Holding

Rule 4(e) as amended is valid but must operate prospectively, not retrospectively.

Summary

The Andhra Pradesh Revenue Subordinate Service Rules, 1961 provided for appointment of Deputy Tehsildars by direct recruitment or transfer, with seniority to be determined under Rule 33(a) of the General Rules. Direct‑recruit Deputy Tehsildars challenged the seniority accorded to them over promotee Deputy Tehsildars, but the High Court dismissed the writs. In 1980 the State amended Rule 4(e) to fix inter‑se seniority between the two categories on the basis of the date of confirmation in a substantive vacancy, applying the amendment retrospectively from 1961. Promotee Deputy Tehsildars contested the amendment, especially its retrospective operation, before the Andhra Pradesh Administrative Tribunal, which upheld it and directed the State to determine seniority accordingly. The Supreme Court held that the State may prescribe the method of computing seniority and that the amendment is within the competence conferred by Article 309, but it cannot operate retrospectively as that would disturb settled positions; the amendment therefore applies prospectively from 9 October 1980. The Court dismissed the appeals and writ petitions, directing the State to compute vacancies, conduct direct recruitment and draw a seniority list by 31 December 1988.

Issues considered

The State's power to prescribe the manner of inter‑se seniority under service rules.
Whether the amendment of Rule 4(e) is valid under Article 309 of the Constitution.
Whether the amendment can be given retrospective effect.
Interpretation of Rule 33(a) of the General Rules concerning seniority.
Whether the amendment violates Articles 14 and 16 of the Constitution.

Legislation cited

Constitution of Indias. Article 14, s. Article 16, s. Article 309

Subjects

seniorityinter se seniorityservice rulespromotionretrospective amendmentArticle 309Andhra Pradesh Revenue Subordinate Service Rulesdirect recruitmentpromoteeconstitutional lawpublic service

Judgment

\

K.V. SUBBA RAO & ORS. ETC.
A
v,
GOVERNMENT OF ANDHRA PRADESH & ORS.

FEBRUARY 24, 1988

B [RANGANATH MISRA AND G.L. OZA, JJ.]

Andhra Pradesh Revenue Subordinate Service Rules, 1961-

c
Rules 3 and 4(e)-Determination of inter se seniority between direct
recruit and promotee Deputy Tehsildars-Rule 4(e) as amended on
9.10.80 not to operate retrospectively-Rule should be followed
scrupulously and State Government to effect direct recruitment at
regular intervals. /
-
~·

Constitution of India, 1950-Article 309-Service Rules-
Binding effect on State and citizens alike-By willingly abiding by. the
law State to exhibit an ideal situation for the citizens to emulate.
D
In 1961 the Andhra Pradesh Revenue Subordinate Services Roles
were brought into force, the cadre under the roles being Deputy
Tehsildars. Till then the roles in force in the erstwhile State of Madras
were applicable to Andhra Pradesh. Role 3 of the 1961 Roles provides
for appointment of Deputy Tehsildars by direct recruitment or by
E transfer from members of the Andhra Pradesh Ministerial Service emp-
loyed in the Revenue Department. It also provides that the substantive
vacancies in the category of Deputy Tehsildars shall be filled or re· ...
served to be filled by direct recruitment and recruitment by transfer in
the proportion of l: l

F A writ petition was filed before the Andhra Pradesh High Court
by some direct recruit Deputy Tehsildars disputing the seniority over i. (
them assigned to a group of promotees. The Single Judge dismissed the _..,
same holding that the petitioners had no casuse of action within the
frame of the roles. This was upheld by the Division Bench, deriving
support from Role 33(a) of the Andhra Pradesh State and Subordinate
G Services Rules 1962. Against this a Special Leave Petition was filed
before this Court.

Meanwhile, the State Government amended Rule 4(e) of the
Andhra Pradesh Revenue Subordinate Service Rules to the effect that
the inter-se seniority between direct recruits to the category of Deputy
H Tehsildars and promotees to the category of Deputy Tehsildars shall be
1118
K.V. SUBBA RAO v. GOVT. OF ANDHRA PRADESH 1119

