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Supreme Court of India

DIRECTOR GENERAL GEOLOGICAL SURVEY OF INDIAversusGEOLOGICAL SURVEY OF INDIA EMPLOYEES ASSOCIATION

Citation
1991 INSC 148
Decided
11 July 1991
Disposal
Appeal(s) allowed

Holding

The merger of the Exploration Wing of the Indian Bureau of Mines with the Geological Survey of India was effected on 4 February 1969, not on 1 January 1966, and the 1966 correspondence only transferred administrative control.

Summary

The case concerned the merger of the Exploration Wing of the Indian Bureau of Mines (IBM) with the Geological Survey of India (GSI). Employees of IBM claimed that the merger took effect on 1 January 1966, seeking promotion and seniority benefits, while the Government argued that the actual merger occurred on 4 February 1969. The Supreme Court examined letters dated 1 December 1965, 28 June 1967 and 4 February 1969, concluding that the 1966 letter only transferred administrative control, whereas the later letters effected the true merger of posts and seniority. Consequently, the provisional seniority list and other documents prepared on the basis of a 1966 merger were held not to reflect the Government’s decision. The Court set aside the High Court judgments that had treated the merger as having occurred in 1966 and allowed the appeals. No costs were awarded.

Issues considered

  • The correct date of merger of the Exploration Wing of IBM with GSI
  • Whether the letter dated 1 January 1966 constitutes a merger or merely a transfer of administrative control
  • Whether the provisional seniority list and statement of introduction are evidence of the merger date
  • The impact of the merger date on promotion and seniority of IBM employees

Subjects

mergerseniorityadministrative controlpromotioncivil servicedepartmental reorganisationGeological Survey of IndiaIndian Bureau of Mineslettersinter‑seniority

Judgment

 DIRECTOR GENERAL GEOLOGICAL SURVEY OF INDIA
                                                                           A
                  AND ORS.
                                   v.
       GEOLOGICAL SURVEY OF INDIA EMPLOYEES
                   ASSOCIATION.

                            JULY 11, 1991                                  B

 [K. JAGANNATHA SHETTY AND YOGESHWAR DAYAL, JJ.l

      Civil Service-Exploration Wing of the Indian Bureau of Mines
and Geological Survey of India-Merger-Whether with effect from
1.1.1966 or from 4/6.2.1969--Provisional seniority list and statement of
introduction to the compilation-Whether constitute proof of merger.
                                                                           c
      In Civil Appeal No. 855(N) of 1979 and Civil Appeal No. 2665 of
1991 the issne raised was common and relating to the date of merger of
the two departments of the Government of India, in the field of mines
and minerals, namely (i) Exploration Wing of the Indian Bnreau of          D
Mines (IBM) and (ii) Geological Survey oflndia (GSI).

      Between I. I. 1966 to 4. 2.1969 thirty nine Lower Division Clerks
belonging to GSI were promoted as Upper Division Clerks against the
vacancies that arose in the GSI. They were juniors to their counterparts
in the IBM. Being aggrieved by the said promotions, the respondents        E
who originally belonged to the IBM, preferred Special Civil Application
in the Bombay High Court for setting aside the seniority list and for a
direction to consider their cases of promotion with effect from
I January, 1966 contending that the merger of the two departments took
place with effect from I January 1966 and not from 4 February 1969
and therefore, there cannot be two separate channels of promotions         F
from I January 1966--one from the employees of the Exploration Wing
of IBM and another for the employees of GSI.

      The appellants contended that the Officers of GSI were promoted
on the gronnd that the actual merger took place not on 1 January 1966
but on 4 February 1969.                                                    G

     The High Court allowed the petition against which Civil Appeal
No. 855(N) of 1979 has been preferred.

    A Senior Technological Assistant (Geology) of the erstwhile IBM
moved the Karnataka High Court for similar relief contending inter         H

                                  893
    894                    SUPREME COURT REPORTS               [1991] 2 S.C.R.

