11 September 2000
Supreme Court
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R. HARIHARAN Vs K. BALACHANDRAN NAIR

Bench: V.N.KHARE,S.N.PHUKAN
Case number: C.A. No.-009090-009091 / 1996
Diary number: 3433 / 1996
Advocates: E. M. S. ANAM Vs AJIT PUDUSSERY


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PETITIONER: R.  HARIHARAN & ORS.

       Vs.

RESPONDENT: K.  BALACHAIIDRAN NAIR & ORS.

DATE OF JUDGMENT:       11/09/2000

BENCH: V.N.Khare, S.N.Phukan

JUDGMENT:

V.N.  KHARE.  J. L.....I.........T.......T.......T.......T.......T.......T..J

     The appellants herein, are Engineers in the service of Kerala  State Electricity Board (hereinafter referred to  as the  ’"Board") and have preferred these appeals against  the judgment  rendered by the Division Bench of the Kerala  High Court whereby the writ petition and the writ appeal filed by the  respondents were allowed and the Board was directed  to re-fix  the  seniority  in  the   light  of  legal  position indicated  therein.   As a result of the said judgment,  the appellants  contend that they would be treated as junior  to the respondents.

     The  Board  was  established under Section  5  of  the Electricity’  (Supply) Act, 1949 on 7th March, 1957.   Prior to  1.10.1966,  7 employees were appointed by the  Board  on various  categories of posts like Oyersecr, Tracer etc.  The Kerala Public Service Commission (Additional Functions) Act, 1963  (hereinafter referred to as the "Act") came into force with  effect from 1.10.1966.  The Act provided for  exercise of certain additional functions by the Kerala Public Service Commission  in  respect  of  appointments  of  officers  and servants  of  the  Board and their  conditions  of  service. During  the  period  1972 to 1974 the appellants -  four  in number, were recruited through the Public Service Commission on  different  dates to different categories of  posts  like Overseer,  Tracer  etc.  On 18.4.1975, the Board  issued  an Order  that  out of 50 per cent quota of direct recruits  in the  cadre  of  Asstt,  Engineer 40 pel-  cent  were  to  be appointed from open market and remaining 10 per cent were to be  recruited  from qualified Engineering Graduates  in  the employment  of  the Board.  The case of the  respondents  is that  the  recruitment  of these two  categories  of  direct recruits were to be made with the consultation of the Public Service  Commission.   During, the period 1976 to 1980,  the Public  Service  Commission  did  not   take  any  step  tor recruitment  to fill up the 10 per cent quota set apart  for the in-service Engineering graduates who were

     in  employment  with the Board.  Since the  appellants and  others - totaiing, eleven in numbers, were  Engineering Graduates  in  the  service of tile Board..   the  Board  on different  dates  beginning  from   26.12.1976  to  1.8.1979 appointed  them  to the posts of Assistant Engineer  (Civil) against  10  per  cent  quota reserved  for  the  in-service

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Engineering   Graduates  in  the   Board.   The  letter   of appointment  indicated  that appointments of the  appellants were  provisional during the period of probation and in case they  pass  two Departmental tests viz., ’Departmental  test tor Executive Staff" and "Account Test Lower" and further on satisfactory  completion of the probationary’ period,  their .services would be regularised.

     On  successful completion of the probationary’ period, the Board by separate orders regularised the appointments of all the II Assistant Engineers including the appellants from the  date  of their joining duties as  Assistant  Engineers. The  writ  petitioners who are the respondents lierein  were recruited  in  the  cadre  of  Assistant  Engineers  (Civil) through  the Public Service Commission and had joined  their duties  on  2  i.   10.1981.  Although the  services  of  11 employees  including the appellants were regularised by  the Board,  yet  the Public Service Commission declined to  give its

