Holding

Promotions from Junior Engineer to Assistant Engineer must be made on the basis of zonal seniority lists, as the Presidential Order and Article 371D apply to promotions.

Summary

The case concerned promotions in the Andhra Pradesh Panchayati Raj Engineering Service from Junior Engineer to Assistant Engineer. The Administrative Tribunal had held that such promotions should be based on a statewide seniority list, but the State Government argued that the Presidential Order of 1975, made under Article 371D of the Constitution, created zonal cadres and required promotions to follow zonal seniority. The Supreme Court examined whether Article 371D (and the related Article 3710) and the Presidential Order applied only to direct recruitment or also to promotions. It held that "public employment" under the article includes promotion and that the zonal seniority list must govern promotions for zonal posts. Consequently, promotions made after the Presidential Order are deemed provisional and may be reviewed on the basis of zonal seniority, while promotions to the non‑zonal post of Executive Engineer should use a statewide list of Assistant Engineers. The Court set aside the Tribunal's directions and ordered the State Government to prepare the requisite zonal and statewide seniority lists.

Issues considered

Whether Article 371D (and Article 3710) and the 1975 Presidential Order apply to promotions as well as direct recruitment.
Whether promotions from Junior Engineer to Assistant Engineer should be based on zonal seniority lists or a statewide seniority list.
Whether Rule 2A of the A.P. Panchayati Raj Engineering Service Rules, 1963, can be given retrospective effect for promotions.
Whether the Administrative Tribunal's directions to use the statewide list should be upheld.

Legislation cited

Andhra Pradesh Public Employment (Organisation of Local Cadres and Regulation of Direct Recruitment) Order, 1975
A.P. Panchayati Raj Engineering Service Rules, 1963s. Rule 2A
Constitution of Indias. Article 3710, s. Article 371D
Constitution (Thirty‑Second Amendment) Act

Subjects

Article 371DPresidential Order 1975zonal senioritystatewide senioritypromotionpublic employmentAndhra PradeshPanchayati Raj Engineering ServiceRule 2Alocal cadresconstitutional lawadministrative law

Judgment

/

GOVERNMENT OF ANDHRA PRADESH AND ANR. A
v.

_.}
A. SURYANARAYANARAO AND ORS. ETC.

SEPTEMBER 12, 1991

(S. ~TNAVEL PANDIAN AND KJAYACHANDRA REDDY, JJ.] B

. Constitution of India, 1950: Atticle 371D-Object and scope of-ls-
suance of Presidential Order 1975-Effect on A.P. Pan.chayati Raj En-
.___,.- -
gineering Service Rules, 1963-Rule 2A-Assistant Engineers (Deputy
Executive Engineers )--4Vhether applicable for direct recrnftment only or for
promotion also.
c
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.
D
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
education. As provided therein the President of India made the Andhra
Pradesh Public Employment (Organisation of Local Cadres and E
Regulation of Direct Recruitment) Orders, 1975, by virtue of which the
State was divided into six zones, and local cadres of posts in respect ofthe
local areas were created. In respect of Andhra Pradesh Panchayati Raj
Engineering Service the two such zonal posts were Junior Engineer and
..,.
i Assistant Engineer. Before the Administrative Tribunal, some promotions
made from Junior Engineer to Assistant Engineer were questioned, and
F
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
G
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 H
27
28 SUPREME COURT REPORTS (1991) SUPP. 1 $.C.R.

A matter or promotions from Junior Engineer to Assistant Engineer and not
the Statewide seniority list or Junior Engineers. 1-.

