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Life Insurance Corporation Of ... vs The National Commission For ...
2022 Latest Caselaw 16930 Mad

Citation : 2022 Latest Caselaw 16930 Mad
Judgement Date : 28 October, 2022

Madras High Court
Life Insurance Corporation Of ... vs The National Commission For ... on 28 October, 2022
                                                                                 W.P.No.27385 of 2018

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                               DATED : 28.10.2022

                                                      CORAM

                              THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM

                                              W.P.No.27385 of 2018
                                                      and
                                             W.M.P.No.31891 of 2018

                     Life Insurance Corporation of India,
                     Rep.by its Zonal Manager,
                     Zonal Office,
                     153, Anna Salai, Chennai – 600 002.                             ...Petitioner

                                                            Vs.

                     1.The National Commission for Scheduled Caste
                       Rep.by its Director,
                       Shastri Bhavan, State Office,
                       Chennai – 600 006.

                     2.Ms.P.Vennila                                                ..Respondents


                     Prayer : Writ Petition filed Under Article 226 of the Constitution of India,
                     to issue a Writ of Certiorari, calling for the records relating to the order
                     made in Case No.13, File No.9/8/2017 Rep.CGU dated 26.07.2018 and as
                     communicated by letter No.9/8/2017 Rep.CGU dated 03.09.2018 by the 1st
                     respondent Commission and quash the same as being illegal, perverse,
                     arbitary and unjust.


                     1/16


https://www.mhc.tn.gov.in/judis
                                                                                    W.P.No.27385 of 2018

                                     For Petitioner       : Mr.C.K.Chandrasekkar
                                     For R1               : Mr.T.K.Thirumalaisamy
                                                            Central Government Standing Counsel

                                     For R2               : Mr.G.Alex Bengigar

                                                           ORDER

The minutes of hearing held on 26.07.2018 before the National

Commission for Scheduled Castes at Chennai, which was communicated

through letter dated 3rd September 2018 is under challenge in the present

writ petition.

2. The writ petitioner is Life Insurance Corporation of India. The

petitioner states that the 2nd respondent employee is working as Assistant in

the petitioner-Life Insurance Corporation of India. The 2nd respondent /

Ms.P.Vennila was appointed at Chennai Divisional Office II on

compassionate grounds due to the demise of her Mother Mrs.K.Sarbala. The

2nd respondent was posted at City Branch Office-XI, Chennai Divisional

Office II. She has studied M.Sc., (Bioinformatics) and she had two elder

sisters and got married and her younger brother was studying B.E., course

during the relevant point of time. The appointment of the 2nd respondent was

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

confirmed on 01.01.2011. On 30.10.2014, she had made a request for

transfer. Her request for transfer was considered and from 09.11.2017, she

was working at City Branch Office – 28.

3. The second respondent belongs to Scheduled Caste Community.

The petitioner issued a Notification dated 12.01.2017 for promotion to the

cadre of Higher Grade Assistant. In the Notification, it was clearly stated

that the places of vacancies in Chennai Centre are mofussil branches of

Chennai Centre, Kancheepuram, Madurantakam, Chengalpattu, Tiruttani,

Ponneri, Gummidipoondi and Thiruvallur are the Mofussil branches of

Chennai Centre. During the process of promotion, the 2nd respondent got

selected. She was offered a posting in promotion year 2016-17 at one of the

Mofussil branches of Chennai Centre at Gummidipoondi and the 2nd

respondent refused to join at Gummidipoondi. She insisted that she should

be given posting within Chennai City since the request made by the 2nd

respondent employee was found unreasonable. The petitioner Management

had not acceded to the request.

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

4. The 2nd respondent approached the first respondent / National

Commission for Scheduled Caste and submitted a complaint before the said

Commission on the ground that she was discriminated since she belongs to

Scheduled Caste community. The Commission issued notice to the writ

petitioner/Management regarding the grievances advanced by the second

respondent and directed them to appear and respond to the complaint. The

second respondent filed her rejoinder. The petitioner/Corporation furnished

all the details regarding the promotion granted to the 2 nd respondent and the

consequential posting order issued to her.

5. The first respondent / National Commission for Scheduled Caste

recorded the outcome of the hearing held on 26.7.2018 as under:

“The Hon'ble Vice Chairman had resented on the absence of Zonal Manager, LIC of India, Chennai who was called for the hearing on 26.7.2018. As the Zonal Manager, LIC of India, Chennai was also called for hearing in another case on 27.7.2018, the Hon'ble Vice Chairman desired to hear the case on 27.7.2018 in the presence of the Zonal Manager.

