22 February 1983
Supreme Court
Download

V.S. MURTY 7 OTHERS Vs THE DEPUTY CHIEF ACCOUNTS OFFICER & OTHERS

Bench: DESAI,D.A.
Case number: Appeal Civil 263 of 1982


1

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 10  

PETITIONER: V.S. MURTY 7 OTHERS

       Vs.

RESPONDENT: THE DEPUTY CHIEF ACCOUNTS OFFICER & OTHERS

DATE OF JUDGMENT22/02/1983

BENCH: DESAI, D.A. BENCH: DESAI, D.A. ERADI, V. BALAKRISHNA (J)

CITATION:  1983 AIR  403            1983 SCR  (2) 404  1983 SCC  (2) 115        1983 SCALE  (1)169

ACT:      Andhra Pradesh  Ministerial  Rules,  1961,  Rule  3(2)- Whether the  Deputy Chief Accounts Officers N.S. Project, is the Head  of the Department-Seniority-Inter- se seniority of appellants and  respondents, whether will be governed by the first proviso  to  Rule  36(e)  or  by  the  second  proviso thereto.

HEADNOTE:      The appellants,  who were  serving in the office of the Chief Engineer  Nagarjuna Unit as officiating Upper Division Clerks, were  transferred to  the  office  of  Deputy  Chief Accounts officer,.  N.S. Project  by an order dated February 8, 1964.  Respondents 2  to 108  were initially recruited as Lower Division  Clerks during the period 1959 65 and some of them were  promoted  as  Upper  Division  Clerks  from  1961 onwards.  After   their  transfer,   their   services   were regularised by  the Chief  Engineer, as  per his proceedings dated August  11, 3 1968. This was challenged by some of the persons similarly  situated like  the present respondent and the High  Court dismissed  the Writ  Petition as well as the writ appeal, holding that the transfer was on administrative grounds and  therefore their length of service in the parent department had  to be  taken into account for the purpose of determining their seniority.      By its order G.O.M.S.. 27 P.W.D. dated February 3,1972, the State  Government accorded  sanction  to  the  permanent retention of the posts set out in the order with effect from 1 4.1967 in the office of the Deputy Chief Accounts officer. Among other, 38 posts of the Upper Division Clerks were thus made permanent  by this  order with a further provision that the posts  so made permanent shall be filled in by personnel already  working   in   the   Accounts   organisation.   The appellants, whose services were already regularised were now made permanent by the Deputy Chief Accounts officer.      Feeling aggrieved  by the  said orders  the respondents filed a  writ petition  before  the  High  Court  of  Andhra Pradesh which  was transferred  to the  A.P.  Administrative Tribunal. The  Tribunal allowing  the petition held that the Deputy Chief Accounts officer had not the powers of the Head of a  Department and was, therefore, not competent to absorb and retain  the appellants  in his  office and  confirm them

