http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 15

PETITIONER:

GOVERNMENT OF ANDHRA PRADESH AND ANR.

Vs.

RESPONDENT:

A. SURYANARAYANARAO AND ORS. ETC.

DATE OF JUDGMENT12/09/1991

BENCH:

REDDY, K. JAYACHANDRA (J)

BENCH:

REDDY, K. JAYACHANDRA (J)

PANDIAN, S.R. (J)

CITATION:

1991 AIR 2113 1991 SCR Supl. (1) 27

1991 SCC Supl. (2) 367 JT 1991 (4) 206

1991 SCALE (2)548

ACT:

Constitution of India, 1950: Article 371D--Object and

scope of---Issuance of Presidential Order 1975--Effect on

A.P. Panchayati Raj Engineering Service Rules, 1963--Rule

2A--Assistant Engineers (Deputy Executive Engineers)--Wheth-

er applicable for direct recruitment only or for promotion

also.

Civil Services: .A.P. Panchayati Raj Engineering Service

Rules, 1963: Rule 2A--Promotion-Junior Engineer to Assistant

Engineer--Whether to be made on the basis of zonal seniority

or statewide seniority.

HEADNOTE:

Article 371D of the Constitution of India, which is

peculiar to the State of Andhra Pradesh only, empowers the

President to provide by order for equitable opportunities

and facilities for the people belonging to different parts

of the State in the matters of public employment and educa-

tion. As provided therein the President of India made the

Andhra Pradesh Public Employment (Organisation of Local

Cadres and Regulation of Direct Recruitment) Orders, 1975,

by virtue of which the State was divided into six zones, and

local cadres of posts in respect of the local areas were

created. In respect of Andhra Pradesh Panchayati Raj Engi-

neering Service the two such zonal posts were Junior Engi-

neer and Assistant Engineer. Before the Administrative

Tribunal, some promotions made from Junior Engineer to

Assistant Engineer were questioned, and the Tribunal held

that promotions should be made on the basis of the Statewide

list and directed the State Government to redetermine the

position of the petitioners before it, in the seniority

list.

Aggrieved by the Tribunal's order, the State Government

and the affected officials have approached this Court by way

of the present appeals and special leave petitions.

On behalf of the State Government, it was contended that

both the posts of Junior Engineer and Assistant Engineer

were zonal posts under the Presidential Order and the zonal

seniority list had to be followed in the

28

matter of promotions from Junior Engineer to Assistant

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 15

Engineer and not the Statewide seniority list of Junior

Engineers.

On behalf of the Respondents it was contended that

Article 371D (2) of the Constitution refers only to direct

recruitment and the Presidential Order made under the said

Article cannot make a departure and cannot be made applica-

ble for promotions also. It was further contended that it is

the Statewide list that should be the basis for promotion.

Disposing of these matters, this Court,

HELD: 1. Notwithstanding anything contained in the A.P.

Panchayati Raj Engineering Service Rules, 1963 the promo-

tions have to be based on zonal list; otherwise the very

object sought to be achieved as per Article 371D of the

Constitution of India and the Presidential Order issued

thereunder would be defeated. The word 'employment' should

be interpreted in a broad and general manner. The expression

'in the matter of public employment' in clause (1) of Arti-

cle 371D is of wider import. The public employment can be by

way of direct recruitment or by promotion. The Presidential

Order would apply both for direct recruitment and for promo-

tion in respect of categories specified in the Third Sched-

ule. Article 371D (2) does not make any departure from this

principle. The words 'in particular, therein only lay empha-

sis on the aspect of creating local cadres for different

parts of the State for the purpose/of direct recruitment and

treat such parts as local areas. This does not in any manner

restrict the scope of Article 371D wherein it is clearly

declared that in the matter of public employment, the Presi-

dent is empowered to make an order in the manner stated

therein and the public employment cannot but be interpreted

to include promotion also. It, therefore, emerges that

Article 371D is in general terms and applies to the public

employment as whole and Article 371D(2) in particular ap-

plies to direct recruitment. It is only complementary to

clause (1) and particularises the matters which an order

made under clause (1) provides for. Any other interpretation

would defeat the object underlying these two provisions. [42

D-H, 43 A]

The General Manager, Southern Railway v. Rangachari,

[1962] 2 SCR 586, relied on.