A   alia that his case ought to have been considered for promotion in the
    merger cadre with effect from I January 1966. The Karnataka High
    Court also allowed his claim with a direction to consider him for prom11-
    tion with effect from I January 1966 in the merged cadre. That decision
    was not implemented by the GSI. In the contempt proceedings taken for
    disobedience of the judgment, the High Court allowed six weeks time
B   for compliance, against which, SLP(C) No. 4906 of 1991 has been
    preferred.

          Respondents relying on the letters dated IO December 1965 and 29
    November 1966 contended in support of the decision of the High Courts
    that the merger took place on I January 1966, whereas the appellants
    took assistance from the terms of the letter dated 4/6 February 1969 in
c   support of the counter plea.

          Allowing the appeals, this Court,

          HELD: I. The statements in the letter make it abundantly clear
D   that it was only administrative control of the relevant wings of IBM that
    were transferred to GSI with effect from I January 1966. The letter
    does not refer to the decision of merger of the two departments. [902E]

          2. The decision taken on the merger of the posts was com-
    municated by subsequent letters dated 28 June 1967 and 4/6 February
E   1969. By letter dated 28th June 1967 the Government communicated
    the sanction of merger of class I & II posts in the drilling divisions of
    Exploration Wing of IBM and GSI (Proper) with immediate effect. The
    letter also contains certain instructions to department about service
    conditions and seniority of persons in the amalgamated cadres of class I
    & II posts. The decision with regard to merger in respect of other
F   categories of posts which include are concerned in these cases is con-
    tained in the letter dated 4/6 February 1969. [902F-G]

          3. The letter dated 4/6 February 1969 further provides that the inter-se
    seniority of the incumbent in the merged cadres will be governed in
    accordance with the principles laid down in the earlier letter dated
G   28th June 1967. The merger/revision of the scales of pay ·does not
    involve any change in the nature of duties of the respective posts. The
    Officers concerned in the merged cadre will be given options in writing
    for opting the new scales of pay in the merged cadre. In case an indi-
    vidual concerned fails to exercise the option within the time limit, he
    will be treated to have accepted the new scale of pay. It will be apparent
H   from the terms of the letter dated 4/6 February 1969 that the posts
DIRECTOR GENERAL v. EMPLOYEES ASSOCIATION {SHETTY, J.]                    895

referred to in the letter were merged with GSI wih effect from 4
                                                                                 A
February 1969, if such a decision had been taken on I January 1966, the
letter dated 4/6 February 1969 would be unnecessary and uncalled for. [903A-C]

      4. Provisional seniority list and the statement of introduction to
the compilation are no evidence of the date of merger do not reflect the
decision of the Govt. oflndia. [905E]                                            B
      CIVIL APPELLATE JURISDICTION: Civil Appeal No. 855
 (N) of 1979.
     From the Judgment and Order dated 22nd October, 1975 of the
 Bombay High Court in Special Civil Application No. 985 of 1969.
                               WITH
     Civil Appeal No. 2665 of 1991.
                                                                                 c
     M. Chander Sekhar, Additional Solicitor General (NP), A.
 Subba Rao and C.V. Subba Rao for the Appellants.
     R.K. Garg, R.P. Singh, Rakesh Khanna, P.C. Kapur and Raj
 Kumar Gupta for the Respondents.                                                D

      The Judgment of the Court was delivered by

       K. JAGANNATHA SHETTY, J. In the field of mines and
 minerals, the Government of India has two departments, (i) Explora-
 tion Wing of the Indian Bureau of Mines (IBM) and (ii) Geological E
 Survey of India (GS!). The GS! is responsible for geological mapping
 and exploratory drilling calculated to delineate mineralised zones in
 the country. The IBM counducts detailed probing operations in
 selected blocks of mineralised areas. The functions of these two
 departments were found to be overlapping. The Government of India,
.therefore, decided to merge the Exploratory Wing of IBM with the F
 GS! to eliminate overlapping works and rationalise the functions of
 the two departments. To accomplish this purpose, different cadres of
 the Exploration Wing of IBM were merged with the GS! from diffe-
 rent dates. There is no dispute that the posts concerned in these cases
 also came to be merged with the GSI. The question, however, for
 consideration is about the date of that merger; whether it was from 1 G
 January, 1966 or from any subsequent date. The Government of India
 contends that the merger took place on 4/6 February 1969 while the
 contesting respondents claim that it was with effect from 1 January
 1966.