r determined from the date of confirmation in the substantive vancancies
A
in that category in the proportion of I: 1 as provided in sub-rule (b) of
~ Rule 3. The validity of the amendment was questioned by a number of
promotees (the appellants herein) before the State Administrative Tri-
bunal with particular emphasis on its retrospective application. The
Tribunal examined the matter at length and upheld the validity or the
enactment. It also directed the State Government to proceed to B
determine the seniority accordingly. The said directions of the Tribunal
i
are assailed in the appeals by Special Leave and the Writ Petition filed
.. in this Court .
• Dismissing the appeals, and_ the writ petitions, this Court,
c
. -<(
\ HELD: 1.1 The State is entitled to prescribe the manner of corn-
puting inter-se seniority and in the absence of such prescription, length
of service is the basis. Rule 33 of the Andhra Pradesh State and Subor-
dinate Services Rules, 1962 contained prescription regarding seniority
and has different provisions to meet varying situations. Sub-rule (a)
thereof which provides that seniority of a person is to be determined D
,, "by the date of bis first appointment to such service" has obviously
been misinterpreted on account of the presence of the words "unless
be has been reduced to a lower rank as a punishment". It is appro-
priate to interpret that rule to mean that the date of first appointment
is intended to refer to continuous appointment only and the words
r "unless he has been reduced to a lower rank by way of punishment" E
are really redundant. This interpretation will have prospective applica-
. tion, as otherwise limitless litigation would crop up. [ll24F-G; ll25C]

1.2 Rule 4(e) before amendment in 1980 provided that the
l
seniority of Deputy Tehsildars would be determined with reference to

,. the date of allotment maintained and ranking assigned by the Andhra
Pradesb Public Service Commission in the merit list of the particular
f.-. selection. That was confined to inter-se seniority of direct recruits and
F

·did not cover inter-se seniority between recruits of the two sources. In
1980, Rule 4(e) was amended and the State Government prescribed the
manner of providing inter-se seniority among the recruits of the two
' categories. The amended rule provided the date of confirmation in the G
substantive vacancy as the basis. Rule 3(b) thereof fixed the reservation
-~ of direct recruits with reference to substantive vancancies at 50% and
Rule 4(e) made provision with reference to seniority in the substantive
vancancies, with reference to the date of confirmation. The amendment
is within the competency or the State Government and is not open to
challenge. This is a rule made under the proviso to Article 309 of the H
I ..
1120 SUPREME COURT REPORTS [1988] 2 S.C.R.

Constitution and tbe rule can be given retrospective operation. But the ·"':
A
State Government, while amending the rule, should have taken into
consideration the practical problems which would arise as a consequ-
ence of retrospectivity. To allow the amendment to have retrospective
operation is bound to create problems. Hence Rule 4(e) as amended on
9th October, 1980, shall not have retrospective effect and would operate
B prospectively. [112SD-G; 1126A, El

2. Though Rule 3(b) fixes the ratio as t:t in respect of substantive r

c
vacancies, the recruitment has not been regular and systematic. Rules
have binding effect and they bind the State and the citizens alike once
they are in force. In order that law may regulate conduct, the State has
to feel bound by its own laws and by willingly abiding by the law,
<

-
exhibit an ideal situation for the citizens to emulate. The rule shall
henceforth be followed scrupulously by effecting recruitment at regular · ·
/_
intervals according to the scheme of the rule. (U26E-G]

(The State Government has been directed to determine the
D vancancies available to be filled by direct recruitment within four
months and to fill up the same within four months thereafter and to
draw a seniority list on the basis of rule 4(c) on or before 3 t. 12.88.]

CIVIL APPELLATE JURISDICTION: Civil Appeal
E · Nos. 2635-38 of 1985. '(

From the Judgment and Order dated 30.10.1984 of the Andhra
Pradesh High Court in R.P. Nos. 1998, 2065, 2085 of 1980 and 624 of
1982.
--
F S.N. Kacker, A. Subba Rao, B. Sudharshan Reddy, Ramesh M.
Keshwani and K. Ram Kumar for the Appellants.

Chella Seetharamiah, M.K. Ramamurthy, Ms. C.K. Sucharita,
K. Rajendra Choudhary and K. Shivraj Chowdhary for the Respon-
dents.
G
The Judgment of the Court was delivered by

RANGANATH MISRA, J. The appeals are by special leave and
are directed against the judgment of the Andhra Pradesh Administra-
tive Tribunal in a group of representation petitions while the writ
H petitions are under Article 32 of the Constitution, Writ Petition 72 of
K.V. SUBBARAOv. GOVT. OF ANDHRAPRADESH (MISRA,J.] 1121

1987 being by promotee Deputy Tehsildars and Writ Petition 241 of
A
1987 being by another group of Deputy Tehsildars promoted by
transfer.

