19 March 1993
Supreme Court
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Vs

Bench: AHMADI,A.M. (J)
Case number: /
Diary number: / 9708


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PETITIONER: STATE OF ORISSA AND ORS.  ETC.

       Vs.

RESPONDENT: SUKANTI MOHAPATRA AND ORS.  ETC.

DATE OF JUDGMENT19/03/1993

BENCH: AHMADI, A.M. (J) BENCH: AHMADI, A.M. (J) PUNCHHI, M.M.

CITATION:  1993 AIR 1650            1993 SCR  (2) 505  1993 SCC  (2) 486        JT 1993 (2)   579  1993 SCALE  (2)131

ACT: Service Law : Orissa Ministerial Service (Method and Recruitment to  Posts of  Lower  Division Assistants in the Offices  of  Heads  of Department) Rules, 1975: Rules 13 & 14-Appointment by Relaxation-Candidates appointed without following the relevant rules-Regularisation of  such irregular appointees-Effect of--Inter-Se seniority--Fixation of-Whether the irregular appointees subsequently regularised can  be placed above the regular appointees on the basis  of total length of service.

HEADNOTE: The  Orissa Ministerial Service (Method and  Recruitment  to Posts  of Lower Division Assistants in the Offices of  Heads of Department) Rules, 1975 (the Rules) came into force  with effect   from  1.1.1976.  Rule  3  thereof   provided   that recruitment  to the said posts should be made by means of  a competitive examination to he held once in every year.  Rule 8(b)  prescribed  the minimum educational  qualification  as Intermediate in Arts/Science/Commerce.  Rule 14 provided for relaxation  of  the provisions in respect of  any  class  or category  of persons in public interest.  Rule  13  provided for  the relative seniority of candidates with reference  to the position in the competitive examination.  A proviso came to  be added to Rule 13 that those appointed  by  relaxation under  Rule  14  would  rank  below  the  validly  recruited candidates. A  large  number  of persons came to  be  recruited  without resort  to  competitive examination.  Many of them  did  not possess the minimum qualification.  Their appointments  were made by resorting to relaxation under Rule 14.  Subsequently their services were regularised. The   orders  of  regularisation  and  fixing  of   relative seniority   were   challenged  before   the   Administrative Tribunal.   The  Tribunal observed that the power  to  relax cannot be resorted to regularise irregular appoint- 506 ments.  However, in view of the lapse of time, it felt  that quashing   of  regularisation  would  result  in   loss   of livelihood  to  the irregular recruits, and so  it  did  not

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strike down the regularisation order.  As regards seniority, the  Tribunal ordered that the regular appointees  would  be senior to the irregular appointees. Against the orders of the Tribunal the irregular  appointees as  also the State Government preferred appeals before  this Court. Disposing of the appeals, this Court, HELD : 1.1. Rule 14 of the Rules empowers the Government  to relax any rule or rules in public interest for any class  or category  of  persons for reasons to be stated  in  writing. However,   it  is  clear  from  the  two  orders  that   the regularisation  was  made for individuals specified  in  the orders who had made representations and not for any class or category  of persons.  It is true that the persons named  in the  orders were irregular appointees but the orders do  not say  that  all irregular appointees will  stand  regularised under the said orders. [512E-F] 1.2. The   first  order  of  January  3,  1985   says   that regularisation  is being permitted on compassionate  grounds which would depend on the fact-situation of each  appointee. The  subsequent order of.  February 14, 1985, does not  even pretend to state that the action is in public interest.   It is totally silent on this point.  The essential  requirement i.e. the condition precedent for the exercise of power under Rule 14, namely, public interest, is not shown to have  been satisfied.   Rule  14  permits relaxation  of  "any  of  the provisions   of  the  rules"  but  it  does  not  speak   of regularisation.  Ex-facie the two orders do not speak of any particular  rule or rules having been relaxed  but  provides for regularising the services of specified individuals whose appointments  were outside and inconsistent with the  Rules. The  reason  for  exercise  of power in  the  case  of  nine appointees  covered  under the order of January 3,  1985  is stated  to  be "compassionate grounds" but in  the  case  of those  covered under the second order or February 14,  1985, no  ground at all is given.  Such orders, therefore,  cannot have  the protection of Rule 14 nor can the appointments  be regularised  as  having been done under the Rules so  as  to dislodge the seniority of regularly appointed persons.                                   [512G-H; 513A-D] 507 13.  Admittedly  the employees whose services are sought  to be  regularised  were appointed dehors the Rules.   Rule  14 merely  permits relaxation of any of the provisions  of  the Rules  in public interest but not the total shelving of  the Rules.   The  orders  do not say which  rule  or  rules  the Government  considered  necessary and  expedient  In  public interest  to relax.  What has been done under  the  impugned orders is to regularise the illegal entry into service as If the  Rules were not in existence.  Besides, the reasons  for so  doing  are  not  set  out  nor  is  it  clear  how  such regularisation can sub-serve public interest. [515C] 1A.   Rule  14  has  to be  strictly  construed  and  proper foundation  must be laid for the exercise of  power  under that  rule.  The Rules have a limited role of play,  namely, to  regulate the method of recruitment, and Rule 14  enables the Government to relax any of the requirements of the Rules pertaining  to  recruitment The language of Rule 14  in  the context of the objective of the Rules does not permit  total suspension  of the Rules and recruitment dehors  the  Rules. [515D-E] 1.5  In the instant case, recruitments had taken place years back in total disregard of the Rules and now what is  sought to be done Is to regularise the illegal entry In exercise of power  under Rule 14, which does not confer. such a  blanket

