N. SUBBA RAO ETC. versus UNION OF INDIA & OTHERS

N. SUBBA RAO ETC.

UNION OF INDIA & OTIIERS

August 23, 19n

[S. M. SIKRI, C.J., A. N. RAY, I. D. DUA, D. D. PALEKAll AND M. H. BEG, JJ.]

Tiu Stat~s J~eorganisation Act, 1955, s. I 15-Powers of Ct'ntral Gov-l'rn1nent under-Effect of.. proviso to- s. 115 (7)-Qll'!.\fion whether State Government l•IJS changed conditions of S'-TYice within rhe n1eani111? of the proviso is question to be decided by Central Governrnenl·-Natural justice-Central Govt. order pated 22/24' Dec. 1965 wliethcr invalid becau:te of deni.'1 of natural fusrice. The State of Andhra Pradesh which came into existence U.'lder the States Reorganisation Act 1956 was formed out of the former State of Andhra and the Telcogana area of the former State of Hyderabad, The appellants were en&inceI1! in the employment of Andhra State. On the formation of the State of Andbra Prad"sh the appeHa11ts under the pro-visions of the Act continued to •erve the State of Andhra Pradesh. The respondents who were Telengana Officers in the employment of the State of Hyderabad continued to. •erve the State of Andhra Prade•h. Prior to the reorganisation Conference of Chief Secretaries was held in the months of April and M:1y 1956, and certain principles were laid Jo.,.•n for the equation of posb in the two services namely, the servitc~ of Andhra State and Hyderabad State which were -to be allocated to the State of Andhra Pradc:;h. ~nJ~ far;tors to be taken into consideratio;, for the fixation of inter :.·e seniority of officers holding equivalent posts \Vere laid down. In -determining the length of continuous sen-ice per!od! f1>; \Vhich an appoiui.n-It-;nt was held in. pureiy stop-gap or fortuitOUt;. , a1'·nngcmcnt were to be excluded. Ia. November 1961 the State Govern-1111.;:tt of } .. odhra Pradesh, prep:::1\e<l provi,:onal common gradatio::i list of gazett·ed officers in the Public Works Department. The Telengana cngi-nr~rs challenged- the lists in the High Court and this Court. The rcst:lt of the litigation was that the Central Goven1ment was asked to . ta};.e immediate steps to finalise the list of integration in the manner prescribed in s. 115 of the States Reorganisation Act 1956 on the materials placed before it by the State Government. The Central' Government after con-.sic.lcrh·,g representations made by the -officer, of the Telengana area and the Andhra State gave on December 24, I 96.:> its final decision concer.,ing the equation of pasts· and i.,,:er 1e seniority of officers holding equivalent µost•. In its decision the Central Government Inter alia pointed out .. t the action taken by the Government of Andhra Prndesh in regularising with retrospective effect and in relaxation of lhe normal rules, the tem· porary appointments made in the erstwhile Andhra SL,,te to the posts of .A<;sistant Engineers a-d Executive E.,ginecr!: by pron1otion from the . next lower categary . of officers, had tile effect of altering the service con-ditions of Andhra employees to the dcteriment of the interest of the c1nployees from the Telenga11a unit and was therefore invalid. The Andhra Pfndcsh Government 01·ad~ a· stro.,g represerftation to the Central Gov-ernment cJefcndin'l such regularisation. The Central Government by order doted 22/24 Dc:cmbcr. 1966, in partial modificaf.ion of the order dated December 24, 1965. accepted the· retrospectiVc regulari~ation of serv;ce in respect of certain classes of offtccrs. In the consequent writ petition n!c<l l>y the Telengana and Andbra Officers ·the Hi~b Court inter alia held: (i) that the decision of the Government of.India dated 22/24 1966 ll-L172 Sup C!i7Jwas liable to be quashed on the ground that it violated the principles of natural justice and (ii) that the temporary promotion of Executive Engineers and Assistant Engineers in the Andhra State prior to November I, 1956 were stop.gap and fortuitous arrangements, The High Court did not give any decision on the merits of the question of retrospecti\" regularisation of tlce servic-zs of the Andhra Engineers on the equation of posts. In nppeals to this Court by ·certificate,

