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1990 (5) TMI 223

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..... s are framed in this regard they must ordinarily be followed strictly. If the quota rule is prescribed by an executive instruction, and is not followed continuously for a number of years, the inference is that the executive instruction has ceased to remain operative. Thus the posts held by the permanent Deputy Engineers as well as the officiating Deputy Engineers under the State of Maharashtra belonged to the single cadre of Deputy Engineers. - C.A. 194 OF 1986 - - - Dated:- 2-5-1990 - Sharma, L.M. (J), Ramaswamy, K., Mukharji, Sabyasachi (CJ), Pandian, S. R. (J) And Sawant, P.B.,JJ. JUDGMENT 2.1 It is incorrect to say that the 1970 Rules indicate that the officiating posts were not included in the cadre of the Deputy Engineers. It is true that the use of word "promotions" in r. 8(i) of the 1960 Rules is not quite appropriate, but that by itself cannot lead to the conclusion that the officiating Deputy Engineers formed a class inferior to that of the permanent Engineers. One cannot attribute fixed connotation to the expression 'promotion' without reference to the context. The expression has been used in the sense of confirmation. The language used in several other ru .....

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..... tate Government and the language used therein amply supports this view. [921A-E] S.B. Patwardhan v. State of Maharashtra, [1977] 3 SCR 775 and P.Y. Joshi v.State of Maharashtra, [1970] 2 SCR 615, followed. State of Gujarat v.C.G. Desai Ors., [1974] 2 SCR 255, distinguished. Baleshwar Dass v. State of U.P. Ors., [1981] 1 SCR 449, referred to. 3.1 The quota rule was for the first time introduced by the 1960 Rules. These Rules were introduced through executive instructions issued by the State Government. The ratio of 3:1 was fixed for the purpose of "appointment" and not for the strength in the service. It permitted the State Government to exercise its discretion according to the demand of the exigencies, by using the expression "as far as practicable." There is no reason to so restrict the scope and meaning of the expression "as far as practicable". The quota rule must he held to be realistic and flexible, true to life rather than abstractly absolute. [923C-H; 924A-B] 3.2 When recruitment is from more than one source, there is no inherent invalidity in introducing quota system, but the unreasonable implementation of such a rule may attract the frown of the equality clause. .....

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..... rule are present in the cases, and the principle of seniority being dependant on continuous officiation cannot be held to have been defeated by reason of the ratio fixed by the 1960 Rules. 1926C-G] P.C. Sethi v. Union of India, [1975] 3 SCR 201 and N.K. Chauhan v. State of Gujart, [1977] 1 SCR 1037, relied on. S.B. Patwardhan v. State of Maharashtra, [1977] 3 SCR 775, affirmed. P.S. Mahal v. Union of India, [1984] 3 SCR 847 and V.B. Badami etc. v. State of Mysore Ors., [1976] 1 SCR 815, distinguished. Paramjit Singh Sandhu v. Ram Rekha Ors., [1979] 3 SCR 584; 907 A.K. Subraman v. Union of India, [1975] 2 SCR 979; Bishen Sarup Gupta v. Union of India, [1975] Supp. SCR 491 and S.G. Jaisinghani v. Union of India Ors., [1967] 2 SCR 703, referred to. 4. It is not possible to hold that the principle of seniority being dependant on continuous officiation will not apply to certain groups of the officers. The reasons for rejecting the case of the appellants in Patwardhan's case are equally applicable to all the promoted Deputy Engineers including those who were earlier Sub-Divisional Engineers and Sub-Divisional Officers, as well as all the directly recruited Deputy Engineer .....

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..... omplicated questions of unrivalled complexity with no earlier case comparable. The position as now stands is that the field of controversy on legal questions has been considerably narrowed down by the earlier decisions of this Court, but the relevant facts and the issues to be settled have multiplied by further events and subsequent rules framed under the Proviso to Article 309 of the Constitution. 2. For appreciating the controversy which has to be resolved, a brief survey of several sets of rules is necessary. The parties are Engineers in the employment of the State of Maharashtra excepting the petitioners in W.P. Nos. 3947-48 of 1983 who are in Gujarat service. Avoiding the details, the position may be briefly stated by dividing the entire period into 4 sub-periods and mentioning the scope of such of the provisions of the rules which have direct bearing on the questions involved in the present cases. By a resolution of the year 1937 of the Government of Bombay, two new Provincial Engineering Services described as the Bombay Engineering Service Class I consisting of posts of Chief Engineer, Superintending Engineers, Executive Engineers and Assistant Engineers Class I, and the B .....

