OM Cannot Override Recruitment Rules: High Court Upholds IRS Promotion Rights

The Delhi High Court has upheld the Central Administrative Tribunal (CAT) ruling in favor of senior IRS officers, who contested their exclusion from promotions to the Non-Functional Selection Grade (NFSG) post of Additional Commissioner of Income Tax. The court ruled that the promotion rights of these officers, previously granted to their juniors, were being unjustly withheld, thereby violating statutory Recruitment Rules.

Background: A Long-Standing Promotion Dispute

In 2010, Jagdish Singh and his colleagues were promoted to the post of Joint Commissioner of Income Tax (CIT). Alongside them, several junior officers also received promotions. However, in January and December of 2022, these juniors were further promoted to the NFSG post of Additional Commissioner of Income Tax, leaving Singh and other seniors without similar advancements.

Feeling unfairly treated, Singh and his colleagues sought relief from the Central Administrative Tribunal, Principal Bench, New Delhi. They argued that the promotion of their juniors contravened sub-Rules 3 and 4 of Rule 7 of Schedule II of the Indian Revenue Service (IRS) Rules, 2015, as well as the Note below Rule 7(4). This Note stipulates that seniors must also be considered for promotion when their juniors are promoted.

CAT’s Ruling: NFSG Is a Promotional Post

The CAT sided with the senior officers, stating that NFSG is indeed a promotional post as envisaged by the IRS Rules. This interpretation directly countered the stance taken by the Union of India (UOI).

The senior officers contended that Note 1 below Rule 7(4) of Schedule II entitled them to a two-year relaxation in qualifying for the promotion, as their juniors had already received it on January 1, 2022.

The Union of India, however, argued that the NFSG post was not a promotion but merely a higher scale placement. They based this argument on an office memorandum (OM) issued by the Department of Personnel & Training (DOPT) on October 5, 2021. The CAT, however, rejected this argument, concluding that an OM cannot override the statutory Recruitment Rules, which clearly define NFSG as a promotional post.

High Court Verdict: Statutory Rules Supersede Office Memoranda

The Delhi High Court, comprising Hon’ble Justice C. Hari Shankar and Hon’ble Justice Sudhir Kumar Jain, upheld the CAT judgment. The court emphasized that the DOPT’s OM could not override Recruitment Rules enacted under Article 309 of the Constitution of India. The Rules clearly categorize NFSG as a promotional post.

The Union of India’s argument, presented by Senior Panel Counsel Mr. Satya Ranjan Swain, that promotions should involve a selection process, was dismissed by the court. The judges clarified that Rule 7(4) of the IRS Rules envisages the NFSG post as a promotional position, allowing no room for administrative reinterpretation.

Significance and Impact of the Judgment

This judgment reinforces the rights of senior officers in the Indian Revenue Service. By confirming that executive instructions like an OM cannot supersede statutory Recruitment Rules, the court has upheld the principles of merit and fairness in government promotional processes.

The ruling is a critical reminder for government authorities to adhere strictly to statutory rules. It ensures that officers are not unfairly overlooked for promotions due to arbitrary administrative decisions and strengthens the role of seniority in career advancement.

The court’s dismissal of the Union of India’s petition validates the CAT’s decision that the NFSG post must be treated as a promotional role under the IRS Rules.

Key Takeaways:

Promotion Rights of IRS Officers Affirmed: The ruling reiterates that seniors cannot be overlooked for promotion when juniors are promoted.
Office Memoranda Cannot Supplant Statutory Rules: The High Court made it clear that executive orders cannot override recruitment rules established under Article 309 of the Constitution.
NFSG Classified as Promotional: The decision affirms that NFSG is a promotional post, as defined by Rule 7(4).