Holding

The Supreme Court held that the appeal is maintainable and that the Government of NCT Delhi possessed the jurisdiction to repatriate the deputed officers, setting aside the Tribunal’s order.

Summary

The Government of the National Capital Territory (NCT) of Delhi ordered the repatriation of several Joint Account Officers and Assistant Account Officers who were on deputation from the Ministry of Urban Development and posted in the Delhi PWD. The officers, represented by the All India Central Civil Accounts Association and others, challenged the order, arguing that the PWD of NCT Delhi formed part of the Central Public Works Department (CPWD) and thus the repatriation was beyond the Delhi government's jurisdiction. The Union of India supported this view, contending that all posts in NCT Delhi are central services governed by Article 309(2) and the Central Civil Services Rules. The Central Administrative Tribunal held the repatriation invalid, but the Supreme Court allowed the appeal, holding that the appeal under Article 136 is maintainable despite Section 52(b) of the NCT Delhi Act, and that the Delhi Administration Accounts Service Rules 1982 create a separate cadre, giving the NCT Delhi government authority to repatriate or absorb the officers. Consequently, the Tribunal’s order was set aside and the NCT Delhi government was directed to implement the repatriation or absorption within three months.

Issues considered

The maintainability of an appeal under Article 136 when Section 52(b) of the Government of NCT Delhi Act, 1991, requires suits to be instituted by the Government of India.
Whether posts in the PWD of NCT Delhi are central services under the Union Government or part of the Delhi Administration Accounts Service created by the 1982 Rules.
The jurisdiction of the Government of NCT Delhi to repatriate officers on deputation from the Ministry of Urban Development.
The interpretation of Articles 239, 239AA and 309 of the Constitution in relation to service administration in a Union Territory.

Legislation cited

Central Civil Services (Classification, Control and Appeal) Rules, 1965
Constitution of Indias. Article 136, s. Article 239, s. Article 239AA, s. Article 309
Government of India (Allocation of Business) Rules, 1961
Government of National Capital Territory of Delhi Act, 1991s. 52(b)

Subjects

Union TerritoryService LawRepatriationDeputationDelhi Administration Accounts ServiceArticle 239Article 309JurisdictionMaintainabilityArticle 136

Judgment

A GOVERNMENT OF NCT, DELHI
v.
ALL INDIA CENTRAL CIVIL ACCOUNTS,
JAO'S ASSOCIATION AND ORS.

OCTO_BER 3, 2001
B
[S. R~JENDRA BABU AND DORAISWAMY RAJU, JJ.]

Service Law :

Employees of Central Government-Deputation on posts in Government
c of National Capitai Territory (NCT) Delhi-Repatriation of the deputed
employees to parent department-Repatriation challenged-Tribunal held
repatriation not correct, since NCT, Delhi being a Union Territory, all the posts
and services under its control would be central services-On appeal-Held,
repatriation justified-The posts under NCT, Delh.i could not be said to be part
D ofparent department, as NCT, Delhi is a separate entity-Delhi Administration
Accounts Service Rules, 1982-Rules 5 and 7-NCT Delhi (Allocation of
Business) Rules, 1993-Government of India (Allocation of Business) Rules,
1961-Government of National Capital Territory of Delhi Act, 1991-
Departmentalisation o.f Union Accounts (Transfer of Personnel) Act, 1976-
Central Civil Services (Class(fication, Control and Appeal) Rules, 1965-
E Constitution of India, 1950-Articles 309, proviso to 309(2) and 239 AA.

Constitution of India, 1950 :

Article 136-Appeal under-By Union Territory-Maintainability of-
Held, maintainable since Union of India as well as Union Territory impleaded
F as separate parties ii} the Court-Government of National Capital Territory of
Delhi Act, 1991-'-Section 52(b).

Article 239-Union Territory-Status of-Held, though centrally
administered, it does not become merged with the Central Government and they
fonn part of no State and yet are the territories o.f Union.
·G l· · .. , I
Appellant-Government of NCT, Delhi issued order repatriating staff
in Delhi Administration Accounts Service, posted in various divisions under
Public Works Department on deputation from Ministry of Urban
Development.

