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PETITIONER: S. PRAKASHA RAO AND ANR.

       Vs.

RESPONDENT: COMMISSIONER OF COMMERCIAL TAXES AND ORS.

DATE OF JUDGMENT23/02/1990

BENCH: AGRAWAL, S.C. (J) BENCH: AGRAWAL, S.C. (J) MISRA RANGNATH PUNCHHI, M.M.

CITATION:  1990 AIR  997            1990 SCR  (1) 561  1990 SCC  (2) 259        JT 1990 (3)    40  1990 SCALE  (1)456  CITATOR INFO :  RF         1991 SC2113  (12)

ACT:     Constitution  of  India,  Article  371-D/Andhra  Pradesh Public Employment (Organisation of Local Cadres and  Regula- tion of Direct Recruitment) Order, 1975: Para 3(1),  proviso and  paras 3(7), 4 & 5( i)--A. P. Commercial  Taxes  Depart- ment--Local  Cadres of Junior Assistants and Senior  Assist- ants  organised for Warangal Zone for seniority  and  promo- tion--State   Government  subsequently  creating   divisions within the zone and reallocating employees--Validity of.

HEADNOTE:     Article  371-D brought into the Constitution by  Thirty- second  Amendment Act, 1973, with effect from July  1,  1974 empowered  the President in respect of the State  of  Andhra Pradesh  by an Order (1) to require the State Government  to organise  any class or classes of posts in a  civil  service of, or any class or classes of civil posts under, the  State into different local cadres for different parts of the State and  allot  the  persons holding such  posts  to  the  local cadres,  and (2) to specify any part or parts of  the  State which  shall  be regarded as the local area for  direct  re- cruitment to posts in any local cadre.     In  exercise  of the power so  conferred  the  President issued the Andhra Pradesh Public Employment (Organisation of Local  Cadres and Regulation of Direct  Recruitment)  Order, 1975  on October 18, 1975. Para 3(1) of the Order  empowered the  State Government to organise the local cadre  within  a period of twelve months. The term ’local cadre’ was  defined in  para 2(1)(e) to mean any local cadre of posts under  the State  Government organised in pursuance of para 3, or  con- stituted  otherwise, for any part of the State. The  proviso added  to para 3(1) subsequently and published through  G.O. Ms. No. 34 dated January 24, 1981, empowered the  President, notwithstanding  the  expiration  of the  period  of  twelve months, to require the State Government, whenever he consid- ered  it  expedient so to do, to organise local  cadres  for different parts of the State. Para 3(7) permitted the  State Government to organise or to continue more than one cadre in

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respect  of any category of posts in any department for  any part  of  the State. Para 4 provided mode  of  allotment  of employees to local cadres. Para 562 5(1) declared that each part of the State for which a  local cadre  has  been organised, in respect of  any  category  of posts, shall be a separate unit for purposes of recruitment, appointment,  discharge, seniority, promotion and  transfer. In  the table in the schedule thereto the State was  divided into  seven zones and zone V consisted of the  revenue  dis- tricts  of Adilabad, Karimnagar, Warangal and  Khammam.  In- structions  were issued for implementation of the  Presiden- tial Order through G.O.Ms. No. 728 dated November 1, 1975 in organising the local cadres.     In pursuance of para 3(1) of the Order the State Govern- ment in Commercial Taxes Department issued order G.O.Ms. No. 581  dated  May 24, 1976 organising zones and  the  Warangal Zone consisted of revenue districts of Adilabad, Karimnagar, Warangal  and Khammam, which was co-terminus with zone V  of the Presidential Order. The Junior Assistant in each revenue district in Warangal zone was a separate district post,  but for  the purpose of promotion to the post of Senior  Assist- ants  and  Assistant Commercial Taxes Officers,  which  were zonal  posts, common seniority of the Junior Assistants  and Senior Assistants working in all the four revenue  districts was  being maintained and promotion made in accordance  with the rules.     Subsequently,  however,  the  State  Government  created separate divisions within the zones in the Commercial  Taxes Department through G.O.Ms. No. 1900 dated December 22,  1981 carving out Adilabad and Karimnagar as Adilabad Division and Warangal  and  Khammam as Warangal  Division.  Options  were called  for and the employees allotted in G.O.Ms.  No.  1648 dated November 22, 1982 to the respective divisions.     Agrieved by the said order respondent Nos. 4 and 5 filed a petition before the State Administrative Tribunal contend- ing  that for promotion from Senior Assistant  to  Assistant Commercial  Taxes Officer zonal seniority of Warangal  local area comprising of Warangal, Khammam, Karimnagar and  Adila- bad was the criteria, that the Adilabad division  consisting of  Adilabad  and Karimnagar districts of  Commercial  Taxes Department  could not be treated to be a zone, and that  the divisional  seniority prepared by the department was bad  in law.  The  Tribunal held that the zonal  seniority  was  the criteria  for purposes of promotion, and allowed  the  peti- tion.     The State Government in exercise of its power under  cl. (5) of Art. 371-D annulled that order. Thereupon, respondent Nos.  4  and 5 filed a writ petition under Art.  32  of  the Constitution wherein this Court 563 declared cl. (5) of Art. 371-D as ultra vires. Left with  no alternative  the State filed special leave petition  against the original order of the Tribunal, which was dismissed.     Subsequently,  the appellants-beneficiaries  of  G.O.Ms. No.  1648 of 1982, filed representative petition before  the Tribunal, which was dismissed.     In the appeal by special leave it was contended for them that  the  State Government continues to have  its  inherent power  to  organise local cadres to meet the  exigencies  of administrative  needs, as there was no prohibition  in  that regard  in  the Order, and that the phrase  ’or  constituted otherwise’  engrafted in the definition of ’local cadre’  in para  2(1)(e)  read with para 3(7) gave ample power  to  the State  Government to create a zone within the Warangal  zone