HELD : The High Court ·correctly h£ld that the order of the Central Government dated 22/24 December 1966 was made without giving the Telengana area Officers any opportunity of making representation against the course of action which the Central Government adopted by that deci· sion. The order was liable to be quash£d. [954H-955Al

It was not necessary to express any opinion as to whether the services of Andhra State Officers were stop·gap or fortuitous arrangements. Under the States Reorganisation Act power is conferred on the Central Govern-ment to bring about the integration of services in the State of Andhra Pradesh by ensuring fair and equitable treatment to all persons affected by the provisions of s. 115 of the Act. The observations of the High Court on the temporary service of the Andhra Officers to be stop-gap or fortuitous arrangements must therefore be set aside. [955H]

In Raghavendra Rao's case this Court soid that the broad pul'pose underlying the proviso to s. 115 (7) of the Act was. to ensure that the conditions of service should not be changed except with the prior ap· vroval of the Central Government under Art. 309 of the Constitution the power of the State is preserved to make rules. The proviso to s. 115(7) of the Act imposes l;mitation on the Stato not to vary the contitions of service applicable immediately before November I. 1956 to the dis-advantage of persons mentioned in sub-sections (I) or (2) of s. 115 of the .Act. If there is any question of change of cond'tions of service it will liave to be found out whether in the first place it amounts to change in the conditions of service and, if so. secondly to find out whether there was prior approval of the Central Government. It will be within the province of the decision of the Central Government under s. 115 of the Act in regard to the integration of services and ensuring fair and equit-able treatment to all persons to determine the retrospective regularisa· tion and relaxation of rules will amouot to any change in the conditions of service or will result in denial of fair and equitable treatment to any of the persons affected thereby. [957C-958B]

[Central Government directed to prooeed with the integration of ser-vices of Telenga.,a area Officers and Andhra State Officer<& and to deter-mine the principles governing the equation of posts and to preparo grada-tion lists after giving opportunity to the persons affected to make their representations.]

Union of India & Anr. v. P. K. Roy & Ors. [1968] 2 S.C.R. 186 and N. Raghavendra Rao v. Deputy Conimission.r, South Ka~ara, Mangalore jl964] 7 S.C.R. 549, referred to.

CIVIL APPELLATE JURISDICTION : Civil Appeals Nos. 2436 to 2439 of 1969. •

Appeals from the jude:rnent and orders dated February 23. 1'1)68 of the Andhra Pradesh Hie:h Court at Hyderabad in Writ Petitions Nos. 1363 of 1966, 799, 833 and 1439 of 1967 res-_pectively.

D. V. Patel, Y. Suryanarayallll, M. J. Rao, P. L. N. Sharma and G. Narayana Rao for the appellants (in all appeals).

Jagadislz Sw:m1p, Solicitor-General of India, S. N. Prasad and S. P. Nayar, for respondent No. 1 (in C.As. Nos. 2436 & 2439/ 69) Respondent No. 113 (in C.A. No. 2437 /69) and Respondent No. 10 (in C.A. No. 2438169).

P. Ram Reddy and K. Jayaram, for respondent No. 2, (in C.A. No. 24~6 & 2439169) Respondent No. 14 (in C.A. No. 2437169) and Respondent No. 9 (in C.A. No. 2438169).

H. S. Gururaja Rao and S. Markhandeya, for respondents Nos. 3-38 : (in C.A. No. 2436169), for respondents Nos. 1-12 (in C.A. No. 2437169) and respondents Nos. 1-8 (in C.A. No. 2438/69) !

, The Judgment of the Court was delivered by

Ray, J. These four appeals are by certificate from the common judgment da•ted 23 February, 1968 of the Andhra Pra-desh High Court.

The subject-matter of these appeals relates to the equation

of posts and integration of services of officers of the Public Works Departrnem in the State o.f Andhra Pradesh consequent on the reorganisation of States in the year 1956.

On 1 November, 1956 the State of Andhra Pradesh came into existence under the States Reorganisation Act, 1956 (herein-after referred to as the Act). The State of Andhra Pradesh was formed out of the former State of Andhra and the Telengana area of the former Hyderabad State (hereinafter referred to as the Andhra State and the Telengana area).

