SC Quashes Jharkhand Decision to Grant 100% Quota to Locals in Govt Jobs, Upholds HC Verdict

‘The citizens have equal rights, and the total exclusion of others by creating an opportunity for one class is not contemplated by the founding fathers of the Constitution of India,’ the top court said.

New Delhi: The Supreme Court on Tuesday, August 2 quashed the Jharkhand government’s 2016 decision to grant 100% reservation to locals of 13 scheduled areas in public jobs and upheld a high court decision that had termed the government decision discriminatory and impermissible.

The top court said, “The citizens have equal rights, and the total exclusion of others by creating an opportunity for one class is not contemplated by the founding fathers of the Constitution of India.”

A bench of Justices M.R. Shah and B.V. Nagarathana said, “In view of the above discussion and for the reasons stated above, we uphold the common impugned judgment and order passed by the High Court declaring the impugned Notification/Order dated July 14, 2016 as unconstitutional and ultra vires Articles 14, 16(2), 16(3) and 35(ai) of the Constitution of India”.

In 2016, the Jharkhand government had invited applications for appointment to the posts of trained graduate teacher (TGT) in government secondary schools, with 100% reservation for local candidates/residents of 13 Scheduled Areas in the State.

On April 11, 2007, 13 districts in the state had been declared Scheduled areas/districts including Ranchi, Lohardaga, Gumla, Simdega, Latehar, East Singhbhum, West Singhbhum, Saraikela Kharsawan, Sahebganj, Dumka, Pakur, Jamtara, Palamu District’s Rabda and Bakoriya Panchayats of Satbarwa Block and Godda District’s Sunderpahari and Boarijor Blocks.

The top court said it was in complete agreement with the view taken by the high court and present appeals filed by the affected candidates.

The top court relied on the constitution bench judgment of 2020 related to 100% quota in jobs in Andhra Pradesh and said it was held that the power conferred on the governor to deal with the scheduled areas is not meant to prevail over the Constitution.

It said, “The power of the governor is pari passu with the legislative power of Parliament and the State. The legislative power can be exercised by the Parliament or the State subject to the provisions of Part III of the Constitution. Thereafter, it is ultimately observed and held that the power of the Governor does not supersede the fundamental rights guaranteed under Part III of the Constitution.”

Also read: Jharkhand’s MGNREGA Workers Need a Lot More Than Political Slogans

In its 107-page verdict, the bench said it has been held that when the Fifth Schedule confers power on the governor, it is not meant to be arbitrary power.

“The Constitution can never aim to confer any arbitrary power on the constitutional authorities. They are to be exercised in a legal and rational manner keeping in view the objectives and provisions of the Constitution. The powers are not in derogation but in the furtherance of the Constitutional aims and objectives,” it said.

The bench said that considering various decisions of this Court on 100 per cent reservation and after considering Articles 14, 15 and 16 and other relevant Constitutional provisions, it is ultimately observed and held that the reservation that is permissible by protective mode, by making it 100 percent would become “discriminatory and impermissible”.

“It is further observed and held that the opportunity of public employment cannot be denied unjustly to the incumbents, and it is not the prerogative of a few. The citizens have equal rights, and the total exclusion of others by creating an opportunity for one class is not contemplated by the founding fathers of the Constitution of India,” it said.

The bench said that after applying law laid down in the case of Chebrolu Leela Prasad Rao (2020 verdict), to the facts of the case on hand, the impugned order/notification of July 14, 2016 providing 100 percent reservation for the local residents of concerned Scheduled districts/areas can only be said to be beyond the scope and ambit of powers conferred upon the governor under the Fifth Schedule of the Constitution.

It said, “100% reservation provided for the local residents of the concerned Scheduled Districts/Areas only would be violative of Article 16(2) of the Constitution of India and affecting rights of the other candidates/citizens of non- scheduled areas/districts guaranteed under Part III of the Constitution of India.”