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power-,  its  scope is limited to relaxing  any  rule,  eg., eligibility  criteria,  or  the  like,  but  it  cannot   be understood   to  empower  Government  to  throw  the   Rules overboard.  If the rule is so construed It may not stand the test of Article 14 of the Constitution.  The proviso to Rule 13 can come into play in the matter of fixtion of  seniority between   candidates  who  have  successfully  cleared   the examination  and  a candidate who  cleared  the  examination after availing of the benefit or relaxation. [515E-F] R.N.  Nanjundappa v. T. Thimmiah and Anr., 1972 SLR 94  (AIR 1972 SC 1767), relied on. 2.   The  relative seniority will be worked out as  directed by  the  Tribunal  but  It  will  not  have  the  effect  of disturbing the seniority of regular appointees who will rank senior  to the irregular appointees.  It Is  clarified  that any  benefit derived by the Irregular appointees  under  any Interim  orders  contrary  to  the  relief  moulded  by  the Tribunal shall be adjusted and brought in tone with the said relief. [516C-D] 508

JUDGMENT: CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1347 of 1993 etc. etc. From  the Judgment and Order dated. 23.9.1991 of the  Orissa Administrative  Tribunal,  Bhubaneshwar in O.A No.  1494  of 1990. A.K.  Panda, J.R. Das, P.N. Mishra, B.A. Mohanti, Ms.  Aruna Mathur and C.S.S. Rao for the appearing parties. The Judgment of the Court was delivered by AHMADI, J. Special leave granted in S.L.Ps Nos. 18926/91 and 389/92. In exercise of power conferred by the proviso to Article 309 of the Constitution of India, the Governor of Orissa enacted the  Orissa  ministerial Service (Method of  Recruitment  of Posts  of Lower Division Assistants in the offices of  Heads of Department) Rules, 1975, (for short.  ’the Rules’)  which were  brought into force with effect from January  1,  1976. Rule  3  thereof provides that the recruitment to  the  said posts shall be made by means of a competitive examination to be held once in every year The eligibility criteria is  laid down  in  Rule  8.  The  minimum  educational  qualification prescribed  under  rule 8(b) for the said post is  that  the candidate should have passed Intermediate in Arts/Science or Commerce  or an equivalent qualification.  Rule 13  provides that  the  relative  seniority of each  candidate  shall  be determined with reference to his position in the examination held  in a particular year.  Rule 14 deals  with  relaxation and is in the following terms :               "When the Government are of opinion that it is               necessary  or  expedient so to do  it  may  by               order, for reasons to be recorded in  writing,               relax any of the provisions of these rules  in               respect of any class or category of persons in               public interest." A  proviso came to be added to Rule 13 that those  appointed by  relaxation under Rule 14 shall in that year, rank  below validly recruited candidates under Rule 3 or the first  part of Rule 11 of the Rules. In  the  backdrop  of these provisions  the  question  which arises  for  consideration  is whether  the  appointment  of candidates made dehors these 509