2

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 10  

against the  posts  made  permanent.  Hence  the  appeal  by special leave. 405      Allowing the appeal, tho Court ^      HELD:  1:1.  The  Deputy  Chief  Accounts  officer  DOW redesignated  as   Director  of  Accounts  is  the  Head  of Department for  the purpose  of Rule  3(2) of  Service Rules and, therefore,  the confirmation  of the appellants against the permanent  posts of  Upper Division  Clerk is  in order. [411 E, 415 A-B]      1:2. The  Deputy Chief  Accounts officer is shown to be directly working  8 under  a secretariat  department without intervention of  any higher  office. When  the office of the Financial Adviser  and Chief Accounts officer under whom the Dy. C.A.O.  was directly  working, was  declared in  1966 as Secretariat department,  the Dy.  C.A.O. was  invested  with power of  appointing authority  which comprehended the power to appoint  persons who  would be  eligible for  pay  scales applicable to  the staff  in the  offices of  the  Heads  of Department. The  unofficial note  dated June 11, 1969 of the F.A. and C.A.O. makes the position clear.           [412 G; 413 A-B]      1:3.  Even   without  reference   to  Rule   3(2),  tho appellants  could   be  absorbed,   in  tho   instant  case. Appellants were  transferred to  tho office of Dy. C.A.O. in 1964. Their  regularisation was held as valid and regular by an earlier  decision of  the A.P.  High  Court  They  having rendered service  for eleven  long  years  in  the  Accounts organisation before the impugned action was taken, they were entitled to  be absorbed  in the department by virtue of tho proviso in  G.O.M.S. 27 dated 3rd February 1972. [415 D,E,F- H, 416 A]      2.1 The  inter-se-seniority of  the appellants  and the respondents would  be governed  by the first proviso to Rule 36(e) and  not by  the second proviso thereto. This position not only  stands concluded  by tho  earlier decision  of the A.P. High  Court but  also by  the very  orders of transfer. [417 A-B]      2:2. The  transfers were  on administrative grounds and certainly not  at the  request of the appellant. Further tho transferred personnel  could not  have been considered as on deputation because  if a  Government servant is sent outside his office  on deputation,  there are  certain  benefits  to which be  would be entitled which in this case are not shown to have been made available to the appellants. [412 A-B]

JUDGMENT:      CIVIL APPELLATE  JURISDICTION: Civil  Appeal No. 263 of 1982.      Appeal by  special leave  from the  Judgment and  order dated  the   Ist  September,  1980  of  the  Andhra  Pradesh Administrative Tribunal  Hyderabed in  Transferred  Petition No. 1663 of 1976.      A. Subba Rao for the Appellant.      P.P. Rao and G.N. Rao for Respondent No. 1.      T.  V.  R.  Tatachari,  and  A.  V.  V.  Nair  for  the Respondents, 406      The Judgment of the Court was delivered by      DESAI, J.  This appeal  by special  leave  is  directed against the decision in Writ Petition No. 1021 of 1975 filed in the  Andhra Pradesh High court at Hyderabad which came to

3

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 10  

be transferred  under para  14 (1)  of  the  Andhra  Pradesh Administrative Tribunal order 1975 and which was numbered as Transferred Writ  Petition No. 1663 of 1976, by which Andhra Pradesh  Administrative   Tribunal  (Tribunal’   for  short) allowed the writ petition and quashed the orders permanently absorbing respondents  2 to  10 in  the various posts in the office of  Deputy Chief  Accounts officer,  Nagarjuna  Sagar Project. Respondents  2 to  10 in  the High  Court  are  the appellants in  the present  appeal, and original petitioners are respondents  2 to  108. Deputy Chief Accounts officer is respondent No. 1.      Nagarjuna Sagar  Control Board  was constituted  in the year 1955 charged with a duty to implement N.S. Project. The Board had the power to recruit required ministerial staff on purely temporary  basis. On  August 1,  1959, a decision was taken by  the  Andhra  Pradesh  Government  to  disband  the autonomous Board  and to convert it into a department of the Government. On  the conversion  of the  set up  of the Board into a  department of  the Government it became necessary to devise ways  and means  to absorb the employees recruited by the board.  Number of  controversies surfaced  and  to  some extent the present one is one such controversy. There was an office styled as: The office of the Chief Engineer, N.S. Dam with  the   Chief  Engineer   as  Head  of  the  Department. Appellants were serving in the office of the Chief Engineer, N.S Dam Unit. By the order dated February 8, 1964 appellants were transferred  to the  office of  the  Pay  and  Accounts officer, N.S.  Project. At  the time of transfer, appellants were officiating  as UDC  and were directed to report to the Deputy Chief  Accounts officer, N.S. Project to be posted as UDCs. Since  then appellants have been working in the office of the Dy. CAO and some of them have been even promoted, may be temporarily,  to  the  post  of  Superintendent.  By  the G.O.Ms. No.  27  PWD  dated  February  3,  1972,  the  State Government accorded  sanction to  the permanent retention of the posts  set out in the order with effect from 1.4.1967 in the office  of Dy.  CAO. Amongst other 38 posts of UDCs were thus made  permanent by this order. The aforementioned order further provided  that the  posts so made permanent shall be filled in  by personnel  already  working  in  the  Accounts organisation. It appears that some of the appellants made 407 a representation to the Dy. CAO for the permanent absorption in A  his office.  Ultimately  by  various  orders  made  in February 1975,  appellants were permanently absorbed as UDCs in  the  establishment  of  Dy.  CAO  and  they  were  given seniority  as   provided  in   Rule  27  of  Andhra  Pradesh Ministerial service  Rules The respondents 2 to 108 who were petitioners before the Tribunal were working as UDCs or LDCs since the  inception of  their career  in the  office of Dy. CAO. They were initially recruited as LDCs during the period 1959-65. Some  of them  were  promoted  as  UDCs  from  1961 onwards. They  were aggrieved by the permanent absorption of the present  appellants who  were respondents  in  the  High Court. They  accordingly filed  the writ petition from which this appeal  arises, contending  that  the  appellants  were holding substantively post of UDC in the office of the Chief Engineer  and   they  were   not  transferred  but  sent  on deputation in  the Pay  and Accounts office as per the order dated February  8, 1964  and other  like orders by the Chief Engineer, N.S.  Dam and  they had  a permanent  lien in  the parent department  and therefore, they could not be absorbed in the  office of  the Dy. CAo. It was, therefore, contended that they may be repatriated to the parent department but in any event even if these are not to be repatriated they could