H The order was challenged before Central Administrative Tribunal
494
GOVT. OF NCT v. ALL INDIA CENTRAL CIVIL ACCOUNTS 495
by Respondent No. I-Association on the ground that the order of A
repatriation was without jurisdiction and competence as PWD of NCT,
Delhi was part of CPWD accounts staff, which were under administrative
control of the Ministry of Urban Development and all the Civil Works and
PWDs of Union of India had been treated to be under the Ministry,
therefore, all the officers and staff including the accounts staff of PWD
B
. belonged to CPWD.

Chief Controller of Accounts and Union of India supported the case
of respondent No. 1 stating that Central Government had overriding powers
on the Government of NCT, Delhi since Central Civil Senices
(Classification, Control and Appeal) Rules, 1965 include all services or c
posts of the NCT, Delhi and hence the service conditions of employees
thereof were to be regulated by the Union of India under proviso to Article
309(2) of the Constitution of India, 1950.

Tribunal allowed the applications holding that despite introduction
of Article 239 AA of the Constitution of India and coming into force of D
Government of National Capital Territory of Delhi Act, 1991, NCT, Delhi
would still continue to be a Union Territory and as Union Territory all the

- posts and services under its control continued to be the Central Services
and posts; and that in view of Delhi Administration Accounts Services
Rules, 1982 framed under Article 309 of the Constitution and the
E
Government of India (Allocation of Business) Rules, 1961, NCT, Delhi was
subjected to general control and supervision of the Ministry of Urban
Development of the Union of India in so far as management of the Services
of CPWD was concerned; and that the executive powers exercised by Lt.
Governor, Delhi in respect of various services were subject to the overall
control and supervision of the President. However, on merits it observed F
.... that Union of India should have decided whether the applicants who were
admittedly not part of Delhi Administration should have been absorbed in
i~ Accounts Service or not.

In Appeal to this Court Union of India raised preliminary objection
that the appeal by the appellants was not maintainable in view of Section G
52(b) of the Act as all suits and proceedings in connection with the
Administration of the Capital were to be instituted by or against the
Government of India. Respondents contended that the order of repatriation
was without jurisdiction; and that under Delhi Administration Accounts
Service Rules, 1982 only one post was covered and not the other posts in H
496 SUPREME COURT REPORTS [2001] SUPP. 3 S.C.R.
A PWD so far as Delhi Administration Accounts Service was concerned.
Allowing the appeals, the Court
HELD: lrThe preliminary objection regarding·maintainability of
the appeal is not justified. The Union .Territory does not entirely lose its

B
or
existence as an entity though large control is exercised by Union India.
The matter arose out of an order passed by the llibunal before which the
Government of NCT Delhi was hnpleaded as respondent No. 3 while the
Union of India was also lmpleaded as respondent No. 1. When the Union of
India was also lmpleaded as a party and the appellant as another separate
party and the order made by the llibunal affects one of the parties it is
c difficult to conceive as to why that party cannot file an appeal invoking the
provisions of Article 136 of the Constitution which is a proceeding against
the order made by the courts and the llibunals. [501-C; 500-H; 501-A; BJ ·
2. Though the Union Territories are centrally administered under
the provisions of Article 239 of the Constitution, they do not become
merged with the Central Government and· they form part of no State and
D yet are the territories of the Union. [50l·B] '
Satya Devi Bhushahri V. Padam Dev & Ors., [1955] 1 SCR 549 and
NDMC v. State of Punjab, (1997] 7 SCC 339, refe~red to.
3. It cannot be said that the posts in the PWD in relation to the
E officers are posts under the CPWD which directly c;ome under the control
of the Ministry of Urban Development. If the Accounts Department of the ·
PWD in the Government of NCT Delhi was part of the Accounts Department
. I
of the CPWD, then there was no need for sending them on deputation and
they could have been directly posted to Government of NCT Delhi for
work in the Delhi Administration Accounts Service. [502-F; G; 503-A]
F
4. Whatever may have been the position prior to the coming into
'"!41
force of the Delhi Administration Accounts Service Rules, 1982, from the
date of the coming into force of these Rules, they govern the Delhi
Administration Accounts Service. When rules have been framed under
Article 309 of the Constitution after obtaining approval of the Union of
G India and in accordance with those rules appointmentS hav~·to be made t~
various posts, it is difficult to comprehend as to how the Central Government
could act contrary to those rules. which have been specifically made in'
respect of Delhi Administration Accounts Service. [501-D; 502-E]
. ' '