2.1. Article 371D is of exceptional nature and the

objective is to provide equal opportunities in the backward

areas in respect of the specified posts mentioned in the

Third Schedule which are included in the local cadres which

thus became zonal posts. As mentioned in para 5 of the

29

Presidential Order and Rule 2-A of the A.P. Panchayati Raj

Engineering Service Rules, such zones should be treated as

separate units for the purpose of promotions also. There-

fore, there is valid nexus to the object that is sought to

be achieved and even if there is some anamoly it cannot on

that basis be said that such promotions for zonal posts on

the basis of the zonal seniority list amounts to discrimina-

tion. [44 D-E]

2.2. Rule 2-A makes it abundantly clear that for the

purpose of recruitment, appointment, promotion, transfer

etc. each zone shall be a separate unit. Para 5 of the

Presidential Order is also to the same effect. When once

each zone is treated as separate unit for the purpose of

promotion also in respect of zonal posts then by virtue of

Article 371D and the Presidential Order, the promotion from

the post of junior Engineer to the post of Assistant Engi-

neer which are both zonal posts, should be on the basis of

the zonal seniority list inasmuch as the post of Junior

Engineer and the next promotion post namely Assistant/Engi-

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 15

neer are included in the local cadres and the zonal list in

the Third Schedule. With regard to the higher post which

included in the local cadre and which are Statewide posts,

it becomes obvious that the Statewide seniority list of the

Assistant Engineer of all zones should be prepared and that

should be the basis of promotion to the post of Executive

Engineer which is not a zonal post. Therefore, the direc-

tions given by the Tribunal to ensure that no Junior Engi-

neer is promoted earlier than their seniors in the Statewide

seniority list to the post of Executive Engineer, should be

quashed. [43 F-H, 44 A-B]

S. Prakasha Rao and Anr. v. Commissioner of Commercial

Taxes and Ors., [1990] 2 SCC 259, relied on.

High Court of Andhra Pradesh and Ors. v. V.V.S. Krishna-

murthy and Ors., [1979] 1 SCR 26, referred to.

3.1. All promotions of Junior Engineers (redesignated as

Assistant Executive Engineers) to the next higher post of

Assistant Engineers (redesignated as Deputy Executive Engi-

neers) have to be made on the basis of the zonal seniority

list and not on the basis of the Statewide seniority list of

Junior Engineers. [44 F]

3.2. Having regard to the historical background and the

object underlying Article 371D and the Presidential Order

and in particular para 13 of the Presidential Order, the

promotions, if any made should be

30

treated only as provisional. If Rule 2-A is viewed from this

angle particularly in the light of paras 5 and 13 of the

Presidential Order it becomes clear that the said Rule has

to be given retrospective effect so that the promotions to

the junior posts can be brought in conformity with Articles

371D and the Presidential Order.The promotions made after

the Presidential Order dated 18.11.1975 should be treated as

provisional and the Government is permitted to review these

promotions on the basis of zonal seniority lists and re-

adjust the same all the future promotions. from the post of

Junior Engineer to the post of Assistant Engineer should

necessarily be made on the basis of the zonal seniority

lists. For the purpose of promotion to the post of Executive

Engineer, which is not a zonal post, a Statewide seniority

list of the Assistant Engineers of all zones should be

prepared and such statewide seniority list should form the

basis of promotion to the post of Executive Engineer. The

State Government is accordingly directed to prepare such

lists i.e. zonal seniority lists of various zones for the

purpose of promotions from Junior Engineers to Assistant

Engineers within the zones and also the statewide seniority

list of the Assistant Engineers of all zones for the purpose

of promotions to the post of Executive Engineer. Such of the

directions given by the Tribunal in the matters, which are

contrary to and different from the conclusions now reached,

shall remain quashed. [44 D-E; 44 D-H; 45-A-B]

3.3. The inter-se seniority and the consequent promo-

tions of Respondent Nos. 1 to 5 in Civil Appeal No. 3935/88

as well as the petitioners in Special Leave Petition (Civil)

No. 2150/87 shall be determined subject to the directions,

now given. [45 B-C]

Y..N. Rangiah and Ors. etc. v.J. Sreenivasa Rao and Ors.

etc., [1983]3 SCC 284; N.T. Devin Katti and Ors. v. Karnata-

ka Public Sen,ice Commission and Ors., [1990] 3 SCC 15,

referred to.

JUDGMENT:

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 15

CIVIL APPELLATE JURISDICTION: Civil Appeal No.3985 of 1988.

From the Judgment and Order dated 31.12.1987 of the

Andhra Pradesh Administrative Tribunal, Hyderabad in R.P.No.

967 of 1987.

WITH

S.L.P. (C) No. 9290 of 1988 with S.L.P (C) No. 2150/87 CMP

No. 25521/88 and C.A.1342/86

K.Madhava Reddy, C. Sitaramiah, P.P.Rao, G. Prabhakar,

K.R.

31

Nagaraja, P.K. Rao, Ms. C.K. Sucharita, B. Kanta Rao, K. Ram

Kumar, B. Krishna Prasad and T.V.S.N. chari (N.P.) for the

appearing parties.

