16 February 1990
Supreme Court
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M.P. JUNIOR ENGINEERS' ASSOCIATION ANDSANGARSH SAMITY & ORS Vs STATE OF MADHYA PRADESH & ANR.

Case number: Appeal (civil) 1191 of 1990


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PETITIONER: M.P. JUNIOR ENGINEERS’ ASSOCIATION ANDSANGARSH SAMITY & ORS.

       Vs.

RESPONDENT: STATE OF MADHYA PRADESH & ANR.

DATE OF JUDGMENT16/02/1990

BENCH: RANGNATHAN, S. BENCH: RANGNATHAN, S. RAMASWAMI, V. (J) II

CITATION:  1990 AIR 2010            1990 SCR  (1) 424  1990 SCC  Supl.  229     JT 1990 (1)   374  1990 SCALE  (1)219

ACT:     Madhya  Pradesh  Irrigation  Department  (Non  Gazetted) Service Recruitment Rules, 1969: Rule 7(4)--State Government competent  to  promote members of  Non-Gazetted  Service  to Gazetted  Service--Cadre of J. E. ’s  abolished--Promotional chances not to be affected.

HEADNOTE:     In August 1982 the Government of Madhya Pradesh  decided to  abolish the Madhya Pradesh Lift Irrigation  Corporation. It was also decided to merge the surplus staff of the Corpo- ration in the equivalent posts of the Irrigation  Department of  the  State  Government. Accordingly,  with  effect  from 8.10.1982 the appellants, who were serving as Senior Techni- cal  Assistants (S.T.As.) in the Corporation, became  Junior Engineers  in the Irrigation Department but their  seniority therein  was fixed below the erstwhile Junior  Engineers  of the State Department. For this purpose, an equivalent number of posts were deemed to have been created in the dying cadre of Junior Engineers. Similarly, the Junior Technical Assist- ants in the Corporation were absorbed in the lower cadre  of Sub-Engineers.     The Junior Engineers of the State Department on  comple- tion  of two years’ service as Junior Engineers, were  enti- tled to be considered for promotion to the gazetted post  of Assistant  Engineers. Sometime in 1984, the  appellants  who were at the bottom of the seniority list of Junior Engineers became eligible for promotion as Assistant Engineers.  Their legitimate  claims in this regard were being stalled by  the State,  and so the appellants filed a writ petition  in  the High Court of Madhya Pradesh in 1986.     Later,  the whole scheme of merger, as envisaged in  the order dated 8.10.1982, was sought to be upset to the  detri- ment  of  the  appellants, and towards that  end  the  order issued on 8.10. 1982 was amended on 1.3.1986. The effect  of this amendment was that the Senior Technical Assistants were to  be absorbed in the lower posts of  Sub-Engineers  retro- spectively with effect from 8.10.82. The amendment  however, provided  that they shall be eligible for promotion  to  the posts of Assistant 425

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Engineers  from  the quota of Graduate  Sub-Engineers.  This amendment  vitally affected the interests of the  appellants in  so  far as their status and chances  of  promotion  were concerned.     Having failed before the High Court, the appellants have come to this Court by way of special leave.     Before  this  Court it was contended on  behalf  of  the appellants that they having been given the right at the time of absorption in 1982 that they will be eligible for  promo- tion  in the same way as the erstwhile Junior  Engineers  of the  State Department, this right could not be done away  by invoking an earlier amendment of the rules.     On  behalf  of the respondent State it  was  inter  alia contended  that (1) the decision of the State Government  to absorb the appellants as Junior Engineers had overlooked the fact  that on 8.10.1982 there was no cadre of  Junior  Engi- neers  because that cadre had been abolished in  July  1979, and  therefore  this mistake was rectified  on  1.3.1986  by absorbing  the  appellants in the lower cadre  of  Sub-Engi- neers;.(2) the appellants when they opted to join as  Junior Engineers were aware that according to the rules  prevailing on  that date there was no avenue of promotion for  them  as Assistant Engineers; (3) after 27.7.81 the relevant recruit- ment  rules had been amended which made it clear that  after that  date there could be no promotion to the posts  of  As- sistant Engineers from amongst Junior Engineers; and (4) the Junior Engineers belonging to the State Service had a  right of  promotion earlier and this was continued even after  the amendment whereas the appellants became Junior Engineers  at a time when there was no further promotion available to them and this made all the difference. Allowing the appeal, this Court,     HELD:  (1)  The assumption of the respondents  that  the cadre  of Junior Engineers had ceased to exist  long  before the  absorption  of the appellants into  the  Department  is incorrect.  Though  the decision to abolish  the  cadre  was taken  in  1979 and the existing posts were  converted  into those of Assistant Engineers/sub Engineers on 27.5.1980, the cadre  did not die, for the Junior Engineers of the  Depart- ment  who  were then functioning continued  to  function  as before  until they were promoted in due course as  Assistant Engineers. [438E-F]     (2) It is also not correct to say that this crucial fact had been overlooked at the time of passing the merger  order of 8.10.82. On the 426 contrary,  the  State  was fully conscious  of  its  earlier decision and the order of 8.10.82 specifically mentions that the  posts of Senior Technical Assistants will be merged  in the  posts of Junior Engineers and an equivalent  number  of posts  shall  be deemed to have been created  in  the  dying cadre of Junior Engineers. [438F-G]     (3)  Rule 6(iv) of the Non-Gazetted Service Rules,  read with  Schedule I, clearly empowered the Government,  in  the exigencies  of  the  situation, to continue  the  cadre  for limited  purposes  and  augment the same by  the  number  of Senior  Technical Assistants absorbed from the  Corporation. [439H; 440A]     (4)  On the terms of the relevant rules as on  the  lan- guage of the order of 8.10.1982, the appellants, viz. Senior Technical  Assistants  absorbed from  the  Corporation  were constituted  as  a part of the cadre  of  Junior  Engineers, placed  on  complete par with the Junior  Engineers  of  the department already in service and given the same promotional eligibility and opportunities as the latter. [440A-B]