     concurrence to the regularisation of the services with effect  from the date of their joining duties.  There  being difference  of  opinion  between the Board  and  the  Public Service Commission on the question of date of regularisation of services of the appellants, the Board referred the matter to  die State Government under sub-section (2) of Section  3 of  the  Act.   The  State  Government  on  receipt  of  the reference  from  the Board again referred the matter to  the Public Service Commission.  Thereafter, the State Government after  considering  the  matter, by an order  dated  12.5.82 overruled  the  advice of the Public Service Commission  and approved   the  regularisation  of   the  services  of   the appellants  with  direction that inter-sc seniority  of  the Assistant  Engineers  whose services have  been  regularised shall  be  determined from the date on which each  Assistant Engineer  acquired the necessary qualification.   Consequent upon  the  order  of  the State  Govt.   dated  12.5.19S2  a gradation  list of Assistant Engineers was prepared  wherein the  appellants were shown above to the respondents  herein. After  a  lapse  of 5 years the respondents herein  who  are direct  recruits  and joined duties on 21.10.1981,  filed  a writ  petition O.P.  No.7730 of 1987 for quashing the  Govt. Order  dated  12.5.1982  and the consequent  gradation  list Ext.l2 to the

     writ petition.  In the said writ petition 10 Assistant Engineers including the  4

     appellants  were  arrayed as respondents 15 to 24.   A learned  Single Judge of the Kerala High Court dismissed the writ  petition  on  the  ground that the  challenge  to  the seinority  list was highly belated and further there was  no violation  of quota of 10 per cent earmarked for  in-service Engineering  Graduates.   Against  the   said  judgment  the respondents  herein  filed a Writ Appeal before  a  Division Bench  of  the High Court.  During the pendency of the  Writ Appeal  two other Assistant Engineers (Civil) who were  also directly recruited and had joined their duties on 21.10.1981 filed  another Writ Petition No.  12363/93 seeking quasiling of  the Govt.  Order dated 12.5.1982 and the gradation  list Ext.P.12.   The  writ appeal and the writ petition filed  by the  writ petitioners were consolidated and heard  together. During the pendency of the writ appeal and the writ petition the  appellants  were  promoted to the  posts  of  Executive Engineers.   The Division Bench after hearing the matter was

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of  the  view  that  tile date of the  order  of  the  first appointment  of the appellants would be the date when  their services  were regularised i.e.  12.5.1982 and.   therefore, the respondents who joined their duty on 21.210.1981 have to be treated senior to the appellants.  The High Court allowed the writ appeal and the writ petition and directed the Board to  re-fix the seniority in the light of what was stated  in the judgment,

     Shri  P.P.Rao,  learned senior counsel, appearing  for the   appellants  advanced.three   submissions.   The  first submission  is that under the Act there is no requirement of consultation with the Public Service Commission in regard to suitability  of the candidate to be a.ppomted to the post of Assistant  Engineers  in  the   Board  and,  therefore,  the seniority of the appellants has to be determined with effect from  the  date  of their first  ad-hoc  appointments.   The second  submission  is that if it is held that  consultation with  the  Public  Service  Commission  was  necessary  with respect  to the appointment of the appellants in the  Board, the  State Government in exercise of its over-ridding  power conferred  by sub-section (2) of Section 3 of the Act  cured the  defect  ofnon  consultation  with  the  Public  Service Commission  by over-ruling the advice of the Public  Service Commission  and ordering for regularisation of the  services of  the appellants with effect from the dates the appellants acquired qualification.  The third submission is that in any event  if  it is held that the Kerala State and  Subordinate Rules  1958  are applicable to the appointment of  Assistant Engineers  in the Board, the Government has power under rule 39  of the said Rules to retrospectively remove the hardship by regularising the services of the appellants.

     Learned  counsel appearing for the respondents  argued that  under  the Act, consultation with the  Public  Service Commission  in regard to the suitability for appointment  to the  post of Assistant Engingeers is mandatory and once  the Public  Service  Commission declined to give concurrence  to the regularisation of services of the appellants with effect from  the date of their joining duties, the seniority of the appellants  has  to  be determined from the date  they  were regularised  in  the  service  of the  Board.   The  further argument  of  learned  counsel for the respondents  is  that under  rule  27 of the Rules the ad-hoc appointment  of  the appellants  cannot  be  taken  into  consideration  for  the purpose  of  determining  intcr-se  seniority  of  Assistant Engineers  and as such the respondents are to be treated  as senior  to  the  appellants  in   the  cadre  of   Assistant Engineer(Civil).

