Holding

Seniority between direct recruits and departmental promotees within their respective quotas is to be determined by the length of continuous officiation in the ACSO grade from appointment to substantive vacancy, and temporary promotions under Note 2 do not confer seniority and must be terminated when direct‑recruit vacancies are filled.

Summary

The case concerned the inter‑se seniority of Assistant Civilian Staff Officers (ACSOs) recruited directly (DR) versus those promoted from within the department (DP) under the Armed Forces Headquarters Civil Service Rules, 1968. The Central Administrative Tribunal (CAT) in M.G. Bansal's case had held that seniority should be based on the length of continuous officiation in the ACSO grade from appointment to a substantive vacancy within each source's quota. The High Court later set aside that order, allowing DRs to claim ante‑dated seniority and to carry forward unfilled quota slots. The Supreme Court rejected the High Court's view, reaffirming the CAT's ruling that seniority is determined by continuous officiation and that temporary promotions under Note 2 do not confer seniority and must be reverted when direct‑recruit vacancies are filled. Consequently, the Court directed the government to fix the seniority list in accordance with the CAT's decision within three months. The appeals were partly allowed.

Issues considered

Whether seniority between Direct Recruits and Departmental Promotees regularly appointed/promoted within their respective quota should be determined by the length of continuous officiation in the grade of ACSO from their appointment to substantive vacancies under Schedule III of the Rules.
Whether incumbents appointed temporarily from one source in excess of their quota, utilizing the quota of the other source, may retain seniority for the period of such temporary officiation, or must be reverted when direct‑recruit vacancies are filled.

Subjects

service lawseniorityquota rulepromotionArmed Forces Headquarters Civil Service Rulesdirect recruitdepartmental promoteeinter se seniorityRule 16Note 2temporary promotionSupreme Court

Judgment

~·
[2008) 2 S.C.R. 1183

-I
';..
AFHQ/ISOs SOs (DP) ASSOCIATION & ORS.
II.
UNION OF INDIA & ORS.
(Civil Appeal No. 1384 of 2008)
A

-' FEBRUARY 19, 2008
(H.K. SEMA, ALTAMAS KABIR AND
LOKESHWAR SINGH PANTA, JJ.)
B

Service Law:
Armed Forces Headquarters Civil Service Rules, 1968 c
-"' - Rule 16, Schedule Ill - Promotion of Assistants to the grade.
of Assistant Civilian Staff Officers - Direct recruits and
promotees regularly appointed/promoted within their
respective quota - Inter se seniority between - Determination .
of - Held: Is on basis of length of continuous officiation in the · D
grade of ACSO from their respective appointment to
substantive vacancies within their quota - On late induction of
direct recruits, quota reserved for them does not lapse nor
quota rule breaks down - Continuous officiation in service
without break gives them benefit of seniority - But, when E
recruitment is from two sources and quota is prescribed, person
from one source cannot take benefit available to other source
within quota - Promotees who have been promoted within their
quota of 75% under the Rules would get benefit of continuous
officiation from the date of their substantive appointment to .F
the substantive post - Those appointed temporarily from the
"' cadre of Assistants to that of Assistant Civilian Officers
temporarily would not get benefit - They would be reverted
when nominees join from UPSC.
In year 1968, the Armed Forces Headquarters Civil G
--. ~
Services Rules, 1968 were framed and service were
classified in various grades like Assistant Civilian Staff
Officers (ACSOs) and Assistants etc. The relative seniority
of Direct Recruits and promotees was to be regulated in
1183 H
1184 SUPREME COURT REPORTS [2008] 2 S.C.R.

A accordance with the provision made in the Third
Schedule of the Rules.
The respondents-Union of India published seniority
list of 1977 based on the principle of ante-dated seniority
of ACSOs Direct Recruits (OR). Some of the ACSOs L
8 Departmental Promotees (OP) filed writ petition titled as
MG Bansal v. UOI on the ground that quota rule was
applied discriminately without having regard to the
appointed service and the DR who joined later were made
senior to promotees ACSO who were regularly promoted
C earlier to OR. The tribunal by order dated 20.11.1992 held
that the determination of seniority of promotees and direct
recruits on basis of quota and rota is valid; that there was
no breakdown of quota prescribed in the rules; and that
the seniority between direct recruits and promotees
D regularly appointed/promoted within their respective
quota was to be determined on basis of length of
continuous officiation in the grade of ACSOs.
The respondents-Union of India started splitting up
vacancies from year 1992 and prepared two separate
E · select list for each year retrospectively for the grade of
ACSOs. Prior to implementation of the order in MG
Bansal's case, in 1995 draft seniority list was issued based
on the principle of carrying forward of slots and ACSO
(ORs) were given about 10 to 15 years seniority even
F when they were not holding any office in service. AR and
others-ACSOs (DPs) filed application titled as Smt. Ammini
Rajan and Ors. v. UOI challenging the Select List of
Assistants for promotion to the grade of Assistant Civilian
Staff Officers from 1977 to 1982 and also the Seniority List
G of ACSOs for the years 1988-89 and 1989-90 for promotion
to further grade of Civilian Staff Officers (CSOs) since it
was contrary to the directions of the Tribunal in MG
Bansa/'s case and in violation of AFHO Civil Services
Rules, 1960. The tribunal disposed of the matter by order
H dated 01.04.2002. It directed that the seniority between
~··
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1185
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]

direct recruits and promotees regularly appointed/ A
~
promoted within their respective quota was to be
determined by counting the length of continuous
officiation in the grade of ACSO from their respective
appointment to substantive. vacancies. AFHQ (DRs) Civil
Service Officers' Association and Union of India filed B
separate writ petition challenging the order of the tribunal
·~
in Smt. Ammini Rajan's case which were allowed by order
dated 14.11.06. The order of the Tribunal was set aside
directing that the seniority would be determined in
accordance with the judgment of the tribunal in MG Bansal c
/ and Ors. v. UOl's case. Departmental Promotees ACSOs-
AR and others also filed writ petitions which were ,
dismissed and that of AFHQ Civil Service Officers was
disposed of by order dated 15.01.2007. Hence the present
appeals.
D
The questions which arose for consideration in these
appeals were:
(i) Whether seniority between Direct Recruits and
Promotees regularly appointed/promoted within their
respective quota was to be determined by the length of E
the continuous officiation in the grade of ACSO from their
respective appointment to the substantive vacancies
under Schedule Ill of the Rules within their quota.
(ii) Whether the incumbents belonging to one source F
; in excess of their own quota and utilizing the quota of the
incumbents belonging to another source would only
officiate in the promoted post and that the direct recruits
when inducted in service through selection by UPSC, the
promotees in the quota of direct recruits on basis of Note
G
(2) of the Rules of Schedule Ill would either be reverted or
...... ~ would be absorbed in the vacancies within their quota of
subsequent year and the period of officiation outside their
quota of either of the incumbents from other source would
not count for their seniority.
H
t-
1186 SUPREME COURT REPORTS [2008] 2 S.C.R.

A Partly allowing the appeals, the Court
-I('
'
HELD: 1. The relative seniority between the direct I

recruits and regularly appointed/ promoted candidates
within their respective quota, shall be determined by the
length of the continuous officiation in the grade of ACSO
B from their respective appointment to the substantive
vacancies in terms of Schedule Third within their quota
as held by the tribunal in M.G Bansa/'s case, which has
attained finality after dismissal of the SLPs filed against
the said order of the Tribunal. (Para 28) [1215-C-D]
c 2.1 From the provisions of Third Schedule of the
Armed Forces Headquarters Civil Service Rules, 1968, it
is clear that substantive vacancies to the extent of 75%
shall be made in the order of seniority of temporary
' -
officers of the Grade, who have completed the period of
D probation successfully and 25% of the substantive
vacancies shall be filled by direct recruitment on the basis
of qualifying Combined Competitive Examination held by
the Commission for recruitment to the Central Services,
Group 'A' /Group '8'. The relative seniority of the above
E categories of officers shall be determined according to
the rotation of vacancies between departmental
promotees appointed to the substantive posts and direct
recruits which shall be bas~d on the quota of vacancies
reserved for each source. Note (2) under the Third
F Schedule of the Rules provides that "substantive
vac,ancies" meant for direct recruits may be filled
temporarily by promotion from amongst Assistants on the
basis of selection, but such promotions shall be terminated
when the nominees of the Commission become available
G to fill the substantive vacancies in 25% quota. (Para 21)
[1206-C-E]
2.2 Note (2) to the Third Schedule mandates that ~ -· '
substantive vacancies at (b) may be filled temporarily by
promotion from amongst Assistants on the basis of
H selection. Such promotion shall be terminated when the
-i AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1187
OF INDIA & ORS.