On 27.7.2018, the Zonal Manager and the petitioner had appeared for hearing. Both the petitioner and the

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

Management explained their sides. The Hon'ble Vice Chairman directed that only Chairman & Managing Director of LIC has to be called for hearing the case in future. The Hon'ble Vice Chairman directed the Zonal Manager of LIC to submit list of employees promoted and transferred for the last 5 years. The Hon'ble Vice Chairman ordered the LIC to promote the petitioner and post her in Chennai itself.”

6. The learned counsel for the petitioner mainly contended that the

first respondent has no jurisdiction or power to issue direction in the matter

of promotion and postings, which is the administrative prerogative of the

petitioner/Corporation. In the event of such direction by the first respondent,

the petitioner/Corporation may not be in a position to run the administration

efficiently and in a smooth manner. Thus, the petitioner has constrained to

move the present writ petition, questioning the validity of the directions

issued by the first respondent in its minutes passed on 26.07.2018.

7. The learned counsel appearing on behalf of the first respondent

made a submission that the first respondent/Commission is empowered to

adjudicate the issues raised in the complaint under Article 338 of the

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

Constitution of India. Under Sub Clause 8, the Commission has all powers

of a Civil Court trying a suit and therefore, the Commission is empowered to

pass directions and orders based on the complaint, if any submitted by a

member of Scheduled Caste Community. Thus, there is no infirmity as such.

8. Let us consider the scope of the powers conferred under Article 338

of the Constitution of India to the National Commission for Scheduled

Castes.

9. Article 338, Sub Clause 8 of the Constitution of India, reads as

under:

“338. National Commission for Scheduled Castes -

(8) The Commission shall, while investigating any matter referred to in sub-clause (a) or inquiring into any complaint referred to in sub-clause (b) of clause (5), have all the powers of a civil court trying a suit and in particular in respect of the following matters, namely :—

(a) summoning and enforcing the attendance

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

of any person from any part of India and examining him on oath;

(b) requiring the discovery and production of any document;

(c) receiving evidence on affidavits;

(d) requisitioning any public record or copy thereof from any court or office;

(e) issuing commissions for the examination of witnesses and documents;

(f) any other matter which the President may, by rule, determine.”

10. While investigating the matter under Sub Clause (a) and (b) of

Clause 5 to Article 338, the Commission shall have all the powers of a Civil

Court trying a suit and in particular in respect of the summoning and

enforcing the attendance of any person etc., as stipulated in the provision.

Thus, it is unambiguous that the Commission can exercise the powers of the

Civil Court for the purpose of conducting an adjudication in an effective

manner. Regarding the reliefs to be granted, the powers are to be confined

and the Commission may not issue any direction, directing the Government

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

authorities or the Corporation authorities to grant promotion to a particular

person or issue posting to a person in a particular Station or place, which all

are governed under the Service conditions of an employee.

11. More specifically, National Commission is not empowered to issue

any direction to transfer an employee in a particular post or place. Promotion

is also a condition of service and all promotions are to be granted strictly in

accordance with the Service rules in force. While considering promotion and

for preparation of panel, the employer has to consider all the eligible

persons, who all are aspiring to secure promotion in accordance with the

rules in force and in the order of seniority. In the event of issuing any such

direction to promote the employee based on a complaint, then the same

would result in denial of promotional opportunity to all other eligible

employees, who all are waiting for promotion including the other Scheduled

Caste employees, who may be senior to the complainant in a particular case.

Therefore, the Commission has to exercise restraint in service matters, more

specifically, in the matters of promotion, transfer, postings etc.,

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

12. Transfer is an incidental to service, more so, a condition of service.

Transfer being a condition of service, the employer is empowered to post an

employee in a particular place in the interest of public administration. In the

event of any such direction to transfer or post an employee in a particular

post, the same will affect the normal public administration and further, it

will result in infringement of the administrative powers, conferred on the

employer. The National Commission is not expected to interfere with the

routine administrative affairs of the Departments or the Corporation. If at all

there is any irregularity, illegality or violation of service rules are identified,

then the Commission may issue suitable recommendations to rectify the

same. However, merely issuing a direction to post an employee or transfer

an employee in a particular post or place would cause prejudice to the

interest of the public administration, which is not contemplated under Article

338 of the Constitution of India.

