Holding

The State Government’s issuance of G.O. 1648 to create divisions within the Warangal zone was illegal and invalid; only the President can order such re‑organisation under Article 371‑D.

Issues considered

Whether the State Government may reorganise a local cadre within an already constituted zone by creating divisions without a presidential order under Article 371‑D.
Whether paragraph 3(7) and the phrase “or constituted otherwise” in the 1975 Presidential Order confer such power on the State.
Whether G.O. 1648 (1982) is valid for allotting employees to the newly created divisions.
Whether the President’s proviso to paragraph 3(1) is exclusive in permitting further re‑organisation of local cadres.

Legislation cited

Constitution of Indias. Article 371-D
Constitution (Thirtysecond Amendment) Act, 1973s. Section 3
General Clauses Act

Subjects

Article 371-Dlocal cadreszone reorganisationpresidential ordercommercial taxes departmentpromotion seniorityadministrative lawconstitutional lawAndhra Pradesh

Judgment

~ S. PRAKASHA RAO AND ANR.
v. A
COMMISSIONER OF COMMERCIAL TAXES AND ORS.

FEBRUARY 23, 1990

~- [RANGANATH MISRA, M.M. PUNCHHI AND B
K. RAMASWAMY, JJ.]

- '
Constitution of India, Article 371-D/Andhra Pradesh Public
Employment (Organisation of Local Cadres and Regulation of Direct
Recruitment) Order, 1975: Para 3(1), proviso and paras 3(7), 4 &
5 ( i )-A. P. Commercial Taxes Department-Local Cadres of Junior
Assistants and Senior Assistants organised for Waranga/ Zone for c
~ seniority and promotion-State Government subsequently creating divi-
sions within the zone and reallocating employees-Validity of.

Article 371-D brought into the Constitution by Thirtysecond
Amendment Act, 1973, with effect from July 1, 1974 empowered the D
President in respect of the State of Andhra Pradesh by an Order ( 1) to
require the State Government to organise any class or classes of posts in
---{' a civil service of, or any class or classes of civil posts under, the State
into different local cadres for different parts of the State and allot the
persons holding such posts to the local cadres, and (2) to specify any
part or parts of the State which shall he regarded as the local area for E
~
direct recruitment to posts in any local cadre.
-~
In exercise of the power so conferred the President issued the
Andhra Pradesh Public Employement (Organisation of Local Cadres

"'
and Regulation of Direct Recruitment) Order, 1975 on October 18,
• 1975. Para 3(1) of the Order empowered the State Government to
' F
organise the local cadre within a period of twelve months. The term
'local cadre' was defined in para 2(1)(e) to mean any local cadre of posts
under the State Government organised in pursuance of para 3, or con-
stituted otherwise, for any part of the State. The proviso added to para
3(1) subsequently and published through G.O. Ms. No. 34 dated
January 24, 1981, empowered the President, notwithstanding the expi- G
~ ration of the period of twelve months, to require the State Government,
whenever he considered it expedient so to do, to organise local
cadres for different parts of the State. Para 3(7) permitted the State
Government to organise or to continue more than one cadre in respect
of any category of posts in any department for any part of the State.
Para 4 provided mode of allotment of employees to local cadres. Para H

561
562 SUPREME COURT REPORTS [1990] I S.C.R.

A 5(1) declared that each part of the State for which a local cadre has been """'
organised, in respect of any category of posts, shall be a separate unit J
for purposes of recruitment, appointment, discharge, seniority, promo-
tion and transfer. In the table in the schedule thereto the State was
divided into seven zones and zone V consisted of the revenue districts of
Adilabad, Karimnagar, Warangal and Khammam. Instructions were
B issued for implementation of the Presidential Order through G.0.Ms.
No. 728 dated November 1, 1975 in organising the local cadres. ._;{

In pursuance of para 3( 1) of the Order the State Government in
Commercial Taxes Department issued order G.O.Ms. No. 581 dated
May 24, 1976 organising zones and the Warangal Zone consisted of .,_
C revenue districts of Adilabad, Karimnagar, Warangal and Kham-
mam, which was co-terminus with zone V of the Presidential Order.
The Junior Assistant in each revenue district in Warangal zone was a ~.
separate district post, but for the purpose of promotion to the post of r
Senior Assistants and Assistant Commercial Taxes Officers, which were
zonal posts, common seniority of the Junior Assistants and Senior
D Assistants working in all the four revenue districts was being main-
tained and promotion made in accordance with the rules.