4

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 10  

not claim  to be  absorbed permanently  over the respondents who have been since the inception of their career working in the office  of Dy. CAO. The specific contention was that the Dy. CAO  not being the Head of the Department, the provision contained in  Rule  3  (2)  of  Andhra  Pradesh  Ministerial Service Rules, 1961 would not be attracted and therefore the appellants could  not be  said to  have  been  recruited  by transfer and  therefore, could  not have  been absorbed  and they had  no right  to either  claim any  permanent post  or promotion in  the office  of the Dy. CAO. The submission was that  the   permanent  retention   and  absorption   of  the appellants adversely  affected the  promotional prospects of the present respondents and the retention and absorption and consequent seniority  being contrary  to relevant rules must be struck down as invalid      The learned  member of  the Tribunal  held that the Dy. CAO. had  not the powers of the Head of a Department. It was not therefore,  within his  competence to  absorb and retain the appellants  in his  office and  confirm them against the posts made permanent by the G.O.Ms. No. 27 dated February 3, 1972. As  a corollary  it was  held that  the various orders made in February 1975 permanently 408 transferring,  absorbing   and  retaining  and  consequently granting seniority  to the  appellants were violative of the rules and  were  struck  down.  Hence  this  appeal  by  the original respondents 2 to 10      Appellants indisputably  were working  as  UDCs  for  a period  of  more  than  3  years  before  they  came  to  be transferred by  the Chief  Engineer to the office of Dy. CAO in February 1964.      This order  clearly shows  that the  transfer  was  for administrative convenience.  No where the orders recite that the transfer was at the request of the transferred personnel The order  is the usual short cryptic government order which recites that  the UDCs whose names were set out in the order were transferred to P.A.O.’s office, N.S. Project. The order directs all  the transferred  UDCs to report for duty to Dy. CAO, N.S.  Project immediately on their relief. The language of this  order leaves no room for doubt that the head of the department  under   whom   the   appellants   were   working transferred  them   for  administrative   reasons  and   for exigencies  of  service.  Complying  with  this  order,  the appellants reported  for duty to the Dy. CAO and since then, except  appellant   No.  9,  the  rest  of  them  have  been continuously  working  as  UDC  and  have  earned  temporary promotion as Superintendent. So far there is no controversy.      The Tribunal  nowhere examined  the power  of the Chief Engineer, N.S. Dam Project to transfer persons working under him to  the office of Dy. CAO. It must therefore, be assumed that he  had the  power to transfer appellants to the office of the  Dy. CAO.  It does not transpire from the record that the transfer  was at the request of transferees. lt does not appear that  these persons  held  the  lien  in  the  parent department. It  does not transpire from the record that they were given any proforma promotions in the parent department. Virtually, since  the transfer,  they have  been treated  as part and  parcel  of  the  establishment  of  Dy.  CAO.  The appellants were holding the post of UDC for a period of more than 3 years prior to their transfer from the offices of the Chief Engineer  to the  office of the Dy. CAO. Indisputably, therefore, when  they  were  transferred  and  occupied  the identical post  in the  office of  the Dy.  CAO, some of the respondents working  in the office of the Dy. CAO would have been adversely  affected  because  in  the  absence  of  the