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for  the purpose of recruitment, seniority and promotion  in the Commercial Taxes Department. Dismissing the appeal, the Court,     HELD:  1.  The action taken by the State  Government  in issuing G.O.Ms. No. 1648 dated November 20, 1982 was illegal and invalid contravening the proviso to para 3(1) and para 4 of the Presidential Order. [573C]     2.1 Once the State Government had organised the  Commer- cial Taxes Department by constituting different local cadres and Warangal zone comprising of the four revenue  districts, namely,  Adilabad,  Karimnagar,  Khammam  and  Warangal  was declared  as local area for local cadres of  the  Department through  G.O.Ms. No. 581 dated May 24, 1976 in  exercise  of the  powers under para 3(1), it ceased to have any power  to bifurcate  or  reorganise  a zone within a  zone,  cadre  or cadres therein. [572E-G]     2.2  In exercise of the power under the proviso to  para 3(1),  it is for the President and President alone  notwith- standing  the  expiry of the period of  twelve  months  pre- scribed in para 3(1), by an order require the State  Govern- ment whenever he considers it expedient so to do to have the power  under para 3(1) exercised. Therefore, the State  Gov- ernment  shall have to place necessary material  before  the President; the President shall consider that it is expedient to  organise  any  class or classes of posts  in  the  civil services  of and class or classes of civil posts under,  the State  into a further local cadre within the local cadre  in the  zone  already prescribed and to pass an order  in  that regard  requiring  the State Government to so  organise  it. [572G; 573A] 564     2.3 However, for the purpose of efficient administration or   convenience,   the   State   Government   may    create division/divisions within the local area or local cadre. But for  the purpose of recruitment, seniority, promotion,  dis- charge, etc. the local cadre once organised under para  3(1) shall be final and continue to be operative until action  is taken  under the proviso to para 3(1) of the Order.  In  the instant  case, no order of the President, as provided  under the proviso, was made. [573A-B]     3. The Presidential Order was made pursuant to the power given  under Art. 371-D, which is a special  provision  made under  the Constitution (Thirtysecond Amendment)  Act,  1973 peculiar  to  the State of Andhra  Pradesh.  Therefore,  the State Government had no inherent power in creating a zone or organising  local cadres within the zones except in  accord- ance with the provisions of the said Order. [573D]     4. The phrase ’or constituted otherwise’ defined in para 2(1)(e) is only related to the power given by the  President to  the State Government to organise local cadre. Para  3(1) is the source of that power. The said phrase is,  therefore, to be understood in the context and purpose which Art. 371-D and  the President Order seek to achieve. The State  Govern- ment cannot create local cadres at its will. [573E; 575A]     Kochuni  v. States of Madras & Kerala, AIR 1960 SC  1080 and  Lilavati Bai v. The State of Bombay, [1957] SCR 721  at 735, distinguished.     5. The power given to the State Government in para  3(7) of the Order is only to organise a separate cadre in respect of  any category of posts in any department when  more  than one cadre in respect of such category exists in each depart- ment.  So, the State Government may organise one cadre  when more  than one cadre in respect of different  categories  of posts  exist  in a zone under para 3(1) of  the  Order.  For instance,  while creating local cadre co-terminus  with  the