On behalf or the Respondents it was contended that Article 3710 (2)
or the Constitution refers only to direct recruitment and the Presidential
Order made under the said Article cannot make a departure and cannot
B be made applicable 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. Notwithstandint; anything contained in the A.P.
C Panchayati Raj Engineering Service Rules, 1963 the promotions have to
be based on zonal list; otherwise the very object sought to be achieved as
per Article 371D or the Constitution of India and the Presidential Order
issued thereunder would be defeated. The word 'empfoyment' should be
interpreted in a broad and general manner. The expression 'in the mat-
ter of public employment' in clause (1) or Article 371D. is or wider import.
D The public employment can be by Way or direct recruitment or by promo-
tion. The Presidential Order would apply both for direct recruitment and
for promotion in respect of categories specified in the Third Schedule.
Article 3710 (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
E recruitment aild treat such parts as local areas. This does not in any
manner restrict the scope of Article 3710 wherein it is clearly declared
that in the matter of public employment, 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, emer-
ges that Article 3710 is in general terms a~d applies to the public employ-
F ment as whole and Article 3710(2) in particular applies 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]
G . 171e General Manager, Southern Railway v. Rangachari, (1962) 2 SCR
586, relied on.

2.1. Article 3710 ·is of excepiional 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
H local cadres which thus became zonal posts. As mentioned in para 5 of the
A. P. GOVf. v. SURYANARAYANARAO 29

Presidential Order and Rule 2-A of the A.P. Panchayati Raj Engineering A
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. [44 D·E]
B
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 S of the Presidential Order is also to the same effect.
When once each zone is treated as separate unit for the purpose of
pr:omotion also in respect ofzonal posts then by virtue of Article 371D and
the Presidential Order, the promotion from the post of junior Engineer to
c
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 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 D
posts, it becomes obvious that the Statewide seniority list of the Assistant
Engineer of all zones should be prepared and th~t should be the basis of
promotion to the post of Executive Engineer which is not a zonal post.
Therefore, the directions given by the Tribunal to ensure that no Junior
Engineer is promoted earlier than their seniors in the Statewide seniority E
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 ofAndhra Pradesh and Ors. v. V. V.S. Krishnamurthy and F
Ors., (1979] 1 SCR 26, referred to.

3.1. All promotions of Junior Engineers (redesignated as Assi~tant
. Executive Engineers) to the next higher post of Assistant Engineers
(redesignated as Deputy Executive Engineers) have to be made on the
basis of the zonal seniority list and not on the basis of the Statewide
G
seniority list of Junior Engineers. (44 F]

3.2. Having regard to the historical background and the object
underlying Artiele 3710 and the Presidential Order and in particular para
13 of the Presidential Order, the promotions, if any made should be H
30 SUPREME COURT REPORTS [1991) SUPP. 1 S. C.R.

. A 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
B Presidential Order dated 18.11.1975 should be treated as provisional and
the Government is ·penilitted to review these promotions on the basis of
--zonal seniority lists and re-adjust the same. All the future promotions
fr~-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
C 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
D 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 1iibunal 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]

E 3.3. The i11ter-se seniority and the c~nsequent 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 directions, now given. [45 8-C] \-

Y.N.Rangialt and Ors. etc. v. J.Sreenivasa Rao and Ors. etc., [1983)3
F SCC 284; N. T.Devin-Katti andOrs. v. Kamataka Public Service Commission
and Ors,, [1990) 3 SCC 15, referred to.

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

From the Judgment and Order dated 31.12.1987 of the Andhra
G Pradesh Administrative Tribunal, Hyderabad in R.P.No. 967 of 1987.

WITH
S.L.P. (C) No. 9290of1988 with S.L.P (C) No. 2150/87 CMP No. 25521/88
arid C.A.1342/86

H K.Madhava Reddy, C. Sitaramiah, P.P.Rao, G. Prabhakar, K.R.
AP.GOVfv. SURYANARAYANARAO [REDDY,J.] 31

--t Nagaraja, P.K. Rao, Ms. C.K. Sucharita, B. Kanta Rao, K. Ram Kumar, B. A
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 con-
sideration in all these connected cases are confined only to some of the B
posts of civil services of Andhra Pradesh in view of certain. special provi-
sions applicable to these services. Article 3710 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 safeguards in the matter of employment opportunities for residents C
of Telangana region. This Article empowers President to provide by order
for equitable opportunities and facilities for the people belonging to dif-
ferent parts of the State of Andhra Pradesh in the matter of public employ-
ment 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. Accord- D
ingly 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 Engineering Service the two such zonal posts are junior E
Engineer and Assistant Engineer. The main question that arises for con-
sideration 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 F
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 repre-
sentation was disposed of by the Tribunal directing the Government to
redetermine their positions in the Seniority list instead of giving a definite G
declaration as prayed for by them.