5. Though the Tribunal came to th~ conclusion that the appellant did
H not have the competence to issue the impugned order for repatriation, its
GOVT. OF NCT v. ALL INDIA CENTRAL CIVIL ACCOUNTS [RAJENDRA BABU, J.] 497
comment upon the merit of the matter that Union of India should have A
decided whether the applicants should be absorbed in the Delhi
Administ~ation Accounts Service or not and appropriate decisions on that
aspect should have been taken which would have resolved the problem
once for all, is justified, in the circumstances of the case. [503-C; B]
6. Since it is not clear as to how many posts are available now, B'
although at the time of framing of the Rules, one post might have been
available which was shown in the cadre and several other posts might also
have been created or come into existence because unless the posts were
available, the members of respondent No.1 before the Tribunal could not
have been deputed to such posts. H as a fact they have been deputed to
such posts, the posts must have been available, as in the absence of such
c
posts, they could not have been deputed to the same. Therefore, if it cannot
be said that under the Rules only one post is coyered and not the other
posts in PWD so far as the Delhi Administration Accounts Service is
concerned. (503-D; E]
D
New Delhi Municipal Committee v. State of Punjab, (1997] 7 SCC 339,
referred to.
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 2971-2973 of
1997.

From the Judgment and Order dated 23.8.96 of the Central Administrative E
Tribunal, Delhi in 0.A. Nos. 1339, 1140 and 2011 of 1994.

P.P. Rao and P.P. Malhotra, Mrs. Mahalakshmi Pavani, Dr. Sumant
Bhardwaj, Mridula Ray Bhardwaj, Praveen Chaturvedi, Ms. Mona Rajvanshi,
Dheeraj Kumar Agarwal, V.K. Rao, Piyush Sharma, Ms. Madhu Sikri, Ms.
Anuradha Priyadarshni, Ajay Verma, Y.P. Mahajan and Ms. Sushma Suri for F
... the appearing parties .

The Judgment of the Court was delivered by

RAJENDRA BABU, J. This is a matter which ough~ to have been
resolved by respondent No.8 and the appellant and unnecessary litigation is G
being resorted to by all the parties.

By the Constitution (7th Amendment) Act, 1956, the States in Part C and
Territories in Part D of the First Schedule were replaced by the 'Union
Territories', which, under Part II of the First Schedule, as amended, inter alia,
include the Union Territory of Delhi. The administration of the Union Territories H
498 SUPREME COURT REPORTS [2001] SUPP. 3 S.C.R.
A is c~ed on by the Union, through an Administrator. As stated by this Court
in New Delhi Municipal Committee v. State of Punjab, [1997] 7 SCC 339, the
President, who is the executive head of a Union Territory does not function as
the head of the Central Government, but as the head of the Union Territory
under powers specially vested in him under Article 239 of the Constitution
thereby occupying a position analogous to that of a Governor iri a State.
B
Though the Union Territories are centrally administered under the provisions
of Article 239 they do not become merged with the Central Government as has
been stated by this Court in Satya Dev Bushahri v. Padam Dev & Ors., [1955]
1 SCR 549. However, the Administrator is competent to exercise all powers
vested in him_by the Government of National Capital Territory of Delhi Act,
c 1991 [l of 1992] [hereinafter referred to as 'the Act'].· The Administrator
functions as a delegate of the President and will have to act under the orders
of the President, that is, the Central Government.

A letter was sent by the Government of National Capital Territory of

D
Delhi [for short 'Government of NCT Delhi'] to the Chief Controller of
Accounts, Government of India on 7 .6.1994 that the Government of NCT Delhi
has decided to repatriate all the JAOs/AAOs, who are presently on deputation
-
to that Government from the Ministry of Urban Development and posted in

--
various divisions under PWD/Flood Control Department of that Government.
However, to avoid administrative problem they were repatriating 20 such
officers in the first phase from 30.6.1994 and the remaining similar officers will
be repatriated in phased manner in due course. On 28.6.1994, the Government
of NCT Delhi issued an office order indicating that it has been decided that the
services of the officers mentioned therein who are working in the Irrigation &
Flood Department or Public Works Department [for short 'PWD'] were to be
placed back at the disposal of the the Ministry of Urban Development,
F Government of India. This order was challenged by an application before the ,
Central Administrative Tribunal, Principal Bench, New Delhi [hereinafter
referred to as 'the Tribunal'].