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   (5)  It was open to the State, in view of rule  7(4)  of the  Gazetted Service Rules of 1968, to promote  members  of the  non-gazetted services also to the Gazetted  Service  to the extent of a prescribed quota. The restricted language of rule  7, cannot therefore, be construed in such a way as  to render  redundant  the specific provision  in  the  Schedule entitling several persons from the Non-Gazetted services  to promotion. [440G-H]     (6)  In interpreting these rules and  Government  orders one should bear in mind that the promotional stipulations in Schedule  II should be read in the light of rule 7(4)  which permits a wide latitude to the Government in making recruit- ments,  by  way  of promotion, even otherwise  than  in  the manner  outlined  in rule 7(1). Reading the  rules  and  the Government orders issued from time to time harmoniously, the effect of the cabinet order of July 1979 was that all J.Es., in  position as such, should continue to be  promoted  until all of them became Assistant Engineers. [442F-G]     (7) It is seen from the records that such of the  Junior Engineers,  belonging  to the cadre as had been  in  service with the State Department have continued to get their promo- tions  even after the 1981 amendment. If that be  so,  then, clearly the Department cannot discriminate as between  offi- cers  belonging to the same cadre by promoting some of  them and  denying promotion to others. A  discrimination  between them  would be totally arbitrary and contrary to the  scheme of absorption envisaged in 1982. [441F-G; 442B]    427     (8)  The truth of the matter is that, when abolition  of the  cadre  of Junior Engineers was thought  of,  the  State decided  that  this should not affect  the  existing  Junior Engineers  and  their promotional chances. Again,  when  the merger of the Corporation and State services was thought of, the decision was that the Senior Technical Assistants should be  placed  on par with the Junior Engineers  of  the  State Service. This was a conscious and equitable decision and  to go  back  upon it has resulted in  arbitrary  discrimination against  the appellants. By the decision of 1986, they  lose their  status  as Junior Engineers (and are equated  to  Sub Engineers,  which is the status also accorded to the  Junior Technical  Assistants, their subordinates in  the  erstwhile Corporation), they lose their right to promotion, they  lose seniority by being placed at the bottom of the Sub Engineers of the State services, and the promotional quota now  allot- ted to them is illusory. [443B-D]     (9)  Gross injustice has been done to the appellants  by the  decision  of  1.3.1986.  This  decision  is   therefore quashed. Accordingly, the appellants will be entitled to  be considered for promotion as Assistant Engineers in the  same manner and to the same extent as the Junior Engineers of the State  service have been considered and not on the basis  of the  percentages  prescribed  for Sub  Engineers  under  the amended rules. [443F-G]

JUDGMENT:     CIVIL  APPELLATE JURISDICTION: Civil Appeal No, 1191  of 1990.     From  the  Judgment  and Order dated  15.7.1988  of  the Madhya Pradesh High Court in M.P. No. 600 of 1985. A.K. Sen, A.K. Gupta and N.P. Mahendra for the Appellants.     R.B.  Datar, Satish K. Agnihotri, Devender Singh,  Ashok Singh and R.B. Misra for the Respondents. The Judgment of the Court was delivered by