The appellants were Engineers in the employment of Andhra State. O.n the formation of the. State of Andhra Pradesh the appellants under the provisions of the Act continued to serve the State of Andhra Pradesh. The respondents who were Telengana officers in the employme.ut of the State of Hyderabad continued to serve the State of Andhra. Pradesh.

Prior to the reorganisation Conference of Chief Secretaries was held.in the mo,nths of April and May, 1956. It was agreed at the Conference' that four principles should be followed for equation of posts in the two services, namely, the services of Andhra State and Hyderabad which were to be allocated to the State of Andhra Pradesh. These four principles were: first, the nature and duties of past; second, the responsibilities and power<

exercised by the officers holding post; the extent of territorial or other charge held or responsibilities discharged; · third, the minimum qualifications, if any, prescribed for the two posts and fourthly, the salary of the post.

In regard to the fixation of the inter-se seniority of officers holding equivalent posts it was agreed that three factors 'should be taken into consideration. The first was the Jergth of con-tinuous service whether temporary or permanent in particular grade. This length c.ould exclude periods for which an appoint-ment is held in purely stop-gap or fortuitous arrangement. The second consideration was the age of the person, other fac-tors being equal, for instance, seniority might be determined on the basis of age. Thirdly, as far as possible, the inter-st: seniority of officers drawn from the same State should not be disturbed.

The Central Govermrent in th~ month of September, 1956 directed the State Government to draw up provisional common gradation list keeping in view the general principles agreed to at the Conference of the Chief Secretaries.

It may be stated that out of the former State o.f Hyderabad some areas were transferred to Mysore and some to Dotnbay which became Maharashtra and the Telengana area became part Di the State of Andhra Pradesh.

Under the Slate; Reorganis·i. ·Jn Act the questions relating lo equa1ion of posts and integration of services of the employees of Andhra and Hyderabad States are to be decided finally by the Central Government. Section 115 of the Act in sub-section ( 5) provides that the Cen•ral Governmer.•t may by order establish one or more Advisory Cornmitlecs for the purpose of assistir.g it in regard to (a) the division and integration of services arnon~ the new Sta1es and the State of Andhra Pradesh and Madras, and (b) the ensuring of fair awl equitable tre1tment to all persons affected by tlie provisions of this section and the proper consideration of any represcn· ations made by sueh persons.

The Government of Andhra Pradesh constituted Advisory Committees for i2tegration 'of services of Andhra and Hyderabad States and preparation of common gradation lists for all service personnel in Andhra Pradesh. There were 1wo Advisory Com-mittees. One was with respect to the gazetted staff and the other with respect to non-gazetted staff. The con• clusions of the Advisory Committees were reviewed by the State Government and the opinion of the Cen1ral Government was >ought and adopted by the State Government on decisiom to be taken.

Thereafter in the month of April, 1957 the Government of India infonnef! the State Government of its decision to establish two Advisory Committees one at the Centre and the other in the State for assisting the Central Government in dealing with all representations from service personnel affected by the reorgani-~ation.

Following the recommendation of the Advisory Committee on the integration of gazetted services of Public Works Depart-ment and the suggestions made b!Y the Government of India the State Governme;nt in the month of December, 1960 laid down certain principles for integration of services and preparation of common gradation list of Andhra and Hyderabad personnel belonging to gazetted Engineering Service of the Public Works Department, The State Governmt111t prepared provisional common gradation list of gazetted officers in the month .of November, 1961. The Telengana Engineers challenged the commQn gradation list by writ petitions in the Andhra Pradesh High Court. The Telengana Engineers d1allenged the equation of posts of the_ Sub-Engineers and Divisional Engineers to the posts of Assistant E!lgineers and Executive Engineers respectively in Andhra and the fixation of their inter se seniority. The grievance of the Telengana Engineers was that the Government of Andhra Pra-desh had given preference to personnel of Andhra State by retrospectively relaxing rules in respect of probation as well as qualification in favour of Andhra · Engineers. According to the Telengana Engineers the result of the relaxation of rules was that Andhra Engineers who could not be c011sidered senior to 'Felengana Engineers on the appointed day, namely, 1 Novem-ber 1956 were given seniority. The High Court in the month of July, 1964 dismissed the writ petitions on the ground that Telcngana Engineers had an alternative remedy by way of repre-sentation to the Central Government under section 115 ( 5) of the Act.

