ition No 267 of 1979 Under Article 32 of the Constitution E X Joseph and N section Das Bahl for the Petitioners
L N Sinha Att
of India and Hardayal Hardy for RR 1 to 4
section L Aneja for RR 5 10 and 13
The Judgment of the Court was delivered by CHANDRACHUD C J
This is a Writ Petition under Article 32 of the Constitution by which the petitioners ask for an appropriate writ quashing the orders dated May 29 1965 and May 16 1975 issued by Respondent 2 the Director General of Posts and Telegraphs New Delhi and for striking down the provisions in Col 10 of the Schedule to the Recruitment Rules 1969
Petitioner 1 joined the Posts and Telegraphs Audit Office of the Government of India at Delhi on July 31 1956 as a Lower Division Clerk
In 1961 he qualified in the departmental examination for promotion as an Upper Division Clerk
On May 4 1962 he joined the Savings Bank Control Organisation and Savings Bank Internal 974 Check Organisation SBCO ICO as an Upper Division Clerk
Petitioner 2 joined the P and T Audit Office at Madras on June 3 1950 as a Lower Division Clerk
On passing the departmental examination he was promoted as an Upper Division Clerk on September 10 1958
He joined SBCO ICO on April 1 1963 in the same capacity
He is due to retire on October 31 1980
Respondent 1 to the Writ Petition is the Union of India Respondent 2 is the Director General of P  T and Respondents 3 and 4 are the Post Master Generals of the Delhi Circle and the Tamil Nadu Circle respectively
Respondents 5 to 13 though junior to Petitioner 1 in the Delhi Circle have been promoted as Selection Grade ClerksHead Clerks in supersession of him
Respondents 14 to 47 though junior to Petitioner 2 in the Tamil Nadu Circle have been promoted as Selection Grade ClerksHead Clerks in supersession of him
The petitioners in effect challenge their supersession to the post of Selection Grade ClerksHead Clerks
Until the year 1961 the Savings Bank work of the post office was under the supervision and control of the Indian Audit and Accounts Department of which the Comptroller and Auditor General of India is the Head
The branches of the Indian Audit and Accounts Department doing the Savings Bank work and the work of auditing P  T accounts were called P  T Audit Offices
The Government of India having decided that the Savings Bank work should be taken over by the P  T Department the audit offices were relieved of that responsibility by stages during the years 1961 to 1964 and a new Organisation called the Savings Bank Control Organisation and Savings Bank Internal Check Organisation SBCO ICO was created on May 4 1962
With the setting up of that organisation volunteers were given the option of joining it
Amongst those who were thus invited to opt for service in the new Organisation were Upper Division Clerks in the Audit Offices Lower Division Clerks who had qualified for promotion to the Upper Division Clerks  cadre in the audit offices employees under the Post Master General and lastly those from amongst the time scale clerks in the P  T Accounts Organisation
Employees belonging to the aforesaid departments who opted for service in the new Organisation were transferred thereto in the interest of public service
In the audit department 10 of the sanctioned strength of the posts of Upper Division Clerks were in the Selection Grade and promotion to those posts was made on the basis of seniority cum fitness
By a letter dated May 15 1964 the P  T Board informed all the Heads of Circles that the sanction of the President was obtained 975 to the conversion of 10 posts in the cadre of UDCs in the SBCO ICO into Selection Grade UDCs
But by the impugned letter No 56465 SPB I dated May 29 1965 addressed to all Heads of P  T Circles the Director General Posts and Telegraphs modified the policy of reservation of 10 of the posts in the cadre of UDCs in the Selection Grade by directing that the total number of Selection Grade posts available for the UDCs who came from the Audit Offices should be 10 of the total number of Audit office UDCs working in any particular Circle of the organisation
Thus whereas under the original intendment if the total number of posts in the cadre of UDCs in the new Organisation was 100 10 posts were available in the Selection Grade for all the UDCs under the new policy if out of the total strength of 100 40 posts were occupied by UDCs who had come from the Audit Offices they would as amongst themselves be entitled to four posts only in the Selection Grade
Under the new dispensation the test is how many UDCs from Audit Offices are working in the Circle not what is the total strength of the UDC cadre in the Circle
On January 22 1968 the President of India acting in exercise of his powers under Article 309 of the Constitution framed rules regulating the recruitment to the cadre of UDCs and other posts in the SBCO ICO