Shri K.Madhava Reddy, learned counsel appearing for the State
of Andhrn 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 H
32 SUPREME COURT REPORTS (1991) SUPP. 1 S. CR.

A 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 treat.ed as provisional and that the
State Government 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
B counsel,· for the purpose of promotion to the higher post of Executive ·
Engineer which is not a zonal post, a Statewide seniority list of Assistant
Engineers 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 3710(2) refers
only to direct recruitment and the Presidential Order made under the said
C Article cannot make a departure and cannot be made applicable for
promotions also. On the other hand, it is the Statewide list that should be
the basis for promotions. In support of his submissions he invited our
attention to the provisions of Article 3710 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 ap-
pearing for other set ·of respondents in the appeals filed by the State of
D Andhra Pradesh, submitted that even if either of the lists is to form the >--
basis for promotions his clients are not affected and their promotions are
being unnecessarily delayed. Some of the Engineers of the Andhra Pradesh
Panchayati Raj Engineering Service got themselves impleaded in the ap-
peal filed by the State of Andhra Pradesh and Shri B. Kanta Rao appearing
E on their behalf supported the stand taken by the Government of Andhra
Pradesh.

To appreciate these rival eontentions it becomes necessary to refer
to some of the relevant provisions of Article 3710 as well as the Presiden-
tial Order and some of the notifications made thereunder and the relevant
provisions of the A.P. Panchayati Raj Engineering Service Rules. ·On
F November 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 9f that area. In the year 1957 the Public Employnient (Requirement
G 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 dissatisfac-
tion sometimes in the Telangana area and sometimes in the other areas
of the State and even led to violent agitations. A consensus was arrived
H
A. P. oovr. v. SURYANARAyANARAO [REDDY; JI 33

among several leaders of Andhra Pradesh to make a concerted effort to A
analyse the factors. which have been giving rise to the dissatisfaction and
J.
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· 3710 was introduced. The relevant B
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 oppor-
tunities and facilities for the people belonging to different C
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 clas- D
ses 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 re- E
garded 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 r;on-
. ,, stituted otherwise) under the State Government;
F
(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;
G
xx xx xx

(10) The provisions of this article and of any order made by the
President thereunder shall have effect notwithstanding any-
thing in any other provision of this Constitution or in any other
law for the time being in force." H

.,
34 SUPREME COURT REPORTS [1991] SUPP. 1 S. C.R.

A It may be noted that clause (3) provides for constitution of an Ad-
ministrative Tribunal. Now we may note some of the relevant provisions
in the Presidential Order. In para 2 definitions of the various expressions )._
used in the Order are given. They read thus:
"Para 2. Interpretations: - (1) In this Order, unless the con-
text otherwise requires:-
B
(a) xx xx xx
(b) 'direct recruitment' includes recruitment made on a tem-
porary basis but does not include recruitment made in pur-
suance f)f any scheme approved by the State Government
c providing for the regularisation of the services of persons hold-
ing posts on a temporary basis before the co~encement of
this order;
(c) 'local area' in relation to any local cadre, means'the local
area specified in paragraph 6 for direct recruitu1ent to posts in
such local cadre, and includes, in respect of posts belonging to
D the category of Civil Assistant 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 ( e) 'local cadre' means any local cadre of post under the State
Government organised in pursuance of paragragph 3, or con-
stituted otherwise for any part of the State;
(f) 'local candidate' in relation to any local area, means a can-
didate who qualifies under paragraph 7 as a local candidate in
relation to such local area;
F
(g), xx. xx xx
.~

(h) 'Schedule' means a Schedule appended to this Order;

(i) xx xx xx
G
G) '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
H (I) xx xx xx
.L
"
. A.P.GOVfv. SURYANARAYANA RAO (REDDY,J.) 35