Subsequently, however, the State Government created separate ~
divisions within the zones in the Commercial Taxes Department
through G.O.Ms. No. 1900 dated December 22, 1981 carving out
E Adilabad and Karimnagar as Adilabad Division and Warangal and
Khammam as Warangal Division. Options were called for and the ~
employees allotted in G.0.Ms. No. 1648 dated November 22, 1982 to
the respective divisions. t
Agrieved by the said order respondent Nos. 4 and S filed a petition
F before the State Administrative Tribunal contending that for promotion
from Senior Assistant to Assistant Commercial Taxes Officer zonal
seniority of Warangal local area comprising of Warangal, Khammam,
Karimnagar and Adilabad was the criteria, that the Adilabad division
consisting of.Adilabad and Karimnagar districts of Commercial Taxes
Department could not be treated to be a zone, and that the divisional
G seniority prepared by the department was bad in law. The Tribunal
held that the zonal seniority was the criteria for purposes of promotion,
and allowed the petition.
,.
The State Government in exercise of its power under cl. (S) of Art.
371-D annulled that order. Thereupon, respondent Nos. 4 and S filed a
H writ petition under Art. 32 of the Constitution wherein this Court
S.P. RAO v. COMMR. OF COMMERCIAL TAXES 563

°'f' declared cl. (5) of Art. 371-D as ultra vires. Left with no alternative the A
State filed special leave petition against the original order of the Tri-
bunal, which was dismissed.

Subsequently, the appellants-beneficiaries of G.O.Ms. No. 1648
of 1982, filed representative petition before the Tribunal, which was
·'\. dismissed. B

In the appeal by special leave it was contended for them that the

- State Government continues to have its inherent power to organise local
cadres to meet the exigencies of administrative needs, as there was no
prohibition in that regard in the Order, and that the phrase 'or con-
stituted otherwise' engrafted in the definition of 'local cadre' in para
2(1)(e) read with para 3(7) gave ample power to the State Government
to create a zone within the Warangal zone for the purpose of recruit-
c

ment, seniority and promotion in the Commercial Taxes Department.

Dismissing the appeal, the Court,
D
HELD: 1. The action taken by the State Government in issuing
G.O.Ms. No. 1648 dated November 20, 1982 was illegal and invalid
_-{ contraveniJ!g the proviso to para 3(1) and para 4 of the Presidential
Order. [573C]

2.1 O~ce the State Government had organised the Commercial E
;
Taxes Department by constituting different local cadres and Warangal
zone comprising of the four revenue districts, namely, Adilabad,
Karimnagar, Khammam and Warangal was declared as local area for
local cadres of the Department through G.O.Ms. No. 581 dated May
24, 1976 in exercise of the powers under para 3(1), it ceased to have any
power to bifurcate or reorganise a zone. within a zone, cadre or cadres
therein. '[572E-G l

2.2 In exercise of the power under the proviso to para 3(1), it is
for the President and President alone notwithstanding the expiry of the
period of twelve months prescribed in para 3(1), by an order require
the'·State Government whenever he considers it-expedientso to do to G
--i, have thepower u~der para 3(1) exercised. Therefore, the Stat~ Govern-
ment shall have to place necessary material before the President; the
President shall consider that it is expedient to organise any class or
classes of posts in the civil services of and -class or classes of civil posts
under, the State into a further local cadre within the local cadre in the
zone already prescribed and to pass an order in that regard requiring H
the State Government to so organise it.[572G; S73A] -. ·
564 SUPREME COURT REPORTS [1990] I S.C.R.

A
2.3 However, for the purpose of efficient administration or con- y
venience, the State Government may create division/divisions within
the local area or local cadre. But for the purpose of recruitment, senio-
rity, promotion, discharge, etc. the local cadre once organised under
para 3(1) shall be final and continue to be operative until action is taken
under the proviso to para 3(1) of the Order. In the instant case, no
B \order of the Presidei;it, as provided under the proviso, was made. [573A-B]
-'r •
3. The Presidential Order was made pursuant to the power given

c
under Art. 371-D, which is a special provision made under the Con-
stitution (Thirtysecond Amendment) Act, 1973 peculiar to the State of
Andhra Pradesh. Therefore, the State Government had no inherent
power in creating a zone or organising local cadres within the zones
ex~ept in accordance with the provisions of the said Order. [573D]
'
-
4. The phrase 'or constituted otherwise' defined in para l(l)(e) is I"'
only related to the power given by the President to the State Govern-
ment to organise local cadre. Para 3(1) is the source of that power. The
D said phrase is, therefore, to be understood in the context and purpose
which Art. 371-D and the President Order seek to achieve. The State
Government cannot create local cadres at its will. [573E; 575A]
'~
Kochuni v. States of Madras & Kera/a, 'AIR 1960 SC !080 and
Lilavati Bai v. The State of Bombay, [1957] SCR 721 at 735, dist-
E inguished.