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rules  could  be ’regularised’ in exercise of the  power  of relaxation  conferred on the Government by  the  aforequoted Rule  14  of the Rules, and if yes, whether  such  irregular appointees  whose services have been regularised under  Rule 14 could be placed above the regularly appointed  incumbents in  seniority on the basis of the length of service ?  On  a plain  reading of Rule 14 it is obvious that the  relaxation power, so called, can be exercised in respect of a class  or category of persons when the Government are of opinion  that it is necessary or expedient so to do in public interest and for  reasons to be recorded in writing.  The  rule  empowers the  Government  to ’relax any of the  provisions  of  these rules’   in  pubic  interest.   Now  if  we  turn   to   the Order in Civil Appeals Nos. 2708-09 and 1673-74 of  1991  we find that the orders dated January 3, 1985 are in  identical terms, the relevant part whereof reads as under :               "..........   after   careful    consideration               Government  have  been pleased  to  relax  the               appointment  of the following  nine  irregular               L.D.Assistants  of Directorate of  Mining  and               Geology  under  provisions of Rule 14  of  the               O.M.S.   (Method  of  Recruitment  of   Junior               Assistants   in   the  Office  of   Heads   of               Departments)  Rules,  1975  on   compassionate               grounds in public interest." The  names of the concerned irregular appointees  have  then been stated without prejudice to inter-se seniority.  In the other two appeals arising from Special Leave Petitions  Nos. 18926/91  and  389/92  the text of  the  order  is  somewhat different from the one extracted above.  In both these cases the  order, though differing from the above extracted  text, is  identical in language, the relevant part  whereof  reads thus :               "I  am  directed............  to  say  that  a               proposal  for regularisation of the  following               irregular   recruits   appointed   as   Junior               Assistant in the office of the Chief Engineer,               P.H.,  Orissa in violation of  the  provisions               contained   in  Orissa   Ministerial   Service               (Method  of Recruitment to the posts of  Lower               Division  Assistants  in the  Offices  of  the               Heads  of Department) Rules, 1975,  was  under               active consideration of Government.               *** *** *** **** ***               510               After  careful consideration,  Government  has               been  pleased  to  regularise  the   irregular               appointment of these 18 recruits under Rule 14               of  the Orissa Ministerial Service (Method  of               Recruitment  to  the Posts of  Lower  Division               Assistants  in  the  Office of  the  Heads  of               Department)   Rules,   1975.   The    inter-se               seniority  of these irregular recruits  vis-a-               vis  with  that  of regular  recruits  may  be               determined  in accordance with  the  provision               contained under Rule 13...... From   the  texts  of  the  aforesaid  orders   two   things immediately come to notice, namely, (i) the orders relate to named individual irregular recruits and (ii) they purport to regularise  the services of such recruits.  Next  the  first order  of  January 3, 1985 says that  the  relaxation  power conferred  by  Rule 14 is being  invoked  ’on  compassionate grounds in public interest" whereas the subsequent order  of February 14, 1985 does not assign any reason whatsoever  for the  exercise of the power.  Now under Rule 14 the power  to