13. The scope of Article 338 of the Constitution of India cannot be

expanded for the purpose of interfering with the routine administrative

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

affairs of the employer, which all are governed under the Service Rules in

force. While considering the complaint, if at all any violation of Service rules

are identified or traced out by the Commission, the Commission may issue

necessary recommendations to rectify the mistakes by following the rules in

force, but would not issue any straight direction to post a person or promote

a person in a particular place or cadre.

14. The very object is to ensure that the rights of the Scheduled Caste

persons are protected. Thus, if any rights are infringed, then the Commission

has to issue necessary directives to correct the mistakes in accordance with

the rules by the employers. Contrarily, the Commission cannot act as an

employer. A thin difference in this regard is to be scrupulously followed by

the Commission, while adjudicating the complaint and while issuing

directives.

15. Therefore, the Commission in such matters are expected to be

cautious and while protecting the rights of the Scheduled Caste community

people, they cannot interfere with the routine administration of the

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

Department or Corporation. Thus, the powers conferred under Article 338,

Sub Clause 8 of the Constitution of India is for the purpose of adjudication

of issues by exercising all the powers of a Civil Court, trying a suit.

Therefore, the power of the Commission is to be exercised in the manner

contemplated and the Commission shall not usurp the administrative powers

conferred on the Government Departments and other Governmental

organizations or institutions.

16. The independence of powers conferred on each organization is to

be protected in consonance with the Constitutional provisions. One

institution, interfering with the powers of other institution must be done

strictly in accordance with the provisions of the Constitution and in service

matters, the employers have got prerogative powers to regulate its own

administration. Thus, in the event of identifying violation of right of a

member of a Scheduled Caste Community, the Commission may ensure that

the employer rectifies the mistakes or violations in the manner contemplated

under the Rules, but the Commission may not issue any straight direction to

transfer an employee or to promote an employee, which may result in

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

infringement of the rights of all other employees, who all are otherwise

eligible for promotion in accordance with the rules.

17. Thus, in this regard, the Commission is expected to be more

cautious in the interest of public administration. It is relevant to consider

Article 335 of the Constitution of India, which ensures efficiency in public

administration. Thus, the Government Departments and institutions are

bound to maintain efficiency in public administration in the interest of public

at large and in the event of any interference in a routine administrative

affairs, they may not be in a position to run the administration smoothly.

18. Therefore, this Court is of the considered opinion that the

direction issued in the present case by the Commission to promote the

petitioner and post her in Chennai itself will amount to interference in the

administrative prerogative of the petitioner organization, which is

impermissible under Article 338 of the Constitution of India.

19. The learned counsel for the petitioner relied on the judgment of

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

the Hon'ble Supreme Court of India in the case of All India Indian

Overseas Bank SC and ST Employees' Welfare Association and others

vs. Union of India others reported in (1996) 6 SCC 606 and the relevant

paragraphs are extracted hereunder:

“10. Interestingly, here, in clause (8) of Article 338, the words used are "the Commission shall... have all the powers of the Civil Court trying a suit". But the words "all the powers of a Civil Court" have to be exercised "while investigating any matter referred to in sub-clause (a) or inquiring into any complaint referred to in sub-clause (b) of clause 5". All the procedural powers of a civil court are given to the Commission for the purpose of investigating and inquiring into these matters and that too for that limited purpose only. The powers of a civil court of granting injunctions, temporary or permanent, do not inhere in the Commission nor can such a power be inferred or derived from a reading of clause (8) of Article 338 of the Constitution.

11. The Commission having not been specifically granted any power to issue interim injunctions, lacks the authority to issue an order of the type found in the letter

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

dated 4-3-1993. The order itself being bad for want of jurisdiction, all other questions and considerations raised in the appeal are redundant. The High Court was justified in taking the view it did. The appeal is dismissed. No costs.”

20. The learned counsel for the petitioner brought to the notice of this

Court that the grievances of the 2nd respondent was already redressed and

further, she got promotion and now serving at Tirutani.

21. Thus, the orders made in Case No.13, File No.9/8/2017 Rep.CGU

dated 26.07.2018 and as communicated by letter No.9/8/2017 Rep.CGU

dated 03.09.2018 by the 1st respondent Commission are quashed and the

writ petition stands allowed. No costs.

28.10.2022

Index : Yes Speaking order:Yes kak

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

To

1.The Director, National Commission for Scheduled Caste Shastri Bhavan, State Office, Chennai – 600 006.

https://www.mhc.tn.gov.in/judis W.P.No.27385 of 2018

S.M.SUBRAMANIAM, J.

kak

W.P.No.27385 of 2018

28.10.2022

https://www.mhc.tn.gov.in/judis

 
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