The Judgment of the Court was delivered by

K. JAYACHANDRA REDDY, J. The questions that arise for

consideration in all these connected cases are confined only

to some of the posts of civil services of Andhra Pradesh in

view of certain special provisions applicable to these

services. Article 371D of the Constitution of India is

peculiar to the State of Andhra Pradesh due to historical

background. It was enacted by the Constitution (Thirty-

Second) Amendment Act which applied only to the State of

Andhra Pradesh, with a view to give effect to certain safe-

guards in the matter of employment opportunities for resi-

dents of Telangana region. This Article empowers President

to provide by order for equitable opportunities and facili-

ties for the people belonging to different parts of the

State of Andhra Pradesh in the matter of public employment

and in the matter of education. This Article also provides

for constitution of an Administrative Tribunal to receive

representations for the redressal of the grievances and for

passing necessary orders. Accordingly the President of India

made Andhra Pradesh Public Employment (Organisation of Local

Cadres and Regulation of Direct Recruitment) Order, 1975

('Presidential Order' for short) by virtue of which the

State of Andhra Pradesh has been divided into six zones and

local cadres of posts in respect of the local areas were

created. In respect of Andhra Pradesh Panchayati Raj Engi-

neering Service the two such zonal posts are junior Engineer

and Assistant Engineer. The main question that arises for

consideration in these cases is whether the promotion from

Junior Engineer to Assistant Engineer should be on the basis

of Statewide list or the zonal list. Some of the promotions

made were questioned by the affected persons before the

Administrative Tribunal which disposed them of indicating

that such promotions should be made on the basis of the

Statewide list. The State of Andhra Pradesh has questioned

the same in C.A.No. 1342/86, C.A.No. 3985/88 and S.L.P.

(Civil) No. 9290/88 mainly on the ground that promotions

should be confined to only within local cadres and zonal

posts. S.L.P. (Civil) No. 2150/87 is filed by two such

Engineers whose representation was disposed of by the Tribu-

nal directing the Government to redetermine their positions

in the Seniority list instead of giving a definite declara-

tion as prayed for by them.

Shri K.Madhava Reddy, learned counsel appearing for the

State of Andhra Pradesh, submitted that both the posts of

Junior Engineer and Assistant Engineer are zonal posts under

the Presidential Order and the zonal seniority list has to

be followed in the matter of promotions from

32

Junior Engineer to Assistant Engineer and not the Statewide

seniority list of Junior Engineers. He also submitted that

all promotions made so far pursuant to certain orders should

be treated as provisional and that the State Government

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 15

should be permitted to review these promotions on the basis

of the zonal seniority list and that all further promotions

shall be made on the basis of the zonal seniority list.

According to the learned counsel, for the purpose of promo-

tion to the higher post of Executive Engineer which is not a

zonal post, a Statewide seniority list of Assistant Engi-

neers of all zones should be prepared on the basis of which

promotion to the post of Executive Engineer will be made.

Shri Sitaramiah, learned counsel appearing for respondents,

submitted that Article 371D(2) refers only to direct re-

cruitment and the Presidential Order made under the said

Article cannot make a departure and cannot be made applica-

ble for promotions also. On the other hand, it is the State-

wide list that should be the basis for promotions. In sup-

port of his submissions he invited our attention to the

provisions of Article 371D and the Presidential Order and

emphasised the word 'employment' as occurring in the Article

should be confined only to direct recruitment. Shri P.P.

Rao, learned counsel appearing for other set of respondents

in the appeals filed by the State of Andhra Pradesh, submit-

ted that even if either of the lists is to form the basis

for promotions his clients are not affected and their promo-

tions are being unnecessarily delayed. Some of the Engineers

of the Andhra Pradesh Panchayati Raj Engineering Service got

themselves impleaded in the appeal filed by the State of

Andhra Pradesh and Shri B. Kanta Rao appearing on their

behalf supported the stand taken by the Government of Andhra

Pradesh.

To appreciate these rival contentions it becomes neces-

sary to refer to some of the relevant provisions of Article

371D as well as the Presidential Order and some of the

notifications made thereunder and the relevant provisions of

the A.P. Panchayati Raj Engineering Service Rules. On Novem-

ber 1, 1956 as a result of reorganisation of the States the

erstwhile State of Hyderabad was trifurcated and Telangana

region became a part of the newly formed State of Andhra

Pradesh. Certain safeguards were envisaged for the Telangana

area in the matter of development and also in the matter of

employment opportunities and education facilities for the

residents of that area. In the year 1957 the Public Employ-

ment (Requirement as to Residence) Act was enacted inter

alia to provide for employment opportunities for residents

of Telangana area. Some of the relevant provisions were held

to be unconstitutional by the Supreme Court due to a variety

of causes. The working of the safeguards gave rise to dis-

satisfaction sometimes in the Telangana area and sometimes

in the other areas of the State and even led to violent

agitations. A consensus was arrived

33

among several leaders of Andhra Pradesh to make a concerted

effort to analyse the factors which have been giving rise to

the dissatisfaction and they suggested certain measures

known as "Six-Point Formula" and the same has been endorsed

by the State Government. A bill was brought forward to

provide for necessary constitutional authority for giving

effect to this formula and the same became the Constitution

(Thirty-Second) amendment Act under which Article 371D was

introduced. The relevant provisions of this Article for our

purpose are as under:

"371-D. Special provisions with respect to the

State of Andhra Pradesh-(1) The President may

by order made with respect to the State of

Andhra Pradesh provide, having regard to the

requirements of the State as a whole, for

equitable opportunities and facilities for the

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 15

people belonging to different parts of the

State, in the matter of public employment and

in the matter of education and different

provisions may be made for various parts of

the State.

