improve the quality of their work. / Ministries/Departments under whom Scheduled Castes/Scheduled Tribes Class-I officers might be serving should ensure that these decisions are implemented with expedition. Ministries/Departments (or the Heads of Departments) under whom such officers might be serving may specially watch the . progress of these officers so that all appropriate steps are taken wherever necessary, to improve the efficiency of these officers for the purpose of their selection to higher posts. 4. The orders contained in paragraph-2 above take effect from the date of issue except in respect of selections already made prior to the issue of these orders. ' 5. Ministry of Finance, etc. are requested to bring -the above decisions to the notice of all concerned. 6. In so far as persons serving in offices under the Comptroller and Auditor General of India are concerned, separate orders will H issue in due course." (Emphasis added) i ,, ---< .. ---\ I FEDERATION OFS.B.I. v. U.0.1. [B.P.JEEVAN REDDY,J.) 755 5. It is necessary to notice the significant features of this Office A Memorandum. They are: (a) this Office Memorandum does not speak of reservation; it speaks of concessions and facilities being provided to Scheduled Castes/Scheduled Tribes; (b) whereas under the earlier Office Memorandum, a certain concession was provided to Scheduled Castes/Scheduled Tribes candidates in the matter of promotion by selection to B the lowest rung 9r category in Class-I, under this Memorandum concessions and facilities were provided to Scheduled Castes/Scheduled Tribes officers for their promotions within Class-I also. However, these concessions and facilities were limited to posts within Class-I which carry an ultimate salary of Rs. 2250 in the revised scale of pay per month or less. The nature and character of concession provided by this Office MemoranC dum is slightly different from the one provided by Office Memorandum dated July 11, 1968 for promotion to the lowest rung or category in Class-I; (c) The concession provided to Scheduled Castes/Scheduled Tribes officers is this: those Schedules Castes/Scheduled Tribes officers who are senior enough in the zone of consideration for promotion so as to be within D the number of vacancies for which the select list has to be drawn up, would be included in the select list provided they are not considered unfit for promotion. (It is this formula, if we can call it one, which has given rise to controversy and varying interpretations. and upon which we have to pronounce - which aspect we shall deal with a little later.); (d) the position of Scheduled Castes/Scheduled Tribes candidates so included in the select E list would, however, be the same as assigned to them by the Departmental Promotion Committee on the basis of their record of service. ( e) for the aforesaid purpose, the Schedules Castes/Scheduled Tribes candidates will not be given one grading higher than the grading otherwise assignable to them on the basis of their record of service. F 6. The facilities provided in Para 3 of this Memorandum include special training, advice and guidance. It is not necessary to refer to them in detail. The said orders were to take effect from the date of issue ·of the said Memorandum but the promotions already made were to remain unaffected by it. G 7. On December 23, 1974, Office Memorandum No. 1/10n4-Estt. (SCT) was issued form the Department of Personnel, Training and Administrative Reforms (addressed to all Ministries) on the subject of "concessions to Scheduled Castes and Scheduled Tribes in posts filled by H 756 SUPREME COURT REPORTS (1995] 2 S.CR. A promotion by selection - posts within Class- I". This Memorandum rr.c:rely reiterated the concession contained in the Memorandum dated March 26, 1970 and requested the Ministry of Finance and other ministries to bring the said decision to_ the notice of all concerned. 8. On December 31, 1977, the Ministry of Finance, Department of B Economic Affairs (Banking Division), Government of India addressed a letter to all the National Banks as well as to the State Bank of India and its subsidiary banks intimating them that the Ministry has since decided "to extend the scheme of reservation in promotions also". The letter stated that according to the Reserve Bank of India, it will be difficult to formulate a C scheme uniformly applicable to all the banks though the basic policy of reservation can always be enunciated. The letter stated that Reserve Bank of India has already fong.ulated a scheme on the subject applicable to its employees. While enclosing a copy of the Reserve Bank of India-scheme, the public sector banks were requested "to implement to Government's · D orders suitably in your existing schemes of promotions with such procedural modifications as may be necessary". It is necessary to point out that this letter refers to "promotions in the various grades in the public banking· system" generally whereas the Office Memorandum dated March 26, 1970 deals specifically with promotions within Class-I only. Further, this letter (dated December 31, 1977) does not refer to or modify the orders issued E in the earlier Memorandums referred to above, which means that those orders remained unaffected. 