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   RANGANATHAN,  J. The controversy in this  Special  Leave Petition  arises  out  of  the  merger,  with  effect   from 1.10.1982,  of the staff of the Madhya Pradesh Lift  Irriga- tion  Corporation (hereinafter referred to as ’the  Corpora- tion’)  with that of the Irrigation Department of the  State Government  consequent on the abolition of the  Corporation. We  have heard counsel on both sides and we are  of  opinion that  these  matters should be disposed of finally  even  at this 428 stage.  We therefore grant leave in the Special Leave  Peti- tion and proceed to dispose of the appeal.     Appellants 2 to 17 and certain other writ petitioners in the  High Court were serving as Senior Technical  Assistants (S.T.A.)  in the Corporation. The cadres of S.T.As. and  the lower cadre of Junior Technical Assistants (J.T.As.) in  the Corporation  were equivalent respectively to the  cadres  of Junior  Engineer  (J.E.)  and Sub-Engineers  (S.E.)  in  the Irrigation Department of the State. It is common ground that the qualifications for appointment to the two sets of  posts were the same and that their pay scales were also the  same. The  appellants  claim  that they are  entitled,  after  the merger of the Corporation into the Irrigation Department, to be treated as Junior Engineers and considered for  promotion as Assistant Engineers on completion of two years of service but that this avenue of promotion is being denied to them by the State.     To  appreciate the above contention, it is necessary  to set  out  some historical background of the  cadres  in  the State  Department. Initially the Junior Engineer’s  post  in the  State Government was a non-gazetted post,  governed  by the  Madhya  Pradesh  Irrigation  Department  (Non-Gazetted) Service  Recruitment Rules, 1969. The Junior  Engineers,  on completion  of two years’ minimum service, were entitled  to consideration for promotion to the gazetted post of  Assist- ant Engineer, a post governed by the Madhya Pradesh  Irriga- tion Engineering Service (Gazetted) Recruitment Rules, 1968. On  March  19, 1973 the posts of Junior Engineers  were  de- clared  to be gazetted posts. 75% of the posts of  Assistant Engineers  could  be  filled up by  promotion  from  amongst Junior  Engineers. On January 1, 1978 the Junior  Engineer’s post was once again converted into a non-gazetted post.  The quota for such of those Junior Engineers as were working  as gazetted officers immediately before the issue of this order was  retained at 75% as before for a period of two years  by which  time it was expected that all of them would get  pro- moted  as  Assistant Engineers. But for this, the  posts  of Assistant  Engineers were to be filled up equally by  promo- tion  from  subordinate cadres and direct  recruitment.  The promotion quota was distributed among the subordinate cadres in the following proportion:   Junior Engineers (Non-Gazetted)          -- 25%   Overseers (Sub-Engineers)                -- 20%   Head Draftsman/Draftsman                 -- 5% 429     In July, 1979 the Government decided to abolish the post of Junior Engineers in the State Irrigation Department.  The relevant  cabinet order set out the following  terms  there- fore: 1.  The posts of Junior Engineer in the three works  depart- ments  should be abolished. The Junior  Engineers  presently working in these departments shall continue to work in their existing  payscales  under the existing  service  conditions till their promotion. (emphasis added) 2. The quota of recruitment for the post of Assistant  Engi-

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neer, which is at present 50% should be raised to 75%. 3.  25%  posts in the Sub-Engineer cadre be  converted  into selection grade posts and selection for the selection  grade post should be made on the basis of merit-cum-seniority. 4.  The  quota  prescribed for promotion  of  the  Draftsmen should  be  reduced  from 5% to 3%. Promotion  quota  of  2% should  be  reserved for those  Sub-Engineers/Draftsmen  who obtain degree while in service. 5.  The  posts  of Junior Engineer  cadre,  which  presently exists,  should  be converted into the  posts  of  Assistant Engineers  and  Sub-Engineers with the  concurrence  of  the finance department". Eventually,  the State Government decided on 27th May,  1980 that  the  941 posts of Junior Engineers in  the  Irrigation Department  should be abolished by converting 658  of  those posts  into posts of Assistant Engineers and 233 posts  into posts  of  Sub-Engineers (Overseers).It  must  be,  however, pointed  out  that, though the existing posts of J  .Es.  or S.Es. stood abolished from 27.5. 1980, in fact, a number  of Junior Engineers appointed earlier continued to function  as before,  under the memorandum of July 1979, until  they  re- ceived  promotions  as Assistant Engineers (A.Es. )  in  due course.     We  now  come to the details of the merger  between  the Corporation  and  the State Department. In  August,  1982  a decision  was taken to abolish the Corporation. The  Govern- ment decided on the merger the surplus staff of the Corpora- tion  in the Irrigation Department and 8.10.82  was  decided upon  as the effective date of merger for purposes.  We  are concerned  here with the formula for transition set  out  in the opening para of a memorandum of the above date regarding the 430 merger of the posts of S.T.As. and J.T.As. It read thus:       "2.  Senior Technical     Sectioned posts--Nil            Assistants           The above employees may be            Equivalent Post-     merged in the posts of            Junior Engineer      Junior Engineers and an            (Rs. 360-650)        equivalent number of posts                                 may be deemed to have been            27 posts-Civil       created in the dying cadre            Posts-Electrical     of Junior Engineers.                 (Mechanical)            posts-Geologists            post-Geophysist      3.  Junior Technical     Sanction--30 posts (reserved).          Assistants Equivalent  These may be merged against          post: (Sub-Engineer    the posts of Sub-Engineers          (Rs.280-480)           which have been obtained by                                 conversion of the posts of          62 Posts-Civil         Junior Engineer. The posts                                 reserved    for    Scheduled                                 Castes and Scheduled  Tribes                                 may  be made unreserved  and                                 appointments  may  be   made                                 against them also."     The memorandum of 8.10.1982 was followed up by a  commu- nication  dated  10.11.1982. The enclosures to  this  letter described  the  absorptions as "ad hoc" but  this  word  was deleted on 29.1. 1983 with reference to the posts with which we are concerned, making it clear that the absorption was to be  permanent. The letter set out three conditions  for  the merger which admittedly are fulfilled by the appellants: (i)  The staff will be absorbed only subject to  their  ful- filling the qualifications prescribed for the posts  against