(m) 'Zone' means a zone specified in the Second Schedule A
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 B
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 expirations of the said C
period, the president may by order, require the State Govern-
ment, whenever he considers it expedient so to do, to organise
any classes'of posts in the civil services of, and classes of civil
posts, under the State into different local cadres for different
parts of the State." (Proviso is added as per G.O. Ms. No. 34,
G.A.D. (SPFA), dated 24th January, 1981). D
(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 inco a separate cadre.
Explanation: - For the purposes of this sub-paragraph, sub- E
paragraph (1) of paragraph 6, and sub-paragraph (1) of para-
graph 8, a category 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 belonging 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. F
(3) The posts belonging to each non-gazetted category, other
than those referred to in sub-paragraph (2); in e.ach depart-
ment 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 G
separate cadre.

(5) Notwithstanding anything contained in sub-paragraphs (3)
and (4), the State Government may, where it considers it ex-
pedient to do so and with the approval of the Central Govern-
ment, organise the posts belonging to any of the categories H
36 SUPREME COURT REPORTS [1991] SUPP. 1 S. C.R.

referred to therein, in any department, or any establishment
A
thereof, in two or more continuous zones into a single cadre.

xx xx xx
Para 4. Allotment of persons: - (1) Persons holding posts re-
quired to be organised into local cadres shall be allotted to
B 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 all0tting persons to local cadres due rei;w:fa shall be had
to all or any of the following, namely: -
c (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 seniority, groups;

(c) the length of service of the persons concerned in the part of
D the State for which the local cadre is organised;

( d) knowledge of the persons concerned of the languages ~
I
spoken and the law in force in the part of the State for which
the local cadre is organised;

E (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
F 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
G
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 organised under the
H provisions of this Order made in pursuance of the Proviso to
AP. GOVf. v. SURYANARAYANARAO (REDDY, J.) 37

paragraph 3, to any post which is required to be included in A
such cadre shall be provisional and shall, within a period of
twelve months after such organisation, be reviewed and re-
adjusted in accordance with the provisions of this order.

Explanation: - For the purposes of this paragraph, 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. B
No. 34, GAD (SPF-A) Dept., dated 24th Jan., 1981). .

xx xx xx
THE SECOND SCHEDULE
(See paragraphs 2 (1) (m) and 8 (4)
c
Zones
Zone I Shrikakulam and Visakhapatnam districts.
Zone II East Godavari, West Godavari and Krishna districts.

. '
Zone III
Zone VI
Guntur, Prakasam and Nellore districts.
Chittoor, Cuddapah, Anantapur and Kurnool districts.
D
Zone V Adilabad, Karimnagar, W arangal and Khainmam districts.
Zone VI Hyderabad, Nizamabad, Mahabubnagar, Medak and
Nalgonda districts.
E
THE THIRD SCHEDULE
[See paragraphs 2(1) G) and (4)
Specified Gazetted Categories
Sr.No. Category Name of the Department
(1) (2) (3)
F
xx xx xx
30. Assistant Engi.neers Panchyati Raj Engineering Department
30A. Junior Engineers do

-...,, xx xx xx
40. Junior Engineers Public Works Department (Irrigation)
G
41. Assistant Engineers Public Works Dep~ent (Irrigation)
41. 'Junior Engineers Public Works Department (R&B)
43. Assistant Engineers - do-"

(emphasis suppli~d ) H
38 SUPREME COURT REPORTS (1991) SUPP. 1 S. C.R.