The Telengana Engineers thereafter filed petitions for special leave to appeal to this Court against the judgmen1 of the Andhra Pradesh Court. The Telerigana Engineers also filed petitions in this Court under Article 32 of the Constitution. On 22 Janu-ary, 1965 this Court dismissed the Writ Petitions and gave leave to the Telengana Engineers to withdraw the petitions for special . leave. This Court in passing the orders said, "We hope and trust that the Central Government will take immediate steps to finalise the list of integration in the manner prescribed in sec-H tion 115 of the States Reorganisation Act, 1956 and the State Government will take expeditious steps to place all the necessary materials before it."

The Central Government thereafter on 24 December, 196$ after considering the representations made by the personnel of both the Telengana area and the Andhra State gave its final decision concerning the equation of posts and inter se seniority of officers holding equivalent pos·ts. Broadly stated, the Central Government equalised the posts of Andhra State and Telengana area under four categories. In the first category were placed Chief Engineers of Andhra and Teleogana. In the second cate-gory were placed Superintending Engineers of both the places. The third category went to Executive Engineers of Andhra and Execu,ive Engineer as well as Divisional Engineer of Telengaria area. The Divisional Engineers of Telengana area were to be placed en bloc at the end of third category. In the fourth cate-. gory were placed the Assistant Engineers of Andhra and Teien-gana and thereafter sub-Engineer and Sub-Divisional Officer of Telengana. As to Sub-Engineers of Tclengana area the deci-sion was tuat they were to be placed en bloc below the Assistant Engineers from both the regions of Andhra and Telengana. Again, the Sub-Divisional Officers were to be placed en bloc at - the bottom of the category.

Apart from·· equalisation of posts the Central Government laid down four principles with regard to inter se seniority, First, it was said that the pr;i-probation service rendered by the Andhra Officers which dirl not count for increments in the parent State should not be ta'.cen into account for determining their Imer-E State seniority in the integrated gradation list of the Engineer Officers of the Public Works Department of the Reorganised State. The second principle was that as for the Executive E)l-gineers from Hyderabad, the service rendered as Divisional En-gineers should not be counted towards their seniority in the cadre of Executive Engineers. The third principle is the bone of con-F tention between the Andhra Officers and the Telengana Officers. The Government of India decided that the action taken by the Government of Andhra Pradesh in regularising wHh retrospec-tive effect and in relaxation c~ the normal rules, the tempofary appointments made in the erstwhile Andhra State to the posts of Assistant Engineers and Executive Engineers by promotion from the next lower category of officers has the effect of alter-ing the service conditions of Andhra employees to the detriment of the interest of the employees from the Telengana unit Taking 1his and other connected factors into account the Government of India . decided that action taken by the Andhra Pradesh Gov-ernment in this regard is not in order and the representations submitted against these orders should be accepted. The fourth principle was that Class I status of the Hyderabad Assistant En-gineers might be protected as personal to them.

Thereafter the Andhra Pradesh Government on 17 March, L 966 made strono representation to t:1e Central Government defending as essentlal the retrospective regularisatjon of the services of the personnel belonging to the former State of Andhra. The State of Andhra Pradesh said that it was valid and proper to take into consideration the continuous service of the Andhra employees from date anterior to 1 Novemb~r. 1956.

The Government of. India on 14 June, 1966 reiterated its earlier decision dated 24 December, 1965 and was of the view that it was not possible to alter the decision already taken against the action of regularisation with retrospective effect.

The Andhra employees thereupon filed writ petition No. 1363

of 1966 being Civil Appeal No. 2436 of 1969 questioning th~ decision of the Government of India dated 14 June, 1966.