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..... rable discussion during the hearing of present cases. By r. 5 of the 1970 Rules, Class I and Class II Services were redefined and r. 12(a) declared that the cadre of Deputy Engineers would consist of all the direct recruits, the confirmed Deputy Engineers and the other officers who were officiating as Deputy Engineers on 30.4. 1960. 3. During the period 1960-70 adequate number of direct recruits were not available, and a large number of promotees, therefore, had to be appointed to officiate as Deputy Engineers on continuous basis. These appointments were made after following the procedure applicable to regular promotions, including consultation with the Public Service Commission. By r. 12(b) the strength of the permanent Deputy Engineers was fixed at the total number of (a) the Deputy Engineers confirmed up to the date of commencement of the Rules, (b) direct recruits to the posts of Deputy Engineers appointed till the date of commencement of the Rules, and (c) the Deputy Engineers officiating on 30.4.1960; and it was provided that no fresh appointments in future would be made to this cadre and the vacancies arising would be transferred to the officers holding subordinate posts d .....

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..... 956 to 30.4.1960, that is, the date immediately after coming into force of the 1960 Rules. Rules were framed under Article 309 of the Constitution read with s. 81(6) of the Bombay Re-organisation Act, 1960, and were called the Reorganised Bombay State Overseers and Deputy Engineers Seniority Lists Rules, 1978, and have been referred to before us as the 1978 Rules. The seniority list of the Deputy Engineers as on 1.11.1956 which had been prepared earlier was declared by these Rules as valid and final. This was consistent with the decision in Patwardhan's case. The further seniority lists were directed to be prepared for the years 1957, 1958, 1959 and 1960 in accordance with the judgment in Patwardhan's case wherein the seniority of the promotee Deputy Engineers was made dependant on the continuous officiation subject to certain other conditions. 6. Since the preparation of the seniority lists and reversion of the direct recruits whose promotion was illegal, in view of the decision in Patwardhan's case, were being delayed, one Bagayat Patil, a promotee Deputy Engineer officiating as Executive Engineer, filed a writ application being W.P. No. 3483 of 1980 in the High Court for imple .....

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..... led the Maharashtra Service of Engineers (Regulation of Seniority and Preparation and Revision of Seniority Lists for Specified Period) Rules, 1982, hereinafter referred to as the 1982 Rules. The Preamble states that they were framed in view of the decision of the Supreme Court in S.B. Patwardhan v. State of Maharashtra and of Bombay High Court in W.P. No. 3483 of 1980. On their face, they are consistent with the aforesaid judgments, but by including two rules therein--Rules 4 and 9, deleted later--fixing rigid quota with retrospective effect, attempt was made to neutralise the decision and rob the promotees the 'benefit of their continuous officiation. Rule 9 (omitting the Explanation which is not relevant for the present purpose) read as follows: "9. Allocation of vacancies in cadre of Deputy Engineers for direct recruits and promotees.--The number of vacancies in the cadre of Deputy Engineers in every year during the specified period and in the fractional year shall be deemed to be equal to the number of vacancies actually filled in that year or, as the case may be, fractional year, and the first three-fourths of such vacancies in each year or in the fractional year shall be d .....

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..... ikant Bharat Sohoni, a direct recruit to Class II, who, besides challenging the 1978 Rules, has also attacked the validity of the 1982 Rules, although he did not file an appeal against the judgment of the High Court on this point. According to the learned counsel for the promotee respondents he was not concerned with the 1978 Rules at all but he mentioned the same in his application for the sole purpose of obtaining a rule on the ground of admission of Bhatia's writ petition. Encouraged by these two cases, several other writ petitions were also filed and have been heard along with the Civil Appeals. 11. Although the claim of the promotees to reckon the seniority according to the continuous officiation was accepted by this Court in Patwardhan's case in 1977, the State Government continued denying them the fruits of the litigation. The High Court on a complaint made by Bagayat Patil, took note of the delay and issued directions for implementation of the judgment. Still nothing was done till 1984 and an application for starting proceedings in contempt was made before the High Court. In the meantime a fresh writ petition being W.P. No. 660 of 1984 was filed by the direct recruits b .....