      The dispute as to the date of merger has. arisen because of the            H
    896                  SUPREME COURT REPORTS              [1991] 2 S.C.R.

  following circumstances. That between the period from 1 January 1966
A to 4 February 1969, thirty nine persons in the cadre of Lower Divison
  Clerks belonging to GSI were promoted as Upper Division Clerks
  against the vacancies that arose in the GSI. They were apparently
  juniors to their counterparts in the IBM. Being aggrieved by the said
  promotions, the Association of the Officers who originally belonged to
B the IBM preferred Special Civil Application No. 985/69 at Nagpur
  Bench of the Bombay High Court for setting aside the seniority list and
  for a direction to consider their cases of promotion with effect from 1
  Janua_ry 1966. It was contended before the High Court that the merger
  of the two departments took place with effect from 1 January 1966 and
  not from 4 February 1969 and therefore, there cannot be two separate
  channels of promotions from 1 January 1966-one for the employees of
c the Exploration Wing of IBM and another for the employees of GSI.
  The Government of India sought to justify the promotions exclusively
  given to the Officers of GSI between the period from 1 January 1966 to
  4 February 1969 on the ground that the actual merger took place not
  on 1 January 1966 but on 4 February 1969. The High Court, however,
D did not accept the submission of the Government of India. The High
  Court summarised its conclusion thus:

               "It is also to be noted that after 1.1.1966 the petitioners did
               not get any promotion or were not considered for promo-
               tion by the Indian Bureau of Mines because they were
E              treated under the administrative control of Geological
               Survey of India. If the contention of the respondents is
               accepted then it will have to be held that for three years the
               cases of the petitioners cannot be considered by the
               Geological Survey of India and they were not considered
               by the Indian Bureau of Mines because they were not
F              under the administrative control of Indian Bureau of
               Mines. This will result into absurdity and, therefore, such a
               contention cannot be accepted. We are, therefore, inclined
               to hold on consideration of the annexures produced along
               with this petition that the merger in the two wings has
               taken place on 1.1.1966. Therefore, the seniority of Upper
G              Division Clerks will have to be considered and made in this
               light after taking into consideration the fact that the
               petitioners merged and became the part of Geological
               Survey of India on 1.1.1966 and, therefore, for the purpose
               of counting their seniority, their past service rendered with
               the Indian Bureau of Mines will have to be treated as
H              service rendered with the Geological.Survey of India. This
DIRECTOR GENERAL v. EMPLOYEES ASSOCIATION [$HETTY, J.]              897

           is the cq_rrect effect of the letter R-2 relied upon by the
                                                                          A
           respondents. We, therefore, direct the respondents Nos. l,
           2, & 4 to prepare a fresh seniority list in the light of the
           observations made above as if the merger has taken place
           on 1. 1.1966 and after determining inter seniority give an
           appropriate relief to the petitioners."
                                                                          B
     Civil Appeal No. 855(N) of 1979 has been preferred against the
above decision of the Bombay High Court.
       A Senior Technological Assistant (Geology) of the erstwhile
IBM moved the Karnataka High Court for similar relief contending
inter-alia that his case ought to have been considered for promotion in
the merged cadre with effect from 1 January 1966. The Karnataka
High Court also allowed his claim with a direction to consider him for
                                                                          c
promotion with effect from 1 January 1966 in the merged cadre. That
decision was not implemented by the GSI, perhaps on the ground that
the dispute as to the date of merger is already pending consideration
before this Court. In the contempt proceedings taken for disobedience
of the judgment, the High Court however, did not accept that excuse       D
put forward by the GSI and Government of India, but allowed six
weeks time for compliance. SLP(<;) No. 4906 of 1991 has been prefer-
red against that direction issued by the Karnataka High Court. Since
the issue raised in both the matters is common, we grant special leave
in this case also.
      The issue as to the date of merger of the Exploration Wing of E
IBM with the GSI turns on the contents of some of the letters written
by the Government of India to the Director General of GSI. Both the
parties depend upon the same letters but with different contentions
and constructions. We will now draw attention to the letters one by
one.                                                                  p
           (i) "LETTER DATED IO DECEMBER 1965 GOVERN-
           MENT OF INDIA MINISTRY OF STEEL AND
           MINES, DEPARTMENT OF MINES AND METALS.