nominees of the Commission would become available to A
)I..
fill the substantive vacancy. In the AFHQ Civil Service,
promotions were made against direct recruit vacancies
after the vacancies had been notified to the Public
Commission. The promotions were temporary and the
promotees were given seniority in accordance with Rule B
16.S(ii) and after completing their probation, they were
confirmed only when substantive vacancies were found
available in their quota. Therefore, the inter se seniority
was, only between substantive vacancy promotees and
substantive direct recruits. All promotee substantive c
ACSOs were assigned seniority under Rule 16(1),
whereas all direct recruits were assigned seniority under
Rule 16.6. Thereafter, these two seniority lists of
substantive officers from the two sources of recruitment
are integrated under Rule 16.7, in accordance with the
well-known principle of quota rota rule. Thus, it is evident
D
that the late induction of the direct recruits does not
interfere with the seniority of the promotees under Rule
16.5. (Para 23) [1208-D-H]
2.3 Note (2) to the Third Schedule is to be read with E
Rule 11.1 of the Rules and the Regulations made
~
thereunder so that substantive vacancies shall be
intimated to UPSC well within time. Note (2) is an enabling
provision insofar as it permits the Government to fill the
vacancies temporarily through selection. There is a F
... mandate in Note (2) that these promotions will be
terminated when the direct recruits would join the post.
Thus, by the time the direct recruit had come or is likely to
come, such a promotee who happens to occupy a berth
of the direct recruit by virtue of Note (2) t9 Schedule Third
G
will normally, because of his seniority, get a berth in his
...- ,.. own quota. The order of the Tribunal shows that the
applicants and the interveners, however, could not furnish
any data to show that the promotees, who are occupying
.. · the berth of direct recruits under Note (2) temporarily, were
H
.
I
•.
~
1188 SUPREME COURT REPORTS [2008] 2 S.C.R.

A subsequently got adjusted in the prescribed quota of
departmental promotees against the· substantive .l(

vacancies. No time-limit is prescribed in Note (2) during
which such temporarily promoted Assistants to the grade
of ACSOs in the quota of direct recruits can enjoy that
B benefit. Note (2) only provides that whenever direct
recruits become available, the appointment of such
promotees shall stand terminated. No other interpretation
't'
of Note (2) can be possible. (Para. 24) [1209-A-E]
2.4 Note (2) to the Third Schedule safeguards the
c interest of the direct recruits, who though are successful
)
in the Civil Service Examination conducted by the UPSC
and yet are waiting for their appointment as the
appointment of the direct recruits is bound to take some
time. Merely because there is late arrival of direct recruits,
D the quota reserved for them cannot be taken as lapsed
nor can it be taken to have led to break down of the quota
rule. The relevant rules clearly envisage that the -of
continuous officiation in a service without break also
gives the benefit of seniority, but in a case where the
E recruitment is from two sources and the quota is
prescribed, then the person from one source cannot take.
the benefit available to the other source within the quota. ,_
Thus, promotees who have been promoted within their
quota of 75% under the rules as prescribed under Third ~~

F Schedule read with Rule 16(7) of the Rules would get the
benefit of continuous officiation from the date of their ')-
substantive appointment to the grade of availability of a
substantive post and after having worked on temp_orary
basis in the grade. Those who have been appointed
temporarily under Note (2) from the cadre of Assistants to
G
the grade of Assistant Civilian Officers temporarily, would
not get the benefit of their continuous officiation and shall
~ -"":
be liable by operation of law to be reverted or there shall
be deemed reversion when the nominees from the UPSC
would join on the recommendations of the UPriC. Such
H '
t /
~ AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1189
OF INDIA & ORS.

temporary officers may not actually face reversion A
because by the time the vacancies of the next year may
become available in their quota of 75% and they can very
well, by virtue of their seniority, earn the benefit of
substantive appointment under the Third Schedule. (Part
24) [1209-E-H; 1210-A-C] B
2.6 The High Court by its impugned order dated
14.11.2006, held that the order of the Tribunal in
Smt.Ammini Rajan's case is contrary to its earlier decision
passed in M.G Bansa/'s case. The High Court directed
the issue of seniority to be determined as it was done prior c
to Smt. Ammini Rajan's case was decided by the Tribunal.
The High Court further held that the direction of the
tribunal where it is held that the seniority of DRs should
be determined from the date of joining and further that
the unfilled vacancies and not the slots can be carried D
forward, is contradictory to the decision of the tribunal in
.,.. M.G. Bansal's case. The reasoning of the High Court
cannot be accepted. The judgment of the High Court
setting aside the order of the Tribunal in Smt. Ammini
Rajan's case would plainly amount to interference with E
the decision in M.G Bansal's case and further if the order
of the High Court is given effect to, the result thereof would
be that the DRs. would be permitted to take advantage of
more than 12 years of ante-dated seniority without holding
an office. The petition filed by Smt. Ammini Rajan was F
primarily seeking implementation of the earlier decision
" in Shri M.G Bansa/'s case. On bare examination of the
decision in Smt. Ammini Rajan' case, no discrepancy, no
contradiction or overlapping or inconsistency whatsoever
in the said order is found as compared to the earlier
G
decision in_M.G Bansal's case. Therefore, the order of the
... ,.. High Court is erroneous as it erred in understanding and
appreciating the gist of the order recorded in Smt. Amminl
Rajan's case. (Para 25) [1210-E-H; 1211-A-D]
2.7. In 'light of the factual situation, service rules H
1190 SUPREME COURT REPORTS [2008] 2 S.C.R.

A governing the conditions of service of employees and the
~
settled proposition of law, the judgment and order dated
14.11.2006 and 15.01.2007 of the High Court are not
sustainable and are set aside to the extent of setting aside
the order of the tribunal in Smt. Ammini Rajan's case
B holding that the said order is contrary to the earlier
judgment in M.G Bansal's case. This view of the High Court
apparently appears to be contrary and contradictory to ..,,.
the judgment and order of the tribunal in M.G. Bansa/'s
case. ·The Writ Petition of the AFHQ Civil Service (Direct
c Recruits-Gazetted) Officers' Association and Union of India
against the order of the tribunal in Smt. Ammini Rajan's
case are dismissed. The writ petition filed by the DPs is
allowed accordingly. Writ petition of AFHQ Civil Service
Officer stand disposed of in terms of this judgment. The
D respondent-authority is directed to determine the issue
relating to inter se seniority between the DPs and DRs in
strict compliance of M.G Bansal's case within 3 months.
(Para 32) (1216-G-H; 1217-A-G] -t

O.P Sing/a & Anr. etc. v. Union of India & Ors.(1984) 4
E SCC 450 - distinguished.
Suraj Prakash Gupta & Ors. v. State of J &K & Ors. (2000)
7 SCC 561; State of Uttaranchal & Anr. v. Dinesh Kumar
Sharma (2007) 1 SCC 683; M. Subba Reddy & Anr., etc. v. A.
P State Road Transport Corporation & Ors. (2004) 6 SCC 729;
F Arvinder Singh Bains v. State of Punjab & Ors. (2006) 6 SCC
673; Gonal Bihimappa v. State of Karnataka & Ors. 1987
Suppl. 207;Smt. Ammini Rajan & Ors. v. Union of India &
Ors. O.A. No.1356/1997 decided on 1.04.2002; Shri M. G.
Bansal & Ors. v. Union of India & Ors. TA No.356/1985(CW 3/
G 78) decided on 20.11.1992 - referred to.
CIVILAPPELLATE JURISDICTION: Civil Appeal No. 1384
of 2008.
From the Judgment and order dated 14/11/2006 and 15/
H 01/2007 of the High Court of Delhi at New Delhi in CWP Nos.
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1191
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]

,. 4058 & 5396/2002 and CWP No. 18073/2005 respectively. A
WITH

Civil Appeal No. 1385 of 2008.
Paramjit Singh Patwalia, Rakesh Khanna, Kiran Suri, S.J.
Amith, V.K. Sidharthan and Shailja Sinha for the Appellants. B
...,,
Sidharth Dava, Dharmendra Kumar Sinha, Murli Manohar
Singh and Sharad Pandey for the Respondents.