(2) An order made under clause (1) may, 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 accordance 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;

(ii) for direct recruitment to posts in any

cadre under any local authority within the

State; and

(iii) for the purpose of admission to any

University within the State or to any other

educational institution which is subject to

the control of the State Government;

XX XX XX

(10)

The provisions of this article and of any

order made by the President thereunder shall

have effect notwithstanding anything in any

other provision of this Constitution or in any

other law for the time being in force."

34

It may be noted that clause (3) provides for constitu-

tion of an Administrative Tribunal. Now we may note some of

the relevant provision in the Presidential Order. In para 2

definitions of the various expression used in the Order are

given. They read thus:

"Para 2. Interpretations: - (1) In this Order,

unless the co text otherwise requires:-

(a) xx xx xx

(b) 'direct recruitment' includes recruitment

made on a temporary basis but does not include

recruitment made in pursuance of any scheme

approved by the State Government providing for

the regularisation of the services of persons

holding posts on a temporary basis before the

commencement this order;

(c) 'local area' in relation to any local

cadre, means the local area specified in

paragraph 6 for direct recruitment to posts

such local cadre, and includes, in respect of

posts belonging the category of Civil Assist-

ant Surgeons, the local area specified in

sub-paragraph (5) of paragraph 8 of this

Order;

(d) 'local authority' does not include any

local authority which is not subject to the

control of the State Government;

(e) 'local cadre' means any local cadre of

post under the State Government organised in

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 15

pursuance of paragraph 3, or constituted

otherwise for any part of the State;

(f) 'local candidate' in relation to any local

area, means a candidate who qualifies under

paragraph 7 as a local candidate relation to

such local area;

(g) xx xx xx

(h) 'Schedule' means a Schedule appended to

this Order;

(i) xx xx xx

(j) 'specified gazetted category' means any

gazetted category specified in the Third

Schedule and includes any other gazetted

category notifies as such by the Central

Government;

(k) xx xx xx

(l) xx xx xx

35

(m) 'Zone' means a zone specified in the

Second Schedule comprising the territories

mentioned therein.

xx xx xx

Para 3. Organisations of Local Cadres:- (1)

The State Government shall, within a period of

eighteen 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.

(G.O. Ms. No. 794, G.A.(A) dated 12.11.1976)

"Provided that, notwithstanding the expira-

tions of the said period, the president may by

order, require the State Government, whenever

he considers it expedient so to do, to orga-

nise any classes of posts in the civil serv-

ices of, and classes of civil posts, under the

State into different local cadres for differ-

ent parts of the State." (Proviso is added as

per G.O. Ms. No. 34,

G.A.D. (SPFA), dated 24th January, 1981).

(2) The posts belonging to the category of

Junior Assistant, and to each of the other

categories equivalent to, or lower than that

of a Junior Assistant in each department in

each district shall be organised into a sepa-

rate cadre.

Explanation:- For the purposes of this sub-

paragraph, subparagraph (1) of paragraph 6,

and sub-paragraph (1) of paragraph 8, a cate-

gory shall be deemed to be equivalent to or

lower than that of a Junior Assistant if the

minimum of the scale of pay, of a post belong-

ing to a category or where the post carries a

fixed pay, such fixed pay equal to or lower

than the minimum of the scale of pay of a

Junior Assistant.

(3) The posts belonging to each non-gazetted

category, other than those referred to in

sub-paragraph (2), in each department in each

zone shall be organised into a separate cadre.

(4) The posts belonging to each specified

gazetted category in each department in each

zone shall be organised into a separate cadre.

(5) Notwithstanding anything contained in

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 15

sub-paragraphs (3) and (4), the State Govern-

ment may, where it considers it expedient to

do so and with the approval of the Central

Government, organise the posts belonging to

any of the categories

36

referred to therein, in any department, or any

establishment thereof, in two or more continu-

ous zones into a single cadre.

xx xx xx

Para 4. Allotment of persons:- (1) Persons

holding posts required to be organised into

local cadres shall be allotted to such cadres

by the State Government or any officer or

authority authorised by it in this behalf in

accordance with the principles and procedure

hereinafter specified.