5

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 10  

appellants, if it became necessary to have more posts in the 409 category of  UDC, obviously  some of the LDCs working in the office of the Dy. CAO could have been promoted. This becomes manifest from the judgment of a Division Bench of the Andhra Pradesh High  Court in Writ Appeal No. 96 of 1970. After the appellants were transferred, their services were regularised by the  Chief Engineer  as per  his proceedings dated August 11, 1968.  This proceeding  was challenged  by some  of  the persons similarly  situated like  the present respondents on the  ground   that  the   present  appellants  had  come  on deputation and  not on  transfer and  they cannot  be  given seniority over  those who  joined service  in N.S.  Dam Unit from the inception of their career. The learned Single Judge dismissed the  petition holding  that the present appellants were  transferred   on  administrative   ground;  that   the temporary posts  which they  filled in  were converted  into permanent posts  and the  appointments of  the appellants in those posts  were regularised. It was held that the transfer was on administrative ground, and therefore, their length of service in  the parent  department  had  to  be  taken  into account for  the purpose  of determining their seniority. On this finding,  the writ  petition  was  dismissed,  and  the appeal met  with the  same fate.  Thus the  first  challenge failed.  Appellants   were   thus   given   seniority   over respondents in  the office  of the  Dy. CAO. We have serious doubts whether  the Tribunal  had jurisdiction to reopen the settled question  about the status of the present appellants in the  office of  the Dy.  CAO, which would incidentally be the effect  of  the  judgment  of  the  Tribunal.  We  would presently examine the contention which has found favour with the Tribunal and which in our opinion is wholly untenable.      After reciting  the various  contentions, the  Tribunal addressed itself  to the  question which  in its  view was a primary question  whether the  Dy. CAO  was the  Head of the Departments. The  Tribunal observed that it is only if it is held to  be office of Head of a Department that the transfer of the  present appellants  in one out of 4 vacancies of UDC under Rule 3 (2) can be justified.      Frankly we are of the opinion that this question hardly arises in  this case,  in view  of the  earlier decision  of Andhra Pradesh  High Court  determining the  status  of  the appellants in the establishment of Dy. CAO. However, keeping aside for  the time being the decision of the High Court, we would proceed  to examine  the contention which found favour with the Tribunal on merits 410      The question  of ascertaining  whether Dy.  CAO was the Head of  the Department  arises in  view  of  the  provision contained in  Rule 3  (2) of  the Andhra Pradesh Ministerial Rules 1961.  Before  we  extract  rule  3  (2),  it  may  be mentioned that rule 4 provides for recruitment by promotion. Rule 3  (2) provies  that ’besides  promotion as provided in Rule 4  the first  vacancy  out  of  every  four  successive substantive  vacancies  of  Upper  Division  Clerks  in  the offices of  Heads of  Department and  Directorates shall  be reserved to  be filled  only from  among the  suitable Upper Division Clerks  working in  the subordinate  offices of the concerned Head of the Department or Directorate.’ There is a proviso  which   provided  that:  ’where  any  Head  of  the Department or  Directorate has  no subordinate  office under its administrative control, the vacancy shall be filled by a suitable Upper  Division Clerk  working in the office of any other Head  of the  Department or  Directorate or  any other subordinate office, as the case may be, in this service.’

