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Supreme Court Says No Vested Right To Promotion Under Old Rules After Cadre Restructuring

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The Supreme Court has ruled that government employees cannot claim promotion under repealed executive instructions once new service rules come into force after cadre restructuring.

Supreme Court Says No Vested Right To Promotion Under Old Rules After Cadre Restructuring
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The Supreme Court of India has set aside an Orissa High Court judgment that directed the Odisha government to convene a Departmental Promotion Committee (DPC) for promotion to the post of Assistant Regional Transport Officer (ARTO).

The Court held that employees only have a right to be considered for promotion under the rules existing on the date of consideration and not under superseded rules.

Background of the Case

The dispute arose after two Odisha government employees, Sreepati Ranjan Dash and Aditya Bhanjan Sahoo, sought promotion to the post of Assistant Regional Transport Officer under executive instructions issued in 1981.

Both officers were initially appointed as Junior Assistants in 2013 and later promoted as Senior Assistants in 2016. After cadre restructuring in 2019, their posts were redesignated as Assistant Section Officers (ASOs).

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In 2021, they sought consideration for promotion to ARTO posts, arguing that they had completed the required service period under the earlier executive instructions. However, the Odisha government refused to convene the DPC, stating that the ARTO post had become part of the Odisha Transport Service and would thereafter be filled under the Odisha Transport Service Rules, 2021.

The Orissa High Court had directed the State government to consider the respondents’ cases for appointment to the selection post of Assistant Regional Transport Officer (ARTO) and ordered that three vacant ARTO posts remain unfilled until a final decision was taken on their claims.

What Happened During the Hearing

Before the Supreme Court, the Odisha government argued that after restructuring of the ARTO cadre in 2017 and enforcement of the 2021 Rules, the earlier executive instructions ceased to apply. It also contended that the ARTO post was a selection post and not part of the normal promotional hierarchy of the respondents’ cadre.

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The employees, on the other hand, argued that they had become eligible before the 2021 Rules came into force and therefore their cases should have been considered under the earlier executive instructions.

Court’s Key Observation

A Bench of Justice Dipankar Datta and Justice Augustine George Masih relied heavily on the Supreme Court’s earlier ruling in State of Himachal Pradesh v. Raj Kumar.

The Court observed that there is “no rule of universal application” requiring vacancies to be filled under the rules existing when vacancies first arose.

The Bench further stated:

“An employee does not have a vested right to be promoted nor does he possess a legitimate expectation to be promoted.”

The Court held that the government was legally entitled to change the mode of recruitment and decide to fill the ARTO posts through competitive examination under the 2021 Rules.

Court’s Decision

Allowing the appeals filed by the State of Odisha, the Supreme Court quashed the Orissa High Court’s orders directing the holding of a DPC for promotion of the respondents.

The Court concluded that once the 2021 Rules came into force, the earlier executive instructions stood superseded and the respondents could not claim consideration under superseded executive instructions after enforcement of the 2021 Rules.

Case Title: State of Odisha & Ors. v. Sreepati Ranjan Dash & Anr.

Case Number: Civil Appeal No. 13121 of 2025 with Civil Appeal No. 13122 of 2025

Court: Supreme Court of India

Bench: Justice Dipankar Datta and Justice Augustine George Masih

Date: May 18, 2026

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