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administrative  control of the Dy. Commissioner,  Commercial Taxes, local cadre for Senior Assistants may be created.  It is  also made manifest in Instruction No. 7 and 9(e) of  the instructions contained in G.O.Ms. No. 728 dated November  1, 1975.  But  it  is only for the  purpose  of  administrative convenience,  not for the purpose of recruitment,  seniority or promotion etc., as the case may be. [575C-E]     Thus,  the creation of a division and maintaining  sepa- rate seniority of Junior Assistants and Senior Assistants in the  Commercial Taxes Department for adilabad  and  Warangal Divisions were illegal, contrary 565 to  order  issued in G.O.Ms. No. 581  and  the  Presidential Order. [575F]

JUDGMENT:     CIVIL  APPELLATE JURISDICTION: Civil Appeal No. 1259  of 1990.     From  the  Judgment  and Order dated  6.10.1989  of  the Andhra  Pradesh Administrative Tribunal in R.P. No. 2403  of 1987. Dr. L.M. Singhvi and Y.P.Rao for the Appellants.     P.P.  Rao, K. Madhava Reddy, Ms. Rani Chhabra,  T.V.S.N. Chari and B. Rajeshwar Rao for the Respondents. The Judgment of the Court was delivered by K. RAMASWAMY, J. 1. Special leave granted.     This appeal under Article 136 is against the order dated October 6, 1989 made in R.P. No. 2403 of 1987. The facts are as under:     2.  The respondents Nos. 4 & 5, B. Kumara Swamy  and  G. Amarender, in this appeal filed R.P. No. 1615 of 1984 before the  Andhra  Pradesh  Administrative  Tribunal,   Hyderabad, contending for promotion from Senior Assistant to  Assistant Commercial Taxes Officer, zonal seniority of Warangal  local area comprising of Warangal, Khammam, Karimnagar and  Adila- bad  is  the criteria. The Adilabad division  consisting  of Adilabad  and Karimnagar Districts of the  Commercial  Taxes Division  cannot be treated to be a zone and the  divisional seniority  prepared by the department is bad in law. It  was held by the Tribunal by order dated February 18, 1986,  that the zonal seniority is the criteria. Though, for the  admin- istrative  convenience a division consisting of the  revenue districts  of Adilabad and Karimnagar may be treated as  one division  and Warangal and Khammam as Warangal division  may be carved out, for the purpose of promotion zonal  seniority has to be maintained. Accordingly, the Tribunal allowed  the Representation Petition. The Government of Andhra Pradesh in exercising  its power under cl. (5) of Art.  371-D  annulled that order which had given rise to filing of W.P. No. 998 of 1986  in this Court under Art. 32 of the Constitution.  This Court declared cl. (5) of Art. 371-D of the Constitution  as ultra vires violating the basic structure. The State Govern- ment filed S.L.P. No. 8868 of 1987 against order in R.P. No. 1615  of 1984 which was dismissed by this Court on  December 7, 1987. Subsequently, the petitioners impleading the 566 respondents  Nos. 4 and 5 and the 6th respondent,  G.  Satya Rao, filed R.P. No. 2403 of 1987, which was dismissed by the Tribunal. The appellants filed Civil Appeal No. 3203 of 1989 which was allowed by this Court and remitted to the Tribunal and directed, "to examine the legal effect of the Government order  in  G.O.Ms. No. 1648 dated November  20,  1982  after again  hearing the parties." Thereafter, the Tribunal  after