6

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 10  

    The Tribunal  after referring  to this rule took notice of the recital in the impugned order dated February 28, 1975 wherein the  Dy. CAO  purported to  exercise the power under Rule 3  (2) of the Andhra Pradesh Ministerial Service Rules. The Tribunal  therefore, concluded that apart from any other consideration unless  all the conditions for attracting Rule 3 (2)  are satisfied,  the  order  must  fail.  Undoubtedly, before Rule  3(2) could  be attracted. it must be shown that the vacancies  in which appellants were absorbed were in the cadre of  UDC and  were in  the office  of the  Head of  the Department.  If   it  be   so,  then  out  of  4  successive substantive vacancies, the first one is to be reserved to be filled in either from amongst suitable Upper Division Clerks working in  the subordinate  office or  if there  is no such office, then  according to  the proviso,  from the office of the other Head of the Department of Directorate.      To ascertain  whether  Dy.  CAO  is  the  Head  of  the Department, the  Tribunal has  referred to the definition of the expression  ’Head of a Department’ as set out in Article 6 Chapter  Ir of the Andhra Pradesh Financial Code Volume 1, which provided  that  ’Head  of  a  Department’  means  ’any authority specially  declared by  the Government  to be  the head of  a department’.  Assuming that the definition of the expression ’Head of a Department’ 411 in the  Financial Code  which is  relevant to  ascertain the financial A  powers of  a Head of department, holds good for all other  powers conferred  on a Head of a Department under other rules,  this definition  merely provides  that any one would be a Head of a Department who is specially declared by the Government  to be the Department. The declaration if and when made  under the Financial Code would be confined to the Financial Code  and unless  expressly provided, it cannot be extended to  comprehend the  Head of  Department under other rules. With  this limitation  let us examine whether Dy. CAO is the Head of the Department.      To begin  with the Tribunal records a concession by the learned Government Pleader appearing for the Dy. CAO that no order has  been issued  declaring the  office of  the Deputy Chief Accounts officer, Nagarjuna Sagar organisation as Head of Department,  we are a little surprised at the stand taken on behalf  of the  Dy. CAO  in the  High Court  and in  this Court. In  the High  Court an affidavit was filed contesting the writ  petition filed  by the present respondents meaning thereby justifying  the order  in favour  of the appellants. After the  Tribunal quashed  the orders and respondents 2 to 10 filed  the present appeal, an affidavit has been filed by one Shri  T. Venkatanarayana, styling himself as Director of Accounts which  seems to  be the  new  designation  for  the former designation  of Dy.  CAO opposing  the appeal  of the present appellants.  He desires  the present  appeal  to  be dismissed on  the ground  that original transfer orders were only for  one year  and there  was no  order  extending  the period of  transfer. He also stated that R. v. Surya Rao one of the  appellants left  the  organisation  of  Dy.  CAO  on February 9, 1977 and was again taken in the year 1975 at his request. The  stand appears  to be self-contradictory and it has left us guessing about this volute face. Out of abundant caution we  have decided  to keep aside the stand of the Dy. CAo in  this behalf.  More so  because there is inexplicable silence on the point whether the Dy. CAo was not the Head of the Department.      It is  therefore, necessary  to  independently  examine whether Dy. CAo virtually enjoys the powers of the Head of a Department, so  as to  be treated  as Head of the Department