Ammini Rajan, Baldev Singh, R.K.D. Mangal and G.K.
..... Pandey, Respondents-In-Person . c
P. Vishwanath Shetty, Ashok Bhan, Aruna Gupta and D.S.
Mehra for UOI.
The Judgment of the Court was delivered by
D
LOKESHWAR SINGH PANTA, J. 1. Leave granted.
1'·
2. The usual question as regards determination of inter se
seniority between Direct Recruits (DRs) and Departmental
Promotees (DPs) once again falls for consideration in these
two appeals by special leave, therefore, for the sake of E
convenience, they are being heard and decided by this common
judgment.
3. These appeals are directed against the judgment and
order of the High Court of Delhi dated 14th November, 2006 in
, -of C.W.P. No. 4058/2002; C.W.P. No. 4458/2002; C.W.P. No. 5396/ F
2002 and C.W.P. No. 62/2003 and order dated 15th January,
2007 in C.W.P. No. 18073/2005, whereby and whereunder the
order dated 1st April, 2002 in O.A. No. 1356/1997 (Smt.Ammini
Rajan & Ors. v. Union of India & Ors.) of the Central
Administrative Tribunal, Principal Bench, New Delhi, is set G
_,, aside.
,,,,,... 4. The Central Administrative Tribunal (hereinafter referred
to as "the Tribunal") allowed the said O.A. filed by Smt. Ammini
Rajan & Ors. challenging the Select List of Assistants for
H
1192 SUPREME COURT REPORTS [2008] 2 S.C.R.

A promotion to the grade of Assistant Civilian Staff Officers ·<
(hereinafter referred to as "ACSOs") of Armed Forces
Headquarters(AFHQ) Civil Services for the years 1977, 1978
and 1979 which was circulated vide letter dated 2nd July, 1996;
the Select List for the year 1980 which was circulated vide
B another letter dated 20 .09 .1996; the Select List for the year 1981
circulated vide letter dated 20.11.1996 and also the Select List
.,..
of 1982 circulated vide letter dated 14.03.1997. The applicants
were also aggrieved by the consequential Seniority List of
ACSOs of AFHQ Civil Services prepared by the Departmental
c Promotion Committee (for short "the DPC") for the years 1988-
89 and 1989-90 respectively for promotion to further grade of
Civilian Staff Officers (CSOs). B_ased on the revised Select List
in the grade of ACSOs, the claim of the applicants was that the
Select List and the Seniority List for promotion to the grade of
CSOs were drawn in contravention of the directions given by
D
the Tribunal in TA No.356/1985 (CW 3/78) rendered in Shri M. G
Bansal & Ors. v. Union of India & Ors. on 20th November, 1992 ·-t

and also in violation of AFHQ Civil Services Rules, 1968.
5. The Tribunal, on consideration of the entire material on
E record, disposed of O.A. No. 1356 of 1997 (Smt. Ammini
Rajan's case) with the following directions:-
(i) Impugned ordersAnnexure-A-1 andA-2 are quashed.
The respondents are directed to determine the
seniority between the direct recruits and promotees
F regularly appointed/promoted within their respective
quota by counting the length of continuous officiation
in the grade of ACSO from their respective
appointment to the substantive vacancies within their
quota in accordance with the Rule 16(7) of the AFHQ
G Rules and Schedule Ill of the Rules. In the case of
promoteesACSO, the length of continuous officiation ~ ..
in the grade will be determined from the date when
they are promoted in substantive vacancies in their
lawful quota. In case of direct recruits ACSO, their
H seniority shall be determined from the year in which
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1193
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]
they joined the service. While determining seniority, A
respondents are directed to adhere to the DPC year
in case of promotee officer and to retain as 1st
October to 30th of September of the following year
as provided in the rules/regulations.
(ii) Respondents are further directed to prepare single B
Select List in a year for the ACSO grade and they
cannot report to two separate lists for the purpose of
merely identifying the Note (2) Schedule Ill vacancies
as the rules do not envisage the same.
(iii) Respondents are further directed that the vacancies
c
of DR quota may be carried forward but while
determining the seniority the slots of the vacancies
left unfilled by the DR quota shall not be carried
forward for the purpose of determining seniority.
D
'+·
(iv) It is further directed that after finalizing the seniority
list, the department shall prepare eligibility lists for
the purpose of promotion to the next higher grade.
(v) These directions may be implemented within a period
of 6 months from the date of receipt of a copy of this E
order. No costs.
6. Aggrieved by the order of the Tribunal, theAFHQ (DRs)
Civil Service Officers' Association filed Writ Petition No. 4058
of2002, the Union of India filed separate Writ Petition No. 5396/ F
2002 and some of the Departmental PromoteesACSOs, namely,
Shri K.S. Dhingra and Smt. Ammini Rajan, filed W.P. Nos. 4458/
2002 and 62/2003 respectively, whereas AFHQ Civil Services
_,) Officers filed C.W.P. No. 18073/2005 in the High Court of Delhi.
-1
The Division Bench of the High Court allowed the Writ Petition G
.... )..
Nos. 4058/2002 and 5396/2002 by an order dated 14.11.2006
and set aside the order dated 01.04.2002 recorded by the
Tribunal in OA No. 1356/1997 with further direction to the
respondent-Union of India to determine the issue of seniority in
accordance with the judgment of the Tribunal in TA No. 356/
H
\.-
,
~

1194 SUPREME COURT REPORTS [2008] 2 S.C.R.

A 1985 dated 20 1h November, 1992. C.W.P. No. 62/2003 and ~

C.W.P. No. 4458/2002 filed by the DPs were dismissed and
CWP No.18073/2005 was disposed of on 15.01.2007 on the
basis of direction in the above-said writ petitions. These appeals,
therefore, arise from the said judgments and orders of the High
B Court.
;----
7. The case of the parties is that prior to the year 1968, the "(
AFHQ Civil Services were governed by the executive instructions
as there were no statutory rules governing the service. On 1st
March 1968, the Armed Forces Headquarters Civil Service
c Rules, 1968 (hereinafter referred to as "the Rules") were framed,
wherein the services are classified in the following Grades:-
(a) Senior Administrative Grade
(b) Director
D
(c) Selection Grade (Senior Civil Staff Officer/Joint
Director) -+
(d) Civil Staff Officer/Deputy Director
(e) Assistant Civilian Staff Officer/Section Officer {initially
E
designated as Superintendent) t
I=
(f) Assistant
~
Rule 16 of the said Rules deals with the seniority, which •
provides that the relative seniority of the direct recruit and
F promotees shall be regulated in accordance with the provisions ~

made in this behalf in the Third Schedule. As per the Third
Schedule of the Rules, all temporary vacancies in the grade of
ACSO shall be filled by temporary promotion from amongst the l=.
Assistants by the method of selection. The Third Schedule further
G provides that substantive appointment to 75% of the substantive
f=.
vacancies shall be made in order of seniority of the temporary "'·
officers of the grade, who have completed the period of
probation subject to the rejection of unfit. 25% of the substantive
vacancies shall be filled up by the direct recruit through Civil
-'(

- '>-

H Service Examination conducted by UPSC. As per Note (2) of
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1195
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]

Third Schedule, unfilled vacancies of DR quota may be filled A
temporarily by promotion from amongst Assistants by selection
method.
8. Aggrieved by the Seniority List of 1977 published by
the Department, which was based on the principle of ante-dated
seniority in respect of ACSOs (DR), some of the ACSOs (DP) B

.,. filed Writ Petition No. 3/1978 titled as M. G Bansal & Ors. v.
Union of India &Ors. in the High Court of Delhi inter alia praying
for the following reliefs:-
(a) Respondents have misapplied, misconstrued and c
misinterpreted Rule 16(7) as well as Third Schedule ....
particularly Note (2), which violates Articles 14 and 16 of
the Constitution of India.
(b) The Quota Rule has been applied discriminately
without having regard to the approved service. D

-.,. (c) When the direct recruits were inducted in the service,
they were placed above departmental promotees who had
been promoted much earlier. The said placing in the
seniority list was done irrespective of the date of
appointment of the direct recruits and they could not be E
positioned higher than the Departmental Promotees.
9. After the constitution of the Central Administrative
Tribunal in the year 1985, the writ petition was transferred to the
Tribunal and was numbered as T.A. No. 356/1985. The Tribunal F
~ by its order dated 2nd June, 1989 disposed of the said petition
hplding that the quota prescribed in the Rules has not broken
down and the seniority between the direct recruits and
promotees regularly appointed/promoted within their respective
quota should be determined by the length of the continuous
G
officiation in the grade of ACSOs from their respective
appointment to the substantive vacancies under Third Schedule.
_J " ~

o.
1 It appears from the record that on 8th November 1989,
the Union of India and some DR Officers filed two Special Leave
Petitions before this Court against the order of the Tribunal dated H
i ,-
1196 SUPREME COURT REPORTS [2008] 2 S.C.R.