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which they are to be absorbed; (ii) The inter-se seniority of the employees of the Corpora- tion shall be in accordance with the seniority list  cleared by  the  Managing Director. The inter-se  seniority  of  the departmental employees and the employees of the  Corporation shall  be  determined in accordance with the orders  of  the Government; and 431 (iii) It was open to an employee of the Corporation to  join the Government department or not to do so, for the employees were  to  be required to join duties at the place  of  their posting  within 20 days from 10.11. 1982, failing  which  it was to be deemed that the appointment was not acceptable  to them. The  seniority rule was announced much later, on  16.4.1984. It said: "The regular officers/employees of the Corporation shall, in the event of merger in the Irrigation Department, be consid- ered  as Junior to the permanent officers/employees  of  the Department and their seniority in the lists of the temporary officers/employees of the department, shall be fixed on  the basis of the dates of assuming office, without affecting the inter-se seniority of the Corporation".     The result of all this, according to the appellants, was that   the  S.T.As.  of  the  Corporation   became,   w.e.f. 8.10./982,  J.Es.  of  the department  but  their  seniority therein was below the J.Es. of the State Department who  had been  in  office in July 1979 and continued to  function  as such  even thereafter. It is stated that these Junior  Engi- neers  in  the Department were being gradually  promoted  as A.Es.  and it was only sometime in 1983 that the  appellants who were at the bottom of the seniority list became eligible for  promotion  as  A.Es. Their legitimate  claims  in  this regard,  it is alleged, were being stalled by the State  and so the appellants filed a writ petition in the High Court in 1985.     Sometime later, the appellants allege, it came to  light that the State, far from giving the petitioners their legit- imate  entitlement,  was planning a voiteface to  upset  the whole  scheme of merger as envisaged earlier, to the  detri- ment of the applicants. This they did, it is said, by  issu- ing a memo on 1.3. 1986 which read thus: "1.  The State Government amends point No. 2 of paragraph  1 of  the orders issued vide Irrigation Department’s Memo  No. 22(C)/43/32/P/37 dated 8.10.1982 as follows:       2, Senior Technical   ] [         The above employees       Assistants            ] [         may be absorbed on       equivalent to Junior  ] [         the post of Sub-       Engineer (Rs.350-650) ] [          Engineer protecting 432                                   the pay which they                                   were drawing       27 posts--Civil       ] [   previously. Such       34 posts--Electrical  ] [   absorbed employees                                   shall be eligible for                                   promotion to the                                   posts of A. Es. from                                   the quota of Graduate                                   Sub-Engineers. 2. These orders shall come into effect from 8.10. 1982." This order vitally affected the interests of the  appellants in four respects-- (a) Having been absorbed into the State Department as  J.Es. in  1982,  they were suddenly demoted to the post  of  S.Es. retrospectively, with the "saving grace" that their pay  was

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protected; (b)  Under the seniority rules of 1984 earlier referred  to, they  were at the bottom of the list of J.Es. but above  the S.Es.  But now they became juniors to all the  Sub-Engineers of the Department; (c) While previously a substantial quota for promotion  from J.Es.  to  A.Es. was applicable to them, the quota  now  got reduced (as will be explained later) to 4%; and (d) While previously an experience of 2 years was sufficient for their promotion, now they had to have a minimum  experi- ence of 8 years (as will be seen later). The combined effect of all this is, it is alleged, that  the appellants will become eligible for consideration for promo- tion as A.Es. in the distant future as follows: ----------------------------------------------------------    Year              No. of posts available Graduate                      Sub-Engineers quota ----------------------------------------------------------   1989                 1   1997                 3   2004                 2   2007                 1   2008                 1 433 In  other  words,  only 8 persons will  become  eligible  at distant  dates  whereas all of the  appellants  should  have received promotions gradually since 1983 as and when  vacan- cies  occurred. The appellants contend that this is a  great travesty  of justice which should be set right  by  quashing the  decision of 1.3. 1986 and restoring the position as  it actually prevailed on 8.10.1982 at the time of the merger.     Sri  Datar attempted to counter this--what  prima  facie appeared  to be a just and reasonable--plea with  his  usual persuasiveness. He urged that the contentions of the  appel- lants overlook four important basic facts and that, if these are kept in mind, it will be seen not merely that no  injus- tice has been done to the appellants but that, in fact,  the State  has  come to their rescue by providing an  avenue  of promotion  where  none existed. These basic  facts  are,  he says: (1)  As from 27.5.1980, there was no cadre of  junior  engi- neers  at  all  in the State service. That  cadre  had  been abolished  by  the decision of 1979 and the  conversion,  on 27.5.1980,  of  the existing posts of J.Es-  into  those  of A.Es/S.Es. (2)  There had been an amendment on 27.7.81 to the  relevant recruitment rules which made it clear that, after that  date at least, there could be no promotions to the posts of A.Es. from among J.Es. (3)  When the Corporation was abolished in 1982,  the  State Government  could  have dispensed with the services  of  the appellants.  Instead, they considered the appellants’  cases sympathetically  and decided to absorb them into  the  State service. In doing so, they purported to absorb them as J.Es. overlooking  that,  as on 8.10.1982, there was no  cadre  of J.E.  in  the  State service. It is this  mistake  that  was rectified  on 1.3.1986 by absorbing the appellants as  S.Es. (instead  of  as  J.Es.) but protecting the  pay  they  were drawing. (4) The petitioners had an option to join or not to join the State  service  on 8.10.1982 as J.Es. When they  decided  to join, they were aware that, according to the rules  prevail- ing on that date, there was no avenue of promotion for  them as A .Es.     The  net  result of these considerations  is,  says  Sri