7

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 10  

for the  purpose of  Rule 3 (2). When the appellants came to be transferred by the Chief Engineer on February 8, 1964, it appears that  the office  of Dy.  CAO  was  administratively subordinate to the Chief Engineer, 412 N. S.  Dam Project. If it were otherwise, the Chief Engineer could not  have transferred the appellants who were borne on his establishment  to the  office of the Dy. CAO. As pointed out earlier, the transfers were on administrative ground and certainly not  at the request of the appellants. Further the transferred personnel  could not  have been considered as on deputation because  if a  government servant is sent outside his office  on deputation,  there are  certain  benefits  to which he would be entitled, which in this case are not shown to have  been made  available to  the appellants.  They were transferred from  the post  of UDC to the corresponding post of UDC.  In 1964 it atleast appears that Dy. CAO was not the Head of the Department      On, May 3, 1966 by G.O.Ms. No. 178, it was, inter alia, direct that  the staff working in the office of Deputy Chief Accounts officer and Pay and Accounts offices may be treated as Ministerial  Service and  will be given the scales of pay applicable to  the staff  in the  offices of  the  Heads  of Departments. lt appears that there was difference in the pay scales available  to the  staff in the office of the Head of the Department  and in subordinate offices. By this G.O. the ministerial staff in the office of Dy. CAO was held eligible for scales applicable to the staff in the office of the Head of the Department. This will impart a flavour to the Dy. CAO as being the Head of Department.      The Governor  of Andhra Pradesh made what are styled as ad-hoc rules for the temporary posts of ministerial staff in the offices of the Deputy Chief Accounts officer and Pay and Accounts officers under Financial Adviser and Chief Accounts officer’s organisation, Nagarjuna sagar Project, in exercise of the  power conferred  by the  proviso to  Art. 309 of the Constitution. By  Rule 1,  the  General  and  special  Rules commonly applicable lo the holders of the permanent posts of the respective  categories in the Public Works Department in the Andhra  Pradesh Ministerial Service were made applicable to the  holders of  the temporary  posts at Superintendents, UDCs, and  Typists and  Steno-typists in  the office  of the Deputy Chief  Accounts officer and Pay and Accounts officers subject to  the modifications  set  out  in  the  subsequent rules. One  such modification worth noticing is that Dy. CAO was   constituted    as   appointing   authority   for   the aforementioned staff  in his  office. Further  the Financial Adviser and Chief Accounts officer, 413 under whom  Dy. CAO  was directly  working, were declared in 1966 A  Secretariat Department.  . Accordingly  Dy. CAO came directly under  the Secretariat Department, and was invested with power  of appointing  authority which  comprehended the power to appoint persons who would for pay scales applicable to staff in the offices of the Heads of Departments. R      It was  however contended  that G.O.Ms.  No. 335  dated November 1,  1974 would leave no room for doubt that Dy. CAO is not the Head of the Department. The preamble of this G.O. reads as under:           "In the  circumstances  stated  by  the  Financial      Adviser and Chief Accounts officer, N.S. Project in the      N.O. Note  read above,  the Dy. Chief Accounts officer,      N.S. Project  in is delegated with the following powers      instead of declaring him as the Head of the Department.      The extent of delegation of power is irrelevant. It was

