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Denial of promotion should be as per law - SC

When there is merger or amalgamation of units, the employees have a right to get positioned appropriately in the merged service. There is, however, no vested right for an employee to have a particular position in the integrated or merged service. It is always open to the authorities concerned to lay down the principles with regard to fixation of seniority. On the other hand, incoming employees cannot be kept for all times as a different cadre and denied promotion while those in the parent cadre enjoy that benefit. The Supreme Court stated so while setting aside the judgment of the Madhya Pradesh High Court in the case, Panchraj Tiwari vs MP State Electricity Board. A junior engineer of the Rural Electricity Cooperative Society was aggrieved when he was denied promotion after the society was merged in the board. The board interpreted the terms of the merger with regard to staff as denying promotion to the employees of the absorbed society. The Supreme Court stated that though courts do not normally interfere with the principles of integration unless it was shown as arbitrary, unreasonable or unfair, in this case, the denial of promotion was unconstitutional as it was discriminatory.

 Article referred: http://www.business-standard.com/article/opinion/late-objection-to-arbitration-invalid-114032300753_1.html

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