The case put forth before the Tribunal by respondent No.I and certain
individ':Jal officials in two sets of applications, is that the PWD of Government
G of NCT Delhi is a part of ihe Central Public Works Department [for short
'CPWD'] and all officers and staff inch:iding the accounts staff working in the
PWD thus belong to the CPWD; that the accounts staff of the CPWD are under
the administrative control of the Chief Controller of Accounts, the Ministry of
Urban Development; that prior to 1976, the cadre controlling authority was the
H Accountant General under the Comptroller of Auditor General and after the
GOVT. OF NCT 10. ALL INDIA CENTRAL CIVIL ACCOUNTS [RAJENDRA BABU, J.] 499
Departmentalisation of Union Accounts [Transfer of Personnel] Act, 1976 A
came into force, the Ministry of Urban Development became their controlling
authority; that all the civil works and PWDs of the Union of India have been
treated to be under the Ministry of Urban Development by virtue of Allocation
of Business Rules, 1961. In view of this position, the applicants before the
Tribunal contended that the order made by the appellant is without jurisdiction
B
and competence.

The stand taken on behalf of the Chief Controller of Accounts and the
Union of India is thatthere is only one service, namely, the Union Service and
there is no separate service for the Union Territories and for most of the
purposes of the Constitution, they are treated as a part of the Union and hence C
the services or posts or the staff working in the Government of NCT Delhi are
the services or posts in connection with the affairs of the Union. The Central
Civil Services [Classification, Control & Appeal] Rules, 1965 include all
services or posts of the NCT Delhi and in view of this position, the service
conditions of employees under the control of the Government of NCT Delhi
and the employees working under the Union are to be regulated by the Union D
under proviso to Article 309(2) of the Constitution. Therefore, the Central
Government has overriding powers on the Government of NCT Delhi and,

- therefore, Government of NCT Delhi cannot seek replacement of the applicants
in this case and fully supported the case of respondent No. l.
E
The Government of NCT Delhi contended that the applicants were
transferred from the Union Accounts Department on deputation [without
deputation allowance] as a result of separation of accounts from audit in 1977
and they were allowed to continue for a long period due to the shortage of the
qualified staff with the Government of NCT Delhi. Now the Government of
NCT Delhi has its own cadre since 1982 and has tided over the difficulty of F
shortage of qualified persons by the year 1994 when 108 officials who belonged
to the Government of NCT Delhi cadre have qualified in the common SAS
examination conducted by the CGA. Prior to enactment of the Act, Delhi had
a status of Union Territory without Legislature and the transactions relating to
expenditure, receipts, etc. were accounted for under the Consolidated Fund of
India. After the Delhi came to be declared as National Capital Territory of
G
Delhi with Legislature and in consequence a separate Consolidated Fund of
NCT Delhi has been formed. Separate demands for each department which
includes PWD also are prepared and presented by the Finance Minister of the
NCT Delhi before the Assembly and the CAG report on the accounts of the
NCT Delhi is also placed before the Assembly along with the Finance Accounts H
500 SUPREME COURT REPORTS [2001] SUPP. 3 S.C.R.
A and appropriate accounts. The accounts of the PWD divisions are rendered to
Pay & ·Accounts Office NO; XXII which is a subordinate office of Chief
Controller of Accounts. Government of NCT Delhi and, therefore, contended
~ .
that the Assembly of NCT Delhi has full authority to make laws. in respect of
matters relating to public services which involved PWD also and the Nt::T
Delhi [Allocation of Business] Rules, 1993 have also led to creation of the
B
separate department of PWD with a separate budget provision and demand.
They contended that they have full control over the ~WD and there .is also a
separate accounts service constituted in 1982 with its own rules. The members
of respondent No. I, it was contended, .were on. deputation though without

.
deputation allowance and, therefore, the appellant is entitled to repatriate them
c to their parent department which is responsible to give them appropriate posting
'
and, therefor~, they cannot make a grievance of the same.