8

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 10  

submitted that  the recitals  herein extracted would put the matter beyond  the pale  of controversy that Dy. CAO was not only not  the Head of the Department but as he lacked powers of the  Head of  the department  certain powers  had  to  be specifically conferred  upon him. On the contrary this would justify the  belief that  ’Head of department’ for Financial Code and  for service  rules are  not terms  of co-extensive connotation and  the have  different  meaning  in  different context For  example, for  service  rules  the  Dy.  CAO  is declared an  appointing authority, the power usually enjoyed by Head of a department. But such Head of Department may not be so  declared for  the Financial  Code. In  the G.O. dated November 1,  1974, it  was-considered unnecessary to declare him Head  of a department for Financial Code and, therefore, certain powers  had to  be conferred  upon him. A perusal of powers would  reveal that they were financial powers one can be a  Head of the Department but whose financial powers. may be curtailed  under the Financial Code. Alternately, one may not be a Head of a Department for other purposes and yet may enjoy full  financial control if declared to be ’Head of the Department’ for  Financial Code.  We are  concerned in  this case  with   the  meaning  of  the  expression  ’Head  of  a department’ in Rule 3 (2). In this connection if the Dy. CAO is  shown   to  be  directly  working  under  a  secretariat department without intervention 414 of any  higher office  and if  it is  declared an appointing authority and  the  scales  admissible  to  the  ministerial service in  its office  are those admissible to the staff in the office  of the  Heads of  Department, there is no escape from the  conclusion that  for purposes  of Rule  3 (2),  he would be the Head of the Department.      We are  fortified this conclusion from U. O. Note dated June 11,  1969 of  the office of Financial Adviser and Chief Accounts officer  which is  the secretariat Department under which Dy.  CAO is  directly working. The Relevant portion of the Note may be extracted. It reads as under:           "Hitherto, recruitment to the post of L.D. Clerks,      U.D.  Clerks,   in  Deputy   Chief  Accounts   officers      organisation, Nagarjun  sagar Project was done based on      the  allotment  of  candidates  who  passed  Group  II.      Services  examination  of  the  Andhra  Pradesh  Public      Service Commission,  since, the  offices of  the Deputy      Chief Accounts officer and Pay and Accounts officers, N      S. Project  were considered  to enjoy the status of the      Heads of  the Department  offices. In G. O. Ms. No. 178      PWD, Projects  Wing, dated  3.5.1966 orders were issued      that the  office of  the Financial  Adviser  and  Chief      Accounts officer Nagarjuna sagar Project may be treated      as Secretariat  and  that  the  staff  working  in  the      offices of  the Deputy  Chief Accounts officers and Pay      and Accounts  officer may  be  treated  as  Ministerial      Service and  will be  given scale  of pay applicable to      staff in  the offices  of  the  Heads  of  Departments.      Further the  adhoc-rules issued in G. O. Ms No. 337 PWD      Projects Wing dated 24.9.1968 stipulate that the Deputy      Chief Accounts  officer, Nagarjuna sagar Project is the      appointing   authority    up   to    the   leavel    of      Superintendents in his organisation.      If there  was any lurcking doubt whether the Dy. CAO is the Head of the Departments, it stands wholly removed by the Note extracted  herein above.  It may  be recalled  that the power to  deaclare Head  of the Department as defined in the Financial Code  vests in  the Government  and the Government acts on  the advise of the concerned Secretariat Department.