The bench said that even under Article 16(3) of the Constitution, it is the Parliament alone, which is authorised to make any law prescribing, in regard to a class or classes of employment or appointment to an office under the Government of a State or Union Territory.

The top court, however, modified the high court order on candidates belonging to the Scheduled districts/areas who were already appointed in pursuant to the notification and whose appointments are held to be illegal and quashed saying there is a likelihood of more complication which would not be in the larger public interest.

“Hence, we are of the opinion that this is a fit case to mould the relief. Apart from the fact that the appellants herein -selected candidates belonging to the Scheduled districts/areas are already working since last about three years, in case appointments already made are not protected then thousands of schools in the State of Jharkhand would be without teachers and the ultimate sufferers would be the children of tribal areas,” it said.

(PTI)

Watch | Hamara Samvidhan: Article 16 and Equality of Opportunity in Public Employment

In episode 17, Avani Bansal talks about how the state is empowered to make reservations for groups which are underrepresented in public employment.

Article 16 of the constitution talks about equality in government jobs and says that in the recruitment and promotion processes for government jobs, there cannot be discrimination based on religion, caste, sex, place of residence, etc.

But if the government feels that some people from certain caste or strata of society are underrepresented in government jobs, it can provide reservations to them on a case-by-case basis. Advocate Avani Bansal explains this Article of the constitution in this episode of Hamara Samvidhan.

Disinvestment: Won’t Have to Comply With Reservation Quotas, Centre Tells Potential Investors

The government believes that enforcing job quota is “not desirable or legally possible” if the its share in public sector enterprises is disinvested.

New Delhi: The Central government has informed potential private investors looking to take over state-run firms as part of its strategic disinvestment plan that they will not have to comply with quotas for reservation in employment.

According to a Livemint report, the Centre believes that enforcing job quota is “not desirable or legally possible” if the government’s share in public sector enterprises (PSEs) is disinvested.

Three people with direct knowledge of the matter, requesting anonymity, told the newspaper that the government will “adequately protect existing employees”, including those who belong to Scheduled Castes, Scheduled Tribes and those with disabilities.

State and central government enterprises are mandated to have 15% reservation for SCs, 7.5% for STs and 27% for OBCs.

The Centre will negotiate the terms and conditions in the shareholders’ agreement (SHA) to ensure that “once management control is transferred to a private entity, it adequately protects staff”.

According to the report, one of the officials cited a policy document of the Department of Investment and Public Asset Management (Dipam) to suggest that a “trade off” is possible.

This document says:

“Government, in a welfare state, would like to look after the staff interest. There obviously has to be a trade-off, however, between the protection that the employees can be given and providing to the strategic partner a degree of freedom to run the firm. These competing interests would have to be carefully balanced in drafting the agreements.”

One person told the newspaper, “The reservation issue has been also clarified in the Parliament vis-à-vis BPCL (Bharat Petroleum Corp. Ltd).”‘

William Vivian John, a partner at law firm L&L Partners told Livemint that since the SHA is a document that governs future business, it can “stipulate terms regarding existing employees”.

Manishii Pathak, labour law expert and founder of legal consultancy firm Anhad Law, said under the constitution, only the state has been directed to make provision for reservation.

A January 2020 Hindustan Times report had said that the Prime Minister’s Office had asked Dipam to “examine the issue of job reservations”. The direction came after concerns were raised by various stakeholders about a “sharp fall in job opportunities for SCs, STs and OBCs after the disinvestment of government’s equity stakes”.

However, the report also makes it clear that under the existing laws, the reservation policy will not be applicable to PSEs sold to a private entity through strategic disinvestment.

Earlier this month, the United Forum of Bank Unions (UFBU), an umbrella body of nine unions, issued a call for a two-day nationwide strike to protest against the proposed privatisation of two state-owned banks.

In the Union Budget presented in February, finance minister Nirmala Sitharaman had announced the privatisation of two public sector banks (PSBs) as part of its disinvestment plan.