J.G. PRASADA RAO ETC. ETC.versusTHE SECRETARY TO GOVERNMENT AND ORS. ETC. ETC.

             J.G. PRASADA RAO ETC. ETC.                                       A
                         v.
  THE SECRETARY TO GOVERNMENT AND ORS. ETC. ETC.

                         SEPTEMBER 7, 1995

           [K. RAMASWAMY AND B.L. HANSARIA, JJ.]                              B

     Service Law

       Andhra Pradesh Accounts Officers Service Rules, 1980/Manual of
Standing Orders (Administration) of Comptroller and Auditor General of        C
India.

      Rule 6/Paragraph 32(}-Divisional Accountants-Seniority Criterion-
Divisional Accountants/SAS Accountants/SAS passed Auditors-Absorbed
in A.P. Divisional Accountants Service-Inter se seniority-Held, date of
passing Divisional test is the criterion-Factum of drawing higher pay or      D
holding higher re:iponsibilities i"elevant due to operation of Rules.

       The State Government of Andhra Pradesh obtained from Account·
ant General, A.P. the services of Divisional Accountants, SAS Accountants
and SAS passed Auditors on deputation as Divisional Accountants. Later,
the Finance and Planning Department of the Government of Andhra               E
Pradesh constituted the cadre of Divisional Accountants consisting of
Divisional Accountants Grade-I and Divisional Accountants Grade-II with
effect from 19.9.1980; and all the deputationists applied. for and were
absorbed in the said cadre on the respective grades with effect from
1.1.1980, G.O. Ms. No. 304 dated 20.11.1979 issued in this regard laying      F
down the service conditions, provided that in the cadre of Divisional
Accountants, Divisional Accountant Grade- I would be a promotional post
from Divisional Accountant Grade- II. It also provided that inter se
seniority of the Divisional Accountants borne on the Accountant General's
cadre of Divisional test passed Divisional accountants taken over to the      G
State service would be fixed in the State cadre based on their inter- se
seniority as Divisional Accountants in the Accountant General's gradation
list on the date of taking over. The State Government issued G.O. Ms. No.
290 dated 11.11.1982 constituting the Andhra Pradesh Divisional Accounts
Officers Service under the Andhra Pradesh Divisional Accounts Officers
Service Rules, 1980. Rule 6 of the Rules prescribing the special qualifica-   H
                                   411
    412                   SUPREME COURT REPORTS (1995] SUPP. 3 S.C.R.

A   tions, method of recruitment etc. provided that for the promotion to the
    post of Divisional Accounts _Officer Grade-I, a candidate should have put
    in service of not less than three years as Divisional Accounts Officer
    Grade-II and must have passed the required test. The appellant in C.A.
    No. 4172 of 1995 claimed that he having passed the test prior to some of
    the respondents was senior to them. His claim was rejected.
B
           In the appeals, filed by the appellant and some others before this
    Court, the respondents contended that in view of G.O. Ms. No. 304 provid-
    ing that SAS Accounts Officer/SAS passed Auditors who held the higher
    scale of pay since declared to be entitled to Grade-I, they were entitled
c   though some of them passed the Divisional test subsequent to the appel-
    lant, to be promoted as Grade-I Divisional Accounts Officer and cannot
    be made junior to the appellants.

          Allowing the appeal, this Court

D          HELD: 1.1. The appellant had passed the Divisional test earlier to
    some of the respondents. He is entitled to be treated as senior to the
    respondents who passed the said test subsequent to him, in Grade-II post
    of Divisional Accountants in the list sent by the Accountant General for
    absorption in the Divisional Accountants Service constituted by the State
    Government. The factum of drawing higher pay or holding higher respon-
E
    sibilities became irrelevant due to operation of the A.P. Divisional Ac-
    counts Officers Service Rules, 1980. [418-B]

           1.2. Passing of Divisional test is a pre-condition for promotion as
    Divisional Accounts Officer Grade-I. Paragraph 320 of the Manual of
F   Standing Orders (Administration) of Comptroller and Auditor General of
    India expressly prescribes that the date of passing Divisional test is the
    criterion for determination of inter-se seniority. Though the SAS Accounts
    Officers or the clerks who passed the SAS examination had held higher
    scale of pay or higher responsibility, to determine their inter-se seniority,
G   date of passing Divisional test is a criterion. The inter-se seniority shall be
    reckoned with reference to the date on which the respective candidates
    passed the Divisional test. (417-H; 418-A]

          1.3. The Government would reckon inter-se seniority with reference
    to the date of appellant's passing the Divisional test and inter-se seniority
H   should be determined in the relevant records prepared by the State accord-
                  J.G. PRASADA RAO v. SECY. TO GOVT.                     413

ingt,y. [418-C]                                                                 A
     CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4172 of
1995 Etc.