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..... hout considering the claims of all the eligible available persons and without following the rules of appointment, the experience on such appointment cannot be equated with the experience of a regular appointee, because of the qualitative difference in the appointment. To equate the two would be to treat two unequals as equal which would violate the equality clause. But if the appointment is made after considering the claims of all eligible candidates and the appointee continues in the post uninterruptedly till the regularisation of his service in accordance with the rules made for regular substantive appointments, there is no reason to exclude the officiating service for purpose of seniority. Same will be the position if the initial appointment itself is made in accordance with the rules applicable to substantive appointments as in the present case. To hold otherwise will be discriminatory and arbitrary. This principle has been followed in innumerable cases and has been further elaborated by this Court in several judgments including those in Baleshwar Dass v. State of U.P. and others, [1981] 1 SCR 449, and Delhi Water Supply and Sewage Disposal Committee and others v. R.K. Kashyap .....

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..... case were characterised as obiter dicta which cannot be held to be binding on this Court at a Subsequent stage, and the question whether the direct recruits and promotees were in the same cadre or held posts in two separate and distinct cadres must be answered in accordance with the decision in State of Gujarat v.C.G. Desai and others, [1974] 2 SCR 255 in favour of the appellants. Developing his argument Mr. Tarkunde said that since the 1960 Rules and the 1970 Rules were perfectly valid, they clothed the direct recruits with right of seniority over the promotees which could not be retrospectively taken away in view of their fundamental rights under articles 14 and 16 of the Constitution. He further urged that the quota rule applicable to the Service under the 1960 Rules was binding on all concerned and the High Court has in the Dafle-Lele case erred in quashing rr. 4 and 9 of the 1982 Rules. The plea of the respondents that the quota rule was not strictlly enforceable on account of the words "as far as practicable" in r. 1(b) of the 1960 Rules or that it was relaxed Or given up later has been denied and it is said that the appointments of the promotees in excess of the quota, there .....

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..... dly the appointment of all the direct recruits was made as against the permanent vacant posts and on their successfully completing the probationary period they were confirmed against those posts while the promotees were posted in the temporary posts as officiating Deputy Engineers. Rule 80), according to the appellants, therefore, makes a clear distinction between the two groups, which could not be lumped together. Reliance was also placed on the language of rr. 5, 6, 12(a), 30 and 33 of the 1970 Rules. We are not in a position to agree with the learned counsel that the rules indicate that the officiating posts were not included in the cadre of the Deputy Engineers. It is true that the use of word "promotions" in r. 8(i) of the 1960 Rules is not quite appropriate, but that by itself cannot lead to the conclusion that the officiating Deputy Engineers formed a class inferior to that of the permanent Engineers. As was stated with reference to the expressions like 'substantive capacity', 'service' and 'cadre' in Baleshwar Dass v. State of U.P. and others, [1981] 1 SCR 449 (at page 463 C-E), we cannot attribute fixed connotation to the expression 'promotion' without reference to the con .....

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..... entions, is respected rather than scrutinised for finding out any possible error. It is not in the interest of the Service to unsettle a settled position every now and then. Besides, the learned counsel for the parties have placed the rival arguments on the issue in great detail with reference to every available material, and in our opinion the finding was correctly arrived at. We also agree that the interpretation given in P.Y. Joshi and Others v. The State of Maharashtra and Others, [1970] 2 SCR 615, by a Bench of 5 Judges on r. 8 of the 1960 Rules, which answers one of the main grounds of the direct recruits in support of two-cadre theory, must be respected. Mr. Tarkunde has attempted to distinguish P.Y. Joshi's case and has challenged the correctness of the observations at page 795 of the judgment in Patwardhan's case. We do not agree with the learned counsel. The dispute in that case was in respect of promotion of promotee Deputy Engineers to posts of officiating Executive Engineers. Rule 7(ii) of the 1960 Rules prescribed, as a necessary condition for promotion, the minimum service of seven years as Deputy Engineer. The respondent in P.Y. Joshi's case were elgible, provided t .....