Tue background of the litigations may now be indicated. A set of
rules regarding recruitment of Deputy Tehsildars was in force in the
erstwhile State of Madras which continued to apply to Andhra Pradesh B
until in 1961 the Andhra Pradesh Revenue Subordinate Service Rules
(hereir.after referred to as the 'Special Rules') were brought into
force. The cadre under the Special Rules consisted of Deputy
Tehsildars only. Rule 3 provided:

"3. Appointment: (a) Appointment to the category of
Deputy Tehsildars in this service shall be made: c
i). by direct recruitment, or

ii) by transfer from members of the Andhra Pradesh
Ministerial Service employed in the Revenue Department D
including the Office of the Commissioner of Land
Revenue, Revenue Settlement parties and the office of the
Director of Settlements Survey and Land Records.

(b) Substantive vacancies in the category of Deputy
Tehsildars shall be filled or reserved to be filled by direct E
recruitment and recruitment by transfer in the porportion
ofl:l".

Some directly recruited Deputy Tehsildars during the years 1962 and
1963 moved the Andhra Pradesh High Court in Writ Petition No. 1502
of 1971 disputing the seniority over them assigned to a group of pro- F

r
motees. They alleged that though they had completed their probation
l"·{ong prior to the Upper Division Clerks who were appointed by trans-
fer as Deputy Tehsildars and had become full members of the service
upon confirmation in their posts while none of the Upper Division
Clerks appointed by transfer had become full members, yet the
directly recruited Deputy Tehsildars harl been treated as junior and G:
their claim to promotion as Tehsildars was being overlooked. A
learned Single Judge of the High Court dismissed the writ petition by
holding that there was no foundation for the grievance of the directly
recruited Deputy Tehsildars and that they had no cause of action
within the frame of the rules. The decision of the learned Single Judge
was upheld in appeal by a Division Bench. Support for that position H
1122 SUPREME COURT REPORTS [1988] 2 S.C.R.

A was derived from Rule 33(a) of the Andhra Pradesh State and Sub- ;;-
ordinate Services Rules, 1962 (hereinafter referred to as the 'General
Rules'). A special leave petition was filed before this Court against the ~
appellate decision of the High Court.

On 9th October, 1980, the State Government amended Rule4(e)
B of the Special Rules with retrospective effect from 12th of October,
1961 in the manner indicated below: 'f
"In sub-rule (e) of Rule 4 of the said Rules, for the
words 'The seniority of the Deputy Tehsildar shall be
determined with reference to the date of allotment main-
tained and the ranking assigned to him by the Andhra J
c Pradesh Public Service Commission in the merit list of that ,~
selection', the following shall be substituted, namely, 'the
inter se seniority between the direct recruits to the category
of Deputy Tehsildars and the promotees to the category of
Deputy Tehsildars shall be determined from the date of
D their confirmation in the substantive vacancy in that cate-
gory in the proportion of 1: 1 as provided in sub-rule (b) of
Rule 3."

A group of promotees who are appellants in the civil appeals went
before the Andhra Pradesh Administrative Tribunal questioning the
E validity of the aforesaid amendment with particular emphasis on its . 'f
retrospective application. The Tribunal referred the matter to a th!"ee-
Judge Bench thereof. Before the Tribunal, it was canvassed on behalf
of the appellants that the prevailing rule regarding seniority was in
Rule 33 of the General Rules and in the absence of any provision in the
special Rules, the principle in Rule 33 was applicable for determining
F inter se seniority in the cadre of Deputy Tehsildars. The claim of the
direct recruits had been negatived by the High Court and the dispute i.. ~
was pending decision of this Court. There was no scope for the Stater ,
Government to amend the Rules in 1980 to the prejudice of the pro- .
1
motees. Even if Government wanted to change their policy regarding
determination of inter se seniority, it should have been made appli- ·
G cable prospectively and that the seniority already determined on the
basis of Rule 33 of the General Rules should not have been disturbed.
The determination of seniority on the basis of the date of confirmation ,)
worked out prejudice for the promotees. The Tribunal examined the
matter at length and came to the following conclusion:

H "As a quota rule has been provided in the Special
K.V.SUBBARAOv.GOVT.OFANDHRAPRADESH(MISRA,J.) 1123
'*'
7 Rules relating to the recruitment of Deputy Tehsildars A
from two sources, after recruitment there is an imperative
need to integrate the aforesaid two sources. After integra-
tion necessity arises for fixing inter se seniority of persons
who have come from the two different sources for facilitat-
ing promotions to the next higher posts. There being no B
rule of relative seniority between direct recruits and rank
1 promotees, and the General Rule 33(a) being incapable to
bring integration, Government have rightly felt to enact a
-\ rule for integration of the two sources in one cadre and
..... fixation of inter se seniority among members drawn from
the said two sources. Confirmation adopted as the formula
1 for determination of inter se seniority is constitutionally c
-~
\- valid. There is no question of any discrimination in laying
down a rule of seniority based on the principle of confirma-