(2) In allotting persons to local cadres due

regards shall be had to all or any of the

following, namely: -

(a) the administrative needs of the posts in

the local cadres;

(b) the need for the composition of balanced

local cadres with reference to age and senior-

ity, groups;

(c) the length of service of the persons

concerned in the part of the State for which

the local cadre is organised;

(d) knowledge of the persons concerned of the

languages spoken and the law in force in the

part of the State lot which the local cadre is

organised;

(e) preference of the persons concerned for

allotment to any local cadre, where feasible.

xx xx xx

Para 5. Local cadres and transfer of persons:-

(1) 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,

and such other matters, as may be specified by

the State Government, in respect of that

category of posts.

xx xx xx

Para 13. Certain appointments and promotions

to be provisional:- Any certain appointments

and promotions made after the commencement of

this order or any order made in pursuance of

the proviso to paragraph 3, as the case may

be, and before any local cadre has been orga-

nised under the provisions of this Order made

in pursuance of the Proviso to

37

paragraph 3, to any post which is required to

be included in such cadre shall be provisional

and shall, within a period of twelve months

after such organisation, be reviewed and

readjusted in accordance with the provisions

of this order.

Explanation:- For the purposes of this para-

graph, any local cadre shall be deemed to be

organised, with the allotment of persons to it

under paragraph 4. (Substituted as per G.O.

Ms. No. 234, GAD (SPF-A) Dept., dated 24th

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 15

Jan., 1981).

xx xx xx

THE SECOND SCHEDULE

(See paragraphs 2 (1) (m) and 8 (4)

Zones

Zone I Shrikakulam and Visakhapatnam districts.

Zone II East Godavari, West Godavari and Krishna

districts.

Zone III Gunrur, Prakasam and Nellore districts.

Zone VI Chittoor, Cuddapah, Anantapur and Kurnool

districts.

Zone V Adilabad, Karimnagar, Warangal and Khammam

districts.

Zone VI Hyderabad, Nizamabad, Mahabubnagar, Medak

and Nalgonda districts.

THE THIRD SCHEDULE

[See paragraphs 2(1) (j) and (4)

Specified Gazetted Categories

Sr. No. Category Name of the Department

(1) (2) (3)

xx xx xx

30. Assistant Engineers Panchyati Raj Enginee-

ring Department

30 A. Junior Engineers do

xx xx xx

40. Junior Engineers Public Works Department

(Irrigation)

41. Assistant Engineers Public Works Department

(Irrigation)

42. Junior Engineers Public Works Department

(R&B)

43. Assistant Engineers - do-"

(emphasis supplied )

38

It is clear from these provisos that the primary purpose

of Article 371D was to promote speedy development of the

backward areas of the State of Andhra Pradesh with a view to

secure balance in the development of the State as a whole

and to provide equitable opportunities to different areas of

the State in the matter of education, employment and career

prospects in public service. Accordingly the Presidential

Order was made.

From the above extracted provisions of the Order it can

be seen that State of Andhra Pradesh was divided into six

zones and the 4th zone, with which we are concerned, com-

prises of Chittoor, Cuddapah, Anantpur and Kurnool Dis-

tricts. As noted above Schedule III enumerates various

specified gazetted categories and Junior Engineers and

Assistant Engineers in the Panchayati Raj Engineering De-

partment as well as in the Public Works Department (Irriga-

tion) and (Roads and Buildings) are among those various

categories mentioned therein. Paragraph 3 provided for

organisation of local cadres in respect of classes of posts

in the civil services in the State of Andhra Pradesh. Under

para 3(4) the posts belonging to each specified category in

each department in each zone shall be organised into a

separate cadre. Para 4 provides for the allotment of persons

holding posts into such local cadres to be organised. Para 5

which is important, lays down 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

not only recruitment etc. but also in respect of promotion.

Para 13 lays down that in certain appointments or promotions

after the commencement of the Presidential Order or any

order made in pursuance of the proviso to paragraph 3 and

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 15

before any local cadre has been organised, shall be provi-

sional and shall within a period of twelve months after such

organisation of local cadre, be reviewed and readjusted in

accordance with the provisions of the Presidential Order.

A.P. Panchayati Raj Engineering Service Rules were

framed in the year 1963. These Rules provide for the ap-

pointments of different categories of engineers. After the

Presidential Order was issued a new Rule 2-A was introduced

on 26.11.79 to bring the State Rules in conformity with the

provisions of the Presidential Order.