The Tribunal stated that-in spite of Constitutional developments in regard
tci Delhi by introduction of Article 239AA and coming into force of the Act,
Delhi still continues to be a Union Territory and as a Union Territory all the
D posts and services under its control continue to be the Central Services and
Posts and, therefore, accepted the contention raised on behalf of the Union of
India that it ~s the 'only services under the Union and the State'. After

E
examining the Delhi Administration Accounts Service Rules framed under
Article 309 of the Constitution and the Government of India (Allocation of
Business) Rules, 1961, the Tribunal took the view that the NCT Delhi will be
-
subject to general control and supervision of the Ministry o( Urban Development
of the Union of India insofar. as the management of the services of its PWD
is concerned and in the present case the administration of~CT Delhi had issued
the impugned order despite objections of the Ministry of Urban Development
and held that the executive powers exercised by the Li. Governor, Delhi in
F respect of various services are subject to the overall control and supervision of
the President and on that basis the Tribunal allo~ed the application and quashed
the impugned order directing repatriation. Hence aggrieved by this order of
...
the Tribunal, these appeals have been preferred by the Government of NCT
'· Delhi.
G , Shri P.P. Malhotra, learned senior Advocate appearing for the Union of
India, raised a preliminary objection on the basis of Section 52(b) of the Act
which provides that all suits and proceedings in connection with the
administration of the Capital shall be instituted by or against the Government
of India. The objection raised by the learned counsel ignores the fact that the
H matter arises out of an order passed by the Tribunal before which the Government

t-
GOVT. OF NCT v. ALL INDIA CENTRAL CIVIL ACCOUNTS [RAJENDRA BABU, J.] 501
of NCT Delhi was imp leaded as respondent No. 3 while the Union of India was A
impleaded as respondent No.I. When the Union of India was also impleaded
as a party and the appellant as another separate party and the order made by
the Tribunal affects one of the parties, it is difficult to conceive as to why that
party cannot file ap. appeal invoking the provisions of Article 136 of the
Constitution which is a proceeding against the orders made by the courts and
the Tribunals. The position in law is clear that though the Union Territories
B
are centrally administered under the provisions of Article 239 of the Constitution,
they do not become merged with the Central Government and they form part
of no State and yet are the territories of the Union, as has been held by this
Court in Satya Dev Bushahri v. Padam Dev [supra] and NDMC v. State of
Punjab [supra]. Thus, it must be held that the Union Territory does not entirely c
lose its existence as an entity though large control is exercised by Union of
India. In this view of the matter, we do not think the preliminary objection
raised on behalf of the respondents by Shri Malhotra is justified and the same
is rejected.

Whatever may have been the position prior to the coming into force of D
the Delhi Administration Accounts Service Rules, 1982 [hereinafter referred
to as 'the Rules'], from the date of the coming into force of these Rules, they
govern the Delhi Administration Accounts Service. Rule 3 of the Rules provides
that on or from the date of commencement of the Rules, there shall be constituted
a Central Civil Service to be known as 'the Delhi Administration Accounts
E
Service'. The Tribunal has been carried away by the fact that what has been
constituted is the Central Civil Service and, therefore, it is entirely under the
control of the CentraLGovernment ignoring for a moment other part of the rule,
namely, that out of the Central Civil Service, Delhi Administration Accounts
Service is segregated. If under the Rules, there is a separate cadre constituted,
the Rules will hold the field whether it is the Government of NCT Delhi which F
is applying the Rules or the Central Government in exercise of its power in the
matter of administration of the NCT Delhi. When the Rules hold the field,· the
rules will have to be applied. Therefore, if the rules are applied, it becomes
clear that under Rule 5, the initial constitution of service is indicated.and as
to who become absorbed in the services of the Delhi Administration Accounts
Service and who are absorbed thereto is also indicated and subject to what
G
conditions. Rule 7 of the Rules provides for method of recruitment to Grade
I and II of the Service and proportion is fixed by transfer on deputation of
officers holding equivalent posts in the departmentalised accounts organisation
or Ministries and Departments of Government of India and from the Indian
Audit and Accounts Departments or by promotion from officers of the Grade H
502 SUPREME COURT REPORTS [2001) SUPP. 3 S.C.R.
A I of the Delhi Subordinate Service who have passed the SAS examination and
recruitment to Grade II will have to be made by promotion from Grade II
officers of Subordinate Service who have passed SAS examination which,
however, will not preclude the Administration from filling any vacancy by
deputation of the qualified officers ofthe Audit Department or from the office
of the Controller General of Accounts in accordance with the orders of the
B
Central Government issued from time to time; The question for consideration
is whether it is open to the Government of NCT Delhi to ask for repatriation
of those who have been sent on deputation and when all appointments in the
Service will have to be made on the basis of the lists prepared in accordance
with Rules 5 and 7 of the Rules and not against any specified posts included
c in the Service and thereafter the appointing authority will allocate the persons
borne on the lists to various offices of the Administration. It is also made clear
that where the exigencies of the situation so demand the appointing authority
may, for reasons to be recorded in writing, appoint a person holding analogous
or similar posts under the Central Government or a State Government on
D deputation for. a period of not exceeding three years. ;\gain for duty posts
which is of purely temporary in character or a permanent post which is declared
to be such post, a local arrangement could be made but for a period not
exceeding six months from officers who are eligible. for inclusion in the list
under Rule 11 or Rule 15. Therefore, what is required to be seen is when rules
h~ve been fram~d under Article 309 of the Constitution after obtaining approval
E of the Union of India and in accordance. with those rules appointments have
to be made to various posts, it is difficult for us to comprehend as to how the
Central Government could act contrary to those rules which have been
specifically made in respect of Delhi Administration Accounts Service .