    From the Judgment and Order dated 23.1.95 of the Andhra Pradesh
Administrative Tribunal, Hyderabad in 0.A.NO. 5557 of 1993.                     B
      J.G. Prasada Rao-in-person for the Appellant.

      A. Subba Rao, A.D.N. Rao and K. Ram Kumar for the Appellants.

     D. Rama Krishna Reddy, and Mrs. D. Bharati Reddy for the                   C
Respondents.

      The following Order of the Court was delivered :

CA. 4172/95
                                                                                D
      We have heard the appellant in person, who prepared the case
thoroughly and argued very neatly and meticulously, point by point, making
analytical presentation of the case with reference to various orders issued
by the Government and cleared the clogs crepLinJhe controversy.

      The Government of Andhra Pradesh had obtained from Accountant             E
General, A.P., the services of Divisional Accountants, SAS Accountants
and SAS passed Auditors on deputation to the State Government as
Divisional Accountants. A three member Committee appointed to advice
the Government on the desirability and feasibility to absorb them in the
State service, had recommended for absorption. On consideration thereof,        F
in G.O. Ms. 304 Finance and Planning, dated November 20, 1979, Govern-
ment had decided to take them over from the administrative control of the
Accountant General, A.P. subject to the terms and conditions stated
therein.

      The cadre of the Divisional Accountants was constituted with the          G
Finance and Planning Department of the Government to exercise ad-
ministrative control. It called for options from them which were subject to
their accepting service conditions of the State Government and the State's
scale of pay. Admittedly, all the deputationists had opted for and the
service was constituted w.e.f. January 1, 1980. In paragraph 8 thereof it was   H
    414                  SUPREME COURT REPORTS (1995) SUPP. 3 S.C.R.

A   stated that

            "The inter se seniority of Divisional Accountants, Selection Grade
            Divisional Accountants and Section Officers/S.AS. Divisional Ac-
            countants borne on the Accountant General's cadre of Divisional
            Test passed Divisional Accountants taken over to the State Service
B           will be fixed in the State cadre based on their inter se seniority as
            Divisional Accountants in the Accountant-General's gradation list
            on the date of taking over. Appointment to the posts of Divisional
            Accountants, Grade-I shall be made based on seniority-cum-merit.
            The present pay and Dearness Allowance actually drawn by the
c           S.A.S. Divisional accountants/Section Officers under the Account-
            ant-General on the date of take over will be protected in the case
            of those opting to State service, when fixing their pay in the State
            D.A's scale of pay admissible to them according to their seniority
            in the gradation list of Divisional Accountants. Their fixation of
            pay in the State D.A's scale will be made on the basis of their
D
            notional pay in the Central D.A's scale which· they would have
            drawn but for their promotion as Section Officer/S.A.S. Divisional
            Accountants under the Accountant-General. The difference be-
            tween the pay and dearness allowance drawn by them under the
            Accountant-General and the pay and dearness allowance admis·
E           sible to them in the State scale will be given as personal pay to be
            absorbed in future increments."

           G.O. Ms. No. 290 dated 11.11.1982 was issued by the Government
    exercising the power under proviso to Article 309 of the Constitution,
F   constituting the AP. Divisional Accountants Service under the AP.
    Divisional Accountants Officers Service Rules, 1980 which came into force
    w.e.f. January 1, 1980. In terms of G.O. Ms. No. 304, the gradation was as
    Divisional Accountants Grade-I and Divisiop.al Accountants, Grade-II.
    The Divisional Accountant Grade-I is a promotional post from Divisional
    Accountant Grade-II, and Divisional Accountant Grade II are to be filled
G   up by direct recruitment from open market. In Note (1) thereof, it was
    stated that "all the Divisional Accountants Officers borne on the Account-
    ant General Office, who exercised their option to come over to the State
    service, shall be deemed to have been taken over on 1.1.80 to the State
    Divisional Accountants officers service against grade I or grade II, as the
H   case may be." In Rule 6, the special qualifications, method of recruitment
                    J.G. PRASAD A RAO v. SECY. TO GOVT.                    415

    and qualifications have been mentioned as under :                             A
           "Category          Method of               Qualifications
     Divisional Accounts By promotion        shall have put in service of not
     Officers Gr.I                           less than 3 years as Divisional
                                             Accountants Officer, Grade-II
                                             (Category-II) and must have
                                                                                  B
                                             passed the 'Divisional Test'.