Rule 2-A reads thus:

"Rule 2-A Unit of Appointment: For

purposes of recruitment,appointment, discharge

for want of vacancy, re-appointment, seniori-

ty, transfer, promotion and appointment as

full member in respect of category 4,

Deputy Executive Engineers, each

39

zone comprising the districts specified

against each shall be a separate unit:

xx xx xx

Zone IV: Chittoor, Cuddapah, Anantpur and

Kurnool districts.

xx xx xx

Provided that the post of Deputy Executive

Engineers in the office of the Chief

Engineer (Panchayati Raj) shall be filled on a

tenure basis by drafting persons equitably

from different units and the period of tenure

shall not ordinarily exceed three years;

Provided further that the posts of Deputy

Executive Engineers in the Rigs Divisions

notified as Special Officers under the Andhra

Pradesh Public Employment (Organisations of

Local Cadres and Regulation of Direct Recruit-

ment) Order, 1975 shall be filled by drafting

persons from the units over which the respec-

tive Rigs Division is having jurisdiction.

(G.O. Ms. No. 1024 PR, dated 26.11.1979)."

Regarding the scope of this rule it is the submission of

the learned counsel for the State of Andhra Pradesh that a

combined reading of Rule 2-A read with para 13 of the Presi-

dential Order would show that the said Rule has retrospec-

tive effect, therefore the Government is at liberty to

revise the promotions made otherwise then on the basis of

the zonal seniority list. But Shri Sitaramiah, learned

counsel, submitted that the said Rule cannot be given retro-

spective effect and the same applies to vacancies arising

thereafter and therefore the promotions already made should

not be disturbed.

It is an admitted fact that there was a Statewide list

of Junior Engineers before 28.10.75 namely before the Presi-

dential Order was made. Questioning some of the promotions

made by the Government, representation petitions were filed

before the A.P. Administrative Tribunal. In such matters the

Tribunal observed that as a precautionary measure the jun-

iors to the petitioners therein in the Statewide list cannot

be promoted before the petitioners' cases are considered for

the appointment to the post of Executive Engineer which is a

higher post. In all the orders passed by the Tribunal there

is an indication that the Statewide list should be the basis

for promotion. Though they appear to be in the nature of

interim

40

directions but the ratio relied upon is that the promotion

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 11 of 15

should be on the basis of the Statewide list. Therefore the

question that has been canvassed by the State Government in

all these matters is that the observation and the directions

given by the Administrative Tribunal are opposed to the very

object underlying the Presidential Order and is contrary to

various provisions therein.

At this juncture it is essential to note the principle

and object underlying the zonal system as provided for in

the Presidential Order. We have already noted that the

object underlying Article 371D is to promote speedy develop-

ment of the backward areas and to provide equal opportuni-

ties to different areas of the State in the matter of em-

ployment etc. This Article is a special provision which

makes departure from the general scheme of the Constitution.

In High Court of Andhra Pradesh and Ors. v. V.V.S.

Krishnamurthy and Ors., [1979] 1 SCR 26 after referring to

the Statement of Objects and' Reasons of the Constitution

(Thirty-Second) Amendment Act, it was observed as under:

"It will be seen from the above extract, that

the primary purpose of enacting Article 371D

was two-fold; (i) To promote "accelerated

development of the backward areas of the State

of Andhra Pradesh so as to secure the balanced

development of the State as a whole". and (ii)

to provide "equitable opportunities" to dif-

ferent areas of the State in the matter of

education, employment and career prospects in

public service.

(1) To achieve this primary object, Clause (1)

of Article 371D empowers the President to

provide by order, "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." Clause (2) of the Article is complemen-

tary to Clause (1). It particularises the

matters which an order made under Clause (1)

may provide. For instance, its sub-clause (c)

(i) enables the President to specify in his

Order, "the extent to which, the manner in

which and the conditions subject to which,

preference or reservations shall be given or

made in the matter of direct recruitment to

posts in any local cadre under the State

Government or under any local authority. Sub

clause (c) further makes it clear that resi-

dence for a specified period in the local

area, can be made a condition for recruitment

to any such local cadre. Thus, Clause (4)

also, directly is designed to achieve the

primary object of the legislation."

41

The Presidential Order was made keeping in view this

Object and suitable provisions are inserted. With a view to

achieve this Object and in conformity with the provisions of

the Order, the State is divided into six zones and certain

specified gazetted services are included in the local

cadres. The A.P. Panchayati Raj Engineering Services is one

such and two categories of posts namely Junior Engineers and

Assistant Engineers are such zonal posts. It may be men-

tioned here that the validity of the Presidential Order is

not being questioned. Therefore we have to proceed on the

basis that all the provisions of the Presidential Order are

valid.

The further and rather the main submission of the re-

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 12 of 15

spondents is that the Presidential Order only lays down the

criteria for claiming eligibility as a local candidate on

the basis of the period of residence or of stay in that

local area and reservations are meant to be made to the

local cadre only in respect of direct recruitment to the

said posts mentioned therein and therefore the power con-

ferred under the Article should be confined only to direct

recruitment. In this context the learned counsel also relied

very much on the expressions used in Article 371D (1) and

(2). The learned counsel also submitted that initially the

Junior Engineers are selected by the Public Service Commis-

sion and are given a ranking and they are allotted to the

local cadre and to that extent that may become a zonal post.