- "
tion. The promotee Deputy Tehsildars not having been
recnrited against the substantive vacancies have not
acquired any vested interest so as to be protected against D
the impugned rule of seniority. Their inter se seniority in
the class of temporary Duputy Tehsildars against the non-
substantive posts, evidently, determined under General
Rule 33(a) remains unaffected by the impugned seniority
rule. Thus, the said rule does not offend Articles 14 and 16
of the Constitution. It is free from any vice what-so-ever
r and cannot therefore be assailed. The General Rule 33(a)
E

-
'
is incapable of determination of inter se seniority between
direct recruits and promotee Deputy Tehsildars despite the
fact that the promotees belonging to the latter class are
approved probationers and their recruitments are regular
-J to the category of Deputy Tehsildars. Since their posts are
F
outside the permanent cadre, they cannot bring their
)-- seniority in the category of Deputy Tehsildars into the per-
~
manent cadre and press it against the direct recruits who
are members of the permanent cadre from the beginning.
The seniority between them (after judgment) and the
-,_ direct recruits shall be determined on the basis of the
G
impugned rule of seniority, which, according to us is a valid
enactment. The Government shall now proceed to deter-
I., mine the seniority accordingly."

These directions of the Tribunal are assailed in appeal before this
Court.
H
1124 SUPREME COURT REPORTS [1988] 2 S.C.R. n-,

A Writ Petition No. 72 of 1987 is by 17 promotees during the period .,.,
1966 to 1971 while Writ Petition No. 241 of 1987 is by 21 Deputy
Tehsildars promoted by transfer from the posts of Upper Division
Clerks also during the same period.

The cadre does not have a prescribed strength and temporary
B appointments seem to have become the rule as the history of the
service shows. Even though the ratio of 1: 1 is prescribed in regard to 'r
the substantive vacancies, direct recruitments were made only in the
years 1963, 1964, 1965 and 1966 and for a decade to follow there was I-
no direct recruitment. When demand for more hands in the category of ..--=
Deputy Tehsildars became pressing supernumerary posts were created
from time to time and such posts were filled up by promotion. Rule •
c 33(a) of the General Rules dealing with seniority, as far as relevant, l~
provides: / ·

D
"The seniority of a person in service, class, category
or grade shall, unless he has been reduced to a lower rank
as a punishment, be determined by the date of his first
- I
\
·,
appointment to such service, class, category or grade
................ "
Relying upon this provision, seniority was being determined of pro-
motees without taking into account the fact that there had been in-
E tervening reversions to the lower posts from which promotion to the 1
post of deputy Tehsildar had been granted.
....
The legal position is well-settled that the State is entitled to
prescribe the manner of computing inter se seniority and in the absence '
of such prescription length of service is the basis. A series of recent
F decision of this Court has made that position certain. Rule 33 of the
General Rules contains prescription regarding seniority and has diffe- ;i. '(
rent provisions to meet varying situations. Sub-rule (a) which provides ·
that seniority of a person is to be determined "by the date of his first
appointment to such service" has obviously been mis-interpreted on
account of the presence of the words 'unless he has been reduced to a
~·
G lower rank as a punishment'. It could not be the intention of Rule
33(a) to compute seniority from the date of first appointment even
though it was not a continuous one. For instance, a person is appointed -)
to the post of Deputy Tehsildar on promotion on lst of January, 1970
and is reverted to the lower post, not by way of punishment but on
account of exigencies of service or otherwise, on 31st of March, 1970.
H He is again promoted to that post on lst January, 1980 and continues
K.V. SUBBARAOv. GOVf.OFANDHRAPRADESH(MISRA,J.] 1125