5. The power given to the State Government in para 3(7) of the 'r'
Order is only to organise a separate cadre in respect of any category of
posts in any department when more than one cadre in respect of such
category exists in each department. So, the State Government ·may Y
F or-ganise one cadre when more than one cadre in respect of different
categories of posts exist in a zone under para 3(1) of the Order. For
instance, while creating local cadre co-terminus with the administrative
control of the Dy. Commissioner, Commercial Taxes, local cadre for
Senior Assistants may be created. It is also made manifest in Instruction
No. 7 and 9(e) of the instructions contained in G.O.Ms. No. 728 dated
G November I, 1975. But it is only for the purpose of administrative
convenience, notfor the purpose of recruitment, seniority or promotion
etc., as the case may be:1575C-E]
r
Thus, the creation of a division and maintaining separate senio-
rity of Junior Assistants and Senior Assistants in the Commercial Taxes
11:1 Department for adilabad and Warangal Divisions were illegal, contrary
S.P. RAO v. COMMR. OF COMMERCIAL TAXES [K. RAMASWAMY, J.) , 565

r to order issued in G.0.Ms. No. 581 and the Presidential Order: [575F]

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1259
of 1990.

From the Judgment and Order dated 6.10.1989 of the Andhra:
---t Pradesh Administrative Tribunal in R.P. No. 2403 of 1987. B
t-
Dr. L.M. Singhvi and Y.P.Rao for the Appellants.

- P.P. RSQ,_ K. Madhava Reddy, Ms. Rani Chhabra, T.V.S.N 0
Chari and B. Rajeshwar Rao for the Respondents.

The Judgment of the Court was delivered by c
K. RAMASWAMY, J. 1. Special leave granted.

This appeal under Article 136 is against the order dated October
6, 1989 made in R.P. No. 2403 of 1987. The facts are as under: D

2. The respondents Nos. 4 & 5, B. Kumara Swamy and G.
- A'". Amarender, in this appeal filed R.P. No. 1615 of 1984 before the
Andhra Pradesh Administrative Tribunal, Hyderabad, contending for
promotion from Senior Assistant to Assistant Commercial Taxes
Officer, zonal seniority of Warangal local area comprising of Waran- E
gal, Khammam, Karimnagar and Adilabad is the criteria. The
Adilabad division consisting of Adilabad and Karimnagar Districts of
the Commercial Taxes Division cannot be treated to be a zone and the
divisional seniority prepared by the department is bad in law. It was
held by the Tribunal by order dated February 18, 1986, that the zonal
seniority is the criteria. Though, for the administrative convenience a F
division consisting· of the .revenue districts of Adilabad and Karim-
nagar may be treated as one division and Warangal and Khammam as
Warangal division may be carved out, for the purpose of promotion
zonal seniority has to be maintained. Accordingly, the Tribunal
allowed the Representation Petition. The Government of Andhra
Pradesh in exercising its power
- under cl. (5) of- Art.~371-D annulled
.

that order which had given nse to filing of W .P. No. 998 of 1986 in this
Court under Art. 32 of the Constitution. This Court declared cl. (5) of
Art. 371-D of the Constitution as ultra vires violating the basic
structure.The State Government filed S.L.P. No. ·8868 of 1987 against
order in R.P. No. 1615 of 1984 which was dismissed by this Court on
December 7, 1987. Subsequently, the petitioners impleading the H
566 SUPREME COURT REPORTS [1990] 1 S.C.R.

