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PETITIONER: J.G. PRASADA RAO ETC. ETC.

       Vs.

RESPONDENT: THE SECRETARY TO GOVERNMENT AND ORS. ETC. ETC.

DATE OF JUDGMENT07/09/1995

BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. HANSARIA B.L. (J)

CITATION:  1996 SCC  (7)  51        JT 1995 (7)    34  1995 SCALE  (5)459

ACT:

HEADNOTE:

JUDGMENT:                           W I T H           CIVIL APPEAL NOS. 8417-18 & 8419 OF 1995    (Arising out of SLP (C) Nos.7050-7051/95 and 9506/95)                          O R D E R C.A.4172/95      We have heard the appellant in person, who prepared the case thoroughly  and argued  very neatly  and  meticulously, point by  point, making  analytical presentation of the case with reference  to various  orders issued  by the Government and cleared the clogs crept in the controversy.      The Government  of Andhra  Pradesh  had  obtained  from Accountant  General,   A.P.,  the   services  of  Divisional Accountants, SAS  Accountants and  SAS  passed  Auditors  on deputation   to   the   State   Government   as   Divisional Accountants. A  three member  Committee appointed  to advice the Government on the desirability and feasibility to absorb them in  the State  service, had recommended for absorption. On consideration  thereof,  in  G.O.  Ms.  304  Finance  and Planning, dated November 20, 1979, Government had decided to take them  over  from  the  administrative  control  of  the Accountant General, A.P. subject to the terms and conditions stated therein.      The cadre of the Divisional Accountants was constituted with the  Finance and  Planning Department of the Government to exercise  administrative control.  It called  for options from them  which were  subject to  their  accepting  service conditions of  the State Government and the State’s scale of pay. Admittedly,  all the  deputationists had  opted for and the service  was constituted  w.e.f.  January  1,  1980.  In paragraph 8 thereof it was stated that :      "The inter  se seniority  of  Divisional      Accountants, Selection  Grade Divisional      Accountants and  Section Officers/S.A.S.      Divisional  Accountants   borne  on  the      Accountant General’s cadre of Divisional

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    Test passed Divisional Accountants taken      over to  the State Service will be fixed      in the  State cadre based on their inter      se seniority  as Divisional  Accountants      in  the  Accountant-General’s  gradation      list  on   the  date   of  taking  over.      Appointment to  the posts  of Divisional      Accountants, Grade-I shall be made based      on seniority-cum-merit.  The present pay      and Dearness Allowance actually drawn by      the          S.A.S.           Divisional      Accountants/Section Officers  under  the      Accountant-General on  the date  of take      over will  be protected  in the  case of      those  opting  to  State  Service,  when      fixing their  pay  in  the  State  D.A’s      scale  of   pay   admissible   to   them      according  to  their  seniority  in  the      gradation     list     of     Divisional      Accountants. Their  fixation of  pay  in      the State  D.A.’s scale  will be made on      the basis  of their  notional pay in the      Central D.A.’s  scale which  they  would      have drawn  but for  their promotion  as      Section    Officer/S.A.S.     Divisional      Accountants   under    the   Accountant-      General. The  difference between the pay      and dearness  allowance  drawn  by  them      under the Accountant-General and the pay      and  dearness  allowance  admissible  to      them in the State scale will be given as      personal pay  to be  absorbed in  future      increments."      G.O. Ms.  No. 290  dated 11.11.1982  was issued  by the Government exercising the power under proviso to Article 309 of  the   Constitution,  constituting  the  A.P.  Divisional Accountants Service  under the  A.P. Divisional  Accountants Officers Service  Rules, 1980  which came  into force w.e.f. January 1, 1980. In terms of G.O. Ms. No. 304, the gradation was  as   Divisional  Accountants   Grade-I  and  Divisional Accountants, Grade-II.  The Divisional Accountant Grade-I is a promotional  post from Divisional Accountant Grade-II, and Divisional Accountant Grade II are to be filled up by direct recruitment from  open market.  In Note  (1) thereof, it was stated that  "all the  Divisional Accountants Officers borne on the Accountant General Office, who exercised their option to come  over to  the State service, shall be deemed to have been  taken   over  on   1.1.80  to   the  State  Divisional Accountants officers service against grade I or grade II, as the case  may be."  In Rule  6, the  special qualifications, method of recruitment and qualifications have been mentioned as under : ------------------------------------------------------------ "Category                Method  of           Qualifications ------------------------------------------------------------ Divisional          By promotion        shall have put in Accounts                                service of not less officers                                than 3 years as Gr.I                                    Divisional                                         Accountants Officer,                                         Grade-II (Category                                         -II) and must have                                         passed the   ‘Divis                                         -ional Test’. -----------------------------------------------------------