A 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
prospc.cts in public service. Accordingly the Presidential Order was
B 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, comprises of Chittoor, Cuddapah, Anantpur and
Kurnool Districts. As noted above Schedule III enumerates various
C specified gazetted categories and Junior Engineers and Assistant En-
gineers in the Panchayati Raj Engineering Department as well as in the
Public Works Department (Irrigation) 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 Stale of Andhra Pradesh. Under para 3(4) the posts belong-
D ing to each specified category in each department in each zone shall be ~-
organised into a separate cadre. Para 4 provides for the allotment of per-
sons 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
E 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 before any local cadre has been or-
ganised, shall be provisional and shall within a period of twelve months
after such organisation of local cadre, be reviewed and readjusted in ac-
F cordance with the provisions of the Presidential Order.
A.P. Panchayati Raj Engineering Service Rules were framed in t~e
year 1963. These Rules provide for the appointments 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
G 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,
seniority, transfer, promotion and appointment, as full member
H in respect of category 4, Deputy Executive Engineers, each
...
!
AP.GOVI'v. SURYANARAYANA RAO [REDDY,J.] 39

.....-< zone comprising the districts specified against each shall be a A
separate unit:

xx xx xx
Zone IV: Chittoor, Cuddapah, Anantpur and Kurnool dis-
tricts.
xx xX xx B

-"I· - 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; c
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 Recruitment) Order, 1975
shall be filled by drafting persons from the units over which the D
respective 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 Presidential Order would show that the said E
Rule has retrospective effect, therefore the Government is at liberty to
revise the promotions made otherwise then -tm the basis of the zonal
seniority list. But Shri Sitaramiah, learned counsel, s~bmitted that the said
Rule cannot be given retrospective effect and the same applies to vacancies
arising thereafter and therefore the promotions already made should not
be disturbed.
F

It is an admitted fact that there was a Statewide list of Junior En-
gineers before 18.10.75 namely before the Presidential Order was made.
Questioning some of the promotions made by the Government, repre-
.....,,
' sentation petitions were filed before the A.P. Administrative Tribunal. In
G
such matters the Tribunal observed that as a precautionary measure the
juniors 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 H
40 SUPREME COURT REPORTS (1991) SUPP. 1 S. C. R

A directions but the ratio relied upon is that the promotion 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.

B At this juncture it is esse~tial to note the principle and object un-
derlying the zonal system as provided for in the Presidential Order. We
have already noted that the object underlying Article 3710 is to promote -~.

speedy development of the backward areas and to provide equal oppor-
tunities to different areas of the State in the matter of employment etc.
This Article is a special provision which makes departure from the general
C 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 ob-
served as under :
D ."It will be seen from the above extract, that the primary pur-
pose of enacting Article 3710 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 oppor-
tunities" to different areas of the State in the matter of educa-
E tion, employment and career prospects in public service.

(1) To achieve this primary object, Clause (1) of Article 3710
empowers the President to provide by order, "for equitable
oppprtunities and facilities for the people belonging to dif-
ferent parts of the State in the matter of public employment
F and in the matter of education." Clause (2) of the Article is
complementary to Clause (1). It particularises the matters
which an order made under Clause (1) may provide. For in-
stance, 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 residence
for a specified period in the local area, can be made a condi-
tion for recruitment to_.any such local cadre. Thus, Clause (4)
also, directly is designed to achieve the primary object of the
H legislation."
A. P. GOVf. v. SURYANARAYANARAO (REDDY, J.] 41

The Presidential Order was made keeping in view this Object and A
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 mentioned here that the validity of the B
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 respondents 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 C
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 conferred 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 D
selected by the Public· Service Commission 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 in-
cluded 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 E
learned counsel very much relied on the expression 'in the matter of public
employment' and the other expre~ions 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 expression 'in the matter of public employment'
F
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 are supplemented to each other. G
Regarding the meaning of the word "employment" it is noted that :
"Article 16 (1) should, therefore, be construed in a broad and
general, and not pedantic and technical way, so construed,
"matters relating to employment" cannot mean merely matters
prior to the act of appointment nor can 'appointment' to any H
42 SUPREME COURT REPORTS (1991) SUPP. 1 S. C. R

A office mean merely the initial appointment but must include all
matters relating to employment, whether prior or subsequent
to the employment, that are either incidental to such employ-
ment or form part of its terms and conditions and also include
promotion a selection post.