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considering  the  effects of the G.O. held that in  the  im- pugned  order  that G.O.Ms. No. 1648 was issued  under  Para 5(2)(c)  of the Andhra Pradesh Public Employment  (Organisa- tion  of Local Cadres and Regulation of Direct  Recruitment) Order  1975 for that "the ’order’ no allotment of  cadre  in terms  of  para 4 of the order was issued. The  G.O.Ms.  No. 1648 and G.O.Ms. No. 1900 do not mention the constitution of new  local  cadre  for Adilabad Division and  no  order  was issued  constituting a separate cadre in terms of  ’the  or- der’.  Accordingly, it reiterated the original  order  dated April 29, 1988.     3.  The Constitution (Thirtysecond Amendment) Act,  1973 through  s.  3 thereof brought into  the  Constitution  Art. 371-D  with  effect  from July 1, 1974. This  is  a  special provision in respect of the State of Andhra Pradesh empower- ing the President, having regard to the requirements of  the State as a whole for equitable opportunities and  facilities for the people belonging to different parts of the State, in the matter of public employment and in the matter of  educa- tion, and different provisions may be made for various parts of the State to make an order, in particular-- (a)  require the State Government to organise any  class  or classes  of  posts in a civil service of, or  any  class  or classes of civil posts under, the State into different local cadres for different parts of the State and allot in accord- ance with such principles and procedure as may be  specified in  the  order the persons holding such posts to  the  local cadres so organised; (b)  specify any part or parts of the State which  shall  be regarded as the local area-- (i)  for  direct  recruitment to posts in  any  local  cadre (whether  organised  in  pursuance of an  order  under  this article   or   constituted  otherwise)   under   the   State Government  ..... (Other  clauses  are not relevant for the  purpose  of  this case, Hence omitted.) 567     4.  In exercise of the power under cl. (1) & cl. (2)  of Art.  371-D the President issued ’the order’ in  G.S.R.  No. 524-E  dated  October 18, 1975 which  was  notified  through G.O.Ms. No. 674 dated October 20, 1975. Para 2(1)(c)  inter- pretation  clause defines ’local area’ in relation to  local cadre thus: "’local  area’,  in relation to any local cadre,  means  the local  area specified in paragraph 6 for direct  recruitment to  posts in such local cadre, and includes, in  respect  of posts belonging to the category of Civil Assistant Surgeons, the local area specified in sub-paragraph (5) of paragraph 8 of this Order." Para 2(1)(e) defines ’local cadre’: "’local  cadre’  means any local cadre of  posts  under  the State  Government organised in pursuance of paragraph 3,  or constituted otherwise, for any part of the State." Para 2(1)(m) defines ’zone’: "’zone’  means a zone specified in the Second Schedule  com- prising the territories mentioned therein." Para 3(1) provides organisation of local cadres: "The  State  Government  shall, within a  period  of  twelve months from the commencement of this Order, organise classes of  posts  in the civil services of, and  classes  of  civil posts  under,  the  State into different  local  cadres  for different  parts  of  the State to the extent,  and  in  the manner, hereinafter provided."     The proviso thereto was added and was published  through G.O.Ms.  No. 34G.A.(SPF. A.) Deptt. dated January 24,  1981,

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which reads thus: "Provided  that, notwithstanding the expiration of the  said period,  the President may by order, require the State  Gov- ernment,  whenever  he considers it expedient so to  do,  to organise any classes of posts in the civil services of,  and classes of civil posts under, the State into different local cadres for different parts of the State." (emphasis supplied) 568     Sub-paragraph  (2) provides that the posts belonging  to the  category of lower division clerk, (now redesignated  as Junior  Assistant),  and  to each of  the  other  categories equivalent to, or lower than that of a lower division clerk, in each department in each district shall be organised  into a  separate  cadre.  Sub-paragraph (3)  provides  the  posts belonging  to each non-gazetted category, other  than  those referred  to  in sub-paragraph (2), in each  zone  shall  be organised into a separate cadre. Sub-paragraph (4) provides, the  post belonging to each specified gazetted  category  in each  department  in  each zone shall be  organised  into  a separate  cadre. Paragraph 3(5) with a  non-obstanti  clause provides that: "Notwithstanding  anything contained in  sub-paragraphs  (3) and  (4),  the State Government may where  it  considers  it expedient  so  to do and with the approval  of  the  Central Government organise the posts belonging to any of the  cate- gories referred to therein, in any department, or any estab- lishment  thereof,  in two or more contiguous zones  into  a single cadre." Sub-paragraph (6) is not material. Hence omitted. Sub-paragraph (7) provides: "In  organising a separate cadre in respect of any  category of posts in any department for any part of the State,  noth- ing  in  this  Order shall be deemed to  prevent  the  State Government from organising or continuing more than one cadre in respect of such category in such department for such part of the State." Paragraph 3(8) is also not necessary. Hence omitted.                                                            (emphas is supplied)     Paragraph  4  provides  mode of  allotment  of  persons, holding posts required to be organised into local cadres  in accordance  with  the  principles and  procedure  laid  down therein, the details of which are not material. Hence  omit- ted. Paragraph 5 declares that: "(1)  Each  part of the State, for which a local  cadre  has been  organised, in respect of any category of posts,  shall be 569 a  separate unit for purposes of  recruitment,  appointment, discharge, seniority, promotion and transfer, and such other matters  as  may be specified by the  State  Government,  in respect of that category of posts." (Other sub-paragraphs relate to transfer of persons and  are not relevant for the purpose of this case. Hence  omitted.). Paragraph 6 deals with local areas: (1) Each district shall be regarded as a local area-- (i) for direct recruitment to posts in any local cadre under the  State Government comprising all or any of the posts  in any department in that district belonging to the category of a  lower division clerk or to any other category  equivalent to  or  lower than that of a lower  division  clerk  (Junior Assistant):