    We are not concerned with Category II. However, it is relevant to mention
    about that. With regard to existing S.A.S. passed Divisional Accounts
    Officers, Accountants or SAS Passed Auditors under the administrative         C
    control of the Accountant General, A.P. Prior to the take over of the cadre
    by the State Government, they were directed to reckon their total service

-   under the category as Divisional Accounts Officers, Grade II.

          In G.O. Ms. No. 314 Planning and Finance, dated 30.11.1982
    statutory orders under proviso of Article 309 were issued accepting the D
    options given by the deputationists and taken over as Divisional Accounts
    Officers Grade I and Grade II, as the case may be. The Notification reads
    thus:

            "The Senior Grade and Junior Grade Divisional Accountants, who
            opted to the State Service consequent to the take-over of the cadre
                                                                                  E
            of Divisional accountants by the State Government from the Ac-
            countant General, Andhra pradesh as shown in the Annexure are
            deemed to have been absorbed into the State Service subject to
            the terms and conditions laid down in G.O. Ms. No. 304. Finance
            and Planning (Finance Wing WA.1) Department, dated                    F
            20.11.1979."

           Second paragraph thereof states that Senior Grade Divisional Ac-
    countants and the Junior Grade Divisional Accountants shown in the
    Annexure to the Order are deemed to have been absorbed into the State
    Government Service in the posts shown against their names w.e.f. 1.1.1980, G
    subject to the terms laid down in G.O. Ms. No. 304. In sequel thereof,
    statutory rules were issued in G.O. Ms. No.139, dated 30.4.1982, constitut-
    ing AP Accounts Service, stating therein that Grade I Divisional Account-

•   ant is a feeder post for appointment by promotion to the post of Assistant
    Pay and Accounts officer. For promotion as officers in Category 3, i.e., H
    416                   SUPREME COURT REPORTS (1995] SUPP. 3 S.C.R. .

A   Assistant Pay and Accounts Officer, the proviso says that the service
    rendered as Senior Grade Divisional Accountant after promotion from
    Grade II shall alone be taken into account by the State Government for
    reckoning the qualifying service for promotion as Assistant Pay and Ac-
    counts Officer.
B          A reading of these statutory orders vis-a-vis the administrative
    decisions taken by the Government in G.O. Ms. No. 304 would clearly
    establish that the deputationists, who have been designated as Grade I and
    Grade II officers and given their unconditional options for absorption into
    the State Service, were absorbed in the "Divisional Accountant Service"
c   constituted by the Government as Gr. I and Gr. II officers. The previous
    service rendered as either Grade I or Grade II officers has been reckoned
    for the purpose of their respective eligibility to the promotion to the higher
    cadre. But for promotion as Assistant Pay and Accounts officer in category
    III of AP. Accounts Service, the qualifying period of service is as Grade
D   I Divisional Accountants in AP. Accounts Division Service. They must
    have passed Divisional Accounts test and after promotion as Divisional
    Accounts Grade-I must have put in the minimum qualifying service.

          The question is whether the appellant is senior to some of the
    contesting respondents. The contention of the appellant is that by virtue of
E   his passing the Divisional Accountants test earlier, though the respondents
    were holding posts carrying higher pay, all of them cannot be reckoned as
    seniors to him as some of them had passed this later. On the other hand,
    their seniority requires to be reckoned from the date of their passing
    Divisional Accountant test. Since some had passed the test later to him
F   they are juniors to him.