9. On May 30, 1981, the Ministry of Finance, Department of Economic Affairs (Banking Division), Government of India issued a letter p No. F.1/45178-SGT(B) addressed to Chairman ivid Managing Directors of twenty nationalised Banks as well as to the Chairman, State Bank of India and Managing Directors of seven subsidiary banks of State Bank of India on the subject of "reservation for Scheduled Castes/Scheduled Tribes in promotion". After inviting attention to the letter dated December 31, 1977, Office Memorandums dated March 26, 1970 and dated December 23, 1974, G the letter stated: "(A)s per the Government orders, there is no reservation for Scheduled Castes and Scheduled Tribes in 'promotion by selection' within the officers cadre. But certain concessions and facilities are to be provided to the Scheduled Castes and Scheduled Tribes officers in order to improve their chances for selection to the higher categories of posts in H the officers cadre in accordance with the orders contained in the aforesaid r \ I T - I FEDERATION OFS.B.I. v. U.0.1. [B.P.JEEVAN REDDY,J.) 751 . Office Memorandums of Ministry of Home Affairs. It has been decided A that the concessions mentioned in Para-2 of MHA's O.M. dated 26.3.i970 would be available to the SC/ST officers in Public Sector Banks/Financial Institutions in 'Promotions by Selection' to posts within the officers cadre upto scale-III. The copies of MHA's O.M. dated 26.3.1970 and DP & AR O.M. dated 23.12.74 are enclosed herewith". The Banks were requested to B implement the said directions. 10. By letter dated November 7, 1983, (F.No. 101/11/83-SCT(B) from the Ministry of Finance, Department of Economic Affairs (Banking Division), Government of India the instructions issued in the letter dated May 30, 1981 were reiterated and the formula contained in Para 2 of the C Office Memorandum dated March 26, 1970 was explained by giving an illustration. The illustration reads thus : "(T)o illustrate, if 200 vacancies arc to be filled in and 3 times the number of vacancies is considered as, falling within the 'zone of consideration', then any SC/ST officer whose seniority falls within the first 200 will be eligible for promotion provided that he is not found unfit for promotion". By another letter dated March D 25, 1987, the Ministry of Finance, Department of Economic Affairs (Banking Division), Government of India reiterated the aforesaid directions. 11. The last communication in the sequence is the Office Memorandum No.36012/6/83-Estt.(SCT) dated November 1, 1990 issued by the E Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training), Government of India addressed to all the Ministries and Departments of Governinent of India including the Ministry of Finance (Banking Division). This Office Memorandum is clarificatory in nature. It would be appropriate to read it here: · "OFFICE MEMORANDUM Subject : Concessions to Scheduled Castes/Scheduled Tribes in posts filled by promotion-Group A services/posts. •••••••••• F G The undersigned is directed to refer to the O.M.No. 1/9/69Estt. {SCT) dated 26th March, 1970 as amended vide O.M. No. l/10n4-Estt.(SCT) dated 23.12.1974 and O.M. No. 36012/12/88Estt.{SCT) dated 21.9.1988 on the above mentioned subject (copy · H 758 SUPREME COURT REPORTS (1995) 2 S.C.R. A enclosed). B c D 2. Though in the O.M. cited above it has been clearly mentioned that in promotion by selection within Class I (now Group A) to posts which carry an ultimate salary of Rs. 2000 per month or less (since revised· to Rs. 5700), the Scheduled Castes/Scheduled Tribes will be given a concession namely "those Scheduled Castes/Scheduled Tribes who are senior enough in the zone of consideration for promotion so as to be within the number of vacancies for which select list has to be drawn up, would be included in that list provided they are not considered unfit for promotion", doubts have been expressed in certain quarters as to whether the concession given hereinabove is a reservation or a concession. 3. It is hereby clarified that in promotion by selection within Group 'A' to posts which carry an ultimate salary of Rs. 5700 p.m., there is no reservation." T 12. It would be appropriate at this stage to refer to the letter dated ~ May 9, 1980 from the Ministry of Finance, Department of Economic r--· Affairs (Banking Division), Government of India, addressed to the Chairman, Indian Banks Association, Bombay explaining the meaning of certain E expressions occurring in the Office Memorandums refereed to above. They are to the following effect: though according to the New Officers Service Regulations, salary includes basic pay and DA, so far as reservations are concerned, i.e., for the purpose of reservation, "ultimate salary" is meant to convey the basic pay only and does not include the variable DA. It was for this purpose that promotions upto Scale-III have been covered which F carries the scale upto Rs. 2250 which is exclusive of DA". With respect to the expressions "zone of consideration" and "not found unfit", the following clarification was made: G H "Clarifications have also been sought regarding the term "zone of consideration" and "Not found unfit". Zone of consideration is meant to cover all candidates who satisfy the prescribed conditions which have been laid. down for being considered for promotiOn. · This would mean that this zone of consideration would be similarly applicable to the general as well as SC/ST candidates. As regards the term "Not found unfit", it is clarified that this terms is meant _j / FEDERATION OF S.B.I. v. U.0.1. [B.P. JEEV AN REDDY, J.) 759 to convey that there is nothing adverse against the candidate." 