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We are  not concerned  with  Category  II.  However,  it  is relevant to  mention about  that. With  regard  to  existing S.A.S. passed  Divisional Accounts  Officers, Accountants or SAS passed  Auditors under the administrative control of the Accountant General, A.P. prior to the take over of the cadre by the  State Government, they were directed to reckon their total service  under the  category  as  Divisional  Accounts Officers, Grade II.      In  G.O.  Ms.  No.  314  Planning  and  Finance,  dated 30.11.1982 statutory  orders under  proviso of  Article  309 were   issued   accepting   the   options   given   by   the deputationists  and   taken  over   as  Divisional  Accounts Officers Grade  I and  Grade II,  as the  case may  be.  The Notification reads thus :      "The  Senior   Grade  and  Junior  Grade      Divisional Accountants, who opted to the      State Service  consequent to  the  take-      over  of   the   cadre   of   Divisional      Accountants by the State Government from      the Accountant  General, Andhra  Pradesh      as shown  in the  Annexure are deemed to      have  been   absorbed  into   the  State      Service  subject   to  the   terms   and      conditions laid down in G.O.Ms. No. 304,      Finance  and   Planning  (Finance  Wing.      WA.1) Department, dated 20.11.1979."      Second  paragraph  thereof  states  that  Senior  Grade Divisional  Accountants  and  the  Junior  Grade  Divisional Accountants shown in the Annexure to the Order are deemed to have been  absorbed into the State Government Service in the posts shown  against their names w.e.f. 1.1.1980, subject to the terms  laid down  in G.O.Ms.  No.304. In sequel thereof, statutory  rules   were  issued  in  G.O.Ms.  No.139,  dated 30.4.1982, constituting AP Accounts Service, stating therein that Grade  I Divisional  Accountant is  a feeder  post  for appointment by  promotion to  the post  of Assistant Pay and Accounts Officer.  For promotion  as officers in Category 3, i.e., Assistant  Pay and  Accounts Officer, the proviso says that  the   service  rendered  as  Senior  Grade  Divisional Accountant after  promotion from  Grade-II  shall  alone  be taken into account by the State Government for reckoning the qualifying  service  for  promotion  as  Assistant  Pay  and Accounts Officer.      A reading  of  these  statutory  orders  vis-a-vis  the administrative decisions  taken by the Government in G.O.Ms. No.304 would  clearly establish that the deputationists, who have been  designated as  Grade I  and Grade II Officers and given their  unconditional options  for absorption  into the State Service,  were absorbed  in the "Divisional Accountant Service" constituted  by the  Government as Gr. I and Gr. II officers. The previous service rendered as either Grade I or Grade II officers has been reckoned for the purpose of their respective eligibility to the promotion to the higher cadre. But for  promotion as  Assistant pay and Accounts Officer in category III of A.P. Accounts Service, the qualifying period of service  is as  Grade I  Divisional Accountants  in  A.P. Accounts Division  Service. They must have passed Divisional Accounts test  and after  promotion as  Divisional  Accounts Grade-I must have put in the minimum qualifying service.      The question is whether the appellant is senior to some of  the   contesting  respondents.  The  contention  of  the appellant is  that by  virtue of  his passing the Divisional Accountants  test   earlier,  though  the  respondents  were holding posts  carrying higher  pay, all  of them  cannot be reckoned as  seniors to  him as some of them had passed this