A respondents Nos. 4 and 5 and the 6th respondent, G. Satya Rao, filed y'
R.P. No. 2403 of 1987, which was dismissed by the Tribunal. The
appellants filed Civil Appeal No. 3203 of 1989 which was allowed by
this Court and remitted to the Tribunal and directed, "to examine the
legal effect of the Government order in G.0.Ms. No. 1648 dated
November 20, 1982 after again hearing the parties." Thereafter, the
B
Tribunal after considering the effects of the G.O. held that in the
impugned order that G.0.Ms. No. 1648 was issued unc!er Para 5(~(c)
of the Andhra Pradesh Public Employment (Organisation of Local
Cadres and Regulation of Direct Recruitment) Order 1975 for that "the
'order' no allotment of cadre in terms of para 4 of the order_ was
issued. The G.O.Ms. No. 1648 and G.0.Ms. No. 1900 do not mention
C the constitution of new local cadre for Adilabad Division and no order
was issued constituting a separate cadre in ·terms of 'the order'.
Accordingly, it reiterated the original order dated April 29, 1988.
-
3. The Constitution (Thirtysecond Amendment) Act, 1973
D through s. 3 thereof brought into the Constitution Art. 371-D with
effect from July 1, 1974. This is a special provision in respect of the
State of Andhra Pradesh empowering the President, having regard to
the requirements of the State as a whole for equitable opportunities
and facilities for the people belonging to different parts of the State, in '...___
the matter of public employment and in the matter of education, and
E different provisions may be made for various parts of the State to make
an order, in pa.rticular-

(a) require the State Government to organise any class or classes
of posts in a civil service of, or any class or classes of civil posts
under, the State into different local cadres for different parts of
the State and allot in accordance with such principles and proce- y
F dure as may be specified in the order the persons holding such
posts to the local cadres so organised;

(b) specify any part or parts of the State which shall be regarded
as the local area-
G (i) for direct recruitment to posts in any local cadre (whether
organised in pursuance of an order under this article or con-
stituted otherwise) under the State Government .....

(Other clauses are not relevant for the purpose of this case,
Hence omitted.)
H
S.P. RAO v. COMMR. OF COMMERCIAL TAXES [K. RAMASWAMY, J.I 567

r 4. In exercise of the power under cl. (1) & cl. (2) of Art. 371-D
the President issued 'the order' in G.S.R. No. 524-E dated October 18,
A
1975 which was notified through G.O.Ms. No. 674 dated October 20,
1975. Para 2(1)(c) interpretation clause defines 'local area' in relation
to local cadre thus:

"'local area', in relation to any local cadre, means the local B
~· area specified in paragraph 6 for direct recruitment to posts
,
in such local cadre, and includes, in respect of posts belong-
ing to the category of Civil Assistant Surgeons, the local
area specified in sub-paragraph (5) of paragraph 8 of this
~
Order.''

Para 2( 1)( e) defines 'local cadre': c
~ " 'local cadre' means any local cadre of posts under the
State Government organised in pursuance of paragraph 3,
or constituted otherwise, for any part of the State."
D
Para 2( l)(m) defines 'zone':
'
--I " 'zone' means a zone specified in the Second Schedule
comprising t.he territories mentioned therein."

Para 3( I) provides organisation of local cadres: E

.
=
"The State Government shall, within a period of twelve
months from the commencement of this Order, organise
classes of posts in the civil services of, and classes of civil
-y posts under, the State into different local cadres for diffe-
rent parts of the State to the extent, and in the manner, F
hereinafter provided."

The _proviso thereto was added and was published through
G.O.Ms. No. 34G.A.(SPF. A.) Deptt. dated January 24, 1981, which
reads thus:
G
..... "Provided that, notwithstanding the expiration of the said
period, the President may by order, require the State
Government, whenever he considers it expedient so to do,
to organise any classes of posts in the civil services of, and
classes of civil posts under, the State into different local
cadres for different parts of the State." H
(emphasis supplied)
568 SUPREME COURT REPORTS [1990) 1 S.C.R.

A Sub-paragraph (2) provides that the posts belonging to the cate-
gory of lower division clerk, (now redesignated as Junior Assistant),
and to each of the other categories equivalent to, or lower than that of
a lower division clerk, in each department in each district shall be
organised into a separate cadre. Sub-paragraph (3) provides the posts
belonging to each non-gazetted category, other than those referred to
B in sub-paragraph (2), in each Zone shall be organised into a separate
cadre. Sub-paragraph (4) provides, the post belonging to each -{
specified gazetted category in each department in each zone shall be'
organised into a separate cadre. Paragraph 3(5) with a non-obstanti
clause provides that:
...
"Notwithstanding anything contained in sub-paragraphs
c (3) and (4), the State Government may where it considers it
expedient so to do and with the approval of the Central
Government organise the posts belonging to any of the
categories referred to therein, in any department, or any
establishment thereof, in two or more contiguous. zones into
D a single cadre."