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(ii) for direct recruitment to posts in any local  authority within  that district, carrying a scale of pay, the  minimum of which does not exceed the minimum of the scale of pay  of a  lower  division clerk or a fixed pay not  exceeding  that amount. (2) Each zone shall be regarded as a local area--the details of which are not material. Hence omitted. (emphasis supplied)     In the Table ’Local area and the ratio’ in the Schedule, the State of Andhra Pradesh was divided into seven zones and zone V consists of the revenue districts of Adilabad, Karim- nagar,  Warangal and Khammam. Instructions have been  issued for  implementation  of the order through  G.O.Ms.  No.  728 dated November 1, 1975, in organising the local cadres. Para 3  thereof postulates, after quoting paragraph 3(1)  of  the order referred to hereinbefore, thus: "A local cadre is a cadre comprising the posts belonging  to a  category in a Department and located within  a  specified part  of the State. The concept of the local cadre  is  thus related to the concept of the unit of appointment under  the service rules; the part of the State for which a local cadre is organised in respect of any category will serve as a unit of appointment etc., for that category. The scheme of organ- isation of local cadres under,the Presidential Order applies generally to all non-gazetted categories, other than those 570 specifically exempted under Government of India Notification G.S.R.  No. 529, (E), dated 18th October, 1975 issued  under paragraph 3(8) of the Order, as also to the specified gazet- ted categories, i.e., the gazetted categories listed in  the Third  Schedule to the Order and those that may be  notified in  pursuance of paragraph 2(i)(j) of the Order by the  Cen- tral Government."     5. Instruction 4(a) says that the lower division  clerks or equivalent categories or lower than that were  designated as  a District Cadre. Posts belonging to other  non-gazetted categories  were  designated as zonal  cadre  and  specified gazetted  cadres were also designated as zonal  cadres.  In- struction7 provides thus: "More than one Local Cadre permissible within Local Area--It should  be borne in mind that where the State Government  is required  to  organise  a local cadre for any  part  of  the State,  there  is no objection to organising  or  continuing more  than one local cadre for such part of the State  (vide paragraph 3(7) of the order). There is, therefore, no objec- tion  to having more than one cadre in Revenue  District  in respect  of a post belonging to the category of Lower  Divi- sion  Clerk  (Junior Assistant) or below or to  having  more than one cadre in a zone in respect of a higher category." (emphasis supplied)     Instruction  9(e) provides re-adjustment of  territorial jurisdiction, thus: "In several departments, the unit of appointment in  respect of  non-gazetted  categories is linked  to  the  territorial jurisdiction  of an authority or officer subordinate to  the Head of Department. For instance, the unit of appointment of Upper Division Clerks (Senior Assistants) in the  Commercial Taxes  Department is the division in charge of  Dy.  Commis- sioner. In the case of such departments if it becomes neces- sary  to  alter the units of appointment in order  to  bring them  into conformity with the Presidential Order, a  corre- sponding  adjustment in the territorial jurisdiction of  the departmental  authority may also become necessary  and  will have to be made  ......  " 571