The rules are called The Indian Posts  Telegraphs Clerks in Savings Bank Control and Internal Check Organisation Recruitment Rules 1969
Brevity is obviously indicated and for its sake we will refer to these rules as the Recruitment Rules 1969
Rule 4 provides that the method of recruitment to the various posts the age limit qualifications etc
shall be as specified in Columns 4 to 12 of the Schedule provide to the Rules
Column 4 of the Schedule provides that the post of Selection Grade UDCs is a non Selection post
Column 9 provides that recruitment of Selection Grade UDCs will be exclusively by promotion
Column 10 provides that the appointment to the Selection Grade will be made from amongst Upper Division Clerks with 10 years of service in that grade in case of Audit office Staff or with five years service in that grade in case of other Upper Division Clerks
This is one of the provisions of the Rules which is challenged as being discriminatory
On the basis of the recommendations made by the Third Pay Commission the Supervisory Cadre in the SBCO ICO was reorganised with a view to providing better promotional avenues to the members of the staff
Accordingly the Director Gerneral issued instructions by his letter dated April 10 1975 that the existing provision relating to the Selection Grade Posts will be replaced by the creation of a cadre of Head Clerks and that the number of posts in the said 976 cadre of Head Clerks will be fixed at 20 per cent of the posts of UDCs
By another letter dated May 16 1975 the Director General clarified this position by saying Under the new scheme the audit office UDCs will get the posts of Head Clerks to the extent of 20 of their strength instead of 10 as at present
The remaining posts of Head Clerks will go to the non audit UDCs
 This is the other of the two impugned letters
The petitioners contend that the classification of the Upper Division Clerks for the purpose of promotion to the Selection GradeHead Clerks Cadre on the basis of the sources from which they are drawn and the limiting of the promotional posts available to them to 10 in the case of Selection Grade Posts and 20 in the case of the posts of the Head Clerks has resulted in stagnation of the UDCs
 who joined the new organisation from the Audit Offices
The petitioners  grievance is that UDCs
who joined that organisation from the P  T offices and who were junior to them in terms of the length of service in the UDC cadre have been already promoted to the Selection GradeHead Clerks cadre
This classification of the UDCs of the SBCO ICO into two groups for the purpose of promotion on the basis of the sources from which they are drawn is challenged by the petitioners as discriminatory arbitrary and unreasonable
According to them since the promotional post is a non selection post the only criterion for promotion from amongst the UDCs
in the SBCO ICO can be the length of service in the cadre of UDCs subject to fitness
Shri E X Joseph who appears on behalf of the petitioners has made a very neat argument focussing with the help of telling illustrations the injustice which has been done to the petitioners and to those similarly situated
The learned Attorney General who appears for the Union of India and Shri Aneja who appears for the UDCs
drawn from the other departments have attempted to meet Shri Joseph s argument but we are left in no doubt that the policy adopted by the Union of India is discriminatory and unreasonable
Though it appears prima facie that UDCs
in SBCO ICO were drawn from four different sources the sources are really two and not four
UDCs
in that organisation were appointed from amongst those who were previously serving in the Audit Offices and secondly from amongst the other employees of the P  T Department
The recruitment rules of 1969 make a classification amongst the UDCs by providing that in so far as the UDCs
drawn from the 977 Audit Offices are concerned they will be eligible for promotion to the Selection GradeHead Clerks Cadre after they put in a service of 10 years in the new organisation
In regard to the UDCs
drawn from the P and T Department the rules provide that they will be eligible for such promotion on completing five years  service only
Bearing in mind that the posts in the Selection GradeHead Clerks Cadre are non selection posts to which appointments are made by the test of seniority cum fitness that is the farthest limit to which classification of the UDCs
for the purpose of promotion could be carried
It is difficult to appreciate the logic or the principle behind the direction that the Selection Grade Posts or the posts of Head Clerks which will be available to the UDCs