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relax the provisions of the Rules can be exercised in public interest only for reasons to be recorded in writing.  In the first  order the only reason surfacing from the text of  the order  is  compassion whereas the second order  is  entirely silent  on  the  point.  Besides, under Rule  14  the  power extends to relaxation of any of the provisions of the  Rules but the orders do not expressly state which rule or rules is or  are  intended to be relaxed and the matter  is  left  to inference.  Indeed it is quite obvious from the text of  the orders  which  we have extracted hereinabove that  what  was intended  was not to relax any particular rule or rules  but to   regularise  the  appointments  of   certain   specified individuals  whose appointments were not in accordance  with the  Rules.  The Orissa Administrative Tribunal in  Original Applications  Nos. 208 and 209 of 1987 which has given  rise to civil Appeals Nos./2708-09 and 1673-74 of 1991 observes :               "The  group of nine Assistants had nothing  in               common  between  them except  that  they  were               appointed   sometime  or  other.  in   various               different  types of posts ....  By  themselves               they  do not form a class or  category  except               for the fact that they are irregular recruits.               We  have  not  been  able  to  understand  how               compassionate  ground and public  interest  go               together.   There is no doubt that  these  are               cases   which   have   been   regularised   on               compassionate ground but we have not been able               to see any public interest in the               511               said  regularisation.   In  fact,  Annexure  X               amounts  to  a  regularisation  of   irregular               recruits.  but there is no such  provision  of               regularisation  of irregular recruits  in  the               said  rules or any other rule pointed  out  to               us." The Tribunal then proceeds to point out that a large  number of them do not have the minimum prescribed qualification  of Intermediate Arts, Science or Commerce.               "Once  we accept that Rule 14 gives  power  to               Government to regularise irregular recruits by               executive  order then the entire  rule  framed               for recruitment by a prescribed procedure  can               be set at naught." The  Tribunal thus saw a difference  between  regularisation and  relaxation and came to the conclusion that Rule 14  did not  permit regularisation of irregular recruits.   It  also felt  that  sympathy and compassion cannot  outweigh  public policy and concern for public interest.  In this view of the matter   it  felt  that  the  gradation  list  showing   the regularised  recruits senior to regularly appointed  persons was  not  legally sustainable.  It, however,  dismissed  the Applications  as time barred, a view which it  reviewed  and reversed  subsequently  in M.P. Nos.187-188 of  1990,  which order too is assailed before us. In  the subsequent two appeals arising out of  S.L.Ps.  Nos. 18926/91 and 389/92, the Tribunal held :               "It  seems  Government  used  the   expression               ’regularisation’  ....... as  synonymous  with               ’relaxation’.  In our opinion this is entirely               wrong.    In   the  guise   of   ’relaxation’,               Government  has no power to  ’regularise’  the               illegal appointments." But realising that on the quashing of regularisation all the irregular  recruits would lose their livelihood,  the  Court further observed :

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             "On equitable ground we feel that it shall not               be   proper   for  the  end  of   justice   to               countenance  such  a situation  where  persons               serving  for  12 years  under  the  Government               would lose their jobs." After  pointing  out that most of such recruits  would  have crossed the upper 512 age limit for entry into Government service and many of them may  have  moved  vertically  by  securing  promotions,  the Tribunal moulded the relief as under :               "At this juncture on equitable ground while we               do     not     propose    to     quash     the               regularisation...... we shall not at the  same               time  allow  the illegality and  injustice  to               perpetuate  further  by  denying  the   relief               sought for in this application." The Tribunal declared the petitioner (regular recruit) to be senior  to the irregular recruits without striking down  the regularisation order. The  appeals  have been preferred by those  whose  entry  in service was irregular being dehors the Rules on the  grounds that  the Tribunal was wrong in the view it  took  regarding the  Government’s  power under Rule 14 and the  exercise  of that  power.  The State of Orissa has also  approached  this Court to have its orders of January 3, 1985 and February 14, 1985 upheld.  As all these appeals raise common questions of law,  we  have deemed it appropriate to dispose them  of  by this common judgment. From what we have discussed so far it does appear that after the  Rules were brought into force with effect from  January 1, 1976, the recruitment was made in total disregard of  the Rules  in  1976  and therefore even of  those  who  did  not possess the minimum educational qualification prescribed for the job under the Rules.  Such recruits have been  described as  ’irregular’.  Rule 14 empowers the Government  to  relax any  rule  or  rules in public interest  for  any  class  or category  of  persons for reasons to be stated  in  writing. However,  it  is  clear  from  the  two  orders   reproduced hereinabove that the regularisation was made for individuals specified in the orders who had made representations and not for  any class or category of persons.  True it is that  the persons  named in the orders were irregular  appointees  but the  orders  do not say that all irregular  appointees  will stand  regularised under the said orders.  Then,  the  first order  of January 3, 1985 says that regularisation is  being permitted on compassionate grounds which would depend on the fact-situation  of  each appointee.  Even if it  is  assumed that  these  irregular  recruits  constituted  a  class   or category  of  persons, Rule 14 could be  invoked  in  public interest  only.   If  compassionate  ground-is  the   public interest  for regularisation it is difficult  to  understand how  such  a factual aspect can form the  basis  for  public interest.  Assuming that their 513 having  served  for  long  years  is  a  valid  reason   for regularisation,  that, without anything more, will not  meet the  requirement  of the action being  in  public  interest. Rule  14 requires that the reasons in support of the  action being  in public interest must be stated in writing  but  no reason  other  than ’compassionate grounds’ appears  in  the first order.  And what are those compassionate grounds?  The order does not provide the answer.  The subsequent order  of February  14, 1985, does not even pretend to state that  the action is in public interest.  It is totally silent on  this

