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PETITIONER: STATE OF ANDHRA PRADESH

       Vs.

RESPONDENT: SUBBARAYUDU, V.C. & ORS.

DATE OF JUDGMENT:       22/01/1998

BENCH: SUJATA V. MANOHAR, D.P. WADHWA

ACT:

HEADNOTE:

JUDGMENT: WITH CIVIL APPEAL NOS. 5132-5133 OF 1998                THE 22ND DAY OF JANUARY, 1998 Present:               Hon’ble Mrs. Justice Sujata V.Manohar               Hon’ble Mr. Justice D.P. Wadhwa Mr. K.Ram  Kumar  and  Dr.A.Subba  Rao,  Advocates  for  the appellant. Mr.B.Kanta Rao  and Mr.  S. Udaya Kumar Sagar, Advocated for the respondents.                       J U D G M E N T      The following Judgment of the Court was delivered: D.P.Wadhwa, J.      Judgement dated December 20, 1991 of the Andhra Pradesh Administrative Tribunal  (for short  ‘Tribunal’) is impugned before us.  By this  judgment the  Tribunal gave a direction that Accountants  belonging to  Subordinate Accounts Service (SAS) of  the Accountant  General Office who were working on the date  of take  over as the Divisional Accountants in the State Service  shall also  be given option to be absorbed in State as  per GOM(s)  304 of November 20, 1979 issued by the Government of Andhra Pradesh. According to the appellant the State of Andhra Pradesh the GOM 304 contemplated option only from  Divisional  Accountants  in  the  Accountants  General office on the date of take over in the State service.      As to  how the  controversy arose  can be  best seen by reference to  GOM  304  itself.  As  to  the  necessity  for creating a  separate service  for State  of  the  Divisional Accountants, it records as under:      "The    posts     of     Divisional      Accountants  are   created  by  the      State  Government   in  the  Public      Works   Divisions   of   Irrigation      including Major Projects, Roads and      Buildings and  Public Health  etc.,      but  the   administrative   control      i.e.,  recruitment  to  the  posts,      appointments,            transfers,      disciplinary  control   etc.,  vest      with the Accountant-General, Andhra      Pradesh. However,  in their  day to

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    day    working    the    Divisional      Accountants    come    under    the      immediate  control   of   Executive      Engineers of  the  Divisions.  They      assist the  Executive Engineers  to      render accounts  to the Accountant-      General, Andhra  Pradesh, which are      different   from    the    accounts      maintained in the Treasuries. Their      pay  and   allowances  and  service      conditions are  at present governed      by the Central Government rules but      they  are   paid   by   the   State      Government.      2.   The   question of  taking over      the cadre of Divisional Accountants      from the  administrative control of      the   Accountant-General,    Andhra      Pradesh     has      been     under      consideration    of    the    State      Government for  some time  past.  A      Three Man  Committee was  appointed      by the State Government in G.O. Ms.      No.  663,   Irrigation  and   Power      (Services-III)  Department,   dated      3rd September  1976 to  advise  the      Government on  the desirability  or      otherwise of  taking over the cadre      of Divisional  Accountants from the      administrative   control   of   the      Accountant-General, Andhra Pradesh.      The Three Man Committee after going      through the various points at issue      and studying  the set  up in  other      states recommended  that the  cadre      of Divisional  Accountants be taken      over by  the  State  Government  as      early as  possible. The  report was      first examined  in  detail  by  the      Irrigation and  Power Department in      consultation  with   the  concerned      Department viz.,  Transport,  Roads      and Buildings,  Housing,  Municipal      Administration      and       Urban      Development,  Panchayat   Raj   and      Finance    and     Planning.    The      recommendations of  the  Three  Man      Committee were  again  examined  by      Secretaries to  Government, Finance      and Planning, Irrigation and Power,      Transport,  Roads   and  Buildings,      Panchayat    Raj    and    Housing,      Municipal with  the  recommendation      of Three Man Committee for the take      over of  the  cadre  of  Divisional      Accountants    by     the     State      Government. The Accountant-General,      Andhra Pradesh was addressed in the      reference 1st  read above to obtain      the concurrence  of the Comptroller      and Auditor-General  of  India  for      the State  Government  taking  over      the  administration  of  Divisional      Accountants  in   this  State.  The      Accountant-General, Andhra  Pradesh

