The Supreme Court has allowed the appeals filed by the State of Odisha and set aside the judgment of the Orissa High Court dated 07.11.2025. Justice Dipankar Datta, in a judgment delivered on 18th May 2026 along with Justice Augustine George Masih in Civil Appeal Nos.13121-13122 of 2025 (State of Odisha & Ors. v. Sreepati Ranjan Dash & Anr.), held that there is no universal or vested right for government employees to claim promotion under the rules existing on the date vacancies arose. The Government is fully competent to restructure cadres, change the method of recruitment, and fill posts as per newly framed rules, provided the policy is not arbitrary.
The respondents (Sreepati Ranjan Dash and Aditya Bhanjan Sahoo) were working as Assistant Section Officers (re-designated from Senior Assistants). They claimed promotion to the post of Assistant Regional Transport Officer under 1981 Executive Instructions, which provided for selection on merit-cum-suitability after 5 years of service. While their representations were pending, the State restructured the Odisha Transport Service in 2017 (upgrading the post to Group-B) and framed the Odisha Transport Service (Method of Recruitment and Conditions of Service) Rules, 2021. Under the 2021 Rules, the post became a selection post to be filled through competitive examination conducted by OPSC, superseding earlier instructions.
The High Court had directed the State to convene a DPC and consider the respondents for promotion under the old Executive Instructions, restraining filling of certain vacancies. The Supreme Court held this direction unsustainable. It clarified that the limited right of an employee is only to be considered for promotion in accordance with the rules in force on the date of consideration. Mere existence of vacancies does not create a vested right. The Court explicitly overruled the broad proposition in Y.V. Rangaiah v. J. Sreenivasa Rao (1983) and approved the position in State of H.P. v. Raj Kumar (2022).
The Court further held that the post being a selection post (not a promotion post in the cadre hierarchy), the Government’s policy decision to fill it through direct recruitment/competitive examination was valid. The 2021 Rules validly superseded the earlier Executive Instructions. The respondents had no enforceable right to insist on promotion under the old regime after the cadre restructuring and framing of new rules.
The appeals were allowed, the impugned High Court orders set aside, and any appointments made in the interregnum were made subject to the outcome of the appeals. Parties were directed to bear their own costs.
Case Title: State of Odisha & Ors. v. Sreepati Ranjan Dash & Connected Matter
Case No.: Civil Appeal Nos.13121-13122 of 2025 (Arising out of SLP (C) Nos. … of 2024)
Date of Judgment: 18th May 2026
Coram: Justice Dipankar Datta and Justice Augustine George Masih
Click HERE for full Judgment.
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