I

A 2nd June 1989. This Court by its order dated 20th July 1991 held ·
that the CAT had decided the controversy without adverting to
the Rules applicable to the service, particularly Note (2) in the
Third Schedul~ and the matter must, therefore, be decided
afresh. Pursuant to the order of this Court, the CAT again
B decided M. G Bansa/'s case (supra) by an order dated 20th
November 1992 in the following manner:-
'f
"(a) It is held that Rule 16(7) and Schedule Third so.far as
it relates to appointment of the promotees and Direct
Recruits in their respective quota and determination
c of seniority on the basis of quota and rota is held
valid and these are not ultra vires of Articles 14 and

(b)
16 of the Constitution of India.
Seniority between Direct Recruits and Promotees
...
I
:
~
~
regularly appointed/promoted within their respective
D
quota should be determined by the length of the
continuous officiation in the grade of ACSO from
their respective appointment to the substantive
,. vacancies under Schedule II within their quota, i.e.,
in the case of promotee ACSOs the length of
E continuous officiation in the grade will be reckoned
from the date when they are promoted in substantive
vacancies.
(c) To elucidate further, in the case of temporarily
F appointed promotee ACSOs under Note (2) of
Schedule Ill of the rules in the direct recruit quota ~

w.e. f. 1969 onwards till 1977 and also thereafter their
seniority will be reckoned from the date when they
get a berth in the substantive vacancies of their 75%
quota as envisaged under Schedule Ill of the Rules.
G
(d) . The incumbents belonging to one source in excess ~ ~
of their own quota and utilizing the quota of the
incumbents belonging to another source will only
officiate in the promoted post. It is made clear that
1
H the direct recruits when inducted as nominees of the f

~
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1197
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]

UPSC, the promotees in the quota of the direct A
recruits on the basis of Note (2) of the Rules of
Schedule 111 will either be reverted or will be absorbed
in the vacancies within their quota of subsequent
year. The period of officiation outside their quota of
either of their incumbents from other source will not B
count for their seniority. If an officer has been
promoted within his quota, then it would be date of
confirmation which would be relevant for the officer's
seniority.
(e) When the promotions are made from either of the sources, C
by direct recruitment or by departmental pron:iotion
there shall be due compliance of the various
instructions and office memorandum issued by the
Department of Personnel and Training on the
reservation of vacancies for SC/ST and categories D
in the proportion directed in the said instruction. The
reservation, however, shall remain only at the time of
appointment and not in the seniority inter se of the
Direct Recruits and promotees which shall be fixed
as laid down in Rule 16(7) read with Schedule Ill and · E
as directed in the preceding sub-paras above.
(f) It is further directed that each quota, as referred to in
Schedule 3 of the Rules has to be worked out·
independently on its own force. Direct recruit quota'
of ACSO which is confined to substantive vacancies F
in the grade can be filled by temporarily, appointed
Assistants by promotion in the grade of ACSO, but
without giving them any right of seniority on the basis
of continuous officiation on the vacancies earmarked
for Direct Recruits and indent for which has been G
sent to the UPSC for nomination from the civil
services examination of a particular year. The hopes
and aspirations of the promotees aforesaid cannot
be related to availability of Direct Recruits filling their
quota in that particular year and only it can be when H
J

1198 SUPREME COURT REPORTS [2008] 2 S.C.R.

A there is total collapse and break down of the quota
for a number of years.
(g) None of the parties including the official respondents
have given relevant data as to when the actual
promotion of Assistants were made to the temporary
B cadre of ACSO in the direct recruit quota under Note
(2) of Schedule 3 the official respondents on the other ..,
hand have taken the stand in the chart quote in the
body of the judgment that of such vacancies in the
direct recruit quota were left unfilled and have been
c filled temporarily by the Assistant by making
departmental promotions and since the exact number
is not coming for the and also the position whether
such departmental promotees were absorbed in the
subsequent vacancies within their quota of 7.5%
D direct is issued to revise the impugned seniority list
in the light of the observations made in the above
sub-paras which shall be made final after hearing
the objections on the same and the petitioners, who
have since retired, shall be entitled to any
E consequential benefits occasioned on account of the
revision of the seniority list. The impugned seniority
list of 1977 shall stand quashed to that extent. In the
circumstances, the parties shall bear their own costs."
11. The Union of India, in the garb of implementing the
F above-said order of the Tribunal in the case of M. G. Bansal, )r
started splitting up vacancies from the year 1992 and prepared
two separate Select Lists for each year retrospectively for the ·
grade of ACSOs. One list was prepared in respect of
ACSO(DPs) who allegedly were temporarily appointed against
G the unfilled vacancies meant for ACSO(DRs) as per Note (2) in
the Third Schedule on the basis of calendar year as against
originally drawn period from 1st October to 30th September each
year as provided in the Ru~es. It appears that prior to the
~
/

--
implementation of the order in M. G. Bansal's case, draft
H Seniority List issued in 1995 was., based on the principle of
L

_,., AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1199
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]

~
carrying forward of slots and ACSO(DRs) were being given A
about 1Oto 15 years ante-dated seniority even when they have
e not been holding any office in the service. Some of the ACSO
(DPs), namely, Smt. Ammini Rajan and others filed O.A. No.
1356/1997 before the Central Administrative Tribunal '
challenging the redrawn Select List for the years 1988-89 and B'
1989-90 in purported compliance with the directions of M. G.
Bansa/'s case. The Tribunal by its order dated· 1st April, 2002,
as noticed above, disposed of the said O.A. with the above-
said directions.
12. The AFHQ Civil Services (DR Gazetted) Officers' c
Association and others filed O.A. No. 2484/2004 before the
Tribunal. The Tribunal by its order dated 1st September, 2005
dismissed the said application holding that there is no illegality
in the preparation of Seniority List. Some of the ACSOs(DRs)
filed C.W.P. No. 18073/2005 before the High Court of Delhi D
challenging the order of the Tribunal dated 1st September, 2005
which was also allowed by the High Court along with the above-
mentioned writ petitions.
13. We have heard the learned counsel for the parties,
Shri R. Tanwar, President, AFHQ Civilian Officers' Association E
and other parties in-person.
14. Mr. Paramjit Singh Patwalia, learned senior Advocate
appear1ng on behalf of the appellant- AFHQ/ISOs sos (DP)
Association contended that the Division Bench of the High Court F
has lost sight of the fact that Rules 16(6) and 16(7) do not provide
carrying forward of slots, which were examined in detail by the
Central Administrative Tribunal in M. G. Bansa/'s case. On the
basis of the interpretation of the said Rules, the CAT had fixed
the seniority of DR and DP ACSOs based on the length of
G
continuous officiation and the High Court could not have
~
~- reversed the judgment of M.G. Bansal's case which had attained
finality after the dismissal of the SLP by the Hon'ble Supreme
Court. He next contended that in the Smt. Ammini Rajan's case,
the main claim was only for the implementation of the .order
H
I
~

1200 SUPREME COURT REPORTS [2008] 2 S.C.R.

A recorded by the CAT in M. G Bansa/'s case and other reliefs
.were ancillary in substance. According to the learned counsel,
one of the main issues agitated in the case of M. GBansal was
that DR ACSOs, who joined later in p_oint of time, were made
seniors to the promotees ACSOs, who were regularly promoted
B earlier to the DR ACSOs. The situation had occurred due to the
assignment of antedated seniority, i.e., giving seniority from the
date of occurrence of vacancy to DR ACSOs and as the Central
Government has wrongly implemented the observations
contained in para 25(b) of M.G. Bansal's case, which resulted
c in filing of the petition by Smt. Ammini Rajan and other DR
ACSOs, which came to be decided by the CAT in favour of
Smt. Ammini Rajan and others, relying upon the judgment of the
CAT in M.G Bansa/'s case. He also contended that if the vacant
slots of DR vacancies are carried forward, as directed in the
D impugned judgments of the High Court, the direct recruits will
get an undue advantage of more than 12 years of ante-dated
seniority without holding the office. He next submitted that the
fundamental principle of determination of seniority between
direct recruits and promotees regularly appointed/promoted
E within their respective quota should be determined by the length
of continuous officiation in the grade of ACSOs from their
respective appointment to the substantive vacancies under Third
Schedule of the Rules within their quota and the impugned
judgment of the High Court observing in paras 13 and 16 to
carry forward vacant slots of direct recruits is conflicting with
F the final judgment of the CAT rendered in M.G Bansa/'s case
which has directed the fixation of seniority based on length of
continuous officiation of direct recruits and promotees.
15. Mr. L.N. Rao, learned senior Advocate, resisting the
G aforesaid submissions, argued that the judgment of the High
Court cannot be found faulty on any ground and the seniority
inter se between the direct recruits and departmental promotees -<I' "'
has to be determined in the ratio CJ~ prescribed in the Third
Schedule of the Rules, which deals with the substantive
vacancies without giving any benefit of length of the continuous
H
-!.
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1201
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]