Sub-paragraph (6) is not material. Hence omitted.

Sub-paragraph (7) provides:

E "In organising a separate cadre in respect of any category
of posts in any department for any part of the State,
nothing in this Order shall be deemed to prevent the State •
Government from organising or continuing more than one
cadre in respect of such category in such department for such
part of the State." y
F
Paragraph 3(8) is also not necessary. Hence omitted.
(emphasis supplied)

Paragraph 4 provides mode of allotment of persons, holding
posts required to be organised into local cadres in accordance with the
G principles and procedure laid down therein, the details of which are
not material. Hence omitted.

Paragraph 5 declares that:

"(1) Each part of the State, for which a local cadre has
H r been organised, in respect of any category of posts, shall be
S.P. RAOv. COMMR. OF COMMERCIAL TAXES [K. RAMASWAMY,J.] 569

~·· a separate unit for purposes of recruitment, appointment,
A
discharge, seniority, promotion and transfer, and such other
matters as may be specified by the State Government, in
respect of that category of posts."

(Other sub-paragraphs relate to transfer of persons and are not re le-
van! tor the purpose of this case. Hence omitted.). Paragraph 6 deals 'B

""'· with local areas:

( 1) Each district shall be regarded as a local area-

(i) for direct recruitment to posts in any local cadre under the
State Government comprising all or any of the posts in any
department in that district belonging to the category of a lower
c
division clerk or to any other category equivalent to or lower
~ than that of a lower division clerk (Junior Assistant);·

(ii) for direct recruitment to posts in any local authority within
that district, carrying a scale of pay, the minimum of which does D
not exceed the minimum of the scale of pay of a lower division
clerk or a fixed pay not exceeding that amount.
_-{ (2) Each zone shall be regarded as a local area-the details of
which are not material. Hence omitted.
(emphasis supplied) E
;
In the Table '.Local area and the ratio' in the Schedule, the State
~ of Andhra Pradesh was divided into seven zones and zone V consists of
the revenue districts of Adilabad, Karimnagar, Warangal and Kham-
-y mam. Instructions have been issued for implementation of the order
through G.0.Ms. No. 728 dated November 1, 1975, in organising the F
local cadres. Para 3 thereof postulates, after quoting paragraph 3(1) of
the order referred to herein before, thus:

"A local cadre is a cadre comprising the posts belonging to
a category in a Department and located within a specified
part of the State. The concept of the local cadre is thus G
' related to the concept of the unit of appointment under the
~ service rules; the part of the State for which a local cadre is
organised in respect of any category will serve as a unit of
appointment etc., for that category. The scheme of organi-
sation of local cadres under-the Presidential Order applies
generally to all non-gazetted categories, other than those H
570 SUPREME COURT REPORTS [1990] 1 S.C.R.

specifically exempted under Government of India Notifica-
A tion G.S.R. No. 529, (E), dated 18th October, 1975 issued
under paragraph 3(8) of the Order, as also to the specified
gazetted categories, i.e., the gazetted categories listed in
the Third Schedule to the Order and those that may be
notified in pursuance of paragraph 2(i)(j) of the Order by
B the Central Government."
-{
5. Instruction 4(a) says that the lower division clerks or equiva-
lent categories or lower than that were designated as a District Cadre.

c
Posts belonging to other non-gazetted categories were designated as
zonal cadre and specified gazetted cadres were also designated as zonal
cadres. Instruction 7 provides thus:

"More than one Local Cadre permissible within Local i...
-
Area-It should be borne in mind that where the State '
Government is required to organise a local cadre for any
part of the State, there is no objection to organising or
D continuing more than one local cadre for such part of the
State (vide paragraph 3(7) of the order). There is, there-
fore, no objection to having more than ·one cadre in
Revenue District in respect of a post belonging to the
category of Lower Division Clerk (Junior Assistant) or
below or to having more than one cadre in a zone in respect
E of a higher category."
(emphasis supplied)

Instruction 9(e) provides re-adjustment of territorial jurisdic- "'·.
tion, thus:

