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Friday, December 18, 2020

allocation of the employees of the power sector undertakings in the States of Telangana and Andhra Pradesh. The disputes arose in the wake of the division of the erstwhile State of Andhra Pradesh into two States, namely, the State of Telangana and the residuary state of Andhra Pradesh by Andhra Pradesh Reorganisation Act, 2014.

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

MISCELLANEOUS APPLICATION NO(S). 1270/2020

IN

CIVIL APPEAL NO(S). 11435/2018

TELANGANA POWER GENERATION

CORPORATION LTD. (TSGENCO) ...APPELLANT(S)


VERSUS

ANDHRA PRADESH POWER GENERATION

CORPORATION LTD. ...RESPONDENT(S)

WITH

MISCELLANEOUS APPLICATION NO(S). 1286/2020

IN

CIVIL APPEAL NO(S).11435/2018

TELANGANA POWER GENERATION

CORPORATION LTD. (TSGENCO) ...APPELLANT(S)/

 APPLICANT(S)

VERSUS

ANDHRA PRADESH POWER GENERATION

CORPORATION LTD. & ORS. ...RESPONDENT(S)

WITH

MISCELLANEOUS APPLICATION………………DIARY NO.13844/2020

IN

CIVIL APPEAL NO(S).11435/2018

TELANGANA POWER GENERATION

CORPORATION LTD. (TSGENCO) ...APPELLANT(S)/

T.N. SUDHAKARA MURTHY & ORS. APPLICANT(S)

VERSUS

ANDHRA PRADESH POWER GENERATION

CORPORATION LTD. & ORS. ...RESPONDENT(S)

1

WITH

MISCELLANEOUS APPLICATION NO(S). 1287/2020

IN

CIVIL APPEAL NO(S).11435/2018

TELANGANA POWER GENERATION

CORPORATION LTD. (TSGENCO) ...APPELLANT(S)/

APSPDCL RELIEVED EMPLOYYES APPLICANT(S)

(ALLOTTED TO TSNPDCL)

VERSUS

ANDHRA PRADESH POWER GENERATION

CORPORATION LTD. & ORS. ...RESPONDENT(S)

WITH

MISCELLANEOUS APPLICATION NO(S). 1290/2020

IN

CIVIL APPEAL NO(S).11436/2018

TRANSMISSION CORPORATION OF

TELANGANA LTD. (TSTRANSCO) ...APPELLANT(S)/

 APPLICANT(S)

VERSUS

TRANSMISSION CORPORATION OF ANDHRA

PRADESH LTD.(APTRANSCO) AND ORS. ...RESPONDENT(S)

WITH

MISCELLANEOUS APPLICATION NO(S). 1292/2020

IN

CIVIL APPEAL NO(S).11438/2018

TELANGANA SOUTHERN POWER DISTRIBUTION

CORPORATION LTD. (TSSPDCL) ...APPELLANT(S)/

 APPLICANT(S)

VERSUS

ANDHRA PRADESH SOUTHERN POWER DISTRIBUTION

CORPORATION LTD. & ORS. ...RESPONDENT(S)

2

WITH

MISCELLANEOUS APPLICATION NO(S). 1331/2020

IN

CIVIL APPEAL NO(S).11435/2018

TELANGANA POWER GENERATION

CORPORATION LTD. (TSGENCO) ...APPELLANT(S)/

 APPLICANT(S)

VERSUS

ANDHRA PRADESH POWER GENERATION

CORPORATION LTD. ` ...RESPONDENT(S)

WITH

MISCELLANEOUS APPLICATION NO(S). 1291/2020

IN

CIVIL APPEAL NO(S).11437/2018

TELANGANA STATE NORTHERN POWER

DISTRIBUTION CORPORATION LTD(TSNPDCL)...APPELLANT(S)/

 APPLICANT(S)

VERSUS

ANDHRA PRADESH SOUTHERN POWER

DISTRIBUTION COMPANY LIMITED

(APSPDCL) & ORS. ...RESPONDENT(S)

WITH

MISCELLANEOUS APPLICATION NO(S). 1289/2020

IN

CIVIL APPEAL NO(S).11435/2018

TRANSMISSION CORPORATION OF

TELANGANA LTD. (TSTRANSCO) ...APPELLANT(S)/

 APPLICANT(S)

VERSUS

TRANSMISSION CORPORATION OF ANDHRA

PRADESH LTD.(APTRANSCO) AND ORS. ...RESPONDENT(S)

3

WITH

MISCELLANEOUS APPLICATION NO(S). 1293/2020

IN

CIVIL APPEAL NO(S).11440/2018

TELANGANA ELECRICITY ENGINEERS

ASSOCIATION & ORS. ...APPELLANT(S)/

 APPLICANT(S)

VERSUS

MUDE NARSIMHULU & ORS. ...RESPONDENT(S)

WITH

MISCELLANEOUS APPLICATION………………DIARY NO.16612/2020

IN

CIVIL APPEAL NO(S).11435/2018

TELANGANA POWER GENERATION

CORPORATION LTD (TSGENCO) ...APPELLANT(S)/

ANDE JAGADISH & ORS. APPLICANT(S)

VERSUS

ANDHRA PRADESH POWER GENERATION

CORPORATION LTD. & ORS. ...RESPONDENT(S)

WITH

MISCELLANEOUS APPLICATION NO(S). 1631/2020

 IN

CIVIL APPEAL NO(S).11435/2018

TELANGANA POWER GENERATION

CORPORATION LTD (TSGENCO) ...APPELLANT(S)/

L. PRAVEENKUMAR REDDY & ORS. APPLICANT(S)

VERSUS

ANDHRA PRADESH POWER GENERATION

CORPORATION LTD. & ORS. ...RESPONDENT(S)

4

WITH

MISCELLANEOUS APPLICATION………………DIARY NO.19295/2020

IN

CIVIL APPEAL NO(S).11453/2018

TELANGANA POWER GENERATION

CORPORATION LTD (TSGENCO) & ORS. ...APPELLANT(S)/

KESANA BABU RAO & ORS. APPLICANT(S)

VERSUS

J.V.V. SURESH

KUMAR & ORS. ETC. ETC. ...RESPONDENT(S)

AND

MISCELLANEOUS APPLICATION………………DIARY NO.19982/2020

IN

CIVIL APPEAL NO(S).11453/2018

TELANGANA POWER GENERATION

CORPORATION LTD (TSGENCO) ...PETITIONER (S)

VERSUS

J.V.V. SURESH

KUMAR & ORS. ETC. ETC. ...RESPONDENT(S)/

J.V.V. SURESH KUMAR & ORS. APPLICANTS

J U D G M E N T

ASHOK BHUSHAN,J.

These Miscellaneous Applications have been filed

in Civil Appeal No.11435 of 2018 decided by this

Court vide judgment dated 28.11.2018. Civil Appeal

5

No. 11435 of 2018 was filed against the common

judgment dated 02.02.2018 passed by the High Court of

Judicature at Hyderabad for the State of Telangana

and the State of Andhra Pradesh in Writ Petition

No.17994 of 2015 and other connected writ petitions.


2. The High Court vide its judgment dated 02.02.2018

decided the bunch of writ petitions raising the

dispute pertaining to allocation of the employees of

the power sector undertakings in the States of

Telangana and Andhra Pradesh. The disputes arose in

the wake of the division of the erstwhile State of

Andhra Pradesh into two States, namely, the State of

Telangana and the residuary state of Andhra Pradesh

by Andhra Pradesh Reorganisation Act, 2014. This

Court vide its judgment dated 28.11.2018 while

upholding the judgment of the High Court with the

agreement of the learned counsel for the parties

appointed a One-Man Committee consisting of Justice

D.M. Dharmadhikari, a former Judge of this Court for

distributing the personnel between two States. After

the judgment of this Court dated 28.11.2018, One-Man

Committee proceeded to formulate the modalities for

6

distributing the personnel, prepared the reports

allocating the personnel at several stages. The

miscellaneous applications were filed in this Court

in the civil appeal in pursuance of the liberty

granted by this Court in its judgment dated

28.11.2018 permitting the parties to approach the

Court by filing an interlocutory application, if any,

clarification or further directions were required.

3. The present set of miscellaneous applications

have been filed by Telangana Power Utilities, certain

employees and employees’ associations after

submission of the concluding report dated 20.06.2020

by the One-Man Committee.

4. Before we proceed to consider the present set of

miscellaneous applications, it is necessary to notice

the genesis of dispute.

5. The Andhra Pradesh Reorganisaiton Act, 2014

(hereinafter referred to as “Act, 2014”) was enacted

by Parliament to provide for the reorganisation of

7

the existing State of Andhra Pradesh and for matters

connected therewith. By Section 3, Telangana State

was formed comprising of the territories mentioned

therein and by virtue of Section 4, the State of

Andhra Pradesh was to comprise the territories of the

existing state of Andhra Pradesh. In the present

case, we are concerned only with power utilities.

Related provision for employees of public sector

undertaking is contained in Section 82, which is to

the following effect:-

“82. Provision for employees of Public

Sector Undertakings, etc.—On and from the

appointed day, the employees of State

Public Sector Undertakings, corporations

and other autonomous bodies shall continue

to function in such undertaking,

corporation or autonomous bodies for a

period of one year and during this period

the corporate body concerned shall

determine the modalities for distributing

the personnel between the two successor

States.”

6. 02.06.2014 was notified as the appointed date

under the Andhra Pradesh Reorganisation Act, 2014.

In the United State of Andhra Pradesh, existing power

utilities where Andhra Pradesh Generation

Corporation, Andhra Pradesh Transmission Corporation

and four Power Distribution Companies described as

8

Eastern, Southern, Central and Northern DISCOMS. The

State of erstwhile Andhra Pradesh issued Government

Orders dated 29.05.2014, No.24 for Distribution

Companies, Government Order No.25 for Generation

Companies and Government Order No.26 for Transmission

Corporation whereby assets and liabilities of the

aforesaid corporations and companies were apportioned

between the two new States alongwith the posts

sanctioned for the employees working in those power

sector corporations/companies. The power utilities of

the two newly formed States could not arrive at any

consensus with regard to modalities for allocation

and distribution of personnel.

7. The power utilities of Telangana unilaterally

relieved 1157 employees working with power utilities

of Telangana to join in respective power utilities of

Andhra Pradesh. Number of employees filed writ

petitions in High Court challenging the decision of

the power utilities of Telangana. 242 employees, who

were working in power utilities of Andhra Pradesh got

themselves relieved and joined in power utilities of

Telangana. The power utilities of Telangana were

9

motivated by principle of nativity, i.e., those

employees whose service records mentioned them as

resident of any part of the residuary State of Andhra

Pradesh were relieved and those who belonged to

territory of the newly formed State of Telangana were

permitted to join at Telangana by their self-option,

against which writ petition was filed before the High

Court. The High Court by its common judgment dated

02.02.2018 allowed the writ petitions, set aside the

impugned action of power utilities of Telangana

relieving 1157 employees and issued further

directions. The High Court specifically disapproved

the principle of nativity, which was the factor for

allocation of the employees by the Telangana State

power utilities.

8. Telangana Power Generation Corporation Limited

filed Civil Appeal No. 11435/2018 questioning the

judgment of High Court. This Court upheld the order

of the High Court, however, noticing that two States

have not been able to arrive at any consensus and to

finally determine the modalities for distributing the

personnel between two States, this Court with the

10

agreement of the parties entrusted the task to OneMan Committee, i.e., Justice D.M. Dharmadhikari, a

former Judge of this Court. While ending the order

dated 28.11.20218, this Court further clearly

stated:-

“We make it clear that the decision of

the one man Committee head by Justice

Dharmadhikari shall be final and binding

on all the parties including Power Utility

Companies of the two States as well as the

employees and shall be executed by all the

parties as an order of this Court.”

9. This Court, however, while disposing the appeal

had observed that in case, any clarification or

further direction is required by any of the parties

they are entitled to approach this Court by filing

interlocutory application in the proceedings. OneMan Committee constituted a sub-Committee consisting

of two members representing one each of the power

utilities of both the States. Many employees,

individuals also appeared and filed representations

before the Committee. The Committee on 17.04.2019

had finalised XIV modalities to be adopted for

allocation of the personnel between two States in

accordance with Section 82 of the Andhra Pradesh

11

Reorganisation Act, 2014. Telangana Power Generation

Corporation Limited filed an application being M.A.

No. 851 of 2019 questioning the modalities finalised

by One-Man Committee. However, this Court did not

entertain the application. A report cited as “Final

Report of One-Man Committee” dated 26.12.2019 was

submitted by One-Man Committee. Alongwith report, a

final allocation list in the two States

corporations/companies was prepared and annexed.

List of 655 personnel, who were to go from Telangana

utilities to Andhra Pradesh utilities as submitted by

sub-Committee Members on behalf of Telangana

utilities was approved by the Hon’ble One-Man

Committee and was part of the final list. The Andhra

Pradesh utilities being felt aggrieved by the final

list communicated in the final report filed I.A. Nos.

11779/2020, 11752/2020 and 11785/2020. It was

stated by learned counsel for the applicant that they

have no grievance with regard to modalities. Their

submission was that the modalities have not been

correctly implemented and the list annexed is not in

accordance with the modalities. The applications

were disposed of by this Court on 24.01.2020. This

12

Court while disposing the applications made following

observations:-

“This Court by the final judgment

having entrusted the work of allocation to

one man committee, as agreed by parties,

the modalities finalized by one man

committee is binding on all, to which,

there is no dissension between the

parties. There being no dispute regarding

modalities, in event, there is some error

or mistake in the working of the

modalities that can be pointed out to the

same committee by means of a

representation and we hope and trust that

the committee shall look into the said

grievance and correct the error, if any.

We also make it clear that if the

representation is submitted by the

applicant, copy of the same shall be given

to the power utilities of both the Sates,

who may also have liberty to submit a

response to those representation, which

may be considered by the one man

committee. The representation be submitted

within two weeks and response thereto be

also submitted within two weeks

thereafter.”

10. After the order dated 24.01.2020, the One-Man

Committee after deliberations with all stakeholders

submitted a Supplementary Report dated 11.03.2020.

In the Supplementary Report, it was noticed that T.S.

power utilities relieved employees numbering total

655 to join A.P. power utilities. It also noted that

Telangana Power Utilities are agreeable to

13

accommodate 71 employees from Andhra Pradesh to

Telangana State companies as they are special cases

like of spouses, medical and handicapped employees or

their dependants.

11. In the Supplementary Report, the One-Man

Committee entrusted the work to the member of the

Sub-Committee representing Andhra Pradesh side, of

identification of 584 employees for allocating them

from A.P. power utilities to T.S. power utilities.

One-Man Committee also issued directions for payment

of salary for 655 employees, who were relieved from

Telangana utilities to Andhra Pradesh. One-Man

Committee directed that entire allocation process

based on the allocation lists with the Final Report

and Supplementary Report be completed by 30.03.2020.

A clarification dated 13.03.2020 was also issued by

the One-Man Committee. Aggrieved by Supplementary

Report, the Telangana power utilities filed

Miscellaneous Application No. 920 of 2020. With

regard to 584 employees, who were directed to be

identified by Sub-Committee Members of Andhra

Pradesh, this Court disposed of the application

14

observing that objections with regard to 584

employees were to be considered by One Man Committee.

On an application submitted by One-Man Committee,

this Court also passed an order for payment of salary

to the allocated employees.

12. One-Man Committee after the order of this Court

dated 01.05.2020 issued a Concluding Report dated

20.06.2020. In the Concluding Report, an allocation

list submitted by Andhra Pradesh utilities was

approved. The Committee noticed that 655 employees

have been allocated from Telangana State to Andhra

Pradesh and equal numbers from Andhra Pradesh to

Telangana including 71 names from Andhra Pradesh to

Telangana, which was held to be of special cases like

spouse and medical cases. Certain further directions

were given by the One-Man Committee in the Concluding

Report in paragraph 29 like approving the list of

Sub-Committee Members of the Andhra Pradesh. In the

Concluding Report, directions are to the following

effect:-

15

DIRECTIONS

I. In addition to the Directions

contained in Para 21 of the

Supplementary Report of this Committee

regarding retired employees on both

sides, it is further directed, that in

both the States, employees who have

attained or will be attaining 58 Years

of age in the year 2020 will be kept

out of the allocation process and

their names in the Allocation Lists

will be removed.

II. In the allocation process of the

present dimension and undertaken after

5 years delay, it is not possible for

the Committee to satisfy individual

needs and comforts and service

prospects of every employee. The

allocation process has been finalized

on laid down principles contained in

the modalities and elbow room,

wherever permissible, in the

modalities has been given effect to.

The committee however directs the Sub

Committee member of AP to re-examine

any left out spouse and medical cases

and every attempt should be made to

accommodate them in the state of their

option.