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Datar,  that, instead of completely denying  the  appellants any  promotion altogether (as there was no right, under  the rules, to any such promotion), 434 the  State has, equitably, decided to confer on these  offi- cers a right of promotion by treating them as S.Es. This was a generous gesture on the part of the State. The  appellants should have been happy that an avenue for promotion had been opened  out  to them, instead of being  disgruntled  on  the assumption that their promotion chances had dwindled by  the action  of  the State. This was the only reasonable  way  of resolving  the  impasse that faced the  appellants  and  the authorities.     Since  Sri Datar has referred to the rules, it  will  be appropriate  to pause here and notice the  relevant  service rules and the amendments made thereto:     Taking up the Non-Gazetted Service Rules of 1969  first, they  provided,  in Schedule I--read with  rule  5--for  269 posts of Civil Engineers and 13 posts of Electrical/Mechani- cal  Engineers in the cadre of Junior  Engineers.  Curiously enough  these rules appear to have remained  unamended  not- withstanding the decision of 1979 to abolish these posts and the  office  order  of 1980 converting  these  posts  (these appear to have numbered 941 at the relevant time) into A.Es. or S.Es.     Turning next to the Gazetted Service Rules, the  follow- ing provisions thereof are relevant: Rules 7. Method of recruitment---- (1)  Recruitment to the service, after commencement  of  the rules, shall be by the following methods, viz.: (a) by direct recruitment by selection; (b)  by promotion of substantive/officiating member  of  the M.P. Irrigation Engineering Service (Gazetted);and (c) by transfer of persons who hold in a substantive capaci- ty  such posts in such services as may be specified in  this behalf. (2)  The  number of persons recruited under  clause  (b)  or clause (c) of sub-rule (1) shall not at any time exceed  the percentage shown in Schedule II of the number of duty  posts (as specified in Schedule I). 435 (3) Subject to the provisions of these rules, the method  or methods  of  recruitment to be adopted for  the  purpose  of filling any particular period of recruitment, and the number of  persons to be recruited by each method, shall be  deter- mined on each occasion by the Govt. in consultation with the Commission. (4) Notwithstanding anything contained in sub-rule (1) if in the  opinion of the Govt., the exigencies of the service  so require, the Govt. may, after consulting the General  Admin- istration  Department, adopt such methods of recruitment  to the service other than those specified in the said sub-rule, as it may by order issued in this behalf, prescribe.      Rule  15. Conditions of eligibility  for  promotions(1) Subject  to  the provisions of sub-rule (2),  the  Committee shall consider the case of all persons who on the 1st day of January  of that year had completed the prescribed years  of service  (whether officiating or substantive) in  the  post/ service  mentioned in column 2 of Schedule IV or  any  other post  or posts declared equivalent thereto by the  Govt.  as under  and  are  within the zone of  consideration,  as  per subrule (2)-- (i) Sub-Engineers, Head Draftsman/Draftsman to the posts  of Assistant  Engineers--Minimum  service of 12 years  as  Sub- Engineers, Head Draftsman/Draftsman.

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    Provided  that  a  Sub-Engineer  and  Head   Draftsman/ Draftsman  who has completed a minimum of 8  years’  service and possesses degree in Civi/Electrical/Mechanical Engineer- ing  from  recognised university or  qualification  declared equivalent thereto by the State-Govt., will also be eligible for promotion to the post of Assistant Engineer and will  be considered  each time just after the zone  of  consideration and  then  final selection just will be made from  both  the groups on the basis of merit. For example, if ten posts  are vacant  in  the  cadre of Asstt. Engineer to  be  filled  by promotion of Sub-Engineer, then 10x5=50 diploma holder  Sub- Engineers from working list be considered first and thereaf- ter the eligible graduate Sub-Engineers be considered in the order of their seniority for promotion. 436 (ii)  Junior Engineers to the posts of  Assistant  Engineers minimum service of 2 years as Junior Engineer. XXX XXX XXX           Rule   18. Select list--(1)The  Commission   shall consider  the list prepared by the Committee along with  the other  documents received from the Govt. and unless it  con- siders any change necessary, approve the list. (2)  If  the Commission considers it necessary to  make  any changes  in the list received from the Govt. the  Commission shall  inform  the Govt. of the changes proposed  and  after taking  into  account the comments, if any, as  may  in  its opinion be just and proper. (3)  The  list as finally approved by the  Commission  shall form  the  select list for promotion of the members  of  the cadres of Sub-Engineers, Head Draftsman/Draftsmen,  Research Assistant and Junior Engineers of the M.P. Irrigation  Engi- neering Service or its higher cadres, as the case may be. (4) The selectee list shall ordinarily be enforced until  it is  reviewed or revised in accordance with sub-rule  (4)  of rule  16,  but its validity shall not be extended  beyond  a total period of 18 months from the date of its preparation:           Provided  that, in the event of a grave  lapse  in the  conduct  of performance of duties on the  part  of  any person included in the select list, a special review of  the select  list, may be made at the instance of the  Govt.  and the  Commission, may, if it thinks fit, remove the  name  of such person from the select list". (underlining ours)     Schedule I to the rules specified the number of posts in each  cadre.  So far as Assistant Engineers (Class  II)  are concerned, the number of posts is put at 329 (253  permanent and  76 temporary) in the Civil Branch and 36 (22  permanent and 14 temporary) in the Electrical & Mechanical Branch. The description and contents of the relevant columns of Schedule II have to be set out a little more meticulously. They read: 437 ---------------------------------------------------------- Name    Name  Total no.  M.P. Irrigation Engg. of      of     of duty    Service (Gazetted) Deptt.  service post P.T.T percentage of the                           number of duty posts                           to be filled in                By direct    By promo-      By transfer                recruitment  non of the     of persons                           substantive    from other service                        members of the service                [vide     [vide                [vide                rule      rule                  rule                7(a)]     7(b)]                7(c)1 ----------------------------------------------------------