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point.   It  would,  therefore,  seem  that  the   essential requirement i.e. the condition precedent for the exercise of power  under Rule 14, namely, public interest, is not  shown to have been satisfied.  Next Rule 14 permits relaxation  of "any  of the provisions of the rules" but does not speak  of regularisation.  Ex-facie the two orders do not speak of any particular  rule or rules having been relaxed  but  provides for regularising the services of specified individuals whose appointments  were outside and inconsistent with the  Rules. The  reason  for  exercise  of power in  the  case  of  nine appointees  covered  under the order of January 3,  1985  is stated  to  be "compassionate grounds" and in  the  case  of those  covered under the second order of February 14,  1985, no  ground at all.  Such orders, therefore, cannot have  the protection   of  Rule  14  nor  can  the   appointments   be regularised  as  having been made under the Rules so  as  to dislodge the seniority of regularly appointed persons. The  Rules  were made under the proviso to Article  309  for regulating  the method of recruitment to the posts of  Lower Division   Assistants  in  the  offices  of  the  Heads   of Departments.  The method of recruitment set out in Rule 3 is through  a competitive examination to be held once in  every year.  According to Rule 4 this competitive examination  has to  be conducted by a Board of Examiners after the  Chairman of  the Board has invited applications from those  desirious of    appearing   at   the   examination   through    public advertisement.  Rule 8 lays down the eligibility criteria as regards  age, educational qualification, knowledge of  Oriya language,  etc.   Rule  9  sets  out  the  syllabus  of  the examination and Rule 10 provides for allotment of successful candidates  to different departments.  Rule 11  is  somewhat important  since it lays down the procedure for filling  up vacancies after the list of candidates is exhausted.   Where the  vacancy  has arisen after the list  is  exhausted  such vacancy  may  be  filled by a successful  candidate  of  the previous year and failing that by any qualified candidate on a  temporary  basis  till  the result  of  the  next  year’s examination  is  declared.  Rule 12 provides the  period  of probation while Rule 13 lays down 514 the  rule  for  fixation of seniority.   It  says  that  the relative  seniority  of each candidate shall  be  determined with   reference   to  his  position  in   the   competitive examination  in  any particular  year.   Where,  however,--a candidate of the previous year is selected under Rule 11 for appointment in the subsequent year he shall rank just  below the   successful  candidates  of  the  year  in  which   the appointment  was made.  To this a proviso has been added  as under :               "Provided  that  those  appointed  as   junior               assistants,  in relaxation of provision  under               Rule  14,  shall in that year rank  below  all               candidates  who. have been  validly  recruited               under  Rule 3 and under first part of Rule  11               of the said rules." Rule 14 we have already extracted earlier.  Rule 15 provides for   reservations  and  concessions  to  SC/ST  and   other candidates.  Rule 16 stipulates that these rules shall  have over-riding  effect  notwithstanding  anything  inconsistent therewith contained in any other recruitment rules,  orders, etc.  It becomes clear from these rules that after they came into force they alone held the field.  Secondly, the  method of  recruitment  is  only one,  namely,  direct  recruitment through  a competitive examination to be conducted  by  the Board  of Examiners.  The only exception that we find is  in