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   6.  Thus,  it is seen that pursuant to the  power  given under cls. (1) & (2) of Art. 371-D the President had  issued the  order  organising local cadres and zone V  consists  of Adilabad,  Warangal,  Karimnagar and  Khammam  revenue  dis- tricts. It is the local area for the local cadres. The  post of  the Junior Assistant is the district cadre post and  the post  of  Senior Assistant and  Assistant  Commercial  Taxes Officers, etc. are the zonal posts. The State Government  is empowered under the Presidential Order to organise the local cadres  within  a period of twelve months from  October  20, 1975.  In pursuance thereof the State Government in  Commer- cial Taxes Department issued order G.O.Ms. No. 581 dated May 24,  1976  organising zones for the  purpose  of  Commercial Taxes Department, namely, Visakhapatnam, Kakinada,  Krishna, Guntur, Triputhi, Karnool, Warangal, Hyderabad-1 and Hydera- bad-II.  Warangal  zone  consists of  revenue  districts  of Adilabad,  Karimnagar,  Warangal  and  .Khammam.  Thus,  the Warangal zone of Commercial Taxes Department for the purpose of  recruitment,  seniority, promotion,  transfer,  etc.  of local cadres is co-terminus with the zone V of the Presiden- tial Order. The Junior Assistant in each revenue district in Warangal  zone  is a separate district post,  .but  for  the purpose  of promotion to the post of Senior  Assistants  and Assistant  Commercial Taxes Officers, which are zonal  posts common seniority of the Junior Assistants, Senior Assistants working  in all the four revenue districts shall have to  be maintained and promotions made in accordance with Ministeri- al Service Rules or the Commercial Taxes Subordinate Service Rules  issued under proviso to Art. 309 of the  Constitution as the case may be. It would be subject to rule of  reserva- tion  for  local candidates as adumbrated in para 8  of  the Order and the general rule of reservation made in Rule 22 in Andhra Pradesh State and Subrodinate Service Rules.     7.  It would appear from the record that the  Government intended to reorganise, for the purpose of efficient  admin- istration  of  the Commercial Taxes  Department  and  create separate  divisions  within  the zones  and  issued  through G.O.Ms. No. 1900 dated December 22, 1981 carving out  Adila- bad  and  Karimnagar as Adilabad division and  Warangal  and Khammam as Warangal division with the administrative control of  the  concerned Dy. Commissioner of Commercial  Taxes  at Adilabad  and Warangal. As a follow up action  options  have been called for from the employees and they have been allot- ted  in  G.O.Ms.  No. 1648 dated November 22,  1982  to  the respective divisions. It is not disputed that the  allotment and transfer were not made in terms of Para 4 of the  Order. As  stated earlier this action had given rise to  the  above Representation Petitions and the orders passed by the Tribu- nal and the results ensued thereunder. 572     8. Dr. L.M. Singhvi, the learned Senior Counsel for  the appellants, contends that paragraph 3(7) of the Order empow- ers the State Government to create a zone within the  Waran- gal  zone  for  the purpose of  recruitment,  seniority  and promotion.  The State Government has inherent power in  that regard.  There is no express prohibition in that  regard  in the  order. The phrase ’or constituted otherwise’  engrafted in the definition of local cadre in paragraph 2(e) read with paragraph 3(7) gives ample power to the State Government  to organise any local cadre within the zone for the  Commercial Taxes  Department. The action thus, taken by the State  Gov- ernment  is  clearly within its power.  The  contra  finding recorded by the Tribunal is illegal. He placed strong  reli- ance on a decision of a single member Tribunal made in  R.P. No.  101 of 1982 and batch dated April 1, 1982.  He  further

