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Synopsis

The Supreme Court has on August 28, 2024 said those who joined the service of a nationalised bank or a government of India's undertaking on the basis of their status as Scheduled Caste or Scheduled Tribe would be entitled to retain their position after their caste or tribe has been de-scheduled.

A bench of Justices Hima Kohli and Sandeep Mehta also emphasised any inclusion or exclusion in or from the list of Scheduled Castes or Scheduled Tribes can only be made through an Act of Parliament under Articles 341 and 342 of the Constitution. As a corollary thereto, neither the state government nor the courts have the authority to modify the list of Scheduled Castes or Scheduled as promulgated by the Presidential order under the as held in 'State of Maharashtra Vs Milind' (2001).

In appeals filed by K Nirmala and others, the bench noted such a situation has arisen on account of the Karnataka government redesignating some castes under the list of SC/ST, inspite of the fact that this jurisdiction is exclusively conferred upon the Parliament.

Having examined the issue, the bench said appellants are entitled to protection of their services by virtue of the circular of March 29, 2003 issued by the Government of Karnataka as ratified by communication of August 17, 2005 by the Ministry of Finance. 

The circular of March 29, 2003 issued by the Government of Karnataka specifically extended protection to various castes, including those which were excluded in the earlier Government circular of March 11, 2002, the bench said.

This subsequent circular covered the castes such as Kotegara, Kotekshathriya, Koteyava, Koteyar, Ramakshathriya, Sherugara, and Sarvegara, thus, ensuring that individuals of these castes, holding Scheduled Castes Certificates issued prior to de-scheduling, would be entitled to claim protection of their services albeit as unreserved candidates for all future purposes, it pointed out.

Additionally, the communication issued by the Ministry of Finance on August 17, 2005 reinforced the protective umbrella to the concerned bank employees and also saved them from departmental and criminal action, the bench added.

The court held that the proposed action of the respondent banks or undertakings in issuing notices to the appellants to show cause as to why their services may not be terminated cannot be sustained. It also quashed the notices.

The bench also set aside the Karnataka High Court's judgments declining any relief to the appellants.

In the case, the court noted there is no dispute over the fact that the appellants obtained their caste certificates by following the due process of law.

"When these caste certificates were issued, the synonymous caste, as of the appellants had been included in the list of Scheduled Castes by virtue of the circular issued by the Government of Karnataka, albeit by exercising powers that were not vested in the State," the bench said.

However, after the Constitution Bench decision in Milind case, the bench noted the Karnataka government took the only permissible decision to de-schedule the castes to which the appellants herein belonged. 

"However, considering the fact that the caste certificates issued to the appellants under the previous inclusions made by the state government to the Scheduled Castes list, albeit under a legal misconception was not obtained through misrepresentation or fraud, the state government took the pragmatic decision to protect the employment of those individuals who had been benefited by these caste certificates obtained prior to issuance of the Government circulars dated 11th March, 2002 and 29th March, 2003," the bench said.

The court also pointed out these circulars clearly stipulated that individuals who secured employment based on the caste certificates issued under the erroneous Government circulars/orders would no longer be entitled to claim future benefits under such certificates and would henceforth be treated as general Merit category candidates for all practical purposes. 

The court also recorded that it was not even urged by the counsel for the appellants that the certificates held by them based on the erroneous list of inclusion issued by the state government were valid or should be protected. 

Their only prayer was to protect the services of the appellants while conceding that their caste certificates would be deemed invalid and that they would not be entitled to any future benefits under the reserved category, the bench said.