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(1)      (2)     (3)       (4)      (5)  (6) ---------------------------------------------------------- Civil    AE, Class 253 76  329  50  50   25% by promotion Irriga-  II                              of JEs tion                                     20% by promotion Deptt.                                   of SEs (previously                                               Overseers)                                          5% by promotion                                          of Head Draftsman/                                          Draftsmen Elec-   -do-    22  34  36  50  50  As for A.E. trical & Mecha- nical Branch                              (underlining ours) ---------------------------------------------------------- Schedule IV says that J.Es. (Class III) with minimum experi- ence   of   two   years   as  well   as   S.Es.   and   Head Draftsmen/Draftsmen  with 12 years’ experience (8  years  in the  case of degree holders) will be eligible for  promotion as A.Es. (Class II) on selection by a departmental committee constituted as specified therein.     The interesting feature regarding the amendments of 1981 relied upon by Sri Datar is that they left the rules  quoted above  and  Schedules I & IV untouched.  They  only  amended Schedule II in two respects: (1)  In  the heading of column 5, the words  "By  promotion" were 438 substituted  for  the  words "By  promotion  of  substantive members of the service [vide rule 7(b)]". (2)  The figures in columns 4 and 5 were substituted by  the following in respect of both the Civil Branch and the  Elec- trical/ Mechanical Branch:   (4)               (5)   60     40     33% by SEs. who are                 diploma holders;                 4% by SEs./Draftsmen                 who are Engineering                 Graduates;                 3%  by Draftsmen/Head                 Draftsmen who are not                 Engineering Graduates.     We have considered the submissions of the parties in the light  of  the above rules and amendments and  come  to  the conclusion  that  there is force in the  contention  of  the appellants  that they are eligible for promotion as AEs.  in the  same  manner as the erstwhile JEs.  of  the  Irrigation Department. The assumption of the respondents that the cadre of  JEs. had ceased to exist long before the  absorption  of the present appellants into the Department is incorrect.  As pointed  out  earlier, though the decision  to  abolish  the cadre was taken in 1979 and the existing posts were convert- ed into those of AEs./SEs. on 27.5. 1980, the cadre did  not die, for the JEs. of the Department who were then  function- ing continued to function as before until they were promoted in  due  course as AEs. It is also not correct to  say  that this  crucial  "fact"  had been overlooked at  the  time  of passing the merger order of 8.10.1982. On the contrary,  the State  was fully conscious of its earlier decision  and  the order  of 8.10.1982 specifically mentions that the posts  of STAs. will be merged in the posts of JEs. "and an equivalent number  of posts may be deemed to have been created  in  the dying  cadre of Junior Engineers". These words make it  per-

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fectly  ,clear that the cadre of YEs. was "dying"  (but  not dead) and the strength of the dying cadre was further enliv- ened by taking in the STAs. of the Corporation as JEs. Thus, the  position  is  that, as on 8.10.82, the  cadre  of  JEs. continued  to subsist and comprised of the old JEs.  of  the Irrigation  department  and  the STAs.  engrafted  from  the Corporation. This conclusion is reinforced by the  interest- ing circumstance that the refe- 439 rence  in  Schedule I of the Non-Gazetted Service  Rules  to JEs. was not omitted despite the decisions of 1979 and 1980. It  is true that the number of these posts was mentioned  as 269 in the Civil Branch and 13 in the Electrical &  Mechani- cal  Branch.  But the actual number had far  exceeded  these without  a  corresponding amendment in the  Schedule.  This, however. is inconsequential. Rule 6 of these Rules is in the following terms:          Rule  6. Method of recruitment--(i) Recruitment  to the service, after the commencement of these rules, shall be by the following methods, viz.-- (a)  by  direct  recruitment,  by  Selection/by  Competitive Examination as shown in Schedule II, (b)  by promotion of substantive/officiating members of  the service (as shown in the Schedule IV), and (c) by promotion of persons who hold in a substantive capac- ity such posts in such services as may be specified in  this behalf.           (ii) The number of persons recruited under clauses (b)  and (c) of sub-rule (1) of the rule 6 shall not at  any time exceed the percentage shown in the Schedule II.           (iii)  Subject to the provisions of  these  rules, the  method/methods  of recruitment to be  adopted  for  the purpose  of filling any particular vacancy/vacancies in  the Service as may be required to be filled during any  particu- lar  period of recruitment, and the number of persons to  be recruited by each method, shall be determined on each  occa- sion by the appointing Authority.           (iv)  Notwithstanding anything contained  in  sub- rule (i) if in the opinion of Engineer-in-Chief/Chief  Engi- neer,  the  exigencies of the service so require,  the  said Engineering-Chief/Chief  Engineer, may after consulting  the Govt., may adopt such methods of recruitment to the  service other than those specified in the said sub-rule, as he  may, by order issued in this behalf, prescribe. Rule  6(iv) read with the Schedule I clearly  empowered  the Govern_ 440 ment,  in the exigencies of the situation, to  continue  the cadre  for  limited  purposes and augment the  same  by  the number  of  STAs. absorbed from the  Corporation.  We  have, therefore,  no hesitation in holding that,- on the terms  of the  relevant rules as well as on the language of the  order of  8.10.1982, the appellants, viz. STAs. absorbed from  the Corporation  were  constituted  as a part of  the  cadre  of J.Es.,  placed on complete par with the JEs. of the  depart- ment  already  in  service and given  the  same  promotional eligibility and opportunities as the latter.     Counsel  for  the State contends  that  this  conclusion would  directly  run contrary to the rules of  the  Gazetted Service particularly after their amendment in 1981 and that, after  the date of said amendment, no AE could be  recruited by  promotion from among JEs. The objection on this  account is two-fold. The first, not clearly articulated by  counsel, is that rule 7(b) permits recruitment by promotion only from among the members of the service and that a Non-Gazetted  JE