... officiation in the grade of ACSOs from the respective A
appointment to the substantive vacancies under Schedule Three
........ to the Rules within their quota .
16. Mr. Rakesh Khanna, learned senior Advocate
appearing on behalf of the respondents-AF HQ Civilian Officers'
Association and Mr. P. Vishwanath Shetty, learned senior B
Advocate appearing on behalf of the Union of India, have sought
y
to support the judgment of the High Court and contended that
the promotees ACSOs appointed under Note (2) of the Third
Schedule cannot get the benefit of continuous officiation in the
grade of ACSOs. They also submitted that the seniority of c
promotees among themselves was determined under Rule
16(5), i.e.'in the order in which they were appointed in substantive
vacancies in their quota and the inter se seniority of the DRs
among themselves was determined as per the Rule 16(6) in
the order of merit in which they were placed in the competitive D
examination. According to the learned counsel, the actual date
of joining in the post had no bearing on fixation of seniority
among the promotees and direct recruits themselves and inter
se seniority of DRs and DPs appointed against the substantive
vacancies in their own quota was determined on the -basis of E
rotation of vacancies between DRs and DPs in the ratio of 75%
: 25% without allowing lapsing of vacancies either from DRs or
DPs quota.
17. In support of the respective contentions, the learned
' ... counsel for the parties have relied upon certain decisions of F
this Court, which we shall deal and consider in the later part of
the judgment. .
18. After a perusal of the facts involved here and having
heard the parties at length, we feel that the issues that need to
G
be addressed by us in this case are:-
>-"
(i) Whether seniority between Direct Recruits and
Promotees regularly appointed/promoted within their
respective quota should be determined by the length of
the continuous officiation in the grade of ACSO from their H
1202 SUPREME COURT REPORTS [2008] 2 S.C.R.

A respective appointment to the substantive vacancies under
Schedule II of the Rules within their quota, i.e., in the case
of promotee ACSOs the length of continuous officiation in
the grade will be reckoned from the date when they are
promoted in substantive vacancies in their quota.
B (ii) Whether the incumbents belonging to one source in
excess of their own quota and utilizing the quota of the
incumbents befonging to another source will only officiate
in the promoted post. The direct recruits when inducted in
service through selection by the UPSC, the promotees in
c the quota of the direct recruits on the basis of Note (2) of
the Rules of Schedule Ill will either be reverted or will be
absorbed in the vacancies within their quota of subsequent
year and the period of officiation outside their quota of
either of the incumbents from other source will not count
D for their seniority.
19. For the purpose of determination of the above-said
points, we may notice the relevant Rules.
Rule 13 deals with probation, which states that (1) Every
E · direct recruit shall initially be appointed on probation for two
years from the date of appointment and (2) Every person other r
·)
than a direct recruit shall, when appointed to the grade of CSO,
ACSO and Assistant, be on probation for a period of two years
from the date of such appointment. Rule 14 deals with
F confirmation of probationers. The quota between the direct
recruits and the promotees is governed by Rule 16, which reads
as under:-
"16. Seniority:- (1) All permanent offices included in the
initial constitution of a Grade under Rule 9 shall rank senior
G to all persons substantively appointed to that Grade with
effect from any date after the appointed day, and all
temporary officers included in the initial constitution of a
grade under that rule shall rank senior to all temporary
officers appointed to that Grade with effect from any date
H after the appointed day.
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1203
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]
,,
)-
(2) The seniority inter se of permanent officers included in A
the initial constitution o( a Grade shall be regulated in the
order in which they are so appointed.
(3) The seniority inter se of temporary officers included in
~ the initial constitution of a Grade shall be regulated in the
t ' order in which they are so appointed. B

...,, (4) The seniority inter se of officers regularly appointed to
the grade of Joint Director and Senior Civilian Staff Officer
•
~
before the coming into force of the Armed Forces
Headquarters Civil Service (Second Amendment) Rules, c
1975, shall be regulated in the Selection Grade of the
Service in the following order:-
(a) Officers holding the posts of Joint Directors in an
officiating capacity, arranged in the order of their
-( seniority in that Grade; D
l (b) Officers holding the posts of Senior Civilian Staff
"T
Offkers in a substantive capacity, arranged in the
order of their seniority in that Grade;
-(
(c) Officers holding the posts of Senior Civilian Staff E
Officers in an officiating capacity, arranged in the
order of their seniority in that Grade;
(5) Except as provided, in sub-rule (7), the seniority of
persons appointed to any grade after the appointed day
shall be determined in the following manner, namely:- F
~

(i) Permanent Officers.- The seniority inter se of
officers substantively appointed to the Grade after
the appointed day shall be regulated in the order in
which they are so appointed;
G
.... )-
(ii) Temporary Officers.- The seniority inter se of
temporary officers appointed to the Grade after the
,_,
' appointed day shall be regulated in the order of their
selection for such promotion.
H
1204 SUPREME COURT REPORTS [2ooa1 2s.c.~.

A (6) Direct recruits shall be ranked inter se in the order of
merit in which they are placed at a competitive examination
on the results of which they are recruited, the recruits of an
earlier examination being ranked senior to those of a later
examination. On confirmation, their inter se seniority shall
B be regulated in the order in which they are so confirmed:
Provided that the seniority of persons recruited through
the competitive examinations held by the Commission -
(i) in whose case offers of appointment are revived
c after befng cancelled, or
(ii) who are not initially appointed for valid reasons
but are appointed after the appointment of
candidates recruited on the basis of the results of
the subsequent examination or examinations,
D
shall be such as may be determined by the
Government in consultation with the Commission.
(7) The relative seniority of the direct recruits to a Grade ·
and persons appointed to the Grade by departmental
E promotion shall be regulated in accordance with the
provisions made in this behalf in the Third Schedule.
(8) All officers substantively appointed to any Grade shall
rank senior to those holding temporary or officiating
appointments in that Grade.
F
20. Rule 2(p) defines "temporary officer" to mean a person
holding a temporary or offjciating appointment in that Grade on
the basis of his being regularly approved for such appointment.
Rule 2(1) defines "permanent officer'' to mean a person who has
G been substantively appointed to a substantive vacancy in that
grade. Rule 10 provides for future maintenance of the service
~
1
which states that the service shall be maintained in future as
indicated in the Third Schedule. Third Schedule of the Rules in
relation to ACSO (Group 'B' Gazetted) reads as under:-
H "Substantive vacancies
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1205
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]

(a) Substantive appointments to 75% of substantive A
vacancies in the Grade shall be made in the order of
seniority of temporary officers of the Grade, who have
-\
completed the period of probation satisfactorily, subject
to the rejection of the unfit.
(b) 25% of the substantive vacancies shall be filled by B
direct recruitment on the basis of combined competitive
examination held by the Commission for recruitment to
the Central Services, Group 'A'/Group 'B', Assistant
Civilian Staff Officers so recruited shall be confirmed in
the manner as indicated in Rule 14. C
The relative seniority of the above categories of officers
shall be determined according to the rotation of vacancies
between departmental promotees and direct recruits which
shall. be based on the quotas of vacancies reserved for
promotion and direct recruitment.
'°
Note (1) Reservation of vacancies against the quota
reserved for direct recruitment, for Scheduled Castes and
Scheduled Tribes and released Emergency
Commissioned Officers and Short Service Regular. E
Commissioned Officers shall be in accordance with the
rules and orders issued by the Government from time to
time.
(2) Substantive vacancies at (b) may be filled
temporarily by promotion from amongst Assistants on the F
basis of selection. Such promotions shall be terminated
when the nominees of the Commission become available
to fill the substantive vacancies."
Temporary Vacancies
G
· Temporary vacancies in the Grade of Assistant Civilian
Staff Officer shall be filled by temporary promotion from
amongst Assistants o'n the basis of selection.

Provided that if any person in the Grade of Assistants is H
\
1206 SUPREME COURT REPORTS · [2008] 2 S.C.R.

