The appellant challenged her non-promotion to the post of Chief Medical Director (CMD) in the Higher Administrative Grade (HAG) within the Indian Railway Medical Service (IRMS), which resulted in the promotion of an officer junior to her.
The Supreme Court set aside the concurrent orders of the Central Administrative Tribunal (CAT) and the Delhi High Court. It ruled that while the Railways correctly applied their own internal promotion benchmark criteria, the appellant was subjected to material prejudice due to the non-communication of her annual gradings, the fractional assignment of performance points without legal basis, and the improper destruction of her service records during active judicial proceedings. The Court granted her notional promotion to the HAG scale along with a re-fixation of her pensionary benefits.
1. Background and Lower Courts’ Adjudication
The appellant, originally appointed as an Assistant Medical Officer, became eligible for promotion to the HAG post of Chief Medical Director (CMD). On December 6, 2006, the Railway Board published promotion lists where six out of ten considered officers were promoted; the appellant (at serial No. 10) was excluded.
- Central Administrative Tribunal (CAT): Dismissed the appellant’s challenge on May 22, 2007, ruling that she failed to satisfy the required promotion benchmark of “Very Good +” (VG+).
- Delhi High Court: Upheld the CAT’s decision on January 9, 2009, observing that the Railway Board’s circular establishing the VG+ benchmark was unchallenged, and the Selection Committee’s assessment (awarding the appellant 19.5 marks) could not be faulted.
2. Arguments Raised by the Parties
On behalf of the Appellant:
- Wrong Benchmark: It was argued that the Selection Committee applied a “VG+” benchmark in violation of a DoPT Office Memorandum (OM) dated February 8, 2002, which had standardized the benchmark to “Very Good”.
- Non-Communication of ACRs: Relying on Dev Dutt v. Union of India and Sukhdev Singh v. Union of India, the appellant contended that all entries in Annual Confidential Reports (ACRs) must be mandatorily communicated to enable representation.
- Spoliation of Evidence / Adverse Inference: The Railway Board weeded out the appellant’s service records in 2013 despite the active pendency of this appeal, which was filed in 2009, warranting an adverse inference.
On behalf of the Respondents (Union of India / Railway Board):
- Autonomy of Railways: Under the Allocation of Business Rules, 1961, the Railways are excluded from the DoPT’s ambit and possess independent powers to frame service rules.
- Application of Benchmark: The “VG+” benchmark (requiring three ‘Very Good’ and two ‘Outstanding’ ratings over five years) was validly issued via a Railway Board circular dated June 3, 2002.
- Retrospectivity & Administrative Records: Prior to 2008, final gradings were only communicated if they were “Average” or “Below Average”. Furthermore, while the physical ACRs were inadvertently destroyed after five years of superannuation, a summary “career card” remained available.
3. Key Findings of the Supreme Court
- Applicability of DoPT Circulars vs. Railway Rules: Relying on its precedent in Prabhat Ranjan Singh v. R.K. Kushwaha, the Court affirmed that the Ministry of Railways has independent power to dictate service conditions. Because the Railways issued their own circular on June 3, 2002, reinforcing the “VG+” criteria, the Selection Committee did not use a wrong benchmark.
- Civil Consequences of Non-Communication: The Court rejected the argument that Dev Dutt and Sukhdev Singh apply purely prospectively. Citing Abhijit Ghosh Dastidar v. Union of India, the Court reiterated that non-communication of ACR gradings that actively harm an employee’s promotional prospects carries civil consequences and is arbitrary. The appellant had repeatedly demanded her ACRs even prior to the Selection Committee’s meeting.
- Arbitrary Fractional Point Allocation: The promotion policy dated May 22, 1996, provided fixed whole points for performance (Outstanding = 5, Very Good = 4, Good = 3, Average = 2). The Court found no legal provision allowing the Selection Committee to award a fractional score of 19.5 points when the appellant had secured five straight “Very Good” ratings, which should have mathematically equaled 20 points.
- Destruction of Records during Pendency: The Court severely critiqued the Railway Board for destroying the appellant’s active service records in 2013 while judicial proceedings were visibly ongoing, noting that it established a clear ground to draw an adverse inference against the state.
4. Conclusion and Relief Granted
The Supreme Court concluded that when evaluated cumulatively, the non-supply of ACRs, the arbitrary fractioning of points, and the destruction of records created demonstrable prejudice, proving the appellant was not treated fairly.
The Court set aside the judgments of the CAT and the High Court. It ordered that the appellant be granted notional promotion to the HAG scale ($22,400 – 24,500$ refixed). Due to the absence of the physical records, the Court declined to grant back-wages under “no work no pay” but directed the respondents to re-fix her pensionary benefits based on the HAG scale and clear all outstanding arrears within two months.
2026 INSC 553
Dr. Indira Saranath V. Union of India And Another (D.O.J. 26.05.2026)