III. All SC/ST employees cases be reexamined to accommodate them as per

modality VIII in the State where they

are notified as SCs or STs so as not

to affect their future service growth.

IV. All the employees finally allocated to

a Public Utility will be paid regular

salary from January 2020 and arrears

of salary due with other benefits

attached to the posts. The payments of

16

salary partly or fully made by the

Companies in the Two States in the

interim period pending finalization of

allocation during coronavirus

pandemic, will be shared/reimbursed by

the companies in the Two States

mutually by paying and claiming

reimbursement, if necessary, for the

payments made in the interim period.

It is made clear that the entire

burden of salary and arrears of salary

for each employee would be on the

Company to which the employee is

finally allocated and the said Company

will reimburse interim payments

pending allocation made if any by the

Company to which the employee has not

been finally allocated.

V. All employees not included in the

Allocation List of AP and TS and

serving on "order to serve" basis in

the Companies on the formation of the

Two States in 2014 would be deemed to

have been allocated to the Company

where they are presently posted and

working.

VI. Based on the allocation lists, both TS

and AP utilities will issue orders of

posting and joining, with granting

sufficient time to the employees to

report for duties, keeping into

consideration the constrains on

movements in the current coronavirus

pandemic period and the consequent

lockdown imposed.

VII. All Employers of the Power Utilities

in the Two States will facilitate

smooth posting and joining of

employees in the Companies of the Two

States and the Government and the

Police Authorities of Two States will

17

cooperate and also facilitate the

movement of the employees allocated

from one Company in the State to

Company in another Slate.

VIII. The allocation finally made by

this committee is binding on both the

employers and the employees and any

violation thereof and non

implementation of said allocation be

reported to Supreme Court for

remedial/Punitive action.”

13. After the Concluding Report dated 20.06.2020, a

member of the Sub-Committee of Andhra Pradesh power

utilities sent a letter dated 26.06.2020 as

compliance report. By the said letter, 119

employees, who were dropped from the list of incoming

employees from Telangana State power utilities to

Andhra Pradesh power utilities and further 50 names

were dropped of employees in outgoing list of

employees from Andhra Pradesh power utilities to

Telangana State power utilities and 10 further

employees were relieved from Andhra Pradesh power

utilities for the reasons mentioned therein.

14. After the submission of the Concluding Report and

follow-up action taken by the Andhra Pradesh power

18

utilities, this group of miscellaneous applications

have been filed. The miscellaneous applications have

been filed by Telangana State power utilities, by

several employees as well as employees’ associations

in M.A. No. 1286/2020 filed by Telangana State Power

Generation Corporation Ltd., a common counter

affidavit has been filed by Andhra Pradesh power

utilities. The M.A. No. 1286 of 2020 as well as

counter affidavit and rejoinder affidavit filed

therein shall be referred to while deciding these

batch of miscellaneous applications.

15. We may now briefly notice prayers made in

different Miscellaneous Applications placed before us

for consideration:-

M.A. No.1270/2020

M.A. No. 1270 of 2020 is a miscellaneous

application which was registered by Court’s Motion on

Concluding Report dated 20.06.2020 sent by One-Man

Committee to this Court.

19

M.A. DIARY NO.13844/2020

This M.A. Diary has been filed by T.N. Sudhakara

Murthy and 32 others seeking a direction to A.P. and

T.S. utilities not to give effect to direction No.I

of the Concluding Report dated 20.06.2020. They seek

direction to A.P. power utilities to retain the

applicants as per their options.

M.A. NO.1286/2020

M.A. No.1286 of 2020 has been filed by Telangana

State Power Generation Corporation Ltd. The M.A.

questions the Concluding Report dated 20.06.2020

submitted by One-Man Committee. In the M.A.

following prayers have been made:-

“a) Clarify that the Concluding Report

dated 20-06-2020 submitted by the Hon’ble

One-Man Committee is illegal and

arbitrary, being contrary to the Orders

passed by this Hon’ble court and the Final

Report dated 26-12-2019 submitted by the

Hon’ble One-Man Committee.

b) Confirm the allocation of 1157

employees and 242 employees made by the

Hon'ble One-Man Committee as per Final

Report dt. 26-12-2018, (i.e., the

Allocation of 744 (502 +242) to TS Power

Utilities and 655 from TS to AP Power

utilities), as Final in terms of the Order

20

dt. 28.11.2018 passed in present Civil

Appeal.

c) Clarify that the allocation of 4460 and

71 employees (4531) to TS Power Utilities

vide Final Report dt. 26.12.2019 and

Supplementary Report dt. 11.03.2020, is

final and no further allocation to TS

Power Utilities is Permissible.

d) Clarify that the Supplementary Report

in so far as Para No.27, authorizing the

Member, Sub-committee of AP to

unilaterally identify and allocate 584

employees to TS Power Utilities is

contrary to the orders dated 28-11-2018 in

Civil Appeal No.11435/2018.

e) Clarify the orders dated 28-11-2018 in

Civil Appeal No. 11435 of 2018 passed by

this Hon'bIe Court; and

f) Pass such other or further order(s) as

may be deemed fit and appropriate by this

Hon’ble Court in the facts and

circumstances of the present case.”

M.A. NO.1287/2020

This M.A. has been filed by APSPDCL relieved

employees (allotted to TSNPDCL). The applicants

claimed to be permanent employees of Andhra Pradesh

Southern Power Distribution Company now allocated to

Telangana State Northern Power Distribution Company

Ltd. The applicants question their allotment to

TSNPDCL. The applicants case is that they were not

included in the employees allocated by Final Report

21

dated 26.12.2019. Their names have suddenly come in

Concluding Report for allocation. The applicants

claimed that allocation of employees of APSPDCL

working in Kurnool and Ananthapur Districts were to

be finally allocated in terms of G.O. No.24 dated

29.05.2014 and they ought not to have been made part

of the allocation to Telangana power utilities. The

applicants prayed that their allocation to TSNPDCL be

cancelled. They prayed that letter dated 26.06.2020

submitted by APSPDCL to One-Man Committee and

approved by One-Man Committee by Concluding Report

dated 20.06.2020 be got recalled and rescinded.

M.A. NO. 1290/2020

This M.A. has been filed by Transmission

Corporation of Telangana Ltd. The prayers made in

the application are similar to those made in M.A.

No.1286 of 2020.

M.A. NO. 1292/2020

This M.A. has been filed by Telangana Southern

Power Distribution Corporation Ltd. (TSSPDCL). The

22

prayers made in this M.A. are similar to those made

in M.A. No. 1286 of 2020.

M.A. NO. 1331/2020

This M.A. has been filed by the Telangana Power

Generation Corporation Ltd. (TSGENCO). The prayers

made in the application are similar to prayers made

in M.A. No.1286 of 2020.

M.A. NO. 1291/2020

This M.A. has been filed by Telangana State

Northern Power Distribution Corporation Ltd.

(TSNPDCL). The prayers made in the application are

similar as made in M.A. No.1286 of 2020.

M.A. NO. 1289/2020

This M.A. has been filed by Transmission

Corporation of Telangana Ltd. (TSTRANSCO). The

applicants’ case is that they have been working

throughout in the residuary State of Andhra Pradesh.

The applicants’ names have been included in the list

of 584 employees allocated by Andhra Pradesh power

utilities to be allocated to Telangana power

23

utilities. In pursuance of the Supplementary Report,

the applicants claimed to be relieved w.e.f.

14.03.2020 but were not permitted to join by

Telangana power utilities. The list of 584 employees

submitted by Andhra Pradesh power utilities have been

approved by One-Man Committee in the Concluding

Report dated 20.06.2020. The applicants prayed that

Supplementary report and Concluding Report be

modified and revised directing the respondents to

accommodate the applicants in Andhra Pradesh power

utilities.

M.A. NO. 1293/2020

This M.A. has been filed by Telangana Electricity

Engineers Association & Ors. The applicants take

exception to the Concluding Report of the One-Man

Committee. The applicants prayed that allocation be

restricted till Supplementary Report only by

rejecting the Concluding Report. In the M.A.

applicants prayed for confirmation of allocation of

1157 employees and 242 employees made by One-Man

Committee Report dated 26.12.2019. The applicants

also had pleaded that the Final Report, Supplementary

24

Report and Concluding Report are contradictory to

each other and are irreconcilable to the extent it

goes beyond 1157 employees.

M.A.DIARY NO. 16612/2020

This M.A. Diary has been filed by Ande Jagdish

and three other Engineers seeking a direction to

TSTRANSCO and APTRANSCO to pay pension/salary to the

applicants. The applicants seek direction to

implement the Concluding Report dated 20.06.2020 of

the One-Man Committee. The applicant also prays for

being impleaded in Civil Appeal No.11435/2018.

M.A. NO. 1631/2020

This M.A. has been filed by L. Praveenkumar Reddy

and seven other Engineers praying for a direction to

Andhra Pradesh and Telangana State utilities not to

give effect the direction No.I of the Concluding

Report submitted by One-Man Committee. The

applicants also prayed for a direction to A.P. power

utilities to retain the applicants as per their

options.

25

 M.A. DIARY NO.19295/2020

This M.A. Diary No.19295 of 2020 has been filed

by Kesana Babu Rao & 36 Ors., who claimed to be

employees continued in services on the rolls of

TSGENCO till 04.01.2020 where after they were

relieved in pursuance of Final Report dated

26.12.2019 of the One-Man Committee. The applicants

claimed that they have been denied payment of certain

amounts like SGP Increments, Annual Increments,

Generation Incentives, House Rent Allowance,

Conveyance allowance, Promotions and Promotion

increments, 24x7 power supply increments etc. The

applicants claimed that their further re-allotment,

who presently stand allotted to Andhra Pradesh Power

Generation Corporation Limited as per the Final

Report dated 26.12.2019, the Supplementary Report

dated 11.03.2020 and the Concluding Report dated

20.06.2020 of the One-Man Committee.

M.A. DIARY NO.19982/2020

26

This application has been filed by J.V.V. Suresh

Kumar and Others seeking similar prayers as made in

M.A. Diary No.19295 of 2020.


16. We have heard Shri Mukul Rohtagi, Shri Rakesh

Dwivedi, Shri V. Giri, Shri Ranjit Kumar, learned

senior counsel appearing for the Telangana State

power utilities. Shri Neeraj Kishan Kaul, learned

senior counsel has appeared on behalf of Andhra

Pradesh power utilities. Shri Dushyant Dave, learned

senior counsel has appeared for Telangana Electricity

Engineers Association. We have also heard Shri R.

Balasubramanian and Shri P.V. Surendranath, learned

senior counsel. Shri Ravi Shankar Jindhiyala and

other learned counsel appearing for the parties.

17. We now proceed to notice the submissions advanced

by learned senior counsel appearing for Telangana

power utilities. It is submitted that under the

judgment of this Court dated 28.11.2018 in Civil

Appeal No.11435/2018, One-Man Committee had to

confine the allocation to 1157 employees only. In

the Final Report dated 26.12.2019, out of 1157

27

employees, 655 were allocated to Andhra Pradesh power

utilities and 502 to Telangana State power utilities

and after allocation, no further steps were required

to be taken by One-Man Committee regarding further

allocation. The One-Man Committee has exceeded the

mandate of this Court vide order dated 24.01.2020 and

substantially expanded the exercise of allocation of

employees by giving completely go-bye to Final Report

dated 26.12.2019 and modalities finalised. The ratio

of 3552:2550 as given in the Concluding Report with

regard to employees of Andhra Pradesh power utilities

and Telangana power utilities respectively is not

prescribed by Government Order Nos. 24, 25 and 26

except in respect of headquarter posts. The number

of total employees, i.e., 6102 as mentioned in the

Concluding Report is erroneous. The figure of 6102

employees does not take into account the employees

working in two distribution companies of Telangana,

i.e., TSSPDCL and TSNPDCL. The Telangana State power

utilities were already allocated 502 out of

1157+242+71 employees as per Supplementary Report and

addition of further 584 employees as per the

Concluding Report is excessive and uncalled for. The

28

Concluding Report of the One-Man Committee has given

a complete go-bye to the modalities, which were

formulated and approved by this Court. One-Man

Committee erred in accepting the stand of Andhra

Pradesh power utilities that allocation of 655

employees proposed by Telangana State power utilities

should be on a condition of reciprocity by the

Telangana State utilities in accepting equal number

of 655 employees from Andhra Pradesh power utilities.

Reciprocity was not prescribed in the modalities

given by One-Man Committee as approved by this Court.

One-Man Committee erred in deviating from modalities

by issuing the Concluding Report and allocation of

employees as per principle of “financial neutrality”

and “balancing of employees”. The direction given in

the Supplementary Report was to identify 584

employees out of 2165 among those who fulfil the

modality No.V alone. In the list of 584 employees

proposed by Andhra Pradesh power utilities, there are

only 170 employees, who are from the list of 2165

employees. The selection of 584 employees, thus, was

beyond list of 2165, which was contrary to the

Supplementary Report itself. Even the Concluding

29

Report is not final and was an open-ended report. As

per the Concluding Report, direction was given to

Sub-Committee Member of the Andhra Pradesh to further

delete the names as per direction Nos.I, II and III

and in fact after the Concluding Report dated

20.06.2020 Sub-Committee Member from Andhra Pradesh

has released another list on 26.06.2020 by deleting

119 employees from the list of 655 employees

allocated to Andhra Pradesh and deleted 50 employees

out of 484 list of employees and further added 10

more employees to be allocated to Telangana State on

spouse ground. The report dated 20.06.2020, thus,

was not even a final report and finality of the

allocation was permitted to be unsettled by A.P.

power utilities. The allocation exercise as per the

Concluding Report dated 20.06.2020 is arbitrary being

contrary to the orders of this Court and also

contrary to the modalities framed by One-Man

Committee and the earlier reports, i.e., Final Report

dated 26.12.2019 and Supplementary Report dated

11.03.2020. It is further submitted by learned

senior counsel that the Telangana State is both

geographically as well as on population basis smaller

30

State as compared to residuary State of Andhra

Pradesh. Against allocation of 655 employees to the

Andhra Pradesh power utilities, from Andhra Pradesh

power utilities to Telangana State power utilities

502+242+71+584 = 1399 employees have been allocated.

Learned senior counsel for the applicants referring

to figures as given in M.A. No. 1286/2020 in

paragraph (e) and (f) submits that post allocation,

total number of employees in Telangana State power

utilities are 5115 whereas in Andhra Pradesh power

utilities was only 3552.

18. Shri Neeraj Kishan Kaul, learned senior counsel

appearing for Andhra Pradesh power utilities refuting

the submissions of the learned counsel for the

applicants contends that the Concluding Report

submitted by One-Man Committee is not beyond the

remit of this Court. One-Man Committee has not gone

beyond the orders of this Court. One-Man Committee

has prepared a Supplementary Report as well as

Concluding Report taking into consideration all

modalities finalised by the One-Man Committee. It is

submitted that Government Order Nos. 24, 25 and 26

31

dated 29.05.2014 were not subject matter of challenge

either before the High Court or this Court and all

the parties had agreed to abide by the said

Government Orders. In terms of Government Orders,

ratio of employees of Telangana State and Andhra

Pradesh is 2550:3552. The figures given by

applicants in their M.A. No.1286/2020 in paragraphs

(e) and (f) are the figures, which are not correct

and have never been placed before the One-Man

Committee. The applicants are endeavouring to re-open

all issues of allocation by means of this M.A.

whereas under the orders of this Court dated

28.11.2018, the report of One-Man Committee was

binding on both the power utilities. The Telangana

State power utilities by one or other means right

from very beginning have been harping only on

principle of nativity, which was specifically

disapproved by the High Court. The submission of the

applicant that the allocation exercise was to confine

only to 1157 employees is not correct. Although, it

is true that before the High Court, the challenge was

to the unilaterally relieved 1157 by Telangana State

power utilities and this Court in its judgment dated

32

28.11.2018 has also observed that One-Man Committee

would determine the modalities for distributing the

personnel, i.e., the aforesaid 1157 employees. This

Court has clarified that in case dispute persists in

respect of other employees of these Power Utility

Companies to the two States, it would be open to the

respective States/Power Utility Companies to bring

the same before the said Committee. It is, thus,

clear that the remit of the One-Man Committee was not

confined to 1157 employees only. In view of the

dispute submitted before the One-Man Committee, the

allocation of all allocated employees was open for

consideration. Shri Kaul submits that population

ratio has to be basis of allocation. He has referred

to Section 2(h) and Section 53 of the Andhra Pradesh

Reorganisation Act, 2014. It is further submitted

that three Government Order Nos.24, 25 and 26 dated

29.05.2014 referred to population ratio, hence, the

said ratio could not have been ignored while

allocating. It is submitted that the Andhra Pradesh

power utilities had not raised any objection with

regard to modalities formulated by the One-Man

Committee. The entire dispute arose out of

33

unilaterally relieving of 1157 employees by Telangana

State power utilities to Andhra Pradesh power

utilities on the basis of nativity, which action was

struck down by the High Court and confirmed by this

Court. It is submitted that while submitting Final

Report dated 26.12.2019, One-Man Committee had only

approved list of 655 employees submitted by Telangana

State power utilities to be allocated to Andhra

Pradesh power utilities but no reciprocal allocation

from Andhra Pradesh power utilities to Telangana

power utilities was undertaken. At that stage, Andhra

Pradesh power utilities had come before this Court by

filing M.A. and this Court on 24.01.2020 permitted

the parties to go back to the One-Man Committee to

represent for correction of errors. Supplementary

Report dated 11.03.2020 was given to correct the

balance. The Sub-Committee Members of Andhra Pradesh

was entrusted to select 584 names to be allocated to

Telangana State power utilities, since Telangana

State Power Utilities has already agreed to accept 71

cases relating to spouse and medical grounds. Thus,

total allocation contemplated from Andhra Pradesh

power utilities to Telangana State power utilities

34

was 655, i.e., 71+584. It is submitted that the case

of the applicant that out of 1157 employees 502 were

allocated to Telangana State power utilities and 655

to Andhra Pradesh power utilities is without any

basis. When a list of 1157 employees unilaterally

relieved by Telangana State power utilities was

struck down by the High Court, all those 1157

continued to be part of Telangana State power

utilities, only allocation was of 655 by Final Report

from Telangana State power utilities to Andhra

Pradesh power utilities. The figure of 502 is

unnecessary being claimed and pressed by applicants

to confuse the issue. Further, 242 employees were

also not covered by any part of allocation by One-Man

Committee. 242 is number where employees working in

Andhra Pradesh power utilities, who got them selfrelieved and joined Telangana State power utilities

on their own. Telangana State power utilities had

accepted joining of 242 self-relieved employees, it

is their burden to shoulder. The allocation, which

has been finalised by One-Man Committee is those of

655 from Telangana State power utilities to Andhra

Pradesh power utilities and 655 from Andhra Pradesh

35

power utilities to Telangana State power utilities.