F, "In several departments, the unit of appointment in respect
of non-gazetted categories is linked to the territorial juris-
diction of an authority or officer subordinate to the Head
of Department. For instance, the unit of appointment of
Upper Division Clerks (Senior Assistants) in the Commer-
cial Taxes Department is the division in charge of
Q Dy. Commissioner. In the case of such departments if it
becomes necessary to alter the units of appointment in
order to bring them into conformity with the Presidential
Order, a corresponding adjustment in the territorial juris-
diction of the departmental authority may also become
necessary and will have to be made ...... "
S.P. RAO v. COMMR. OF COMMERCIAL TAXES [K. RAMASWAMY. J.} 571

6. Thus, it is seen that pursuant to the power given under els. (1)
A
& (2) of Art. 371-D the President had issued the order organising local
cadres and zone V consists of Adilabad, Warangal, Karimnagar and
Khammam revenue districts. It is the local area for the local cadres.
The post of the Junior Assistant is the district cadre post and the post
of Senior Assistant and Assistant Commercial Taxes Officers, etc. are
the zonal posts. The State Gqvernment is empowered under the Presi- B
dential Order to organise the local cadres within a period of twelve
months from October 20, 1975. In pursuance thereof the State
Government in Commercial Taxes Department issued order G.O.Ms.
No. 581 dated May 24, 1976 ,organising zones for the purpose of Com-
mercial Taxes Department, namely, Visakhapatnam, Kakinada,
Krishna, Guntur, Triputhi, Karnool, Warangal, Hyderabad-I and
Hyderabad-II. Warangal zone consi~ts of revenue d]stricts of Adila-
c
bad, Karimnagar, Warangal and.Khammam. Thus, the Warangal zone
of Commercial Taxes Department for the purpose of recruitment,
seniority, promotion, transfer, etc. of local cadres is co-terminus with
the zone V of the Presidential Order. The Junior Assistant in each
revenue district in Warangal zone is a separate district JlO.st, .but for D
the purpose of promotion to the post of Senior Assistants and
Assistant Commercial Taxes Officers, which are zonal posts common
seniority of the Junior Assistants, Senior Assistants working in all the
four revenue districts shall have to be maintained and promotions
made in accordance with Ministerial Service Rules or the Commercial
Taxes Subordinate Service Rules· issued under proviso to Art. 309 of E
the Constitution as the case may be. It would be subject to rule of
reservation for local candidates as adumbrated in para 8 of the Order.
and the general rule of reservation made in Rule 22 in Andhra Pradesh
State and Subrodinate Service Rules.
7. It would appear from the record that the Government
F
intended to reorganise, for the purpose of efficient administration of
the Commercial Taxes Department and create separate divisions
within the zones and issued through G.0.Ms. No. 1900 dated
December 22, 1981 carving out Adilabad and Karimnagar as Adilabad
division and Warangal and Khammam as Warangal division with the
administrative control of the concerned Dy. Commissioner of Com-
G
mercial Taxes at Adilabad and Warangal. As a follow up action.
options have been called for from the employees and they have been
allotted in G.0.Ms. No. 1648 dated November 22, 1982 to the respec-
tive divisions. It is not disputed that the allotment and transfer were
not made in terms of Para 4 of the Order. As stated earlier this action
had given rise to the above Representation Petitions and the orders H
passed by the Tribunal and the results ensued thereunder.
572 SUPREME COURT REPORTS [1990] I S.C.R.