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..... uccessfully competed at an examination for direct recruitment to Class II Service held by the Public Service Commission and was appointed as Permanent Deputy Engineer. For the purpose of his promotion to the higher cadre he relied on his officiating service before he was selected as a direct recruit, which was denied by the Government. In a writ case his claim was accepted as legitimate by the High Court. This decision was challenged before this Court; and it was held by the judgment in the reported case that the respondent was not entitled to count his experience as officiating Deputy Engineer before his selection as a direct entrant in the Service. It was, inter alia, observed that if a person like the respondent leaves his position in the long queue of officiating Deputy Engineers with a view to avoid the tortuous wait for promotion and takes a short-cut, "he gives up once for all the advantages and disadvantages" of continuing as an officiating Deputy Engineer and accepts all the handicaps and benefits which attached to the group of direct recruits. "He cannot, after .his direct recruitment claim the benefit of his preselection service and thus have the best of both the worlds. .....

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..... e available by the State earlier. There is serious controversy as to the interpretation of these documents alleged to have been later discovered by the direct recruits and in our opinion they do not furnish any evidence of substantial nature to outweigh the materials produced by the State in Patwardhan's case including the aforementioned resolutions. In the circumstances, we do not consider it necessary to discuss this question any further and close the issue by holding that the officiating Deputy Engineers were in the same cadre with the other Deputy Engineers in permanent posts. 19. It has been next contended that even if the decision in Patwardhan's case be held to be correct, and it is assumed that the posts of officiating Deputy Engineers are also included in the cadre of permanent Deputy Engineers, rr. 4 and 9 of the 1982 Rules could not have been challenged as illegal and the decision of the Bombay High Court in Dafle-Lele case striking down these rules is erroneous and fit to be over-ruled. It was pointed out that the 1984 Rules flamed as a result of the said decision expressly stated that they were subject to the result in the Special Leave Petitions No. 16614-15 of 1983 .....

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..... ervations in Bishan Sarup Gupta v. Union of India and others, [1975] Supp. SCR 491, it was urged that collapse of quota rule does not make seniority dependant on continuous officiation. It calls upon the Government to frame better rules to meet the requirements of the situation. 20. The quota rule was for the first time introduced by the 1960 Rules. As already mentioned, these Rules were introduced through executive instructions issued by the State Government. The statutory rules which were holding the field earlier did not fix any ratio between the direct recruits and the promotees. Rule 1 of the 1960 Rules which is relevant in this context is quoted below: "1. Appointment to the Bombay Service of Engineers, Class I and Class II, shall be made either-- (a) by nomination after a competitive examination held by the Bombay Public Service Commission hereafter called the Commission in accordance with the rules appended, or (b) by promotion from amongst the members of the lower cadres concerned. Provided that the ratio of the appointment by nomination and by promotion shall, as far as practicable, be 75:25." It will be noticed that the ratio of 3:1 was fixed for the purpose of "ap .....

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..... and eligible officers were subjected to all the tests including scrutiny by the Public Service Commission before they were promoted. The reason for not adhering to the quota rule was admittedly the non-availability of the direct recruits and was specifically mentioned in the Government's resolution of 1970 as a reason for replacing the old rules by new ones. Mr. Singhvi, the learned counsel for the respondents, argued that having regard to the relevant facts and circumstances, there is no escape from the conclusion that the quota rule spelt out by the executive instructions in the 1960 Rules had in fact collapsed, and that this fact can be recognised even without issuing a formal amending instruction. It is permissible to draw an inference to that effect by the steps taken by the State Government, repeatedly and for a considerable period, in disregard of such a rule, and specially so where the quota is not fixed in imperative terms. Reliance was placed on the observations at page 209 of the judgment of this Court in P.C. Sethi and Others v. Union of India and Others, as reported in [1975] 3 SCR 201. The quota of direct recruits in that case had not been enforced "perhaps for good r .....

