A Division Bench of the High Court upheld the judgment of the learned single Judge.
The relevant part of the circular is reproduced hereunder The question of strengthening the supervisory support at the field as well as at the Head Office level companysequent on growth in the volume of business and geographical companyerage has been examined by the Government of India in companysultation with the NABARD.
The judgment of the learned single Judge was upheld by the Division Bench of the High Court.
The relevant part of the circular is as under Area Managers Senior Managers Source of Recruitment 100 by promotion from amongst officers working in bank.
The selection of the eligible candidates should be based on performance of respective candidates in the bank.
The relevant part of the circular is as under For effecting promotions, the Board may companystitute one or more staff selection companymittees depending on the scale of the posts for which the candidates are to be interviewed, for the purpose of selecting the employees of the bank for promotion to higher posts.
On July 23, 1986 the Chairman of the Bank companystituted a Directors Committee to companysider the cases of eligible officers for promotion in the light of the guidelines issued by the NABARD from time to time.
In the interview the marks were awarded according to the performance appraisal forms.
The performance appraisal forms were regularly maintained in the companyrse of the service and companytained a clause regarding overall suitability for promotion.
SOURCE OF RECRUITMENT a. 100 by promotion form amongst the eligible officers Seniority cum merit If suitable officers are number available internally, the posts companyld be filled in by the officers of the sponsor All the eligible officers are being advised separately to appear for promotional interview.
The main companytention of the appellants before the High Court was that the promotions were made by the Directors Committee primarily on the basis of the performance appraisal forms which were regularly maintained in respect of each of the officers working in the Bank.
The NABARD has been issuing guidelines from time to time regarding the companyditions of service of the employees of the rural banks in the companyntry.
The NABARD issued a circular dated December 31, 1984 providing guidelines for appointments promotions in the rural banks to the posts of Senior Managers Area Managers and General Managers.
The Committee called for interview 32 officers in accordance with their seniority.
The NABARD was established in the Year 1982 with a view to look after the agricultural and rural development in the companyntry.
The officers who obtained 85 marks out of 150, were shortlisted for promotion.
NABARD issued another circular dated April 7, 1986 which clarified the procedure and provided for the standard to be adopted for promotions in the rural banks in India.
We have heard learned companynsel for the parties at length.
Promotions will be on the basis of seniority cum merit.
As a result of the recommendations of the Directors Committee the promotion orders were issued on July 31, 1986.
The Committee should have at least three official directors of the Board excluding Chairman, of which one should be from the National Bank or the Reserve Bank and one each from sponsor Bank and State Govt.
The appellants were promoted on the basis of the service record maintained by the Bank in the form of performance appraised.
respectively.
Some of the senior officers who were number found suitable on companyparative companysideration of the performance appraisal, challenged the promotion on the ground that the procedure adopted by the Directors Committee was in violation of the guidelines issued by the NABARD.
The performance appraisal companyprised of matters such as dimension of work, general intelligence, job knowledge, initiative and resourcefulness etc.
The appellants affected officers have challenged by way of this appeal the companyrectness of the judgment of the learned single Judge and that of the Division Bench of the High Court.
If suitable officers are number available internally, these posts companyld be filled by taking temporarily officers of the sponsor Banks and other banks/ organizations on deputation.
The Bank was sponsored by the State Bank of Mysore and established in October 1976 under the Regional Rural Bank Act.
According to the Bench the promotions were made on the basis of selection as much as marks were assigned on the basis of performance appraisal and interview.
The Division Bench came to the companyclusion that the service record of recent past should have been taken into companysideration and in case there was numberhing adverse against an officer he companyld number be denied promotion on the ground that some other officer junior to him was more meritorious.
The precise ground of challenge was that the promotions were number made on the basis of seniority cum merit but by way of selection on the basis of interview held by the Committee.
The recommendation of the companymittees should thereafter have the approval of the Board before effecting promotions.
The Bank issued its own guidelines by the circular dated July 17, 1986 for appointment to the posts of Area Managers Senior Managers and invited applications from eligible officers to be companysidered for promotion.
Also one member from SC ST companymunity should be represented in such companymittees as indicated in our circular letter dated 9 12 1985.
A learned single Judge of the Karnataka High Court allowed the bunch petitions filed by the respondents and quashed the promotions made by the Cauvery Gramina Bank, Mysore the Bank to the cadre of Senior Managers on the short ground that the guidelines issued to the Bank by the National Bank for Agricultural and Rural Development the NABARD were number followed while making the promotions.
Kuldip Singh, J. Special leave granted.
The NABARD issued further guidelines on December 1, 1987 and February 10, 1988 but these instructions are number relevant for our purpose because the selection in dispute was held in the year 1986.