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    in  his  D.O.  letter  fourth  read      above had  conveyed the approval of      the Comptroller and Auditor-General      of India  to the  transfer  of  the      Cadres of Divisional Accountants to      the State Government.      3.   After a  detailed  examination      in    consultation     with     the      Accountant-General, Andhra  Pradesh      and in order to have proper control      over expenditure  and over accounts      matters  generally   in  Divisional      Offices which is very essential and      important  in  view  of  the  heavy      expenditure  incurred   in  various      engineering    departments,     the      Government have  decided  that  the      cadre of  Divisional Accountants be      taken over  by the State Government      from the  administrative control of      the   Accountant-General,    Andhra      Pradesh and  a  separate  cadre  of      Divisional      Accountants      be      constituted,   under    the   State      Government. Government  accordingly      direct that the cadre of Divisional      Accountant be  taken over  for  the      administrative   control   of   the      Accountant-General, Andhra  Pradesh      and a  separate cadre of Divisional      Accountants  be  constituted  under      State Government  with effect  from      1-1-1980."      GOM 304 further records as to how and on what terms and conditions take  over of the cadre of Divisional Accountants from the administrative control of the Accountant-General of the Andhra  Pradesh would take place. This is in para 5 and, in relevant part, it is an under:      "(I) Options to  come over  to  the      State Service  will be given to all      Divisional  Accountants   including      SAS passed Auditors/SAS Accountants      whose name  find place  on the date      of take  over in the gradation list      of    Divisional     Test    passed      Divisional  Accountants  maintained      by the  Accountant-General,  Andhra      Pradesh. The option will be subject      to  their   accepting  the  service      conditions of  the State Government      and the State scales of pay. Future      chances of  promotion in  the State      Service  outside   the   cadre   of      Divisional Accountants will be open      only to such persons as opt for the      State Service.      (iv) S.A.S. passed  Auditors/S.A.S.      Accountants    borne     on     the      Accountant/General’s    cadre    of      Divisional Test  passed  Divisional      Accountants who  do not opt to come      over to  the State  service will be      allowed  to   continue  subject  to      availability   of    vacancies   as      Divisional      Accountants      on

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    deputation    but    without    any      deputation allowance.  They will be      reverted  to   Accountant-General’s      become  available.   However  those      Divisional Accountants  who opt  to      come over  to the  State   Service,      cannot   revert    to   Accountant-      General’s Office."      Para 14  of the  GOM states  that a  copy of  this G.O. shall be  communicated to  all  the  Divisional  Accountants including SAS.  It would  also be  relevant to reproduce the form of option as contained in the GOM:      "I,      Sri................S/o.............      .....now  working   as   Divisional      Accountant in  the  Office  of  the      Executive Engineer  ...............      Division.....................(name      of the  Division  and  district  in      which  it   is  located  should  be      specified)  do  hereby  opt  to  be      absorbed  in   the  Andhra  Pradesh      Government’s Divisional Accountants      Cadre with effect from 1st January,      1980  as   per  the   terms     and      conditions laid  down in  G.O.  Ms.      No.  304,   Finance  and   Planning      (Finance   Wing-Works   Accounts-I)      Department, dated 20-11-1979.      On transfer  to the  Andhra Pradesh      State  Service,   I  agree   to  be      governed   by    the   rules    and      regulations  framed  by  the  State      Government from  time  to  time  in      respect  of   all  service  matters      including  Classification,  Control      and Appeal Rules.      The  option   exercised  herein  is      final and  will not  be modified at      any subsequent date.      Signature:      Station:               Name:      Dated:               Designation:                          Office in which                          Employed:                        Signed before me:      Witnesses:      1.      2.                EXECUTIVE ENGINEER                ...........Division,                ..........District."      The dispute  principally pertained to interpretation of clause (i)  of para 5 of the GOM reproduced above. There are many cadres  in the  Accountant General  Officer but  we are concerned with  two cadres  namely,  Divisional  Accountants cadre and SAS  cadre. Recruitment to the Divisional Accounts cadre is  by direct recruitment and promotion from them post of UDC.  A divisional  test is  required to be passed within the prescribed  period of probation which is two years after initial recruitment.  Recruitment to  Subordinate   Accounts Service cadre  is by  promotion form UDC cadre on passing of SAS examination  and also  a departmental examination. While the scale  of pay  for Divisional Accountants is 425-750 and for SAS it is 500-900. The Divisional Accountants working in