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is not eligible for promotion. The second is that, after the 198/amendment, JEs have been excluded as one of the  sources of  recruitment by promotion. We shall deal with  these  two objections one after another.     It is true that rule 7(b) of the Gazetted Service  Rules of 1968 provides only for JEs belonging to the said  service being promoted as AEs. However, when the JE’s post became  a non-Gazetted  one  in 1978, the relevant  Government  orders made  it clear that AEs will be recruited by promotion  from among  JEs to the extent of 25% out of the 50% quota  avail- able for promotion. The Schedule clearly mentioned this.  As it  also mentioned SEs and Head Draftsman as  other  sources from which promotion could be made, the reference to JEs was also clearly to the non-Gazetted JEs. Promotion of  Gazetted JEs had been separately provided for as before. Thus,  under the  Schedule, non-Gazetted JEs were also  clearly  eligible for  promotion  despite the restriction in rule  7(b).  This inconsistency  between the Schedule and the rule was  appar- ently  noticed only in 1981 and the heading of Column  5  of Schedule I1 was amended to make it clear that the promotions therein  referred-to  were from  the  non-Gazetted  service, although rule (b) was left unamended. The omission to  amend rule 7, however, is not of much significance. It was open to the  State, in view of rule 7(4), to promote members of  the non-Gazetted  Services also to the Gazetted Service  to  the extent  of  a prescribed quota. The restricted  language  of rule  7 cannot, therefore, be construed in such a way as  to render  redundant  the specific provision  in  the  Schedule entitling several persons from the non-Gazetted services  to promotion. 441     It is then argued that, at any rate, after the amendment of  the relevant columns of Schedule 1I in 1981 there is  no right  in any J.E. to claim promotion as A.E. At least  from that  date,  the promotional avenue for J.Es.  stands  abol- ished, claims Sri Datar. Sri Ashok Sen, for the  petitioner, contended that the petitioners having been given a right, at the  time of absorption in 1982, that they will be  eligible for promotion in the same way as the erstwhile J.Es. of  the State Department, this right cannot be taken away by  invok- ing an earlier amendment of the rule. He cited some authori- ties in support of the proposition and pointed out that  the petitioners  had amended the original writ petition  to  in- clude  a prayer for quashing the amendment  purportedly  ef- fected  on  27.7.81. On the other hand, Sri  Datar  contends that no employee has a vested right to promotion and that it was  in law open to the Government to change the  conditions of service so as to take away a right to promotion that  may have  existed  earlier. But, he pointed out, so far  as  the petitioners were concerned, there was no taking away of  any right  to promotion at all because, even as on 8.10.82  when they  claim to have become J.Es., the rules provided for  no promotional  avenue  at all and none was  promised  to  them either by the order dated 8.10.82.     We  do not think it is necessary for us to  express  any views  on the question whether an amendment taking away  the rights of promotion earlier available to a cadre of  employ- ees  is  constitutionally  valid. We shall  proceed  on  the assumption, as contended by the State, that this is  permis- sible  and that the effect of the amendment is that, on  and from  27.7.81, no A.E. can be recruited, under  the  amended Schedule, from among the J .Es. Assuming this to be correct, this  rule  should  apply to all the  J.Es.  in  the  "dying cadre".  It is seen from the records placed before  us  that such  of  the J.Es. belonging to this cadre as had  been  in