Members of Sub-Committee of Andhra Pradesh power

utilities were rightly asked to submit a list of 584

members, which are proposed to be allocated to

Telangana State power utilities, since 71 out of 655

were already accepted by Telangana. The submission

that 484 are not from the list of 2165 has also been

dealt with by One-Man Committee in the Final Report.

Selection of 584 from Andhra Pradesh power utilities

to Telangana State power utilities were not to be

based on only nativity whereas list of 2165, which

was placed before One-Man Committee was the list of

those employees, who had indicated their hometown as

territory of Telangana State. Modality (V), which

requires the consideration of option of employees for

adjusting them in the State in which their home

district falls as far as possible. There was no

mandate in the modalities or under law to allocate

employees to his/their home district. All modalities

including the option and seniority were to be

considered while finalising the allocation. The list

of 655 employees was earlier submitted by Telangana

State power utilities and approved by One-Man

36

Committee in Final Report dated 26.12.2019. The

Andhra Pradesh power utilities were also entitled to

select 655 to be sent to Telangana State power

utilities. After the Concluding Report dated

20.06.2020, further deletion and addition from the

two lists was consequential in pursuance of direction

Nos. I and II. With regard to direction No.III,

there was no addition or subtraction. Direction Nos.

I and II were issued by One-Man Committee in the ends

of justice to adjust the equities for which no

exception can be taken by the applicants. In the

Supplementary Report in paragraph 21, it was already

noticed that parties have agreed that all retired

employees between years 2014 to 2020 in each power

utility in each State need not be displaced only for

pensioner benefits payable to them. The direction

No.I was in accord to the aforesaid agreement between

the parties with only modification that the aforesaid

direction has been extended to employees, who are

going to retire on 31.12.2020. The above direction

protects the financial interest of both the States as

well as the employees. One-Man Committee, which has

been empowered to take a final decision regarding

37

allocation was fully entitled to seek any further

direction looking to the fact that the allocation

process has taken considerable time and some further

adjustments were required to be made by the One-Man

Committee.

19. Shri Dushyant Dave, learned senior counsel

appearing for the Telangana Electricity Engineers

Association submits that One-Man Committee has

travelled outside the limits of both the Concluding

Report and Supplementary Report and are not correct.

It is submitted that allocation in Telangana State

power utilities being excessive the prospect of

promotion of Engineers working in Telangana are

affected. The Telangana State power utilities have

been over burdened with a large number of employees,

which is contrary to the spirit of Andhra Pradesh

Reorganisation Act, 2014 and prospect from the

employees hailing from the Telangana is affected.

20. Shri Balasubramanian, learned senior counsel

appearing for APSPDCL relieved employees contends

that the distribution business of Anantapur and

38

Kurnool Districts of erstwhile Andhra Pradesh Central

Power Distribution Company Ltd. was merged with

Andhra Pradesh Southern Power Distribution

Corporation Ltd. by G.O. No.24 dated 29.05.2014 and

in fact those employees were not subject to any

further allocation. He submits that the names of the

applicants were not included in the Final Report

dated 26.12.2019 but now it has come in the

Supplementary Report and the Concluding Report, which

deserves to be set aside.

21. Shri P.V. Surendranath, learned senior counsel

submits that One-Man Committee has not taken into

consideration the judgment of this Court in Telangana

Judges Association Vs. Union of India, (2018) SCC

Online SC 1729, which was referred to by this Court

in its judgment dated 28.11.2018 deciding the Civil

Appeal No.11435/2018. He further submits that in

Supplementary Report modalities earlier finalised

have been obliterated.

22. Shri Ravi Shankar Jindhiyala, learned counsel

appearing in M.A. Diary No. 13844 of 2020 submits

39

that the applicants are senior most employees and

they were relieved from Telangana State power

utilities to Andhra Pradesh power utilities, they are

not being paid salary citing direction No. I of

Concluding Report dated 20.06.2020.

23. We have considered the submissions of the learned

counsel for the parties and have perused the records.

24. Before we enter into the submissions of learned

counsel for the parties, it is necessary to consider

the scope of these miscellaneous applications qua the

One-Man Committee’s Report. In order dated

28.11.2018 passed by this Court appointing One Man’s

Committee, this Court made clear that decision of the

One-Man Committee shall be final and binding on the

all the parties including Power Utility Companies of

the two States. relevant part of the order is as

follows:-

“We make it clear that the decision of

the one man Committee head by Justice

Dharmadhikari shall be final and binding

on all the parties including Power Utility

Companies of the two States as well as the

40

employees and shall be executed by all the

parties as an order of this Court.”

25. While disposing of the appeal, this Court,

however, made following observations:-

“However, in case, any clarification or

further direction is required by any of

the parties they are entitled to approach

this Court by filing interlocutory

application in these proceedings.”

26. The liberty granted to parties to seek

clarification or further direction was with object to

complete the process of distributing the personnel

between two States. There was no right of appeal

given to any of the parties or any officer or

employee against the report of One-Man Committee.

The power utilities of both the States having not

been able to arrive at any consensus to finally

determine the modalities to distribute the personnel

between two States, this Court constituted One-Man

Committee to decide the dispute. When this Court

clearly directed as noted above that decision of OneMan Committee shall be final and binding on all the

parties including power utility companies as well as

the employees, the decision of the One-Man Committee

41

has to be given due weight and cannot be lightly

interfered with. The scope of these miscellaneous

applications is, thus, very limited and by these

miscellaneous applications, the power utilities of

both the States cannot be allowed to seek reexamination of various issues, which were raised

before One-Man Committee.

27. As noted above, it is Section 82 of the Andhra

Pradesh Reorganisation Act, 2014, which deals with

employees of public sector undertaking. The key

words in Section 82 are “the corporate body concerned

shall determine the modalities for distributing the

personnel between the two successor States”. The

High Court in its impugned judgment dated 02.02.2018

while answering point No.2 framed by the High Court

had observed in paragraph 51:-

“51. For the foregoing reasons, we hold

point No.1 in the negative and against the

Telangana State Government and the

Telangana State power utilities. Under

point No.2, we hold that the phrase

“corporate body concerned” shall be read

as “corporate bodies concerned” and the

words “between the two successor States”

have to be construed as “two successor

corporations/companies.”

42

28. Thus, as per the statutory Scheme delineated by

Section 82, the power utilities themselves were

contemplated to determine the modalities for

distributing the personnel between two successor

corporations/companies. It was due to failure of

power utilities of both the States to arrive at a

consensus and after unilateral decision of power

utilities of Telangana to relieve 1157 employees from

Telangana to Andhra Pradesh merely on the ground of

nativity, the litigation started in the High Court by

filing various writ petitions. The reference of three

Government Orders, which were issued by erstwhile

State of Andhra Pradesh on 29.05.2014, which has been

referred to and relied by One-Man Committee also need

to be noted. Government Order No. 24 dated

29.05.2014 was issued by Government of Andhra

Pradesh, which Government Order states:-

“ENERGY (CC) DEPARTMENT

G.O.Ms.No. 24. Dated: 29-05-2014

As the two districts of Ananthapur and

Kurnool fall within the residual state of

AP, in accordance with Schedule XII of

Andhra Pradesh Reorganization Act 2014, it

is necessary to reassign the distribution

business of these two districts to the

43

present APSPDCL from APCPDCL. The assets

and liabilities shall be reassigned to

APSPDCL as per the Section 53 of the Act.

To facilitate the reassignment of the

distribution business of the two districts

of Ananthapur and Kurnool to APSPDCL as

per the Act, following guidelines are

issued.

I. Effective Date/Appointed Date: The

Effective/Appointed date for transfer

of the business is 02.06.2014.

II. Employees: All the employees working

in Kurnool and Ananthapur circles on

the appointed day will continue to

work in the same places till the final

allotment of employees to the

respective DISCOMS is completed in

accordance with guidelines to be

issued by government separately in

this regard. Their salaries will be

paid by APCPDCL and reimbursed by

APSPDCL on monthly basis till the

final allotment is completed.

Provisional allocation of staff will

be done as per State Government

guidelines.”

29. Another Government Order being G.O. No.25 dated

29.05.2014 was issued for allocation of AP GENCO for

Telangana, the posts and staff to be transferred to

the newly created Telangana GENCO was to be in

accordance with the Guidelines contained therein.

All sanctioned posts for Telangana Region Projects

located in Telangana State shall stand transferred to

Telangana GENCO w.e.f. effective date. Paragraph 6

44

of the Government Order dealt with allocation of

sanctioned technical posts at Head Quarters and

allocation of sanctioned common services posts at

Head Quarters. Another Government Order No.26 dated

29.05.2014 was issued containing Guidelines on

separate creation of TRANSCO for Telangana State. In

paragraph 5 of the Government Order, which deals with

transfer of posts to TG TRANSCO, following was

stated:-

“5.Transfer of posts to TG TRANSCO: All

the posts related to District, Field and

Zonal offices including Central Training

Institute at Hyderabad located in

Telangana State shall stand transferred to

TG TRANSCO with effect from Effective

date. Posts at AP TRANSCO Head Quarter

shall be divided between two Transcos

based on population ratio of respective

state. Based on this principle, head

quarter posts transferred to TG TRANSCO is

listed in Annexure- C.”

30. The above three Government Orders, which were

issued with regard to these power distribution

companies, generation and transmission were relevant

for the subject. There was no challenge to the

aforesaid Government Orders either before the High

Court or before this Court. In paragraph 39 of the

45

judgment of the High Court, following was observed by

the High Court:-

“39. A doubt would arise as to when the

State Government has no power for

distribution of the personnel between the

two successor bodies, whether it has the

power to distribute the posts. Neither of

the successor States nor the successor

power utilities have challenged the

validity of these G.Os., allocating the

posts among the successor power utilities.

Even during the hearing, neither of the

two Advocates General has either taken the

stand that there was no allocation of the

posts, nor advanced any submission against

such allocation. Therefore, there could be

no impediment for the allocation of the

employees based on the allocation of the

posts made in the aforementioned G.Os. In

the alternative, if the joint committee of

the power utilities feel that amendments

or adjustments to the allocation of posts

made under the aforementioned three GOs

are necessary, they shall be free to do so

based on the consensus.”

31. As noted above, the judgment of the High Court

was upheld by this Court in its judgment dated

28.11.2018. Now, we need to notice the modalities,

which were finalised by One-Man Committee. on

17.04.2019, final modalities to the following effect

were finalised by One-Man Committee:-

“(I) All Identifiable allocable employees.

46

I. All State Cadre Employees of

the rank of Assistant Engineer

and equivalent post and above.

II. All posts at the Head Quarters

of APEGENCO, APTRANSCO and D!

SCOMs falling within the

territory of the two States

are allocable.

(II) All identified allocable employees in

Power utilities of united Andhra

Pradesh (including 1157 unilaterally

relieved by Telangana + 229

unilaterally allowed to join by

Telangana) will be considered for

final allocation to the new States of

Andhra Pradesh and Telangana on "as

is where is basis" on the appointed

day on 2.6.2014 in accordance with

the provisions of Section 82 of the

Act of 2014.

(III) The allocation of employees to the

two new States would be Power

Utility-wise (i.e GENCO, TRANSCO and

DISCOMs) in proportion to the posts

sanctioned in each Power Utility and

in accordance with G.O.Ms No. 24 for

DISCOMs and G.OMs No.25 for GENCO and

G.O.Ms No.26 for TRANSCO issued by

Energy (CC Department) of Govcrn1ncnt

of Andhra Pradesh under section 53 of

the Act of 2014.

(IV) The allocable employees will have

liberty to give options in the

prescribed form Annexed to the

present modalities. However, the

employees who have already exercised

options, will not be allowed again to

sub1nit options for a different place

or location in any of the two States.

The opportunity of submitting option

in the prescribed form would be

47

available only to such employees who

have not submitted their options

earlier.

(V) The allocable employees would, as far

as possible, after consideration of

their options be adjusted in the

State in which their Home District

falls as per the information

contained in their service records

and obtained from them through the

information available and provided by

them in their written

representations.

(VI) The Provisional Allocation list after

preparation will be displayed on the

Notice Board of the Head Quarters of

each Power Utility and also put on

the website and other electronic

sites for information of the

employees. The employees may take up

their written representations within

three weeks from the date of the

optics for proposed allocation.

(VII) Representations of the employees in

respect of proposed allocation shall

be duly considered by Two Member Sub

Committee comprising One Member each

of the Power Utilities within the

area of AP and TS. After considering

the representations of the employees

by the Sub Con1n1ittce, the proposed

Allocation List will be submitted to

the One Man Committee.

(VIII) The employees of the category of

SCs and STs shall as far as possible,

be allotted to the appropriate

·company in the State in which the

concerned SC or ST employee is

notified as such in accordance with

the Constitutional Provisions.

48

(IX) Case of alleviation of extreme

personal hardship of State Government

employees will be exceptions to the

principle. It would be open to

Committee to consider the

representation or request of

allocation on case to case basis.

(X) Widowed Female employees legally

separated and divorced women

employees will be considered for

allocation to the State, basing on

their request for allotment. It would

be open to the committee to consider

the representation or request of

allocation on case to case basis.

(XI) Handicapped persons of more than 60%

disability may be allocated on the

basis of option, subject to the

procedure prescribed by the State

Government. It would be open to the

con11nittee to consider the

representations or request of

allocation on case to case basis.

(XII) An employee of whose spouse or child

is known to be facing serious medical

hardship, like in cases of cancer,

open heart bypass, and kidney

transplant/kidney failure dependent

on dialysis or mentally challenged,

shall be considered for allotment on

special grounds on the basis of

request of allotment, subject to

strict proof of verification as per

the procedure prescribed by the State

Government. It would be open to the

committee to consider the

representation or request of

allocation on case to case basis.

(XIII) In spouse cases, where the employee

of the Spouse working in State

Government, Central Government, State

49

Government institutions, Local

Bodies, the following guidelines may

be adopted. It would be open to the

Committee to consider the

representation or request of

allocation on case to case basis.

(I) Allocation of both spouses

may be considered for the

state to which both of them

are native.

(II) In case where one of them is

working in State Power

Utilities and other is

working 1n PSU /Defence

Organizations/ Railways/

Banking and Insurance

Sectors/Central Government/

State Government, the said

cases may be considered on

case to case basis.

(III) Spouses who belong to

different States (AP /TS)

may be allocated together

as per their request to one

State.

(XIV) All the employees who have retired/

died after the Appointed Day and the

pensioners shall be allotted as per

the above formulated modalities.”

32. The modality No.(III) as above provides that the

allocation of employees to the two new States would

be Power Utility-wise in proportion to the posts

sanctioned in each Power Utility and in accordance

with G.O.Ms Nos. 24, 25 and 26. The modality No.(IV)

50

provided for a liberty to allocable employees to give

options in the prescribed form. Modality NO.(II)

also contemplate that all identified allocable

employees in Power utilities of united Andhra Pradesh

will be considered for final allocation to the new

States of Andhra Pradesh and Telangana on "as is

where is basis" on the appointed day on 2.6.2014.