9

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 10  

The concerned department is of Financial Adviser and Chief 415 Accounts officer,  which  is  declared  as  the  Secretariat Department.  And   this  note  shows  that  the  Secretariat Department meaning  thereby the  Government treated  the Dy. CAO as  the Head  of  the  Department.  Therefore.  for  the purpose of  Rule 3  (2), there is no room for doubt that Dy. CAO was the Head of the Department.      If Dy,  CAO was the Head of the Department then in view of Rule 3 (2) with regard to the recruitment in the cadre of UDC first out of every four successive substantive vacancies is  to  be  filled  in  from  the  subordinate  offices  and according to  the proviso  to Rule  3 (2),  if there  is  no subordinate office, from any other office of the Head of the Departments or  Directorate. There  is  a  recital  to  that effect in  the impugned  order which  was questioned  on the short that  Dy. CAO was not the Head of the Department. Once that ground  is out  of  the  way.  The  contention  of  the respondents must fail.      Briefly, we may point out that this very conclusion can be reached  by a  slightly different  process of  reasoning. Appellants were  transferred to  the office  of Dy.  CAO  in 1964. The  judgment of  the High  Court of  Andhra  Pradesh. practically  inter   partes,  affirms   the  position   that appellants  were   transferred  and  their  appointments  by transfer were valid. Their services were regularised and the High Court  held regularisation  valid and  legal. They were given seniority  over respondents  in that  orgaoisation. If appellants have  been working  for so  many years, they were entitled to  be absorbed,  if there was no legal bar against absorption. Their  entry in  office has  been  held  by  the Andhra Pradesh  High Court  in the earlier judgment as valid and regular  and they  having rendered  service for  11 long years before  the impugned  action was  , taken,  they  were entitled to  be absorbed  in he  department. Now the present dispute arose when by G. O. dated February 3, 1972, 38 posts in the  cadre of  UDC were  made permanent.  That very  G.O. provided that the posts made permanent shall be filled in by the personnel  already working in the Accounts organisation. Appellants were  working in  the Accounts organisation since 1964.      Their  services   were  regularised.  They  were  given seniority. Therefore, at the relevant time in 1975 they were working in  Accounts organisation.  They could therefore, be absorbed without  reference to  Rule 3  (2). The controversy arose because Dy. CAO referred to Rule 3 (2) in the impugned order. In our opinion that 416 was unnecessary.  They could  claim to be absorbed according to senitority  in the  posts made  permanent. And therefore, also the  impugned orders  were valid  but as  the  Dy.  CAO proceeded to  exercise power  under Rule  3  (2),  we  would uphold the validity for the reasons mentioned in the earlier portion of the judgment.      Before we  conclude, we  must advert to one contention, that as  the appellants  came at  their own  request,  their seniority would be governed not by the first proviso to Rule 36 (e)  but by  the second proviso. The relevant provisos to Rule 36  (e) cater to the method of determining seniority of persons transferred  on  administrative  ground  or  at  the request of  Government servant  from one  department to  any other department.  If the  transfer  was  on  administrative ground  from  one  department  or  office  to  another,  the seniority of  the transferred  Government servant  shall  be fixed with reference to the date of his first appointment in

10

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 10  

the  former   department  or   office  from   where  he   is transferred. If  on the  other hand,  the transfer is at the request of  the concerned  Government servant, his seniority will be  determined  with  reference  to  the  date  of  his appointment in  the department  to which  he is transferred. After referring  to these  provisos, it  was urged  that the appellants were transferred at their re quest and therefore, their seniority  has to  be determined with reference to the date  on   which  they   came  to   be  transferred  to  the organisation  of  Dy.  CAO.  In  fact,  this  contention  is concluded by the earlier decision of the Andhra Pradesh High Court. Even  apart from  that  there  is  no  merit  in  the contention. Appellants were transferred in February 1964 and we have referred to the transfer order more than once. There is not  the slightest whisper of transfer on request in that order. But  it was  urged that  initially transfer was for a period of  one year  only and the subsequent continuation in the office  of the  Dy. CAO does not prescribe the period of transfer. However,  the respondents  placed  reliance  on  a corrigendum issued  on March  3,  1964  by  which  following sentence was  added to  the order  of transfer dated Feb. 8, 1964. The addition reads as under:           "The above  transfers will  be for a period of one      year in the first instance."      It was  then pointed  out that  in the subsequent order the expression  used is not ’period of transfer’ but ’period of deputation’  and an  inquary was made whether the further extension of  period was necessary. This appears to us to be quibeling. Except  for appellant  9-R.V. Surya  Rao, all the appellants have been working in the 417      Office of  the Dy. CAO since 1964 and it is too late in the day  now to contend that the subsequent extension was at the request of the appellants Therefore, the seniority would be governed  by the first proviso to Rule 36 (e) and not the second proviso  and that having been done no question arises for interfering with the same.      As we are of the opinion that the Tribunal was in error in holding  that the  Dy.  CAO  was  not  the  Head  of  the Department, the  decision of  the Tribunal  is unsustainable and must  be quashed  and set aside. Accordingly this appeal is  allowed,   and  the   decision  of  the  Andhra  Pradesh Administrative  Tribunal,   Hyderabad  in  Transferred  Writ Petition No.  1663176 dated September 1, 1980 is quashed and set aside  and the Writ Petition field by the respondents in the Andhra  Pradesh High Court is dismissed with no order as to costs. S.R.                                         Appeal allowed. 418