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contended that in maintaining harmony in Centre-State  rela- tionship,  the State Government shall continue to  have  its inherent  power  to  organise its local cadre  to  meet  the exigencies  of its administrative needs. The prior  approval or  concurrence of the Central Government is  redundant.  We find no force in these contentions. It is already seen  that in  exercise of the power under paragraph 3(1) of the  Order the State Government shall, within a period of twelve months from  the  date of the commencement of the  Order,  organise class  or  classes of posts in the civil  services  of,  and class  or classes of civil posts, under the State into  dif- ferent local cadres for different parts of the State in  the manner  therein  provided. It is already seen  that  through G.O.Ms. No. 581, the State Government in fact had  organised the  Commercial Taxes Departments by constituting  different local cadres and Warangal zone comprised of the four revenue districts, namely, Adilabad, Karimnagar, Khammam and  Waran- gal  was  declared  as local area for local  cadres  of  the Department. Having done so, the question emerged whether the State  Government has further power to reorganise the  local cadre  within the zone. In our considered view, we  have  no hesitation to hold that once the State Government has  orga- nised the class or classes of posts in the civil services of and  class  or classes of civil posts, under  the  State  as local  cadres, it ceases to have any power to  bifurcate  or reorganise a zone within a zone, cadre or cadres therein. In exercise of the power under proviso to paragraph 3(1), it is for  the President notwithstanding the expiry of the  period of  twelve months prescribed in sub-paragraph (1)  of  para- graph  3, by an order require the State Government  whenever he  considers it expedient so to do to have the power  under paragraph  3(1)  exercised. Thereby, it is  clear  that  the State  Government  shall have to  place  necessary  material before  the President; the President shall consider that  it is expedient to organise any class or classes of 573 posts in the civil services of and class or classes of civil posts, under the State into a further local cadre within the local  cadre in the zone already prescribed and to  pass  an order  in that regard requiring the State Government  to  so organise it. It is made clear that for the purpose of  effi- cient  administration or convenience, the  State  Government may create division/divisions within the local area or local cadre. But for the purpose of recruitment, seniority, promo- tion,  discharge, etc. the local cadre once organised  under para 3(1) shall be final and continue to be operative  until action  is taken under proviso to subparagraph (1) of  para- graph  3 of the Order. When we enquired the learned  counsel for the State, Shri Madhava Reddy candidly conceded that  no order  of the President, as provided under the proviso,  was made. Therefore, the action taken by the State Government in issuing G.O.Ms. No. 1648 dated November 20, 1982 is  clearly illegal  and invalid contravening the proviso  to  sub-para- graph (1) of paragraph 3, undoubtedly it contravened para  4 of the Order.     9.  It is seen that the order was made pursuant  to  the power  given to the President under Art. 371-D, which  is  a special provision made under the Constitution (Thirty-second Amendment) Act, 1973 peculiar to the State of Andhra Pradesh due  to historical background. Therefore, the State  Govern- ment have no inherent power in creating a zone or organising local  cadre within the zones except-in accordance with  the provisions  made  in the Andhra  Pradesh  Public  Employment (Organisation  of  Local Cadres and  Regulation  for  Direct Recruitment)  Order. It is true that the clause ’or  consti-