           To
                                                                          G
           The Director,
           Indian Bureau of Mines,
           Nagpur.

                 (For the attention of Sh. K.N. Murthy,
                                                                          H
                 Deputy Director, IBM)
    898              SUPREME COURT REPORTS            [ 1991] 2 S.C.R.

A         Sub: Reorganisation of the IBM and GSI.

           Sir,

                  xxxxx   xxxxx      xxxxx
B               After careful consideration of all these matters and in
          consultation with the Director General, GSI and IBM, the
          Government have decided to transfer the following from
          the IBM to the administrative control of the GS! w.e.f. 1st
          January 1966:

c         (i) All the posts and personnel in the Prosp~cting Drilling
          and Mining Divisions of the Bureau will be transferred to
          the GS! as detailed in Appendices I & II.

          (ii) The workshop and Mineral Technology and Physical
          Analysis Laboratories will be transferred to the GSI along
D         with the posts in these laboratories as detailed in Appendix
          II.

          (iii) The posts in the common cadres in the Administration
          and Accounting Divisions as have been divided on the basis
          of actual· work load as detailed in Appendix II. The
E         personnel holdfog the posts will be allocated to the GS! and
          the IBM on the basis of options indicated by them, the
          principal guideline being exigency of public service.

          (iv) The equipment, vehicles and stores, will be transferred
          by the IBM to the GS! according to the distribution made
F         on the basis of equipment etc. being required by the
          organisations as per statement in Appendix III.

          2. The headquarters of the Prospecting, Drilling and
          Mining Divisions, as also the workshop and the Mineral
          Technology and Physical Analysis Laboratories, which are
G         being transferred from the Bureau to the GS!, will con-
          tinue to be at Nagpur. On transfer of these Divisions, these


                                                                          ~
          will work as separate entity of the GS! under the adminis-
          trative control of the DG, GS!. Headquarters of the
          Mineral Technology Laboratory at Delhi will continue to
          remain at Delhi.                                                '
H

                                                                          j
    DIRECTOR GENERAL v. EMPLOYEES ASSOCIATION [SHETTY, J.I          899

             3. The service conditions of the personnel to be transfer-   A
             red to the GSI such as status, emoluments, seniority etc.
             will be governed by the existing recruitment rules until
'            further orders.

             4. The IBM wifl be responsible for the administration of
                                                                          B
             Mines (Control and conservation) collection of statistical
             data of minerals and Ore Dressing Laboratory as here to
             before .
•            5. With effect from 1.1.1966 the GSI will provide in their
             budget the expenditure connected with the work transfer-
             red to them from the IBM and put up a Supplementary          c
             demand. Correspondingly IBM wifl surrender the (equiva-
             lent) amount from its budget."

              (ii) LETTER DATED 28 JUNE 1967 GOVERNMENT
              OF INDIA MINISTRY OF STEEL MINES & METALS,
                                                                          D
              DEPARTMENT OF MINES AND METALS.

             To
             The Director General,
             Geological Survey of India,
             27, Chowringhee Road,
                                                                          E
             Calcutta-13

             Sub: Merger of Class I and II posts in the Drilling Divi-
             sions of the Geological Survey of India (Proper and Explo-
             ration Wing) and combined seniority lists.
                                                                          F
             Sir,

                   In partial modification of the Ministry of Steel and
             Mines (Department of Mines & Metals) letter No. 20/4/65-
             MIII dated 10 December 1965, I am directed to convey
             sanction of the Government to merge class I and II posts in
                                                                           G
             the Drilling Divisions of the Exploration Wing and the
             Geological Survey of India (Proper) with immediate effect.
             Heretofore, the service conditions of the class I and II
             officers of Drilling category of the merged Drilling Division
             would be governed in accordance with the revised recruit-
              ment rules which are under issue separately.                H
    900              SUPREME COURT REPORTS            [1991] 2 S.C.R.