     Learned  counsel for the appellants in support of  his argument  referred  to Section 3 of the Act and argued  that sub-clauses  (a)  and (b) of sub-sectio (1) of Section 3  of the Act being in para materia with clause (3) (a) and (b) of Article  320  of  the Constitution.  The  State  legislature having not enacted any substantive provision like clause (1) of  Article  320  in  Section 3 of the  Act,  there  was  no obligation on the part of the Board to consult the Public

     Service  Commission with regard to suitability of  the candidates for appointment as Assistant.  Engineers in.  the Board.   H^ further argument is that the Board is  competent to  appoint  Assistant  Engineers under Section  15  of  the Electricity  Supply  Act  Clause (a) of sub-section  (1)  of Section  ^ requires the Board to consult the Public  Service

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Commission  on all matters relating to method of recruitment to services and posts under the Electricity Board and clause (b) of sub-section (1) of Section 3 of the Act casts duty on the  Board  to consult the Public Service Commission on  the principles to bo followed in making appointments to services and  posts  under  the Board and in  making  promotions  and transfers  from  one  service   to.another.   According   to appellants  only on aforesaid situations the Public  Service Commission is required to be consulted and not on the matter relating   to   the  suitability  of  the   candidates   for appointments as Assistant Engineers in the Board.  No doubt, the  argument is attractive and at the first glance appeared carrying  substance.  But on a deeper consideration, we  fmd that second part of clause (b) to sub-section (1) of Section 3  of  the  Act  requires the Board to  consult  the  Public Service Commission in the matter of appointment to the posts of  Assistant Engineers in the Board.  The object of the Act is  to  provide certain additional functions by  the  Kerala Public Sendee Commission in respect of

     appointment  of  officers and servants of  the  Kerala Electricity’  Board  and in laying down their conditions  of servrce.  Section 3 of the Act provides for the functions of Public  Service  Conmmission  of services under  the  Board, which is extracted below:-

     "3.   functions  of the Public Service  Commission  in respect  of  services  under the Electricity Board.   -  (1) Notwithstanding anything contained in the Elecriciy (Supply) Act  (Central  Act 54 of 1948), or the rules of  regulations made  thereunder regarding the recruitment and conditions of service  of officers and servants of the Electricity  Board, the Public Service Commission shall be consulted-

     (a) on all matter relating to method of recruitment to services and posts under the Electriciy Board;

     (b)  on  the  principles  to  be  followed  in  making appointments  to  services and posts under  the  Electricity Board  and  in  making  promotions and  transfers  from  one service  to another and on the suitability of candidateg for such appoinmens promotions or transfers;

     Â©         on  any claim by or in respect of a person  who  is serving  or has sensed under the Electricity Board that  any costs  incurred  by  him  in  defending  legal   proecedings instituted  against him in respect of sets done or purporing to  be done in the execution of his duty should be paid  out of the funds of the Etectriciy Board;

     (d) on the claim for the award of a pension in respect of  injuries  sustained by a person while serving under  the Electricity  Board and any question as to the amount of such award;

     and  it  shall  be  the duty- of  the  Public  Service Coimnission to advice on any matter so referred to them:

     Provided  that the Governmen may make rules specifying the  matters  m which either ge.neraHy or in any  particular class  of  cases  or in.  any particular  circumstances,  it shall  not be necessary for he Public Service Commission  to be consulted.

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     (2)  In the case of any difference of opinion  b-tween the Public Sendee.  Conmiission and the Electricity Board on any  matter, the Electricity Board shall refer the matter to the  Government  and the decision of the government  thereon shall be final:

     Provided that the Giovernment before taking a decision against  the advice of the Commission shall refer the matter to the Commission."

     Section  4  empowers the Government to frame rules  in consultation with the Public Service Commission for carrying out  the purposes of the Act and also to frame rules on  the matters  where  it  shall not be necessary  for  the  Public Service  Commission to be consulted, in exercise of the said power  Government of Kerala has framed rules which is  known as’Kerala  Public Service Commission (Additional  Functions) (Consultations) Rules 1966.  Rule 3 of the rules provide the matters  where the Public Service Commission is not required to  be consulted.  Rule 5 then provides that it would not be necessary for the Board to consult the Commission where

     appointment  of  a  person is made temporarily  for  a total period not exceeding three months or where appointment has  to  be  made in public interest owing to  an  emergency which  has arisen to fill immediately a vacancy in the  post and  there  would be undue delay in making  the  appointment after  such consultation.  Rule 5 further provides that  the concurrence  of  ’the’ Commission shall be obtained for  the continuance  of  such  temporary  appointment  beyond  three months.  ;

     Now  coming  to clauses (a) and (b) of sub-section  (I )-of  Section ’3 of the Act it is no doubt true that  clause (a)  provides for consultation on all matters pertaining  to method  of recruitment to sendees.  A perusal of clause  (b) of sub-section (1) of Section 3 of the Act shows that clause (b)  is in two parts.  The first part of clause (b) runs  as under:

     "  on  the  principles  to   be  followed  in   making appointments  to  services and posts under  the  Electricity Board  and  in  making  promotions and  transfers  from  one service to another."