_, to hold that promotional post. Another person is promoted to the post A
of Deputy Tehsildar on lst April, 1970 and continues to hold that post
without break. If the interpretation adopted by the State Government
of Rule 33(a) is accepted, it would mean that the first person on
account of having been first appointed on an earlier date to the promo-
tional post would rank senior to the second person. This obviously
could not have been the intention of the rule. It is appropriate to B
interpret that rule to mean that the date of first appointment is in-
tended to refer to continuous appointment only and the words 'unless
he .has been reduced to a lower rank by way of punishment' are really
redundant. We are aware of the fact that this rule has been widely
applied for determining inter se seniority and in case challenge to
fixation ofinter se seniority is permitted to be raised on what we have C
·'.'.stated above, limitless litigation would crop up. We would, therefore,
~ lnake it clear that the interpretation which we now give of this rule
shall have prospective application and unless there be any litigation
already pending challenging the interpretation of this rule no new liti-
gation would be permitted on that score.
D
We have already pointed out that the law is that it is open to the
State to provide a rule for determining inter se seniority. Rule 4(e) of
the Special Rules before amendment in 1980 had provided that the
seniority of Deputy Tehsildars would be determined with reference to
the date of allotment maintained and ranking assigned by the Andhra
T Pradesh Public Service Commmission in the merit list of the particular E
selection. That obviously was confined to inter se seniority of direct
recruits and did not cover inter se seniority between recruits of the two
sources. Therefore, the General Rules had been relied upon. In 1980,
by the impugned amendment to Rule 4( e) of the Special Rules, the
State Government prescribed the manner of providing inter se senio-
rity among the recruits of the two categories. The amended rule pro- F
)- vided the date of confirmation in the substantive vacancy as the basis.
~ule 3(b) fixed the reservation of direct recruits with reference to
substantive vacancies at 50% and Rule 4(e), therefore, made provision
with reference to the seniority in the substantive vacancies with refer-
ence to the date of confirmation. The amendment in terms is within
., the competency of the State Government and is not open to challenge. G
This is a rule made under the proviso to Article 309 of the Constitution
\:- and as settled by this Court in exercise of that power the rule can be
given retrospective operation. The impugned amendment has been
given retrospective operation from 12th October, 1961. From the
judgment of the Tribunal we find that the authority of the State
Government to make a rule for future application was not seriously H
1126 SUPREME COURT REPORTS (1988] 2 S.C.R.

A diijiuted but what 'was assailed was the retrospectivity given to the ~
amendment.

Indisputably many of the promotees on the basis of seniority
already assigned to them have been holding posts of Tehsildars, De-
puty Collectors and Special Grade Deputy Collectors. Many have re-
B tired from service having enjoyed those p~omotional benefits. Promo-
tions between 1961 and 1971 on the basis of the seniority assigned
under Rule 33(a) of the General Rules is under challenge. That period
is a distant one from now varying between 17 to 27 years. To allow the
amendment to have retrospective operation is bound to create prob-
lems. The State ·Government while amending the rule should have
C taken into consideration the practical problems which would arise as a
consequence of retrospectivity. It should have taken into account the.•(
far reaching adverse effect which the rule, if given such retrospectivf -,,,,.__
effect, would bring about in regard to services of scores of employees
and the disquiet it would result in by disturbing settled situations. We
are, therefore, not of the view that the rules should be given retrospec-
D tive effect from 1961. It would, however, be wholly justified and ap-
propriate to give the rules prospective operation by fixing 9th October,
1980 as the date from which it should take effect. We accordingly
direct that Rule 4(e) as amended on 9th October, 1980, shall not have
any retrospective effect and would operate prospectively.

E Though Rule 3(b) fixes the ratio as 1: 1 in respect of substantive
vacancies, the recruitment has not been regular and systematic. We
have come across several instances where the State Government do
not take· steps to give effect to their own rules and, therefore, though
there is one mode of prescription, in action a different situation is
brought about. Rules have binding effect and they bind the State and
F the citizens alike once they are in force. In order that law may regulate
conduct, the State has to feel bound by its own laws and by willingly '(
abiding by 1the law exhibit an ideal situation for the citizens to emulat\'~
We disapprove of the callous conduct of the State and direct that the
rule shall henceforth be followed scrupulously by effecting recruitment
at regular intervals according to the scheme of the rule. The State shall
G within four months from today compute the substantive vacancies in
the cadre and determine the quota of direct recruits to the rank of
Deputy Tehsildars and after working out the vacancies available to be -).
filled by the direct recruitment on the basis of 50 per cent of the total
number, fill up the same by making direct recruitment within a period
of four months thereafter. Once that is done and regular recruitment is
H effected, the impasse which has now been created would not continue.
K.V. SUBBARAOv. GOVT. OFANDHRAPRADESH (MISRA,J.) 1127

-,. The State is directed to draw up the seniority list on the basis of mle A
4(e) on or before 31st December, 1988. We have given a long time to
eliminate the scope for making for an application for extension.

The Civil Appeals are dismissed. The Writ Petitions shall have
also the same fate except to the extent that Rule 4(e) as amended shall B
have prospective application. In the Civil Appeals we leave the parties
to bear their own costs throughout. There would be no order for costs
in the Writ Petitions.

G.N. Appeals and Petitions dismissed.

,)
..

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