Supreme Court: In batch of appeals against the judgment passed by Karnataka High Court, wherein the High Court dismissed the petitions filed by the appellants challenging the show cause notices issued by the employer bank for terminating their services on the ground that they had secured employment based on fake Caste Certificates, the division bench of Hima Kohli and Sandeep Mehta*, JJ. held that the Office Memorandum cannot supersede the communication dated 17-08-2005 issued by the Ministry of Finance and the same cannot be read to the prejudice of the appellants. Therefore, the Court concluded that the appellants are entitled to protection of their services by virtue of the Government circular dated 29-03-2003 issued by the Government of Karnataka as ratified by communication dated 17-08-2005 issued by the Ministry of Finance.
Background:
The appellants were employed by the Canara Bank in the Scheduled Castes Category based on Caste Certificates, certifying that they belonged to the ‘Kotegara’ community, a synonymous caste which was made equivalent to the caste called ‘Kotegar Matri’ (included in the Scheduled Castes list) by a Government circular dated 21-11-1977 issued by the State of Karnataka.
Pursuant to the judgment in State of Maharashtra v. Milind, (2001) 1 SCC 4, wherein it was held that held that the State Government has no authority to amend or modify the Scheduled Castes and Scheduled Tribes list published under Articles 341 and 342 of the Constitution of India. A caste can only be classified as a Scheduled Caste or a Scheduled Tribe or a Socially and Educationally Backward Caste when the Presidential Order is issued to that effect in exercise of the powers prescribed under Articles 341, 342, and 342A of the Constitution of India. The Ministry of Finance, Department of Economic Affairs in consultation with the Ministry of Welfare vide letter dated 12-03-1987, declared the State of Karnataka circulars which included the ‘Kotegara’ caste in the list of Scheduled Castes in the State of Karnataka to be non-est.
Thereafter, the Government of Karnataka issued a circular dated 11-03-2002 providing protection to individuals employed in State services who had obtained Caste Certificates based on a synonymous caste under the Government circulars, issued by the State. These individuals were to be treated as appointed under the 7 General Merit (GM) category, effective from 11-03-2002. The said circular also provided that such candidates would not be eligible for future promotions or any other benefits as SCs/STs, although they could claim benefits under the respective Backward Classes to which they belonged. Although the ‘Kotegara’ community was not included in this circular, a subsequent circular dated 29-03-2003 was issued by the Government of Karnataka, extending the benefits of the circular dated 11-03-2002 to individuals belonging to the Kotegara, Kotekshathriya, Koteyava, Koteyar, Ramakshathriya, Sherugara, and Sarvegara communities, who had obtained Caste Certificates in accordance with the earlier Government circulars.
The Caste Certificates held by the appellants were cancelled by the Competent Authority, namely the District Caste Verification Committee, and this decision was communicated to their respective employers. Subsequently, criminal proceedings were initiated against some of the appellants; however, these proceedings were quashed by the Karnataka High Court.
Thereafter, the Additional Director General of Police intimated the employer bank to terminate the services of the appellants on the ground that they had secured employment based on fake Caste Certificates. In turn, the bank issued notices to the appellants calling upon them to show cause as to why their services should not be terminated. The appellants challenged the aforesaid notices by filing writ petitions before the High Court, which came to be rejected. Thereafter, the intra court appeals were also dismissed. Thus, the present appeals were filed.
Issue: Whether a person who joined the services of a Nationalized Bank/Government of India undertaking based on a certificate that identified him/her as belonging to a Scheduled Caste(‘SC’)/Scheduled Tribe (‘ST’) in the State of Karnataka, pursuant to the State Government’s notifications, would be entitled to retain the position after the caste/tribe has been de-scheduled?
Analysis and Decision:
The Court noted that when these Caste Certificates were issued, the synonymous caste, as of the appellants had been included in the list of Scheduled Castes by virtue of the circular issued by the Government of Karnataka, albeit by exercising powers that were not vested in the State.
After taking note of Milind (supra), the Court reiterated that neither the State Government nor the Courts have the authority to modify the list of Scheduled Castes as promulgated by the Presidential order under the above Articles.
The Court further noted that the Government circulars clearly stipulate that individuals who secured employment based on the Caste Certificates issued under the erroneous Government circulars/orders would no longer be entitled to claim future benefits under such certificates and would henceforth be treated as General Merit category candidates for all practical purposes.
The Court said that there cannot be two views on the proposition that with the issuance of the Government of Karnataka’s circulars dated 11-03-2002 and 29-03-2003, the Scheduled Caste Certificates held by the appellants herein stood automatically revoked and they were brought under the unreserved category with effect from 12-03-1987.
The Court noted that circulars dated 11-03-2002 and 29-03-2003, whereby, protection was extended to the persons who had taken advantage of the Caste Certificates were issued prior to issuance of the letter dated 12-03-1987, by the Ministry of Finance, Government of India. Subsequently, the Ministry of Finance vide office memorandum dated 17-08-2005 also ratified these State decisions and extended the protection granted by the Government of Karnataka to the employees of the employer bank.
After perusing the Office Memorandum dated 8-07-2013, the Court said that it was issued in ignorance of the Government of Karnataka’s circular dated 29-03-2003, which further extended the protection granted by the earlier Government circular dated 11-03-2002 to the communities including Kotegara.
Thus, the Court said that the Office Memorandum suffers from the vice of non-consideration of a vital document being the circular dated 29-03-2003 issued by the Government of Karnataka. Hence, the Court held that the Office Memorandum cannot supersede the communication dated 17-08-2005 issued by the Ministry of Finance and the same cannot be read to the prejudice of the appellants.
Therefore, the Court concluded that the appellants are entitled to protection of their services by virtue of the Government circular dated 29-03-2003 issued by the Government of Karnataka as ratified by communication dated 17-08-2005 issued by the Ministry of Finance.
The Court noted that one of the appellants contended that she secured 8th rank in the Bachelor of Engineering course and regardless of the Caste Certificate, she would have secured a job at Hindustan Aeronautics Limited (‘HAL’) based on her merit in engineering degree. However, a show cause notice was issued to her, ass women employees are not welcome in the institution.
The Court held that the proposed action of the respondent banks/undertakings in issuing notice(s) to the appellants to show cause as to why their services may not be terminated cannot be sustained and are hereby quashed.
CASE DETAILS
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