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Rule 11 which permits a temporary appointment till the  next year’s  examination result is declared.  Despite  the  Rules having  come  into force with effect from January  1,  1976, appointment  were made in disregard of the Rules  from  1976 and  onwards.   It is this batch  of  irregularly  appointed employees whose services were sought to be regularised under rule  14 by the orders of January 3, 1985 and  February  14, 1985.   Counsel for the regular recruits contend  that  what the  Government has done in exercise of power under Rule  14 is to set at naught the entire body of the Rules as if  they never  existed.  The power of relaxation,  contend  counsel, cannot  be  so  used as to render  the  Rules  non-est.   In support of this contention strong reliance was placed on the following observations in the case of R.N.Nanjundappa v.  T. Thimmiah and Anr., 1972 SLR 94 (AIR 1972 SC 1767) :               "If the appointment itself is in infraction of               the  rules  or if it is in  violation  of  the               provisions  of  the  Constitution,  illegality               cannot   be  regularised.    Ratification   or               regularisation is possible of an act which  is               within the power and               515               province  of the authority but there has  been               some  noncompliance with procedure  or  manner               which   does  not  go  to  the  root  of   the               appointment.  Regularisation cannot be said to               be a mode of recruitment.  To accede to such a               proposition  would be to introduce a new  head               of appointment in defiance of rules or it  may               have  the  effect  of setting  at  naught  the               rules." In  the present case also the appointments of the  employees whose services are sought to be regularised were dehors  the Rules.   Rule  14 merely permits relaxation of  any  of  the provisions of the Rules in public interest but not the total shelving of the Rules.  The orders do not say which rule  or rules  the Government considered necessary and expedient  in public  interest  to relax.  What has been  done  under  the impugned  orders  is to regularise the  illegal  entry  into service as if the Rules were not in existence.  Besides  the reasons  for  so doing are not set out nor is it  clear  how such regularisation can sub-serve public interest.  Rule  14 has to be strictly constructed and proper foundation must be laid  for the exercise of power under that rule.  The  Rules have a limited role to play, namely, to regulate the  method of recruitment, and Rule 14 enables the Government to  relax any   of  the  requirements  of  the  Rules  pertaining   to recruitment.  The language of Rule 14 in the context of  the objective  of the Rules does not permit total suspension  of the Rules and recruitment dehors the Rules.  In the  present case  the recruitments had taken place years back  in  total disregard of the Rules and now what is sought to be done  is to  regularise the illegal entry in exercise of power  under Rule  14.   Rule 14, we are afraid, does not confer  such  a blanket  power; its scope is limited to relaxing  any  rule, e.g.,  eligibility criteria, or the like, but it  cannot  be understood   to  empower  Government  to  throw  the   Rules overboard.   If the rule is so constructed it may not  stand the test of Article 14 of the Constitution.  The proviso  to Rule  13  can come into play in the matter  of  fixation  of seniority  between candidates who have successfully  cleared the examination and a ’candidate who cleared the examination after  availing  of  the benefit  of  relaxation.   We  are, therefore,  of  the opinion that the Tribunal  committed  no error in understanding the purport of Rule 14.

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The  Tribunal’s  order in review is assailed on  the  ground that it had no justification to reverse its earlier order by which  it had held that the challenge was time-barred.   The Tribunal exercised the review jurisdiction 516 as  it had failed to notice the correct--provision and  had, therefore,  applied  the wrong provision  in  declaring  the proceeding  time-barred.   The Tribunal rightly  points  out that  since  the  cause of action had arisen  prior  to  the establishment   of  the  Tribunal,  the  proceedings   stood governed  by section 21(2) (a) and not section 21(1) (a)  of the Administrative Tribunals Act, 1985, which it had wrongly invoked.  We, therefore, see no merit in this challenge. Now  even  though the Tribunal came to the  conclusion  that Rule  14  did  not  permit  regularisation  made  under  the impugned  orders of January 3, 1985 and February  14,  1985, it,  having  regard  to  the long  service  put  in  by  the employees named in the said two orders and on  compassionate considerations   has  supported  the  regularisation   under Article 162 of the Constitution.  It has moulded the  relief on such consideration.  Since that part of the order has not been assailed and since the appellants cannot be worse of by appealing, we cannot interfere with that part of the  order. It  will,  therefore,  be  worked out  as  directed  by  the Tribunal but we may clarify that it will not have the effect of  disturbing the seniority of regular appointees who  will rank  senior  to  the irregular  appointees.   We  may  also clarify that any benefit derived by the irregular appointees under  any interim orders contrary to the relief moulded  by the Tribunal shall be adjusted and brought in tune with  the said  relief  The  benefit of this  relief,  to  the  extent relevant,  will  be given to  irregular  appointees  covered under  both  the  impugned orders of  January  3,  1985  and February 14, 1985. With  the above clarification, we dismiss an  these  appeals with no orders as to costs. G.N.                            Appeals disposed of. 517