          2. In drawing up the combined seniority lists of the officers
A
          in different grades in the amalgamated cadres of Class I
          and II posts para 3 of the annexure tot.he Ministry of f-T~··
          Affairs O.M. No. 9/11/55-RPS dt. 22.12.1958 accmc -
          which permanent officers of the grade are senior to
          temporary officiating officers of that grade, is not applic-
B         able. In such cases, seniority is determined with reference
          to the date of continuous appointment to that grade on a
          regular basis in accordance with the other principles pre-
          scribed in the Ministry of Home Affairs O.M. No. dt.
          23.12.1959 referred to above lists so drawn may please be
          sent for approval of Government.
c                                                     Yours faithfully,

                                                            Sd/-
                                               (A. Sethumadhavan)
                                Under Secretary to the Govt. of India
D
          (iii) LETfER DAIBD 4/6 fEBRUARY 1969 GOVERN-
          MENT OF INDIA MINISTRY OF SIBEL, MINES AND
          METALS (DEPARTMENT OF MINES AND METALS)

          No. 1/16/68-MIII
E
          To

          The Director General,
          Geological Survey of India,
          Calcutta.
F
          Sub: Merger of Posts/scales of pay in the GS! (Proper) and
          the Exploration Wing transferred from the Indian Bureau
          of Mines to the Geological Survey of India.

          Sir.
G               I am directed to invite your attention to this
          Ministry's letter No. 3/17 /67-MIII, dated 28.6.1967 and to
          say that the President is pleased to sanction merger of the
          posts and to prescribe the scales of pay for the merged
          cadres as shown in the enclosed statement with immediate
          effect. Orders regarding merger of the remaining posts will
H
          be issued separately.
    DIRECTOR GENERAL v. EMPLOYEES ASSOCIATION (SHE1TY, J.I                901

               2. The inter-seniority of the incumbents in the merged
               cadres will be governed in accordance with the principles        A
               laid down in para 2 of the Ministry's letter referred to
               above.

               3. The merger/revision of the scales of pay does not
               involve any change in the nature and duties of the respec- B
               tive posts. The fixation of pay in the revised scales of pay
               may be done under FR-23, read with audit instruction 1
               under FR-22.

               4. The officers concerned should be asked to exercise their
               option in writing so as to reach the authority concerned
               within four months of the issue of this letter, provided that: C

                     (i) in the case of a Government servant who is on that
               date out of India on leave, deputation or foreign service or
               active service, the said option shall be exercised in writing
               so as to reach the prescribed authority within four months D
               of the date of his taking over charge of his post in the GSI
1
               and

                     (ii) Where a Government servant is under suspen-
               sion the option may be exercised by him within four months
               of the date of his return to duty, if that date is later than the E
               date prescribed here.

          In case the individual concerned fails to exercise the option
    within the time limit, he will be treated to have accepted·the new scale
    of pay."
                                                                                F
       · In between these correspondence, the Government of India
    wrote one more letter to the Director General of GSI. It was dated 29
    November, 1966which will be referred later.

          Mr. Garg and Mr. Vaidyanathan, counsel for the contesting
    respondents rely on the first letter dated JO December 1965 and also G
    on the subsequent letter dated 29 November 1966 in support of the
    decision of the High Courts that the merger took place on 1 January
    1966. Mr. Subba Rao, counsel for the Union of India wants to take
    assistance from the terms of the letter dated 4/6 February 1969 in
    support of the counter plea. It may be significant to note that the letter
    dated JO December 1965 does not indicate the date of merger. It is H

                                    •
    902                   SUPREME COURT REPORTS             [1991] 2 S.C.R.