But when it is a question of promotion to the higher post of

Assistant Engineer though shown as a zonal post by virtue of

being included in the local cadre, it should be only on the

basis of the seniority in the Statewide list originally

prepared by the public Service Commission. The learned

counsel very much relied on the expression 'in the matter of

public employment' and the other expressions used in Article

371D (1) and (2).

First we shall consider the submission that the purport

of Article 371D and the Presidential Order in respect of

direct recruitment does not apply to promotion. The expres-

sion 'in the matter of public employment' in clause (1), in

our view, is of wider import. The public employment can be

by way of direct recruitment or by promotion. In The General

Manager; Southern Railway v. Rangachari, [1962] 2 SCR 586

this Court considered the scope of Articles 16 (1), (2) and

(4) and it was observed that Articles 16 (1) and (2) of the

Constitution are intended to give effect to Articles 14 and

15(1) of the Constitution and they arc supplemented to each

other. Regarding the meaning of the word "employment" it is

noted that:

"Article 16 (1) should, therefore, be con-

strued in a broad and general, and not pedan-

tic and technical way, so construed, "matters

relating to employment" cannot mean merely

matters prior to the act of appointment nor

can 'appointment' to any

42

office mean merely the initial appointment but

must include all matters relating to employ-

ment, whether prior or subsequent to the

employment, that are either incidental to such

employment or form part of its terms and

conditions and also include promotion a selec-

tion post.

"Although Article 16(4) which in substance is

an exception to Arts. 16 (1) and 16(2) and

should, therefore, be strictly construed, the

court cannot in construing it overlook the

extreme solicitude shown by the Constitution

for the advancement of socially and education-

ally backward classes of citizens."

It is thus concluded that Article 16(4) authorises the

State to provide for reservation of appointments as well as

selection posts. At this juncture it may be noted that

Article 371D (10) declares that any order made by the Presi-

dent shall have effect notwithstanding anything in any other

provision of the Constitution or in any other law for the

time being in force. Therefore notwithstanding anything

contained in the A.P. Panchayati Raj Engineering Service

Rules, the promotions have to be based on zonal list other-

wise the very object sought to be achieved as per Article

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 13 of 15

371D and the Presidential Order would be defeated. Shri

Sitaramiah, however, laid considerable stress on Article

371D (2) which empowers the President to make an order "in

particular" to specify any part or parts of the State which

shall be regarded as the local area for direct recruitment

in any local cadre. It is submitted that if clauses (1) and

(2) of Article 371D are read together the Presidential Order

can make provision only in respect of appointments by way of

direct recruitment and cannot be applied for promotion also.

But as laid down in Rangachari's case the word "employment"

should be interpreted in a broad and general manner. The

ratio therein should be applied in interpreting the words

"in the matter of public employment" occurring in Article

371D also. Consequently it must be held that Article 371D

and the Presidential Order apply both for direct recruitment

and for promotion in respect of categories specified in the

Third Schedule. Article 371D (2) does not make any departure

from this principle. The words "in particular" therein only

lay emphasis on the aspect of creating local cadres for

different parts of the State for the purpose of direct

recruitment and treat such parts as local areas. This does

not in any manner restrict the scope of Article 371D wherein

it is clearly declared that in the matter of public employ-

ment, the President is empowered to make an order in the

manner stated therein and the public employment cannot but

be interpreted to include promotion also. It therefore

emerges that Article 371D is in general terms and applies to

the public employment as a whole and Article 371D(2) in

particular applies to direct recruitment. It is only comple-

mentary to clause (1) and particularises

43

the matters which an order made under clause (1) provides

for. Any other interpretation would defeat the object under-

lying these two provisions.

The other submission of Shri Sitaramiah, as already

noted, is that even assuming that Rule 2 (a) which came into

existence in 1979 is valid and applies to promotion also

then it can have only prospective effect and all the promo-

tions prior to this Rule should be only on the basis of the

Statewide list. In considering this argument we have to bear

in mind para 13 of the Presidential Order which specifically

lays down that certain appointments and promotions after the

commencement of the Order should be treated as provisional

and the same should be reviewed an readjusted in accordance

with the Presidential Order for the purpos of preparing the

local cadres and allotting to the zones. The learned coun-

sel, however, relied on two judgments of this Court in Y. V.

Rangiah and Others etc. v. J. Sreenivasa Rao and Others

etc., [1983] 3 SCC 284, and N.T. Devin Katti and Others v.