A 8. Dr. L.M. Singhvi, the learned Senior Counsel for the appel- y
lants, contends that paragraph 3(7) of the Order empowers the State
Government to create a zone within the Warangal zone for the
purpose of recruitment, seniority and promotion. The State Govern-
ment has inherent power in that regard. There is no express prohibi-
tion in that regard in the order. The phrase 'or constituted otherwise'
B engrafted in the definition of local cadre in paragraph 2(e) read with
paragraph 3(7) gives ample power to the State Government to
organise any local cadre within the zone for the Commercial Taxes
Department. The action thus, taken by the State Government is
clearly within its power. The contra finding recorded by the Tribunal is
illegal. He placed stron_g reliance on a decision of a single member
Tribunal made in R.P. No. IOI of 1982 and batch dated April l, 1982.
C He further contended that in maintaining harmony in Centre-State
~~lationship, the State Government shall continue to have its inherent
power to organise its local cadre to meet the exigencies of its
administrative needs. The prior approval or concurrence of the Cent-
ral Government is redundant. We find no force in these contentions. It
D is already seen that in exercise of the power under paragraph 3( l) of
the Order the State Government shall, within a period of twelve
months from the date of the commencement of the Order, organise
class or classes of posts in the civil services of, and class or classes of
civil posts, under the State into different local cadres for different
parts of the State in the manner therein provided. It is already seen
E that through G.O.Ms. No. 581, the State Government in fact had
organised the Commercial Taxes Departments by constituting diffe-
rent local cadres and Warangal zone comprised of the four revenue
districts, namely, Adilabad, Karimnagar, Khammam and Warangal
was declared as local area for local cadres of the Department. Having
done so, the question emerged whether the State Government has
F further power to reorganise the local cadre within the zone. In our
considerd view, we have no hesitatio.n to hold that once the State
Government has organised the class or classes of posts in the civil
services of and class or classes of civil posts, under the State as local
cadres, -,it ceases to have any power to bifurcate or reorga_nise a zone
. within a zone, cadre or cadres therein. In exercise of the power under
G proviso to paragraph 3( I), it is for the President notwithstanding the
expiry of the period of twelve months prescribed in sub-paragraph (I)
of paragraph 3, by an order require the State Government whenever
he considers it expedient so to do to have the power under paragraph
3(1) exercised. Thereby, it is clear that the State Government shall
-have to place necessary material before the President; the President
l-1 shall consider that it is expedient to organise any class or classes of
S.P. RAO v. COMMR. OF COMMERCIAL TAXES [K. RAMASWAMY, J.] 573

posts in the civil services of and class or classes of civil ~ost_~;. under the
State into a further local cadre within the local cadre in the zone A
already prescribed and to pass an order in that regard requiring the
State Government to so organise it. It is made clear that for the
purpose of efficient administration or convenience, the State Govern-
ment may create division/divisions within the local area or local cadre.
But for the purpose of recruitment, seniority, promotion, discharge,
""--
I etc. the local cadre once organised under para 3( I) shall be final and
B

continue to be operative until action is taken under proviso to sub-
paragraph (1) of paragraph 3 of the Order. When we enquired the
learned counsel for the State, Shri Madhava Reddy candidly conceded
that no order of the President, as provided under the proviso, was
made. Therefore, the action taken by the State Government in issuing
G.O.Ms. No. 1648 dated November 20, 1982 is clearly illegal and c
invalid contravening the proviso to sub-paragraph (1) of paragraph 3,
undoubtedly it contravened para 4 of the Order.
9. It is seen that the order was made pursuant to the power given
to the President under Art. 371-D, which is a special provision made_
under the Constitution (T\i.i.r!y-second Amendment) Act, 1973 peculiar · D
to the State of Andhra Pradesh due to historical background. ·There-
fore, the State Government have no inherent power in creating a zone
or organising local cadre within the zones except in accordance with
the provisions made in the Andhra Pradesh Public Employment
(Organisation of Local Cadres and Regulation for Direct Recruit-
; ment) Order. It is true that the clause 'or constituted otherwise' E
defined in paragraph 2( e) is of wide impor\, ~ut is only relatable _to the
powenglven by the President to the St_ate Government to organise~local
cadre: Paragraph 3( I) is the source of that power, but the exercise
thereof is hedged with a limitation of twelve months from the date of
the commencement of the Order. Therefore, the power to organise
class or classes of posts of civil services of, and class or classes of civil F
posts, under the State into different local cadres should be exercised
by the State Government in accordance with para 3( I) before the
expiry of the twelve months from October 20, 1975. If the ,exercise
of the power is not circumscribed within limitation, certainly under
General Clauses Act the power could be exercised from time to time in
organising local cadres to meet.the administrative exigencies. The pre- G
scription of limitation is a fetter put on the exercise of power by the
State Government. Obviously, realising this reality and the need to
organise local cadres, subsequent thereto the amendment was made
and was published in G.O.Ms. No. 34 G.A. dated January 24, 1981
introducing proviso to Paragraph 3(1). Thereunder, notwithstanding
the expjry of the said period, the President alone has been given power H
574 SUPREME COURT REPORTS [1990] 1 S.C.R.

