Board Of Directors, Represented vs Director, National Aluminium

The Supreme Court addressed the validity of the introduction of the E-O grade in the executive cadre, which was challenged by employees in the S-3 supervisory cadre. The Court held that the Recruitment and Promotion Rules for Executives, 1984, were applicable only to executives and not to non-executive employees, thus validating the circular No. 64 issued for creating promotional avenues for S-3 grade employees. The Court emphasized that the binding settlement under Section 18(3) of the Industrial Disputes Act, 1947, allowed for internal selection for E-O level posts, affirming the legality of the promotional scheme.