A considered for promotion to the Grade of Assistant Civilian -1
Staff Officer, all persons belonging to Scheduled Castes
or Scheduled Tribes who are senior to him in that Grade,
shall also be considered notwithstanding that they may
not have rendered five years' continuous approved service
8 in that grade.
21. On a plain reading of the above-extracted provisions y
of Third Schedule, it is clear that s~bstantive vacancies to the )-

extent of 75% shall be made in the order of seniority of temporary
officers of the Grade, who have completed the period of }=_
c probation successfully and 25% of the substantive vacancies
shall be filled by direct recruitment on the basis of qualifying
Combined Competitive Examination held by the Commission
for recruitment to the Central Services, Group 'A' /Group 'B'.
The relative seniority of the above categories of officers shall
D be determined according to the rotation of vacancies between
departmental promotees appointed to the substantive posts ,;-
and direct recruits which shall be based on the quota of
vacancies reserved for each source. Note (2) under the Third
Schedule of the Rules provides that "substantive vacancies"
E meant for direct recruits may be filled temporarily by promotion
from amongst Assistants on the basis of selection, but such
promotions shall be terminated when the nominees of the
'
Commission become available to fill the substantive vacancies "''
in 25% quota.
F 22. In the teeth of the relevant Rules governing the relative ..,..
seniority inter se between DRs and DPs under Rule 16 and
substantive appointments of ACSOs in the ratio of 75% under
clause (a) and appointments of direct recruits to the Central
Services Group 'A' I Group 'B' in the ratio of 25% as provided in
G clause (b), the seniority list is required to be maintained by the
j
authority. ~

23. The seniority list of 1977 circulated by the respondent-
Union of India inter se the DRs and DPs was under challenge
.-
before the Central Administrative Tribunal, Principal Bench, New
H
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1207
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]
Delhi, in T.A. No.356/85 (C.W. 3/78) titled Shri M. G. Bansal & A
~
Ors. v. Union oflndia & Ors., which was decided on 20.11.1992.
In the said petition, Union of India had submitted a Tabular
Statement showing details of substantive vacancies ·in the grade
of Assistant Civilian Staff Officers and from the perusal of the
Chart, the Tribunal observed that every time the vacancies were B
calculated and a requisition was sent to the UPSC for sending
.,., n.:>minees for appointment as direct recruits in the ratio - 15%
SC, 7.5% STand 25% released emergency commission officers
of the total number of vacancies. The Tribunal has found that all
the direct recruits, who were nominated by the UPSC, did not c
join in that particular year. Before the Tribunal, the case of the
lnterveners was that the quota has lapsed and cannot be carried
forward, whereas the case of the direct recruits was that the
quota rule had broken down as direct recruitments had not been
made for many years and on account of such failure, fixation of
D
seniority with reference to the rotational method was not
available to be followed. The Tribunal, on perusal of the Chart
+ made available to it by the Union of India, observed that since
1969 till 1977 in each of the year, direct recruits have joined the
service, though in lesser number. In 1969, 10 direct recruits
joined against the quota of 32; in 1970, 3 direct recruits joined E
against 13 vacancies; whereas in the year 1971, 11 direct
recruits joined against 16 vacancies, whereas in the year 1972,
., 16 direct recruits joined against 9 vacancies and in the year
1973, 8 direct recruits joined against 19 vacancies. Similarly,
in the year 1974, against 20 vacancies only 13 direct recruits F
~ joined the service; in 1975, 29 direct recruits joined against 19
vacancies; in 1976, 17 direct recruits joined against 25
vacancies and in the year 1977, 23 direct recruits joined against
14 vacancies. Thus, there was a shortfall of direct recruits in
joining the service in their quota excepting in the years 1972 G
and 1975 where persons in excess have joined than the
)- earmarked quota as per the rules. It was a specific case of the

.., DPs before the Tribunal that no substantive/temporary vacancy
was kept unfilled and these were filled by promoting Assistants
on officiation temporary basis in accordance with the provisions H
'•
•
1208 SUPREME COURT REPORTS [2008] 2 S.C.R.

A of the Rules. Thus, there has been no break down of the quota.
The quota also to some extent was not filled up to the extent it
was desired though UPSC has recommended sufficient number
of direct recruits, but because of certain facts, all of them did
not join for the reasons best known to them. The record would
B also show that the Union of India have carried forward the unfilled
vacancies of direct recruits to the next year. The Chart would ·
further show that In the year between 1968 and 1974, the direct
recruits vacancies were 87 in the ratio of 25% In terms of the
rules and the vacancies Intimated to UPSC were 132. The UPSC
c nominated 126 candidates, but 48 candidates actually joined
the service. Thus, taking all theae facte Into account, the Tribunal
has rightly observed that there cannot be a case where the quota
has broken down; rather this Is a caee of distortion oftha quota.
Note (2) to the Third Schedule referred to above mandates that
substantlv~ vaeaneles at (b) may be filled tempClrarlly by
D promotion from amongst Assistants on the basis of selection.
Such promotion shall be terminated when the nominees of the
Commission would become ~vailable ta fill the substantive
vacancy. In the Af'HQ Civil Service, promotions were made
~ against direct recruit vacancies after the vmmnelee had been
notified to the ~ublie Commission. The promotions were
temporary and the. prnmotee.s were 'Slven §eniority In
accordance with Rule 16,@(li) and after eompletlns their
probation, they were confirmed enlywhen substantive vacancies ,.
were found avallable In their qugt~. The inter f#~ eeiniority wae,
f' therefore, only between eyl;)§tantlva va@ancy ~romoteee and
sub§tantlve direct raernit§. All premote~ §Y~f?tantive ACSOti
were assl'1ned §enlority under Rule 16(1 ), wher~~u~ all direct
recruits were essi~ned :?enigrity under Rule 16-.6, Thereafter;
the~e twc eenh~rity list§ of §Yb6tantive gffieern fmm the two
G tmureee of recruitment are lnte~rated und§r Rule 1~.i, i.e. in
aecgrdan~e with th~ well.,kngwn prlrnJiple of qu().ta mta rule. ihus,
it Is evident that the l~te induPticm of the ~ireot re@rnit§ ages not
Interfere with th~ s~nil}rity t')f the promotee officare under ~Yle
16.§.
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1209
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]
24. Further, Note (2) to the Third Schedule is to be read A
•
with Rule 11. 1 of the Rules and the Regulations made

J thereunder so that substantive vacancies shall be intimated to
UPSC well within time. Note (2) is an enabling provision insofar
as it permits the Government to fill the vacancies temporarily
through selection. There Is. a mandate in Note (2) that these B
promotions will be terminated when the direct recruits would
Join the post. Thus, by the time the direct recruit had come or Is
likely to come, such a promotee who happens to occupy a berth
of the direct recruit by virtue of Note (2) to Schedule Third will
normally, because of his seniority, get a berth in his own quotP. c
The order of the Tribunal shows that the applicants and the
lntervenera, however, could not furnish any data to show that the
promotees, who are occupying the berth of direct recruits under
Note (2) temporarily, were subsequently got adjusted in the
prescribed quota of departmental prornotees against the
substj;intive vacancies. On perusal, wa find that ne> tlme ..limit Is D
prescribed In Note (2) during which such temporarily promoted
t Aealstanta to the grade of ACSQs in the quota of direct recruits
can enjoy that benefit. Note (2) only provides that whenever direct
recruits become av~llable, the appointmant of auch promotees
shall stand terminated. No other interpretation of Note (2) ean 15
be possible, Note (2) te> the Third Schedule aafe9uarda the
•
I
interest of the direot recruits. who thoush are suceeasful in the
Civil Servic~ f;xamination eonducted Py the UPSO anci yet are
waitin9 for their appointmant a$ the appointment of the direct
recruits is bound to take some time. Merely Pe.cause there ie f
IAte arrival of direGt recruits, the quota re§EffVed for them cannot
be t~ken as lapsed nor can it be taken to have led to bret:lk
down of the quota rule, The relevant rules, as ref13rred to ~bgve,
clearly envisg~e that thf3 continYPU§ officiation in a service
withgyt bre~k also aives the bi:mefit of 1?1:miority. but in a <Jase 0
where the recruitment i§ from twg sQ1.m:;es 13nd the q1.1ota i§
pre§oribed, then the person from one soYri:}e cannot ti:ike the
benefit available to the other source within the quota. Thua,
promotees who hav13 t:>13en promoted within their quot~ of 7t}%
under the rules as pre§Cribeci under Third Schedule read with H
1210 SUPREME COURT REPORTS [2008] 2 S.C.R.

