BSNL Promotion Dispute: Supreme Court Restores Employees’ Service Benefits

The Supreme Court of India recently ruled on a long-standing service matter in the case of Medini C & Ors. vs. Bharat Sanchar Nigam Limited (BSNL) & Ors.. The case revolved around the promotion of Hindi Translators and Telecom Office Assistants to the post of Assistant Director (Official Language) in BSNL. The Supreme Court set aside the Kerala High Court’s review order and restored the earlier judgment, which had directed BSNL to regularize the appellants’ promotions.

Background of the Case

The appellants were employees of BSNL, originally appointed as:

Hindi Translators
Telecom Office Assistants

During the 1990s, they were promoted as Assistant Director (Official Language) (AD-OL) on an ad hoc basis. In 2002, the Assistant Director (Official Language) Recruitment Rules, 2002 (hereinafter referred to as the “2002 Rules”) were notified, superseding all previous rules.

Under these rules, all vacancies in the AD-OL grade were to be filled through promotion of existing eligible employees. Later, in 2005, BSNL introduced the Rajbhasha Adhikari Recruitment Rules, 2005, replacing the 2002 Rules.

The dispute arose when the appellants, who had already been officiating in the AD-OL posts, sought regularization of their promotions based on the 2002 Rules.

Initial Legal Battle and Tribunal Order

The employees filed a case before the Central Administrative Tribunal (CAT), arguing that their promotions should be made regular under the 2002 Rules. The Tribunal ruled in their favor, directing BSNL to promote the appellants against vacancies that existed before the 2005 Rules were enacted.

High Court’s Judgment and Review Petition

BSNL challenged the CAT ruling before the Kerala High Court, which dismissed their plea on November 4, 2011, upholding the Tribunal’s decision.

Following this, BSNL approached the Supreme Court, but their Special Leave Petition (SLP) was dismissed. They also filed a Review Petition, which was also dismissed by the Supreme Court in 2017.

Despite multiple rejections, BSNL filed a Review Petition before the High Court, challenging its earlier judgment. The High Court reversed its 2011 order and ruled in favor of BSNL, which led the appellants to file an appeal in the Supreme Court.

Arguments by the Petitioners (Employees)

The petitioners contended that the 2002 Rules were in force when they were promoted and should govern their service conditions.
They argued that vacancies that arose before the introduction of the 2005 Rules should be filled as per the earlier rules.
The petitioners emphasized that their promotions had already been recognized and they had legitimate expectations of regularization.

Arguments by the Respondents (BSNL)

BSNL argued that the 2002 Rules were never implemented and that all promotions must be made as per the 2005 Rules.
The respondents claimed that since the 2005 Rules superseded the 2002 Rules, the appellants’ promotions could not be regularized.
They relied on the Supreme Court’s judgment in Mishri Lal & Ors. vs. BSNL, which had ruled that the 2002 Rules were never operational.

Supreme Court’s Key Observations

The Court noted that the 2002 Rules were implemented for more than three years before the 2005 Rules came into effect.
The Supreme Court ruled that the High Court misread the Mishri Lal judgment and wrongly reversed its earlier decision.
The Court held that promotions should be governed by the rules in force at the time the vacancies arose, which were the 2002 Rules.
The Court found that BSNL had recognized the appellants’ promotions under the 2002 Rules by granting them enhanced pay scales and officiating promotions.

Final Verdict

The Supreme Court allowed the appeal.
The High Court’s review order was set aside.
The Court directed BSNL to restore the appellants to their promoted positions.
BSNL was ordered to extend monetary benefits to the employees.
The employees’ applications for Voluntary Retirement Scheme (VRS) benefits were also directed to be considered.

Implications of the Judgment

This ruling has significant implications for employment and service matters:

Supremacy of Existing Rules: Promotions must be governed by the rules in force when the vacancies arose.
Judicial Finality: A review petition cannot be used to overturn a settled matter unless there is a clear legal error.
Legitimate Expectation of Employees: Employees who have served in officiating positions for years cannot be arbitrarily denied regularization.
Enforceability of Tribunal Decisions: Tribunal orders, when upheld by higher courts, must be implemented.

Conclusion

The Supreme Court’s ruling in Medini C & Ors. vs. BSNL & Ors. reaffirms the importance of following due process in employment promotions. The judgment ensures that government organizations like BSNL cannot arbitrarily revoke service benefits granted under previous rules. By restoring the employees’ service benefits and directing BSNL to process their pending VRS applications, the Court has provided a strong precedent for fair employment practices and the sanctity of judicial decisions.

Petitioner Name: Medini C & Ors..
Respondent Name: Bharat Sanchar Nigam Limited (BSNL) & Ors..
Judgment By: Justice L. Nageswara Rao, Justice B.R. Gavai, Justice B.V. Nagarathna.
Place Of Incident: Kerala.
Judgment Date: 21-09-2021.

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