BOARD OF DIRECTORS THRO C.M.D.(NAC LTD.) vs HRUSIKESH SENAPATI

The Supreme Court addressed the validity of the introduction of the E-O grade in the executive cadre, which was challenged by employees claiming it deprived them of their promotional rights to the E-1 level. The Court held that the 1984 Recruitment and Promotion Rules were applicable only to executives and did not affect non-executive employees, thus validating the circular that created promotional avenues for S-3 grade employees. The Court affirmed the binding settlement under Section 18(3) of the Industrial Disputes Act, 1947, which allowed for internal selection to E-O level, thereby dismissing the appeals of the appellant company.