     The second part of clause (b) runa as under:

     "  and  on  the suitability of.  candidatea  for  such appomiments, promotions or transfers."

     So  tar as the first part of clause (b) is  concerned, we are in.  agreement wit) the contention of learned counsel for  the  appellant  that  it pertains to  laying  down  the principles  to  be  followed in making appointments  to  the service and does not provide for consultation with regard to appointments in service, But the same is not the position in the  case  of second part of clause (b)..  extracted  above. The  language employed in clause (b) is plain and simple and there  is no ambiguity in it.  Both the parts of clause  (b) operate  on  different fields, the first part of clause  (b) requires  consultation  by the Public Service Commission  on the  principles followed in making appointments,  promotions and  transfers, whereas later part of clause (b) casts  duty on the Board to consult the Public Service Commission on the matters pertaining to appointments, promotions and transfers

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of  th6  employees voi’ the Board meaning thereby  that  the Public Service Commission is required to be consulted on the suitability  of the candidates for appointments,  promotions or  transfers.   It  is true that there  is  no  substantive provision like clause (I) of Article 320 of the Constitution in  Section 3 of the Act.  However, later part of clause (b) is  complete and substantive provision in itself and as such Section  3 of the Act does not require enactment any further provision like clause (1) of Article 320 of the 12

     Constitution  providing for judging the suitability of candidates by the Public Service Commission in the matter of appointments.   This interpretation of ours is in consonance with  the  object  of  the Act for which the  Act  has  been enacted.   If we put any other interpretation and hold  that the  Public  Service  Commission  is   not  required  to  be consulted  in  the  matters of appointments,  promotions  or transfers,  the same would be repugnant to the object of the Act  which  means  that  the   provisions  of  the  Act  are meaningless  and  without any purpose.  Further,  the  rules framed  by  the State Government in exercise of  its  powers under  Section  4  of  the  Act  has  already  provided  the situations  where appointments in the Board would require no consultation  with the Public Service Commission.  There  is no  mention in the rules that there would be no consultation with   the   Public  Service   Commission  in   respect   of appointments  of  Assistant Engineers in the Board.   It  is settled  principle  of interpretation that the  court  shall lean  towards an interpretation which advances object of the Act.   We  are, therefore, of the view that second  part  of clause  (b)  ofsub-section(l)  of  Section  3  provides  for consultation  with  the  Public Service  Commission  in  the matter  of appointments of Assistant Engineers in the Board. This view of ours also finds support from a decision of this Court in State of Jammu and Kashmir vs.  Mrs.Ral Pulari

     Rsadan   and  others  [1979   ISCC  461],  wherein   a Constitution  Bench  of this Court held that clause  (b)  of sub-section   (2)   of  Section   133  ofJammu   &   Kashmir Constitutiion   which   is  analogous  to  clause   (b)   of sub-section   (1)   of  Section  3  of  the   Act   requires consultation  with  the  Public Service  Commission  in  the matter  of  suitability  of   candidates  tor  appointments, promotions and transfers in the service.

     Coming to the next argument of learned counsel for the appellants,  we  find  that originally the  appellants  were appointed  through  Public  Service  Commission  on  various categories  of posts like Overseers, Tracers etc.  The Board had  reserved 10% posts of Assistants Engineers to be filled in   from  the  qualified   Engineering  Graduates  in   the employment  of  the Board.  During the period 1976 to  1980, the  Public  Service Commission did not take any  steps  for recruitment  to  fill  up  the 10% quota set  apart  in  the service  for  the  Engineering  Graduates who  were  in  the employment  in  the  Board.   Since there  was  an  emergent requirement  for Assistant Engineers in the Board, the Board appointed  the  appellants  who were in the service  of  the Board  and  possessed the requisite qualifications,  to  the post  of  Assistant Engineers on probation on the  following terms:

     1.   He will be a probationer in the post of Assistant Engineer  (Civil)  for aperiod of 6 months on duly within  a continuous period of one year,from the date of joining duly.