drawn from the Audit offices will be determined on the basis of the existing strength at any given time of such Clerks in the particular circle
Since under the impugned directions the number of Selection Grade PostsHead Clerks has to be 10 of the number of UDCs
drawn from the Audit Offices no promotional opportunities at all will be available to them in certain circles in which less than 10 UDCs
drawn from the Audit Offices are working
It is indisputable that according to the impugned directive there have to be at least ten persons drawn from the Audit Offices in a Circle in order that at least one promotional post may become available to them
We are informed which again is not disputed that in some small Circles less than 10 UDCs
drawn from the Audit Offices are working in the new organisation
These persons for a purely fortuitous reason will be denied for ever all promotional opportunities
That seems to us wholly indefensible
Apart from the injustice in specific cases where UDCs
drawn from the Audit Offices are attached to comparatively smaller Circles the classification made for the purpose of determining the promotional opportunities seems to us unreasonable and arbitrary
It is contended by the learned Attorney General that persons drawn from different sources were not integrated into a common service in the instant case and therefore different rules of promotion can be applied to the two classes
We are unable to accept this contention
The duties functions and responsibilities of all the UDCs
in the new organisation are identical
They are all in the same cadre and they draw the same pay in the same grade
There is no reason then why different tests should be prescribed for determining their respective promotional opportunities and that too solely in reference to the source from which they are drawn
The test of educational qualifications can conceivable be an intelligible differentia bearing nexus 978 with the object of ensuring greater efficiency in public services
But once a cadre is formed by recruiting persons drawn from different departments of the Government there would normally be no justification for discriminating between them by subjecting one class to more onerous terms in the matter of promotional chances
The impugned directives are therefore unconstitutional
Apart from this consideration we are unable to understand how the Director General could issue any directive which is inconsistent with the Recruitment Rules of 1969 framed by the President in the exercise of his powers under Article 309 of the Constitution
Those rules do not provide for the kind of classification which is made by the Director General by his letters to the Heads of respective Circles of the new organisation
It may be recalled that the Recruitment Rules only provide for a classification on the basis of the length of service in the new organisation
Any directive which goes beyond it and superimposes a new criterion on the Rules will be bad as lacking in jurisdiction
No one can issue a direction which in substance and effect amounts to an amendment of the Rules made by the President under Article 309
That is elementary
We are unable to accept the learned Attorney General s submission that the directive of the Director General is aimed at further and better implementation of the Recruitment Rules
Clearly it introduces an amendment to the Rules by prescribing one more test for determining whether UDCs
drawn from the Audit Offices are eligible for promotion to the Selection gradeHead Clerks Cadre
The High Court of Kerala in Balakrishnan vs Comptroller  Auditor General of India and the High Court of Karnataka in Krishnamurthy CK vs Director General P  T have struck down the impugned directions issued by the Director General P  T on the ground that they are discriminatory and therefore unconstitutional
These decisions of the Kerala and the Karnataka High Courts are correct
In fact it is significant that the Union of India did not file any appeal against those decisions and has acquiesced in them
The High Court of Andhra Pradesh in V Subramanyam vs The Director General of Posts and Telegraphs New Delhi and the High Court of Madras in V section Rajagopalan vs post Master General seem to have rejected the writ petitions filed before them by persons similarly situated as the petitioners by holding that no 979 discrimination was involved in fixing separate quotas for the purpose of promotion between the UDCs
drawn from the Audit Offices and the other UDCs
With respect we consider the decisions of the High Courts of Andhra Pradesh and Madras as incorrect
The petitioners have also challenged the provision in Column 10 of item 3 of the Schedule to the Recruitment Rules of 1969 which provides that UDCs