Subsequent to the fillng of the writ petition by the Andhra

employees the Government of India on 22/24 December, 1966 gave decision to the effect that the continuous service of some of the Andhra officers prior to 1 November, 1956 should be taken into account in determining the inter se seniority of the officers. This decision was in favour of some of the Andbra officers and was in partial modification Of the decisiQII of the Government of India dated 24 December, 1965 and reiterated on 14 June, 1966.

The qecision of the Government of India dated 221..i4 December, 1966 was that the Central Government classified Assistant Engineers of Andhra State whose services were regu-larised with retrospective effect into three cate$ories. The first category was in respect of those Assistant Engineers of Andhra State who had satisfactorily completed their probation in the lower post and had also put in the required number of years of service in the lower cadre on the date on which they were pro-moted as Assistant Engineers and whose cases could not be r~­ferred to the Public Service Commission in time because of admi-nistrative delay. In. the second category fell those who had satisfactorily completed their probation in the lower post btut had noi .completed the requisite number of years of service in the lower cadre on the date on which they were promoted as Assistant Engineers but completed the minimum required se·vice for promotion on some dates before 1 November, 1956. In the third category were placed those who had either not satis-factorily completed their probation in the lower cadre and/or had not completed the required number of years of service in the lower cadre on the date on which they were promoted as Assistant Engineers and also had not completed the minimum required service for promotion on anv date before 1 November. 1956.

. The decision of the Government of India dated 22/24 De~~ber, 1966 was that the Central Government had no ob1ection to retrospective regularisation of the services of the officers falling under the first category. With regard to the · second category the Central Gcvernment had no objection to the regularisation of the services of tbe officers falling under that category provid~d that their services were regularised not from the dates on which they \\-ere promoted as Assistant Engineers but from the dates on which they were eligible for promotion under the normal rules. In o;her words, the services· of officers in the second category might be regularised with effect from the dates prior to 1 November, 1956 on which they completed the minimum n_umber oi years of service in the lower cadre neces-sary for promotion as Assistant Engineer!!, As regards the offi-c cers falling under the third category the Central Government decide j ¢hat their services might not be regularised from dates priqr to 1 November, 1956. The Central Government however said that the officers in the third category should be included along with their confreres from the Telengana area of Hyder-abad in accordance with the prescribed principles and procedure. Thereafter those in the third category should take their tum i11 · !) accordance with their seniority in the final list for promotion to the post of Assistant Engineers.

The Telengana area officers filed thre~ writ petitions in the Andllfa Pradesh High Court. These were numbered 799, 833 and 896 of 1967. In writ petition No. 799 of 1967 the Telen-gana area officers asked for mandamus directing the respondents to treat the post of Sub-Engineer of Telengana area as equivalent to the post of A>sistant Engineer of· Andhra St~te and integrate the services ot Sul:>-Engineers of Telengana area and Assistant Engineers of Andhra State according to 1he agreed principle11 at the Chief Secretaries in the months of April and May, 1956. The Telengana area officers also asked for an order quashing the decision of the Government of India dated 22/24 Decem· ber, 1966 approving the retrospective regularisation and relaxa-tion of rules in regard to temporary appointments by the Andhra State to the post of Assistant Engineers.

In writ petition No. 833 of 1967 the Telengana area officeri asked lor mandamus directing the respondents to treat the posbi of Executive Engineers ol Telengana area as equivalent . to the posts of Executive Engineers (Special Grade) of Andhra State and to trea1 the post of Divisional Engineers of Telengana region as equivalent to the post of Executive Engineer (Ordinary Grade) of Andhra region and to integrate their services accord· ing to the agreed principles at the Chief Secretaries Conference in the months of April and May, 1956. The Telengana officers

N. SUBBA RAO V. UNION (Ray, J.)

also asked for orders quashing the decision dated 22/24 Decem-ber, 1966 of the Govemme .. t of India approving th;, regularisa, tion with 'retrospective effect and relaxation of the normal rule5 with regard to temporary appointments made by Andhra State to the post of Executive Engineer and by promotion from the next lower category of officers.