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     2.   He  should pass the two Departmental  tests  viz. "Departmental  test  for Executive Staff" and "Account  Test Lower  "  within the period of probation failing  which  the declaration  of satisfactory completion of his probation may be  postponed until he acquires these two tests or clause  5 below may be resorted to.

     3.   His appointment as Assistant Engineer (Civil)  is in the scale of pay of Rs.  800-30-890-40-1250.

     4.  He is eligible to get the allowances admissible to the post held by him from time to time.

     5.   His  appointment which is provisional during  the period   of   probation,  shall  be  regularised   only   on satisfactory  performance  of duties assigned to him  during the  period  of  probation.  His services are liable  to  be terminated  at  any time during the period of probation,  if his performance of duties is found to be unsatisfactory.

     6.   His duties and functions, in general as Assistant Engineer (Ble) will be in accordance with those laid down in B.O.  No.EB.IL24780/75/25-2-1977 as amended or modified from time  to time.  He will have to attend to such works also as may  be  entrusted to him/her from time to time by  superior officers.

     The appellants passed the departmental examination and various  tests  and  after   successful  completion  of  the probationary  period  their services as Assistant  Engineers were regularised by the Board by an order dated

     14.11.79  with  effect from the date of joining  their duties.   One  of  such  orders   issued  in  favour  ofShri V.Venkiteswara lyer, is extracted below:

     "Kerala  State  Electricity Board Proceedings  of  the Chief Engineer (Civil) K S E Board, Trivandurm.

     Sub  :   Estt  - Sri.  V.   Venkiteswara  lyer,  Asst. Engmeer © Declaration of probation - Orders issued -

     Older No.  EBC4/807/77 Dated :  14-11-1979

     Read  :   This office Memo No.  EBC4/807/77/5-5-79  to Sri V.Venkiteswra lyer.

     ORDER

     Sri  V.Venkiteswara  lyer,  first Gr,  Overseer  (Ele) Office of the Chief Engineer (Ele) KSE Board, Trivandrum was provisionally  appointed  as Assistant Engineer (Civil)  and posted  in this office vide this office memo read above  and he had reported for duty on the A.N.  of 5-5.79.  As per the condition  of  appointment he will be a probationer  in  the post  of  Assistant  Engineer (Civil) from the date  of  his joining  duty  in that post and the period of probation  was then  fixed  as 6 months within a continuous period  of  one year.

     The  Executive Engineer, T.P.H.  Office - has reported in  Office  note  (i)  dated  6-11-79  that  the  period  of probation  has been completed by Sri V.  Venkiteswara  lyer. Assistant Engineer (Civil) satisfactorily.

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     Hence,  it is hereby declared that Sri  V.Venkiteswara lyer  liaa  completed the probation eatiefaotorily and  that his provisional appointment as Assistant Engineer (Civil) is regulatriced from.  the date of the joining duty-.

     .Sd/

     CHIEF ENGINEER (CIVIL)

     However,  the Public Service Commission did not  agree for regularisation of services of the appellants with effect from the date of joining their duties and as such the matter was  referred to the State Government.  The State Government after  consultation with the Public Service Commission found that   the   appellants  had    possessed   the   prescribed qualifications   and  were  suitable  to  be  appointed   as Assistant  Engineers  and further they  gained  considerable experience and competence, and as such over-ruled the advice of   the   Public  Service   Commission  and  approved   the regularisation  of  services of the appellants  with  effect from  the  date they acquired the requisite  qualifications. Admittedly,  the appellants had acquired the  qualifications prior  to 21.10.81, which is the date of joining duty by the respondents  herein.   In this background the question  that arises  is whether the Government could grant regularisation of  services  of the appellants as Assistant Engineers  with effect from the date of acquisition of their qualifications. Sub-section  (2)  of Section 3 of the Act provides  that  in case of any difference of opinion between the Public Service Commission  and  the  Electricity Board on any  matter,  the Electricity  Board  is required to refer the matter  to  the Government  and the decision of the Government thereon is to be treated as final.  The said power of the State Government has not been

     questioned.   Further, under Section 4 of the Act, the State  Government is empowered to lay down the matters where consultation  with  the  Public Service  Commission  is  not necessary.   The  State Government in exercise of its  power has already provided that in certain classes of appointments it   is  not  necessa