drawn from Audit Offices must put in 10 years of service for acquiring eligibility for promotion whereas other UDCs are eligible for promotion after putting in 5 years  service
We are not inclined to entertain that challenge since the impugned provision has been in force since 1969 and it was not until the filing of this petition in 1979 that any objection was taken to its legality
Besides we are of the opinion that considering the history leading to the formation of the new organisation SBCO ICO the distinction made between the two classes of UDCs in the context of the length of their service for the purposes of promotion is not arbitrary or unreasonable
The staff of the Audit Offices which was engaged in the Savings Bank s work might well have faced retrenchment
Instead of subjecting them to that hardship they were given the option of joining the new organisation
Experience wise also there would appear to be fair justification for requiring them to put in longer service in the new organisation before they are eligible for promotion to the higher grade
That challenge has therefore to be repelled
In the result we allow the writ petition partly and quash the directions issued by respondent 2 by his letters of May 16 1975 and May 291965 to the effect that UDCs
drawn from the Audit Offices will be eligible for promotion to the Selection Grade on the basis of 10 per cent of the posts held by them or to the Head Clerks  Cadre on the basis of 20 per cent of the posts held by them in SBCO ICO
They and the other UDCs will accordingly be entitled equally to promotional opportunities
We direct that the petitioners and others similarly situated as them shall be promoted to the Selection Grade Head Clerks Cadre with effect from the dates on which they were due for promotion by applying the test of seniority cum fitness
Since we have upheld the provision in Column 10 of item 3 of the Schedule to the Recruitment Rules 1969 the petitioners will have become eligible for promotion after completing 10 years  service in SBCO ICO
Since the demotion of the respondents or any of them is likely to lead to undue hardship to them and to some administrative confusion the Government may create supernumerary posts to which the petitioners and others similarly situated as them may be promoted
We are informed that consequent upon the judgments of the High 980 Courts of Kerala and Karnataka the Government has adopted a similar course in the Kerala and Karnataka Circles
The Writ Petition thus succeeds partly
The petitioners will be entitled to their costs from the first respondent the Union of India
NKA Petition partly allowed


Summary:
The Government of India created the Savings Bank Control Organisation and Savings Bank Check Organisation SBCO ICO
Amongst those who were invited to opt for service in the said organisation were UDCs in the Audit Offices LDCs who had qualified for promotion to the UDC cadre in the Audit Offices employees under the Post Master General and those from amongst the Time Scale Clerks in the P  T Accounts Organisation
By a letter dated May 15 1964 the P  T Board informed all the Heads of the Circles that the sanction of the President of India was obtained to the conversion of 10 posts in the cadre of UDCs in the SBCO ICO into Selection Grade UDCs
But by his letter dated May 29 1965 addressed to all Heads of P  T Circles the Director General Post  Telegraphs modified the policy of reservation of 10 of the post in the cadre of UDCs in the Selection Grade by directing that the total number of Selection Grade Posts available for the UDCs who came from the Audit offices should be 10 of the total number Audit officer UDCs working in any particular circle of the Organisation
On January 22 1968 the Indian Posts  Telegraphs Clerks in Savings Bank Control and Internal Check Organisation Recruitment Rules 1969 were framed regulating the recruitment to the cadre of UDCs and other posts in the SBCO ICO
Col 10 of Item 3 of the Schedule to the Rules provides that the appointment to the Selection Grade will be made from amongst UDCs with 10 years of service in that grade in case of Audit Office Staff or with five years  service in that grade in case of other UDCs
Later the Supervisory Cadre in the SBCO ICO was recognised
Creating a cadre of Head Clerks in place of the Selection Grade posts and fixing the number of posts in the said cadre at 20 of the posts of UDCs
By letter dated May 16 1965 the Director General however clarified the position by saying that under the new scheme the audit office UDCs will get the post of Head Clerks to the extent of 20 of their strength instead of 10 as at present
The remaining posts of Head Clerks will go to the non audit UDCs
972 The two petitioners who belonged to the P  T Audit Offices and had qualified the departmental examination for promotion as UDCs joined the SBCO ICO as UDCs