In writ· petition No. 896 of 1967 the Telengana area offi-

cers asked for mandanws directing the respondents to treat the posts of Assistant Engineers of Telengana region as clasii superior to the post of Andhra State Engineers and the post of Sub-Engineers and Sub-Divisional Officers of Hyderabad State as equivalent to the· post of Assistant Engineers of Andhra Stak and to integrate the services of the personnel of the two regions by adhering to the agreed principles at the .Chief Secretaries Con-ference in the months of April and May, 1956. The Telengana area officers also asked for an order quashing the decision dated 22/24 December, 1966 of the Government of India approving the retrospective regularisation and relaxation of normal mles with regard to temporary appointments made in Andhra State to the post of Assistant Engineers and by promotion from the next lower category of officers.

The Andhra officers filed writ petition No. 1439 of 1967

and asked for order quashing the decision dated ?2/24 Decem · her, 1966 of the Government of India in so far ·;.; it related to rejection of regularisation with retrospective effect of officers of Andhra State falling under categories (b) and ( c) mentioned in that decision.

The High Court by common judgment dealt with writ peti-

tions No. 1363 of 1966 and 1439 of 1967 filed by the Andhra officers and writ petitions No. 799, 833 and 896 of 1967 filed by the Telengana area Qfficers. The decision of the Governme11t Of India dated 22/24 December, 1966 was quashed on the ground that it suffered from the vice of denial of principles of natural justice to the Telengana area officers. The High Court said that it was open to the Government of India to adhere to its previous decisions of 24 December, l 96S and 14 June, 1966 .,, ,, or to vary the decisions but the Central Government was to give an opportunity to the services effected to make their representa. tions. The High Court further said that if the Central Govern-ment wanted to vary the earlier decisions of 24 December 1965 and 14 June, 1966 then all the services effected should be given an opportunity to make their representations. The Central Government was in that case in consultation with {he Central Advisory Board to lay down principles of equation of posts and fixation of inter-re seniority and to finalise the preparation of common gradation lists.

The High Court did not however give any decision on the merits of the question of retrospective regularisation of the services of the Andhra Engineers or the equation of posts. The High Court further said that they refrained particularly from examining the individual cases of the Andhra State officers in-asmuch a~ the same might not arise if the principles of equation of posts and integration were settled after due consideration of the representation on fair and equitable basis.

The High Court however expressed the view that the temporary promotions of Executive Engineers and Assistant Engineers in the Andhra State prior to l November, 1956 were stop-gap or fortui-tous arrangements.

In the result, the High Court dismissed the writ petitions No. 1363 of 1966 and 1439 of 1967 filed by the Andhra officers. The High Court allowed writ petitions No. 799, 833 ·and 896 of 1967 filed by the Telengana officers. Civil Appeals No. 2436 and 2439 of 1969 arise out of writ petitions No. 1363 of 1966 and .1939 of 1967 jiled by the Andhra State officers. Civil Appeals No. 2437 and 2438 of 1969 arise out of writ petitions No. 799 and 833 of 1967 and the appellants in this Court are the Andhra State officers.It may be stated here that Civil Appeals No. 157, 158 and 343 of 1969 are pending in this Court. These three appeals arise out of writ petitions No. 799, 833 and 896 of 1967 filed in the Andhra Pradesh High Court by the Telengana area officers. The Telengana area officers filed. those three appeals challenging the finding of the High Court that the decision of the Central Government dated 24 December, 1965 was not final and that it was open to the Central Government to consider the· temporary (stop-gap or fortuitous) service of Engineers from particular region for the purpose of seniority after giving an op-portunity to the effected persons and after consultat'on with the Central Advisory Board.

Counsel on behalf of the Andhra State officers contended that the decision of the Central Government dated 22/24 December, I 966 was not in violation of the principles of natural justice in-asmuch as Telengana area officers had made representations in the year 1965. It was also said that the decision of the Central Government dated 22/24 December, 1966 was nothing more than accepting in part the recommendations of the Central Advisory Committee given in the month of November, 1965. According to the appellan{s, the Tclengana area officers made their repre-sentations to the Central Advisory Committee and also to the Central Government. The High Co•1rt correctlv held that the order of the Central Government dated 22/24 December, 1966

was made without giving the Telengana area officers any opportu-nity of making representation against the course of action which the Central Government adopted by that decision.