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..... rule and the effect of its violation, but do not profess to lay down the universal rule applicable. to every case irrespective of the other relevant circumstances arising therein. On the other hand, the decisions cited by Mr. Singhvi deal with circumstances similar to those in the present cases and are illustrative of situations where the general rule has to yield to just exceptions. Indeed, Mr. Tarkunde himself attempted to distinguish them on the ground that the government had relaxed the quota rule in those cases. The fallacy in the argument, however, is that the present cases are also of the same category. 23. Mr. Tarkunde is fight that the rules fixing the quota of the appointees from two sources are meant to be followed. But if it becomes impractical to act upon it, it is no use insisting that the authorities must continue to give effect to it. There is no sense in asking the performance of something which has become impossible. Of course, the Government, before departing from the rule, must make every effort to respect it, and only when it ceases to be feasible to enforce it, that it has to be ignored. Mr. Tarkunde is fight when he says that in such a situation the rule sh .....

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..... pport the respondents on several relevant aspects, as for example, the statement at pages 990H991B in the judgment in A.K. Subrman's case as reported in [1975] 2 SCR 797 to the following effect: "It is submitted by the respondents that one-third quota cannot be filled unless the two-third quota was exhausted. This, in our view, will introduce sterility in the quota rule so far as the promotees are concerned. Their hopes and aspirations cannot be related to the availability or non-availability of the direct recruits to fill the twothird quota. Each quota will have to be worked independently on its own force. The word "rest" in the quota rule cannot be pressed into service to defeat the object of the rule coming in aid of advancement of prospects of promotees in the hierarchy of the Service." 26. Relying on the observations at page 505H of the judgment in Gupta's case reported in [1975] Supp. SCR 491, Mr. Tarkunde strenuously urged that even on the assumption that the quota rule in the present cases had, in fact, broken down, it was imperative on the part of the Government to have framed fresh workable rules before promoting the respondents. The learned counsel for the promotees .....

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..... ce of r. 8(i) that "the number of such promotions shall be about 1/3rd the number of direct recruits appointed in that year" would apply to initial appointments and cannot govern the confirmation of those who have already been appointed to Class II cadre. In other words, direct recruits and promotees have to be appointed in ,the proportion of 75:25 to Class II cadre, the former as Deputy Engineers and the latter as officiating Deputy Engineers, but once that is done, the quota rule would cease to apply with the result that confirmations in the post of Deputy Engineers are not required to be made in the proportion in which the initial appointments had to be made. Thus rule 8(i) only requires that for every three direct recruits appointed as Deputy Engineers only one promotee can be appointed as officiating Deputy Engineer. The rule cannot be construed to mean that for every three confirmations of Deputy Engineers, not more than one promotee can be confirmed as Deputy Engineer." Relying upon the observations in the Patwardhan's case that the quota system was an important feature of the 1960 Rules, it was contended by Mr. Tarkunde that it is not permissible to hold that the rule in .....

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..... urged that as a result of the judgment in Patwardhan's case it was not necessary to frame the entire rules afresh, inasmuch as only r. 8(iii) of the 1960 Rules and r. 33 of the 1970 Rules had been struck down. The grievance against the 1982 Rules is that it has disturbed the order of seniority of the parties with retrospective effect, which is illegal. The argument has to be rejected as it fails to take note of the finding that the direct recruits who joined the service later than the promotees were at no point of time senior.The 1982 Rules merely recognised this position and gave effect to it. They have (excepting the arbitrary and discriminatory provisions of rr. 4 and 9) undone the inequality, inequity and illegality which were the products of the offending provisions of the earlier Rules, and there is no reason whatsoever to doubt their validity. 30. The judgment of the Bombay High Court striking down rr. 4 and 9 of the 1982 Rules has been seriously criticised on behalf of the appellants. The grounds of challenge, however, are the same which have been considered earlier. Excepting the State of Maharashtra challenging this judgment in S.L.P. Nos. 16614-15 of 1983 no other par .....

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..... lass III, and quota should have been fixed separately for 3 classes right up to the top stage where appointments are to be made by promotion. He prayed for a direction to the authorities to frame fresh rules including appropriate provisions on the lines suggested by him. In view of our finding that the 1982 Rules as amended by the 1984 Rules do not suffer from any infirmity, there is no occasion for issuing any further direction. So far the question of fixing the ratio of the appointments from different sources is concerned, it is a matter of policy for the Government and it is not for us to offer our advice. 33. The petitioner in W.P. No. 5187 of 1983, S.B. Sohoni, was directly appointed as a Deputy Engineer in March 1961 and was confirmed in 1963. It was, therefore, rightly pointed out by Mr. Sighvi that he was not concerned with the 1978 Rules at all. The writ petition, in absence of grounds relating to the 1978 Rules, confirms this impression. He has of course challenged the 1982 Rules, as they stood before the amendment in 1984, but did not, after 1984 amendment, make any prayer for modification of his writ petition. He also did not consider it necessary to file an appeal ag .....