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the State  Government were  drawing the  following scales of pay :-      (a) Ordinary Grade: Rs. 425-750      (b) Selection Grade: Rs. 550-800.      Under the  aforesaid GOM  when the  cadre of Divisional Accountants come  under the  State Government, there were to be two  grades of Divisional Accountants. Grade-I and Grade- II corresponding  to the  existing  Selection  and  Ordinary Grades. Now  while the  officers of  the SAS  cadre who were working with  the  State  Government  contended  that  under clause (i)  of para  5 of the GOM  they should also be given option to be absorbed in the State Service, the stand of the State was  that options  were to  be limited  to  Divisional Accountants  only   both  in  the  Ordinary  Grade  and  the Selection Grade.  In the impugned judgment the Tribunal held in favour  of the  respondents who belonged to SAS cadre and given direction mentioned in the beginning of this judgment.      The GOM  304 is  a quite lengthy one and a bare reading of it would show that it does not contemplate taking over of SAS cadre and it pertains only to the Divisional Accountants cadre. It  was submitted before us by the appellant that the interpretation of  clause (i) of para 5 of the GOM as put by the Tribunal was not correct and also that this clause could not be  read in  isolation. The  GOM and even para 5 clearly show that  it was  the take  over of the cadre of Divisional Accountants  from   the  administrative   control   of   the Accountant General.  Andhra  Pradesh and not of the cadre of SAS.      The Three  Man Committee,  as mentioned  in the GOM 304 reproduced above,  which had  been constituted  and  on  the recommendation of  which    GOM  was  issued  did,  however, recommend  that   SAS  Accountants   working  in  heavy  and important divisions  in the State might be taken over by the State Government  while constituting  the separate cadre and that  they   be  put   in  to  Grade-I  automatically.  This recommendation, it  would appear,  did not  find favour with the State Government decided to  take over only the cadre of Divisional Accountants  form the  administrative control  of the Accountant  General and  not he  cadre of  SAS.  It  was sumbitted that  this  action  of  the  State  Government  is discriminatory as  (i) it went against the recommendation of the Three  Man Committee  and (2)  SAS Accountants  had been working in  the State  Government on  specific projects  and rendering service  for the  last number  of years. We do not think on  these grounds  it could  be said that there is any discrimination, violating  Article 14  of  the Constitution. It is  a matter   of policy of the State Government which in its wisdom  decided to  create a separate cadre in the State by absorbing  the Divisional  Accounts working on deputation in the  State and  who were under the administrative control of the  Accountant   General,  Andhra  Pradesh.  This  Court cannot give  any direction to the State Government to have a different policy  and also absorb the SAS Accountants in its newly constituted  service. That  the State  Government will use the benefit of more experienced officers of SAS cadre is for the  State to  consider. Merely  on that  ground plea of discrimination cannot be advanced.      Too much  street was placed on the interpretation given to clause  (i) of  para 5  of the  GOM 304  as held  by  the Tribunal. It was contended that the expression "whose  names find place  on the  date of take over, in the gradation list of Divisional  Test passed Accountants and not to SAS passed Auditors/SAS Accountants. We do not think it is right way of looking at this clause. The Accountant General does maintain a  gradation  list  of  Divisional  Test  passed  Divisional