The One-Man Committee had also constituted a SubCommittee consisting of one representative of power

utilities of Andhra Pradesh and one representative of

power utilities of Telangana to assist One-Man

Committee in finalising the distribution. After

framing of the modalities, One-Man Committee

proceeded with the task. The member of Sub-Committee

of Telangana utilities had submitted a list of 655

employees out of 1157 earlier unilaterally relieved

by Telangana power utilities to be allocated to

Andhra Pradesh utilities. One-Man Committee submitted

a Final Report dated 26.12.2019 alongwith which final

allocation list for the two States’

corporations/companies wise was annexed. The list of

655 employees, which was proposed by Sub-Committee

Member of Telangana was approved to be allocated to

51

different power utilities of Andhra Pradesh. The

Andhra Pradesh Power Generation Corporation Ltd.

filed application being M.A. No.60 of 2020 in this

Court seeking certain direction with regard to Final

Report dated 26.12.2019, copy of M.A. No.60 of 2020

has been brought on record as Annexure R-10 to the

common counter affidavit filed on behalf of

respondent. One of the issues raised in the

application was that although One-Man committee has

approved the list of 655 employees allocating them to

Andhra Pradesh power utilities but no allocation was

made in respect of 3517 allocable employees working

on order to serve basis in Andhra Pradesh power

utilities. In paragraph 4c, d and e following has

been pleaded:-

“c. That the names of the 3517 state cadre

allocable employees working in AP Power

utilities are not found any mention in the

final report dated 26-12-2019.

d. Moreover, an additional 655 employees

were unlawfully thrust upon the AP power

utilities over and above the allocable

posts available with AP power utilities.

e. That because of the above omission,

there is an inward transfer of additional

655 employees from Telangana to AP over

and above the 3517 employees, who are

already working on order to serve basis

52

and there is no outward transfer of any

employees from AP to Telangana. the

obvious result is that instead of the

allocation of all 6102 allocable employees

in percentages between the two States as

given in the GO Ms. 24, 25 and 26, the

ratio has now skewed more towards AP

because of the proposed inward transfer.

In other words, AP is being forced to

absorb in excess of the allocable posts

mandated by the Reorganisation Act as well

as the binding G.O.s.”

33. M.A. No. 60 of 2020 was disposed of by this Court

by order dated 24.01.2020 where this Court made

following observations:-

“This Court by the final judgment

having entrusted the work of allocation to

one man committee, as agreed by parties,

the modalities finalized by one man

committee is binding on all, to which,

there is no dissension between the

parties. There being no dispute regarding

modalities, in event, there is some error

or mistake in the working of the

modalities that can be pointed out to the

same committee by means of a

representation and we hope and trust that

the committee shall look into the said

grievance and correct the error, if any.

We also make it clear that if the

representation is submitted by the

applicant, copy of the same shall be given

to the power utilities of both the Sates,

who may also have liberty to submit a

response to those representation, which

may be considered by the one man

committee. The representation be submitted

within two weeks and response thereto be

also submitted within two weeks

thereafter.”

53

34. After the order dated 24.01.2020, One-Man

Committee heard the Andhra Pradesh power utilities,

which made a representation to One-Man Committee to

rectify the list. A reply was also submitted by

Telangana State power utilities. On 23.02.2020, the

One-Man Committee held a meeting for consideration of

the representation. In pursuance of the

deliberations, T.S. power utilities submitted their

proposals for accommodating 71 employees on spouse

and medical grounds. on 11.03.2020, One-Man

Committee issued a Supplementary Report. In the

Supplementary Report, One –Man Committee noted that

655 employees, who were allocated from T.S. power

utilities to A.P. power utilities have already been

relieved. One-Man Committee has further observed

that to complete the allocation process

comprehensively by including all allocable employees

alongwith 1157 ex-parte relieved, a separate exercise

has been undertaken. One-Man Committee noted that

with regard to 71 employees from A.P. power utilities

to Telangana State power utilities both the parties

have agreed and the list of 71 employees was annexed

54

alongwith the Report. Paragraphs 21, 22, 23 and 27

of the Supplementary Report, which are relevant, are

to the following effect:-

“21. It was also agreed by the Parties

that all retired employees between years

2014 to 2020 in each Power Utility in each

State need not be displaced only for

pensioner benefits payable to them.

22. On the basis of the Allocation Lists

proposed by AP Power Utilities, the

present Committee has identified and

listed in Annexed lists with the present

Supplementary Report, total 2165 employees

which include 1157 earlier relieved and

were working on the side of Telangana on

the basis of the stay orders of the High

Court and Hon’ble Supreme Court. Those

employees continued to serve in TS

Companies on the basis of the order of the

Court. Out of above mentioned 1157 the

employees, numbering 655 have been

relieved by TS for AP Companies who are

awaiting joining, posting and payments of

their salaries.

23. The present Committee in the lists

annexed to the present Supplementary

Report has identified total 2165 employees

as suitable for allocation to TS Companies

on the basis of the Modalities agreed by

the parties and approved by Supreme Court.

The breakup of employees presently

working in AP Companies which are

identified as suitable for allocation to

TS Companies are as under:-

COMPANIES EMPLOYEES IN

NUMBER

TRANSCO 993

TSGENCO 1125

55

TSSPDCL 47

TOTAL 2165

27. The present Committee is entrusting

the work to the member of the SubCommittee representing AP side, of

identification of 584 employees from the

lists Annexed to the Supplementary Report

of the Committee for Allocating them from

AP Power Utilities to TS Power Utilities.

It needs mention that the abovementioned

584 employees should be other than 655

employees out of earlier relieved 1157 and

who are awaiting orders of joining,

posting and payment of salary from Andhra

Pradesh Side.”

35. The One-Man Committee further issued certain

clarification on 13.03.2020 on receipt of the letter

dated 12.03.2020 on behalf of Telangana State power

utilities. After the issue of Supplementary Report,

Sub-Committee Member of Andhra Pradesh power

utilities submitted a letter dated 12.03.2020

submitting a list of 584 persons identified as per

Supplementary Report dated 11.03.2020 to be allocated

to Telangana power utilities. Telangana power

utilities has raised objections regarding list of 584

employees and also filed a Miscellaneous Application

No.920 of 2020. This Court disposed of the M.A.

No.920 of 2020 with the observation that objection

56

with regard to 584 employees raised by Telangana

power utilities are to be considered by One-Man

Committee. Various employees sent different

representations to power utilities as well as to the

One-Man Committee. One-Man Committee issued a

direction dated 11.05.2020 directing both the sides

to consider representations received from the

employees effectively and send their revised proposed

allocations. The Sub-Committee Member of Andhra

Pradesh submitted a letter dated 26.05.2020 revising

the list of 584 persons to be allocated to Telangana

State power utilities. The list submitted by letter

dated 26.05.2020 was objected by Telangana power

utilities by their letter dated 10.06.2020. After

considering the list submitted by Sub-Committee

Member of Andhra Pradesh and the objection of

Telangana, Concluding Report has been submitted by

One-Man Committee dated 20.06.2020.

36. In M.A. No. 1286 of 2020, learned counsel for the

applicants in paragraphs E and F has given certain

figures regarding allocation as per Report dated

26.12.2019 and as per Report dated 20.06.2020.

57

Applicants have also disputed the number of allocable

employees as claimed by Andhra Pradesh power

utilities. The number of allocable employees as

claimed on behalf of the Andhra Pradesh power

utilities, i.e., 6102 has been questioned in the

application. It is submitted that allocable

employees were not 6102 but were much more. It has

been claimed that as per Concluding Report, Telangana

State power utilities have now been allocated 5115

employees and Andhra Pradesh power utilities have

been allocated 3552 employees, thus, as per claim of

the applicants by final Concluding Report actually

8667 employees have been allocated. The above

figures have been stoutly refuted by learned counsel

appearing for the Andhra Pradesh power utilities

submitting that figures, which are now sought to be

claimed in the application by applicant was never

placed before the One-Man Committee and the figures

given by the applicants are all imaginary and needs

no consideration. It is submitted by the respondent

that endeavour of the applicants is to confuse the

issue by giving all wrong figures.

58

37. To satisfy ourselves with regard to figures of

allocable employees, which were placed before the

One-Man Committee, we have looked into the claim of

respective parties as was placed before the One-Man

Committee. In letter dated 26.05.2020, Annexure R-19

to the common counter affidavit, details relating to

allocable employees as per three Government Orders

were mentioned as 6102. In paragraphs 9 and 18,

following has been stated:-

“9. The stated stand of the AP utilities

has been as mentioned in the above order

dated 01.05.2020 passed by the Hon’ble

Supreme Court of India is that ratios as

per GOs be maintained, i.e., out of 6102

“allocable” employees. 3552 is the

threshold limit of Andhra Pradesh

Utilities and 2550 is threshold limit of

Telangana Power Utilities. The said

numbers are sacrosanct and cannot be

altered. The committee was constituted

and empowered to consider allocation of

all allocable employees and was not

limited to 1157 employees as was and

continued to be contended by Telangana

Utilities. Further the Telangana Utilities

continue to seek allocation of "Nativity"

principle. Both the stands of the

Telangana Utilities have been rejected

which is the essence of AP Reorganization

Act, 2014 read with Modalities finalized

by the Hon'ble One Man Committee. Secondly

the allocation will be strictly in

accordance with the GOs and all other

modalities to be applied on case to case

basis; as far as possible. It is most

humbly submitted that, while identifying

59

the 655 that were allotted to AP

utilities, the Telangana Utilities have

not applied any scientific mechanism or

the modalities but is based primarily on

the “Nativity/Home district” Principle:

whereas identification of 584 employees by

A.P. Utilities is based on objective

criteria contained in the working

modalities, aided by the DoPT guidelines

and is in accordance with the directions

of the courts in this regard. The

identification of personnel on cadre basis

has been carried out such that the 655

employees are balanced with (584+71) so

that financial neutrality is maintained.

18. That, at very outset it is submitted

that TS Power Utilities are again seeking

to reopen the whole allocation. There is

an all-out attempt to confuse the numbers

and thus for clarity, the numbers are

explained hereunder.

18.1 Total Number of Allocable Employees

is 6102 as on 02.06.2014.

18.2 Ratios as laid down by the

provisions of the AP Reorganization

Act and the binding GOs as per the

modalities is Andhra Pradesh power

utilities: Telangana power utilities

= 3552:2550.

18.3 As on 02.06.2014 employees working

on order to serve with Andhra

Pradesh utilities are 3552 and

similarly employees working on order

to serve with Telangana Utilities

are 2550.

18.4 Final Report dated 26.12.2019

allocated 3552 (already working on

order to serve) plus additional 655

making total of 4207 to AP utilities

and reduced the number of employees

60

in Telangana utilities to 1895,

thus, skewing the balance and

disrupting the ratios under the GOs.

18.5 Citing the mismatch of ratios i.e.,

3552:2550 for which AP utilities had

approached Hon'ble Supreme Court

vide their clarification petition

vide MA Nos. 60, 61 and 62. Hon'ble

Supreme Court appreciated the errors

in the Allocation and directed the

AP Power Utilities to approach this

Hon'ble Committee for rectification

of errors and application of

Modalities strictly.

18.6 Thus the Hon'ble one man committee

held proceedings at Delhi and by

accepting the doctrine of 'financial

neutrality' vide Supplementary

Report dated 11.03.2020 the above

errors in ratios which had crept in

were corrected and cured and thus

with same ratio as stipulated in GOs

3552:2550 has been restored and 655

allotted to AP are balanced by

corresponding 655 (584 + 71)

allotted to TS.”

38. The claim as made by Sub-Committee Member of the

Andhra Pradesh power utilities was objected by the

applicants and they have filed a detailed letter

dated 10.06.2020 which letter is part of M.A.

No.1270/2020 whereby replying paragraph 9, following

has been stated in paragraph 9.1:-

“9.1. Further, the order dated 1-5-2020 of

the Hon.ble Supreme Court does not refer

to the Government orders or that out of

61

6102 allocable employees, 3552 is the

threshold limit of AP Power Utilities and

2550 is threshold limit of TS Power

Utilities. Such an averment is misleading.

In this regard it is submitted that, the

figures as given by the Member, AP in

Para-9 is incorrect even as per the list

furnished by the AP Power Utilities to the

Hon'ble OMC on 23-02-2020. According to

their own [A.P Power Utilities] Final list

of employees submitted to your Lordship on

23-02-2020 the total allocable employees

are 6198 and not 6102 employees as has

been stated now. In the list of 6198

employees, as was furnished by AP Power

utilities, 2225 employees were found

allocable to TS Power Utilities and 3973

employees to AP Power Utilities. And out

of the 2225 employees found allocable to

TS Power Utilities; the Hon’ble OMC had

identified 2165 employees suitable for

allocation to TS Power Utilities in Para23 of the Supplementary Report dtd: 11-03-

2020. Therefore, the figures as specified

now in Para-9 of the letter dtd:26-05-2020

is incorrect and has been done without any

basis and only with a view to create

confusion and complicate the issue. The

population ratio has no relevancy for

allocation of the employees in terms of

Section 82 of A.P. Reorganization Act,

2014.”

39. The claim made in paragraph 18 of the letter

dated 26.05.2020 was further objected in paragraph 15

of the letter dated 10.06.2020. The Telangana State

power utilities have repeated the same averments,

which have been noted in paragraph 9.1 as above.

From the materials placed by the applicants before

62

the One-Man Committee in response to the claim of

6102 employees allocable on 02.06.2014, no figure of

their own has been submitted by the applicants rather

they only say that Andhra Pradesh power utilities

itself have given a figure of 6198 in place of 6102.

When no materials have been placed before the One-Man

Committee with regard to number of allocable

employees on 02.06.2014, it is not open for the

applicants to give new figures before this Court.

This Court cannot permit the parties to reopen the

number of allocable employees as on 02.01.2020 to

anything contrary, which was not placed before the

One-Man Committee. We, thus, are of the view that

figures, now, sought to be given in M.A. No.1286 of

2020 need to be ignored. We, thus, do not find any

error in the allocations made by the One-Man

Committee in its Concluding Report dated 20.06.2020.

40. We may further observe that the list of 655

employees submitted by Telangana State power

utilities for allocation to Andhra Pradesh power

utilities has been approved by the One-Man Committee

for which there is no dispute. The One-Man Committee

63

has undertaken exercise to identify the list of 655

employees from Andhra Pradesh power utilities to be

transferred to Telangana State power utilities. The

proceeding to balance the number of employees from

Telangana State power utilities to Andhra Pradesh

power utilities being 655, we fail to understand that

how the applicants can raise the issue regarding

number of allocable employees to be considered by

this Court in these proceedings.

41. The submission which has been much pressed by the

learned counsel for the applicants is that number of

employees allocated to Telangana State power

utilities is much more as compared to those which

have been allocated from Telangana State power

utilities to Andhra Pradesh power utilities. The

applicants have repeatedly in their application and

their objection before the One-Man Committee have

referred to 502 out of 1157, 242 self-relieved

employees and 71 spouse and medical cases plus 584

which have been permitted to be identified by Member

of Andhra Pradesh Sub-Committee. The submission is

that 502+242+71+584 becomes 1399, hence 1399 have

64

been allocated to Telangana State power utilities as

against 655, which has been allocated from Telangana

State power utilities to Andhra Pradesh power

utilities. We may need to look into the above

submission on the basis of each figure claimed by the

applicant.

42. Now, coming to figure 502, which according to the

applicant is balance from 1157 by reducing it by 655.

The 502 figure as noted above, 1157 is the number of

persons, which were initially relieved by Telangana

State power utilities to Andhra Pradesh power

utilities unilaterally which decision was set aside

by the High Court and was upheld by this Court. Out

of 1157 only 655 have been allocated to Andhra

Pradesh power utilities, which was approved by Final

Report dated 26.12.2019 of the One-Man Committee.

How allocation of 502 is claimed when they are the

employees, who remained on Telangana State without

they being allocated to Andhra Pradesh power

utilities apart from 655 from Telangana State to

Andhra Pradesh. Further employees working in

Telangana State were allowed to remain in Telangana

65

State, hence, allocation from Telangana State to

Andhra Pradesh is only 655 and addition of 502 is

wholly inappropriate.