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..... rit petitions. The relief prayed for on behalf of the petitioner in the present case is the same as he would have, in the event of his success, obtained in the earlier writ petition before the High Court. The petitioner in reply contended that since the special 'leave petition before this Court was dismissed in limine without giving any reason, the order cannot be relied upon for a plea of res judicata. The answer is that it is not the order of this Court dismissing the special leave petition which is being relied upon; the plea of res judicata has been pressed on the basis of the High Court's judgment which became final after the dismissal of the special leave petition. In similar situation a Constitution Bench of this Court in Daryao and Others v. The State of U.P. and Others, [1962] 1 SCR 574, held that where the High Court dismisses a writ petition under article 226 of the Constitution after hearing the matter on the merits, a subsequent petition in the Supreme Court under Article 32 on the same facts and for the same reliefs filed by the same parties will be barred by the general principle of res judicata. The binding character of judgments of courts of competent jurisdiction .....

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..... would have been eligible for promotion to the rank of Executive Engineer three years earlier, that is, in 1966. On account of this delay in his promotion he seriously suffered by the further delay in his next promotion as Superintending Engineer by a considerable 934 period. With reference to the criticism against the 1941 Rules in the judgment of Patwardhan's case the petitioner urged that the same should be treated as passing remarks. fit to be ignored. Alternatively he has adopted the arguments addressed on behalf of the appellants challenging the correctness of the decision in Patwardhan's cast 38. As has been stated earlier, the seniority list of the Deputy Engineers for the period up to 1.11.1956 was confirmed in the Patwardhan's case. The question of determining the seniority for the subsequent period arose in pursuance of the further decision in this judgment. The 1960 Rules were enforced with effect from 30.4.1960 which introduced, for the first time, several new provisions including the quota rule. The period from 1.11.1956 to 30.4.1960 was, therefore, separately dealt with by framing the 1978 Rules under Article 309 of the Constitution. In accordance with the decisio .....

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..... d to depend upon the unguided pleasure of the Government for orders of confirmation. In the pre-Constitution era, such hostile treatement had to be suffered silently as a necessary incident of government service. It has to be remembered that the 1941 Rules, made under an executive instruction, do not stand on a stronger footing than the provisions of the subsequent similar Rules which have been struck down on the ground of illegal discrimination; and as in the case of the 1982 and the 1984 Rules, the 1978 Rules also were framed under Article 309 of the Constitution. No valid objection can be taken against the 1978 Rules made for undoing the wrong resulting from arbitrariness and offensive discrimination which had visited the promotees. 40. Mr. Bhatia has, by his written argument, belatedly alleged mala fides on the part of the State Government on the ground that it failed to prepare and publish select fists for a number of years and it attempted to mislead this Court by not stating the correct position in regard to the cadre of the Deputy Engineers and the 1941 Rules. We do not find any justification for the petitioner or any other direct recruit to urge lack of bona fides on .....

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..... affidavit on behalf of the State of Maharashtra was filed inter alia denying several allegations in the writ petitions explaining certain circumstances by giving all the relevant materials, and explaining the situation. S.B. Patwardhan, the petitioner in the reported case, also intervened and refuted the claim of the petitioners. The respondent no. 4 has retired in the meantime and has not appeared in this case. The petitioner no. 1, after making a very brief argument, filed written submissions, but since in our view the Patwardhan's case was correctly decided, the State was under a duty to prepare fresh seniority lists for the period 1.11, 1956 to 30.4.1960, and this was done after framing the 1978 Rules. We do not find any merit in the challenge to the 1978 Rules, as indicated earlier, and in that view these writ petitions are fit to be rejected, specially as the respondent No. 4 has already retired. 43. The only other case which was separately argued on behalf of the petitioners was Writ Petition No. 12570-72 of 1983. Mr.'Vinod Arvind Bobde, the learned counsel for the petitioners, in a brief submission adopted the argument of Mr. Tarkunde and reiterated that the finding in .....

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