- 1 - HC-KAR NC: 2025:KHC:24973 WP No. 31596 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD WRIT PETITION NO. 31596 OF 2024 (S-RES) BETWEEN: MANJUNATHA M ABOUT 31 YEARS S/O MAHADEVAIAH PERMANENT RESIDENT AT NO. 78 ARALALUSANDRA VILLAGE BIDADI HOBLI, HOSUR POST RAMANAGARA TALUK & DISTRICT - 562 109 …PETITIONER (BY SRI. N G PHADKE., ADVOCATE) AND: 1. KARNATAKA STATE FINANCIAL CORPORATION KSFC BHAVAN, NO. 1/1 THIMMAIAH ROAD NEAR CANTONMENT RAILWAY STATION BENGALURU - 560 052 REP. BY ITS MANAGING DIRECTOR. 2. NAVEEN. B AGED MAJOR S/O B. BASAVARAJU NO. 536, NEAR ISKCON TEMPLE MARUTHI NAGAR, GUBBALALA BENGALURU 560 062. …RESPONDENTS (BY SRI.BIPIN HEGDE., ADVOCATE FOR R1: SRI NATARAJU T, ADVOCATE FOR R2) Digitally signed by HEMALATHA A Location: HIGH COURTOF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:24973 WP No. 31596 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE RECORDS FROM THE R-1.QUASH THE ORDER / LETTER NO. KSFC/HO/P-573/2024-25 DATED: 03.10.2024 AT ANNEXURE-F ISSUED BY THE R-1 THROUGH E-MAIL. QUASH THE ORDER / LETTER NO. KSFC/HO/P-60/3/2024-25/R-614 DATED: 08.10.2024 AT ANNEXURE-G AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD ORAL ORDER 1. Even though the petitioner seeks various reliefs, he restricts his prayer to prayer No.(iv). 2. The case of the petitioner is that respondent No.1- Karnataka State Financial Corporation (KSFC) issued a recruitment notification for the post of Deputy Manager (Finance and Accounts), as per Annexure-A. Pursuant to the said notification, the petitioner, who is an eligible General Merit candidate, applied for the said post and opted for both the Rural and Kannada Medium quotas. Thereafter, the petitioner was called for an interview and produced all the original documents, except for the Non- - 3 - HC-KAR NC: 2025:KHC:24973 WP No. 31596 of 2024 Creamy Layer Certificate, which he did not possess at the time. Subsequently, a provisional selection list was issued vide Annexure-D. As per the provisional list, the petitioner secured the highest marks 71.14 and was shown to have been selected under the GM-Rural category. Following this, an appointment order was issued vide Annexure-K, directing the petitioner to produce the Non-Creamy Layer Certificate in support of his claim under the Rural quota. Aggrieved by the same, the present petition is filed. 3. Learned counsel for the petitioner has submitted that, under the notification issued vide Annexure-A, the eligibility condition prescribed for the post of Deputy Manager (Finance and Accounts) is that the candidate must have two years of experience in development banking, reputed financial institutions, commercial banks, or any reputed company registered with the Registrar of Companies, including LLPs. The petitioner, having experience as an Assistant Manager at Bank of Baroda, enclosed the relevant experience certificate along with his - 4 - HC-KAR NC: 2025:KHC:24973 WP No. 31596 of 2024 application. Since the notification required only two years of experience, the respondent cannot insist upon the production of a Non-Creamy Layer Certificate for a candidate claiming selection under the rural quota. In support of his contention, learned counsel has relied on the judgment of this Court in Karnataka Public Service Commission v. K. Sharada and Others, reported in ILR 2016 KAR 1315. Hence, he sought for allowing the writ petition. 4. Per contra, the learned counsel appearing for respondent No.1-Corporation has not disputed this proposition of law, in view of the judgment of the Division Bench of this Court in K.Sharada (supra). 5. Learned counsel for respondent No.2 has not disputed the said proposition of law and he has submitted that the petitioner has to be selected in General Merit- Rural category. Consequently, respondent No.2 has to be selected in General Merit-Kannada Medium category. - 5 - HC-KAR NC: 2025:KHC:24973 WP No. 31596 of 2024 6. Heard the learned counsel for the parties. Perused the writ petition papers. 7. It is not in dispute that, pursuant to the notification at Annexure-A, the petitioner applied for the post of Deputy Manager (Finance and Accounts) under the General Merit Rural as well as Kannada Medium quota. As per the provisional selection list at Annexure-D, the petitioner secured the highest marks (71.14) and was ranked first on the list. Consequently, he was selected under the General Merit Rural quota. Pursuant to that, the appointment order was issued as per Annexure-K. In that appointment order, the petitioner was directed to produce a Non-Creamy Layer Certificate, as his selection was under the General Merit Rural quota. 8. The Division Bench of this Court in ‘K. Sharada’ (supra) has considered the circular issued by the Government dated 30.03.2022 and in paragraph No.65 and the operative portion of the judgment, it is held as follows: - 6 - HC-KAR NC: 2025:KHC:24973 WP No. 31596 of 2024 “65. In the 25% posts earmarked for recruitment other than by way of promotion 20% is earmarked for direct recruitment in the open category. In that open category even persons who belong to Group 'B' officers who are in service are eligible to compete. However, because of the Creamy Layer Policy they would not be eligible to seek for reservation out of that 20% posts. Because in so far as 20% direct recruitment in open category is concerned, though they satisfy the condition that they belong to backward classes, they fall within the Creamy Layer Policy and, therefore, though they are eligible to compete in that category, but they will not be entitled to reservation. As opposed to that in so far as recruitment to 5% which is exclusively earmarked for in-service candidates is concerned, again among that 5% posts have to be filled up according to the reservation policy of the Government. It is here Note 1 is attracted. When the direct recruitment to posts insist on a prescribed period of service in a lower post then the said policy is not attracted. Though in the instant case no prescribed period of service in the lower post