43. Now, we come to number 242, which is number of

self-relieved employees from Andhra Pradesh to

Telangana State. Admittedly, 242 employees are,

thus, who got themselves self-relieved from Andhra

Pradesh without there being any order or without

there being any direction by anyone. These 242

employees were permitted joining by Telangana power

utilities by its own. These 242 employees having

never been allocated to nor being part of any

allocation cannot be added in figure by Telangana

State. Now, we come to 71, which is agreed spouse

and medical ground cases by both the parties. 71 is

part of 655, which is now being identified by Andhra

Pradesh to be allocated to Telangana State. By

taking this no.71 in Supplementary Report permitting

Andhra Pradesh to identify only 584, thus, it is only

584+71, i.e., 655 employees, which are now being

sought to be allocated to the Telangana State by OneMan Committee. We, thus, do not find any merit in

66

the contention of the applicant that 1399 employees

have been allocated to Telangana State as against 655

allocated from Telangana State to Andhra Pradesh.

44. Now, another limb of attack of the applicants is

on the selection of 584 employees, which have been

approved by the Concluding Report to be allocated to

the Telangana State. It is submitted by applicants

that in Supplementary Report dated 11.03.2020, the

One-Man Committee has itself stated that there are

2165 employees, who are suitable for allocation to

Telangana State companies, which has also been

noticed in paragraph 23 of the Supplementary Report.

When the Andhra Pradesh Sub-Committee Member vide

letter dated 26.05.2020 has submitted the revised

list of 584, immediately objection was raised by

Telangana State vide letter dated 10.06.2020 raising

an objection that 584 does not form part of 2165 from

which only the A.P. Sub-Committee had to identify

584. Initially by letter dated 12.03.2020, the

Andhra Pradesh Sub-Committee Members have selected

584 employees, which was modified by letter dated

26.05.2020. The reason for modification in the list

67

have been given in letter dated 26.05.2020 of Andhra

Pradesh power utilities. It has been stated that

after Supplementary Report and direction dated

11.05.2020, representations were submitted by the

employees with regard to rest of 584 and One-Man

Committee issued a direction on 11.05.2020 to the

following effect:-

“Due to outbreak of Corona virus and

consequent lock down imposed in India, a

formal personal meeting with the members

of the Sub-Committee for finalizing the

process of allocation does not seem

possible in near future. The dispute now

seems to have narrowed down to 584

employees allocation by AP to TS side.

Both sides are directed to consider the

representations received from the

employees collectively and individually

and send their revised proposed

allocation. Both sides should exchange

their revised allocation Lists limited to

584 employees of AP who presently stand

allocated to TS. The members of the SubCommittee are directed to send their

proposed revised lists latest by 1st June,

2020. As and when normalcy is restored in

the country, if necessary, a formal

personal meeting date will be communicated

to the parties well in advance”.

45. Further in paragraph 13, following has been

stated:-

“13. That the substitution which takes

place in the annexed revised lists is in

terms of directions dated 11.05.2020

68

issued by this Hon'ble Committee and in

terms of orders passed by Hon’ble Supreme

Court. The majority of representations

were of the nature of Special Cases

including spouse cases, medical cases,

physically handicapped cases etc. Their

grievances are addressed and on

humanitarian grounds and substitutions

have been affected strictly as per

modalities. No revised options were

considered in this exercise.”

46. The objection that list of 584 is not out of 2165

was considered by the One-Man Committee, which is

reflected from the Concluding Report dated

20.06.2020. The above objection has been duly

considered and answered by the One-Man Committee in

paragraphs 25, 26, 27 and 28 of the Concluding

Report, which is to the following effect:-

“25. The second submission on behalf of TS

is that with the Supplementary Report,

this Committee had Identified total 2165

employees in the list given to AP Sub

Committee member for proposing allocation

from that list. It is urged on behalf of

TS, that allocation list proposed by AP is

not out of 2165 listed employees with the

Supplementary Report of this Committee.

26. It is true, as urged on behalf of TS,

that with the Supplementary Report, this

Committee had identified 2165 employees

bused on modality Nos. 5 which requires

consideration of every employee for his

home district and his adjustment as far as

possible in the State in which his home

district falls.

69

27. This Committee has to be open to

correction. The Committee is also of the

view that modality No. V alone is not

decisive and modalities no. I to IV are to

be cumulatively taken into consideration

and applied to make allocation in

proportion to the available posts in each

Company in the Two States. TS side has

accepted that 114 employees from out of

584 employees proposed for allocation by

A.P to T.S are included in 2165 employees

identified by this Committee in the lint

annexed with Supplementary Report. The

remaining 470 employees (falling outside

2165 employees identified with the

supplementary report) have been proposed

by A.P for T.S in the report of the Sub

Committee Member. The justification shown

is that it is to match the number of

employees with the available posts in

various companies.

28. In the above circumstances, mentioned

above, this Committee finds the Allocation

Lists company-wise and post-wise proposed

by AP deserves approval and it is so

approved.”

47. One-Man Committee accepted the reasons given by

Sub-Committee Member of Andhra Pradesh that list of

2165 was only considered on the basis of modality

No.V and modality No.V itself cannot be the sole

basis for allocation, hence other modalities were

also taken into consideration before finalising the

list of 584. It is true that in Supplementary Report

dated 11.03.2020, the list of 2165 was indicated as

70

list of suitable persons who are eligible to be

allocated to Telangana State, however, the selection

made of 584 by applying modalities No. I to V by the

Andhra Pradesh Member Sub-Committee has found

approval and even if all members of 584 does not form

part of 2165, no exception can be taken to such

allocation, which find approval by One-Man committee.

We may further notice that insofar as the list of

allocation of 655 employees is concerned, which was

submitted by Telangana State power utilities, was

approved by the One-Man Committee. The task to

select 584 was rightly entrusted by One-Man Committee

to Andhra Pradesh Sub-Committee Member since those

584 has to go to Telangana State from Andhra Pradesh

and those 584, who are working in the territories of

Andhra Pradesh. Andhra Pradesh utilities were the

best suited to select 584 by applying all the

modalities. Thus, the objection raised by the

applicants on selection of 584 having not been

accepted by the One-Man Committee, we see no reason

to take any different view.

48. Now, one more objection of the applicants, which

needs to be noticed is the objection that even the

71

Concluding Report dated 20.06.2020 is not final

report and Sub-Committee Member of Andhra Pradesh has

been authorised to modify the list. Applicants have

referred to direction Nos. I, II and III of the

Concluding Report, which is to the following effect:-

I. In addition to the Directions

contained in Para 21 of the

Supplementary Report of this Committee

regarding retired employees on both

sides, it is further directed, that in

both the States, employees who have

attained or will be attaining 58 Years

of age in the year 2020 will be kept

out of the allocation process and

their names in the Allocation Lists

will be removed.

II. In the allocation process of the

present dimension and undertaken after

5 years delay, it is not possible for

the Committee to satisfy individual

needs and comforts and service

prospects of every employee. The

allocation process has been finalized

on laid down principles contained in

the modalities and elbow room,

wherever permissible, in the

modalities has been given effect to.

The committee however directs the Sub

Committee member of AP to re-examine

any left out spouse and medical cases

and every attempt should be made to

accommodate them in the state of their

option.

III. All SC/ST employees cases be reexamined to accommodate them as per

modality VIII in the State where they

are notified as SCs or STs so as not

to affect their future service growth.

72

49. Now, we first take the direction No.I of the OneMan Committee that those who have attained or

will be attaining 58 Years of age in the year 2020

will be kept out of the allocation process and their

names in the Allocation Lists will be removed. In

Supplementary Report in paragraph 21, the One-Man

Committee has stated:-

“21. It was also agreed by the Parties

that all retired employees between years

2014 to 2020 in each Power Utility in each

State need not be displaced only for

pensioner benefits payable to them.”

50. The above indicates that both the parties had

agreed before the One-Man Committee that all retired

employees between years 2014 to 2020 in each power

utility in each State need not be displaced. Thus,

the above was agreement between both the parties

before the One-Man Committee and direction No.I only

an extension of the said agreement, i.e., whoever

shall be attaining 58 years of age in 2020 shall be

kept out of allocation process. As per paragraph 21

of the Supplementary Report, those, who retire till

then were already kept out of the allocation and the

73

extension till the end of 2020 cannot be said to be

unreasonable. The allocation process being not yet

finalised and awaiting finalisation for last several

years, those who retire either in Telangana State or

Andhra Pradesh has rightly been decided not to be

displaced only for the purpose of shouldering

pensionary liability. The direction No.I is

equitable.

51. The applicants further submit that after the

Concluding Report dated 20.06.2020 by letter dated

26.06.2020, Andhra Pradesh power utilities have

struck 119 names from the incoming 655 list from the

Telangana State power utilities to Andhra Pradesh

power utilities. We are of the view that the said

dropping is only consequential to the decision of the

One-Man Committee as reflected in paragraph 21 of

Supplementary Report and direction No.I of Concluding

Report. The Andhra Pradesh power utilities have also

deleted 50 names from the list of 584 employees

outgoing from Andhra Pradesh power utilities to

Telangana State power utilities, which was again in

compliance of the One-Man Committee’s decision. Any

74

consequential action taken in pursuance of the

Concluding Report cannot be said to be not

contemplated by the final Concluding Report or cannot

be said to be an open ended report. The consequence

of Concluding Report has to be taken to its logical

ends. Further, 10 employees have been added by

direction Nos. II and the reasons have been given in

the letter dated 26.06.2020 for relieving them, which

is again consequence of direction Nos.I and II. We,

thus, are of the view that the One-Man Committee has

considered all materials and objections placed before

it by both sides including the representation of the

employees and employees organisations submitted from

time to time. The process which was initiated by

submitting Final Report dated 26.12.2019 was

supplemented by Supplementary Report dated 11.03.2020

and Concluding Report dated 20.06.2020. The One-Man

Committee being aware of all objections and having

taken a conscious decision to finalise the allocation

between two States, we do not find any such error in

the process which may warrant any clarification or

direction by this Court. We may further notice that

the exercise undertaken by the One-Man Committee is

75

to allocate 655 from Telangana State to Andhra

Pradesh and same number from Andhra Pradesh to

Telangana State. Apart from the above two

allocations, other personnel, who were working in

Telangana State and Andhra Pradesh were not disturbed

by allocation.

52. Learned counsel for the applicants have also

taken exception to reciprocity of 655 number. We do

not find that there is any error in reciprocity. The

One-Man Committee took a decision that when 655

employees are coming from Telangana State to Andhra

Pradesh, same number should go from Andhra Pradesh to

Telangana State. In the Concluding Report, final

list has been annexed, which is utility-wise and

personnel-wise, which is clear and unambiguous. We,

thus, do not find any merit in the Miscellaneous

Applications filed by Telangana State power utilities

being M.A. Nos. 1286, 1290, 1292 and 1291, which are

dismissed.

53. We may also need to deal with the submission of

Shri Balasubramanian, learned senior counsel in M.A.

No.1287 of 2020. The main submission of the learned

counsel is that applicant being permanent employee of

76

Andhra Pradesh Southern Power Distribution Company

with regard to which G.O. No.24 dated 29.05.2014 was

issued, no further allocation was required. It is

submitted that Ananthapur and Kurnool districts were

transferred from Central Power Distribution Company

Ltd. to Southern Power Distribution Company Ltd. He

submits that when allocation was made from Central

Power Distribution Company to Southern Power

Distribution Company Ltd., allocation was complete

and no further allocation was necessary. Paragraph 2

of the Government Order reads as follows:-

“II. Employees: All the employees working

in Kurnool and Ananthapur circles on

the appointed day will continue to

work in the same places till the final

allotment of employees to the

respective DISCOMS is completed in

accordance with guidelines to be

issued by government separately in

this regard. Their salaries will be

paid by APCPDCL and reimbursed by

APSPDCL on monthly basis till the

final allotment is completed.

Provisional allocation of staff will

be done as per State Government

guidelines.”

54. The paragraph 2 above also contemplates final

allotment. Before the High Court, one of the points

77

framed for consideration was to the following

effect:-

“4. Whether the division of employees of

the TSSPDCL need not be undertaken in view

of clause C(8) of the Twelfth Schedule ?”

55. The above points were categorically answered by

the High Court in paragraph 59 of the judgment, which

is to the following effect:-

“59. The two Districts of Anantapur and

Kurnool which were part of APCPDCL before

the creation of the State of Telangana

have been reassigned to the APSPDCL by

clause C(8) of the Twelfth Schedule. The

submission of Sri C.V. Mohan Reddy that in

view of the said provision the need for

division of the employees between the

APSPDCL and the TSPDCL is obviated and the

application of Section 82 of the Act has

got excluded, is without any merit. Under

clause C(8) of the Twelfth Schedule, the

division was confined only to the

territorial areas of the said two

Districts. Neither the assets and

liabilities nor the employees have been

distributed by the said provision.

Evidently, keeping this in mind, the A.P.

State Government, before the appointed

day, has merely divided the cadre strength

between the two DISCOMS by G.O.Ms.No.24,

dated 29-5-2014 while clearly envisaging

therein the final allotment of the

employees in future. It has also allowed

the employees working in the said two

Districts to continue to work in the same

places till the final allotment of the

employees to the respective DISCOMS is

completed. It is therefore imperative that

the allocation between the APSPDCL and the

78

TSPDCL is made in the same way as

allocation of the employees between the

TRANSCOs and GENCOs of the two States is

to be made after determining the

modalities for such allocation.”

56. The above judgment of the High Court having been

upheld by this Court, the submission of learned

counsel that no allocation process ought to be

undertaken for applicants is without any merit.

Further, submission of the learned counsel for the

applicants that their names were not included in the

Final List dated 26.12.2019 also does not in any

manner militate against and their names subsequently

included for allocation from Andhra Pradesh to

Telangana State utilities. We having upheld the

allocation made by the One-Man Committee from Andhra

Pradesh to Telangana State also, we find no merit in

M.A. No.1287 of 2020, which stands rejected.


57. With regard to other M.A.s, which have been

noticed above, we make it clear that the One-Man

Committee was entrusted only with distribution of

personnel between the two States, which distribution

has been finalised by the One-Man Committee. Insofar

as the allocation made by the One-Man Committee, no

79

objection or challenge by any employee or officer is

entertainable, we clarify that the One-Man Committee

having completed the process of allocation, the said

allocation cannot be challenged by any employee or

officer or any utility before any forum. Insofar as

other claims regarding salary or allowances as raised

in different M.A.s, they need no consideration in

these proceedings and employees of power utilities

are free to adjudicate their claims before

appropriate forum in accordance with law. All other

M.A.s are disposed of accordingly.

58. We having found no merit in the objections to

One-Man Committee’s Concluding Report dated

20.06.2020 it is obligatory for power utilities of

both the States and all concerned to carry out and

implement the directions of the One-Man Committee

Report.

......................J.

 ( ASHOK BHUSHAN )

......................J.

 ( M.R. SHAH )

New Delhi,

December 07, 2020.

80

We now come to Rachana Construction Co.’s case. Insofar as Rachana Construction Co. is concerned, it will not be open for a constitutional court, in accordance with all the decisions cited hereinabove, to substitute their view of the view of the tendering authority, when it reads clause 2.2.2.2(ii) in the manner that has been done. Suffice it to say that the expression “at least one similar work” could possibly mean only one such work, namely, the construction of one such bridge and not two such bridges, even if two bridges were to be constructed under the same tender document. It is not possible, therefore, for this Court to say that the construction of the aforesaid clause by the tendering authority is an impossible one rendering it perverse. Also, Shri Puneet Jain’s argument, though made here for the first time, does support the State of Madhya Pradesh, in that the two road over bridges that have been constructed under the agreement between DFCCIL and Rachana Construction Co. have a span of only 2380 meters taken together, which is certainly less than 50% of 7.473 kilometers. For these reasons, we dismiss Rachana Construction Co.’s SLP and uphold the judgment dated 02.07.2020 and the review judgment dated 04.08.2020

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 4002 OF 2020

(ARISING OUT OF SLP (C) NO. 8496 OF 2020)

THE STATE OF MADHYA PRADESH & ANR. …APPELLANTS

VERSUS

U.P. STATE BRIDGE CORPORATION LTD.

& ANR. ...RESPONDENTS

WITH

CIVIL APPEAL NO. 4003 OF 2020

(ARISING OUT OF SLP (C) NO.8738 OF 2020)

WITH

CIVIL APPEAL NOS. 4004-4005 OF 2020

(ARISING OUT OF SLP (C) NOS.9539-9540 OF 2020)

J U D G M E N T

R.F. Nariman, J.

1. Leave granted.

2. These appeals pertain to a notice inviting tender [“N.I.T.”] dated

02.12.2019 by the State of Madhya Pradesh, Public Works

Department [“PWD”]. The N.I.T. was for the construction of an

Elevated Corridor (Flyover) from LIG Square to Navlakha Square

(Old NH 3) A-B Road in Indore district in the State of Madhya

Pradesh of a length of 7.473 kilometers. The work was for an

1

estimated cost of Rs. 272.66 crores, to be completed within a period

of 24 months including the rainy season. Various parts of the N.I.T.

are important and are referred to hereunder:

3. Under Section - 2, entitled “INSTRUCTIONS TO BIDDERS”, under

clause A, entitled “GENERAL”, sub-clause 2.1.4 reads as follows:

“2.1.4 The BID shall be furnished in the format exactly as

per Appendix-I i.e. Technical Bid as per Appendix IA and

Financial Bid as per Appendix IB. BID amount shall be

indicated clearly in both figures and words, in Indian

Rupees in prescribed format of Financial Bid and it will be

signed by the Bidder's authorised signatory. In the event of

any difference between figures and words, the amount

indicated in words shall be taken into account.”