Karnataka Public Service Commission and Others, [1990] 3 SCC

157, in support of his submission that the said Rule cannot

be given retrospective effect and that the promotions should

be made only in accordance with the unamended A.P. Pan-

chayati Raj Engineering Service Rules, 1963. But having

regard to the historical background and the object underly-

ing Article 371D and the Presidential Order and in particu-

lar para 13 of the Order the promotions, if any, made,

should be treated only as provisional. If Rule 2(a) is

viewed from this angle particularly in the light of paras 5

and 13 of the Presidential Order it becomes clear that the

said Rule has to be given retrospective effect so that the

promotions to the junior posts can be brought in conformity

with Article 371D and the Presidential Order. Accordingly

any promotions made should be treated only as provisional

and they should be reviewed and readjusted.

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 14 of 15

This leads us to the question whether the promotions

from the post of Junior Engineer to Assistant Engineer

should be based on zonal seniority list or on the Statewide

seniority list. Rule 2(a) makes it abundantly clear that for

the purpose of recruitment, appointment, promotion, transfer

etc. each zone shall be a separate unit. Para 5 of the

Presidential Order is also to the same effect. When once

each zone is treated as a separate unit for the purpose of

promotion also in respect of zonal posts then by virtue of

Article 371D and the Presidential Order, as observed above,

the promotion from the post of Junior Engineer to the post'

of Assistant Engineer which are both zonal posts, should be

on the basis of the zonal seniority list inasmuch as the

post of Junior Engineer and the next promotion post namely"

Assistant Engineer are included in the local cadre and the

zonal list as we find-in the Third Schedule. With regards

the higher posts which are not included in the local cadre

and which are Statewide posts, it

44

becomes obvious that the Statewide seniority list of the

Assistant Engineers of all zones should be prepared and that

should be the basis of promotion to the post of Executive

Engineer which is not a zonal post. Therefore it emerges

that the directions given by the Tribunal to ensure that no

Junior Engineer is promoted earlier than their seniors in

the Statewide seniority list to the post of Executive Engi-

neer, should be quashed.

Shri Sitaramiah, however, pointed out certain anamolies

if such a principle is to be followed. According to the

learned counsel, if the promotions are to be made only on

the basis of the zonal list than there is every possibility

of some of the seniors in the Statewide list not getting

promotions and the same would result in some of the juniors

becoming seniors which would ultimately affect the promo-

tional avenues for the Statewide higher post like Executive

Engineer. But it must be noted that Article 371D is of

exceptional nature and the object is to provide equal oppor-

tunities in the backward areas in respect of the specified

posts mentioned in the Third Schedule which are included in

the local cadre which thus became zonal posts. As mentioned

in para 5 of the Presidential Order and Rule 2 (a) of the

Engineering Service Rules such zones should be treated as

separate units for the purpose of promotions also. Therefore

there is valid nexus to the object that is sought to be

achieved and even if there is some anamoly it cannot on that

basis be said that such promotions for zonal posts on the

basis of the zonal seniority list amounts to discrimination.

In S.Prakasha Rao and another v. Commissioner of Commercial

Taxes and Others, [1990] 2 SCC 259, a Bench of three Judges

of this Court affirmed the view taken by the Administrative

Tribunal, Andhra Pradesh that the zonal seniority list

prepared pursuant to the initial organisation and creation

of local cadres is to be maintained and such zonal seniority

list is the criteria for promotion.

In the result we hold that all promotions of Junior

Engineers (redesignated as Assistant Executive Engineers) to

the next higher post of Assistant Engineers (re-designated

as Deputy Executive Engineers) have to be made on the basis

of the zonal seniority lists as indicated above and not on

the basis of the Statewide seniority list of Junior Engi-

neers. The promotions made after the Presidential Order

dated 18.11.75 should be treated as provisional and the

Government is permitted to review these promotions on the

basis of zonal seniority lists and re-adjust the same. All

the future promotions from the post of Junior Engineer to

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 15 of 15

the post of Assistant Engineer should necessarily be made on

the basis of the zonal seniority lists. For the purpose of

promotion to the post of Executive Engineer, which is not a

zonal post, a Statewide seniority list of the Assistant

Engineers of all zones should be prepared and such Statewide

seniority

45

list should form the basis of promotion to the post of

Executive Engineer. The State Government is accordingly

directed to prepare such lists i.e. zonal seniority lists of

various zones for the purpose of promotions from Junior

Engineers to Assistant Engineers within the zones and also

Statewide seniority list of the Assistant Engineers of all

zones for the purpose of promotion to the post of Executive

Engineer. Such of the Directions given by the Tribunal in

the matters before us which are contrary to or different

from the above conclusions, remain quashed. The inter-se

seniority and the consequent promotions of respondent Nos. 1

to 5 in Civil Appeal No. 3935/88 as well as the petitioners

in Special Leave Petition (Civil) No. 2150/87 shall be

determined subject to the above directions. All these mat-

ters are disposed of accordingly with the above directions.

In the circumstances of the cases, there will be no order as

to costs.

G.N. Appeals disposed of.

46