A to organise local cadres in respect of class or classes of posts in civil
services of and class or classes of civil posts, under the State. That too
y
subject to the conditions precedent laid ..therein. Thus, it is the Presi-
dent and the President alone has been given power under proviso by
an order to require the State Government to organise the local cadres
in relation to any class or classes of posts in the civil services of and
B class or classes of civil posts under the State into different local cadres.
It could be considered in yet another perspective. Para 2( e) indicates
that President himself may create a local cadre instead of requiring the
State Government to organise local cadre. For instance, Para 3(6)
empowered the President to create local cadre for the city of
Hyderabad. Similarly, under proviso to para 3(1) the President may
require the State Government to create a local cadre within a zone. So
C the .phrase 'or constituted otherwise' cannot be understood ,dehorse
the scheme of the Presidential order. No doubt in common parlence,
the word 'otherwise' is of 'wide' amplitude. This Court in Kochuni v.
States of Madras & Kera/a, AIR 1960 SC 1080, Subba Rao, J., as he
then was, speaking per majority in paragraph 50 while construing the
D word 'otherwise' held that it must oe confined to things analogous to
right or contract such as lost grant, immemorial user etc. The word
'otherwise' in the context only means whatever may be the origin of
the receipt of maintenance._ The ratio thereunder cannot be extended
in the contextual circumstances obtainable on the facts in this case.
Similarly, in Lilavati Bai v. The State of Bombay, [1957] SCR 721 at
E 735, Sinha J., as he then was, speaking for the Constitution Bench
interpreting Explanation (a) to s. 6 of Bombay Land Requisition Act,
1948, as amended in 1950 and repelling the application of ejusdem
generis doctrine laid the Jaw thus:

"The legislature has been cautious and thorough-going
F enough to bar all avenues of escape by using the words 'or
otherwise'. These words are not words of limitation but of
extensio.n so as to cover all possible ways in which a
vacancy may occur. Generally speaking a tenancy is ter-
minated by acts of parties or by operation of law or by
eviction by the landord or by assignment or transfer of the
G tenant's interest. But the legislature, when it usea the
words 'or otherwise', apparently intended to cover other
cases which may not come within the meaning of the pre-
r,
ceding clauses, for example a case where the tenant's occu-
pation has ceased as a result of trespass by ·a third party.
The legislature, in our opinion, intended to cover all possi-
H . ble cases oT vacancy occurring due, to any reasons what-
soever."
S.P.RAO v. COMMR.OFCOMMERCIAL TAXES [K. RAMASWAMY,J.] 575

Thus, contextual interpretation to the word 'or otherwise' was given
by this Court. Therefore, the phrase 'constituted otherwise' is to be A
understood in that context and purpose which Art. 371-D and the
Presidential Order seek to achieve. If the interpretation given by the
appellants is given acceptance it amounts to giving blanket power tO
the State Government to create local cadres at its will tending to defeat
the object of Art. 371-D and the Presidential Order. Accordingly, we B
have no hesitation to reject the interpretation of wider connotation.
The ratio in these decisions does not render any assistance to the
appellants.

11. Similarly, the power given to the State Government in sub-
paragraph (7) of paragraph 3 of the Order is only to organise a sepa-
rate cadre in respect of any category of posts in any department when c
more than one cadre in respect ofsuch category exists in each depart-
ment; so that State Government may organise one cadre when more
than one cadre in respect of different categories of posts exist in a zone
under para 3( 1) of the Order. It is clear when we see the language in
para 3(7) which says that: "nothing in this order shall be deemed to D
prevent the State from organising". Take for instance while creating
local cadre co-terminus with the administrative control of the
Dy. Commissioner, Commercial Taxes, local cadre _for Senior
Assistants may be created. It is also made manifest by Instruction No.
7 and 9(e) of the instructions contained in G.0.Ms. No. 728 G.A.D.
dated November 1, 1975. But, as stated earlier, it is only for the E
purpose of administrative convenience, not for the purpose of recruit-
ment, seniority or promotion etc., as the case may be. Thus, we have
no hesitation to hold that the creation of a division and maintaining
separate seniority of Junior Assistants and Senior Assistants for
Adilabad and Warangal Divisions are illegal, contrary to order issued
in d.O.Ms. No. 581 and the Andhra Pradesh Employment (Organisa- F
tion of Local Cadre and Regulation of Direct Recruitment) Order,
1975. The single member of the Tribunal in R.P. No. 101/82 dated
April 1, 1982 did not consider the effect of the order in proper perspec-
tive and is illegal.

12. Accordingly, the impugned order of the Administrative Tri- G
bunal 1s not vitiated by any manifest error of law warranting
interference.

The appeal is accordingly dismissed, but without costs.

P.S.S Appeal dismissed. H