Clause 2.2.2.2(ii) reads as follows:

“2.2.2.2 Technical Capacity

xxx xxx xxx

(ii) For normal Highway projects (including Major Bridges/

ROB/ Flyovers/ Tunnels):

Provided that at least one similar work of 25% of Estimated

Project Cost Rs. 68.17 Crores (Rs.Sixty Eight Crores

Seventeen Lakhs only) shall have been completed from the

Eligible Projects in Category 1 and/or Category 3 specified

in Clause 2.2.2.5. For this purpose, a project shall be

considered to be completed, if more than 90% of the value

of work has been completed and such completed value of

work is equal to or more than 25% of the estimated project

cost. If any Major Bridge/ROB/Flyover/Tunnel is (are) part

of the project, then the sole Bidder or in case the Bidder

being a Joint Venture, any member of Joint Venture shall

necessarily demonstrate additional experience in

2

construction of Major Bridge/ROBs/Flyovers/Tunnel in the

last 5 (Five) financial years preceding the Bid Due Date i.e.

shall have completed at least one similar Major

Bridge/ROB/Flyover having span equal to or greater than

50% of the longest span of the structure proposed in this

project and in case of tunnel, if any, shall have completed

construction of at least one tunnel consisting of single or

twin tubes (including tunnel(s) for roads/ Railway/ Metro

rail/ irrigation/ hydroelectric projects etc.) having at least

50% of the cross-sectional area and 25 length of the tunnel

to be constructed in this project.”

Clause 2.2.2.5 states as follows:

“2.2.2.5 Categories and factors for evaluation of Technical

Capacity:

(i) Subject to the provisions of Clause 2.2.2 the following

categories of experience would qualify as Technical

Capacity and eligible experience (the “Eligible Experience”)

in relation to eligible projects as stipulated in Clauses

2.2.2.6(i) & (ii) (the “Eligible Projects”). In case the Bidder

has experience across different categories, the experience

for each category would be computed as per weight of

following factors to arrive at its aggregated Eligible

Experience:

Category Project/Construction experience

on Eligible Projects

Factors

1 Project in highways sector that

qualify under I Clause 2.2.2.6

(i)

1

2 Project in core sector that

qualify under Clause 2.2.2.6 (i)

0.70

3 Construction in highways sector

that qualify under Clause

 2.2.2.6(ii)

1

4 Construction in core sector that

qualify under Clause 2.2.2.6(ii)

0.70

3

(ii) The Technical capacity in respect of an Eligible Project

situated in a developed country which is a member of

OECD shall be further multiplied by a factor of 0.5 (zero

point five) and the product thereof shall be the Experience

Score for such Eligible Project.”

Under clause 2.6.2(a), the authorities reserved the right to reject any

bid, inter alia, on the following grounds:

“2.6.2 The Authority reserves the right to reject any BID

and appropriate the BID Security if:

(a) at any time, a material misrepresentation is made or

uncovered, or…”

Under Section - 3, entitled “EVALUATION OF TECHNICAL BIDS

AND OPENING & EVALUATION OF FINANCIAL BIDS”, clauses

3.1.6.1 and 3.1.6.2 state as follows:

“3.1.6. Tests of responsiveness

3.1.6.1 As a first step towards evaluation of Technical BIDs,

the Authority shall determine whether each Technical BID is

responsive to the requirements of this RFP. Technical BID

shall be considered responsive only if:

(a) Technical BID is received online as per the format at

Appendix-IA including Annexure I, IV, V and VI (Bid

Capacity format);

(b) Documents listed at clause 2.11.2 are received

physically on CPPP as mentioned;

(c) Technical Bid is accompanied by the BID Security as

specified in Clause 1.2.4 and 2.20;

(d) The Power of Attorney is uploaded on e-procurement

portal as specified in Clauses 2.1.5;

(e) Technical Bid is accompanied by Power of Attorney for

Lead Member of Joint Venture and the Joint Bidding

Agreement as specified in Clause 2.1.6, if so required;

4

(f) Technical Bid contains all the information (complete in

all respects);

(g)Technical Bid does not contain any condition or

qualification; and

(h) Copy of online receipt towards payment of cost of Bid

document of Rs 30,000.00 (Rupees Thirty thousand only)

in favor of Chief Engineer PWD Bridge Const. Zone Bhopal

is Received;

3.1.6.2 The Authority reserves the right to reject any

Technical BID which is non-responsive and no request for

alteration, modification, substitution or withdrawal shall be

entertained by the Authority in respect of such BID.”

Under Section - 4, entitled “FRAUD AND CORRUPT PRACTICES”,

clause 4.1 read with the definition clause contained in clause 4.3(b),

read as follows:

“4.1 The Bidders and their respective officers, employees,

agents and advisers shall observe the highest standard of

ethics during the Bidding Process and subsequent to the

issue of the LOA and during the subsistence of the

Agreement. Notwithstanding anything to the contrary

contained herein, or in the LOA or the Agreement, the

Authority may reject a BID, withdraw the LOA, or terminate

the Agreement, as the case may be, without being liable in

any manner whatsoever to the Bidder, if it determines that

the Bidder, directly or indirectly or through an agent,

engaged in corrupt practice, fraudulent practice, coercive

practice, undesirable practice or restrictive practice in the

Bidding Process. In such an event, the Authority shall be

entitled to forfeit and appropriate the BID Security or

Performance Security, as the case may be, as Damages,

without prejudice to any other right or remedy that may be

available to the Authority under the Bidding Documents

and/ or the Agreement, or otherwise.”

5

xxx xxx xxx

“4.3 For the purpose of this Section 4, the following terms

shall have the meaning hereinafter respectively assigned to

them:

xxx xxx xxx

(b) “fraudulent practice” means a misrepresentation or

omission of facts or suppression of facts or disclosure of

incomplete facts, in order to influence the Bidding Process”

Appendix IA consists of the letter comprising the technical bid

addressed to the Office of the Chief Engineer, Bridge Construction

Zone - Bhopal, which has to be filled up in a particular format.

Paragraphs 11 and 13 of this letter are important and are set out

hereinbelow:

“11. I/We certify that in regard to matters other than

security and integrity of the country, we/ any Member of the

Joint Venture or any of our/their Joint venture member

have not been convicted by a Court of Law or indicted or

adverse orders passed by a regulatory authority which

could cast a doubt on our ability to undertake the Project or

which relates to a grave offence that outrages the moral

sense of the community.

 xxx xxx xxx

13. I/We further certify that no investigation by a regulatory

authority is pending either against us/any member of Joint

Venture or against our CEO or any of our directors/

managers/ employees.”

Appendix IB consists of the letter comprising the financial bid, which

is also in a particular format, paragraph 2 of which reads as follows:

6

“2. I/We acknowledge that the Authority will be relying on

the information provided in the BID and the documents

accompanying the Bid for selection of the Contractor for

the aforesaid Project, and we certify that all information

provided in the Bid are true and correct; nothing has been

omitted which renders such information misleading; and all

documents accompanying the Bid are true copies of their

respective originals.”

Annex I, entitled “Details of Bidder”, contains, in clause 7, the

following:

“7 (a) I/We further certify that no investigation by a

regulatory authority is pending either against us/any

member of Joint Venture or our sister concern or against

our CEO or any of our directors/managers/employees.

(b) I/We further certify that no investigation by any

investigating agency in India or outside is pending either

against us/ any member of Joint Venture or our sister or

against our CEO concern or any of our

directors/managers/employees.

A statement by the Bidder and each of the Members of its

Joint Venture (where applicable) disclosing material nonperformance or contractual non-compliance in current

projects, as on bid due date 'is given below (attach extra

sheets, if necessary) w.r.t. para 2.1.14.”

4. Eleven companies bid for the aforesaid project, including U.P. State

Bridge Corporation Limited [“UPSBC”], Rajkamal Builders

Infrastructure Pvt. Ltd. [“Rajkamal Builders”] and Rachana

Construction Co. Insofar as UPSBC is concerned, the State of

Madhya Pradesh rejected its bid on the ground that the bidder

suppressed information required under paragraph 13 of Appendix IA

7

and clause 7(b) of Annex I. Hence, the aforesaid bid was considered

to be non-responsive. Likewise, insofar as Rachana Construction

Co. is concerned, it did not fulfil the criteria under clause 2.2.2.2(ii)

of the N.I.T. for “one similar work” of 25% of the estimated project

cost, and was also therefore considered non-responsive. Pursuant

to the rejection of the technical bid of UPSBC in the Technical

Evaluation Committee’s meeting held on 13.03.2020, Writ Petition

No. 6681 of 2020 was filed by UPSBC and by an interim order dated

17.03.2020, the financial bid of UPSBC was ordered to be opened.

5. On the opening of the financial bids, it was found that UPSBC had

bid for a sum of Rs. 306.27 crores and Rajkamal had bid for Rs.

315.80 crores. Being disqualified, Rachana Construction Co.’s bid

for Rs. 293.25 crores was not under consideration.

6. By the impugned judgment dated 15.06.2020 in Writ Petition No.

6681 of 2020 filed by UPSBC, it was held that as on the date of

submission of the technical bid, since no investigation was pending

within the meaning of clause 7(b) of Annex I, there was no

suppression of facts by UPSBC, despite the fact that an FIR dated

15.05.2018 had been lodged against it in respect of a particular

bridge constructed by it at Janpad, Varanasi which had collapsed,

killing 15 persons and injuring 11 persons. The investigation in this

case resulted in a charge sheet being filed. After the trial

8

commenced, the High Court of Judicature at Allahabad, by an order

dated 30.07.2019, stayed the trial. Despite these facts not being

stated in the bid document submitted by UPSBC, the High Court

found that there was no suppression of facts, as clause 7(b) of

Annex I only required details as to investigations that were pending,

and as “investigation” as defined under the Code of Criminal

Procedure [“Cr.P.C.”] was different from inquiries and trials, there

was no need to disclose the FIR and its aftermath, as there was no

“investigation pending” strictly speaking, as it had culminated in a

charge sheet. The High Court was also swayed by the fact that there

was a difference of Rs. 9 crores between the financial bids of

UPSBC and Rajkamal. Public interest therefore demanded that the

rejection of UPSBC’s technical bid be set aside. The State of

Madhya Pradesh was therefore directed to issue a letter of intent

[“LOI”] in favour of UPSBC for the financial bid of Rs. 306.27 crores

within a period of 30 days from the date of the judgment.

7. Meanwhile, Rachana Construction Co. also filed Writ Petition No.

8404 of 2020 challenging the rejection of its technical bid by the

State of Madhya Pradesh. By the impugned judgment dated

02.07.2020, the High Court adverted to the judgment dated

15.06.2020 in UPSBC’s writ petition and thereafter went on to

examine whether Rachana Construction Co.’s bid had been rightly

9

rejected. Insofar as Rachana Construction Co.’s bid was concerned,

the High Court referred to clause 2.2.2.2(ii) in paragraph 9 of its

judgment and held that there was nothing wrong with the State of

Madhya Pradesh’s rejection, as follows:

“9. Even on merit also the petitioner has no case because

as per Clause 2.2.2.2(ii) all the tenders as also the

petitioner were required to submit the proof of completion

of one similar work and the value of the executed work

was to be at least 25% of the value of the work in the

present tender. Said Clause 2.2.2.2(ii) is reproduced below:

“2.2.2.2(ii) For normal Highway projects

(including Major Bridges/ ROB/ Flyovers/

Tunnels):

Provided that at least one similar work of

25% of Estimated Project Cost Rs.68.17

Crores (Rs. Sixty Eight Crores Seventeen

Lakhs only) shall have been completed from

the Eligible Projects in Category 1 and/or

Category 3 specified in Clause 2.2.2.5.

For this purpose, a project shall be

considered to be completed, if more than 90

% of the value of work has been completed

and such completed value of work is equal to

or more than 25% of the estimated project

cost. If any Major Bridge/ROB/Flyover/Tunnel

is (are) part of the project, then the sole

Bidder or in case the Bidder being a Joint

Venture, any member of Joint Venture shall

necessarily demonstrate additional

experience in construction of Major

Bridge/ROBs/Flyovers/Tunnel in the last

5(Five) financial years preceding the Bid Due

Date i.e. shall have completed at least one

similar Major Bridge/ROB/Flyover having

10

span equal to or greater than 50% of the

longest span of the structure proposed in this

project and in case of tunnel, if any, shall

have completed construction of at least one

tunnel consisting of single or twin tubes

(including tunnel(s) for roads/Railway/Metro

rail/irrigation/hydro-electric projects etc.)

having at least 50% of the cross-sectional

area and 25% length of the tunnel to be

constructed in this project."

The aforesaid Clause specifically provides that for Highway

projects including Major Bridges/ROB/Flyovers/Tunnels, at

least one similar work of 25% of Estimated Project Cost

Rs.68.17 Crores shall have been completed. The petitioner

has place reliance on the certificate issued by DFCCIL,

Ahmedabad, which reveals that the petitioner is

undertaking construction work of 2 No. of road overbridges

of the total contract value Rs.76,87,90,595.00, therefore,

the construction of one road overbridge would be half of

the total contract value. Though the petitioner might have

signed one contract for two overbridges, but the cost of one

overbridge would be less than 68.17 Crores which is 25%

of the present work. Hence, the Evaluation Committee has

not committed any error while declaring the petitioner as

non-responsive. Thus, even on merits, the petitioner has

no case.

10. Learned counsel appearing for the petitioner

concluded his arguments by submitting that the petitioner

has quoted the rates of Rs.293.25 Crores as compared to

L-1 i.e. 3,06,27,00,000/- thus, Rs. 13.00 Crores can be

used for other valuable projects. As held above, once the

petitioner has been declared non-responsive, then its

financial bid and the rates quoted by the petitioner are

immaterial.”

8. In addition, the High Court also held that Rachana Construction Co.,

despite knowing that UPSBC had filed a writ petition, neither

11

intervened in the said writ petition nor filed an independent writ

petition on its own until much later. Considering that the UPSBC had

been declared as L-1 by a judgment dated 15.06.2020, UPSBC

should have been arrayed as a respondent in the writ petition and

not being so arrayed, the petition also suffered from non-joinder of a

necessary party and therefore had to be dismissed.

9. Shri Saurabh Mishra, Additional Advocate General, took us through

the N.I.T. and relied upon several clauses thereof. His principal

argument was that the expression “investigation pending” cannot be

taken to be in the sense of the Cr.P.C., as otherwise the said clause

would be rendered otiose. “Investigation pending” would necessarily

include within its scope all subsequent steps towards criminality of

an accused, as a result of which clause 7(b) of Annex I required

UPSBC to disclose material facts. He also relied upon the clause

dealing with “fraudulent practice” and stated that the omission of a

material fact would amount to a fraudulent practice, and this being a

most material fact, as a particular bridge constructed by UPSBC had

collapsed resulting in an FIR being lodged against it, not being

disclosed by UPSBC, would be fatal under the fraudulent practice

clause also.

10. Shri Dhruv Mehta, learned Senior Advocate, appearing on behalf of

UPSBC, relied heavily on the judgment in Caretel Infotech Ltd. v.

12

Hindustan Petroleum Corpn. Ltd., (2019) 14 SCC 81 [“Caratel

Infotech”], for the proposition that where a tender was in a particular

format, nothing beyond the information that is required by that

format need be given, and since no investigation was in fact pending

against his client, clause 7(b) of Annex I could not have been

invoked to non-suit his client. He also relied upon the judgment in

Secy., Deptt. of Home Secy., A.P. v. B. Chinnam Naidu, (2005) 2

SCC 746, in which case the petitioner concerned had to fill up a

recruitment form in which previous convictions had to be stated.

Since merely being arrested would not amount to a previous

conviction, it was held that the petitioner could not be said to have

suppressed the fact of his being convicted. He then argued that in

any case if there is any ambiguity in the clause the rule of contra

proferentem applies, as a result of which the literal interpretation,

which is a possible interpretation, ought to prevail, and for this he

cited Bank of India v. K. Mohandas, (2009) 5 SCC 313. He was at

pains to point out that no ground other than clause 7(b) of Annex I

could now be taken, as the ground of fraudulent practice, which was

sought to be argued by the State of Madhya Pradesh in this Court,

was not a ground on which UPSBC’s bid was rejected. He also

pointed out that public interest would require that the financial bid be

accepted, being Rs. 9 crores less than that of Rajkamal.