The second contention on behalf of the aiJpellants, namely, the Andhra State officers was that the High Court was wrong in holding that the temporary service of the Andhra officers was stop-gai:- or fortuitous arrangement. It was said on behalf of the Andhra officers that there was no bar in the States Reorgani-sation Act to regularising the services which were irregular in the liCnse that the Public Service Commission was not consulted at the time of appointment but such consultation was done later. It was also said · that the appointments in the Andhra State were initially irregular, but they were not invalid appointments. It was contended that irregular service, if any, must be coun'.ed for for the purpose of integration of services and fixation of seniority. The retrospective regularisation and relaxation of rules was de-fended bv counsel for the appellan1s to be within the power ci the Andhra Pradesh State to deal with its own old personnel on the ground that such power was not only not taken away by the States Reorganisation Act but was preserved.

The rival contentions on behalf of the Telengana area officers were that the Central Government under section 115 ( 5) of the Act was not competent to confer any new rights but only t<Y determine the rights existing as on the mid-night of 31 October, 1956. It was specially emphasised on behalf of the respondents, the Telengana area officers, that the Andhra Pradesh State had no jurisdiction to regularise the services of the Andhra State offi-cers with retrospective effect from date anterior to I November, 1956. The reason advanced against such retrospective regulari-sation was that it would con.fer the right of seniority which would pertain only to regular service and thereby enable the An<ihra State officers to occupy place in the Inter-State seniority which they could not have but for the regularisation. Irregular ap-pointment was also said to confer no right to the post. The reason was that the appointment was temporary and therefore it conferred no right. Counsel on behalf of the Telengana area officers contended that the principles arrived at the Chief. Secre-taries Conference indicated that only regular service, whether. 1 emporary or pennanent, could be counted to determine the· length of continuous service.It is not necessary to express any opinion in these appeals as lo whether the services of Andhra State officers were stoo-gap vr fortuitous arrangements. Under the States Reorganisation Act power is conferred on the Central Government to bring about •he integration of services in the State of Andhra Pradesh by ensuring

fair and equitable treatment to all persons effected by the provi-sions of section 115 of the Act. The Government of Andhra Pradesh is under duty to bring all relevant facts to the notice of the Central Government. The Andhra State officers are to present their viewpoint in order to ensure that the final decision of the Central Government is fair and oouitable to all employCCi of the new State. The Telengana area officers are also entitled to make representations in .order to ensure integration of the services and fair and equitable treatment to all persons effected by the provisions of the section.

Under the States Reorganisation Act the Central Government is entrus·ted with the power of the division and integration of the services and the ensuring of fair and equitable treatment to all persons effected by the provisions of section 115 of the Act in regard to allotmen1 of officers from an existing State to swccessor- State. With regard to .powers of the State section l! 5 ( 7) of the Act provides that after the appointed day {I November, 1956) nothing shall effect the operation of the pro-visions of Chapter I of Part XIV of the Constitution in relation to the determination of the conditions of service of persons serving in connection with the affairs of the Union or any State. There iii however an important proviso to sub-section ( 7). It is that the conditions of service applicable immediately before the ap-pointed day to the case of any person referred· to in sub-section (1) ot sub-section (2) shall not be varied to his disadvantage except with the previous approval of the Central Government

The power of the Central Government with regard to divi-sion and integration of service came up for consideration before this Court in Union of India & Anr. v. P. K. Roy & Ors.('). It was said there that the work of integration requires the formula-tion of principles, the actual preparation of preliminary gradation list in accordance with the principles, the invitation of representa-tions by the persons affected thereby, the consideration of re-pni.entalions and the publication of the final gradation list 'jncor-l>Of&ting the dechion upon the representations. The Act also ern-·powers the Central Government to establish Advi~ory Committees for the purpose of assisting the Central Government. In P. K . .',Roy's(') case (supra) the ruling of this Court was that the prc-lim:nary work of preparation of- the gradation list on the princi-ples decided · upon by the Central Government could be ·1eft to 1he State Government concerned and there would be no mischief of delegation of power by that course of action. The power of the Central Gvvernment under section 115 of the Act is that the decision has to be of the Central Go-vernment The Centi al Government can therefore take the aid

