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2022 INSC 55Supreme Court of India

Jarnail Singh v. Lachhmi Narain Gupta

Creamy Layer Exclusion Applies to SC/ST Reservations in Promotions

28 January 2022Justice L. Nageswara Rao, Justice Sanjiv Khanna, Justice B.R. Gavai
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TL;DR

The Supreme Court held that the creamy layer principle applies to SC/ST reservations in promotions. While SC/STs do not need to prove backwardness for reservation benefits, the more affluent among them (creamy layer) can be excluded from reservation in promotions. The judgment also clarified that States must collect quantifiable data on inadequacy of representation before providing reservation in promotions.

The Bottom Line

While SC/ST communities do not need to prove backwardness for reservation in promotions, the economically and socially advanced among them (creamy layer) can be excluded. States must have data showing inadequacy of representation before giving reservation in promotions.

Case Timeline

The journey from FIR to Supreme Court verdict

event
17 Jun 1995

Article 16(4-A) Introduced

Constitutional amendment enabling reservation in promotions for SC/STs

judgment
19 Oct 2006

M. Nagaraj Judgment

Supreme Court upheld reservation in promotions subject to three conditions

judgment
26 Sept 2018

Jarnail Singh (First Judgment)

Five-judge bench modified Nagaraj, applied creamy layer to SC/STs

judgment
28 Jan 2022

Final Judgment

Court settled six key issues regarding implementation of reservation in promotions

The Story

This case arose from a batch of writ petitions challenging reservation in promotions for SC/STs in various State governments and the Central Government.

The primary question was whether the 2006 M. Nagaraj judgment (which upheld reservation in promotions subject to certain conditions) needed reconsideration. Nagaraj had imposed three conditions for reservation in promotions: (1) collection of quantifiable data showing backwardness, (2) inadequacy of representation, and (3) overall efficiency of administration.

In 2018, a five-judge Constitution Bench in Jarnail Singh partially modified Nagaraj by holding that SC/STs do not need to demonstrate backwardness for reservation in promotions (as they are already presumed backward by virtue of constitutional recognition). However, the Court introduced a new requirement - that the creamy layer among SC/STs should be excluded from reservation in promotions.

The 2022 judgment addressed implementation issues arising from the 2018 judgment, particularly regarding collection of quantifiable data for inadequacy of representation and the prospective application of the Nagaraj principles.

Legal Issues

Click each question to reveal the Supreme Court's answer

1Question

Whether the creamy layer principle applies to SC/ST reservations in promotions?

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1SC Answer

YES. The Supreme Court held that the creamy layer exclusion applies to SC/STs for reservation in promotions, even though it was originally developed for OBCs in Indra Sawhney. The rationale is that the more affluent among SC/STs have already benefited from reservation and allowing them to continue would defeat the purpose of affirmative action.

This is a significant departure from the traditional understanding that SC/STs form a homogeneous group for reservation purposes.

2Question

Whether SC/STs need to prove backwardness for reservation in promotions?

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2SC Answer

NO. The Court held that since SC/STs are already recognized as backward by their inclusion in the Presidential list under Articles 341 and 342, they do not need to demonstrate backwardness separately for reservation in promotions.

Removes one of the three conditions imposed by Nagaraj judgment, making it easier for States to implement reservation in promotions.

3Question

What data must States collect before providing reservation in promotions?

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3SC Answer

States must collect quantifiable data showing inadequacy of representation of SC/STs in the particular cadre/service where reservation is sought to be provided. This data must be cadre-specific, not general.

Ensures that reservation in promotions is targeted and based on actual representation gaps.

4Question

From when does the Nagaraj judgment apply?

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4SC Answer

The Court held that Nagaraj judgment should be applied prospectively from 2006, not retrospectively from 1995 when Article 16(4-A) was introduced. This protects existing seniority and promotions.

Prevents disruption of settled service careers and seniority positions.

Arguments

The battle of arguments before the Supreme Court

Petitioner

Vihaan Kumar

1

Creamy layer should apply to SC/STs

The petitioners argued that the benefits of reservation are being cornered by the affluent sections within SC/STs, defeating the purpose of affirmative action.

2

Quantifiable data essential

States cannot simply assume inadequacy of representation without empirical data showing the same.

3

Efficiency must be considered

Reservation in promotions should not compromise administrative efficiency as mandated by Article 335.

Respondent

State of Haryana

1

SC/STs are homogeneous

SC/STs suffer from social stigma of caste, which economic advancement cannot erase. Creamy layer concept should not apply.

2

Historical injustice

Centuries of discrimination justify continued reservation without additional conditions.

3

Presidential list is sacrosanct

The inclusion in the Presidential list is sufficient proof of backwardness; no additional data should be required.

Court's Analysis

How the Court reasoned its decision

The Supreme Court attempted to balance the competing interests of ensuring effective affirmative action for SC/STs while preventing its benefits from being monopolized by the affluent sections. The application of creamy layer to SC/STs was controversial but the Court justified it on the grounds of ensuring intra-group equality.

The benefits of reservation in promotions should reach the truly disadvantaged sections within the SC/ST communities, not those who have already progressed economically and socially.

Justifies the application of creamy layer to SC/STs.

Collection of quantifiable data regarding backwardness of SCs and STs is no more required in view of the judgment in Jarnail Singh.

Relaxes one of the Nagaraj conditions for SC/STs.

The judgment of M. Nagaraj should be declared to have prospective effect to prevent unsettling the seniority of individuals over a long period of time.

Protects existing service careers from disruption.

Partly Allowed

The Verdict

Relief Granted

The Court provided clarity on implementation of reservation in promotions while balancing various competing interests.

Directions Issued

  • Creamy layer exclusion applies to SC/STs for reservation in promotions
  • SC/STs need not prove backwardness separately
  • States must collect cadre-specific data on inadequacy of representation
  • Nagaraj principles apply prospectively from 2006
  • Existing promotions and seniority are protected

Key Legal Principles Established

1

Creamy layer principle applies to SC/ST reservations in promotions.

2

SC/STs do not need to prove backwardness for reservation in promotions.

3

States must collect quantifiable data showing inadequacy of representation before providing reservation in promotions.

4

Data must be cadre-specific, not general.

5

Nagaraj principles apply prospectively from 2006.

6

Article 16(4-A) and 16(4-B) are enabling provisions, not mandatory.

7

Reservation in promotions must not affect overall administrative efficiency under Article 335.

Key Takeaways

What different people should know from this case

  • If you belong to SC/ST and have achieved economic prosperity, you may be excluded from reservation in promotions (creamy layer).
  • SC/STs do not need to prove they are backward to get reservation in promotions.
  • The State government must have data showing your community is underrepresented in that particular job level.
  • Existing promotions and seniority are protected and will not be disturbed.

Watch & Learn

Video explanations in multiple languages

Frequently Asked Questions

The creamy layer exclusion applies to SC/ST reservation in PROMOTIONS, not to initial recruitment. For initial recruitment, SC/STs can avail reservation benefits regardless of economic status.
The Supreme Court has directed the government to define creamy layer criteria for SC/STs. Typically, it would include factors like income, parents holding constitutional posts, or having already benefited from reservation in higher positions.
No. The judgment has prospective effect from 2006. Promotions already given will not be disturbed.
The State must have cadre-specific quantifiable data showing that SC/STs are inadequately represented in that particular level/cadre where reservation is being provided.

DISCLAIMER: This case summary is for educational and informational purposes only. It does not constitute legal advice. For advice on your specific situation, please consult a qualified advocate. JurisOptima is not responsible for any actions taken based on this information.

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