A Rule 16(7) of the Rules would get the benefit of continuous

l
~
officiation from the date of their substantive appointment to the
grade of availability of a substantive post and after having worked
on temporary basis in the grade. Those who have been
appointed temporarily under Note (2) from the cadre of
B Assistants to the grade of Assistant Civilian Officers temporarily,
would not get the benefit of their continuous officiation and shall
be liable by operation of law to be reverted or there shall be
'f
deemed reversion when the nominees from.the UPSC would
join on the recommendations of the UPSC. Such temporary
c officers may not actually face reversion because by the time the
vacancies of the next year may become available in their quota ,
of 75% and they can very well, by virtue of their seniority, earn
the benefit of substantive appointment under the Third Schedule.
25. Now, coming to the issue whether the High Court was
D justified in granting relief to DRs Association in CWP No.4058
of 2002 and Union of India v. Smt. Ammini Rajan & Ors. in
Writ Petition (C) No.5396 of 2002 by overlooking and not
properly appreciating the substance of the order recorded by
the CAT in Shri M. G Bansal's case. The High Court, by its
E impugned order dated 14.11.2006, has held that the order of
the Central Administrative Tribunal in Smt.Ammini Rajan's case
is contrary to its earlier decision dated 20.11.1992 passed in
)
M. G Bansal's case. The High Court directed the issue of \;
seniority to be determined as it was done prior to Smt. Ammini
F Rajan's case Was decided by the Tribunal. The High Court further
held that the direction of the CAT where it is held that the seniority )"
of DRs should be determined from the date of joining and further
that the unfilled vacancies and not the slots can be carried
forward, is contradictory to the decision of the CAT in M. G.
Bansal's case. We are afraid to agree with the reasoning of the
G
High Court. If such reasoning of the High Court is accepted, the
consequences would be that the draft seniority list of ACSOs
would be taken as it stood on 01.05.1995, which was challenged
before the Tribunal in O.A. filed by Smt. Ammini Rajan and
others as the draft seniority list was not settled in terms of the
H
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1211
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]

decision of the CAT in M.G. Bansal's case, which admittedly A
has attained finality. The judgment of the High Court setting aside
the order of the Tribunal in Smt. Ammini Rajan's case would
plainly amount to interference with the decision of the CAT in
M. G. Bansal's case and further if the order of the High Court is
given effect to, the result thereof would be that the DRs. shall be B
permitted to take advantage of more than 12 years of ante-dated
seniority without holding an office. The petition filed by Smt.
Ammini Rajan was primarily seeking implementation of the
earlier decision of the CAT in Shri M. G. Bansal's case. On bare
examination of the decision of the CAT rendered in Smt. Ammini c
Rajan' case, we find no discrepancy, no contradiction or
overlapping or inconsistency whatsoever in the said order as
compared to the earlier decision of the CAT in Shri M. G. Bansa/'s
case. Therefore, the order of the High Court, in our view, is
erroneous as the High Court has committed an error in
D
understanding and appreciating the gist of the order recorded
by the· CAT in Smt. Ammini Rajan's case .
..,.
26. Mr. Paramjit Singh Patwalia, learned senior Advocate
appearing on behalf of the appellant-AFHQ/ISOs SOs (DP)
Association, in support of his submissions, placed reliance upon E
the case of Suraj Prakash Gupta & Ors. v. State of J & K & Ors.
[(2000) 7 sec 561]. In the said case, this Court while dealing
with a situation of giving direct recruitment appointment ante-
dated from the date of occurrence of a vacancy in the direct
recruitment quota, even if on that date the said person was not F
directly recruited. The Court, in answer to Point No.4, held as
under:
"Point 4
Direct recruits cannot claim appointment from date of
G
vacancy in quota before their selection
>- 80. We have next to refer to one other contention raised
by the respondent direct recruits. They claimed that the
direct recruitment appointment can be ante-dated from
the date of occurrence ofa vacancy in the direct recruitment H
1212 SUPREM~ COURT REPORTS [2006] 2 S.C.Ft

A quota, even if on thc:it date the said person was not directly
recruited. It wai:; submitted that if the promotees occupied ~
the quota belonging to direct recruits they had to be pushed
down, whenever direct recruitment was made. Once they
were so pushed down, even if the direct recruit came
B later, he should be put in the direct recruit slot from the
date on which such a slot was available under the direct
, recruitment quota.
81. Thi5 contention, in our view, cannot be accepted. The
reason as to why this argument Is wrong is that In service
c j~1rlsprudenee, a direct recruit can olalm seniority only from
the date of his re9ular appointment. He cannot claim •
seniority from a date when he was not borne in the service.
This principle Is well settled. In N.K. Chauhan v. State of
Gujarat 14 (SCC at !). 326, para 32) Krishna Iyer, J,
0 stated:
Later direct reeruits eannot claim deemed dates of
apr,>olntment for §tmlority with effect from the time
when direct recruitment vacancy arose, Seniority will
depend Ypon lensth of servlee.
Asain, in A. Jarwrdhana v. Union of India 25 it was held
that a later diregt re~ruit canm>t !3lalm seniority frQm a date
before his birth in the eervloa or when he wa$ in school or
eollese. Similarly It wa§ pointed ~ut In AN. Pathak v. S~ay.
to the (gavt, (~CC at p, '167) that ~lot§ !3annQt t>e kept
re§erved far direct recruit!?. f!).r retrti§pePtivg appPintment&/'
27, In $tat~ Qf UttarnnQhgf ~Am: v, fJinf!Jl?h Kumar ~hPrm~
[(:!007) 1 ~CC ea~], thl§ O@urt h~§ §le9r!y held th~t the §eni@rity
i§ tQ be reekoned nPt fwm thte Qete when the vi;u}angy af(;!§e,
G -, but fmm the date ~n whic;h the a~ppintment i§ made tc;> the ~g§t,
~B. In M: Su/J/Ja Ready & Anr., gfg, v; A F?; $tf:ltf:! Rgag
irnn~p9rt (dQrp@rnfign ~ Qf§, [(2004) 6 SQC 72e], reli~~ UPOM
by Mr,!,.., N, Ri:io, le~m~Q §enior AOV(;)i:!~t§ eppe~rin9 ~fl b§h13,lf
H @f AFHQ Qivi! S§rvlf3e {Oiree,t R§~mJit§,.,gp;zetteg) Offioern'
-/
AFHOllSOS SOS (DP) ASSOCIATION & ORS. v. UNION 1213
.OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]
Association, this Court while dealing with inter se seniority A
between direct recruits and promotees to the posts of Assistant
Traffic Manager (for short "ATM") and Assistant Mechanical
Engineer (for short "AME'') in A.P. State Road Transport
Corporation, held that rota rule is inbuilt in the quota prescribed
In Item 3, Annexure 'A' (Section B) to A.P. SRTC Employees B
(Recruitment) Regul~tions, 1966 and could not be deviated from.
In that case, the appellant promotees were promoted to the
posts of ATMs/AMEs temporarily under RegulaUon 30 as there
were no direct recruits available. They were promoted subject
to being reverted to substantive posts on approved candidates c
becoming available. Regulation 34(6) states that the revertees
&hall subsequently be considered for repromotlon against the
quota of vacancies reserved for promotees. Therefore, one has
to read Regulation 3 of the A,P, SRTC Employees (Service)
Regulations, 1ea4- with Regulatlons 30 and 34 of the
Recruitment Regulations. It Is only when such revertees are
0
repromoted aa per Regulation 34, they can be deemed to have
been appointed to the poets of ATM or AME. Therefore, when
the appellants were tentatively appointed to the pe>st of ATM&/
AMEe originally for want of direct recruit~ and to the poet~
reserved for direct recruits, It cannot be eaid tha.t they were flret E
appointed to that category within the meaning of Regulation 3
of the Service Regulations. Therefore, seni,ority had to be fixed
between the direct recruits and the promoteee atrlctly In
aceordanee with the quota provided f()r in Item 3 of Annexure
'A' (Secth:m S), The said Regulation~ prel:!Gril:)e a quota Qf 1:1. F
whieh leads to rota for conflrmati.:m, The conti:mtion of the
a~pellante before thlo Court wa$ that they h~d a ri9ht to be
promoted witn!n their quQta during the year~ 1ea1 to 1ea1' when
vaeangies for promotees' qugta beeam13 available. M. ~ubba
Reddy, appal!ent In th"t caee, was regulariied from 'J.7, 12.1aoe G
v!de order dated a.a. 1aaa. when no direet retiruits were
~
available and. therefore, It Wg$ impro1:u~r fgr the Qf)rporation t()
plCilo~ direct recruits above the prQrnotees. 'fhe appellant
.... §ubmitted that in such a c~se the quota in lt§m 3(1) of Annexure
'A' to the Recruitment Rule!:> would not apply; that the s~id item H
1214 SUPREME COURT REPORTS [2008] 2 S.C.R. '-.,.,....

