SC Upholds Placement of Surplus Guards at Bottom of Seniority List

Case Details: Dinesh D Panchal vs. Union of India [2025] 178 taxmann.com 637 (SC)

Judiciary and Counsel Details

• Abhay S. Oka & Ujjal Bhuyan, JJ.
• Wajeeh Shafiq, Mrs Taruna Singh Gohil, AORs, Ms Sabika Ahmad, Pradhuman Gohil, Alapati Sahithya Krishna, Ms. Hetvi Ketan Patel, Rushabh N. Kapadia, Ms Taniya Bansal & Bhaiya Vishwajeet Kumar, Advs. for the Appellant
• A. Venayagam Balan, Arvind Kumar Sharma, Amrish Kumar, Hemal Kirti Kumar Sheth, AORs and Yatin Soni, Adv. for the Respondent

Facts of the Case

In the instant case, the appellants were working in the Bhavnagar Division of the Western Railway Zone as guards. Due to a reduction in goods traffic within the territorial jurisdiction of Bhavnagar Division on account of the conversion of railway tracks from meter gauge to broad gauge, Western Railway accorded sanction for the surrender of posts of goods guard in Bhavnagar Division.
The Division Officer of Bhavnagar Division offered employees (guards) the option to transfer to another division. Some of the appellants exercised this option and were transferred to the Ahmedabad Division. Later, they filed an application with the Tribunal to fix their seniority at the bottom of the recruitment grade.

Tribunal Held

The Tribunal held that absorbed goods guards would take seniority from the date of absorption in the Baroda Division, and volunteers in higher grades would be absorbed at the bottom of the seniority list in the recruitment grade of goods guard. The High Court confirmed the Tribunal’s view. Thereafter, an appeal was made before the Supreme Court.
It was noted that those who were rendered surplus in Bhavnagar Division could not have a grievance if they reached the bottom of their seniority in their recruitment grade.
The Supreme Court held that where persons belonging to the second category were not rendered surplus but on option exercised by them, they were brought to the Ahmedabad Division, they volunteered to be rendered surplus, and, therefore, as per policy, they went down to the bottom of the seniority in the recruitment grade. Thus, no case was made out to interfere with the concurrent findings of the Tribunal and the High Court.

List of Cases Reviewed

• Order of High Court of Gujarat at Ahmedabad in SCA-7320-2009, dated 07-09-2009 (para 16) affirmed.