13

11. Shri Anupam Lal Das, learned Senior Advocate appearing on behalf

of Rachana Construction Co. assailed the impugned judgments

dated 02.07.2020 and 04.08.2020 by relying upon the Contract

Agreement dated 23.08.2017 between his client and the Dedicated

Freight Corridor Corporation of India Limited [“DFCCIL”] for the work

of construction of two nos. of road over bridges for an amount of Rs.

76.87 crores, 95% of which had been completed, for which a

payment of Rs. 68.71 crores had been received. This being so, and

this being above 25% of the estimated cost of the present tender

(fixed at Rs. 68.17 crores), he stood technically qualified. It was

wholly incorrect for the authorities to have bifurcated one project

awarded under one tender into two, merely because two road over

bridges had to be built. He also stated that non-joinder of a

necessary party could not be held against him as all the facts were

known and UPSBC could have intervened in Rachana Construction

Co.’s matter.

12. Shri Puneet Jain, learned counsel appearing on behalf of Rajkamal,

attacked the judgment in UPSBC’s case and supported the

judgment in Rachana Construction Co.’s case, stating that quite

apart from the clauses referred to and relied upon by the State of

Madhya Pradesh, it was clear that Appendix IA had not been

properly read, as paragraphs 11 and 13 had to be read together.

14

Clearly paragraph 11 indicated that if UPSBC were “indicted” in a

criminal case, which would cast doubt on its ability to undertake the

project, this would be sufficient to reject UPSBC’s bid. Insofar as

Rachana Construction Co. is concerned, he referred to and relied

upon clause 2.2.2.2(ii) and in particular, the latter part of the clause,

which required that the bidder would have to demonstrate additional

experience in respect of the bridge to be constructed in the present

tender and would have to show that it had completed at least one

similar major bridge of a span equal to or greater than 50% of the

longest span of the structure proposed in this project. He adverted to

the two road over bridges that were constructed under the

agreement dated 23.08.2017 by Rachana Construction Co. for

DFCCIL, both being of a length of 2380 meters when taken together.

This would fall woefully short of 50% of 7.473 kilometers, which

would amount to 3.736 kilometers, and on this additional ground

also, Rachana Construction Co.’s bid ought to be rejected.

13. We have heard all the learned counsel for the parties. The

parameters of judicial review in matters such as the present have

been well stated in many decisions of this Court, beginning with the

celebrated Tata Cellular v. Union of India, (1994) 6 SCC 651, in

which a 3 judge bench of this Court laid down the following

principles:

15

“94. The principles deducible from the above are:

(1) The modern trend points to judicial restraint in

administrative action.

(2) The court does not sit as a court of appeal but merely

reviews the manner in which the decision was made.

(3) The court does not have the expertise to correct the

administrative decision. If a review of the administrative

decision is permitted it will be substituting its own decision,

without the necessary expertise which itself may be fallible.

(4) The terms of the invitation to tender cannot be open to

judicial scrutiny because the invitation to tender is in the

realm of contract. Normally speaking, the decision to

accept the tender or award the contract is reached by

process of negotiations through several tiers. More often

than not, such decisions are made qualitatively by experts.

(5) The Government must have freedom of contract. In

other words, a fair play in the joints is a necessary

concomitant for an administrative body functioning in an

administrative sphere or quasi-administrative sphere.

However, the decision must not only be tested by the

application of Wednesbury principle of reasonableness

(including its other facts pointed out above) but must be

free from arbitrariness not affected by bias or actuated by

mala fides.

(6) Quashing decisions may impose heavy administrative

burden on the administration and lead to increased and

unbudgeted expenditure.”

(pages 687-688)

14. Likewise, in Jagdish Mandal v. State of Orissa, (2007) 14 SCC

517, this Court held:

“22. Judicial review of administrative action is intended to

prevent arbitrariness, irrationality, unreasonableness, bias

and mala fides. Its purpose is to check whether choice or

decision is made “lawfully” and not to check whether choice

or decision is “sound”. When the power of judicial review is

invoked in matters relating to tenders or award of contracts,

certain special features should be borne in mind. A contract

is a commercial transaction. Evaluating tenders and

awarding contracts are essentially commercial functions.

Principles of equity and natural justice stay at a distance. If

the decision relating to award of contract is bona fide and is

16

in public interest, courts will not, in exercise of power of

judicial review, interfere even if a procedural aberration or

error in assessment or prejudice to a tenderer, is made out.

The power of judicial review will not be permitted to be

invoked to protect private interest at the cost of public

interest, or to decide contractual disputes. The tenderer or

contractor with a grievance can always seek damages in a

civil court. Attempts by unsuccessful tenderers with

imaginary grievances, wounded pride and business rivalry,

to make mountains out of molehills of some

technical/procedural violation or some prejudice to self, and

persuade courts to interfere by exercising power of judicial

review, should be resisted. Such interferences, either

interim or final, may hold up public works for years, or

delay relief and succour to thousands and millions and may

increase the project cost manifold. Therefore, a court

before interfering in tender or contractual matters in

exercise of power of judicial review, should pose to itself

the following questions:

(i) Whether the process adopted or decision made by the

authority is mala fide or intended to favour someone;

or

Whether the process adopted or decision made is so

arbitrary and irrational that the court can say: “the decision

is such that no responsible authority acting reasonably and

in accordance with relevant law could have reached”;

(ii) Whether public interest is affected.

If the answers are in the negative, there should be no

interference under Article 226. Cases involving blacklisting

or imposition of penal consequences on a

tenderer/contractor or distribution of State largesse

(allotment of sites/shops, grant of licences, dealerships and

franchises) stand on a different footing as they may require

a higher degree of fairness in action.”

(pages 531-532)

15. In Central Coalfields Ltd. v. SLL-SML (Joint Venture

Consortium), (2016) 8 SCC 622, this Court held as follows:

“47. The result of this discussion is that the issue of the

acceptance or rejection of a bid or a bidder should be

looked at not only from the point of view of the

unsuccessful party but also from the point of view of the

17

employer. As held in Ramana Dayaram Shetty [Ramana

Dayaram Shetty v. International Airport Authority of India,

(1979) 3 SCC 489] the terms of NIT cannot be ignored as

being redundant or superfluous. They must be given a

meaning and the necessary significance. As pointed out in

Tata Cellular [Tata Cellular v. Union of India, (1994) 6 SCC

651] there must be judicial restraint in interfering with

administrative action. Ordinarily, the soundness of the

decision taken by the employer ought not to be questioned

but the decision-making process can certainly be subject to

judicial review. The soundness of the decision may be

questioned if it is irrational or mala fide or intended to

favour someone or a decision “that no responsible authority

acting reasonably and in accordance with relevant law

could have reached” as held in Jagdish Mandal [Jagdish

Mandal v. State of Orissa, (2007) 14 SCC 517] followed in

Michigan Rubber [Michigan Rubber (India) Ltd. v. State of

Karnataka, (2012) 8 SCC 216] .

48. Therefore, whether a term of NIT is essential or not is a

decision taken by the employer which should be respected.

Even if the term is essential, the employer has the inherent

authority to deviate from it provided the deviation is made

applicable to all bidders and potential bidders as held in

Ramana Dayaram Shetty [Ramana Dayaram Shetty v.

International Airport Authority of India, (1979) 3 SCC 489] .

However, if the term is held by the employer to be ancillary

or subsidiary, even that decision should be respected. The

lawfulness of that decision can be questioned on very

limited grounds, as mentioned in the various decisions

discussed above, but the soundness of the decision cannot

be questioned, otherwise this Court would be taking over

the function of the tender issuing authority, which it cannot.”

(page 638)

16. Afcons Infrastructure Ltd. v. Nagpur Metro Rail Corpn. Ltd.,

(2016) 16 SCC 818, puts the proposition extremely well when it

states:

“14. We must reiterate the words of caution that this Court

has stated right from the time when Ramana Dayaram

Shetty v. International Airport Authority of India [Ramana

18

Dayaram Shetty v. International Airport Authority of India,

(1979) 3 SCC 489] was decided almost 40 years ago,

namely, that the words used in the tender documents

cannot be ignored or treated as redundant or superfluous

— they must be given meaning and their necessary

significance. In this context, the use of the word “metro” in

Clause 4.2(a) of Section III of the bid documents and its

connotation in ordinary parlance cannot be overlooked.

15. We may add that the owner or the employer of a

project, having authored the tender documents, is the best

person to understand and appreciate its requirements and

interpret its documents. The constitutional courts must

defer to this understanding and appreciation of the tender

documents, unless there is mala fide or perversity in the

understanding or appreciation or in the application of the

terms of the tender conditions. It is possible that the owner

or employer of a project may give an interpretation to the

tender documents that is not acceptable to the

constitutional courts but that by itself is not a reason for

interfering with the interpretation given.”

(page 825)

17. This view of the law has been subsequently reiterated and followed

in Montecarlo Ltd. v. NTPC Ltd., (2016) 15 SCC 272 (see

paragraph 25 at page 287) and Caratel Infotech (supra) (see

paragraphs 38-39 at pages 92-93).

18. Judged by these parameters, it is clear that this Court must defer to

the understanding of clauses in tender documents by the author

thereof unless, pithily put, there is perversity in the author’s

construction of the documents or mala fides. As against this, Shri

Dhruv Mehta is also correct in drawing our attention to Caratel

Infotech (supra), and in particular, to paragraphs 4, 9, 22 and 23,

which are set out hereinbelow:

19

“4. The appellant submitted the bid in respect of the etender on 19-12-2017. In terms of Clause 20 extracted

aforesaid, a format had been provided for the declaration to

be made, which is as under:

“DECLARATION NON BLACKLISTED/NON

BANNED/NON HOLIDAY LISTED PARTY

We confirm that we have not been banned or blacklisted or

delisted or holiday listed by any government or quasigovernment agencies or public sector undertakings

Date: __________

Name of Tenderer: _______________

Place: __________

Signature & Seal of Tenderer: _____________

Note: If a bidder has been banned by any government or

quasi-government agencies or public sector undertakings,

this fact must be clearly stated with details. If this

declaration is not given along with the unpriced bid, the

tender will be rejected as non-responsive.”

The appellant submitted the declaration in terms aforesaid

i.e. stating that the appellant had not been blacklisted by

any government or quasi-government agency or public

sector undertakings.”

(page 85)

“9. The decision of the High Court is predicated on two

facts—firstly the non-disclosure of the factum of the showcause notice issued to the appellant amounted to violation

of the undertaking. Linked to this issue is that Clause 20(iii)

of the tender provided for an integrity pact “ensuring

transparency and fair dealing” and that integrity pact had

been duly signed and submitted by the appellant.

Secondly, the Division Bench doubted the compliance, by

the appellant, of Clause 8 read with Clause 10(g) of

Section 4 of the tender. This controversy pertains to the

clause dealing with the business continuity and the

requirement of submitting a valid ISO certificate for the

purpose of securing the tender. The relevant clauses read

as under:

“8. Business continuity

OMCs currently have an agreement for inbound

calls with a service provider based in different

20

regions. The successful bidder has to submit the

transition plan to migrate to new platform and

facility with “zero” disruption of services with

respect to the following areas:

(a) Toll-free services.

(b) IVRS based call handling.

(c) Diversion of call traffic at the successful

bidder's premises.

(d) Trained operators at the time of Go-Live date.

***

10. Other mandatory requirements:

***

(g) Valid ISO Certification 27001 for security and

ISO 2301 for business continuity.””

(page 86)

“22. It is no doubt true that Clause 20 does provide for four

eventualities, as submitted by the learned counsel for

Respondent 3. The present case is not one where on the

date of submission of the tender the appellant had been

banned, blacklisted or put on holiday list. The question

before us, thus, would be the effect of an action for

blacklisting and holiday listing being initiated. The

declaration to be given by the bidder is specified in Clause

20(ii), which deals with the first three aspects. The format

enclosed with the tender documents also refers only to

these three eventualities. It is not a case where no specific

format is provided, where possibly it could have been

contended that the disclosure has to be in respect of all the

four aspects. The format having been provided, if initiation

of blacklisting was to be specified, then that ought to have

been included in the format. It cannot be said that the

undertaking by the appellant made it the bounden duty of

the appellant to disclose the aspect of a show-cause notice

for blacklisting. We say so as there is a specific clause with

the specific format provided for, requiring disclosures, as

per the same.

23. It may be possible to contend that the format is not

correctly made. But then, that is the problem of the framing

of the format by Respondent 1. It appears that Respondent

1 also, faced with the factual situation, took a considered

view that since Clause 20(i) provided for the four

eventualities, while the format did not provide for it, the

21

appellant could not be penalised. May be, for future the

format would require an appropriate modification!”

(page 89)

19. It is clear that Shri Dhruv Mehta is right when he refers to and relies

upon the aforesaid judgment for the proposition that where there is

a format which had to be strictly complied with, his client was

justified in going by the literal reading of the aforesaid format, which

only required a disclosure of pending investigations under clause

7(b) of Annex I of the N.I.T. However, as has correctly been pointed

out by Shri Saurbh Mishra and Shri Puneet Jain, clause 7(b) of

Annex I, which is in terms similar to paragraph 13 of Appendix IA,

must be read together with paragraph 11 thereof, which, as has

been pointed out hereinabove, requires the bidder to certify that in

regard to matters other than security and integrity of the country, the

bidder has not been convicted by a court of law or indicted. Clearly

in the facts of the present case, though the investigation is no

longer pending and though there is no conviction by a court of law,

UPSBC has certainly been “indicted”, in that, a charge sheet has

been filed against it relatable to the FIR dated 15.05.2018 in which

a trial is pending, though stayed by the High Court. Also, Shri

Saurabh Mishra is correct in stating that “fraudulent practice”, as

defined in clause 4.3(b) of the N.I.T., would include an omission of

facts or disclosure of incomplete facts in order to influence the

22

bidding process. In the facts of the present case, there is clearly an

omission of a most relevant fact and suppression of the same fact,

namely that an FIR had been lodged against UPSBC in respect of

the construction of a bridge by it, which had collapsed, and in which

a charge sheet had been lodged.

20. This being the case, Secy., Deptt. of Home Secy., A.P. v. B.

Chinnam Naidu, (2005) 2 SCC 746 is clearly distinguishable, as in

the facts of that case, the expression “convicted” could not have

possibly included the factum of arrest which was pre-conviction. On

the facts of the present case, we have seen as to how UPSBC has

indulged in a fraudulent practice and has suppressed the fact that it

was indicted for offences relatable to the construction of a bridge by

it, which had collapsed. Equally, paragraphs 12 to 18 of the

judgment in Vinubhai Haribhai Malaviya v. State of Gujarat,

(2019) 17 SCC 1, which distinguish between investigation, inquiry

and trial in a criminal case, are also of no avail to UPSBC in view of

the finding hereinabove. Equally, the well-known rule of contra

proferentem as expounded in Bank of India v. K. Mohandas,

(2009) 5 SCC 313 (at paragraph 32) is also of no avail, given the

fact that there is no ambiguity whatsoever insofar as the fraudulent

practice clause and paragraph 11 of Appendix IA are concerned.

23

21. Adverting to Shri Dhruv Mehta’s argument that his client has been

non-suited only on application of clause 7(b) of Annex I, a reference

to the Technical Evaluation Committee’s order dated 13.03.2020

declaring UPSBC’s bid non-responsive shows that it also refers to

Appendix IA comprising the technical bid and paragraph 13 thereof,

in particular. We have already held that paragraph 13 has to be

read along with paragraph 11, which clearly states that a person

who is “indicted” for a criminal offence has to disclose the factum of

indictment. A technical objection based on the rejection order

cannot be allowed to prevail in the face of the suppression of a

most material fact, that is of an FIR pertaining to the construction of

a bridge by UPSBC, which has collapsed.

22. Coming to the public interest factor, and the fact that the financial

bid of UPSBC is about Rs. 9 crores less than that of Rajkamal, the

sting has been removed inasmuch as Shri Puneet Jain readily

accepts that if, as a result of UPSBC being disqualified, his client is

to be awarded the tender, he will do so at the same amount as the

financial bid of UPSBC. For all these reasons, the impugned

judgment dated 15.06.2020 is set aside.

24

23. We now come to Rachana Construction Co.’s case. Insofar as

Rachana Construction Co. is concerned, it will not be open for a

constitutional court, in accordance with all the decisions cited

hereinabove, to substitute their view of the view of the tendering

authority, when it reads clause 2.2.2.2(ii) in the manner that has

been done. Suffice it to say that the expression “at least one similar

work” could possibly mean only one such work, namely, the

construction of one such bridge and not two such bridges, even if

two bridges were to be constructed under the same tender

document. It is not possible, therefore, for this Court to say that the

construction of the aforesaid clause by the tendering authority is an

impossible one rendering it perverse. Also, Shri Puneet Jain’s

argument, though made here for the first time, does support the

State of Madhya Pradesh, in that the two road over bridges that

have been constructed under the agreement between DFCCIL and

Rachana Construction Co. have a span of only 2380 meters taken

together, which is certainly less than 50% of 7.473 kilometers. For

these reasons, we dismiss Rachana Construction Co.’s SLP and

uphold the judgment dated 02.07.2020 and the review judgment

dated 04.08.2020.