In the wake of this difficulty, Shri Malhotra and Shri V.K. Rao submitted
F
that the posts in the PWD in relation to these officers are posts under the CPWD
which directly come under the control of the Ministry of Urban Development
but this argument is belied by the fact that the orders posting them in the Delhi
Administration Accounts Service clearly indicated that they would be on
deputation to Delhi Administration without any deputation allowance but the
G fact remains that these officers have been posted only on deputation. If really
as contended for the respondents that the Accounts Department of the PWD
in the Government of NCT Delhi was part of the Accounts Department of the
CPWS, then there was no need for sending them on deputation ~nd they could
have been directly posted. Although such a case was advanced before the
Tribunal, no finding has been recorded on this aspect of the matter but we are
H
GOVT. OF NCT v. ALL INDIA CENTRAL CIVIL ACCOUNTS [RAJENDRA BABU, J.] 503
•clear in our mind that they could not have been sent on deputation to the A
Government of NCT Delhi to work in the Delhi Administration Accounts
Service and, therefore, this contention cannot be accepted at all.

'The Tribunal also in fact noticed that the stand of the Union of India is
not appropriate having allowed the establishment of the Delhi Administration
Accounts Service as far back as in 1982 and also allowed setting up of the PWD B
of the NCT Delhi and applicants who are not admittedly part of the Delhi
Administration Accounts Service should have decided whether these applicants
should be absorbed in the Delhi Administration Accounts Service or not and
appropriate decision on that aspect should have been taken which would have
resolved the problem once for all. Though the Tribunal came to the conclusion
that the appellant did not have the competence to issue the impugned order for
c
repatriation they did comment upon the merit of the matter, which, we think
in the circumstances of the case, is justified.

When all other arguments failed, almost in desperation, the learned
counsel for the respondents, submitted that under the Rules only one post is D
covered and not the other posts in the PWD so far as the Delhi Administration
Accounts Service is concerned. As stated earlier, as to how many posts are
available now is not clear although at the time of framing of the Rules, one post
might have been available which was shown in the cadre and several other
posts might also have been created or come into existence because unless the
posts were available, the members of respondent No. I before the Tribunal E
could not have been deputed to such posts. If as a fact they have been deputed
to such posts, the posts must have been available as in the absence of such
posts, they could not have been deputed to the same. In that view of the matter, ·
we find no substance in this argument.

In the result, we set aside the order made by the Tribunal and direct
F
respondent No. 8 to take appropriate steps to give effect to the proposal made
by the appellant or to take steps for absorption in Delhi Administration Accounts
Service as indicated by the Tribunal to which we have adverted to above. Let
such action be taken within three months from today.
G
The appeals stand allowed accordingly. No costs.

K.K.T. Appeals allowed.