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suraj kumar   07 July 2025

Retrospective implemented order on previously imposed penalty

Can a PSU employee be denied promotion based on a disciplinary rule that was amended after the penalty was imposed?

I am currently working in ONGC. A disciplinary penalty was imposed on me via a D&A order dated 23.10.2023, reducing my pay by one stage for a limited period (from 01.10.2023 to 30.09.2024). The order clearly stated that this penalty would not affect future increments.

However, I was later denied promotion to E3 level based on a modified Clause 13 of the R&P Rules, which came into effect only on 29.07.2024—after the disciplinary penalty was already imposed and in force. The denial of promotion was communicated to me through a response dated 08.05.2025.

As of 01.01.2025, I had fulfilled all eligibility and seniority requirements for promotion, and there were no other adverse entries or issues pending against me.

I am seeking clarity on the following:

1. Can the amended Clause 13 be applied retrospectively to deny my promotion, when my disciplinary penalty was imposed well before the rule change?


2. Is it legally valid to use a later rule to override an earlier disciplinary order that explicitly stated future benefits (like increments and by implication, promotions) would not be affected?


3. Do I have a strong case to demand promotion to E3 with effect from 01.01.2025, and challenge the denial order dated 08.05.2025?



Any legal insights, especially from those familiar with service law, DPE guidelines, or PSU R&P rules, would be greatly appreciated.





 5 Replies

T. Kalaiselvan, Advocate (Advocate)     08 July 2025

Whether the clause was effected with retrospective effect, if yes then  they have a reason, if not then you can fight against the same especially when the penalty order passed against you clearly stated that this will not affect the future increments.  In that event you can approach CAT or high court with a writ petition against the employer for relief and remedy.

Sudhir Kumar, Advocate (Advocate)     11 July 2025

It seems that :-

 

(i)                  There was a penalty order.

(ii)                The penalty order was based on the then applicable CDA Rules.

(iii)               The penalty was reduction of as non-cumulative.

(iv)              In your case there were some R&P Rules (other than CDA Rules) which govern the promotion police

 

 

It is not clear whether you are getting increment in January or July.  However the period of penalty will be over when your reduced pay is restored and you  and you .

 

 

Now you say that another set of Rule R&P Rules are change.  You are not clear whether these Rules changed during currency of penalty period.  If so then this may not be a case of back date application of law. 

 

You are also not clear as to what was the provision of Clause 13 of the R&P Rules as on 29.07.2024 and what the revised clause is and how this effect promotion does.

 

A clear view cannot be formed to advise you whether the case is worth expenditure and efforts of  litigation or not.

 

Perusal of papers is necessary.

 

suraj kumar   13 July 2025

Clarification on Retrospective Application of Amended R&P Rules and Denial of Promotion

Thank you for your response. I would like to provide additional clarity on the facts of the case and address the queries raised:

Background:

I am currently working with ONGC, a Central Public Sector Enterprise (CPSE). A disciplinary penalty was imposed on me via a D&A order dated 23.10.2023 under the then-applicable CDA Rules (Conduct, Discipline & Appeal Rules). The penalty was as follows:

1. A major penalty.

2. Reduction of pay by one stage for a limited period -from 01.10.2023 to 30.09.2024.

3. The order explicitly stated that it would not affect future increments.

Subsequently, my increment was restored with effect from 01.10.2024 after the completion of the punishment. The case was closed, and there is now no pending disciplinary case or penalty against me.

 

My promotion was due on 01.01.2025. As per the R&P Rules, I had fulfilled all eligibility criteria (experience, seniority, and no pending disciplinary proceedings) for promotion to the E3 level as of 01.01.2025. However, I was not promoted from E2 to E3.

I sought clarification from the Corporate Promotion Cell, ONGC, regarding the denial of my promotion.

In their reply, they informed me that:

1. I was eligible for promotion from E2 to E3 level with effect from 01.01.2025.

2. As per the D&A clearance obtained before the DPC meeting, there was no pending case against me on that date. It was further stated that a major penalty of reduction to one stage lower in the time scale of pay was imposed on me for the period from 01.10.2023 to 30.09.2024, via order dated 23.10.2023.

3. As per Point No.15 of the modified CDA Rules, vigilance clearance is normally not granted for five years after the currency of a major penalty. Since vigilance clearance is required for promotion, my name was not considered for promotion to the E3 level w.e.f. 01.01.2025.

Later, through an RTI reply, I came to know that the Ministry of Finance issued a DPE OM No. F.15(2)/2001-DPE(GM) dated 29.07.2024, notifying the consolidated and revised Vigilance Policy for CPSEs.

Key highlights of the said OM include:

Para 4.2 – In case of imposition of a major penalty, vigilance clearance will not normally be granted for a period of five years after the currency of the punishment. During this period, the performance of the officer should be closely monitored.

ONGC adopted the above OM dated 29.07.2024 and incorporated it into its CDA Rules, thus modifying the applicable rules.

It is important to note that:

When the penalty was imposed on me on 23.10.2023, there was no such provision in ONGC’s CDA Rules.

The above OM was implemented just two months prior to the completion of my penalty on 30.09.2024.

Rule Change & Promotion Denial:

On 29.07.2024, Clause 13 of the R&P Rules was also amended and introduced into the CDA Rules of ONGC.

Based on this amended clause, my promotion was denied, as communicated by ONGC via letter dated 08.05.2025.

My Legal Stand:

The penalty was imposed before the amended clause came into force and was based on the rules applicable at that time.

I had a legitimate expectation under the unamended rules that my promotion would not be barred after the completion of the penalty.

Applying the amended Clause 13 of the modified R&P Rules and Point No.15 of the modified CDA Rules to my case amounts to retrospective application, which is legally flawed.

The D&A order did not impose any bar on promotion, but only a temporary reduction in pay.

Reliefs I Seek:

That the promotion denial order dated 08.05.2025 be set aside.

That the amended Clause 13 of the R&P Rules and Point No.15 of the modified CDA Rules not be applied retrospectively to disciplinary cases already decided under the earlier rules.

That I be granted promotion to E3 with effect from 01.01.2025, as per the eligibility norms existing prior to the amendment.

Request for Expert Opinion:

I kindly seek your views on the following:

1. Does this constitute retrospective application of a disadvantageous rule?

2. Is my case legally sustainable under service law principles?

3. Would a writ petition before the High Court or a departmental appeal be the more appropriate remedy in this case?

Thank you in advance for your valuable insights.

P. Venu (Advocate)     17 July 2025

I have already posted my suggestion in the subsequent thread on the same subject matter-

 

"The new norm itself appears to be arbitrary. You may submit appeal/representation and, if need be, approach the High Court in a Writ Petition. To my knowledge, CAT has no jurisdiction."

Read more at: https://www.lawyersclubindia.com/forum/promotion-denial-based-post-facto-rule-amendment-request-for-just-and-fair-review--238169.asp

Sudhir Kumar, Advocate (Advocate)     21 July 2025

already being discussed at 

https://www.lawyersclubindia.com/forum/promotion-denial-based-post-facto-rule-amendment-request-for-just-and-fair-review--238169.asp


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