25

24. Given the lapse of time taken in court proceedings, the State of

Madhya Pradesh is directed to issue a LOI as soon as is practically

possible to Rajkamal insofar as the present tender is concerned at

the same financial bid as that of UPSBC. All the appeals are

disposed of accordingly.


……………….......................... J.

 (ROHINTON FALI NARIMAN)

……………….......................... J.

 (K.M. JOSEPH)

New Delhi;

December 08, 2020.

26

the incumbent teacher, who is entitled for promotion under the scheme, is to be given benefit only from the entry of service of such incumbent into the 12 SLP(C) No. 8088/2020 University. Though the earlier service is to be counted for the purpose of giving benefit of promotion, but effective date for all purposes is only from the date of entry of first respondent into the University service, i.e, 28.10.2013. The University is not expected to grant promotion, covering the period, anterior to the entry of service of the first respondent into University. As such, we are of the view that the University has rightly given the benefit of promotion from 28.10.2013

SLP(C) No. 8088/2020

REPORTABLE


IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 4079 OF 2020

(Arising out of S.L.P.(C) NO. 8088 OF 2020)

Registrar Karnataka University & Anr.

 Appellant(s)

 Versus

Dr. Prabhugouda & Anr.

 Respondent(s)

J U D G M E N T

R.Subhash Reddy,J.

1. Leave granted.

2. This civil appeal is filed by the Karnataka

University, at Dharwad, through its Registrar and

another, aggrieved by the judgment and order dated

02.01.2020, passed in writ appeal No.100436 of 2019, by

the High Court of Karnataka, Dharwad Bench.

3. By the aforesaid Order, Division Bench of High Court

has dismissed the writ appeal preferred by the appellants

herein, calling in question the order passed by the

learned Single Judge in writ petition No. 100353 of 2018

(S-PRO) dated 13.03.2019 allowing the writ petition and

declaring that the effective date of “Career Advancement

1

SLP(C) No. 8088/2020

Scheme” (for short ‘CAS’) promotion of the first

respondent-writ petitioner was 01.01.2009 and also

directed to grant all consequential benefits to him, as

flow from such fixation. In fact, the CAS promotion was

already given to the first respondent- writ petitioner

and pay fixation has already been made, but it was from

the date of 28.10.2013.

4. The brief factual matrix of the case is that, the

first respondent-writ petitioner had claimed his

promotion under CAS, promulgated by the UGC, to be given

effect from 01.01.2009 instead of 28.10.2013, from which

date, promotion is given to the writ petitioner. The writ

petitioner was earlier working as an Associate Professor,

in J.S.S College, which is affiliated to Karnataka

University. In pursuance of syndicate Resolution No.24

dated 26.10.2013, the writ petitioner was appointed as an

Associate Professor in the P.G. Department of Studies in

Mathematics in the University. Pursuant to his

appointment, he joined in the service of the University

on 28.10.2013 and vide order dated 31.12.2015, his

service was confirmed with effect from 28.10.2013.

5. By issuing Circular dated 04.07.2013, the University

invited applications for promotion, from eligible

Assistant Professors, Associate professor and Professor

(stage 5) under CAS. The first respondent-writ petitioner

made an application in response to the said Circular, for

2

SLP(C) No. 8088/2020

promotion to the post of Professor under UGC, CAS. He

appeared for interview on 12.08.2014 before the Board of

Appointment (BOA), which has recommended his case for

promotion and accordingly promotion order was issued on

16.02.2016, promoting the writ petitioner as a Professor,

with effect from 28.10.2013, that is, from the date of

his eligibility, to the said post. He has been promoted

to the post of Professor with effect from 28.10.2013,

taking into consideration his past three years of service

in previous college, where he worked as Associate

Professor. The claim of the first respondent- writ

petitioner in the High Court was that as he has completed

three years of service in the cadre of Associate

Professor from 01.01.2006 to 01.01.2009, as such, he

ought to have been considered for promotion under CAS

from 01.01.2009 instead of 28.10.2013. During the

relevant time, neither he was in the service of the

University nor working in any of the constituent Colleges

of the University, but he was in service of J.S.S

College, Dharwad, which is an affiliated College to the

Dharwad University. The first respondent- writ petitioner

made representations dated 18.03.2016 and 25.07.2016, in

this regard, for which, he was replied by the University

on 04.08.2017. The claim of the writ petitioner, for

grant of CAS promotion from 01.01.2009, was placed before

the Syndicate of the University, and the Syndicate in its

3

SLP(C) No. 8088/2020

meeting held on 19.07.2017, vide Resolution No.36, has

rejected the claim, stating that there is no provision to

grant the said benefit from 01.01.2009, as claimed. In

accordance with the Resolution of the Syndicate, an

endorsement came to be issued by the University on

04.08.2017, a copy which was served on the writ

petitioner.

6. Challenging the Resolution of the Syndicate of the

University, bearing Resolution No. 36, dated 19.07.2017

and the endorsement dated 04.08.2017, the first

respondent has filed writ petition No. 100353 of 2018

before the High Court of Karnataka, Dharwad Bench,

questioning the aforesaid resolution, endorsement and by

seeking further consequential directions to fix the

eligibility date from 01.01.2009 for promotion to the

post of Professor under CAS, in mathematics, instead of

28.10.2013 and to reconsider his representation dated

10.08.2017. The claim of the first respondent-writ

petitioner was opposed, by filing the written note of

objections in the High Court but the learned Single Judge

of the High Court, by Order dated 13.03.2019, allowed the

writ petition, by recording a finding that the writ

petitioner completed three years of teaching by

01.01.2009, as such effective date should have been

01.01.2009. Learned Single Judge of the High Court was of

the view that his service in affiliated College is also

4

SLP(C) No. 8088/2020

to be considered for the purpose of promotion under CAS

and consequently writ petitioner is entitled for

promotion from 01.01.2009 instead of 28.10.2013.

7. Aggrieved by the Order of the learned Single Judge,

the appellants herein preferred the writ appeal in writ

appeal No. 100436 of 2019 and by Order dated 02.01.2020,

the said writ appeal is dismissed, confirming the Order

of the learned Single Judge, by recording a finding that

the magnanimous interpretation is to be given for the

wordings ”University/Colleges”, as found in Clause 12.7

of the Statute. The Division Bench has held that the word

‘colleges’ used in the Statute, not only includes

constituent colleges, but also includes other colleges,

which are affiliated to Karnataka University.

8. We have heard Sri Kirit Javali, learned counsel

appearing for the appellant-University and Sri Siddarath

Bhatnagar, learned senior counsel appearing for the first

respondent- writ petitioner.

9. Having heard the learned counsels on both sides, we

have perused the impugned order and other material placed

on record.

10. It is contended by learned counsel for the

appellants that, it is an admitted position that, prior

to joining the appellant- University, respondent No.1-

writ petitioner was working as Associate Professor from

01.01.2006 till 23.10.2013 (with an affiliated College)

5

SLP(C) No. 8088/2020

and thereafter, he joined the University as Assistant

Professor. It is submitted that at the time of

recruitment, respondent No.1 did not apply for the post

of Professor, as he was well aware that he was not

eligible for the same. The writ petitioner was promoted

as Professor vide Order dated 26.10.2013, he joined the

University service with effect from 28.10.2013. It is

submitted that the effective date of promotion of

respondent No.1, for the post of Professor, cannot be

from any date prior to 28.10.2013, as at that point of

time, he was admittedly not in the employment of

University. Further it is brought to the notice by the

learned counsel that very preamble of the statute makes

it clear that the candidate must have been on the rolls

of the University or a Constituent College. It is further

submitted that the benefit of Clause 17 of the Statute

was duly given to respondent No.1, and his previous

service was considered for promotion, but as he was not

in the effective service of the University, the

University has rightly given the effective date from

28.10.2013. It is submitted that as per the statute

framed by the University, the incumbent teacher was

required to be on the rolls of the ‘constituent College’

only and not ‘affiliated College’. It is submitted that

interpretation accorded to the statute by the High Court,

6

SLP(C) No. 8088/2020

is improper, as is evident from the meaningful reading of

complete statute, as well as the preamble thereof.

11. On the other hand, learned senior counsel Sri

Siddarath Bhatnagar, appearing for the first respondent

has submitted that the Statute framed by the University

for effecting promotions in CAS, applies to Professors,

Associate Professors, Assistant Professors, Principals of

Constituent Colleges, Directors of Physical education and

Librarians and allied posts. It is submitted that the

term “principals of Constituent Colleges”, ought to be

read disjunctively, as against the other posts, mentioned

in the provision, since it appears only qua a category of

principals and not other posts. By referring to the

definition under Section 2(2) of Karnataka State

Universities Act, 2000, it is submitted that term

“College” includes ‘Constituent College’ as well as

‘affiliated College’. It is further submitted that as the

High Court has correctly interpreted the relevant statute

and has recorded a finding that the effective date of

promotion should have been 01.01.2009 instead of

28.10.2013, there are no grounds to interfere with the

impugned judgment of the High Court.

12. Before we consider the rival submissions made by the

learned counsels on both sides, we deem it appropriate to

refer to certain relevant provisions of the statute,

governing the direct recruitment, promotion under CAS,

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SLP(C) No. 8088/2020

framed by the University. The preamble and the title of

the statute, read as under:

“PREAMBLE: Consequent upon the extension of UGC

pay scales as revised from 01.01.2006 in

respect of Teachers, Librarians and Physical

education Personnel of Universities and

Constituent Colleges and issuance of letter No.

1-32/2006-U II/UI-I (i) dated 31.12.2008 of the

Government of the India, Ministry of Human

Resource Development, Department of Higher

Education, New Delhi and Notification No.F-3-

1/2009 (PS) dated 23.09.2009 of the University

Grants Commission New Delhi and Government of

Karnataka Order No. ED 37 UNE 2009, Bangalore

dated 24.12.2009 prescribing the revised norms

of recruitment and qualification for

appointment and promotion of Professors,

Associate Professors, Assistant Professors,

Physical Education Directors and Librarians, it

has become imperative to frame the statutes for

recruitment and promotion of the above

mentioned personnel in the Karnatak University,

Dharwad.

TITLE: Statute governing the direct

recruitment, promotion under Career Advancement

Scheme (CAS) and conduct of interview to the

posts of Professors, Associate Professors,

Assistant Professors, Principals of Constituent

Colleges, Directors of Physical Education and

Librarians under Section 40(1)(k) of KSU Act,

2000.”

13. Clause 12 of the Statute deals with the Screeningcum-Evaluation Committee for CAS Promotion. Clauses 12.6

and 12.7 of the statute read as under:

“12.6 CAS promotions being a personal promotion

to the incumbent teacher holding a substantive

sanctioned post, on superannuation of the

individual incumbent, the said post shall

revert back to its original cadre.

12.7 The incumbent teacher must be on the role

and active service of the University/Colleges

on the date of consideration by the Selection

Committee for Selection/CAS Promotion.”

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SLP(C) No. 8088/2020

14. Clause 13 of the statute deals with the Stages of

Promotion under CAS of Incumbent and Newly Appointed

Assistant Professors, Associate Professors, Professors.

Clauses 13.7 and 13.8 of the statute, read as under:

“13.7 Assistant Professors completing three

years of teaching in third grade (stage 3) shall

be eligible, subject to the qualifying

conditions and the API based PBAS requirements

prescribed by this Statute, to move to the next

higher grade (stage 4) and to be designated as

Associate Professor.

13.8 Associate Professor completing three

years of service in stage 4 and possessing a

Ph.D. Degree in the relevant discipline shall be

eligible to be appointed and designated as

Professor and be placed in the next higher grade

(stage 5), subject to

(a) satisfying the required

credit points as per API based PBAS

methodology provided in Table I-III

of Annexure-I stipulated in this

Statute, and

(b) an assessment by a duly

constituted selection committee as

suggested for the direct recruitment

of Professor. Provided that, no

teacher, other than those with a

Ph.D., shall be promoted or

appointed as Professor.”

15. Clause 17 of the statute provides for Counting of

Past Service for Direct Recruitment and Promotion Under

CAS. A comprehensive reading of the statute makes it very

clear that for the purpose of granting CAS promotion, the

incumbent teacher must have holding a substantive

9

SLP(C) No. 8088/2020

sanctioned post, as much as CAS promotion being a

personal promotion to the incumbent teacher and on

superannuation of the individual incumbent, the said post

shall revert back to its original cadre. It is also clear

that the incumbent teacher must be on the “roll and

active services of the University or the College”, on the

date of consideration by the Selection Committee for

selection under CAS Promotion. A harmonious reading of

Clauses 12.6 and 12.7 of the Statute read with the

Preamble thereof, makes it clear that the term “College”

used in the said statute is referable to only Constituent

College but not affiliated College.

16. The High Court, by losing sight of a vital aspect

namely, that the first respondent was not in actual

service of the University or of the constituent College,

has ordered to extend the benefit from 01.01.2009, on the

ground that he has completed three years of service, by

working as Assistant Professor in Mathematics in UGC pay

scale with effect from 01.01.2006 to 01.01.2009. There

cannot be any promotion in the University for the period

where the writ petitioner was not in effective service of

the University. The University is not expected to order

promotion for the period when he was working in

affiliated college. The High Court, by mere mathematical

calculation, by basing on the service certificate which

is “Annexure D” before the High Court, has held that as

10

SLP(C) No. 8088/2020

he has completed three years of service as Assistant

Professor in UGC scale and therefore the effective date

of promotion should be 01.01.2009 and not 28.10.2013, as

granted by the University. Further, the High Court has

fell in error in interpreting clause/paragraph 12.7 of

the Statute, by giving liberal meaning to the word

“colleges”, by extending to “affiliated college”. Even

the Division Bench has also committed the same error by

recording a finding that a magnanimous interpretation is

to be given for the wordings University/Colleges, as used

in the paragraph/clause 12.7 of the Statute. The

University has correctly interpreted the various clauses

of the Statute and by giving the benefit of past service,

has given effect to his promotion from the date of entry

into the service of the University. It is also to be

noticed that at the time of appointment itself, though

the writ petitioner has completed three years of service,

fully knowing that he was not eligible for appointment as

a Professor, he has not claimed the post of Professor.

Even the representations filed by the writ petitioner

indicate that he claimed notional service, in spite of

the same, the High Court, by misconstruing the statute

contrary to its objectives, as mentioned in the preamble

liberally construed, going beyond the scope of the

statute and granted all consequential benefits, by

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declaring that the effective date for promotion was to be

01.01.2009 instead of 28.10.2013.

17. We do not find any substance in the argument made by

the learned senior counsel appearing for the respondents,

that the term “principals of Constituent Colleges” ought

to be read disjunctively as against the other posts

mentioned in the provision. If it is to be read in the

manner as sought to be argued by learned counsel, same

will run contrary to the objectives and preamble of the

statute itself. Even the submission of the learned

counsel relying on the definition under Section 2(2) of

Karnataka State Universities Act, 2000, also does not

render any assistance to support his case. Karnataka

State Universities Act, 2000, applies to all the

colleges, which includes private college. Even private

colleges have to seek affiliation from the jurisdictional

University, as such the College is widely defined in the

Act. Said definition cannot be readily imported, as

defined, for the purpose of grant of promotions under

CAS. For the purpose of grant of promotions under CAS,

the word ‘College’ is to be interpreted, keeping in mind,

the preamble of the statute, governing promotions.

18. In that view of the matter, we are of the clear view

that, the incumbent teacher, who is entitled for

promotion under the scheme, is to be given benefit only

from the entry of service of such incumbent into the

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University. Though the earlier service is to be counted

for the purpose of giving benefit of promotion, but

effective date for all purposes is only from the date of

entry of first respondent into the University service,

i.e, 28.10.2013. The University is not expected to grant

promotion, covering the period, anterior to the entry of

service of the first respondent into University. As such,

we are of the view that the University has rightly given

the benefit of promotion from 28.10.2013.

19. For the aforesaid reasons, this civil appeal is

allowed, and judgment and Order dated 02.01.2020, passed

by the High Court in writ appeal No. 100436 of 2019

(S-PRO), is hereby quashed and set aside and consequently

the writ petition filed by the first respondent in writ

petition No. 100353 of 2018 (C-PRO) stands dismissed. No

order as to costs.

 ..................J.

 [ASHOK BHUSHAN]

..................J.

 [R.SUBHASH REDDY]

 ..................J.

 [M.R.SHAH]


New Delhi;

DECEMBER 17, 2020

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