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Issues:
1. Determination of seniority between direct recruits and promotees in the post of Chargeman Grade-1 in the Ministry of Defence, Department of Defence Production. Analysis: The judgment involved two appeals, one from the Union of India against the decision of the Central Administrative Tribunal (Madras Bench), and the other against an order of the Central Administrative Tribunal (Bangalore Bench). The dispute revolved around the seniority determination between direct recruits and promotees in the post of Chargeman Grade-1. The recruitment to this post was both by promotion and direct recruitment, with a change in the ratio between promotees and direct recruits over the years. In Civil Appeal No.4340 of 1995, the first respondent was promoted to the post on a regular basis, while the direct recruits were appointed later. The seniority list issued placed the direct recruits above the first respondent, leading to a challenge by the first respondent before the Central Administrative Tribunal (Madras Bench). The Tribunal, based on a concession by the direct recruits' counsel, directed a re-fixation of seniority in favor of the first respondent, considering a breakdown in the quota rule. In the appeal from the Bangalore Tribunal, the promotees claimed seniority over direct recruits based on a similar breakdown of the quota rule. However, the Bangalore Tribunal found no breakdown but a mere deviation in certain years, rejecting the promotees' claim. The promotees challenged this decision and the subsequent rejection of their review application based on the Madras Tribunal's decision. The Supreme Court analyzed the concessions made before the Madras Tribunal and the factual findings of the Bangalore Tribunal. It concluded that the Madras Tribunal's decision was based on a concession and not on merits, hence not binding on the Union of India. The Court upheld the Bangalore Tribunal's findings that there was no breakdown of the quota rule, dismissing the promotees' claims. The Court also addressed the issue of applying the principles of an Office Memorandum retrospectively, ultimately ruling in favor of the Union of India and dismissing the promotees' challenges. In summary, the Supreme Court allowed Civil Appeal No.4340 of 1995 and dismissed the appeal arising from the Special Leave Petition, upholding the seniority lists and the promotion of direct recruits challenged by the promotees. The Court found no breakdown of the quota rule and rejected the retrospective application of the Office Memorandum's principles.
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