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later. On  the other  hand, their  seniority requires  to be reckoned  from   the  date   of  their   passing  Divisional Accountant test. Since some had passed the test later to him they are juniors to him.      It is  contended on  behalf of  the respondents that in G.O.Ms.  No.304,   in  particular  para  8,  it  is  clearly mentioned that  the S.A.S.  Accounts  Officer/S.A.S.  passed Auditors, who held the higher scale of pay since declared to be entitled  to Grade-I,  they are  entitled, though some of them passed  the Divisional  Accountant test  later  to  the appellant, to  be promoted as Grade-I Divisional Accountants and some  of them  had been so promoted, and so, they cannot be made  juniors to  the appellant.  At this juncture we may make it  clear that  respondent Nos.  3 to  6, 10 and 11 had passed Divisional  Accounts test  earlier to  the appellant. Respondent  Nos.   7,9,12  and   13  had  admittedly  passed Divisional Accountant  test subsequent  to the appellant. It is also  not in dispute that the appellant was promoted as a Divisional Accountant  Grade I  on 6.7.1987 while respondent Nos. 7, 9, 12 and 13 were promoted on July 27, 1991.      The question,  therefore, is who, among them, is senior to each  another. Prior  to taking  over on January 1, 1980, admittedly, all  of them  were governed by the Manual of the Accountant General  issued by  the CAG  of India.  Chapter V deals with  Subordinate Accounts  Service which  consists of the confirmed  apprentices, SAS  Accountants  on  probation, Accounts  Clerks   in  their   office  and   the  Divisional Accountants under  their control.  Para 320  of  the  Manual prescribes the method of computation of seniority on passing the Divisional Accountants test which reads thus :      "320. Clerks  recruited from sources (1)      and (2)  who pass  the  Divisional  Test      Examination (paragraph  322) are  placed      on a  waiting list but allowed to retain      their   liens   on   their   substantive      appointments till  they are confirmed in      the Divisional Accountants’ Cadre. Their      relative seniority  will  be  determined      with reference  to  the  date  of  their      passing the  Divisional Test Examination      (the Viva-Voce part of it in the case of      S.A.S. Examination  passed clerks).  The      Divisional Accountants who pass the same      Divisional Test  will be  senior to  all      the Divisional  Accountants who  pass in      subsequent tests. The inter se seniority      of Divisional  Accountants who  pass the      same test  will be  decided on the basis      of the  marks obtained  by them  in  the      aggregate   in   the   Divisional   Test      Examination." The rest  of the  para being not material for the purpose of this case is omitted.      It would  thus be  clear that the S.A.S. Accountants on probation, Divisional  Accountants and Clerks who passed the SAS examinations  are the  feeder posts  for the Subordinate Accountants  Service.  Similarly,  in  the  statutory  rules issued, referred  to earlier,  for  Grade  I  posts  of  the Divisional Accountants, Grade II is the feeder post. Passing of Divisional Accounts test is a pre-condition for promotion as Divisional  Accounts Grade  I.  Paragraph  320  expressly prescribes that  the date  of passing Division Accounts test is the  criteria for  determination of  inter se  seniority. Though the  SAS Accounts  Officers or  the clerks who passed the SAS  examinations had held higher scale of pay or higher

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responsibility, to  determine their inter se seniority, date of passing  Divisional Accounts  test is  the criterion. The inter se  seniority shall  be reckoned with reference to the date on  which the  respective candidate passed the Accounts test.      In view of the admitted position that the appellant had passed  the   Accounts  test   earlier  to   the   aforesaid respondents, he is entitled to be treated as senior to these respondents in  the Grade  II post of Divisional Accountant, in the list sent by the Accountant General for absorption in the Divisional  Accountants Service constituted by the State Government. The  factum of  drawing higher  pay  or  holding higher responsibilities  became irrelevant  due to operation of the  rules. The  Government, therefore,  is  directed  to reckon inter  se seniority with reference to the date of his passing Accounts  test and  inter  se  seniority  should  be determined in the respective Annexures prepared by the State accordingly. The  reliance on G.O.Ms. No.449 dated 16.9.1983 for upgradation into Divisional Accountants Grade I does not have  any   relevance  as  regards  the  service  under  the Divisional Accountants Service Rules of the P.W.D.      The  appeal   is  accordingly   allowed  but   in   the circumstances without costs. C.A. NOS.8417-18 & 8419/95 @ SLP (C) NOS.7050-51/95 AND 9506/95      Leave granted.      In view  of the judgment rendered above in C.A. 4172 of 1995, the appeals are allowed. No costs.