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Accountants and  in that  list the names of those Divisional Accountants who  passed SAS  test would also find place till those SAS  passed persons  are absorbed in the Cadre of SAS. It  does   appear  to  us  that  the  Tribunal  reached  its conclusion on  the interpretation  of clause  (i) of  para 5 while looking  at this  clause only as it was not having the benefit of  whole of  the GOM 304. This clause (i) read with clause (iv),  the operative  words of para and the option to be exercised  unmistakably show  the State Government wanted to take  over cadre  of Divisional  Accountants only. In our view, there  is no  ambiguity in clause (i) of para 5 of the GOM for us to go into to the recommendation of the Three Man Committee to  take a  view consistent with that taken by the Tribunal.   While    considering   the    clause   equitable consideration do  not come into play. When clauses is clear, effect has  to be  given to it and no question of any strict or liberal construction would arise.      We were  referred to  a decision  of this Court in J.G. Prasada Rao  and Others  vs.  Secretary  to  Government  and others   [(1996)  7  SCC  51]  which  decided  the  inter-se seniority of  the Divisional  Accountants absorbed  in State service by   virtue  of GOM  304. This  Judgment  refers  to framing of  Rules  under  proviso  to  Article  309  of  the Constitution   constituting    Andhra   Pradesh   Divisional Accountants Service  under  the  Andhra  Pradesh  Divisional Accounts Officers  Service Rules,  191810  which  came  into force with  effect form January 1, 1980. This judgment is no help in these proceedings on the issues raised before us.      There is  another aspect  of the  matter which  we must refer to. When SAS Accountants were not given the benefit of GOM 304  to exercise  their options  on the  ground that her names were  not found  in the  gradation list  of Divisional test passed  Divisional Accountants  in the  office  of  the Accountant General,  they filed writ prtitions in the Andhra Pradesh High  Court which  were allowed  on October 12, 1982 with a direction that those SAS Accountants who were working on the  date of  take over  as Divisional Accountants, shall also be given options and if they opt they shall be absorbed and placed in the Selection Grade of Divisional Accountants. The State  Government filed  an appeal against that judgment of the  single Judge  before the  Division Bench of the High Court which was dismissed. Thereafter in compliance with the directions of  the High  Court the  State Government  issued another GOM dated July 24, 1985 calling for options form SAS Accountants.  Those  who  gave  options  were  accepted  and absorbed in  the newly created service by issuing a separate GOM on  February 27,  1986. It  so happened  that two of the Divisional Accountants  who were  not parties  in  the  writ petitions filed  separate appeals  before the Division Bench claiming that  they were affected parties and questioned the judgment of  the  learned  single  Judge  allowing  he  writ petitions of the SAS Accountants. By this time, the Division Bench of the High Court noticed the at the Supreme Court had rendered a  Judgement  and  as  per  Article  371-D  of  the Constitution,  the   High  Court   had  no  Jurisdiction  to entertain service  matters pertaining  to  state  Government employees and  that  the  employees  had  to  agitate  their grievances only  in the  Administrative Tribunal. In view of the decision  of  the  Supreme  Court.  the  Division  Bench allowed the  writ appeal filed by the Divisional Accountants and  dismissed   the  writ   petitions  filed   by  the  SAS Accountants. The  SAS Accountants, therefore, approached the Tribunal which  gave the  judgment in  their favour which is now impugned before us. On the basis of their background, it was submitted  before us  that since  the  judgment  of  the

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learned single  Judge in  writ petitions  filed by  the  SAS accountants had  been affirmed in appeal earlier by Division Bench, the  second Division  Bench could  not have dismissed the writ  petitions and  set aside the judgment and order of the  learned  single  judge.  We  are  not  going  into  the validity or the orders passed by the two Division Benches as SAS Accountants  did not  come up  in appeal  in this  Court against the  order of  the Division  Bench subsequently made dismissing the  writ petitions. We would, however, only like to say  the second  Division Bench  if it was of the opinion that it  has to take a different view than that taken by the first Division  Bench the  matter  should  as  a  matter  of propriety have  been referred  to  a  larger  bench.  It  is certainly a  question of  self-discipline which court should observe.      These appeals  are,  therefore,  allowed  the  impugned judgment of  the Andhra  Pradesh Administrative  Tribunal is set aside and OAs filed  by the respondent are dismissed.