They challenged the classification of UDCs for the purposes of promotion to the Selection GradeHead Clerks cadre on the basis of the sources from which they were drawn and the limiting of the promotional posts available to them to 10 in the case of Selection Grade post and 20 in the case of Head Clerk posts thereby resulting in promotion of their Juniors who had joined the organisation from the P  T Offices as discriminatory arbitrary and unreasonable
According to them the only criterion for promotion from amongst the UDCs in the SBCO ICO could be the length of service in the cadre of UDCs subject to fitness
The provision in Column 10 of Item 3 of the Schedule to the Recruitment Rules of 1969 was also challenged
The respondents argued that persons drawn from different sources were not integrated into a common service and therefore different rules of promotion could be applied to the two classes and that the directive of the Director General was aimed at further and better implementation of the Recruitment Rules
Partly allowing the petition
 HELD 1
The Directions issued by Respondent 2 by his letters dated May 16 1975 and May 29 1965 that UDCs drawn from the Audit offices will be eligible for promotion to the Selection Grade on the basis of 10 of the posts or to the Head Clerks cadre on the basis of 20 of the posts held by them in SBCO ICO are quashed
979 E F The petitioners and the other UDCs will be entitled equality to promotional opportunities
They and others similarly situated as them shall be promoted to the Selection GradeHead Clerks Cadre with effect from the dates on which they were due for promotion by applying the test of seniority cum fitness
979 F G 2
The policy adopted by respondent 2 is discriminatory and unreasonable
Apart from the injustice in specific cases where UDCs drawn from the Audit Offices are attached to comparatively smaller circles the classification made for the purpose of determining the promotional opportunities seems unreasonable and arbitrary
Since under the impugned directions the number of Selection GradeHead Clerks has to be 10 of the number of UDCs drawn from the Audit Offices no promotional opportunities at all would be available to them in certain circles in which less than 10 UDCs drawn from the Audit Offices are working
These persons for a purely fortuitous reason
will be denied for ever all promotional opportunities
That seems wholly indefensible
976G 977B F 3
The duties functions and responsibilities of all the UDCs being identical there is no reason why different tests should be prescribed for determining their respective promotional opportunities and that too solely in reference to the source from which they are drawn
The test of educational qualifications can conceivably be an intelligible differentia bearing nexus with the object of ensuring greater efficiency in public services
But once a cadre is formed by recruiting persons drawn from different departments of the Government there would normally be no justification for discriminating between them by subjecting one class to more onerous terms in the matter of promotional chances
The impugned directives are therefore unconstitutional
977G H 978A B 973 Balakrishnan vs Comptroller  Auditor General of India 1976 Kerala Law Times 401  C K Krishnamurthy vs Director General P  T  affirmed
V Subramanyam vs The Director General of Posts and Telegraphs New Delhi WP 393575 decided on 18th November 1978  V section Rajagopalan vs Post Master General WP 379675 decided on 24th November 1976 reversed
4No one can issue a direction which in substance and effect amounts to an amendment of the Rules made by the President under Article 309
The Recruitment Rules of 1969 do not provide for the kind of classification which is made by the Director General by his letters to the Heads of respective Circles of the new organisation
They only provide for classification on the basis of length of service in the new organisation
Any directive which goes beyond it and superimposes a new criterion on the rules will be bad as lacking in jurisdiction
978B E 5
The distinction made between the two classes of UDCs in the context of the length of their service for the purposes of promotion is not arbitrary or unreasonable
The staff of the Audit Offices which was engaged in the Savings Bank s work might well have faced retrenchment
Instead of subjecting them to that hardship they were given the option of joining the new organisation
Experience wise also there would appear to be fair justification for requiring them to put in longer service in the new organisation before they are eligible for promotion to the higher grade
The provision in Col10 of Item 3 of Schedule to the Recruitment Rules 1969 is therefore upheld
979C E