13. It may be noted that the scale of Rs. 2250 mentioned in the Office Memorandum dated March 26, 1970 was later revised to Rs. 5700, as stated in Office Memorandum dated November 1, 1990 referred to in the precedmg para. A B 14. The Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training), Government of India has been issuing a Brochure on the subject of reservation for Scheduled Castes and Scheduled Tribes in services from time to time. This Brochure sets out the reservations, concessions and facilities provided to Scheduled Castes and C Scheduled Tribes officers in Government service from time to time in a condensed form besides setting out the orders issued by the Government of India from time to time. Quite often, the courts have been referring to this Brochure while referring to the reservations/concessions provided to the said categories. One such reference is in Bihar State Harijan Kalyan D Parishad v. Union of India, [1985) 2 S.C.C. 644. Para 9 of the Brochure, as extracted in the said judgment, reads thus : "In promotions by selection to posts within Group 'A' which carry an ultimate salary of Rs. 2250 per mo~th, or less, the Scheduled E Caste/Scheduled Tribe officers, who are senior enough in the zone of consideration for promotion so as to be within the number of vacancies for which the select list has to be drawn up, would be included in that list provided they are not considered unfit for promotion. Their position in the select list would, however, be the same as assigned to them by the Departmental Promotion Committee on the basis of their record of service. They would not be given, for this purpose one grading higher than tha grading otherwise assignable to them on the basis of their record of service." F (What is extracted is obviously a portion of Para 9 and not the whole of G ".J Para 9. The decision does not also mention from which edition of the Brochure was it quoted.) 15. in 1987, the Government of India issued the seventh edition of the said Brochure in which Para 9.2, corresponding to the one quoted H 760 SUPREME COURT REPORTS (1995] 2 s.c.R. A above, reads as follows : B c D E F G H "9.2 Promotion by selection method. MHA OM NO. 1/9/69. Estt. (SCT) dated 26.3.70 and Deptt. of Personnel & A.R.O.M. NO. 111on4-Estt. (SCT) dated 23.12.74. 9.2 (a) Promotions by selecting within Group A (Class I). In promotions by selection to posts within Group A (Class I) which carry an ultimate salary of Rs. 2,000 per month, or less, (Rs. 2,250 per months or less in the revised scale) there is no reservation, but the Scheduled Castes and Scheduled Tribes Officers, who are senior enough in the zone of consideration for promotion so as to be within the number of vacancies for which the select list has been drawn up, would be included in that list provided they are not considered unfit for promotion. Their position in the select list would, however, be the same as assigned to them by the Departmental Promotion Committee on the basis of their record of service. They would not be given for this purpose, one grading higher than the grading otherwise assignable to them on the basis of their record of service. In order to improve the chances of Scheduled Castes and Scheduled Tribes officers for selection to the higher categories of posts in Group A (Class I). (i) Scheduled Castes/Scheduled Tribes officers in Group A (Class I) Services/posts should be provided with more opportunities for institutional training and for attending seminars/symposia/conferences. Advantage would also be taken of the training facilities available at the Lal Babadur Shastri National Academy of Administration, Mussoorie, National Police Academy, Hyderabad, Indian Institute of Public Administration, New Delhi, the Administrative Staff College, Hyderabad etc. and r ,--- \ __ I . I , , I FEDERATION OF S.B.I. v. U.0.1. [B.P. JEEV AN REDDY, J.) 761 (ii) It would be the special responsibility of the immediate A superior officers of the Scheduled Castes/Scheduled Tribes officers in Class I to give advice and guidance to the latter to improve the quality of their work. (emphasis added) B 16. The only difference between Para 9.2 as quoted in Bihar State Harijan Kolyan Parishad and the one contained in the seventh edition of the Brochure is the addition of the wordS "there is no reservation" underlined by us, which are not found in the version quoted in the said decision. A good amount of controversy is raised with respect to this addition. In our C opinion, the said controversy is not real and is born of an insufficient appreciation of the manner in which the Brochure is prepared by the Government of India. Ai!. stated above, the Brochure sets out the gist, the substance and the purport of the various orders issued from time to time. If only one looks to the original Office Memorandum instead of concentrat- D ing upon the Brochure, the entire controversy turns out to be unreal. Insofar as promotions within Oass-1 are concerned - wc are referring to promotions within Oass-1 along for the reason that wc arc concerned in this case with only those promotions - it is admitted by Sri Rajinder Sachhar, learned counsel for the petitioners as well as the learned counsel for the Union of India and the Banks that there are no other orders except E those referred to above; in particular, it is admitted, there is no order applying the rule of reservation to the said promotions (within Oass-1). In such a situation, the approp~te course would be to refer to the Office Memorandums issued by the Government of India - particularly the Office Memorandum dated March 26, 1970 - rather than to the Brochure. Ai!. we F shall explain later, sub-paras (1) and (2) of Para 9 of the Brochure represent the gist of Office Memorandums referred to above and are in no manner different or inconsistent. 17. We may now tum to the meaning and nature of the "concession" contained in the Office Memorandum dated March 26, 1970. We have G already set' out the significant features of the said concession contained in Para 2 of Office Memorandum in Para S of this judgment. We shall now explain what exactly does the formula mentioned under (c) in Paragraph S of our judgment mean? For the sake of convenience, we shall repeat the formula. "In promotions by selection to posts within Oass-1 ... the Scheduled H 762. SUPREME COURT REPORTS (1995) 2 S.C.R. A Castes/Scheduled Tribes officers who are senior enough in the zone of consideration for promotion so as to be within the number of vacancies for which the select list has to be drawn up would be included in the list provided they are not considered unfit for pr