ll ~ ~2:~;c ..D ,.... \-E

I 1111 -~ '\11!1 -~

and assistance of the State Government in the matter oi e!ecting the integration of the services but the final integration is .to be. done only with the sanction and approval of the Central Govern-ment. In the present appeals, there is no queS'tion of delegation. The integration oi. services is to be done by the Central Gove'11-ment. In the task of integration of services the Central Govern-ment will consider the rival contentions of Andhra officers and Telengana area officers ljs to whether the services of the Andhra officers were stop-gap or fortuitous arrangements.The power of th<;l State Government to change conditions oi. se1'Tice within the meaning of section 115(7) of the Act was con-siderc(I by this Court in N. Raghavendra Rao v. Deputy Commis-sioner, South Kanara, Mangalore.(') This Courtsaid, "The broad purpose underlying the proviso to section 115 ( 7) of the Act was to ensure that the conditions of service should not be chanj!;ed · except with the prior approval of the Central Government." Under .'uticle 309 of the Constitution the power of the State is preserved to make rules. The proviso to sction 115(7) of the Act imposes limitation on tlie State not to vary the conditions of service appli· cable immediately before 1 November, 1956 to the disadvantage ct persons mentioned in sub-sections (1) or ( 2) of sectioH 115 of the Act. In Ral(havendra Rao's case (supra) the Central Gov-ernment on 11 May, 1957 addressed memorandum to all State Governments. the Central Government there said that some con-ditions of service. should be protected. The matters for µrotec•ion me!l.~ioned were substantive pay of permanent 1 employees, certain type of special pay and leave rules in certain cases. With regard to departmental promotion, the Central Government memorandum said that the question whether any protection should be given in respect of rules and conditions applicable to Government servants affected by reorganisatbn immediately before the date of reorgani-sation in the matter of tnvelling al'owance, dif.~!:iline, control. cl:>ssification, appeal, conduct, probation and departmental pro-motion was also considered. The Central Government memoran-dum agreed with tlie State view that it would not be appropriate tn provide for prote(,tion ·in the matter of those conditions. This memorandum was corntrued by this Court to am.cunt to an ap-Jro-val by the Central Goverriment of chan.ze of service rules by the State. It, therefore, follows that if there is any question of change c;f conditions of servicP, it will have to be found out whether in the first pl1ce it amounts to change in the conditions of service and, if so, secondly to find out whether there was prior approval of the Central Government. One of the contentions adv~nccd bv th~ T.clengana officers in the present appeals was that the retrospective

(I) [1964] 7 S.CR. 549.

regularisation and relaxation of rules biy the State of Andhra Pra-desh subsequent to the appointed day would amount to change in conditions of service and conferment of new advantages on Andh-ra officers to the detriment to the Telengana officers. It will be within the province of the decision o.f the Central Government under section 115 of the Act in regard 10 integration of services and ensuring fair and equitable treatment to an persons whether the retrospective regularisation and relaxation of rules will amount to any change in the conditions of service or will resuH in denial of fair and equitable treatment to any of the persons affected thereby.

The Central Government under the Act is required to affect 1he integration of services of officers in the Telengana area . and officers of the Andhra State. The Central Government will have to decide whether the regularisation of promotions of Andhra En-gineers and relaxation of rules and retrospective regularisa· ion was permissible. The Central Government will determine finally the principles governing the equation of posts and the preparation of common gradation lists.

In the result, 'the order of the High Court quashing the deci-sion of the Central Government dated 22/24 December, 1966 fa upheld. The observations of the High Court on the tempoury service ot the Andhra officers to be stop-gap or fortuitous arrange-ments are set aside. The Central Government will determine the principles governing the equation of posts. The Central Govern-ment will now proceed wi1h the integration of services of Telengana area officers and Andhra State officers and determine the principles governing the equation of posts and prepare gradation lists after ;giving opportunities to the persons affected to make their represen-tations.

In v!ew of the divided success of both the parties, they will bear their costs both in the High Court and in this Court.

Appeal partly, allowed.