"Although Article 16(4) which in substance is an exception to
B Arts. 16 (1) and 16(2) and stiould, therefore, be strictly con-
strued, the c.ourt cannot in construing it overlook the extreme
-f-···
solicitude shown by the Constitution for the advancement of
socially and educationally backward classes of citizens."
It is thus concluded that Article 16(4) authorises the State to provide
C for reservation of appointments as well as selection posts. At this juncture
it may be noted that Article 3710 (10) declares that any order made by
the President 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
D based on zonal list otherwise the very object sought to be achieved as per
Article 3710 and the Presidential Order would be defeated. Shri
Sitaramiah, however, laid considerable stress on Article 3710 (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)
E and (2) of Article 3710 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 3710 also. Conse-
F quently it must be held· that Article 3710 and the Presidential Order apply
both for direct recruitment and for promotion in respect of categories
specified in the Third Schedule. Article 3710 (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 3710
G wherein it is clearly declared that in the matter of public employment, 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 3710· is in general terms and applies to the
public employment as a whole and Article 3710(2) in particular applies to
direct recruitment. It is only complementary to clause (1) and particularises
H
A. P. GOVI'. v. SURYANARAYANARAO [ REDDY,J.] 43

the matters which an order made under clause (1) provides for. Any other A
interpretation would defeat the object underlying these two provisions.

The other submission of Shri Sitaramiah, as already noted, is that
even assuming that Rule 2 (a)° which came into existence iii 1979 is valid
and applies to promotion also then it can have only prospective effect and
all the promotions 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 B
13 of the Presidential Order which specifically lays down that certain ap-
pointments 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 counse~ however,
relied on two judgments of this Court in Y.V. Rangiah and Others etc. v. C
!. Sreenivasa Rao and Others etc., [1983] 3 SCC 284, and N.T. Devin Katti
and Others v. Kamataka 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 ac-
cordance with the unamended A.P. Panchayati Raj Engineering Service
Rules, 1%3. But having regard to the historical background and the object D
underlying Article 371D and the Presidential Order and in particular 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 E
Presidential Order. Accordingly any promotions made should be treated
only as provisional and they should be reviewed and readjusted.

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 abundant- F
ly 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 3710 and the Presideptial Order, as observed
above, the promotion from the post of Junior Engineer to the post of G
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 20nal 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 H
44 SUPREME COURT REPORTS (1991) SUPP. 1 S. C. R

A becomes obvious th;it the Statewide seniority list of the Assistant Engineers >-·
of all zones should be prepared and that should be the basis of promotion
t~ the pest 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 Engineer, should be quashed. ·
B
Shri Sitaramiah, however, pointed out certain anamolies if such a
principle is to be followed. According to the learned counsel,. if the promo-
tions 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 promo-
tions and the same would result in some of the juniors becoming seniors
C which would ultimately affect the promotional avenues for the Statewide
higher post like Executive Engineer. But it must be noted that Article
3710 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 inchided in the local cadre which thus
became zonal posts. As mentioned in para 5 of the Presidential Order and
D 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 1.0 discrimina-
tion. In S.Prakasha Rao· 011d another v. Commissioner of Commercial Taxe::
E and Others, [1990) 2 SCC 259, a Bench of three Judges of this Court af ·
firmed the view taken by the Administrative Tribunal, Andhra Pradesh thaL
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.

F In the result we hold that all promotions of Junior Engineers (re-
designated as Assistant Executive Engineers) to the next higher post of
Assistant Engineers (re-designated as Depµty 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 Engineers. The
promotions made after the Presidential Order dated 18.11.75 should be
G treated as provisional arid 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 En-
gineer, which is not a zonal post, a Statewide seniority list of the Assistant
H Engineers of all zones should be prepared and such Statewide seniority
A. P. GOVT. v. SURYANARAYANARAO [REDDY, J.) 45

list should form the basis of promotion to the post of Executive Engineer. A
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 pur-
pose of promotion to the post of Executive Engineer. Such of the Direc-
tions given by the Tribunal in the matters before us which are contrary to B
or different from the above conclusions, remain qua~hed. 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 matters are disposed of accordingly with the above directions.
In the circumstances of the cases, there will be no order as to costs. C
G.N. Appeals disposed of.