          It is contended on behalf of the respondents that in G.O. Ms. No.
    304, in particular para 8, it is clearly mentioned that the S.AS. Accounts
    Officer/S.A.S. passed Auditors, who held the higher scale of pay since
    declared to be entitled to Grade-I, they are entitled, though some of them
G   passed the Divisional Accountant test later to the appellant, to be
    promoted as Grade- I Divisional Accountants and some of them had been
    so promoted, and so, they cannot be made juniors to the appellant. At this
    juncture we may make it clear that respondent Nos. 3 to 6, 10 and 11 had
    passed Divisional Accounts test earlier to the appellant. Respondent Nos.
H   7, 9, 12 and 13 had admittedly passed Divisional Accountant test sub-
                     J.G. PRASADA RAO v. SECY. TO GOVT.                        417

    sequent to the appellant. It is also not in dispute that the appellant was        A
    promoted as a Divisional Accountant Grade I on 6.7.1987 while respondent
    Nos. 7, 9, 12 and 13 were promoted on July 27, 1991.
-         The question, therefore, is who, among them, is senior to each
    another. Prior to taking over on January 1, 1980, admittedly, all of them
    were governed by the Manual of the Accountant General issued by the               B
    CAG of India. Chapter V deals with Subordinate Accounts Service which
    consists of the confirmed apprentices, SAS Accountants on probation,
    Accounts Clerks in their office and the Divisional Accountants under their
    control. Para 320 of the Manual prescribes the method of computation of
    seniority on passing the Divisional Accountants test which reads thus :           c
            "320. Clerks recruited from sources (1) and (2) who pass the
            Divisional Test Examination (paragraph 322) are placed on a
            waiting list but allowed to retain their liens on their substantive
            appointments till they are confirmed in the Divisional Accountants'
            Cadre. Their relative seniority will be determined with reference         D
            to the date of their passing the Divisional Test Examination (the
            Viva-Voce part of it in the case of S.A.S. Examination passed
            clerks). The Divisional Accountants who pass the same Divisional
            Test will be senior to all the Divisional Accountants who pass in
            subsequent tests. The inter se seniority of Divisional Accountants        E
            who pass the same test will be decided on the basis of the marks
            obtained by them in the aggregate in the Divisional Test Examina-
            tion."

    The rest of the para being not material for the purpose of this case is
    omitted.                                                                          F
          It would thus be clear that the S.A.S. Accountants on probation,
    Divisional Accountants and Clerks who passed the SAS examinations are
    the feeder posts for the Subordinate Accountants Service. Similarly, in the
    statutory rules issued, referred to earlier, for Grade-I posts of the
    Divisional Accountants, Grade II is the feeder posts. Passing of Divisional       G
    Accounts test is a pre-condition for promotion as Divisional Accounts
    Grade-I. Paragraph 320 expressly prescribes that the date of passing
,
'
    Division Accounts test is the criteria for determination of inter se seniority.
    Though the SAS Accounts Officers or the clerks who passed the SAS
    examinations had held higher scale of pay or higher responsibility, to            H
    418                       SUPREME COURT REPORTS [1995) SUPP. 3 S.C.R.

A   determine their inter se seniority, date of passing Divisional Accounts test
    is the criterion. The inter se seniority shall be reckoned with reference to
    the date on which the respective candidate passed the Accounts test.

          In view of the admitted position that the appellant had passed the
                                                                                   .
    Accounts test earlier to the aforesaid respondents, he is entitled to be
B   treated as senior to these respondents in the Grade II post of Divisional
    Accountant, in the list sent by the Accountant General for absorption in
    the Divisional Accountants Service constituted by the State Government.
    The factum of drawing higher pay or holding higher responsibilities be-
    came irrelevant due to operation of the rules. The Government, therefore,
C   is directed to reckon inter se seniority with reference to the date of his
    passing Accounts test and inter se seniority should be determined in the
    respective Annexures prepared by the State accordin_gly. The reliance on
    G.O. Ms. No. 449 dated 16.9.1983 for upgradation into Divisional Account-
    ants Grade I does not have any relevance as regards the service under the
    Divisional Accountants Service Rules of the P.W.D.
D
             The appeal is accordingly allowed but in the circumstances without
    costs.

    CA. NOS. 8417-18 & 8419/95
    @ SLP {C) Nos. 7050-51/95 AND 9506/95
E
             Leave granted.

         In view of the judgment rendered above in C.A. 4172 of 1995, the
    appeals are allowed. No costs.

    RP.                                                        Appeal allowed.