A prescribed only quota and not rota for seniority and that the direct
recruits could not claim appointment from the date of vacancy ~

in their quota before their selecton. They added that seniority .
was dealt with only by Regulation 3 of the Service Regulations,
1964 and not by Regulation 34 of the Recruitment Regulations,
B 1966. That in view of the 15.9.1995 amendment, Regulation 34
referred to only allocation of vacancy and not for determination
of seniority. A total ban for direct recruitment was imposed by ....,
the State from the year 1977 to 1988 and, thus, the purported
quota-and-rota rule contained in Item 3 of Annexure 'A' could
c not have been given effect to. The majority view of this Court
was that where there is inaction on the part of the Government
or employer or imposed ban on direct recruitment in filling up
the posts meant for direct recruits, it cannot be held that the
quota has broken down. We, with respect, do not support the
view of the learned Judges that in the facts and circumstances
D
of the case the quota has not broken down because of inaction
on the part of the Government in imposing ban in filling up the
posts meant for direct recruits. The appellants in the said case "1

were promoted in a regular manner having been regularized in
service with retrospective effect. Their services were not
E regularized from the date of their initial ad hoc promotion but
with effect from the date when the yacancies became available.
Their services after regularization would not be by way of a stop-
gap arrangement. The direct recruits who were appointed in
the years 1990 and 1991, in terms of Item 3 of Annexure 'A'
F wouJd be considered to have been appointed only after their
successful completion of training. They were borne in the cadre
,..
in the years 1990-91 and, thus, prior thereto they cannot claim
seniority. The learned third Judge, dissenting with the learned
two Judges, has held that the direct recruit can claim seniority
G from the date of his regular appointment, he cannot claim
seniority from a date when he was not borne in the service. Thus,
the direct recruits of 1990 and 1991, by reason of the impugned -.oC

seniority list, could not have been placed over and above the
appellants-promotees because the purported quota and rota +-
H rule contained in Item 3 of Annexure 'A' could not have been
~
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1215
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]
given effect to because the State Government had imposed total A
ban for direct recruitment from the year 1977 to 1988. In such a
situation, the said quota rule became inoperative. We agree
with the dissenting view of the learned Judge that in the facts of
the case, the quota rule became inoperative because the direct
recruits were borne in the cadre when they were appointed B
against the vacancies meant for them. Therefore, the majority
y
view in M. Subba Reddy &Anr., etc. (supra). is of no assistance
to theAFHQ Civil Service (Direct Recruits) Officers Association
as the relative seniority between the direct recruits and regularly
appointed/ promoted candidates within their respective quota, c
in the present case, shall be determined by the length of the
"i continuous officiation in the grade of ACSO from their respective
appointment to the substantive vacancies in terms of Schedule
Third within their quota as held by the CAT in M. G. Bansal's
case, which has attained finality after dismissal of the SLPs
D
filed against the said order of the Tribunal.
29 .. Mr. Rakesh Khanna, learned senior Advocate
appearing on behalf of some of the respondents, in support of
his submissions, has placed reliance upon the case of O.P
·Sing/a &Anr., etc. v. Union of India & Ors. [(1984) 4 SCC 450] E
inter alia contending that for determining an equitable rule of
seniority between direct recruits and promotees, attempt must
be made to minimise, as far as possible, the inequities and
disparities in terms of the rota-quota rule which has broken down
in this case. In the said case, this Court has held that the seniority F
of DRs and Promotees appointed under the relevant rules must
be determined according to the dates of which direct recruits
were appointed to their respective posts and the dates from
which the promotees have been officiating continuously either
in temporary posts created in the service or in substantive
G
vacancies to which they were appointed in a temporary capacity.
)-
The said decision, in our view, is of no assistance to the contest-
ing parties represented by Mr. Rakesh Khanna, learned senior
counsel, in the facts and circumstances of the present cases.
30. In Arvinder Singh Bains v. State of Punjab & Ors. H
1216 SUPREME COURT REPORTS [2008] 2 S.C.R.

A [(2006) 6 SCC 673], relied upon by Mr. Siddarth Dave, Advocate,
the issue before this Court related to the inter-relation between
Rules 18 and 21 of the Punjab Civil Services (Executive Branch)
(Class I) Rules, 1976. On consideration of the factual situation
of the case and the rules governing the services of the
B employees, this Court said that rota and quota must necessarily
be reflected in the seniority list and any seniority list prepared in
violation of rota and quota is bound to be negated. The Court
found ·in the said case that the action of the respondents in
determining the seniority is clearly in total disregard of rota-quota
c rule prescribed in Rule 18 of the 1976 Rules and, therefore, writ
of mandamus was issued to the respondents directing them to
prepare the seniority list of the appellants who belong to the
PCS (EB) in accordance with Rule 18 and read with Rule 21 of
the 1976 Rules by fixing seniority according to the roster
prescribed under Rule 18 of the 1976 Rules.
0
31. In Gonal Bihimappa v. State of Karnataka & Ors. [1987
Suppl. 207] relied upon by Mr. P~ Vishwanath Shetty, learned
senior Advocate appearing on behalf of the Union of India, this
Court held that the quota rules has to be strictly enforced and it
E is not open to the authorities to meddle with it on the ground of
administrative exigencies. Further, in that case the scheme in
force relating to the services for fixing inter se seniority took
into account the filling up of the vacancies in· the service from
the two sources on the basis of the quota and fixation of inter se
F seniority in the gradation list has to be worked out on the basis
of quota. There cannot be any doubt or quarrel to the well-settled
law that inter se sen~ority between direct recruits and promotees
should be fixed on the basis of quota-and-rota rule/instructions
governing the service conditions of the employees.
G 32. In the light of the above factual situation, service rules
governing the conditions of service of employees and the settled
proposition of law, we are of the opinion that the judgment and
order dated 14.11.2006 in C.W.P. No.4058/2002, CWP
No.5396/2002 and subsequent judgment dated 15.01.2007 in
H CWP No.18073/2005 of the High Court of Delhi passed in
AFHQ/ISOS SOS (DP) ASSOCIATION & ORS. v. UNION 1217
OF INDIA & ORS. [LOKESHWAR SINGH PANTA, J.]

-{
' ,. AFHQ Civil ·Service Officers Association v. Union of India & A
Ors. are not sustainable and deserve to be set aside to the
extent of setting aside the order of the Tribunal in Smt. Ammini
Rajan's case holding that the said order is ·contrary to the earlier
judgment of the CAT dated 20.11.1992 recorded in M.G.
Bansal's case. This view of the High Court apparently appears B
to be contrary and contradictory to the judgment and order of
'!' the CAT dated 20.11.1992 passed in T.A. No.356/1985 (CW 3/
1978) titled Shri M. G. Bansal & Ors. v. Union of India & Ors. in
which the impugned seniority list of 1977 stood quashed and
the respondent(s)-authorityweredirected to implement the said c
judgment in terms of the observations/directions contained in
paragraph 25 of the said judgment. The judgment of the CAT in
M. G. Bansal's case has attained finality when two SLPs filed by
the DRs against the said judgment came to be dismissed by
this Court on 20.01.1995. Consequently, the Writ Petition CWP
< D
No.4058/2002 of the AFHQ Civil Service (Direct Recruits-
~ Gazetted) Officers' Association and CWP No.5396/2002
preferred by Union of India against the order of the CAT in OA
No.1356/1997 titled Smt. Ammini Rajan & Ors. v. Union of
India & Ors. are dismissed. CWP No.62/2003 and CWP
No.4458/2002 filed by the DPs shall stand allowed accordingly. E
CWP No.18973/2005 shall also stand disposed of in terms of
this judgment. As the dispute and controversy relating to inter
se seniority between the DPs and DRs has remained unsettled·
and is lingering over the past many years, the respondent-
authority is directed to determine and settle the seniority list in .F
strict compliance ar:td spirit of the judgment of the CAT dated
20.11.1992 in TA No.356/1985 (CW 3/1978) rendered in Shri
M. G. Bansal & Ors. v. Union of India & Ors. The directions so
contained in the said judgment shall be carried out within three
months from the date of this judgment. G
, 33. For the reasons stated above, the appeals are allowed
to the extent indicated above. However, in the facts and circums-
tances of the case, the parties are left to bear their own costs.
N.J. Appeal partly allowed. H