A stated therein that after consultation with the Director General of GSI
  and IBM, the Government has decided to transfer to the administra-
  tive control of GSI with effect from I January 1966 the posts and
  personnel in the prospecting drilling and mining divisions of the Bureau
  with the workshop, mineral technology and physical analysis labora-
B tories. The letter further states that the posts in the common cadres in
  the administration and accounting divisions as have been divided on
  the basis of actual work load (as detailed in Appendix II) with the
  personnel holding the posts will be allocated to GS! and IBM on the
  basis of options indicated by them. The equipment, vehicles and stores
  will be transferred by IBM to GSI according to the distribution made
  as per requirements of the two organisations. The most important
C statements in the letter are these: (i) on transfer of the divisions they
  will however work as separate entity of the GSI under the administra-
  tive control of the Director General, GS! and (ii) the service condi-
  tions of the personnel to be transferred to GS! such as status, emolu-
  ments, seniority etc. will be governed by the existing recruitment rules
D until further orders. It is further directed in the letter that with effect
  from 1 January 1966, the GSI will provide in their budget the expendi-
  ture connected with the work transferred to them from the IBM and
  put up a supplementary demand. Correspondingly, IBM will surrender
  the (equivalent) amount from the budget. These statements in the
  letter make it abundantly clear that it was only administrative control
  of the relevant Wings of IBM that were transferred to GS! with effect
E
  from 1 January 1966. The letter does not refer to the decision of
   merger of the two departments.

          The decision taken on the merger of the posts as rightly submit-
    ted by Mr. Subba Rao was communicated by subsequent letters dated
    28 June 1967 and 4/6 February 1969. By letter dated 28 June 1967 the
F
    Government communicated the sanction of merger of class I & II posts
    in the drilling divisions of Exploration Wing of IBM and GS! (Proper)
    with immediate effect. The letter also contains certain instructions to
    department about service conditions and seniority of persons in the
    amalgamated cadres of class I and II posts. The decision with regard to
    merger in respect of other categories of posts is contained in the letter
G   dated 4/6 February 1969. Thereunder it is expressly stated that "the
    President is pleased to sanction merger of the posts and to prescribe
    the scales of pay for the merged cadres as shown in the enclosed
    statement with immediate effect~" The categories of posts set out in the
    statement accompanying the. letter include the posts with which we are
    concerned in these cases and there is no dispute on this matter.
H


                                           •
DIRECTOR GENERAL v. EMPLOYEES ASSOCIATION (SHETTY, J.]               903

     The letter dated 4/6 February 1969 further provides that the
                                                                            A
inter-se seniority of the incumbents in the merged cadres will be
governed in accordance with the principles laid down in the earlier
letter dated 28 June 1967. The merger/revision of the scales of pay
does not involve any change in the nature of duties of the respective
posts. The officerS'Concerned in the merged cadre will be given options
in writing for opting the new scales of pay in the merged cadre. In case    B
an individual concerned fails to exercise the option within the time
limit, he will be treated to have accepted the new scale of pay. It will
be apparent from the terms of the letter dated 4/6 February 1969 that
the posts referred to in the letter were merged with GS! with effect
from 4 February 1969. It may be remembered that if such a decision
had been taken on 1 January 1966, as contended for the respondents,
the letter dated 4/6 February 1969 would be unnecessary and uncalled C
for.

     Counsel for the respondents however, placed strong reliance in
support of the counter point on the letter dated 29 November 1966
which reads as follows:                                             D

                                          GOVERNMENT OF INDIA

            No. 8/39/66-MIII         NEW DELHI 29TH NOV. 1966

           To                                                               E

            The Director General,
            Geological Survey of India,
            27, Chowringhee Lane,
            Calcutta 13
                                                                            F
            Sub:- Absorption· of Shri B.K. Chatterjee, Stenographer
            (Selection Grade) of the Indian Bureau of Mines, in
            Geological Survey of India (Exploration Wing).