is prescribed, unless he is in-service he cannot apply as against that 5% posts reserved for inservice. Even a person who has put in one day of service, would be an "inservice candidate". In other words, the qualification prescribed or the eligibility criteria prescribed for applying against this - 7 - HC-KAR NC: 2025:KHC:24973 WP No. 31596 of 2024 5% post is, he must be in-service. It is immaterial the period of service in the lower post he has completed. Any other interpretation would lead to a situation where the posts earmarked for backward community among this 5% and rural candidates cannot be filled up from the cadre of Assistant Engineers as all Assistant Engineers are Group 'B' officers. The word "prescribed period of service" in the Government Order if it is not understood to mean as person "in service", the very object of reservation made to backward classes belonging to II-A, II-B, III-A and III-B would be frustrated. As is clear from what has transpired after the selection, in category II-A, 2 posts, category II-B, 2 posts, category III-A, 1 post and category III-B, 1 post were reserved. As there were no applicants at all in these categories, they have been converted into general merit. Only in case of III-B there was one candidate available. Therefore out of 8 posts which are marked for backward caste and GM, only one candidate has been selected in the said category and the remaining 7 posts are sought to be filled up by general merit category. Therefore, the Court should place such interpretation of this Government Order which contains the policy of the Government, so that the real object is achieved and what is sought to be given in one hand should not be taken away in the other hand. If a purposeful construction is not given - 8 - HC-KAR NC: 2025:KHC:24973 WP No. 31596 of 2024 to the words "prescribed period of service" in the Govt. order and a literal meaning is given, it would defeat the very object of reservation. Therefore, as rightly held by the Tribunal any interpretation that would lead to absurdity is to be avoided and if two interpretations are possible, that interpretation which would advance the cause of justice and extend the benefit of reservation, is to be preferred, keeping in mind the doctrine of purposive construction and the recommendations of the Backward Class Commission and the principle underlining this reservation coupled with the fact that there are sufficient number of backward community candidates are in the services it would be just and proper for us to accept the interpretation placed by the Tribunal as against the interpretation sought to be placed by the KPSC. That would serve the cause of justice. In fact after the order is passed by the Tribunal, the Government has accepted the interpretation. They are not aggrieved. They are not challenging the same. Under these circumstances, we are of the view that no exception could be taken to the finding recorded by the Tribunal on this question. xxxx xxxx - 9 - HC-KAR NC: 2025:KHC:24973 WP No. 31596 of 2024 ORDER In view of the finding recorded by us on the question of relaxation of age prescribed affirming the order of the Tribunal, the KPSC is directed to give the benefit of age relaxation to the applicants before the Tribunal, namely Sri S.R. Ravichandra and Sri K.C. Shivashankar in terms of this order. In view of the finding of the Tribunal as well as by this Court that the Creamy Layer Policy is attracted to in-service candidates as the said Government Order is made mutatis mutandi applicable to General Merit (rural) candidates, the benefit of the order of the Tribunal and this Court is to be extended to General Merit (rural) candidates under the in- service quota also. The petitioner in W.P.No. 13191/2009 G Kumar though his application is rejected by the Tribunal, he would be entitled to the benefit of reservation under Category IIA without applying the Creamy Layer Policy to him. Writ petitions are dismissed. Parties to bear their OWN COSTS.” - 10 - HC-KAR NC: 2025:KHC:24973 WP No. 31596 of 2024 9. From the above judgment, it is very clear that the respondents have issued notification for recruitment to the post of Deputy Manager (Finance and Accounts) and the eligibility criteria for applying to the post is that the candidate must have two years of experience in development banking, reputed financial institutions, commercial banks, or any reputed company registered with the Registrar of Companies, including LLPs. The condition of the said eligibility in the notification for the said post is as follows: “ACA/ ICWA/ MBA or M.Com (with 60% and above marks for General Merit and Backward Class & 55% and above for SC/ST candidates) with 02 years experience in development banking/reputed financial institutions/ commercial banks/any reputed Company which is registered with the Registrar of Companies including LLPs. CFA/PGDMA from IIMs with minimum of two (02) years experience in any. With - 11 - HC-KAR NC: 2025:KHC:24973 WP No. 31596 of 2024 Hands on experience in using personal computer covering Windows, Spreadsheet, Word Processor, Database and computerized accounting systems.” 10. Since the respondents have sought for two years experience in the development banking, reputed financial institutions, commercial banks, or any reputed company registered with the Registrar of Companies, including LLPs, they cannot insist for production of Non-Creamy Layer Certificate for the candidates as he has applied under the General Merit Rural quota. 11. In view of the above, condition No.3 in Annexure-K cannot be insisted. Accordingly, I pass the following order: ORDER a) The writ petition is allowed. b) The respondent-Corporation is directed to consider the case of the petitioner and not to insist the petitioner for production of - 12 - HC-KAR NC: 2025:KHC:24973 WP No. 31596 of 2024 Non-Creamy Layer Certificate to consider in General Merit Rural quota. All pending IAs, if any, stand disposed of accordingly. Sd/- (H.T. NARENDRA PRASAD) JUDGE HA LIST NO.: 1 SL NO.: 33