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tuted  otherwise’ defined in paragraph 2(e) is of  wide  im- port, but is only relatable to the power given by the Presi- dent to the State Government to organise local cadre.  Para- graph  3(1)  is the source of that power, but  the  exercise thereof  is hedged with a limitation of twelve  months  from the  date of the commencement of the Order.  Therefore,  the power  to organise class or classes of posts of civil  serv- ices  of,  and class or classes of civil  posts,  under  the State into different local cadres should be exercised by the State  Government  in accordance with para 3(1)  before  the expiry  of  the  twelve months from  October  20,  1975.  If the  .exercise  of  the power is  not  circumscribed  within limitation,  certainly under General Clauses Act  the  power could  be  exercised from time to time in  organising  local cadres to meet the administrative exigencies. The  prescrip- tion of limitation is a fetter put on the exercise of  power by  the State Government. Obviously, realising this  reality and  the need to organise local cadres,  subsequent  thereto the  amendment was made and was published in G.O.Ms. No.  34 G.A. dated January 24, 1981 introducing proviso to Paragraph 3(1).  Thereunder,  notwithstanding the expiry of  the  said period, the President alone has been given power 574 to  organise local cadres in respect of class or classes  of posts  in  civil services of and class or classes  of  civil posts,  under the State. That too subject to the  conditions precedent  laid therein. Thus, it is the President  and  the President  alone  has been given power under proviso  by  an order to require the State Government to organise the  local cadres  in relation to any class or classes of posts in  the civil services of and class or classes of civil posts  under the  State into different local cadres. It could be  consid- ered  in yet another perspective. Para 2(e)  indicates  that President  himself may create a local cadre instead  of  re- quiring  the State Government to organise local  cadre.  For instance, Para 3(6) empowered the President to create  local cadre for the city of Hyderabad. Similarly, under proviso to para 3(1) the President may require the State Government  to create  a local cadre within a zone. So the phrase ’or  con- stituted otherwise’ cannot be understood dehorse the  scheme of the Presidential order. No doubt in common parlence,  the word  ’otherwise’  is  of ’wide’ amplitude.  This  Court  in Kochuni  v.  States of Madras & Kerala, AIR  1960  SC  1080, Subba  Rao,  J., as he then was, speaking  per  majority  in paragraph 50 while construing the word ’otherwise’ held that it must be confined to things analogous to right or contract such  as lost grant, immemorial user etc. The  Word  ’other- wise’  in the context only means whatever may be the  origin of  the receipt of maintenance. The ratio thereunder  cannot be  extended in the contextual circumstances  obtainable  on the  facts in this case. Similarly, in Lilavati Bai  v.  The State of Bombay, [1957] SCR 721 at 735, Sinha J., as he then was, speaking for the Constitution Bench interpreting Expla- nation (a) to s. 6 of Bombay Land Requisition Act, 1948,  as amended  in  1950 and repelling the application  of  ejusdem generis doctrine laid the law thus: "The legislature has been cautious and thorough-going enough to  bar all avenues of escape by using the words ’or  other- wise’. These words are not words of limitation but of exten- sion so as to cover all possible ways in which a vacancy may occur. Generally speaking a tenancy is terminated by acts of parties  or by operation of law or by eviction by the  land- lord or by assignment or transfer of the tenant’s  interest. But the legislature, when it used the words ’or  otherwise’, apparently intended to cover other cases which may not  come

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within  the meaning of the preceding clauses, for example  a case where the tenant’s occupation has ceased as a result of trespass by a third party. The legislature, in our  opinion, intended  to cover all possible cases of  vacancy  occurring due, to any reasons whatsoever." 575 Thus,  contextual interpretation to the word ’or  otherwise’ was given by this Court. Therefore, the phrase  ’constituted otherwise’  is to be understood in that context and  purpose which Art. 371-D and the Presidential Order seek to achieve. If  the  interpretation  given by the  appellants  is  given acceptance  it amounts to giving blanket power to the  State Government  to  create local cadres at its will  tending  to defeat the object of Art. 37 I-D and the Presidential Order. Accordingly, we have no hesitation to reject the interpreta- tion of wider connotation. The ratio in these decisions does not render any assistance to the appellants.     11.  Similarly, the power given to the State  Government in  subparagraph (7) of paragraph 3 of the Order is only  to organise  a  separate cadre in respect of  any  category  of posts in any department when more than one cadre in  respect of  such category exists in each department; so  that  State Government  may organise one cadre when more than one  cadre in respect of different categories of posts exist in a  zone under  para 3(1) of the Order. It is clear when we  see  the language  in  para 3(7) which says that:  "nothing  in  this order shall be deemed to prevent the State from organising". Take  for  instance while creating local  cadre  co-terminus with  the administrative control of the  Dy.   Commissioner, Commercial  Taxes, local cadre for Senior Assistants may  be created.  It is also made manifest by Instruction No. 7  and 9(e) of the instructions contained in G.O.Ms. No. 728 G.A.D. dated  November 1, 1975. But, as stated earlier, it is  only for  the purpose of administrative convenience, not for  the purpose of recruitment, seniority or promotion etc., as  the case  may be. Thus, we have no hesitation to hold  that  the creation of a division and maintaining separate seniority of Junior  Assistants  and Senior Assistants for  Adilabad  and Warangal Divisions are illegal, contrary to order issued  in G.O.Ms. No. 581 and the Andhra Pradesh Employment (Organisa- tion  of Local Cadre and Regulation of  Direct  Recruitment) Order,  1975. The single member of the Tribunal in R.P.  No. 101/82  dated April 1, 1982 did not consider the  effect  of the order in proper perspective and is illegal.     12.  Accordingly, the impugned order of the  Administra- tive  Tribunal is not vitiated by any manifest error of  law warranting interference. The appeal is accordingly dismissed, but without costs. P.S.    S                                             Appeal dismissed. 576