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service  with  the State Department have  continued  to  get their  promotions  even after the 1981  amendment.  This  is clear from the gradation list filed by the appellants  which shows  that three Junior Engineers were promoted as AEs.  on 17.8.83.  Further, the specific averments to this effect  in the affidavits filed on behalf of the petitioners at various stages  have  not  been denied. The  petitioners  have  also placed on record an order dated 18.10.1985 which shows  that a J.E. of the State Department in the Electrical &  Mechani- cal Branch (perhaps the last of that category) was  promoted as A.E. If this be so, then, clearly, the Department  cannot discriminate as between officers belonging to the same cadre by  promoting some of them and denying promotion to  others. Sri  Datar emphasised that the J.Es. belonging to the  State service had a right of promotion earlier and this was  coti- nued even after 442 the amendment whereas the appellants became J.Es. at a  time when  there was no further promotion available to  them  and that  this  makes  all the difference.  This  argument  runs somewhat  contrary to the earlier argument of  counsel  that the amendment of 1981 should be treated as applicable to all claims for promotion after 27.7.81 and that the State is  at complete  liberty to deny promotion after that date even  in respect  of those who may have earlier had a right  to  such promotion. But even assuming that the distinction now sought to be pointed out by him marks a difference between the  two categories of J.Es. on the cadre as on 8.10.82, a  discrimi- nation between them would be totally arbitrary and  contrary to the scheme of absorption envisaged in 1982. It cannot  be presumed  that the State, when it absorbed the S.T.As.  into the  dying cadre of J.Es., was unaware that  (though,  since 1981,  there were no promotional avenues for J.Es. as  A.Es. under the rules) the incumbents of that cadre were  entitled to such promotion under the cabinet orders dated 5.7.79. The order  of  8.10.82  places the absorbed  S.T.As.  into  that "dying"  cadre  by  creating  fictionally  an  equal  number of_posts to accommodate the persons so absorbed. The  inten- tion and effect of the order of 8.10.82 was to grant to  all the  S.T.As.  so  absorbed exactly the same  status  as  was enjoyed  by those already in the cadre. In other  words,  if the  J.Es.  already  existing in the cadre has  a  right  of promotion, as on 8.10.82, the new incumbents were also given that  right; and if they had none after 27.7.198 1, the  new incumbents would have none either. The State has  admittedly proceeded  on the footing that, despite the 1981  amendment, the J.Es. from the State Department were eligible for promo- tion;  in fact, they have been promoted since 1979 as  A.Es. as and when vacancies arose. This being so, any differential treatment of the absorbed S.T.As. would clearly be discrimi- natory and unconstitutional. In interpreting these rules and Government  orders, one should bear in mind that the  promo- tional  stipulations  in Schedule II should be read  in  the light  of  rule 7(4) which permits a wide  latitude  to  the Government in making recruitments, by way of promotion, even otherwise than in the manner outlined in rule 7(1).  Reading the rules and the Government orders issued from time to time harmoniously, the effect of the cabinet order of July,  1979 was that all J. Es., in position as such, should continue to be  promoted until all of :hem became A.Es. It is  no  doubt somewhat difficult to see how after 27.7.81, only a part  of the pattern of recruitment in vogue earlier could stand side by  side with that introduced on that date. One could  have’ understood  a  stand on the part of the State that,  as  and from that date, promotions would be limited only to the  new

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feeder categories and would not be available to any J.E.  at all.  But if the subsequent variation of 1981 did not  over- ride this benefit extended to the former State 443 J.Es. and has not been understood as having done so and  the pattern of promotion indicated in the amendment of 1981  was subject  to the right of such J.Es. in the cadre for  promo- tion  as per the cabinet order of 1979, it is  difficult  to see how a different rule could be applied to the S.T.As. Who have  been absorbed to augment that cadre. The truth of  the matter  is  that, when abolition of the cadre of  J.Es.  was thought  of, the State decided that this should  not  effect the  existing  J.Es. and their promotional  chances.  Again, when  the merger of the Corporation and State  services  was thought  of,  the decision was that the  S.T.As.  should  be placed on a par with the J.Es. of the State service and that the J.T.As. should be placed on par with the S.Es. This  was a  conscious  and  equitable decision  (for,  as  is  common ground, the post of S.T.A was equivalent to J.E.) and to  go back  upon  it  has  resulted  in  arbitrary  discrimination against  the appellants. By the decision of 1986, they  lose their status as J.E. (and are equated to S.Es. which is  the status also accorded to the JTAs, their subordinates in  the erstwhile Corporation), they lose their right to  promotion, they  lose  seniority by being placed at the bottom  of  the S.Es.  of  the State service and the promotional  quota  now allotted  to  them  is illusory. It is true  that  they  had volunteered  for  absorption as JEs. in 1982,  a  date  when there was no promotional avenue to a JE under the rules. But they did so because they were told that they would be placed on part with the J.Es. in the State service and never  imag- ined that they would be denied promotion on the basis of the amended  rules while the JEs in the State service  continued to get promotions despite the amendment. The fact that  they opted  for the, State service does not,  therefore,  entitle the  State  to treat them differently from the  JEs  of  the State  service.  We have, therefore, no doubt in  our  minds that gross injustice has been done to the appellants by  the subsequent decision of the State Government. We,  therefore, quash the decision of 1.3.86 and direct that the  appellants will be entitled to be considered for promotion as A.Es.  in the  same manner and to the same extent as the J.Es. of  the State  service have been considered and not on the basis  of the  percentages  prescribed for S .Es.  under  the  amended rules. In the view taken by us that the rules and the amend- ment  therein  do not override the effect of the  orders  of 5.7.1979  and  8.10.82, it is not necessary for us  to  pro- nounce any opinion on the validity of the 1981 amendment  to the Rules.     The appeals succeed to the extent indicated above. There will be no order as to costs. R.S.S.                                               Appeals allowed. 444