            Sir,
                                                                            G
                  I am directed to refer to your letter No. 832/8 (N)/
            115/65/ 15 dated 4.11.1966 on the subject mentioned and to
            say that the transfer in question cannot be termed as trarn;-
            fer from one department to the other department, since it
            place on a result of the reorganisation of the Indian Bureau
            of Mines and transfer was effected on the recommenda-           H
    904                   SUPREME COURT REPORTS            [1991] 2 S.C.R.

               tions of the Merger Committee when there was a vacancy
A
               in the GSI. The transfer was made in the public interest and
               it is considered not necessary to approve the transfer in
               question in relaxation of the recruitment Rules as pro-
               posed. The transfer of Shri Chatterjee may be treated as in
               order.
B
                     Further, the inter-seniority of Stenographer and
               other categories of posts transferred from the Bureau to
               the Geological Survey of India as a result of the reorganisa-
               tion of the former may be decided taking into account the
               fact that such transfers have been made in the public
               interest and such cases may be examined on the basis as if
c              the individual concerned were originally appointed in the
               Geological Survey of fodia.

                                                          Yours faithfully,
                                                                       Sd/-
D                                                    (A. Sethumadhavan)
                                          Under Secy. to the Govt. oflndia

          We do not find any support from this letter to the submission of
    the respondents. The letter concerns with the transfer of one Steno-
    grapher called Shri B .K. Chatterjee from IBM to the GSI. The trans-
E   fer was made in the public interest. Consequently, it was held that the
    person trensferred was entitled to seniority as if he were originally
    appointed in the GSI. That is a normal incident of transfer from one
    department to another and there is nothing strange in it. But it may be
    noted that the respondents were not transferred from IBM to GSI with
    effect from 1 January 1966. They were neither transferred to GSI, nor
F   their posts were transferred to GSI with effect from 1 January 1966.
    They were only brought under the administrative control of the
    Director General of GSI. The result is that the posts and personnel
    remained in their own department and they would continue to be
    governed by their own service conditions. This would indeed be the
    consequence of one department being brought under the control or
G   supervision of another departmental head. This point has also been
                                                                               .
    made clear in the letter dated I January 1966 in which it has been
    provided "that the service conditions of the personnel to be transfer-
    red to the GSI such as status, emoluments, seniority etc. will be gover-
    ned by the existing recruitment rules until further orders". In other
    words, the service conditions which the respondents were entitled to,
H   in their parent department would continue to be available to them
    until further orders.
DIRECTOR GENERAL v. EMPLOYEES ASSOCIATION [SHETTY, J.I               905

      The Bombay High Court has however, observed that it will lead         A
to absurdity if the contesting respondents are not considered for pro-
motion in the GSI from 1 January 1966 since they could not get any
promotion in or were not considered for promotion by IBM because
they were treated under administrative control of GSI. It is difficult to
accept this view. This conclusion is based more on equitable considera-
tion than on law. It is the result of failure to focus on the difference
                                                                            B
between the terms of letters dated l January 1966 and 4/6 February
1969. It may be emphasised that non-consideration of the contesting
respondents for promotion in the IBM during the period from 1966 to
 1969 even assuming it to be true is however no ground for them to
seek promotion in GS!. They must seek their promotion during the
interregnum only in their parent department.                                c
      Reference is made to the combined provisional seniority list of
persons in class III cadres of IBM and GSI prepared as on 1 December
1968. It is submitted that if the merger took place with effect from 4
February 1969 there was no necessity for GSI to prepare the provi-
sional seniority list of officers of the combined cadre as on l December    D
1968. Reference is also made to the "Introduction to the Compilation
Vol. 100 Part I, Records of the GSI", in which it is mentioned that on I
January 1966, the Mining Divisions of the IBM have been merged with
the GSI. The said provisional seniority list and the statement of intro-
duction to the compilation, in our opinion, are no evidence of the date
of merger and indeed, they do not reflect the decision of the Govern-       E
ment of India which we have earlier discussed.

      For the foregoing reasons, we accept the appeals and set aside
the impugned judgment and order.

     In the circumstances of the case, however, there should not be         F
any order as to costs.

V.P.R.                                                 Appeals allowed.


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