Delhi High Court Upholds Fresh Interview Process for Promotion at Punjab National Bank

Court dismisses petition challenging the validity of the waiting list for promotions, affirming that a waiting list does not create a vested right for promotion.

In a significant ruling, the Delhi High Court dismissed a petition challenging the initiation of a fresh interview process for promotions at Punjab National Bank (PNB). The petitioner, Shri Vijoy Joshi, had contested the bank's decision to conduct interviews for empanelment for the financial year 2020-21, arguing that the waiting list from the previous financial year was still valid.

The judgment, delivered by Justice Avneesh Jhingan, clarified the legal position regarding the validity of waiting lists in promotion policies. The court underscored that placement in a waiting list does not automatically confer a vested right for promotion or appointment. Such lists operate within a limited timeframe and become invalid after the stipulated period, which, in this case, was until the end of the financial year on March 31, 2020.

The petitioner, who had been second on the waiting list for promotion from SMG Scale-V to Scale-VI for the financial year 2019-20, argued that the bank's decision to initiate a new interview process was arbitrary and infringed upon his rights under the promotion policy of United Bank of India, which merged with PNB. However, the court observed that all vacancies for the previous financial year had been filled by selected candidates, leaving no scope for appointments from the waiting list.

Justice Jhingan referred to precedents set by the Supreme Court, including the case of Gujarat State Dy. Executive Engineers' Association v. State of Gujarat, to reinforce that the mere placement in a wait list does not create any vested right for appointment. The right to be considered arises only if selected candidates do not assume their posts, and the operation of the waiting list cannot extend indefinitely, especially once a fresh recruitment process has started.

The court further noted that the interview process for the financial year 2020-21 was initiated in accordance with the promotion policy regulations, which allow for the preparation of a merit list and supplementary waiting list valid until March 31 of the financial year. The decision to conduct interviews before the expiration of the previous year's waiting list was deemed consistent with the regulations, as no candidates from the earlier list were left unplaced.

In conclusion, the court found no merit in the petitioner's claims and dismissed the writ petition, asserting that no cause of action remained for pursuing the case, especially given the petitioner's voluntary retirement from the bank in September 2020.

Bottom Line:

Promotion and validity of waiting list - Placement in a reserve panel or waiting list does not create a vested right for promotion or appointment unless there is a contingency of selected candidates not joining the post. Waiting lists operate for a limited period and cannot be extended indefinitely.

Statutory provisions: Regulation 2.1 and 2.2 of the Promotion Policy, Regulation 7 of the Promotion Policy, as referenced in the judgment.

Shri Vijoy Joshi v. Punjab National Bank, (Delhi) : Law Finder Doc id # 2821558